Question

Actual Cost, planned value and earned value of the activities of an ongoing project after 5 months and after 8 months are given below. All values and costs are in Rs lakhs. Comment on status of the

a) Activities (Activity delayed/early, activity cost overrun/underrun)

b) status of project and estimated total cost at completion at 5 months and at 8 months.

After 5 months   

Activity. EV PV AC Comment   

A 10 10 8   

B 18 15 12

C 15. 20 25

D 40 30. 35

E 25 25. 25

F 25 20 15

G 10 15 10

After 8 months

Activity EV PV AC Comment  

A 20 40 45

B 25 25 20

C 15 30 25

D 70 60 40

E 70 70 80

F 40 40 40

G 30 40 20

Answer 1

Answer a and b :

The formula for checking whether your project is ahead of the schedule or behind the schedule only comes from a easier earner value analysis

Schedule Variance = Earned Value – Planned Value

SV = EV – PV

From the above formula, we can conclude that:

• You are ahead of schedule if the Schedule Variance is positive.
• You are behind schedule if the Schedule Variance is negative.
• You are on schedule if the Schedule Variance is zero.

Similarly for cost variance, we need the formula to calculate

Cost Variance = Earned Value – Actual Cost

CV = EV – AC

We can conclude the following from the above formula:

• You are under budget if the Cost Variance is positive.
• You are over budget if the Cost Variance is negative.
• You are on the budget if the Cost Variance is zero.

We need to apply the above two formulas for each of the activity and comment

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