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# Project Completion with Economic Value Added (EVA)

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Joe, the project manager of Highlander, Inc., has been executing a project. On July 30, 2013 the project was 60% complete and he needs help with the following measurements:

(See table in attachment)

a. What is the cost variance?
b. What is the schedule variance?
c. What is the cost performance index?
d. What is the schedule performance index?
e. What is the estimate at completion?
f. What is the estimate to complete?
g. What is the variance at completion?
h. What is the resource utilization efficiency?
i. What is the resource utilization index?
j. What is the percent complete?
k. What is the percent spent?
l. What is the status of the project?

Respond to questions a-l. You should have a total of 12 answers

#### Solution Preview

Activity Completion Date PV (\$M) EV (\$M) AC (\$M)
A January 30, 2013 8 8 13
B February 28, 2013 4 3 6
C March 30, 2013 6 8 4
D April 30, 2013 15 12 10
E May 30, 2013 20 20 25
F June 30, 2013 9 8 4
G July 30, 2013 20 14 21
H August 30, 2013 15 0 0
I September 30, 2013 25 0 0
TOTAL 122 73 83

a. Cost Variance (CV) = EV - AC = 73 - 83 = -10
b. Schedule Variance (SV) = ...

#### Solution Summary

The solution shows step-by-step computation of project completion status, variances and other parameters as per the theory of Economic Value Added (EVA) in operations management.

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