Case Study for EVA Analysis:

Scenario: A software development company is tasked with building a web-based

application for a client. The project has a total budget of $150,000 and is divided into
four phases: design, development, testing, and deployment. The project timeline is
set for eight months, with milestones established for each phase as follows:

 Design Phase (20% completion by the end of the 2nd month)

 Development Phase (50% completion by the end of the 4th month)
 Testing Phase (75% completion by the end of the 6th month)
 Deployment Phase (100% completion by the end of the 8th month)

Planned Metrics: Planned Budget Allocation:

 Design phase: $30,000

 Development phase: $60,000
 Testing phase: $40,000
 Deployment phase: $20,000

Actual Metrics (at the end of the 4th month): Actual Percentage of Completion (%
Complete):

 Design phase: 25%

 Development phase: 40%
 Testing phase: 55%
 Deployment phase: 5%

Actual Cost Incurred (AC):

 Design phase: $35,000

 Development phase: $55,000
 Testing phase: $45,000
 Deployment phase: $5,000

Task for Students:

1. Calculate Earned Value (EV) for each phase using the % Complete and the planned
budget allocation.
2. Calculate Planned Value (PV) for each phase using the % Scheduled and the planned
budget allocation for each phase.
3. Calculate Cost Variance (CV) for each phase by subtracting AC from EV.
4. Calculate Schedule Variance (SV) for each phase by subtracting PV from EV.
5. Interpret the EVA metrics for each phase and determine the project's status.
6. Develop an action plan based on the analysis to address any issues identified and
ensure successful project completion within budgetary and time constraints.