You and your team are continuing your work on the Global Treps Project

You and your team are continuing your work on the Global Treps Project. Your project sponsor, Dr. K. has asked you to refine the existing cost estimate for the project so you can evaluate supplier bids and have a solid cost baseline for evaluating project performance. Recall that your schedule and cost goals are to complete the project in six months for under $120,000. You planned to use up to $50,000 total to pay yourself and your team members, and your initial estimates were $30,000 for travel expenses, $20,000 for hardware and software, and $20,000 for organizing four events, including consultants, legal/business fees, etc.

3. Assume that you have completed three months of the project. The BAC was $120,000 for this six-month project. You can also make the following assumptions:

PV = $60,000

EV = $55,000

AC = $50,000

a. What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?

b. How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget?

c. Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned?

d. Use the SPI to estimate how long it will take to finish this project.

e. Sketch an earned value chart using the information from your answers to parts a through d. Use Figure 7-5 as a guide.