using the case study, complete the budget exercise

Objective: To gain experience calculating camed value, cost variance, schedule variance, and cost performance index. Exercise: Given the following Project Bascline Plan, complete the form to develop a status report for the project at the end of period 4 and the end of period 8 . What is the status of the project at the end of period 8 ? Proiect Baseline Plan Part 1: Comolete the following tables Step 12; Calculate the Performance Indexes Summary: CPI: Cost Performance Index; CPI = EV / AC (ratio: for every $ spent, this is the amount of $ value earned) Pried EV AC EvSvever 4 Step 13: Calculate Ferecasted Cost at the end of Peried 8: Assumption \#1. FCAC=TPV/CPI= Assumption \#2. FCAC=CAC+(TPVCEV)= Step 12: Calculate the Performance Indexes Summaryz CPI: Cost Performance Index; CPI = EV / AC (ratio: for every $ spent, this is the amount of 5 value eamed) Frimad AV RV SV CV CPI \begin{tabular}{l} 2 \\ 4 \\ 6 \\ 8 \\ \hline \end{tabular} Step 13: Calculate Forecasted Cost at the end of Period 8: Assumption 11. FCAC=TPV/CPI= Assumption FCAC=CAC+(TPVCEV)= Terms and Formulas: FCAC: Forecast Cost At Completion AC: Actual Cost CAC: Cumulative Actual Cost TPV: Total Planned Value EV: Earned Value CEV: Cumulative Earmed Value CPV: Cumulative Planned Value CPL: Cost Pertormance Index ES: Early Start L.F: Late Finish SL: Slack PV: Planned Value (Budgeted Cost) Formula for Cost Variance: CV = BV - AC Formula for Schedule Variance: SV=EVPV Cost Performance Index (CPI) CPI =EV/AC Ralko for erery 5 speut, this in the amownt of 5 ruthe carned Project: Build a digital camera prototype Project: Build a digital surgical camera prototype lim15 Project: Build a digital surgical camera prototype sin2 Thineryin Project: Build a digital surgical camera prototype Status Report: Phase I (Month \#I) Project: Build a digital surgical camera prototype. \begin{tabular}{|lcrrrrr|} \hline Status Report: Ending Period 1 & & & & & \\ Task & \%Complete & EV & AC & PV & CV & SV \\ A & 50% & 10 & 10 & 10 & 0 & 0 \\ Cumulative Totals & & 10 & 10 & 10 & 0 & 0 \\ \hline \end{tabular} CV=EV=ACance:5V=EVFr Status Report: Phase 4 Cost Variance: CV=EVMC Schedule Variance: 5V=EVPV Status Report: Phase 5, 6 Cost Variance: CV=EVAC schedule Variance: 5V = EV - PV matra 13 Status Report: Another vi Cost performance index (CPI) EV/AC=160/230=0.69 Forecast what the total costs will be at the completion of the project or work package Two different assumptions Assumption \#1: FCAC=TPV/CPI=320/0.69=463.77($463,000) Assumption \#2: FCAC=CAC+(TPVCEV)=230+(320160)=$390 CONTROLLING COSTS Analyze cost performance on a regular basis Determine which work packages require corrective action Decide what specific corrective action Revise the project plan Evaluate negative cost variance Take corrective actions Near term activities Activities with large cost estimate Reduce costs of activities Evaluate the trade-off of cost and scope Objective: To gain experience calculating camed value, cost variance, schedule variance, and cost performance index. Exercise: Given the following Project Bascline Plan, complete the form to develop a status report for the project at the end of period 4 and the end of period 8 . What is the status of the project at the end of period 8 ? Proiect Baseline Plan Part 1: Comolete the following tables Step 12; Calculate the Performance Indexes Summary: CPI: Cost Performance Index; CPI = EV / AC (ratio: for every $ spent, this is the amount of $ value earned) Pried EV AC EvSvever 4 Step 13: Calculate Ferecasted Cost at the end of Peried 8: Assumption \#1. FCAC=TPV/CPI= Assumption \#2. FCAC=CAC+(TPVCEV)= Step 12: Calculate the Performance Indexes Summaryz CPI: Cost Performance Index; CPI = EV / AC (ratio: for every $ spent, this is the amount of 5 value eamed) Frimad AV RV SV CV CPI \begin{tabular}{l} 2 \\ 4 \\ 6 \\ 8 \\ \hline \end{tabular} Step 13: Calculate Forecasted Cost at the end of Period 8: Assumption 11. FCAC=TPV/CPI= Assumption FCAC=CAC+(TPVCEV)= Terms and Formulas: FCAC: Forecast Cost At Completion AC: Actual Cost CAC: Cumulative Actual Cost TPV: Total Planned Value EV: Earned Value CEV: Cumulative Earmed Value CPV: Cumulative Planned Value CPL: Cost Pertormance Index ES: Early Start L.F: Late Finish SL: Slack PV: Planned Value (Budgeted Cost) Formula for Cost Variance: CV = BV - AC Formula for Schedule Variance: SV=EVPV Cost Performance Index (CPI) CPI =EV/AC Ralko for erery 5 speut, this in the amownt of 5 ruthe carned Project: Build a digital camera prototype Project: Build a digital surgical camera prototype lim15 Project: Build a digital surgical camera prototype sin2 Thineryin Project: Build a digital surgical camera prototype Status Report: Phase I (Month \#I) Project: Build a digital surgical camera prototype. \begin{tabular}{|lcrrrrr|} \hline Status Report: Ending Period 1 & & & & & \\ Task & \%Complete & EV & AC & PV & CV & SV \\ A & 50% & 10 & 10 & 10 & 0 & 0 \\ Cumulative Totals & & 10 & 10 & 10 & 0 & 0 \\ \hline \end{tabular} CV=EV=ACance:5V=EVFr Status Report: Phase 4 Cost Variance: CV=EVMC Schedule Variance: 5V=EVPV Status Report: Phase 5, 6 Cost Variance: CV=EVAC schedule Variance: 5V = EV - PV matra 13 Status Report: Another vi Cost performance index (CPI) EV/AC=160/230=0.69 Forecast what the total costs will be at the completion of the project or work package Two different assumptions Assumption \#1: FCAC=TPV/CPI=320/0.69=463.77($463,000) Assumption \#2: FCAC=CAC+(TPVCEV)=230+(320160)=$390 CONTROLLING COSTS Analyze cost performance on a regular basis Determine which work packages require corrective action Decide what specific corrective action Revise the project plan Evaluate negative cost variance Take corrective actions Near term activities Activities with large cost estimate Reduce costs of activities Evaluate the trade-off of cost and scope