Calculate the cost budget for the project below with a contingency reserve of 20% is applied to the cost estimate and 4% management reserve is applied to the cost baseline.                               Control Account                             Cost /$ Project Management 1,000,000                            Design 4,000,000                            Execution 10,200,000                             Certification 600,000                             Marketing 4,500,000                             Launch  320,000     You have a budget at completion of $2500. You had planned to have $2200 worth of work accomplished by now. However, you have just found out that you are only 60% complete with the task. What is your SV?     A project was budgeted at $1,000,000. Meanwhile, the project is executed, and the following current figures have been assessed:   PV: $500,000   EV: $450, 000   AC: $550, 000   Assuming that the cost variance was caused by one-time cost drivers, which are no more effective, what estimate at completion (EAC) can you derive from these figures?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Calculate the cost budget for the project below with a contingency reserve of 20% is applied to the cost estimate and 4% management reserve is applied to the cost baseline.

 

 

                          Control Account

                            Cost /$

Project Management

1,000,000

                           Design

4,000,000

                           Execution

10,200,000

                            Certification

600,000

                            Marketing

4,500,000

                            Launch 

320,000

 

 

  1. You have a budget at completion of $2500. You had planned to have $2200 worth of work accomplished by now. However, you have just found out that you are only 60% complete with the task. What is your SV?  

 

  1. A project was budgeted at $1,000,000. Meanwhile, the project is executed, and the following current figures have been assessed:

 

PV: $500,000

 

EV: $450, 000

 

AC: $550, 000

 

Assuming that the cost variance was caused by one-time cost drivers, which are no more effective, what estimate at completion (EAC) can you derive from these figures?                                                                                         ]

 

  1. Based on the values from part C of this question you are required to estimate the cost and projected time of completing this project. Find the CPI and SPI

 

 

 

 

QUESTION 2. 

Milton Construction Ltd has been awarded a lucrative contract of some $J10B by the National Works Agency (NWA) to rehabilitate a section of the railway connecting Kingston to Montego Bay.  Some locations of the project area have been prone to violence and extortion activities in the past; however, the Jamaica Defence Force (JDF) has been assigned to secure the work area for the entirety of the project.

 

  1. Using only the only the information given in the case identify two (2) threats and one (1) opportunity for the project.

 

b.) Alvin Harris, a project manager of the NWA has been advised by the project
consultant to change a particular route of the railway in order to ensure a faster and
more reliable operation. He instructs Carla Porter, Project Risk Manager of Milton

            Construction Ltd to change the route. Carla has to now decide how to execute this
           instruction whether using her existing project staff, subcontracting the work or hiring
           additional staff. Using EMV calculations, what option should she choose based on the
           information shown below?                                                              

 

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