Exam date: Saturday 13th June 2009
These should be the most important sections to read:
- NPV, ROI, payback
- WBS, Weighted scoring model
- For WBS must at least three levels
- Check example of building a house
- EVM
- Textbook pp 285-291
- Tutorial 12 (Chapter7revised) page1 q1
- AOA
- Tutorial 8 page 2
- Text book pp 223-224, 255(q2)
- Project time management
- Critical path is the longest path
Topics
EVM Formulas
- EV = PV to date * RP
- CV = EV - AC
- SV = EV - PV
- CPI = EV/AC
- SPI = EV/PV
- EAC = BAC/CPI
- ETC= OTE/SPI
EV - Earned Value
PV - Planned Value
RP - Rate of Performance
CV- Cost Variance
AC- Actual cost
SV- Schedule Variance
CPI- Cost Performance Index
SPI- Schedule Performance Index
EAC- Estimate at Completion
BAC-Budget at Completion
ETC-Estimated Time to Complete
OTE-Original Time Estimate
Analyzing
Important factors in project are cost and time
- CV represents the cost performance
- SV represents the time performance
- If they are positive, they are ahead of schedule/under budget if negative they are behind schedule/ over budget
- CPI represents the cost performance as an index/performance. It verifies the CV
- SPI represents the time performance as an index/performance. It verifies the SV
- Over 100% is good ( they are ahead of schedule/under budget ) 100% is neutral and below 100% is bad (behind schedule/ over budget)
- If EAC is higher than BAC then the project is performing worse than planned because the new estimate to complete the project is x more than planned.
- You get OTE from the question, where they mention how long the project was intended to take
- If ETC is higher than OTE then the project is performing worse than planned because the project is projected to take x months longer than planned.
