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# QUESTION 1 You are a technology manager who was requested to perform cost

management for an urgent and important technology update project for the Research and
Development (R&D) department. By exploring the historical data on similar projects and
by getting expert feedback, you created the following schedule and cost estimates for this
project.

Activi
ty
A
B
C
D
E
F

Predecessors
A
A,B
D,C
D,E

Estimated
Duration (Days)
3
2
4
5
4
2

Estimated
Cost (\$)
2000
1000
5000
10000
6000
1000

Question 1. Draw a Gantt chart neatly on a paper, scan and paste it to your
assignment file. You can take a clear picture of it and paste it as well. (10 points)
Question 2. What is the estimated minimum duration of the project by considering
this Gantt chart? (10 points)
PART 2 (After the project started)
The project started and your immediate supervisor asked for a field report on day 10. The
field report you submitted on day 10 is given below.

Activi
ty
A
B
C
D
E
F

## Field Report at Day 10

Actual
Completion %
Cost Incurred
100
2400
100
1200
100
4000
80
4000
25
4000
0
0

Question 3. Calculate the BCWP, BCWS, CPI, SPI, CV, and SV for the field report
day 10. Show your calculations, and summarize the results on a table. (20 points)

## Understanding Gantt charts,

Learning the most common terminology used for Earned value analysis; BCWP
(earned value), BCWS (planned value), and AC (actual cost),

## Understanding how to interpret an earned value graph.

Lecture
After the cost estimating is completed, the next step is cost budgeting, and cost control as
the project progresses. In these latter stages of cost management, Earned Value Analysis is
a significant tool that is used by project managers.
In order to understand the earned value analysis, it is important to know Gantt Charts.
Gantt chart, also called a bar chart, is a scheduling tool that help us visualize the schedule

Let's first understand why and how to draw a Gantt chart by watching the following
short video. Gantt Charts

Now that you know the Gantt chart concept, let's watch this video which illustrates
the terminology of earned value analysis. Terminology of Earned Value Analysis

Keep in mind that BCWP is Earned Value (EV), and BCWS is planned value (PV). The project
management institute decided to use the terms EV and PV rather than BCWP and BCWS,
however, the latter are still the most common used terms. That is why in these videos BCWP
and BCWS are used. As a technology manager you should clearly know that BCWP is EV,
and BCWS is PV.

The next step is focusing on cost performance measures; CPI and cost variance
(CV). Cost Performance Index and Cost Variance

The next step is focusing on schedule performance of the project by using SPI and
schedule variance (SV). Schedule Performance Index and Schedule Variance

Now let's watch this video that gives a comprehensive example for earned value
analysis. Earned Value Analysis

The next step is interpreting an earned value graph. Interpreting an Earned Value
Graph

Next week, we will continue with how to predict the future of the project by using the
earned value analysis.

The next step is fpocuindh on the cost perdormance anf the thing to do it to that, no
referencing is required o9f4 the assignmeny.