You are 4 months into a 6 month project. The project is linear,which means that the progress and spending occurs at a constantrate. Our crack project team of highly skilled associates hasworked diligently and put in extra hours to keep the project going.Our accounting department has provided the following data at theend of month 4:
Actual cost to date = $88,800
Planned expenditures to date = $101,000
The CFO is excited and has sent you an email congratulating you forbeing 12.07% under budget. However, is it really time to hold ateam celebration? That would be fun but your project managermentality kicks in. Those numbers look good but how are weââ¬Ëreallyââ¬â¢ doing? To understand the true project performance, weneed to apply earned value techniques.
The missing piece we need is Earned Value (i.e. what we haveactually accomplished so far). You meet with your team and findthat only 6 of the 7 tasks scheduled to be complete by the end ofmonth 4 have actually been completed. Task 7 isnââ¬â¢t even started!This information gives you the final data you need to applyââ¬ËEarned Valueââ¬â¢ and develop an objective analysis.
1. What are the PV, EV, and AC for the project at the end of month4?
2. What are the SV, CV, SPI, and CPI for the project?
3. Assess the project performance to date? Do you get to have thecelebration?
You are 4 months into a 6 month project. The project is linear,which means that the progress and spending occurs at a constantrate. Our crack project team of highly skilled associates hasworked diligently and put in extra hours to keep the project going.Our accounting department has provided the following data at theend of month 4:
Actual cost to date = $88,800
Planned expenditures to date = $101,000
The CFO is excited and has sent you an email congratulating you forbeing 12.07% under budget. However, is it really time to hold ateam celebration? That would be fun but your project managermentality kicks in. Those numbers look good but how are weââ¬Ëreallyââ¬â¢ doing? To understand the true project performance, weneed to apply earned value techniques.
The missing piece we need is Earned Value (i.e. what we haveactually accomplished so far). You meet with your team and findthat only 6 of the 7 tasks scheduled to be complete by the end ofmonth 4 have actually been completed. Task 7 isnââ¬â¢t even started!This information gives you the final data you need to applyââ¬ËEarned Valueââ¬â¢ and develop an objective analysis.
1. What are the PV, EV, and AC for the project at the end of month4?
2. What are the SV, CV, SPI, and CPI for the project?
3. Assess the project performance to date? Do you get to have thecelebration?
