Calculate schedule performance efficiency to three digits

Assignment Help Operation Management

Reference no: EM132254813

Project BLUESKY is to produce 350 widgets and is scheduled to take five weeks. Each unit is planned to cost $80. The project is severely cost constrained; the project budget does not include any contingency or management reserves. Performance data for the project at the end of week four is presented below:

* 260 total units were planned to be produced

* 290 units have actually been produced

* The financial manager reported that the business had actually spent $24,800 on the project by the end of week four.

You calculate, PV, EV, and BAC as follows:

PV = 260 units X $80 per unit = $20,800

EV = 290 units X $80 per unit = $23,200

BAC = 350 units x $80 per unit = $28,000

1. Calculate cost variance (CV). Based on this information, is the project over or under budget? Explain.

2. Calculate schedule variance (SV). Based on this information, is the project ahead or behind schedule? Explain.

3. Calculate cost performance efficiency to three digits. Based on this information, is the project performing better or worse than planned? Explain.

4. Calculate schedule performance efficiency to three digits. Based on this information, is the project performing better or worse than planned? Explain.

5. What is the forecast of project cost at completion assuming remaining work will be performed according to plan? How much budget variance is expected at completion?

6. Assuming remaining work will be performed according to plan, what is the forecast of funding needed to complete the project (from this point forward)?

7. What cost performance efficiency would be required for the remainder of the project to complete the project within the original budget?

8. As the project financial manager, what recommendations would you make?

Reference no: EM132254813

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