# How much would the Cost Performance Index (CPI) have to change in order to complete the project within the original budget?

Your project to deliver a product has five activities, each with a finish-to-start relationship. Project baseline information is presented below indicating the planned schedule and budgeted cost of each activity.

Baseline

 Activity Name Start (Baseline) Finish (Baseline) Cost (Baseline) Product 6/2/14 5/25/15 Requirements 6/2/14 8/22/14 60,000.00 Design 8/25/14 11/14/14 90,000.00 Build 11/17/14 3/20/15 120,000.00 Test 3/23/15 5/22/15 50,000.00 Release 5/25/15 5/25/15 0.00

You have to report project status as of January 30, 2015. The associated schedule and cost information is provided below. Assume: (1) a five-day work week; and (2) a constant resource loading (i.e., the rate of planned expenditures is constant over the duration of each activity).

Actual

 Activity Name % Complete Start (Actual) Finish (Actual) Cost (Actual) Product 6/2/14 NA Requirements 100 6/2/14 8/30/14 68,000 Design 100 8/31/14 11/20/14 85,000 Build 70 11/21/14 NA 110,000 Test 0 NA NA 0 Release 0 NA NA 0

Show all work. Round dollar values to the nearest dollar. Calculate all other variables to three decimal places.

1. Earned Value Measures
1. Calculate earned value measures for each activity and for the cumulative project as of January 30, 2015; fill in the table below:
 Activity Planned Value (PV) Earned Value (EV) Actual Cost (AC) Requirements 68,000 Design 85,000 Build 110,000 Test 0 Release 0 Entire Project

1. What is the Budget at Completion (BAC) for the project?
1. Earned Value Performance Measures
1. Calculate earned value performance parameters for each activity and for the cumulative project as of January 30, 2015; fill in the table below:
 Activity Schedule Variance (SV) Schedule Performance Index (SPI) Cost Variance (CV) Cost Performance Index (CPI) Requirements Design Build Test Release Entire Project

1. Is the project ahead of schedule, on schedule, or behind schedule? Why?
2. Is the project over budget, under budget, or on budget? Why?
1. Earned Value Forecasts
1. Assuming the Cost Performance Index (CPI) remains constant for the remainder of the project:
1. What is the Estimate at Completion (EAC)?
2. What is the Estimate-to-Complete (ETC)?
• How much more or less money (other than the current budgeted amount) will you need to finish the project?
1. How much would the Cost Performance Index (CPI) have to change in order to complete the project within the original budget?

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