Exercise 1

What is your Schedule Performance Index (SPI) if your Cost Variance CV is $10,000, your Schedule Variance SV is -$3,000 and your Planned Value PV is $100,000?

CV=EV-AC =

SV=EV-PV . EV=SV+PV = -3000 +10000 = 97000

SC=97000-10000= 3000

SPI = EV/PV = 97000/100000=0.97

Exercise 2

In the latest earned value report for your project, you see the Cost Performance Index CPI is 1.2, the Schedule Performance Index SPI is 0.8, the Planned Value PV is $600,000 and the Schedule Variance SV is -$120,000. You can’t find the Cost Variance CV in the report, so you need to calculate it based on the information given. What is the CV?

CPI=1.2

SPI=0.8

PV=600,000

SV=-120,000

CV=?

CV= EV-AC, CPI=EV/AC

SPI=EV/PV 0.8=EV/600,000 = 0.8*600,000 =480,000

CPI=EV/AC AC=EV/CPI = 480,000/1.2 = 400,000

CV=480,000-400,000 = 80,000

Exercise 3

Cost performance measurement is BEST done through which of the following? B

a) Asking for a percent complete from each team member and reporting that in the monthly progress report

b) Calculating earned value and using the indexes and other calculations to report past performance and forecast future performance

c) Using the 50/50 rule and making sure the life cycle cost is less than the project cost

d) Focusing on the amount expended last month and what will be expended the following month

Exercise 4

Although the stakeholders thought there was enough money in the budget, halfway through the project the cost performance index CPI is 0.7. To determine the root cause, several stakeholders audit the project and discover the project cost was estimated analogously. Although the activity estimates add up to the project estimate, the stakeholders think something was missing in how the estimate was completed. Which of the following describes what was missing? C

a) Estimated costs should be used to measure CPI.b) SPI should be used, not CPI.c) Bottom-up estimating should have been used.d) Past history was not taken into account.