Question $3$

Some $of$ the work that Terminals $Ltdis$ doing $is$ being paid $onare-$measurement basis. You are obviously concerned about this $as$ you are directly liable for the cost and time $of$ the work. You have set $up,$ therefore, a simple earned value analysis $(EVA)$ system $to$ monitor how effectively the various teams are working $on$ the $re-$measurement packages. Table $2$ below shows the performance $of3$ teams $of$ electrical equipment installers over $a6-$week period $on$ one particular package. The teams are installing wiring $at$ a target rate $of500M$ per team per week $atan$ agreed $re-$measurement rate $of\frac{10}{M}.$ The work package $is$ programmed $to$ last $10$ weeks.

Table $2$:

Actual progress and costs incurred

Cumulative cable installed $(m)$

Week

Team

Cumulative actual costs incurred $(1)$

$500$

$5000$

$2$

$550$

$5\mathrm{.}500$

$E$

$480$

$5000$

$2$

$1000$

$10000$

$2$

$1100$

$11000$

$3$

$900$

$10000$

$3$

$1500$

$15\mathrm{.}000$

$2$

$1600$

$16000$

$3$

$1400$

$15000$

$4$

$+$

$2000$

$20\mathrm{.}000$

$2$

$2200$

$22$:$000$

$3$

$1800$

$22\mathrm{.}000$

$5$

$2500$

$25\mathrm{.}000$

$2$

$2600$

$26\mathrm{.}000$

$3$

$2300$

$28000$

$6$

$3000$

$30000$

$2$

$3300$

$33000$

$3$

$2800$

$35\mathrm{.}000$

$a.$ Comment $on$ the performance $of$ each team and $on$ the performance $of$ the work package $as$ a whole $upto$ week $6.(10$ marks$)$

$b.$ Calculate the estimate $at$ completion $(EAC)$ for Team $In$ week $3,$ for Team $3in$ weed $4.$ and for the work package $as$ a whole $in$ wock $6(5$ marks$)$

$c.$ Explain how EVA forms part $ofan$ overall project variance analysis reporting $(PVAR)$ system and discuss how EVA offers advantages over traditional $costicontrol$ systems $(10$ marks$)$

$(Total25$ marks$)$