Project UMUC is to produce 300 widgets and is scheduled to take five weeks. Each unit is planned to cost $80. The project is severely cost constrained; the project budget does not include any contingency or management reserves. Performance data for the project at the end of week four is presented below:
240 total units were planned to be produced
270 units have actually been produced
The financial manager reported that the business had actually spent $23,000 on the project by the end of week four.
You calculate, PV, EV, and BAC as follows:
PV = 240 units X $80 per unit = $19,200
EV = 270 units X $80 per unit = $21,600
BAC = 300 units x $80 per unit = $24,000
Calculate cost variance (CV). Based on this information, is the project over or under budget? Explain.
Calculate schedule variance (SV). Based on this information, is the project ahead or behind schedule? Explain.
Calculate cost performance efficiency to three digits. Based on this information, is the project performing better or worse than planned? Explain.
Calculate schedule performance efficiency to three digits. Based on this information, is the project performing better or worse than planned? Explain.
What is the forecast of project cost at completion assuming remaining work will be performed according to plan? How much budget variance is expected at completion?
Assuming remaining work will be performed according to plan, what is the forecast of funding needed to complete the project (from this point forward)?
What cost performance efficiency would be required for the remainder of the project to complete the project within the original budget?
As the project financial manager, what recommendations would you make?