Please don’t change the name of the file. When you create an Excel spreadsheet, please name it same as the Word Doc with some random letters at the end.
Thanks
Questions
From the data shown below, calculate the earned value of each control account as of 5/30/14. Assume all control account work is on schedule except as noted below.
Control Account | Scheduled Start | Scheduled Completion | Budgeted Value | EV Progress Rule |
1 | 3/3/2014 | 6/30/2014 | 10,000 | Percent Complete with Gates (Note 1) |
2 | 5/5/2014 | 6/6/2014 | 3,000 | Fixed Formula: 50/50 |
3 | 5/26/2014 | 6/6/2014 | 1,000 | Fixed Formula: 0/100 |
4 | 5/12/2014 | 5/30/2014 | 2,000 | Fixed Formula:30/70 |
5 | 4/14/2014 | 7/11/2014 | 15,000 | Weighted Milestones (Note 2) |
Note (1): Five equally-valued gates have been established in this control account. Two of the five gates are complete as of 5/30/14.The Control Account Manager estimates that half of the work required for the third gate has also been completed.
Note 2: Six milestones have been established in this control account with the following values: (1) milestone 1 – 20%; milestone 2- 15%; milestone 3 – 10%; milestone 4 – 25%; milestone 5 – 15%; milestone 6 – 15%. Three of the milestones are complete as of 5/30/14.
Limit responses to 150 words.
1. How does earned value give a clearer picture of project schedule and cost status than a simple plan versus actual system?
2. Why is it important to resist changes to the cost baseline? Under what conditions would changes to the baseline be appropriate? When would changes to the baseline not be allowed?
3. What is the cost of quality (COQ) and how is this cost represented in the project cost baseline?
4. Identify and describe two methods used to determine the earned value credit for a work package in progress
5. Cost Variance (CV) and Cost Performance Index (CPI) can both be used to determine whether a project is on budget, under budget, or over budget at a particular point in time. Why have two measures for the same thing?
