CASE STUDY Determine the following: 1. Cost Variance 2. Cost Performance Index 3. Schedule Variance 4. Schedule Perform
Posted: Tue Apr 26, 2022 1:51 pm
CASE STUDY
Determine the following:
1. Cost Variance
2. Cost Performance Index
3. Schedule Variance
4. Schedule Performance Index
If we continue on the same rate,
5. What is the cost estimate at completion?
6. What is the schedule estimate at completion?
7. If we want to finish on budget, what percentage of the originally planned performance will be needed?
8. If we want to finish on schedule, what percentage of the originally planned performance will be needed?
The plan Our team has been tasked with planting the trees on the plot of land behind our company's new factory The plan: - 30 batches of 20 trees (600 trees) - 5 batches per day (100 trees) budgeted cost per tree 2.90$ (2.5$ per baby tree / 0.40$ for the slow release fertiliser) → total budget 1,740$
. After the first day... 70 trees were planted (the team hit a patch with stones that had to be removed before the trees could be planted) Total cost was 350 $ (we had to rent a special machine to help remove the stones which cost 147$ for the day) Simple EVM calculation: - Earned Value = 70 trees planted x 2.90$ = 203$ Planned Value 100 trees planned per day x 2.90$ = 290$ - Actual Cost = 70 trees planted * 2.90$ + 147$ for the machine - 350$
Visually... 400 350 Actual cost = 350$ = 300 Planned Value = 290$ 250 200 Earned Value = 203$ 150 100 50 0 Start 1st day
Regarding cost... We are here 400 AC 350 300 PV 250 200 EV We should have been here 150 100 50 0 Start 1st day
Regarding schedule... 400 AC 350 300 PV 250 200 EV We are here 150 100 50 0 1 Start 1st day Which is where we should have been then
Regarding schedule... 400 AC 350 300 PV 250 200 EV 150 100 1 50 0 1 Start 1st day Schedule variance in hours
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1. Cost Variance
2. Cost Performance Index
3. Schedule Variance
4. Schedule Performance Index
If we continue on the same rate,
5. What is the cost estimate at completion?
6. What is the schedule estimate at completion?
7. If we want to finish on budget, what percentage of the originally planned performance will be needed?
8. If we want to finish on schedule, what percentage of the originally planned performance will be needed?
The plan Our team has been tasked with planting the trees on the plot of land behind our company's new factory The plan: - 30 batches of 20 trees (600 trees) - 5 batches per day (100 trees) budgeted cost per tree 2.90$ (2.5$ per baby tree / 0.40$ for the slow release fertiliser) → total budget 1,740$
. After the first day... 70 trees were planted (the team hit a patch with stones that had to be removed before the trees could be planted) Total cost was 350 $ (we had to rent a special machine to help remove the stones which cost 147$ for the day) Simple EVM calculation: - Earned Value = 70 trees planted x 2.90$ = 203$ Planned Value 100 trees planned per day x 2.90$ = 290$ - Actual Cost = 70 trees planted * 2.90$ + 147$ for the machine - 350$
Visually... 400 350 Actual cost = 350$ = 300 Planned Value = 290$ 250 200 Earned Value = 203$ 150 100 50 0 Start 1st day
Regarding cost... We are here 400 AC 350 300 PV 250 200 EV We should have been here 150 100 50 0 Start 1st day
Regarding schedule... 400 AC 350 300 PV 250 200 EV We are here 150 100 50 0 1 Start 1st day Which is where we should have been then
Regarding schedule... 400 AC 350 300 PV 250 200 EV 150 100 1 50 0 1 Start 1st day Schedule variance in hours