1. St. Dismas case study – part 5 on page 267, answer the questions (4 points)
1. What do you think the construction project manager should have done when the Director of Security stopped attending the project meetings?
Tracked him down and explained that absence was not an option. Elevated it to Fred if it continued for another week. Frank has to figure out how to get coverage – that is why he is the director of security
2. Do you think it is an effective communications tool to send the construction project meeting minutes to the ALF steering team and the President? Support your answer. It is necessary, but only effective if people react to it – Kyle should have realized long ago, that that was not the case and ...view middle of the document...
We can afford to wait until May 4.
5. What information does Fred need to make a decision about building a hair salon?
The potential income, what it will cost to change the plans to accommodate it and how it will affect the schedule.
2. Do problems 25, 26, and 27 on pages 265-66. (2 point each)
25. A project in its 26th week has an actual cost of $270,000. It was scheduled to have spent $261,000. For the work performed to date, the budgeted value is $272,000. What are the cost and sched¬ule variances for the project? What are the SPI and CPI?
AC=270,000; EV = 272,000; PV = 261,000
Cost variance = 272,000 – 270,000 = 2,000
Schedule variance = 272,000 – 261,000 = 11,000
CPI = 272,000/270,000 = 1.01
SPI = 272,000/261,000 = 1.04
26. A project has just completed the 87th item in its action plan. It was scheduled to have spent $168,000 at this point in the plan, but has actually spent only $156,000. The foreman estimates that the value of the work actually finished is about $162,000. What are the spending and schedule variances for the project? What are the SPI and CPI?
AC=156,000; EV = 162,000; PV = 168,000
Cost variance = 162,000 – 156,000 = 6,000
Schedule variance = 162,000 – 168,000 = - 6,000
CPI = 162,000/156,000 = 1.04
SPI = 162,000/168,000 = 0.96
27. The following project is at the end of its sixth week. Find the cost and schedule variances. Also find the CPI and SPI. Then find the critical ratio of the project using earned value calculations. Finally, calculate the ETC and EAC for the project.
Activity Predecessors Duration(wks) Budget($) Actual Cost ($) % Complete
a 2 300 400 100
b 3 200 180 100
c a 2 250 300 100
d a 5 600 400 20
e b,c 4 400 200 20