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Question:
(a) Earned Value Management is a systematic approach to the integration and measurement of cost, schedule, and technical accomplishments in a project. List the benefits associated with this method.
(b) PK Motors Ltd embarked on a pilot project to produce 2000 units of a new model vehicle. The total cost of production is estimated at $27m and the project should be completed in 30 weeks. The rate of project progress is expected to be uniform and linear. At the end of week 18, the actual cost of work performed (ACWP) amounted to $17.1m and the number of cars produced was 600 units. As a project manager, you are requested to report the project status. Your answer should focus on the following:
(i) A graphical presentation of the project status(ii) Cost Variance (CV) (iii) Schedule Variance (SV) (iv) Cost Performance Index (CPI) (v) Schedule Performance Index (SPI) (vi) Estimate To Complete (ETC) (vii) Estimate At Completion (EAC) (viii) Estimated time to complete
Consider the results of the Earned Value Analysis and briefly state whether the project is ahead or behind schedule and whether it is over or under budget.
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