You$run$a$small$software$company$that$has$been$contracted$to$provide$a$product.$$Given$all$the$...

Question

You$run$a$small$software$company$that$has$been$contracted$to$provide$a$product.$$Given$all$the$ information$below,$perform$an$earned$value$analysis$at$the$end$of$week$8. Calculate$the$following$values$for$week$8 Earned$Value Planned$Value Actual$Cost Cost$Variance Schedule$Variance Cost$Performance$Index Schedule$Performance$Index Estimate$at$Completion Estimated$Time$to$Complete Generate$a$graph$that$shows$the$Actual$Cost,$Earned$Value,$and$Planned$Value$for$weeks$1G8.$ Will$this$project$be$completed$on$time? Will$this$project$be$completed$within$the$budget? Project&Estimates Week&1: The$project$gets$started$on$time,$Joe$puts$in$4$hours$of$work$to$complete$the$initiation$phase Week&2: Mary$starts$the$project$specifications$but$is$held$up$by$another$project$halfway$through. Week&3: Mary$completes$the$second$half$of$the$project$specifications$in$6$hours. Chris$purchases$the$developer$machines$for$$4800$and$the$development$server$for$$6000,$it$takes$him$2$ hours$to$research$and$purchase$them. Week&4: Pete$and$Joe$complete$the$Design$Output,$doing$50%$of$the$work$each$in$a$total$of$8$hours. Week&5: Chris$spends$two$hours$trying$to$find$a$good$production$server. Joe$is$out$sick.$Pete$puts$10$hours$into$the$test$planning. Week&6: Joe$finishes$up$the$test$planning$in$8$hours. Mary$starts$on$the$code$and$puts$in$20$hours. Week&7: Mary$is$out$sick,$nothing$happens. Week&8: Chris$finally$find$a$deal$on$a$production$server$for$$10,000 Mary$is$75%$done$with$the$code$after$putting$in$another$6$hours. Joe$completes$15%$of$the$unit$testing$in$4$hours$time.

Riddhi · Accepted Answer

Earned Value
Earned Value is the value at the stage of completion at this stage. The value shall be the budgeted cost which was originally decided at each stage of completion of work.
Earned Value = % Completion Actual x Task Budget
In this case earned value shall be Budgeted hours required to complete the work for the % of work completed plus Budgeted Hardware Cost 
Earned Value = Hardware Cost + Manpower Cost
Earned Value = $25,000 + $2,092.685
Earned Value = $27,092.685 
	Budgeted Hours
	Joe
	Mary
	Chris
	Pete
	Total
	Week1
	3
	 
	 
	 
	3
	Week2
	 
	8
	 
	 
	8
	Week3
	 
	 
	2
	 
	2
	Week4
	 
	 
	 
	 
	0
	Week5
	5
	 
	 
	5
	10
	Week6
	14
	30
	 
	 
	44
	Week7
	 
	
	 
	 
	0
	Week8
	1.05
	
	 
	 
	1.05
	 
	 
	 
	 
	 
	 
	Hours
	23.05
	38
	2
	5
	68.05
	Hourly Rate
	27.5
	34
	44.28
	15.65
	 
	 
	 
	 
	 
	 
	 
	Total Cost of Hours
	633.875
	1292
	88.56
	78.25
	2092.685
	Budgeted Cost
	Cost
	Development Cost
	$5,000 
	Development Server
	$8,000 
	Production Server
	$12,000 
	 
	 
	Total cost
	$25,000 
Planned Value
Planned Value is the value that has been planned for at the current stage of completion. It is the planned or scheduled time or value that should have been estimated which is equivalent to the budget assigned to the project. 
Planned Value = % Complete planned x task budget
Planned value shall be the cost of completing the work till the stage of unit test and completing writing codes and the manhours for the same are as below plus hardware Cost
Planned Value = Budgeted Manpower Cost + Hardware Cost
Planned Value = $2,596.31 + $25,000
Planned Value = $27,596.31
	Budgeted Hours
	Joe
	Mary
	Chris
	Pete
	Total
	Week1
	3
	 
	 
	 
	3
	Week2
	 
	8
	 
	 
	8
	Week3
	 
	 
	2
	 
	2
	Week4
	 
	 
	 
	 
	0
	Week5
	5
	 
	 
	5
	10
	Week6
	14
	40
	 
	 
	54
	Week7
	 
	
	 
	 
	0
	Week8
	7
	
	 
	 
	7
	 
	 
	 
	 
	 
	 
	Hours
	29
	48
	2
	5
	84
	Hourly Rate
	27.5
	34
	44.28
	15.65
	 
	 
	 
	 
	 
	 
	 
	Total Cost of Hours
	797.5
	1632
	88.56
	78.25
	2596.

You$run$a$small$software$company$that$has$been$contracted$to$provide$a$product.$$Given$all$the$ information$below,$perform$an$earned$value$analysis$at$the$end$of$week$8....

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