Question six

a) Define a project budget

b) Differentiate between planned value and actual value c) A 12-month project is in its 6th month (50% of the time has been used), but has accomplished only 40% of its activities and has spent 60% of its financial resources according to the latest financial report. The total budget for the projects is $2,400,000.

Calculate

i) Planned value

ii) Actual cost

iii) Earned value

iv) Cost variance

v) Schedule variance

vi) Cost performance index

vii)Schedule performance index

How can a project manager know if his project is on track or not?