Question

your project status end of 10th day.Discuss the status of this project in terms of schedule and budget using EVM.What is your estimate budget at completion if your performance continuous as is planned?Based on the current performance update the expected completion time,and how efficiently must we work from on to complete the project within budget and schedule?

Answer 1

Solution:

BC = Budgeted cost for activity

PV = Planned Value at the end of period t

EV = Earned value at the end of period t or amount of money budgeted for the work that has been performed till date. (% complete x BC)

AC = Actual Cost

CV = Cost variance = EV – AC

SV = Schedule Variance = EV – PV

Earned value analysis at the end of day 10

Activity	Budgeted Cost	Expected Complete	Planned Value (PV) till 4 week	% complete till 4 week	EV till 4 week (% complete x BC)	Actual Cost (AC)	CV = EV - AC	SV = EV - PV
Startup	100,000	100%	1*100 =100,000	100%	1*100 = 100,000	105,000	-5,000	0
Construction	325,000	85.71%	0.8571*325000 = 278,558	90%	0.6*250 = 292,500	280,000	12,500	13,942
Finishing	50,000	16.67%	0.1667*50,000 = 8,335	25%	0.5*450 = 12,500	2,500	10,000	4,165
Total			386,893		405,000	387,500	17,500	18,107

CV = Cost variance = EV – AC = 405,000 – 387,500 = 17,500

SV = Schedule Variance = EV – PV = 405,000 - 386,893 = 18,107

Cost performance Index = CPI = EV/AC = 405,000/387,500 = 1.0452

Schedule Performance Index = SPI = EV/PV = 405,000/386,893 = 1.0468

b. The CPI and SPI both are greater than 1, thus, the project is ahead of schedule and under budget

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