Sandy Point is the project manager of a small project that consists of seven tasks. After careful and extensive planning, Sandy and her project staff agreed on a proposed project schedule that is indicated by the following Gantt chart:

As indicated in their original project plan, Sandy and her staff had estimated the following durations and (total) direct costs for each task:

Task Duration(weeks) planned value

A 4 $2000

B 7 $2800

C 3 $1150

D 5 $625

E 5 $1350

F 3 $1050

G 3 $270

This morning (beginning of week 6), Sandy received a progress report; as indicated in the Gantt chart, task C could not be started until this week due to the unexpected delay in completing task A. The report also indicates that task B has been completed two weeks earlier than expected. Information from the progress report is summarized in the following

1. As of today (beginning of week 6), what is the cost variance of the project? What is the schedule variance of the project?

2. Based on information provided to date, what is your assessment of the current status of the project?

3. If you use a fixed 30/70 formula to compute the value of the work completed (BCWP) instead of relying on progress reports to estimate the percent of work completed, what is the value of the cost index for the project at the beginning of week 6? What is the schedule index for the project? Does this change your view of the project progress to date?

Transcribed Image Text:

Today Scheduled critical task A B Scheduled non-critical task Used but not planned D E Planned but not used F G Time 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Today Scheduled critical task A B Scheduled non-critical task Used but not planned D E Planned but not used F G Time 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Answer rating: 100% (QA)

1 In order to calculate cost variance we need to use the formula CV EV AC Here the actual cost AC is ... View the full answer