Lesson 8 Questions (Please show all equations and all your work related to all calculations.)
Name:
1. Refer to Table Q1 below. What is the cumulative budgeted cost (CBC) at the end of Week 6? (Refer to your Gido et al. book for an example, starting on page 249). For your convenience you can type into the table directly for calculating the cumulative totals by week, but you must include your final answer to the question in the space provided below (show work).
Table Q1: Budgeted Cost by Period for ENGR Inc. Project. Table includes total budgeted cost (TBC) and budgeted cost by week for each task as well as the total across all tasks for the total project and by week.
Week
TBC
1
2
3
4
5
6
7
8
9
10
Task 1
31
10
14
7
Task 2
78
12
10
12
21
13
10
Task 3
46
5
6
29
6
Task 4
37
8
5
24
Total
192
10
26
17
12
26
19
39
14
5
24
Cumulative
Amounts are in thousands of dollars.
Cumulative budgeted cost (CBC) at Week 6 is:
2. Answer the questions below in reference to the information in Table Q2. Table Q2 includes the actual costs associated with the previous question and the ENGR Inc. Project. For your convenience you can type into the table directly for calculating the cumulative totals by week, but you must include your answers to the questions in the space provided below for Parts a–c:
Table Q2: Actual Cost by Period (week) for the ENGR Inc. Project.
Week
1
2
3
4
5
6
Task 1
12
17
7
Task 2
11
12
11
27
12
Task 3
6
7
Task 4
Total
12
28
19
11
33
19
Cumulative
Amounts are in thousands of dollars.
a. What is the cumulative actual cost (CAC) at the end of Week 6? (show work)
CAC at Week 6 is:
. Determine whether there is a cost ove
un or unde
un and report the amount:
i. Cost ove
un or unde
un:
ii. Dollar amount:
c. What is causing the ove
un or unde
un (identify the specific tasks and dollar amounts)?
Tasks and dollar amounts:
3. Table Q3 below includes the cumulative percentages of work completed by week, up to the end of Week 6. Answer the questions below.
Table Q3: Cumulative Percent Complete by Period (week) for the ENGR Inc. Project.
Week
1
2
3
4
5
6
Task 1
34
75
100
Task 2
11
22
38
51
66
Task 3
11
21
Task 4
Amounts are cumulative % complete.
a. What is the cumulative earned value (CEV) of the project at the end of Week 6? (show equation and work)
CEV =
. Is it good? Explain why:
4. For the ENGR Inc. Project described above, what is the CPI at the end of Week 6? (show equation and work)
CPI =
5. For the ENGR Inc. Project described above, what is the cost variance (CV) at the end of Week 6? (show equation and work)
CV =
6. For the ENGR Inc. Project described above, calculate the FCAC using the first two methods described in the chapter reading for this lesson, and discuss the difference between the two methods. In addition, describe a third FCAC method you could use. (show equations and work)
a. FCAC Method 1:
. FCAC Method 2:
c. Discuss the difference between Methods 1 and 2:
d. FCAC Method 3 description:
7. What is the schedule variance (SV) at the end of Week 6? (See lesson commentary; the answer is in dollars.)
SV =
8. What is the schedule performance index (SPI) at the end of Week 6 (see lesson commentary)?
Questions 9 and 10
TCPI and CPI Further Explored (see Canvas page on the Control Costs Process for help if needed)
You own a house-painting company that specializes in exterior paint jobs at super cheap prices, and you hired two college students (Tom and Mike) to each paint the exterior of a small townhouse on two different properties across town from each other. Each worker will be working alone on one of the properties because they do not work well together.
The townhouses are the same size, and you have estimated that it will take each person 2 days (16 hours total each) to paint each townhouse (assume they work 8 hours per day for 2 days). You are paying them $15/hour, and for each 8-hour day that would come out to be $120 per day for 2 days each. To be clear, it should take Tom 2 days to paint Townhouse A for a total of $240, and it should take Mike 2 days to paint Townhouse B for another $240. These are identical townhouses on the opposite side of town.
At the end of Day 1, you stop by to check on their progress. This is what you found:
Townhouse A Status (Tom is the painter on the job):
· After 1 day of work (8 hours), only 1/4 of Townhouse A has been completed.
Townhouse B Status (Mike is the painter on the job):
· After 1 day of work (8 hours), 70% of Townhouse B has been painted.
Using earned value management (EVM) methodologies, calculate the following EVM metrics as of the end of the day on Day 1 (after 8 hours of work) for each townhouse:
9. Painting Townhouse A (with Tom the painter) (show all work):
Reminder of status at end of Day 1 for Townhouse A (Tom is the painter on the job):
· After 1 day of work (8 hours), only 1/4 of Townhouse A has been completed.
For the following questions, in Parts a–j, answer them based on Townhouse A only:
a. What is the value for TBC for Townhouse A? Total budgeted cost (TBC) is what you planned to pay to have Townhouse A fully painted when you started the project.
. What is the PV for Townhouse A at the end of Day 1? Planned value is the value of the work that you had planned to have complete by the end of 1 day; assume that you planned for the painters to work at a steady, consistent pace over the 2 days.
c. What is the CAC for Townhouse A at the end of Day 1? Cumulative actual cost (CAC) is the money spent as of the end of Day 1. (Note: Since only 1 day has gone by, you don’t have any values to accumulate, only the actual cost for Day 1.)
d. What is the CEV for Townhouse A at the end of Day 1? Cumulative earned value (CEV) is the value of the work for what was actually done at the end of Day 1. (Note: Since only 1 day has gone by, we do not have multiple values to accumulate, only the earned value for Day 1.)
e. What is the value of CPI for Townhouse A at the end of Day 1?
f. What does this value tell you about Tom’s performance so far? Is it good or bad? Explain your answer in terms of the specific CPI value.
g. What is the value of TCPI? (Calculate it based on the TBC: Do not use EAC.)
h. What does this value tell you about the performance needed to complete the project? Is it realistic? Explain your answer in terms of the specific TCPI value.
i. What is the EAC based on the performance at the end of Day 1 for Townhouse A? Estimate at completion (EAC) is going to be your new estimate; calculate EAC assuming that future work performance will be the same as past performance: EAC = BAC/CPI. EAC is covered in the Lesson 8 commentary. Note: The PMBOK® Guide uses BAC in the earned value analysis equations, but the Gido et al. book uses total budgeted cost (TBC); BAC = TBC. (BAC=TBC; budget at completion = total budgeted cost).
j. How does this cost compare to the original budgeted cost?
10. Painting Townhouse B (with Mike the painter) (show all work):
Reminder of Townhouse B Status at the end of day:
· After 1 day of work (8 hours), 70% of Townhouse B has been painted.
For the following questions, in Parts k–t, answer them based on Townhouse B only:
k. What is the value for BAC for Townhouse B? Budget at completion (BAC) is what you planned to pay to have Townhouse B fully painted when you started the project.
l. What is the PV for Townhouse B at the end of Day 1? Planned value is the value of the work that you had planned to have complete by the end of 1 day; assume that you planned for the painters to work at a steady, consistent pace over the 2 days.
m. What is the CAC for Townhouse B at the end of Day 1? Cumulative actual cost (CAC) is the money spent as of the end of Day 1. (Note: Since only 1 day has gone by, you don’t have any values to accumulate, only the actual cost for Day 1).
n. What is the CEV for Townhouse B at the end of Day 1? Cumulative earned value (CEV) is the value of the work for what was actually done at the end of Day 1. (Note: Since only 1 day has gone by, we do not have multiple values to accumulate, only the earned value for Day 1).
o. What is the value of CPI for Townhouse B at the end of Day 1?
p. What does this value tell you about Mike’s performance so far? Is it good or bad? Explain your answer in terms of the specific CPI value.
q. What is the value of TCPI? (Calculate it based on the BAC=TBC: Do not use EAC.)
. What does this value tell you about the performance needed to complete the project? Is it realistic? Explain your answer in terms of the specific TCPI value.
s. What is the EAC based on the performance at the end of Day 1 for Townhouse B? Estimate at completion (EAC) is going to be your new estimate; calculate EAC assuming that future work performance will be the same as past performance: EAC = BAC/CPI. EAC is covered in the Lesson 8 commentary. Note: The PMBOK® Guide uses BAC in the earned value analysis equations, but the Gido et al. book uses total budgeted cost (TBC); BAC = TBC. (BAC=TBC; budget at completion = total budgeted cost).
t. How does this cost compare to the original budgeted cost?