Project Cost Management

Harold Johnson is worried about the cost, so he has asked you to review the existing cost estimate to get a solid cost baseline to evaluate performance. Recall that your budget goal is $500,000 for the six-month project.

Assume you have completed three months of the project. The BAC was $500,000 for this six-month project. Also assume the following: PV= $250,000 EV= $230,000 AC= $300,000 Using this information, answer the following questions:

1. What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?
2. Use the CPI to calculate the estimate at completion (EAC) for this project. Use the SPI to estimate how long it will take to finish this project.
3. How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget?