Question

Using the Chapter 7 - User Guide to the PMBOK 4th edition - Project Cost Management course material as a guide and the Earned Value (EV) formulas described in the example problem, answer the questions below by showing your calculations and solutions for each project parameter. Our 6-month project example is described as follows:

Total Hours of Work:  1,100 Hours

Cost per Hour:  $185 per hour

Project cost at end of month three: $110,000

Estimated work complete at end of month three: 60%

Actual work complete at end month three: 50%

Month	Planned Complete %	Actual Complete %	Actual Cost ($)	Planned Value ($)	Earned Value ($)	CPI
1	20%	25%	$40,000
2	40%	40%	$70,000
3	60%	50%	$110,000
4
5
6

Complete the Table above (at Month 3) to answer the following questions:

1.   Calculate BAC - What will the total budgeted cost of the project be at completion?

2.   Calculate EV - How much earned work has actually been completed by the end of Month 3?

3.   Calculate CPI - How much of the actual cost incurred by the end of Month 3 was actually earned to this same point in time?

4.   Calculate EAC – Based on your review at 3 months, what will the total cost of the project be at completion?

5.   Calculate ETC - How much more money will it take to finish the project?

6.   Calculate VAR - How much over or under budget will the total project cost be?

7.   Calculate PV - How much work in dollars was expected to be finished at the end of Month 3?

8.   Calculate CV - How much more (or less) did the work completed at this point actually cost compared to what was originally planned?

9.   Calculate SV - How much more (or less) earned work, in dollars, has been accomplished at this point compared to what was originally planned?

10. Calculate SPI - How does the work completed (%) compare to that planned for the end of Month 3?

11. Calculate TCPI based on BAC- What level of performance must future project work meet in order to meet the original budget?

12. Calculate TCPI based on EAC - What level of performance must future project meet in order to meet the project’s revised budget based on this current performance review?

Answer 1

Month	Planned completion	Actual completion	Actual cost (AC)	Planned value (P V)	Earned value (EV)	CV	SV (Earned value - Planned value)	CPI (EV/AC)	SPI (EV/PV)
						(Earned value - Actual cost)
1	20%	24%	40000	22000	26400	-13600	4400	0.66	1.2
2	40%	40%	70000	44000	44000	-26000	0	0.63	1
3	60%	50%	110000	66000	55000	-55000	-11000	0.5	0.83

Project Total cost = 1,10,000

5.Planned value for each month is noted in Column "Planned value"

6.Earned value is noted in column "Earned VAlue"

7. CV is calculated in CV Column

8 - SV is calculated in SV column

9,10 = CPI and SPI calculated in column

2.