Review The Control Account Information And Determine The ✓ Solved

Review the Control Account information, and determine the

Review the Control Account information and determine the current status for each of the work packages listed. Calculate the SV, CV, SPI, CPI, EAC, VAC, and TCPI for each work package:

  • 1.1.1.1.1. Hull – Order Raw Steel
  • EV Tech: 50/50
  • PV or BCWS: $310 m
  • EV or BCWP: $155 m
  • AC or ACWP: $155 m
  • 1.1.1.1.2. Hull – Order Polymer Material
  • EV Tech: 50/50
  • PV or BCWS: $9 m
  • EV or BCWP: $4.5 m
  • AC or ACWP: $1 m
  • 1.2.1. Final Certified Bow Redesign
  • EV Tech: % complete
  • PV or BCWS: $4 m
  • EV or BCWP: $3.7 m
  • AC or ACWP: $4.1 m
  • 1.2.2.1 Systems Engineering Planning– PMB Development
  • EV Tech: 0/100
  • PV or BCWS: $1.2 m
  • EV or BCWP: $1.2 m
  • AC or ACWP: $1 m
  • 1.3.2. Project Management Planning – PMB development
  • EV Tech: 0/100
  • PV or BCWS: $0.5 m
  • EV or BCWP: $0.5 m
  • AC or ACWP: $0.3 m

Paper For Above Instructions

This paper aims to review the Control Account information and calculate the specified values for various work packages. Understanding how to interpret these metrics is crucial in project management and monitoring the effectiveness and efficiency of project execution.

To begin, let’s define the basic concepts involved in the calculations:

Earned Value (EV): This is the value of the work actually completed at a specific time. It is often called BCWP (Budgeted Cost of Work Performed).

Planned Value (PV): This is the budgeted cost of work that was planned to be completed at a certain point in time, sometimes referred to as BCWS (Budgeted Cost of Work Scheduled).

Actual Cost (AC): This is the actual cost incurred for the work completed by a specific time, also known as ACWP (Actual Cost of Work Performed).

Using these definitions, the following formulas evaluate performance:

  • Schedule Variance (SV): EV - PV
  • Cost Variance (CV): EV - AC
  • Schedule Performance Index (SPI): EV / PV
  • Cost Performance Index (CPI): EV / AC
  • Estimate at Completion (EAC): BAC / CPI (where BAC is Budget at Completion)
  • Variance at Completion (VAC): BAC - EAC
  • To-Complete Performance Index (TCPI): (BAC - EV) / (BAC - AC)

Now, we will proceed to compute these metrics for each work package.

1.1.1.1.1. Hull – Order Raw Steel

EV: $155 m

PV: $310 m

AC: $155 m

SV: EV - PV = $155 m - $310 m = -$155 m

CV: EV - AC = $155 m - $155 m = $0

SPI: EV / PV = $155 m / $310 m = 0.5

CPI: EV / AC = $155 m / $155 m = 1.0

The EAC can be computed if BAC is known; let's assume BAC = $310 m.

EAC: BAC / CPI = $310 m / 1.0 = $310 m

VAC: BAC - EAC = $310 m - $310 m = $0

TCPI: (BAC - EV) / (BAC - AC) = ($310 m - $155 m) / ($310 m - $155 m) = 1.0

1.1.1.1.2. Hull – Order Polymer Material

EV: $4.5 m

PV: $9 m

AC: $1 m

SV: EV - PV = $4.5 m - $9 m = -$4.5 m

CV: EV - AC = $4.5 m - $1 m = $3.5 m

SPI: EV / PV = $4.5 m / $9 m = 0.5

CPI: EV / AC = $4.5 m / $1 m = 4.5

EAC: BAC / CPI = $9 m / 4.5 = $2 m

VAC: $9 m - $2 m = $7 m

TCPI: ($9 m - $4.5 m) / ($9 m - $1 m) = 0.625

1.2.1. Final Certified Bow Redesign

EV: $3.7 m

PV: $4 m

AC: $4.1 m

SV: $3.7 m - $4 m = -$0.3 m

CV: $3.7 m - $4.1 m = -$0.4 m

SPI: $3.7 m / $4 m = 0.925

CPI: $3.7 m / $4.1 m = 0.902

EAC: $4 / 0.902 = $4.43 m

VAC: $4 - $4.43 = -$0.43 m

TCPI: ($4 - $3.7 m) / ($4 - $4.1 m) = -$3

1.2.2.1 Systems Engineering Planning– PMB Development

EV: $1.2 m

PV: $1.2 m

AC: $1 m

SV: $1.2 m - $1.2 m = $0

CV: $1.2 m - $1 m = $0.2 m

SPI: $1.2 m / $1.2 m = 1.0

CPI: $1.2 m / $1 m = 1.2

EAC: $1.2 m / 1.2 = $1 m

VAC: $1.2 - $1 = $0.2 m

TCPI: N/A since the task is complete.

1.3.2. Project Management Planning – PMB development

EV: $0.5 m

PV: $0.5 m

AC: $0.3 m

SV: $0.5 m - $0.5 m = $0

CV: $0.5 m - $0.3 m = $0.2 m

SPI: $0.5 m / $0.5 m = 1.0

CPI: $0.5 m / $0.3 m = 1.67

EAC: $0.5 m / 1.67 = $0.3 m

VAC: $0.5 - $0.3 = $0.2 m

TCPI: N/A since the task is complete.

The calculated values provide an overview of project performance. They demonstrate how much work has been accomplished, whether costs are within budget, and if timelines are being met. An understanding of these metrics allows project managers to adjust forecasts and ensure the project's success.

References

  • PMI (Project Management Institute). (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide). 6th Edition. Newtown Square, PA: PMI.
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