Kramerica Industries has begun a major project aimed at building a new facility solely dedicated toward producing their new line of pirate puffy shirts. Based
Kramerica Industries has begun a major project aimed at building a new facility solely dedicated toward producing their new line of "pirate puffy shirts". Based on the project manager and lead architect Mr. Costanza's initial analyses, the overall project was scheduled to take two years (i.e., 24 months) with an approved budget at completion of $4.8 million.
a-Assuming that all value enhancements to the project are linear (i.e., the BAC was determined by assuming that the total costs would be spread equally among the 24 months), what is the planned value per month? Please show me all calculations so I can understand how you came about with the answer so I know how to complete it in the future.
b-Eight months into the project, Mr. Constanza determines that the earned value is $220,000 per month. What is the total cumulativeplanned value and cumulative earned value over this 8-month period?
c-Calculate and interpret both the schedule variance (at the 8-month period) and the schedule performance index.These values should be calculated at the 8-month time period (i.e., using the values you calculated in part (b)). Is the project ahead of or behind schedule, and why or why not?
d- In addition to the earned value, it was determined that the actual monthly cost was $250,000 per month. What is the cumulative actual cost over this 8-month period?
e. Calculate and interpret both the cost variance (at the 8-month period) and the cost performance index. These values should be calculated at the 8-month time period (i.e., using the values you calculated in parts (b) and (d)). Is this project faring well with respect to its "cost spent" and "value. earned" metrics?
f.. Whereas Mr. Kramer is very interested in the total amount of money expected to be spent, one of the key stakeholders, J. Peterman, is very interested in the anticipated completion date of the project.Please use the above information to determine both the new projected completion date and the new cost estimate at completion. Will either of these stakeholders be happy? Make a plot showing the PV, EV, and AC (8 months), BAC at 24 months, and the new time estimate and EAC). (14 points total; 6 points each; 1 point conclusion; 1 point plot)
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