Suppose the project has been going on for five weeks. The project team meets to evaluate the progress

of the project at the end of week 5. The progress report shows the project has consumed a total of

$66,073. Furthermore, activity A is fully completed, activity B is 66% complete, and activity C is

75% complete. Activities D and E have not started.

What is the cumulative earned value at the end of week 5 (in dollars)?

Question 6 10 pts Review the budgeted cost of project GA504 (Example 1). Suppose the project has been going on for five weeks. The project team meets to evaluate the progress of the project at the end of week 5. The progress report shows the project has consumed a total of $66,073. Furthermore, activity A is fully completed, activity B is 66% complete, and activity Cis 75% complete. Activities D and E have not started. What is the cumulative earned value at the end of week 5 (in dollars)? Use at least 4 decimals. Previous Next Not saved Submit Evaluating Project Performance at the end of Week 5 Suppose project GAS04 has been progressing on for 5 weeks and the project team meets to evaluate the progress of the project. The project progress report shows the following summary: [1] The progress has spent a total of $50,000 at the end of weeks [2] Activity A was fully completed (3) Activity B is 40% completed, [4] Activity Cis 20% completed. (5) Activity D has not started. 16 Activity E has not started The project team would like to know if the project is within schedule and within budget. Solution: Following the concept of earned value management (EVM), the project team can calculate the value of the cost performance index (CPI) and the value of the schedule variance (CV) However, the project must first calculate the value of the cumulative earned value (CEV). Following the progress report, the CEV can be calculated as follows: Cumulative Earned Activity Percent Complete ($1000) Value (51000) Cumulative TBC A B c D E 100 40 20 0 0 30 16 52 18 48 164 30 6.4 104 0 O 46.8 The project earned value, CEV $46,800 The project cumulative actual cost (CAC) is 560,000 Then, the project CPI = CEV/CAC 46,800/60,000 0.78 Furthermore, the project CV - CEV-CAC = 46800 - 60000 = $13,200 Values of CPI that are less than 1.0 signifies the project is overbudget. Roughly speaking the project has earned only 78 cents for every dollar at spent of CPI is less than 10 then CV has a negative value Roughly speaking the project has earned only $46,800 but it has spent 560,000 Thus, the project is not doing well in terms of cost at the end of week 5 Correctives action should be implemented. In order to evaluate the project performance with respect to schedule, the project team should calculate the value of the schedule performance index (SPI) and the value of the schedule variance (SV) MacBook The project plan shows that the cumulative budgeted (CBC) cost at the week 5 should be $72,000. Then, the project SP] = CEV/CBC = 46,800/72,000 = 0.65 and the schedule variance SV = CEV - CBC = 46,800 - 72,000 - - $25,200. A value of SPI that is is less than 1.0 indicates the project is behind schedule. if SPI is less than 1.0 then SV has a negative value. A negative value of SV also indicates the project is behind schedule. Thus, the project is behind schedule at the end of week 5. Estimating the Project Cost at Completion at the end of Weeks What is the impact of project performance at the end of week 5 on cost? According to the project plan, the project total budgeted cost is $164,000. However, at the end of week 5, CPI = 0.78 and CV = -513,200. For the moment, assume that the project team will put actions to improve the project performance such that CPL 1.0 from week 6 until the project completion. If it is the case, then the project forecasted cost at completion (FCAC) can be estimated as follows: FCAC = Original TBC-CV = 164,000 - (-13,200) = $177,200 On the other hand, if no improvement can be done then the project would continue at CPI = 0.78. In this situation, the estimated project cost at completion will be as follows: FCAC = Original TBC/CPI = 164,000/0.78 = $210,256.41 Thus, based on the project performance at the end of week 5, the project cost at completion is estimated to be between $177,200 and $210,256.41 Estimating the Project Completion Time at the end of Week 5 Following the project plan, the project completion time should be 10 weeks. However, SPI=0.6389 at the end of week 5. The actual project completion time can be = (10 weeks)/0,65 = 15.3846 weeks Thus, if no improvement can be done, the project would be 5 to 6 weeks late MacBook DD