Question 3

1. (a) Describe the FOUR (4) steps in creating a control process that measures and

   evaluates project performance.

   (8 marks)

2. (b) Define Schedule Variance (SV) and explain why this is still useful even though Schedule Variance is in dollars and does not directly represent time.

   (5 marks)

3. (c) Read the scenario below and answer the questions that follow.

   You are managing a project with a duration of 8 months and a budget of $200,000. Four months have passed and you are due to have completed 50% of work.

   1. (i) If you have only completed $80,000 of work, determine the Earned Value (EV), the Planned Value (PV) and Schedule Variance. Comment on the status of your project.

      (8 marks)

   2. (ii) If your actual cost is $50,000, calculate your cost variance. Comment on the budget status of your project.

      (2 marks)

   3. (iii) Apply the information from 3(c)(i) and (ii), to draw a Cost and Schedule Variance graph. Label all axes and illustrate PV, EV, AC, SV and CV.

      (7 marks)