EARNED VALUE MANAGEMENT

PROJECT:

ABOUT CONSTRUCTING 4 SIDES OF WALL

TIME ESTIMATED IS 4 DAYS-1 DAY FOR EACH WALL

BUDGET ESTIMATED IS 4000

BUDGET ESTIMATED FOR EACH WALL-1000

AT THE END OF 2 DAYS, EARNED VALUE ANALYSIS IS DONE. YOU GET THE FOLLOWING
INFORMATION:

WORK PERFORMANCE DATA

• 1.5 SIDES OF WALL COMPLETE

• 2500 SPENT

PLANNED VALUE PV-2000

EARNED VALUE EV- 1500

ACTUAL COST AC- 2500

BUDGET AT COMPLETION-BAC-4000

ANALYSIS

COST VARIANCE- CV→EV-AC= 1500-2500→-1000

SCHEDULE VARIANCE-SV→EV-PV=1500-2000→-500

COST PERFORMANCE INDEX-CPI=EV/AC→1500/2500→0.6

SCHEDULE PERFORMACE INDEX SPI=EV/PV→1500/2000→0.75

ESTIMATE AT COMPLETION EAC=

1) IF THE WORK CONTINUES AT 0.6 CPI THEN, BAC/CPI→4000/0.6= 6666.67

2) IF THE REMAINING WORK CAN BE DONE AT BUDGETED RATE, THEN AC + (BAC – EV)→
2500+(4000-1500) = 5000
3) Factoring in both CPI & SPI, AC + [(BAC – EV)/(CPI * SPI)]= 2500+[4000-1500]/0.6*0.75
= 8055.55
4) ETC=EAC-AC→RE-ARRANGE EAC=ETC+AC=4166.67+2500= 6666.67

VARIANCE AT COMPLETION VAC→BAC-EAC=4000-6666.67=-2666.67

ESTIMATE TO COMPLETE ETC→EAC-AC=6666-2500→4166.67