Exercise The following project is planned to finish at 18 weeks. Based upon information below as per week 13, how much will the project cost and time at completion? Comment on the current progress of project. Task

Exercise 1.
The following project is planned to finish at 18 weeks. Based upon information below as per week 13, how much will the project cost and time at completion? Comment on the current progress of project.

Task	BAC	WS%	WP%	AV	EV = BAC*WP%	BCWS(PV) =BAC*WS%
A	31,900	100	100	30,550	31900*100% =31900	31900*100%= 31900
B	138,000	100	100	115,000	138000*100% = 138 00	138000*100% = 138 00
C	36,000	50	30	6,000	36000*30% = 10 800	36000*50% = 18 000
D	20,300	10	40	2000	20300*40%=8120	20300*10%=2030
E	21,270	100	100	20,600	21270*100% =21270	21270*100% =21270
F	100,800	50	70	75,000	100800*70%=70560	100800*50%=50400
G	4,200	0	0	0	0	0
H	6,600	0	0	0	0	0
TOTAL	359 070 $			30550 +115000+6000+ 2000+20600+ 75000= AV = 249 150$	=31900+138000+10800 +8120+21270+70560= EV = 280 650 $	=31900+138000+18000+ +2030+21270+50400 = PV=261 600$

Solution:
Planned duration= 18 weeks
Actual time= 13 week
BCWP (EV) = BAC*WP%
BCWS(PV) =BAC *WS%

Cost variance = EV-AV = 280 650 -249 150 = 31500$ >0

Schedule variance = EV-PV = 280650-261600=19050$>0

Cost index = EV/AV = 280650/249150 = 1.14

Schedule index =EV/PV = 280650/261600= 1.07

In order to define Cost estimation at completion (CEAC), we can have the following options:

CEAC (original) = BAC -CV = 359 070 -31500 = 327 570 $

CEAC(revised) = BAC/CI = 359070/1.14 = 314 974 $


TEAC(revised) = Planned duration (PD)/ SI($) = 18/1.07 = 16.82 weeks

As a summary, project is ahead in schedule and project budget is expected to be lower than planned budget. So that, we have savings in the cost and time. The project is in a good progress

Exercise 2.
A project, with expected total duration of 4 months, has been developing according to the Earned Value chart below:

	July	Aug	Sep	Oct
BCWS	192000	192000	192000	60000
ACWP	192000	216500	170000
BCWP	173000	190000	185000

What is the project performance at the current time (September)? Please also forecast both cost CEAC and the actual completion date TEAC.

Solution:

	BCWS= PV	ACWP=AV	BCWP=EV	CV($)	CI	SV(t)	SI(t)
July	192000	192000	173000
August	192000	216500	190000
September	192000	170000	185000
October	60000
Total__BAC=636000__578500'>Total

Current progress of the project can be defined through cost variance, schedule variance, cost index and schedule index. In order to calculate the CV, SV, CI, SI we have to find cumulative values of Earned, Planned and Actual values for each month and until month 4.

BAC= Sum of all Planned Values
CV = EV-AV CI =EV/AV
SV=EV-PV SI($) = EV/PV
Below in the table, we defined the CV, SV, CI and SI($)

	BCWS= PV	ACWP=AV	BCWP=EV	CV($)	CI	SV($)	SI($)
July	192000	192000	173000	-19000	0.90	-19000	0.90
August	192000	216500	190000	-26500	0.88	-2000	0.99
September	192000	170000	185000	15000	1.09	-7000	0.96
October	60000			0	#DIV/0!	-60000	0.00
Total	BAC=636000	578500	548000	-30500	0.95	-88000	0.86

Now, we can compute the CEAC by applying the following options:

1. 
   CEAC(original) = BAC -CV = 636 000 –(-30500) = 666 500
   
2. 
   CEAC(revised) = BAC/CI = 636 000 /0.95 = 669 474 $
   
3. 
   CEAC(critical = pessimistic) = =
   

To calculate TEAC, we can do two methods: one is by EV approach, another one is Earned Schedule approach.

TEAC(revised by EV) =

TEAC(original by ES) = Actual time – SV(t) = 3 –(-0.146) = 3.146 months

TEAC(revised by ES) =

SO far we do not know what is SV(t) and SI(t), to calculate them, we need to create another table with cumulative values of EV, PV and AV for each month. Table below gives us the overall cumulative values for EV, PV and AV.

Cumulative PV (July) = PV(0) + PV(July)= 0+192000
Cumulative PV (August) = PV(0) + PV(July) +PV(August)= 0+192000 +192 000= 384000
Cumulative PV (September) = PV(0) + PV(July) +PV(August) + PV(September) = 0+192000 +192 000 +192000= 576000
Cumulative EV (July) = EV(0) + EV(July)= 0+173000
Cumulative EV (August) = EV(0) + EV(July) +EV(August)= 0+173000 +190 000= 363000
Cumulative EV (September) = EV(0) + EV(July) +EV(August) + EV(September) = 0+173000 +190 000+185000= 548000

Actual time	Months	BCWS= PV	ACWP=AV	BCWP=EV	ES	SV(t)=ES-AT	SI(t)=ES/AT
0		0	0	0
1	July	192000	192000	173000	0.901	-0.099	0.901
2	August	384000	408500	363000	1.891	-0.109	0.945
3	September	576000	578500	548000	2.854	-0.146	0.951
4	October	636000
	Total	636000	578500	548000

= > ES(SEPTEMBER) =

Where c is the time increment that EV overcomes the planned value. In this case, c= 2

EV = 548000, PV(C) = 384 000, PV(c+1) = 576000


SV(t) = Earned Schedule(ES) – Actual Time(AT)
SI(t) = ES/AT

Exercise 3.
Based on following project data obtained at the end of the fifth month into the project execution, you are requested to determine actual performance and compute suitable project cost and duration estimates at completion.

	Task name	Predecessor	Duration [months]	BAC [k$]	ACWP [k$]	WP [%]
A	Design		2	100	100	100
B	Building erection	A	4	200	100	85
C	Installation of services	B	2	300	0	0
D	Production equipment installation	A	6	600	232	35

Solution:

Total project duration = 8 months Actual time = 5 months

	Task name	Predecessor	Duration [months]	BAC [k$]	ACWP [k$]	WP	BCWP	WS%	BCWS
						[%]	EV [k$]	% are based on the gant chart	PV[k$]
A	Design		2	100	100	100%	100	100%	100
B	Building erection	A	4	200	100	85%	170	75%	150
C	Installation of services	B	2	300	0	0%	0	0%	0
D	Production equipment installation	A	6	600	232	35%	210	50%	300
TOTAL				1200	432		480		550

CV = EV-AV= 480-432 = 48 k$ under budget even savings

SV = EV-PV=480-550= -70k$ behind the schedule (delay)


CEAC(revised) = BAC/CI = (BAC*AV)/EV = 1080 k$
TEAC(revised) = PD/SI($) = (PD*PV)/EV = 9.17 months