Resource Planning and Management 1

Resource Planning and Management 1
RESOURCE PLANNING AND MANAGEMENT
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Resource Planning and Management 1
ASSIGNMENT 1
SECTION A
i.
Cost variance can be calculated using the following equation
C.V= E.A – A.C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Where C.A is the cost variance, E.A is the earned amount and A.C is the actual cost.
E.A = $ 40000
A.C = $ 35000
C.V= $ (40000-35000)
C.V= $ 5000
ii.
From Cost Variance = BCWP – ACWP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Schedule Variance = BCWP – BCWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Positive variance = cost overrun or schedule behind
Negative variance = cost underrun or schedule is ahead.
BCWP = $95000

Resource Planning and Management 1
BCWS = $98000
ACWP = $92000
Cost variance = $95000 - $92000
Cost variance = $ 3000
Schedule Variance = $95000 - $98000
Schedule Variance = - $ 3000
Therefore it is behind schedule and over-budget
iii.
An amount reserved for unforeseen works that are within the scope of your project
iv.
CR < 1, imply poor project performance
CR = 1, imply project performance is on target.

Resource Planning and Management 1
CR > 1, implies good project performance
And since 0.79 is less than 1,
Therefore for CR= 0.79, you must report to the top management
v.
To mitigate the effects of certain unplanned events and risks that may be external or not controllable within a
project plan
vi.
Schedule performance and cost performance
SECTION B 1
Part 1
Appraise the situation in project B
This project which worth $ 4 billion is about 78 % complete and To Complete Performance Index is
basically a reasonable Earn Value Management (EVM) metric employed chiefly to determine whether a
liberated estimate at the completion of the project is rational. And in this project, it is more than 1 hence it is
very reasonable. The To Calculated Performance Index computes the future needed cost efficiency required
to realize a target Estimate at Completion (EAC). This project is hence reasonable being that it is 78%
complete and it’s To Complete Performance Index is 1.295 which is more than 1 (Lang, 2013). The cost of
the project is this huge and it is 78 % complete further shows that the project control is rationale. According
to resource management perspectives, the project is fully rationale due to a large amount of money injected
into it.