Week-8: Earned Value Concepts & PERT

Question #1 to 5: The table 1 below shows a set of activities for construction a compound wall. The various
attributes of the activities details of the project network are given below in table. 1. The values in columns D to
I based on monitoring values for the 3rd, 6th and 9th week of the project.
Table 1

Activity A B C D E F G H I
Excavate 1 3 30000 60 12000 100 25000 100 25000
PCC 2 3 6000 40 3500 100 8500 100 8500
Foundation 3 4 24000 20 6000 80 22000 100 25000
Columns 4 4 12000 0 0 55 10000 100 15000
Plinth beams 5 6 18000 0 0 30 8000 100 17500
Brickwork 5 9 20700 0 0 0 0 80 17000

A = Activity start at (beginning of week)

B= Duration of activity (Week)
C = Total cost (Rs.)
D, F, H = % complete at the end of Week 3, 6 and 9.
E, G, I = Actual Expenditure at the end of Week 3, 6 and 9.
1. What is the BCWS at the end of 3rd, 6th and 9th week?
a. 40000,79600,98500
b. 39500,79600,71000
c. 40000,80500,100500
d. 42100,80500,76000
W#1 W#2 W#3 W#4 W#5 W#6 W#7 W#8 W#9 W#10 W#11 W#12 W#13 WK 3 total Wk 6 total Wk 9 total
Excavate 10000 10000 10000 30000 30000 30000
PCC 2000 2000 2000 4000 6000 6000
Foundation 6000 6000 6000 6000 6000 24000 24000
Coulmns 3000 3000 3000 3000 0 9000 12000
Plinth beams 3000 3000 3000 3000 3000 3000 0 6000 15000
Brickwork 2300 2300 2300 2300 2300 2300 2300 2300 2300 0 4600 11500
BCWS 40000 79600 98500

2. Find the values for planned % complete of the project at 3rd, 6th and 9th week?.
a. 33.16%, 89.11%, 96.77%
b. 28.72%, 65.56%, 87.35%
c. 36.13%, 71.91%, 88.98%
d. None of the above
W#1 W#2 W#3 W#4 W#5 W#6 W#7 W#8 W#9 W#10 W#11 W#12 W#13 WK 3 total Wk 6 total Wk 9 total
Excavate 10000 10000 10000 30000 30000 30000
PCC 2000 2000 2000 4000 6000 6000
Foundation 6000 6000 6000 6000 6000 24000 24000
Coulmns 3000 3000 3000 3000 0 9000 12000
Plinth beams 3000 3000 3000 3000 3000 3000 0 6000 15000
Brickwork 2300 2300 2300 2300 2300 2300 2300 2300 2300 0 4600 11500
Planned %
complete
(PPC) 36.13% 71.91% 88.98%
 PPC @ 3rd Week = BCWS/Total Cost = 40000/110700 = 36.13%. Similarly for 6th and 9th week.

3. What is the actual % complete of the project at 3rd, 6th and 9th week?.
a. 15.51%, 56.38%, 96.74%
b. 15.51%, 54.38%, 95.74%
c. 18.51%, 56.38%, 95.74%
d. None of the above

W#1 W#2 W#3 W#4 W#5 W#6 W#7 W#8 W#9 W#10 W#11 W#12 W#13 WK 3 total Wk 6 total Wk 9 total
Excavate 10000 10000 10000 30000 30000 30000
PCC 2000 2000 2000 4000 6000 6000
Foundation 6000 6000 6000 6000 6000 24000 24000
Coulmns 3000 3000 3000 3000 0 9000 12000
Plinth beams 3000 3000 3000 3000 3000 3000 0 6000 15000
Brickwork 2300 2300 2300 2300 2300 2300 2300 2300 2300 0 4600 11500
Actual %
complete
(APC) 22.76% 60.70% 96.26%

PPC @ 3rd Week = BCWP/Total Cost = 25200/110700 = 22.76%. Similarly for 6th and 9th week.

4. What is the time performance (SPI) of the project at 3rd, 6th and 9th week?.
a. Behind schedule, Behind Schedule, Behind of Schedule
b. Behind schedule, Behind of Schedule, Ahead of Schedule
c. Ahead of schedule, Behind Schedule, Ahead of Schedule
d. Ahead of schedule, Behind Schedule, Behind Schedule
Time performance
Wk 3 Wk 6 Wk 9
SPI 0.63 0.84 1.08
Status Behind schedule Behind schedule Ahead of schedule

SPI @ 3rd week = BCWP/BCWS = 25200/ 40000 = 0.63. Similarly for 6th and 9th week.

5. What is the cost performance of the project (CPI) at 3rd, 6th and 9th week?.
a. Over the budget, Over the budget, On budget
b. Under the budget, Over the budget, Over the budget
c. Over the budget, Under the budget, Over the budget
d. Over the budget, Over the budget, Under the budget
Cost performance
Wk 3 Wk 6 Wk 9
CPI 1.17 0.91 0.99
Status Under budget Over budget Over Budget
CPI @ 3rd week = BCWP/ACWP = 25200/ 21500 = 1.17. Similarly for 6th and 9th week.

6. The program evaluation and review technique (PERT) method of scheduling differs from the critical path
method (CPM) because the PERT method:
a) models the uncertainty in activity relationships in computing the project duration.
b) models the uncertainty in activity durations in computing the project duration.
c) models the uncertainty in activity durations and relationships in computing the project duration.
d) models the uncertainty in resource allocation in computing the project duration

7. How does the cost performance indicator (CPI) help in monitoring a project?
i. It helps to identify whether the project is ahead/behind schedule
ii. It helps to forecast how much money will be required to complete the project
iii. It helps to optimize the resources allocated for each activity
iv. It helps to assess the quality of the work performed
(Refer slide time 02:57 lec 50 )

8. Which of the assumptions of PERT are true?

i. It considers the activity durations as a beta distribution
ii. If there are two or more critical paths, then the path with the lower variance would be deemed critical
iii. The variance of the project is the sum of individual critical activity variances
iv. The standard deviation of the activity distribution equals 1/6th of the activity duration range.

a) i, iii
b) ii, iii, iv
c) i, iii, iv
d) All of the above

Question #9 to 15: The details of the project network are given below in table. 2.
Table 2

Optimistic Most Likely Pessimistic

Activity Predecessors
(days) (days) (days)
A - 3 5 9
B A 6 8 13
C A,B 4 6 8
D C 1 2 4
E C,D 8 10 17

(Please use 2 decimal places of z value while reading from the standard normal distribution table for
calculations), (4 decimal place values of the area under the curve when reading from the standard
normal distribution table for calculations)
(All final answers should be rounded to 2 decimal places)
 Optimistic Most Likely Pessimistic Expected Standard
Activity Predecessors Variance
(days) (days) (days) Duration (Te) Deviation
A - 3 5 9 5.33 1.00 1.00
B A 6 8 13 8.50 1.17 1.36
C A,B 4 6 8 6.00 0.67 0.44
D C 1 2 4 2.17 0.50 0.25
E C,D 8 10 17 10.83 1.50 2.25
22.00 32.83
E
10.83

13.83 19.83
0 5.33 C
A 6.00
5.33
19.83 22.00
D
5.33 13.83 2.17
B
8.50

9. For the above list of activities, the critical path using PERT technique is :
a) ABCE b) ABCDE
c) ACDE d) ACE

10. The total duration of the project is :

a) 32.83 days b) 30.67 days
c) 22.17 days c) 24.33 days

11. The standard deviation for the project is:

a) 1.99 days b) 3.50 days
c) 2.30 days d) 1.92 days
Variance S.D
Paths ABCDE 32.83 Critical 5.31 2.30
ABCE 30.67
ACDE 24.33
ACE 22.17
SD = SQRT (Variance)
12. What is the probability that the project can be completed in 29 days?
a) 5.86% b) 94.1%
b) 95.15% d) 4.75%
 what is the probability that the project can be completed in 29 days
z=Ts-Te/S.De
z= -1.67 <0
0.0475
ANS 4.75 %
Ts= 29, Te= 32.83, S.De = 2.30

13. What is the probability that the project can be completed in 34 days?
a) 69.50% b) 95.66%
c) 10.17% d) 55.25%
what is the probability that the project can be completed in 34 days
z=Ts-Te/S.De
z= 0.51 <0
0.695
ANS 69.5 %
Ts= 34, Te= 32.83, S.De = 2.30

14. What is the probability that the project can be completed between 29 to 34 days?
a) 27.30% b)64.75%
c) 46.90% d) 89.50%
What is the probability that the project can be completed between 29 to 34 days?
64.75 %

= 69.50% - 4.75% = 64.75%

15. What is the duration by which the project will be complete with a certainty on 0.85?
a) 37.53 days b) 30.66 days
c) 39.93 days d) 35.22 days
What is the duration by which the project will be complete with a certainty on 0.85?
Ts=S.De*Z + Te
S.De= 2.30

Ts= 35.226 days

z= 1.04, Te= 32.83, S.De = 2.30