Project Performance Exercise

Project Performance Exercise
Pierre is the project manager of a Human Resources project that is to develop the
content for and the implementation of an organisation-wide project management
competency system.
Time planning was carried out using the Milestone Objective Chart approach as
reflected below. The project budget has been apportioned to each milestone and it
is now at the end of month three. The project manager and team have assessed the
milestone completion status as follows:

Milestone A = 100% Milestone D = 20%
Milestone B = 70% Milestone E = 70%
Milestone C = 100%

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The organisation’s financial system shows that the cost (operational and staff costs)
to date is R20,000. To this amount Pierre adds on R5,000 committed costs that he
manages in a separate project spreadsheet.
The Milestone Objective Chart for the project is shown below.
Please note that you do not have to send in your calculations however, it is
impossible to complete the tables below if you do not do them.
1 2 3 4 5
Time in
months

R7000
C
F
R3000

A
B
D E
G
R5000
R2000
R4000
R5000
R10000
0
Do the following:
a) Determine the status of the project as at the end of month three and complete
the table below. (Hint: Calculate the PV and EV, the AC is given). (6)

Element Amount
PV
EV
AC

b) Forecast the cost and time at completion using the methods described in the
Project Manager Reference Manual Chapter 7: Earned Value Reporting. You
can use any of the two formulas give for EAC. (4)

Forecast Amount/Time
EAC
ETAC

c) From the information developed above, comment on the current status and
forecasted position of the project. (5)
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Project Performance Exercise
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