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A project to build a new bridge seems to be going very well since the project is well ahead of schedule and costs seem to be running very low. A major milestone has been reached where the first two activities have been totally completed and the third activity is 64 percent complete. The planners were expecting to be only 53 percent through the third activity at this time. The first activity involves prepping the site for the bridge. It was expected that this would cost $1,423,000 and it was done for only $1,303,000. The second activity was the pouring of concrete for the bridge. This was expected to cost $10,503,000 but was actually done for $9,003,000. The third and final activity is the actual construction of the bridge superstructure. This was expected to cost a total of $8,503,000. To date they have spent $5,003,000 on the superstructure. Calculate the schedule variance, schedule performance index, and cost performance index for the project to date. (Negative values should be indicated by a minus sign. Do not round your intermediate calculations or "variance" values. Round your "performance index" values to 3 decimal places.) Schedule variance Schedule performance index Cost performance index

A project to build a new bridge seems to be going very well since the project is well ahead of schedule and costs seem to be running very low. A major milestone has been reached where the first two activities have been totally completed and the third activity is 64 percent complete. The planners were expecting to be only 53 percent through the third activity at this time. The first activity involves prepping the site for the bridge. It was expected that this would cost $1,423,000 and it was done for only $1,303,000. The second activity was the pouring of concrete for the bridge. This was expected to cost $10,503,000 but was actually done for $9,003,000. The third and final activity is the actual construction of the bridge superstructure. This was expected to cost a total of $8,503,000. To date they have spent $5,003,000 on the superstructure. Calculate the schedule variance, schedule performance index, and cost performance index for the project to date. (Negative values should be indicated by a minus sign. Do not round your intermediate calculations or "variance" values. Round your "performance index" values to 3 decimal places.) Schedule variance Schedule performance index Cost performance index

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Problem 4-6 (Algo) A project to build a new bridge seems to be going very well since the project is well ahead of schedule and costs seem to be running very low. A major milestone has been reached where the first two activities have been totally completed and the third activity is 64 percent complete. The planners were expecting to be only 53 percent through the third activity at this time. The first activity involves prepping the site for the bridge. It was expected that this would cost $1,423,000 and it was done for only $1,303,000. The second activity was the pouring of concrete for the bridge. This was expected to cost $10,503,000 but was actually done for $9,003,000. The third and final activity is the actual construction of the bridge superstructure. This was expected to cost a total of $8,503,000. To date they have spent $5,003,000 on the superstructure. Calculate the schedule variance, schedule performance index, and cost performance index for the project to date. (Negative values should be indicated by a minus sign. Do not round your intermediate calculations or "variance" values. Round your "performance index" values to 3 decimal places.) Schedule variance Schedule performance index Cost performance index
Transcribed Image Text:Problem 4-6 (Algo) A project to build a new bridge seems to be going very well since the project is well ahead of schedule and costs seem to be running very low. A major milestone has been reached where the first two activities have been totally completed and the third activity is 64 percent complete. The planners were expecting to be only 53 percent through the third activity at this time. The first activity involves prepping the site for the bridge. It was expected that this would cost $1,423,000 and it was done for only $1,303,000. The second activity was the pouring of concrete for the bridge. This was expected to cost $10,503,000 but was actually done for $9,003,000. The third and final activity is the actual construction of the bridge superstructure. This was expected to cost a total of $8,503,000. To date they have spent $5,003,000 on the superstructure. Calculate the schedule variance, schedule performance index, and cost performance index for the project to date. (Negative values should be indicated by a minus sign. Do not round your intermediate calculations or "variance" values. Round your "performance index" values to 3 decimal places.) Schedule variance Schedule performance index Cost performance index
Expert Solution
FORMULAS

I have arranged the given data in the form of a table:

Actual progress 64%
Planned Progress 53%
Budget for 1st activity 1423000
Budget for 2nd activity 10503000
Budget for 3rd activity  8503000
Actual cost for 1st activity 1303000
Actual cost for 2nd activity 9003000
Actual cost for 3rd activity 5003000

Now, Formulas are:

(A) Planned Value = Budget of Three activities ×Planned Progress

Earned Value = Budget of Three activities ×Actual Progress.

Schedule Variance = Planned Value - Earned Value

(B) Schedule Performance Index =  Earned Value / Planned Value

(C) Actual Cost = Actual Cost of Three activities

Cost Performance Index = Earned Value / Actual Cost.

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