Assume that ABC Company has invested a budget of 36 million riyals for XY project and planned to complete in 12 months. In addition, assume that the company planned to spend the budget equally in each month. However, when the first two months has passed, the project manager has found out that the total of two million riyals spent. Based on the above scenario, answer the following: Suppose Rate of performance =0.25 a) What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project? b) How much will it actually cost the company to complete this project, and how long will it really take to complete it based on the performance to date? c) What do you think of the project performance? over/under the budget? behind /ahead the schedule? Justify your answer.
Assume that ABC Company has invested a budget of 36 million riyals for XY project and planned to complete in 12 months. In addition, assume that the company planned to spend the budget equally in each month. However, when the first two months has passed, the project manager has found out that the total of two million riyals spent. Based on the above scenario, answer the following: Suppose Rate of performance =0.25 a) What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project? b) How much will it actually cost the company to complete this project, and how long will it really take to complete it based on the performance to date? c) What do you think of the project performance? over/under the budget? behind /ahead the schedule? Justify your answer.
Operations Research : Applications and Algorithms
4th Edition
ISBN:9780534380588
Author:Wayne L. Winston
Publisher:Wayne L. Winston
Chapter8: Network Models
Section8.4: Cpm And Pert
Problem 5P
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Assume that ABC Company has invested a budget of 36 million riyals for XY project and planned to complete in 12 months. In addition, assume that the company planned to spend the budget equally in each month. However, when the first two months has passed, the project manager has found out that the total of two million riyals spent.
Based on the above scenario, answer the following:
Suppose Rate of performance =0.25
- a) What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?
- b) How much will it actually cost the company to complete this project, and how long will it really take to complete it based on the performance to date?
- c) What do you think of the project performance? over/under the budget? behind /ahead the schedule? Justify your answer.
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