Monitoring and controlling exercises
ELE3709 Project Management
Task 1
You are given the following information: An organization is starting an IT-project which is planned to
cost 10 million NOK and completed within 12 months.
a) After 4 months, actual cost (AC) is 2,7 million, while the budget shows that planned cost (PC) is 3
million NOK. The project manager reports to the client that the project’s status is good, because
the project has used less money than planned. Do you agree with the project manager?
b) Two months later the actual cost (AC) is 4,7 million NOK, planned cost is 5 million, while earned
value (EV) is 4,5 million. How will you describe the project’s situation? Draw S-curves to illustrate
the project’s development.
c) Based on the information in b) calculate the project’s cost performance index (CPI) and estimated
cost at completion (ECAC).
Task 2
After a period the following information was reported from the project manager to the client.
-Planned completion: 80%
-Actual completion: 88%
-Planned cost (PC): 8 million kr.
-Actual cost (AC): 8 million kr.
-Total budget (BAC): 10 million kr.
a) Calculate cost variation (CV), budget variation (BV) and schedule variation (SV).
b) Discuss the status of the project.
c) Calculate the project’s cost performance index (CPI) and estimated cost at completion (ECAC).
Task 3
A project manager is developing a following-up and control routine for his project.
a) Discuss what factors of the project that should be followed-up and controlled.
b) When applying this following-up and control routine, discuss how often these control factors
should be followed up and status reported.
