Assignment:
Question 1. Give examples of when you would prepare rough order of magnitude (ROM), budgetary, and definitive cost estimates for a project providing 100 new laptops for students to borrow on campus. Use the following techniques for creating a cost estimate for the laptop project:
a) analogous,
b) parametric, and
c) bottom-up.
Question 2. Assume you have completed three months of the project. The BAC was $200 000 for this six month project. Also assume the following:
PV = $120,000
EV = $100,000
AC = $90,000
a) What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?
b) How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget?
c) Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned?