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(a)Considering the S-curves (showing cumulative cost)and the Gantt
charts below,say as
much as you can about the status of Project A ,Project B ,and Project
C .[9marks ]
•Project A is now on schedule (1 mark)and
on budget (1 mark).There was an
initial overspend,but this has been cancelled out.(1 mark)
•Project B is on budget (1 mark),but behind schedule (1 mark).The
problem with the schedule occurred in one of the early tasks,and as
not been recovered.(1 mark).There was a small initial underspend.(1
mark).
•Project C was initially behind schedule (1 mark),but may have
been crashed (1 mark)subsequently,with a eavy overspend (1 mark)and
a current status that
puts it well ahead of schedule (1 mark).
In each case,up to three marks for a good explanation [9 marks ]
(b)Why is it important to examine cost and schedule variances
concurrently?[2 marks ]
It is important to
examine cost and schedule variances concurrently because a consideration
of just one does not tell you whether a variance represents a problem
or not;we cannot interpret the results in isolation;we do not know,for
example, whether an overspend is good or bad.
two marks for a clear explanation,one mark for a reasonable explanation,no
marks for a poor explanation
[2 marks ]
(c)Explain what is meant by a positive cost variance in
(i)the graphical approach used above;[2 marks ]
(ii)the earned value approach to measurement.[2 marks ]
A
positive cost variance in
(i)the graphical approach:
the actual cost is less than the planned cost
one mark for knowing that the actual cost and the planned cost are
the two quantities to be compared,one mark for knowing that the actual
cost is less than the planned cost
[2 marks ]
(ii)the earned value approach:
the actual cost is less than the earned value:the budgeted cost of
work
performed. two marks for knowing that the actual cost and the earned
value are the two quantities to be compared,even if the positive part
is omitted;one mark for comparing the planned cost with the earned
value (schedule variance)instead:
the terms BCWP,BCWS,ACWP can also be used,for the same marks
[2 marks ]
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