Crashing and Earned Value Problems

In this homework assignment, you will be working through two crashing problems and four earned value problems. All the information you need is included within this Homework packet. Make sure you answer all parts of the questions in their entirety.

Once you have worked through the problems, please post your responses to the Dropbox. Please refer to the course Syllabus for the due date.

PROBLEM 1
Use the network diagram below and the additional information provided to answer the corresponding questions.

a) Give the crash cost per day per activity.

A = $125
B = $50
C = $250
D = $300
E = $250

b) Which activities should be crashed to meet a project deadline of 10 days at minimum cost? What is the cost impact of crashing these activities? [3 points]

E (by 1 day) and B (by 1 day). The cost impact of crashing these activities is $300.

c) Find the new budget (or cost of the project).

The new cost of the project would be $1750.

PROBLEM 2
Use the network diagram below and the additional information provided to answer the corresponding questions. [13 points] a) Give the crash cost per day per activity.

A = $250
B = $50
C = $250
D = $100

b) Which activities should be crashed to meet a project deadline of 13 days at minimum cost? What is the cost impact of crashing these activities?

Crash B by 1 day at a cost of $50.

a)Calculate the cost variance (CV).
CV = EV-AC = $535 – $540 = -$5

b)Is the CV over or under budget?
The CV is over budget.

c)Calculate the schedule variance (SV).
SV = EV – PV = $535 – $523 = 12

d)Is the SV ahead of or behind schedule?
The SV is ahead of schedule.

a)Calculate the cost performance index (CPI).
CPI = EV/AC = $39/$34 = approximately 1.15

b)Is the project cost efficient or not efficient?  The project is cost efficient.

c)Calculate the schedule performance index (SPI).  SPI = EV/PV = $39/$42 = approximately .93

d)Is the schedule efficient or not efficient?
The schedule is efficient.

a)Calculate the cost variance (CV).
CV = EV – AC = $678 – $550 = $128

b)Calculate the cost performance index (CPI).
CPI = EV/AC = $678/$550 = approximately 1.23

c)Calculate the schedule variance (SV).
SV = EV – PV = $678 – $735 = -$57

d)Calculate the schedule performance index (SPI).  SPI = EV/PV = $678/$735 = approximately .92

e) Given these data, what should a project manager do with respect to this project?

This project is under budget, but behind schedule. The project manager should consider adding resources to bring the project up to date and make up time.

a)Calculate the cost variance (CV).
CV = $678 – $760 = -$82

b)Calculate the cost performance index (CPI).
CPI = $678/760 = approximately .89

c)Calculate the schedule variance (SV).
SV = $678 – $735 = -$57

d)Calculate the schedule performance index (SPI).  SPI = $678/$735
= approximately .92

e)Explain the project performance in terms of efficiency, budget, and schedule. What should the project manager do for the project?

This project is inefficient, over budget and behind schedule. The project manager needs to look at the schedule, his list of resources, and budget to determine where the project went wrong. Was this caused by delays, broken machinery, etc.? Once the cause is determined, the project manager must seek ways to avoid risk in the rest of the project, all the while adjusting his costs and duration so that he can have a successful project.