Chapter 7 Class Activity -1(Revision)

Consider the activity table and progress report :

Activity Predecessor Time(days) Estimated cost

A None 1 $50
B None 2 $100
C A 2 $200
D C 2 $100

Project started on Sunday and we received the following progress repot

at the end of Monday (day2)

Activity A is completed 100% and the cost 60$

Activity B is completed 80% and the cost incurred is 110$

Activity C is completed 20% and the cost incurred is 30$

13–1
Questions:
1. Draw Gantt chart
2. Calculate PV,EV,AC by considering the progress report
3. Calculate scheduled variance(SV)
4. Cost variance(CV)
5. Scheduled performance index(SPI)
6. Cost performance index(CPI)
7. Calculate estimated cost at completion (EAC)
8. Draw cost/schedule graph showing PV,EV,AC,SV,CV,EAC,BAC

13–2
 Step 1: Draw Gantt Chart
1

A 0 1

B 0 2

2
C
1 3
2
D 3 5

0 1 2 3 4 5

Sun Mon Tue Wed Thu

Activity Predecessor Time(days) Estimated cost

A None 1 $50
B None 2 $100
C A 2 $200
D C 2 $100
13–3
 Step 2: Placing Estimated Cost
1 $50

A 0 1

2 $100

B 0 2

2 $200
C
1 3
2 $100
D 3 5

0 1 2 3 4 5
1
Sun Mon Tue Wed Thu

Activity Predecessor Time(days) Estimated cost

A None 1 $50
B None 2 $100
C A 2 $200
D C 2 $100
13–4
 Step 3: Showing Progress Report on Gantt Chart
1 $50
100% , cost $60
A 0 1

2 $100
80% , cost $110
B 0 2

2 $200
20% , cost $30
C
1 3
$100
2
D 3 5

0 1 2 3 4 5
1
Sun Mon Tue Wed Thu

Progress Report: Project started on Sunday, and we received the following progress repot at the
end of Monday (day2)

Activity A is completed 100% and the cost 60$

Activity B is completed 80% and the cost incurred is 110$

Activity C is completed 20% and the cost incurred is 30$

13–5
 Step 4 : Deriving PV, EV, AC
1 $50
100% , cost $60
A 0 1

2 $100
80% , cost $110
B 0 2

2 $200
20% , cost $30
C
1 3
$100
2
D 3 5

0 1 2 3 4 5
1
Sun Mon Tue Wed Thu

A B C
(BCWS) PV : 50 + 100 + 100 = $ 250
(BCWP)EV : 50 + 80 + 40 = $170
(ACWP)AC: 60 + 110 + 30 =$ 200

13–6
13–7
 Step 5 : Calculating Variances (SV,CV )and index values (SPI,
CPI) using PV, EV and AC

A B C
(BCWS) PV : 50 + 100 + 100 = $ 250
(BCWP) EV : 50 + 80 + 40 = $170
(ACWP) AC: 60 + 110 + 30 =$ 200

Schedule Variance(SV) = EV-PV =170-250 = - $80

Cost Variance(CV) = EV-AC =170-200 = - $30

Schedule Performance Index(SP1)= EV/PV = 170/250 = 0.68

Cost Performance Index(CPI) = EV/AC =170/200 = 0.85

13–8
Forecasting Model: EACf

13–9
Step 6: Forecasting Model: EACf

450- 170
= _____________
= $ 329.4
0.85

= 329.4+200= $ 529.4

13–10
&600
EAC= $529.4

&500

BAC= $450
&400

&300
$250

$200
SV=- $80
&200
CV=- $30
PV
$170

&100

0 1 2 3 4 5

13–11
 Chapter 7 Class Activity -2 (Revision)
Consider the activity table and progress report :
Activity Predecessor Time(days) Estimated Cost

A None 1 $ 90

B None 2 $120

C A 2 $ 200

D B 1 $ 60

E C 1 $100

Progress Report

The project started on Sunday and we received the following progress report at the end of Tuesday (day 3):
Activity A is Completed 100%, and the cost incurred is 70$
Activity B is Completed 100%, and the cost incurred is $110
Activity C is completed 70% and the cost incurred is $90
Activity D is completed 90% and the cost incurred is $ 50

13–12
Questions:
1. Draw Gantt chart
2. Calculate PV,EV,AC by considering the progress report
3. Calculate scheduled variance(SV)
4. Cost variance(CV)
5. Scheduled performance index(SPI)
6. Cost performance index(CPI)
7. Calculate estimated cost at completion (EAC)
8. Draw cost/schedule graph showing PV,EV,AC,SV,CV,EAC,BAC

13–13
 Step 1: Draw Gantt Chart
1

A 0 1
2
B 0 2
2
C 3
1
1

D 2 3
1

E 3 4
4

0 1 2 3 4 5

Sun Mon Tue Wed Thu

Activity Predecessor Time(days) Estimated Cost

A None
B None
C A
D B
E C
1 $ 90
2 $120
2 $ 200
1 $ 60
1 $100
13–14
 Step 2: Placing Estimated Cost
1 $90

A 0 1
$120
2
B 0 2
2 $200
C 3
1
1 $60
D 2 3
$100

E 3 4

0 1 2 3 4 5

Sun Mon Tue Wed Thu

Activity Predecessor Time(days) Estimated Cost

A None 1 $ 90
B None 2 $120
C A 2 $ 200
D B 1 $ 60
E C 1 $100
13–15
 Step 3: Showing Progress Report on Gantt Chart
1 $90
100% , cost $70
A 0 1
$120
2
100% , cost $110
B 0 2
$200 70% , cost $90
2
C 3
1
1 $60 90% , cost $50
D 2 3
$100

E 3 4

0 1 2 3 4 5

Sun Mon Tue Wed Thu

Progress Report

The project started on Sunday and we received the following progress report at the end of Tuesday (day 3):
Activity A is Completed 100%, and the cost incurred is 70$
Activity B is Completed 100%, and the cost incurred is $110
Activity C is completed 70% and the cost incurred is $90
Activity D is completed 90% and the cost incurred is $ 50

13–16
 Step 4 : Deriving PV, EV, AC
1 $90
100% , cost $70
A 0 1
$120 100% , cost $110
2
B 0 2
$200 70% , cost $90
2
C 3
1
1 $60 90% , cost $50
D 2 3
$100

E 3 4

0 1 2 3 4 5

Sun Mon Tue Wed Thu

A B C D
(BCWS) PV : 90 + 120 + 200 + 60= $ 470
(BCWP) EV : 90 + 120 + 140 + 54 = $404
(ACWP) AC: 70 + 110 + 90 + 50 = $ 320

13–17
 Step 5 : Calculating Variances (SV,CV )and index values (SPI,
CPI) using PV, EV and AC

(BCWS) PV = $ 470
(BCWP) EV = $404
(ACWP) AC = $320

Schedule Variance(SV) = EV-PV =- 66

Cost Variance(CV) = EV-AC = 84

Schedule Performance Index(SP1)= EV/PV =.86

Cost Performance Index(CPI) = EV/AC =1.26

13–18
Step 6: Forecasting Model: EACf

570- 404
= _____________
= $ 131.7
1.26

= 131.7+320= $ 451.7

13–19
$600 BAC= $570

$ 500
EAC= $451
SV=- $66
PV $470

$ 400 CV= $84

$404

$ 300 $320

$ 200

$100

0 1 2 3 4 5

13–20