Share
Explore BrainMass

Cost and schedule variance calculations

The data below describes a housing refurbishment project that a small business contractor worked on: Activity Duration Predecessors Task Budget
A 3 Days --- $4,920
B 6 Days --- $7,680
C 3 Days A $15,140
D 2 Days B $4,980
E 3 Days B $5,630
F 2 Days C, D $2,270

At the end of the 7th day, this is how the project was going:
Activity % Complete Actual Cost
A 100% $4,200
B 100% $8,740
C 100% $18,250
D 55% $2,600
E 10% $560
F 0% $0

(1) I need to know how to find the cost and schedule variance as well as the indexes for the tasks (A through F).
(2) I also need a brief synopsis of the project's current status.
Please show all steps used to figure this out (make no assumptions).

Solution Preview

1) Let us start with cost variance (CV), the formula for CV is BCWP-ACWP which translates to Budgeted Cost of Work Performed minus Actual Cost of Work Performed. So CV = BCWP-ACWP. So let us now use this formula to solve the CV for the assigned project. To get BCWP we multiply the budget by the actual completion percentage.
Solve for A = $4,920 - $4,200 = $720
B = $7680 - $ 8740 = $-1,060
C = $15,140 - $18,250 = $-3,110
D = ($4,980 x 55%) - $2,600 = $139
E = ($5,630 x 10%) - $ 560 = $ 3
F = ($2,270 x 0%) - $0 = $0
Next let us tackle the CPI or Cost Performance Index, the formula for CPI is BCWP/ACWP so CPI = BCWP รท ACWP.
Solve for A = $4,920/$4,200 = 1.17
B = $7680/$8740 = 0.87
C = $15,140/18,250 = 0.82
D = $2,739/$2,600 = 1.05
E = $563/$560 = 1.00
F = $0/$0 = 0
Let us now calculate the schedule variance ...

Solution Summary

The expert examines cost and schedule variance calculations.

$2.19