Review Questions:

6. Why is it important for project managers to resist changes to the project

baseline? Under what conditions would a project manager make changes to a
baseline? When would a project manager not allow changes to a baseline?
The project baseline is a criterion for evaluation and monitoring a projects
progress. It contains milestones which help in reverting back and analyzing
the problems faced. Thus the changes made in baseline document, can
affect a projects scope drastically. It can either turn a project into a success
or lead it to failure.
A client can demand for a change. However, it is usually discouraged and he
is advised and encouraged otherwise. Other factors for baseline changes can
be resources unavailability or natural calamities or disasters.
A project manager must be vigilant and maintain a eagle eyes view,
allowing change only if it necessary such as to improve quality of a
deliverable or to cut to manage the project budget.
A project baseline must never be changed if any budget is used or
overspent, bringing in more project expenditure or lack of resources.
EXERCISE Q2
On day 51 a project has an earned value of $600, an actual cost of $650, and
planned cost of $560.Compute the SV, CV, and CPI for the project. What is
your assessment of the project on day 51?
CV = EV AC = 600 650 = -50
CPI = EV / AC = 600 / 650 = .92

SV = EV PV = 600 560 = +40

Q4 Given the following project network, baseline, and status information,

develop status reports for periods 2,4,6,8 and complete the performance
indices table. Calculate the EACf and the VACf . Based on your data, what is
your assessment of the current status of the project? At completion?
The project is acting nicely in terms of value. The project is presently twenty
three (000) beneath budget and is obtaining $1.18 value of labor for
every greenback spent. In terms of the schedule, the SV indicates
that there's$4 (000) value of labor that was imagined to be done by
the eighth amount that has not been done. This work considerations activity
D that is simply thirty third complete rather than the planned fifty
fifth complete. Since D may be a vital activity the project is overdue. The

project is seventy five % complete.

In terms the longer term, if the project continues to earn one.18 for
every greenback spent the forecasted value at completion would be one
hundred seventy five (000). The project would so be forecasted to
return in thirty one (000) beneath budget. but this could amendment since
the project has incurred a big value over-run to this point for activity D that is
simply thirty third complete. If this pattern continues
savings attained on alternative activities may well be quickly absorbed and
therefore the project wouldn't are available in beneath budget.
Management must investigate Activity D and take corrective action
if potential. Assumptive that there's no positive amendment in Activity D the
project are going to be completed 1-2 time units late.

Question : 07
The following data have been collected for a British health care IT project for
Two-week reporting periods 2 through 12. Compute the SV, CV, SPI, and CPI
for each period. Plot the EV and the AC on the summary graph provided. Plot
The SPI, CPI, and PCIB on the index graph provided. (You may use your own
Graphs. What is your assessment of the project at the end of period 12?
SOLUTION :
By the end of period 2:
Since task 1 is half completed, EV(1) = 50% of PV(1)Total = 0.5 * 8 = 4.
CV(1) comes to be = EV(1) AC(1) = 4 4 = 0.
SV(1) is = EV(1) PV(1)Period(2) = 4 4 = 0.
By the end of period 4:
Since task 1 is done , EV(1) comes to be = PV(1)Total = 8.
CV(1) = EV(1) AC(1) = 8 10 = -2.
SV(1) = EV(1) PV(1)Period(4) = 8 8 = 0.
By the end of period 6:
Since task 1 is Fully done, EV(1) = PV(1)Total = 8.
CV(1) = EV(1) AC(1) = 8 10 = -2.
SV(1) = EV(1) PV(1)Period(6) = 8 8 = 0.
Since task 2 is 1/4 complete, EV(2) = 25% of PV(2)Total = 0.25 * 40 = 10.
CV(2) comes to be = EV(2) AC(2) = 10 15 = -5.
SV(2) = EV(2) PV(2)Period(6) = 10 10 = 0.
AS task 3 is now 33% complete, EV(3) = 33% of PV(3)Total = 0.33 * 30 = 9.9.
CV(3) = EV(3) AC(3) = 9.9 12 = -2.1.
SV(3) = EV(3) PV(3)Period(6) = 9.9 10 = -0.1.

AS task 4 has not started yet, EV(4) = 0.

CV(4) = EV(4) AC(4) = 0 0 = 0.
SV(4) = EV(4) PV(4)Period(6) = 0 10 = -10.
BY the end of period 8:
Since task 1 is finished, EV(1) = PV(1)Total = 8.
SO eventually,
CV(1) = EV(1) AC(1) = 8 10 = -2.
SV(1) = EV(1) PV(1)Period(8) = 8 8 = 0.
AS task 2 is 30% complete, EV(2) = 30% of PV(2)Total = 0.3 * 40 = 12.
CV(2) comes to be = EV(2) AC(2) = 12 20 = -8.
SV(2) is = EV(2) PV(2)Period(8) = 12 20 = -8.
AS task 3 is 60% complete, EV(3) = 60% of PV(3)Total = 0.6 * 30 = 18.
CV(3) is = EV(3) AC(3) = 18 25 = -7.
SV(3) is = EV(3) PV(3)Period(8) = 18 25 = -7.
AS task 4 has not started yet, EV(4) = 0.
CV(4) is = EV(4) AC(4) = 0 0 = 0.
SV(4) is = EV(4) PV(4)Period(8) = 0 20 = -20.