Question

An earned value analysis (EVA) is performed after Month 10 on a 15-month commercial building project with an estimated final cost (BAC) of $8.45 million. The values at the data date are as follows: EV = $5.25M, AC = $4.95M, and PV = $6.50M.

What are the cost and schedule variances and indices?

What is the projected final cost (EAC)?

All things being equal, what will be the final duration (FD)?

It is acceptable to use SPI to estimate the FD.

What can be concluded from the EVA at this point?

PLEASE SHOW STEPS

Answer 1

Estimated final cost =

$ 8.45 M

EV =

$ 5.25 M

PV=

$ 6.5 M

1)

Cost and schedule variance indices

Schedule performance indices=

EV/PV=

0.807692

Cost performance index=

EV/AC=

0.621302

2)

All things are euqal what is the final duration

Axtual cost till now =

$4.95 m

Duration completed =

10 monhts

Estimated final cost =

8.45 M

Final duration for entire work=

17.07071

Final duration =

17 Months

3)

Is it acceptable to use SPI to estimate the FD?

Using the Schedule Performance Index (SPI) and the average Planned Value (PV) per unit of time, the project team can generate a rough estimate of when the project will be completed, if current trends continue, compared to when it was originally supposed to be completed.

The originally estimated completion time for the project was 12 months, so the project manager now knows that if work continues at the current rate the project will take six months longer than originally planned. It is important to note that this method generates a fairly rough estimate and must always be compared with the status reflected by a time-based schedule method such as critical path method. It is possible that an earned value analysis could show no schedule variance and yet the project is still behind schedule; for example, when tasks that are planned to be completed in the future are performed ahead of tasks on the critical path.

4)

What can be the concluded from the EVA at this point.

The earned value analysis as on date is showing negative. It indicates the project is going to be delay by 7 months as per the above final duration calculation