Project Management

Running head: PROJECT MANAGEMENT 1
Project Management
Student’s Name
Institutional Affiliation

PROJECT MANAGEMENT 2
Based on this information, determine the following:
1. Cumulative EV
Earned value = actual completion (%)* BAC = 19% * 387000
= $73,530
2. Schedule Variance (SV)
SV = EV – PV
EV = $73,530
PV = $68345
SV = $73,530 - $68,345 = $5,185
3. Schedule Performance index (SPI)
SPI = EV/PV = $73,530/$68,345 = 1.0757
4. Cost Variance
CV = EV – AC = $73,530 - $78,379 = -$4849
5. Cost Performance Index (CPI)
CPI = EV/AC = $73,530/$78,379 = 0.9381
6. EAC (bottom-up)
Estimation at Completion (EAC) = BAC/CPI = 387,000/0.9381
= $412535.977
7. VAC (bottom-up)
VAC = Total Budget cost – Estimate at Completion
VAC = BAC – EAC = 387,000 - 412535.977
= -$25535.977
8. TCPI
TCPI = (BAC-EV) / (BAC-AC)
= (387000-$73,530) / (387000-78,379)
= 313470 / 308621

PROJECT MANAGEMENT 3
= 1.0157
Based on your calculations in question 1 above, respond to the following:
1. What is the status of the accomplishment performance through the current
reporting period? Why?
The cost variance of the project is negative, which means that the project is over-
budget.
2. What is the status of project cost performance through the current reporting
period? Why?
Since the project has a positive Schedule Variance, it means the project is ahead of
schedule.
3. Is the project projected to complete over or under-budget? Why?
Based on the project’s positive Schedule Variance it is projected that it will be
completed under-budget because of the positive Schedule Variance.
4. Interpret the TCPI metric.
The TCPI metric of the project means that the project cannot continue with the current
Cost Performance Index of 0.9381.
Based on your calculations in question 1 above, an inexperienced and arrogant project
analyst from the project management office has computed an additional metric: Cost
Schedule Index, which equals SPI*CPI. He wants you to report this metric to the
customer, instead of SPI and CPI separately. What should you do and why?
SPI*CPI is equal to Critical Ratio (CR) of the project. CR displays the entire project
performance in terms of both schedule and budget. If the project has a CR less than one it
means the project suffered from being behind schedule or over budget or even both. A CR
that is precisely one means the project realized the budget and timeline as made by the project