Chapter 7, Problem 6QQ

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 the budget at completion. PV = $23,000 EV = $20,000 AC = $25,000 BAC = $120,000 What is the cost variance, schedule variance, cost performance index (CPI), and scheduleperformance index (SPI) for the project? How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned? Use the schedule performance index (SPI) to estimate how long it will take to finish this project. Sketch the earned value chart based for this project, using Figure 7-5 as a guide.

Suppose that Ms. Hamir stacked the deck with her design proposal. In other words, she purposefully under-designed the less expensive solution and produced a cost estimate for the higher-end version that she knew would come in over budget if it were chosen. She also knew that the customer had a tendency to hire design consultants to do build projects. Discuss with your classmates if you think it is unethical to produce a consulting report that steers a client toward a specific outcome. Suppose instead that Ms. Hamir had prepared a report that truthfully recommended the more expensive option as the better choice for the customer in her best professional opinion. Suppose that the customer decided on the less expensive option solely to reduce costs without regard to the project's security outcomes. Would Ms. Hamir be ethically sound to urge reconsideration of such a decision? Why or why not, discuss this further with your classmates.

Given the following information for a one-year IT project of Gulf Hospital System, answer the following questions. Recall that PV is the planned value, EV is the earned value, and AC is the actual cost. PV = $ 32,000 EV = $ 25,000 AC = $ 36,000   Calculate the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the given project. Justify the results.