Read Chapter 13.

Chapter Objectives

To understand how organizations track project performance

• To understand and appreciate the significance of earned value
• To be able to calculate and interpret different project performance indexes
• To be able to develop a project reporting system that will ensure project control and progress
• To demonstrate how a project rollup can pinpoint problems in two dimensions.

Read case:Tree Trimming Project. Carefully read the information provided.

Will agrees to pay $30,000 for shearing 24,000 trees. What is his cost per tree?

The calculation of the partial payment is based upon 6,000 trees out of a total of 24,000 trees in the field (6/24 = 25%). The 25% is only used to calculate the partial payment of $7,500. It is not used in any other calculations.

An estimate of percent complete is needed in terms of trees OR money.Refer back to Chapter 8, approximately pages 273-274 "Why A Time-Phased Budget Baseline is Needed". In this case, we use trees instead of money.

Will budgeted 1000 trees per 5 days. However, 6,000 trees were sheared within 5 days.

What is Will's Percent Complete (PC)at the end of 5 days (not the whole project time): PC=? To calculate, make a table of the Tree Baseline: Planned Value (PV)

Columns = # of days, so you need 5 columns. 2 rows. Top row is number of tress planned to be cut each day. 2nd row is the Cumulative value of the number of tress planned to be cut each day.

Your chart needs to be for 5 days, at 1,000 trees per day, with a cumulative total of 5,000 trees.

PC complete s/b 6000 trees/5 days = 1.20%.

So, 120% or 1.20% is your EV. YourAC (from AV)= 5000 trees.

Then proceed to complete the rest of the formulas.

What is Will's Cost (tree) Variance: CV=? CV=EV - AC

EV= % complete x planned value

CV = EV - Actual $

What isWill's Schedule (tree) Variance: SV=EV-PV

EV = Percent of Expected x Expected

SV = Actual - Expected = The number he is ahead or behind

Showing your calculations may earn you more points than just the answer.

Your assignment will be submitted using MS Word or MS Excel, version 2003 or higher,