Topic 5a: EVM Cost and Schedule Variances and Performance Indices
Suppose you have a project consisting of three activities. Midway through the project you collect the following information:
Activity |
PV |
EV |
AC |
1 |
30 |
40 |
35 |
2 |
20 |
15 |
15 |
3 |
10 |
10 |
15 |
What is the project-level Schedule Variance (SV) and Cost Variance (CV)? What is the project-level Schedule Performance Index (SPI) and Cost Performance Index (CPI)?
Under what conditions would a positive variance and a performance index less than 1.0 occur simultaneously?
Topic 5b: Corrective Action (MANDATORY TOPIC)
Describe any performance “thresholds” used by your organization to signal when corrective action is required to get a project back on track. If no “thresholds” are used, describe how your organization determines when to apply corrective action. In this context, use the PMI definition of corrective action – “an intentional activity that realigns the performance of the project work with the project management plan”.
Option: If you work in an agile environment, describe when, in the process, corrective action is identified and how the effects of corrective action are assessed.
Topic 5c: Forecasting Estimate at Completion (EAC)
The PMBOK talks about the PM’s “official” Estimate at Completion (EAC), which is determined by performing a detailed bottom-up estimate of the remaining work and adding costs incurred to-date. In the reading this week, several statistical methods of forecasting EAC were discussed. What assumptions are associated with each statistical method?