Project Management: Fence Building Analysis

School: University of Texas, Dallas - Course: MIS 6360 - Subject: Accounting

Question 1 You have a project to build a new fence.The fence is a four sided square.Each side is to take one day to build and is budgeted for $1,500 per side.The sides are planned to be completed one after the other.Today is the end of day three.Using the project status information listed below, calculate PV, EV, AC, Budget at Completion (BAC), CV, SV, Estimated Cost at Completion (ECAC), Estimated Time at Completion (ETAC), Cost Variance at Completion, and Schedule Variance at Completion. ActivityStatus at End of Day 3 Side 1Complete, spent $1,500 Side 2Complete, spent $1,750 Side 350% done, spent $1,000 Side 4Not yet started Question 2 Is the following project ahead of schedule, on schedule or behind schedule at day 20? Is the following project over budget, at budget or under budget at day 20?

Question 1 Given Info: Total planned Budget$6,000 Total Project Duration4 days Total Work Required4 Sides Total Work Completed At The End Of Day 32.5 Sides Solution: PLANNED VALUE (PV)=BAC*(time passed/total schedule time) =$4500 EARNED VALUE (EV)=BAC*(work completed/total work required) =$3750 ACTUAL COST (AC)=Amount of money spent after 3 days =$4250 BUDGET AT COMPLETION (BAC)=Total Planned Budget =$6000 COST VARIANCE (CV)=EV-AC =-$500 SCHEDULE VARIANCE (SV)=EV-PV =-$750 ESTIMATED COST AT COMPLETION (ECAC)=BAC*(AC/EV) =$6800 Over Budget ESTIMATED TIME AT COMPLETION (ETAC)=Original Time*(PV/EV) =4.8 DAYS behind the schedule COST VARIANCE AT COMPLETION=Estimated cost at completion - Planned budget =$800 Over Budget SCHEDULE VARIANCE AT COMPLETION=Estimated time at completion - Planned Schedule =0.8 days behind the schedule

Question 2: At Day 20, we have the given info: Earned Value$14,000 Planned Value$19,000 Actual Cost$13,000 At Day 20, we calculate the below: Cost Variance (CV)EV-AC =$1000 UNDER BUDGET Schedule Variance (SV)=EV-PV =-$5000 BEHIND SCHEDULE