Project Cost Management Exercises

1. Your project has a total budget of $300,000. You

check your records and find that you've spent
$175,000 so far. The team has completed 40% of the
project work, but when you check the schedule it
says that they should have completed 50% of the
work. Calculate the following:

BAC = $___________; PV = $________ x ____% =

$________

AC = $___________; EV = $________ x ____% =

$________

SV = $___________ -- $______________ = $_____________

CV = $___________ --$______________ = $_____________

SPI = $____________ / $____________ =

CPI = $____________ / $____________ =

2. You're managing a highway construction project. Your

total budget is $650,000, and there are a total of
7,500 hours of work scheduled on the project. You
check with your accounting department, and they tell
you that you've spent a total of $400,000. According
to the schedule, your crew should have worked 4,500
hours, but your foreman says that the crew was
allowed to work some overtime, and they've actually
put in 5,100 hours of work. Calculate these earned
value numbers:

BAC = ______________; PV = _________________

AC = ______________; EV = _________________

SV = ______________; CV = _________________

SPI = ______________; CPI = _________________

 3. You are the project manager at an industrial design firm. You expect to spend a
total of $55,000 on your current project. Your plan calls for six people working
on the project eight hours a day, five days a week for four weeks. According to
the schedule, your team should have just finished the third week of the project.
When you review what the team has done so far, you find that they have
completed 50% of the work, at a cost of $25,000. Based on this information,
calculate the earned value numbers:

BAC = ______________; PV = _________________

AC = ______________; EV = _________________

SV = ______________; CV = _________________

SPI = ______________; CPI = _________________

Check all of the following that apply:

_____ The project is ahead of schedule

_____ The project is behind schedule

_____ You should consider crashing the schedule

_____ The project is over budget

_____ You should find a way to cut costs

_____ The project is under budget

4. Your current project is an $800,000 software development effort, with two

teams of programmers that will work for 6 months, at a total of 10,000 hours.
According to the project schedule, your team should be done with 38% of the
work. You find that the project is currently 40% complete. You've spent 50%
of the budget so far. Calculate these numbers

BAC = ______________; PV = _________________

AC = ______________; EV = _________________

SV = ______________; CV = _________________

SPI = ______________; CPI = _________________

Check all of the following that apply:

_____ The project is ahead of schedule

_____ The project is behind schedule

_____ You should consider crashing the schedule

_____ The project is over budget

_____ You should find a way to cut costs

_____ The project is under budget

5. You're the project manager working on a large project scheduled to last for
two years. You've got six different teams working on five major functional
areas. Some teams are ahead of schedule, and other are falling behind. That
means that you have cost overruns in some areas, but you've saved costs in
othersand that's making it very hard to get an intuitive grasp on whether
your project is over or under budget.

Its nine months into your project. The total budget for your project is
$4,200,000. You've spend $1,650,000 so far, and you've got a CPI of 0.875.
Use the Earned Value Management formulas from Forecasting to figure out
where things stand.

EAC = _________________; ETC = _____________________

VAC = _________________

Will the project be over or under budget when it's complete? (Check one)

___ The project will be over budget; __ The project will be within its budget.

How much will the project be over or under budget? ___________