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Define each term in your own words, calculate these values for the above project, and show

your work:

1. Budgeted cost baseline (make a graph illustrating this one)

A budgeted bost baseline is the planned and approved total cost for completing all project activities

over a specific period, typically the duration of the project. = $720,000

Task Date Budgeted Amount Total amount

Build forms 1-Apr $10,000 $10,000

Pour foundation 1-Apr $50,000 $60,000

1-May $100,000 $160,000

Frame walls 1-May $30,000 $190,000

1-Jun $30,000 $220,000

Remaining tasks July 1 and beyond $500,000 $720,000

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2. Budget at completion (BAC)

Budget at completion (BAC) is the total planned budgeted cost for completing an entire project.

BAC=10,000 + 50,000 + 100,000 + 30,000+30,000+500,000 = $720000

3. Planned value (PV) as of May 1

Planned Value as of May 1 is the amount of cost required to complete the targeted tasks till May1

PV as of May1 = 10,000 + 50,000 + 100,000 + 30,000= $190,000

4. Earned value (EV) as of May 1 if the foundation work is only two-thirds complete.

Everything else is on schedule.

Earned value is the value of work actually completed and approved at a specific point in time.

For May 1, if foundation is 2/3rd complete,

EV= 10,000+((2/3) *(100000+50000))+30000

EV= $140,000

5. SV as of May 1.

SV=Difference between the earned value and Planned Value (EV-PV)

SV as of May 1=140,000-190,000 = -$50,000

The SV value is negative, indicating that we are running behind schedule.

6. The actual cost as of May 1 is $160,000. Calculate the cost variance (CV) as of May1

Cost Variance = Difference between the Earned value and Actual cost at any point in the project.

In this case, CV = 140,000-160,000

CV= -$20,000

7. Schedule performance index (SPI)

Scheduled Performance is the ratio of Earned value per date to the planned value to date.

SPI=EV/PV
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SPI= 140,000/190,000

SPI= 0.737

8. Cost performance index (CPI)

CPI is the ratio of Earned value to the Actual cost at any point in the project.

CPI= EV/AC

CPI= 140,000/160,000 = 0.875

9. Estimate to complete (ETC), if the previous cost variances will not affect future costs.

ETC is the amount of cost required to complete the unfinished activities of the project.

ETC = (BAC-EV)/CPI

=(720000-140000)

ETC= 580,000

10. Estimate at completion (EAC)

EAC is the revised estimate for the completion of the project

EAC=AC+ETC

EAC= 160,000+580,000

EAC= 740,000
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References:

Project Management Life Cycle: It training and consulting. Exforsys. (n.d.).

Watts, A. (2014). Project Management. Victoria, B.C.: BCcampus. Retrieved from https://open-

textbc.ca/projectmanagement/.