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mixas84 [53]
3 years ago
5

A project to build a new bridge seems to be going very well since the project is well ahead of schedule and costs seem to be run

ning very low. A major milestone has been reached where the first two activities have been totally completed and the third activity is 60% complete. The planners were expecting to be only53% through the third activity at this time. The first activity involves prepping the site for the bridge. It was expected that this would cost $1,414,000 and it was done for only $1,294,000. The second activity was the pouring of concrete for the bridge. This was expected to cost $10,494,000 but was actually done for $8,994,000. The third and final activity is the actual construction of the bridge superstructure. This was expected to cost a total of $8,494,000. To date, they have spent $4,994,000 on the superstructure. Calculate the schedule variance, schedule performance index, and cost performance index for the project to date. (Round your "performance index" values to 3 decimal places.)
Business
1 answer:
tresset_1 [31]3 years ago
3 0

Answer:

Schedule variance = $1,428,140

Schedule Performance Index (SPI) = 1.132

Cost Performance Index = 0.801

Explanation:

Planned Value = $1,414,000 + $10,494,000 + $8,494,000 * 53%

                        = $20,402,000 * 53%

                        = $10,813,060

Earned Value = $1,414,000 + $10,494,000 + $8,494,000 * 60%

                        = $20,402,000 * 60%

                        = $12,241,200

Schedule Variance = Earned value - Planned value

                                = $12,241,200 - $10,813,060

                                = $1,428,140

Schedule Performance Index (SPI)

                          = Earned value / Planned value

                          = $12,241,200 / $10,813,060

                          = 1.132

Actual Cost (AC)

                        = $1,294,000 + $8,994,000 + $4,994,000

                        = $15,282,000

Cost Performance Index (CPI)

                             = Earned value / Actual cost

                             = $12,241,200 / $15,282,000

                             = 0.801

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