Group 4 HW chap 11 30/5

Name:

Lê Tấn Sang BABAWE18122

Phạm Thị Mỹ Huyền BABAWE17425

Mai Quốc Kim Nguyên BABAWE17490

Đỗ Trần Bảo Chi BABAWE16172

Problem 2:

The critical ratio formula is:

(Actual progress/scheduled progress) * (budgeted cost/actual cost)

So, the critical ratio for each activity will be:

A: 4/4 x 60/40 = 1.5

B: 3/2 x 50/50 = 1.5

C: 2/3 x 30/20= 1

D: 1/1 x 20/30 = 0.67

E: 2/4 x 25/25= 0.5

The more the critical ratio is away from 1, the more the activity is away from the target.
Hence, for A, the reason for high critical ratio is that the budgeted cost is considerably higher than the
actual cost.

For B, the actual progress is higher than the scheduled progress.

For C, ratio being 1, we needn't investigate it.

For D, budgeted cost is less than the actual incurred cost, the reason behind the critical ratio less than 1.

For E, the Actual Progress in terms of number of days is quite less than the scheduled progress.

Problem 3:

Estimate the time and the actual ratio by using the formular
While the ratio is greater than 1, the progess of project is good. And the progress of project is bad while
the ratio is less than 1.

After we calculated the ratio:

We conclude that the activity B and C equal to 1 on time. (AP/BP = 1.00)

The result of activity A and E is less than 1, it will be later than the schedule time.

The result of activity D is over 1.00, so it is earlier than the schedule time.

Problem 6:

General Progress ratio= Earned value/planned daily value

Cost ratio=Cost/Planned daily cost

Critical Ratio= General progress ratio*cost ratio

Day General General Cost ratio A Cost ratio B Critical Critical

Progress Progress Ratio A Ratio B
ratio A ratio B
1 0.90 0.90 0.95 0.95 0.85 0.85

2 0.92 0.88 0.98 0.94 0.90 0.83

3 0.94 0.95 1.01 1.02 0.95 0.97

4 0.98 1.01 1.06 1.09 1.04 1.10

5 1.04 0.89 1.16 0.99 1.23 0.88

6 1.12 1.05 1.26 1.18 1.41 1.24

Problem 8:

We need to see for activity 3-5 whether it is underage or overage:

Activity 3-5 is 70%, so as per the budgeted cost, cost of activity 3-5 should be:
Budgeted cost for activity 3-5 for 70% completion = 405x70% = 283.50

Overage cost = actual cost – budgeted cost

= 400-283.50

= 116.50

By 40th day, activity 3-5 is 70% complete. So total time it should take would be

Budgeted time = 10+8+12+18x0.70 =42.60

Actually, it has taken 40 days. Therefore, underage for days is 42.60-40 = 2.60 days

Problem 10:

As seen from above, the project completion duration is 34 weeks

The total budget of the project = Sum of budget for each 900+1200+1200+1800+1400+1500+800 =
$8800 activity =

Total cost incurred = $7500

Current week = 24

Hence, planned cost = (24/34)*Total budget = (24/34)*8800 = $6211.76

Earned value = Sum of %complete * budget of each activity = 100%*900 + 100%*1200 + 100%*1200 +
100%*1800 + 100%*1400 + 40%*1500 + 0%*800 = 900+1200+1200+1800+1400+600+0 = $7100

Hence, EV = $7100 PV = $6211.76 AC = $7500

Hence, Schedule variance = SV = EV - PV = 7100 - 6211.76 = $888.24

Schedule performance index = SPI = EV/PV = 7100/6211.76 = 1143

Cost Variance = EV - CV = 7100 - 7500 = $-400

Hence, there is cost overage and it is $400 Cost performance index = CPI = EV / CV = 7100 / 7500 =
0.947

Since SV is positive and SPI > 1, the project is ahead of schedule

Critical Ratio = SPI*CPI = 1.143*0.947 = 1.082

Since, Critical ratio > 1, the project is under control. Comment >