You are the sponsor for project XY. The project manager has provided you the following three status reports.

CALCULATING BCWP
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Module 3 Critical Thinking Assignment
Calculating BCWP
You are the sponsor for project XY. The project manager has provided you the following three status reports. The project started on 2/1 and it is now the end of the 4th week. For this assignment, complete this packet in its entirety to include all tables, blanks, and questions. Complete the file and submit as your completed assignment.
Percent: Completion Report
Activity Date Started Percent completed Time to Complete (weeks)
AB 2/1 100 Completed
AC 2/1 60 2
AD 2/1 100 Completed
DE Not started—delayed n/a 3
BF 2/14 40 3

Project Planning Budget: Dollars Budgeted Per Week for Each Activity, Project Starting 2/1
Activity Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Total $
AB 2,000 2,000 2,000 6,000
AC 3,000 4,000 4,000 4,000 5,000 20,000
AD 2,000 3,000 2,500 7,500
BF 2,000 3,000 4,000 3,000 3,000 15,000
CE 2,500 2,500
DE 3,500 3,500 3,500 10,500
EF 3,000 3,000
Total: 7,000 9,000 8,500 9,500 11,500 10,000 6,000 3,000 64,500

Cost Summary
Week Ending Cumulative to Date
Activity Budget Cost Actual (Over) / Under Budget Cost Actual (Over) / Under
AB — — — 6,000 6,200 (200)
AC 4,000 4,500 (500) 15,000 12,500 2,500
AD — 2,400 (2,400) 7,500 7,400 100
BF 2,000 2,800 (800) 2,000 4,500 (2,500)
DE 3,500 — 3,500 3,500 — 3,500
Total 9,500 9,700 (200) 34,000 30,600 3,400

It is now the end of Week 4 and you want to determine the status of the project using earned value management. Complete the table and earned value metrics below. Some of the information has already been entered for you.

Activity % Complete Planned Value (PV) Earned Value (EV) Actual Cost (AC) Cost Variance Schedule Variance Total Budget
AB 100 6000 6000 6200 (200) 0 6000
AC 60 9000 12000 12500 (500) 3000 20000
AD 100 7500 7500 7400 100 0 7500
BF 40 800 6000 4500 1500 (1500) 15000
CE 0 0 0 0 0 2500
DE* 0 0 0 0 0 10500
EF 0 0 0 0 0 3000
TOTAL 23300 31500 32200 900 1500 64500
* Note that activity DE has been delayed and does not impact the calculations.

Calculate each of the following:

Cost Variance ($) = EV – AC
Schedule Variance ($) = EV – PV
Schedule Variance (weeks) = Schedule Variance ($) / Average Weekly PV
Cost-at-Completion = (Rate of Spending x Total Budget) = ([AC / EV] * Total Budget)
CPI = EV / AC
SPI = EV / PV

The missing figures are obtained by using Anbari(2003) formula where;
Planned value (PV) =Planned %complete multiplied by budget at completion and
Earned value (EV) =% of completed work multiplied by the budget at completion.
Cost Variance ($) = EV – AC
=31500-32200= (700)
Schedule Variance ($) = EV – PV
31500-23300=8200
Schedule Variance (weeks) = Schedule Variance ($) / Average Weekly PV
1500÷23300=0.0644
Cost-at-Completion = (Rate of Spending x Total Budget) = ([AC / EV] * Total Budget)
(32200÷31500)64500=65933.33
SPI = EV / PV
31500÷23300=1.3519

CPI = EV / AC
31500÷32200=0.0644

Add your written analysis below by answering three questions:
1. What is the state of the project?
In answering the question on the state of the project, two parameters are considered;
1. Scheduled performance index(SPI)
2. Cost performance index(CPI)
According to Meredith and Mantel(2011),The scheduled performance index shows the progress of the project in comparison to the planned progress. When the schedule performance index is more than 1, it indicates that the progress is ahead the schedule whereas when the index is below 1, it shows that the project is behind then schedule. And if the index is 1, it means the project is as scheduled to run.
The above results indicate that the project is behind the schedule and more work needs to be done aid bring back to normalcy.
Cost performance index (CPI) on the other hand tells whether the project is over or under budget. If the (CPI) is greater than 1, it means the project is under the budget. When the (CPI) equals to 1, the project is on the budget and when the (CPI) is less than 1, it indicates that the project is above the budget.
With the obtained results above, this project is above its budget.
2. Which activity has had the most positive impact on the project?
Activity AC has impacted the project positively in terms of costs since the actual cost incurred on the activity are far much less than the budgeted costs.
3. Which activity has had the most negative impact on the project?
Project BF has negatively affected the project since it has lagged behind in progress and thus delayed the whole project behind.

Reference
Meredith, J. R., & Mantel Jr, S. J. (2011). Project management: a managerial approach. John Wiley & Sons
Anbari, F. T. (2003). Earned value project management method and extensions. Project management journal, 34(4), 12-23