Given the following information for a one-year project, answer the following questions. Recall that PV is the planned value, EV is the earned value, AC is the actual cost, and BAC is budget at completion. PV = $22,000 EV = $20,000 AC = $25,000 BAC = $120,000 a. What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project b. How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? c. Use the CPI to calculate at estimate at completion (EAC) for this project. Is the project performing better or worse than planned? d. Use the SPI to estimate how long it will take to finish this project. e. Sketch the earned value chart for this project.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Given the following information for a one-year project, answer the following questions. Recall that PV
is the planned value, EV is the earned value, AC is the actual cost, and BAC is budget at completion.
PV = $22,000
EV = $20,000
AC = $25,000
BAC = $120,000
a. What is the cost variance,
index (SPI) for the project
b. How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over
budget?
c. Use the CPI to calculate at estimate at completion (EAC) for this project. Is the project performing
better or worse than planned?
d. Use the SPI to estimate how long it will take to finish this project.
e. Sketch the earned value chart for this project.
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