HOMEWORK 4, Agribusiness Project Management, AGBU 515, Summer 2017

All the problems must be neatly handwritten and stapled together. Sloppy homework assignments will be
penalized.
You MUST submit every homework assignment completed 100% to be eligible to take the upcoming exam.
All homework assignments MUST be done on your own. No collaboration is allowed. You can talk to the
instructor or the TA if you have questions.
Due: 18:25 pm, July 28
Late homework: no credit will be given; however, you still must submit it
Submit to: Teaching assistant
Total points possible: 100

Problem 1 (10 points)

a) Match the definitions in column 2, with the EVM term named in column 1, inserting your
answer in the space provided in column 3.

Answer
EVM Term Definition
(number)
1. SV A. How efficiently are the resources, both physical 4
(Schedule Variance) and human, being used in the performance of the work
activities
2. CV B. How far the project will be over, on, or under 7
(Cost Variance) budget, when the project completes, and by how
much.
3. SPI C. An estimate of how much the project will cost at 6
(Schedule completion, given the current circumstances which
Performance Index) may have caused the original forecast to be modified.
Based on project performance to date, this provides a
projection for the cost of the remaining work.
4. CPI D. How far the team is ahead or behind the schedule 1
(Cost Performance of work activities
Index)
5. ETC E. A forecast of the cost of the work activities and the 9
(Estimate to resources required for it, at the project end.
Complete)
6. EAC F. How far the team is over or under budget, or indeed 2
(Estimate at on budget.
Completion)
7. VAC G. How much more budget is required to complete the 5
(Variance at remaining work required.
Completion)
8. Earned Value H. The efficiency with which the PM must use 10
remaining project resources to achieve the project
 goal(s).
9. BAC I. A picture in time of the value of the work progress; 8
(Budget at an understanding of the work actually completed at the
Completion) time of measurement, expressed in terms of approved
budget assigned to the tasks or activities.
10. TCPI J. How efficiently the team is performing relative to 3
(To Complete the planned work at that time
Performance Index)

b) Match the defined meanings in column 2, with the EVM formula named in column 1, inserting your
answer in the space provided in column 3.
Answer
EVM Formula Defined Meaning
(number)
1. SV = EV PV A. Negative means over budget; zero means on 2
budget; positive means under budget
2. CV = EV AC B. >1 is good (project is under budget); 1 is also good 4
(on budget); <1 is bad (over budget)
3. SPI = EV / PV C. Negative means behind schedule; zero means on 1
schedule; positive means ahead of schedule
4. CPI = EV / AC D. >1 is good (project is ahead of schedule and you
are progressing at more than planned (greater than
100%)); 1 is also good (on schedule); <1 is bad 3
(behind schedule progressing at less than planned
(less than 100%))

Problem 2 (15 points)

You have been just appointed to manage an agriculture machinery repair center construction project
which is already 5 months on way. The former project manager was retired due to personal reason. The
overall budget of the project is $ 2 000 000 from which $100 000 was planned as the management
reserve for covering of unforeseen risks.

When going through all the progress reports previously given by the former project manager to the
Project Sponsor and stakeholders you realized that at the moment project has:

Planned value of $280000,

Earned value of $250000,
Actual costs amounting to $295000.

a) What are the implications for your project?

This project isover budget and also behind the schedule
b) How much it would cost in total to finish the project if everything goes like before?
BAC=total cost reserve
BAC=2000000-100000=1900000
CPI=EV/AC
CPI=250000/295000=0.85
EAC=BAC/CPI
EAC=1900000/0.85=2235294.11

c) What should you do about this situation?

We have to see where happened variance and also we will do it with PM plan and we will see what
we can correct
d) What is the best way to estimate the money additionally needed to complete the project?
ETC=EAC-AC
ETC=2235294.11-295000=1940294.11

Problem 3 (15 points)

You are the project manager for the annual International Project Management Day event, with three
primary components: marketing, website registration and event day coordination.
For marketing, there will be 500 flyers printed up at a cost $0.20 each.
It took two weeks for the flyers to be printed for last year event, so you estimate two weeks for the
printing of the brochures for this event.
Last year it took one week to design the on-line registration form and the cost to host the registration
website was $250. You estimate the same this year.
There will be four people used to coordinate the race. Each resource will be paid $10 per hour and they
will be working an estimated seven hours, based on the race last year.
Apply both analogous and parametric estimating methods and define the cost and duration of the three
primary components for which you are responsible. Notice where and what type of estimation did you
use.
Marketing:
Cost: 500*0.2=100(for brochures) (parametric estimating)
Duration: two weeks (analogous)

On-line registration:
Cost $250 (analogous)
Duration: one week(analogous)

Coordinate:
Cost: 4*10*7=$280 (parametric estimating)
Duration: 7 hours (analogous)

Problem 4 (30 points)

There is a project with the following planned data:

Activity ID Duration, day
A 2
B 1
C 4
D 3
E 2
Predecessor Daily Cost, $
- 100
A 200
A 200
B 300
C, D 100

After 5 days, the monitoring system provides the following information:

Activity A is completed
Activity B is completed
Activity C is 50% completed
ActivitiesD and E are 0% completed (not even started)
Money spent: $1000.

a) Draw the relevant network AON diagram in a rectangular node and Gantt chart for planned and
actual status of the project.
b) Define the planned budget for the whole project.
WHole budget=2*100+1*200+4*200+3*300+2*100=2300
c) Calculate PV, EV and AC for the first five days of the project.
PV=$1600 EV=$800 AC=$1000
d) Calculate and explain the values of parameters: CPI, SPI, EAC, ETC, VAC.
CPI=EV/AV=800/1000=0.8
SPI=EV/PV=800/1600=0.5
EAC=BAS/CPI=2300/0.8=2875
ETC=EAC-AC=2875-1000=1875
VAC=BAS-EAC=2300-2875= -575

e) Based on calculated parameters analyze the status of this project.

 Over budget

Problem 5 (30 points)

Subproject A Subproject Subproject C

Task ID Predec. Dur., d Task ID Predec. Dur., d Task ID Predec. Dur., d
A1 4 B1 2 C1 - 5
A2 A1 5 B2 B1 4 C2 C1 4
A3 A2 3 B3 B2 3 C3 C2 5
B4 B3 4 C4 C3 3
B5 B2, B4 3 C5 C3, C4 4
C6 C4, C5 3

a) You have to create a Master Project that will combine three subprojects: Subproject A,
Subproject B and Subproject C which have 3, 5 and 4 six sequential tasks, correspondingly. Durations
(Dur.) and predecessors (Predec.) of the tasks are presented in the Table below:
Make and submit screenshots of all three subprojects and the Master Project.

b) You have to create a Resource Pool that includes 10 work resources planned for your Master
Project.
Make and submit screenshot of the Resource Pool.

c) You have to assign resources to all Subprojects from the Resource Pool.
Make and submit the relevant screenshot of the Master Project, where all resources are distributed
among the Subproject tasks on your discretion.

d) In the Master Project make Finish Start type connections between A1 and B4, B3 and C4.
Make and submit the relevant screenshot of the Master Project with those connections.