Project2- Solution for D

Time: 10 Minutes
The ideal values for CV and SV should be zero. If the value of CV is negative, it indicates that we are over
budget. If CV is positive, it means we are under budget. Similarly if SV is negative, that means we are
behind the schedule. If it is positive, we are ahead of the schedule.

The ideal values for CPI and SPI should be one. If CPI is less than one, then we are over budget. However,
if it is greater than one, it indicates that we are under budget. The same rule holds true for SPI. We are
behind the schedule if SPI is less than one and vice versa. The ideal value for EAC should be zero.

The ideal value for VAC should be zero. If it is negative, then we are deficit and if it is positive, then we
achieve a surplus.

From this project we know CV is zero and CPI is 1. Thus we are at par in terms of budget. But SV is
negative and SPI is less than 1, which indicates that we are behind the schedule. To be precise, we have
only completed 92% of the originally planned work and this has incurred us an additional $100.

Solution: We need to bring the project on track. How can we do it? Use the compression technique:
crashing or fast tracking. Crashing adds to the cost and fast tracking impacts the quality. Since we are at
par in cost, we can go for crashing. Before selecting the crashing option, see if any activities can be
carried out in parallel which can be termed as fast tracking. This of course increases the risk.