RUNNING HEAD: CHAPTER 13 EXERCISES

WBS 8.4 Chapter 13 Exercises

Benjamin Srock

Fundamentals of Project Management

PMGT-501

Robert W. Erickson, Ph.D.

July 25, 2016

RUNNING HEAD: CHAPTER 13 EXERCISES

Benjamin Srock
PMGT 501
Chapter 13: Exercises 4 and 6

4. Given the following project network, baseline, and status information, develop status
reports for periods 2, 4, 6, 8, and complete the performance indexes table. Calculate the EACf
and the VACf . Based on your data, what is your assessment of the current status of the project?
At completion?

Budget
ID 1 2 3 4 5 6 7 8 9 10 11 12
$000
A 40 10 10 10 10
B 32 8 4 8 4 8
C 48 12 12 12 12
D 18 6 2 2 2 6
E 28 8 8 12
F 40 20 20
Total 206 18 14 18 14 20 26 22 26 2 6 20 20
Cumulative 18 32 50 64 85 110 132 158 160 166 186 206
RUNNING HEAD: CHAPTER 13 EXERCISES

Status Report Ending Period 2 ($000)

Task % Complete EV AC PV CV SV
A 75% 30 25 20 5 10
B 50% 16 12 12 4 4
Cumulative Totals 46 37 32 9 14

Status Report Ending Period 4 ($000)

Task % Complete EV AC PV CV SV
A 100% 40 35 40 5 0
B 100% 32 24 24 8 8
Cumulative Totals 72 59 64 13 8

Status Report Ending Period 6 ($000)

Task % Complete EV AC PV CV SV
A 100% 40 35 40 5 0
B 100% 32 24 32 8 0
C 75% 36 24 24 12 12
D 0% 0 0 6 0 -6
E 50% 14 10 8 4 6
Cumulative Totals 122 93 110 29 12

Status Report Ending Period 8 ($000)

Task % Complete EV AC PV CV SV
A 100% 40 35 40 5 0
B 100% 32 24 32 8 0
C 100% 48 32 48 16 0
D 33% 6 20 10 -14 -4
E 100% 28 20 28 8 0
Cumulative Totals 154 131 158 23 -4

Performance Indexes Summary

Period EV AC PV SPI CPI PCI-B
2 46 37 32 1.44 1.24 22%
4 72 59 64 1.13 1.22 35%
6 122 93 110 1.11 1.31 59%
8 154 131 158 0.97 1.18 75%

(BAC − EV)
EAC𝑓 = + AC
EV
(AC)

(206 − 154)
EAC𝑓 = + 131
(154/131)

(52)
EAC𝑓 = + 131 = (44) + 131 = 𝟏𝟕𝟓
(1.18)
RUNNING HEAD: CHAPTER 13 EXERCISES

VAC𝑓 = (BAC − EAC𝑓 ) = (206 − 175) = 𝟑𝟏

Based on your data, what is your assessment of the current status of the project? At completion?
At the end of period 8, the project is 74.75% complete (EV/BAC) and $23,000 under budget. At
this point, the project should have amassed an actual cost of $154,000, when it actually cost
$131,000. This savings is a good sign as it indicates we are getting $1.18 worth of work for
every $1.00 we spend. Based on this current rate of operation, the project should come in
$31,000 under budget. The downside is that while there is a substantial savings, the project does
appear to be behind schedule.

6. The following labor hours’ data have been collected for a nanotechnology project for
periods 1 through 6. Compute the SV, CV, SPI, and CPI for each period. Plot the EV and the
AC on the summary graph provided (or a similar one). Plot the SPI, CPI, and PCIB on the index
graph provided (or a similar one). What is your assessment of the project at the end of period 6?

Schedule Information Baseline budget needs - labor hours (00)

ACT/ Total
DUR ES LF SL 1 2 3 4 5 6 7 8 9 10 11 12 13 14
WP PV
1 2 0 2 0 20 10 10
2 2 2 7 3 24 16 8
3 6 2 11 3 30 5 5 10 3 2 5
4 5 2 7 0 25 10 10 2 2 1
5 4 4 11 3 16 4 4 4 4
6 4 7 11 0 20 5 5 6 4
7 2 11 13 0 10 5 5
Total PV by period 10 10 31 23 16 9 7 14 5 6 4 5 5
Cumulative PV by period 10 20 51 74 90 99 106 120 125 131 135 140 145
RUNNING HEAD: CHAPTER 13 EXERCISES

Status Report Ending Period 1 ($000)

Task % Complete EV AC PV CV SV
1 50% 1000 500 1000 500 0
Cumulative Totals 1000 500 1000 500 0

Status Report Ending Period 2 ($000)

Task % Complete EV AC PV CV SV
1 100% 2000 1500 2000 500 0
Cumulative Totals 2000 1500 2000 500 0

Status Report Ending Period 3 ($000)

Task % Complete EV AC PV CV SV
1 100% 2000 1500 2000 500 0
2 0% 0 0 1600 0 -1600
3 10% 300 200 500 100 -200
4 20% 500 500 1000 0 -500
Cumulative Totals 2800 2200 5100 600 -2300

Status Report Ending Period 4 ($000)

Task % Complete EV AC PV CV SV
1 100% 2000 1500 2000 500 0
2 50% 1200 1000 2400 200 -1200
3 30% 900 800 1000 100 -100
4 40% 1000 1500 2000 -500 -1000
Cumulative Totals 5100 4800 7400 300 -2300

Status Report Ending Period 5 ($000)

Task % Complete EV AC PV CV SV
1 100% 2000 1500 2000 500 0
2 100% 2400 2000 2400 400 0
3 50% 1500 800 2000 700 -500
4 60% 1500 1500 2200 0 -700
5 25% 400 400 400 0 0
Cumulative Totals 7400 6200 9000 1600 -1200

Status Report Ending Period 6 ($000)

Task % Complete EV AC PV CV SV
1 100% 2000 1500 2000 500 0
2 100% 2400 2000 2400 400 0
3 80% 2400 2100 2300 300 100
4 80% 2000 1800 2400 200 -400
5 50% 800 600 800 200 0
Cumulative Totals 8800 8000 9900 1600 -300

Period SPI CPI PCI-B

1 1.00 2.00 7% SPI = EV/PV
2 1.00 1.33 14% CPI = EV/AC
3 0.55 1.27 19% PCIB = EV/BAC
4 0.69 1.06 35%
5 0.82 1.19 51%
6 0.89 1.10 61%
RUNNING HEAD: CHAPTER 13 EXERCISES

What is your assessment of the project at the end of period 6? It is important to first note the
critical path 1, 4, 6, & 7. At the completion of the 6th period, activity 4 should be completed but
is only 80% complete. Since the actual cost of activity 1 resulted in a savings of $500, perhaps
this savings can be utilized to crash this activity to get the project back on schedule. If nothing is
done, the project will not complete on time.
RUNNING HEAD: CHAPTER 13 EXERCISES