Earned Value Management Problem

Earned Value Management Problem

Joe’s Donut shop needs a major renovation.

There are 4 main activities needed over the course of this year. Joe has asked us to do an Earned Value Management report on July 1st and give him an overview of the Key Project Performance Measures.

Activity A plan was to start on January 1st and scheduled to complete on May 30th at a cost of $10000.

As of July 1st, Activity A is only 50% complete as of July 1st.

Activity B plan was to start on March 1st and scheduled to complete on June 30th at a cost of $12000.

As of July 1st, Activity B is only 80% complete as of July 1st.

Activity C plan was to start on April 1st and scheduled to complete on July 31st at a cost of $8000.

As of July 1st, Activity C is 100% complete as of July 1st.

Activity D plan was to start on May 1st and scheduled to complete on October 31st at a cost of $12000.

As of July 1st, Activity D has not even started as of July 1st.

Actual Cost of Work Performed as of July 1st was $40000.

a) Illustrate the 4 activities showing dates, $ and plan vs actual status (see chart below as example)

b) Calculate: Budgeted Cost of Work Scheduled

c) Calculate: Budgeted Cost of Work Performed

d) Calculate: 1) Schedule Variance, 2) Schedule Performance Index, 3) What do these tell us about the schedule?

e) Calculate: 1) Cost Variance, 2) Cost Performance Index, 3) What do these tell us about the costs?

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