Reference no: EM132271580

Assignment : Determine Project Status (end of project variance review)

Scenario

The War Eagle robotic welding implementation project is now complete and it is your job to determine the actual cost of the project and identify any cost savings or overruns and related variance calculations.

As often happens in a project several things have occurred that were not as anticipated. Specifically:

Dale's costs for the project must be recorded at his overtime rate due to his being over- assigned to multiple projects during the same timeframe.

Terri proved to be an efficient worker and completed every one of her assigned tasks in 60% of the scheduled/budgeted time. She worked on other projects during any slack time of the robotic welding project, so the project should only be charged for her actual time worked.

The Identify Primary Vendors task required a duration of 5 days to complete.

The Score Vendor Proposals task was completed in 4 days.

The Negotiate Contract Terms task required a duration of 10 days to complete.

The actual purchase price of the welding machine was $695,000. The savings were associated with a discount on the third payment.

An unanticipated cost labeled "Lunch for the Steering Committee, multiple meetings" has been assigned to the project by the CFO. Although this was never contemplated in the original project budget, it must now be absorbed into the final project costs (you lost the argument on this with the CFO). This cost is $6,500.

Assignment

Use the Earned Value Management technique to determine:

1. Cost Variance (CV)

2. Schedule Variance (SV)

3. Cost Performance Index (CPI)

4. Schedule Performance Index (SPI)

5. Estimate at Completion (EAC)