Using the concepts discussed in Chapter 7, complete the following problems:

Problem 1. A project in its 26^th week has an actual cost of $270,000. It was scheduled to have spent $261,000. For the work performed to date, the budgeted value is $272,000. What are the cost and schedule variances for the project? What are the SPI and CPI?

Problem 2. A project has just completed its 87^th item in the project plan. It was scheduled to have spent $168,000 at this point in the plan, but has actually spent only $156,000. The project manager estimates that the value of the work actually finished is nearly $162,000. What are the spending and schedule variances for the project? What are the SPI and CPI?

Problem 3. The following project is at the end of its 6^th week. Find the cost and schedule variances. Also find the CPI and SPI. Then find the critical ratio of the project using earned value calculations. Finally, calculate the ETC and EAC for the project.

Problem 4.  Solve the following Case:

Stoneworth Paving Company specializes in highway paving jobs for state of Virginia. When the State first awarded Stoneworth the contract, they stipulated a 1% penalty for each week Stoneworth was late on a completion date. Preston Flintrock, the project coordinator for Stoneworth, began to notice that the last two jobs were three weeks late, and the paving job that was due to be completed in the next two weeks was behind schedule. When Preston went in the field to investigate, he found the job to be understaffed, supplier delays, and a high work rejection/repaving needed. As a result, Preston decided to establish a better system of project control and present it to the boss.

Question 1: If you were Preston, what characteristics would you be looking for in a new control system? Explain

Question 2: Will a new control system be adequate for the problem? Explain