Highway Project

Task:

Build $60$ miles of highway over a period of one year.

Budget Data:

$5$ miles per month at $$500,000$ per mile.

Assumptions:

Planned linear accomplishment of work.

All work is measurable except Program Management$/$Support$,$ which is LOE.

No work in process at end of month.

Latest Performance Reports:

See the Monthly Performance Data Table and Integrated Program Management Report $($IPMR$)$ for

Month $7$ that follow this page.

Calculate the:

Schedule Variance Percentage $($SV$\%)$

Cost Variance Percentage $($CV$\%)$

Cost Performance Index $-$ Efficiency $)E$

Cost Performance Index $-$ Productivity $)P$

Schedule Performance Index $($SPI$)$

Months ahead or behind schedule

Percent Complete

Percent Spent

To Complete Performance Index $($TCPI$)$

Independent Estimate at Completion $($IEAC$)$

Estimated Completion Date $($in months$)($ECD$)$

Average Performance Rate Required to achieve the ECD$294$

Section $4$ Eamed Value

Note $1$: Reference the Earned Value Analysis Formulas section in Section $6$ for details on how to calculate the items listed above. ect data before the IPMDAR Contract Performance Data customer. The two DIDs have similar data requirements.

In addition:

Based on the IPMR data, what type of subcontract is used for the materials $($cement$,$ steel rods etc.$)?$ Cost Plus, Time and Materials, or Firm Fixed Price?

Where multiple formulas are provided to calculate a data element, select what you consider to be the most likely outcome or most accurate indicator and be prepared to support your selection,

Using the IMPR for month $7$ and the IPMR DID extract, be prepared to discuss the contractor's best, worst, and most likely estimated cost at completion. Use your analysis to support your po$.$ sition.

Highway IPMR Progress Months $1$ Through $7$

$($In millions of Dollars$)$

$\backslash$table$[[$Month$,$Current,Average,,$],[$Budget$,\backslash$table$[[$Earned$],[$Value$]],$Actuals,Budget,$\backslash$table$[[$Earned$],[$Value$]],$Actuals,Budget,$\backslash$table$[[$Earned$],[$Value$]]],[1,2\mathrm{.}5,1\mathrm{.}0,1\mathrm{.}0,2\mathrm{.}5,1\mathrm{.}0,1\mathrm{.}0,2\mathrm{.}5,1\mathrm{.}0],[2,2\mathrm{.}5,1\mathrm{.}5,1\mathrm{.}5,5\mathrm{.}0,2\mathrm{.}5,2\mathrm{.}5,2\mathrm{.}5,1\mathrm{.}3],[3,2\mathrm{.}5,2\mathrm{.}0,2\mathrm{.}25,7\mathrm{.}5,4\mathrm{.}5,4\mathrm{.}75,2\mathrm{.}5,1\mathrm{.}5],[4,2\mathrm{.}5,1\mathrm{.}5,1\mathrm{.}25,10\mathrm{.}0,6\mathrm{.}0,6\mathrm{.}0,2\mathrm{.}5,1\mathrm{.}5],[5,2\mathrm{.}5,1\mathrm{.}5,1\mathrm{.}75,12\mathrm{.}5,7\mathrm{.}5,7\mathrm{.}75,2\mathrm{.}5,1\mathrm{.}5],[6,2\mathrm{.}5,2\mathrm{.}0,2\mathrm{.}25,15\mathrm{.}0,9\mathrm{.}5,10\mathrm{.}0,2\mathrm{.}5,1\mathrm{.}6],[7,2\mathrm{.}5,4\mathrm{.}0,4\mathrm{.}5,17\mathrm{.}5,13\mathrm{.}5,14\mathrm{.}5,2\mathrm{.}5,1\mathrm{.}93]]$

Budget at Completion $=$$$30M$

Estimate at Completion $=$$$30\mathrm{.}5M$

Estimated Completion Date $=$ Month $15(3$ months late$)$

Note: Budget is based on a plan of $5$ miles per month at $$500,000$ per mile $5$ miles $$$$500,000$ per mile $=$$$2,500,000($Budget$)$

Status is based on the number of miles completed times the budget value of $$500,000$ per mile.

Example: In month seven, $8$ miles were completed. $8$ miles $$$$500,000$ per mile $=$$$4,000,000($Earned Value$)$Classiflcation $($when FWed in$)$EARED VALUE ANALYSIS FORMULAS

$R{e}^{\text{f}\text{e}\text{l}}$ to $C$ hapter $13$ for explanations of these formulas.

variances

cost Variance $(CV)=EV-AC=BCWP-$ACWP

$CV>0$ is favorable $($underrun$)$

$C<mn\; id="EditorElement\_1593423">0</mn>$ is unfavorable $($overrun$)$

schedule Variance $(SV)=EV-PV=BCWP-BCWS$

$SV>0$ is favorable $($ahead of schedule$)$

$SV<mn\; id="EditorElement\_1593244">0</mn>$ is unfavorable $($behind schedule$)$

variance at Completion $(VAC)=$BAC$-$EAC

VAC$>0$ is an underrun

VAC$<mn\; id="EditorElement\_1593085">0</mn>$ is an overrun

Variance Percentages

cost Variance $\%=\frac{CV}{EV}100=\frac{CV}{BCWP}100$

Schedule Variance $\%=\frac{SV}{PV}100=\frac{SV}{BCWS}100$Material Variances

Price Variance Unit Price $-AC$ Unit Price

Variance at Completion $\%=\frac{\text{V}\text{A}\text{C}}{\text{B}\text{A}\text{C}}100$

Labor Variances

Rate Variance Rate $-AC$ Rate