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Sample sums-EVM

The project is ahead of schedule but on budget. CPI is 1, meaning cost is on target. SPI is 2, indicating the project is ahead of schedule with 50% work complete against a planned 25%. However, the original total budget of $800,000 has already been spent on 50% of the work.

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Shreenidhi M R
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43 views4 pages

Sample sums-EVM

The project is ahead of schedule but on budget. CPI is 1, meaning cost is on target. SPI is 2, indicating the project is ahead of schedule with 50% work complete against a planned 25%. However, the original total budget of $800,000 has already been spent on 50% of the work.

Uploaded by

Shreenidhi M R
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Exercise 1: Earned Value Management

Your company specializes in installing PCs. BELL labs


has given you a work contract. The work involves
installing PCs in their office.
Total work to be performed : 50 pcs to be installed
Total Duration of project : 10 Days
Rewards : You will be paid at $10,000 for the project.
Your plan is to install 5 PCs per day, and at the end of
10 days you would have completed the project.
Actual Work: At the end of the 1st week (5 days), your
company installed 30 pcs.
Actual Cost: You spent $4000 at the end of week 1..
Cost Management Calculations - 1:
 Given in question: BAC: $10000, AC: $4000
 Expectation: 50 PCs installation in 10000.
 So, per PC installation worth is 10000/50 = $200
 50 PCs in 10 days → 5 PCs/ day → 5X200=$1000 worth of
work is planned / day. So Planned Value = 1000/ day.
 After 5 days, Planned Value(PV)= 5*1000 = $5000
 But actual work done after 5 days is 30 PCs. Earned Value
(EV) = 30*200 = $6000
 CPI = EV/ AC = 6000/4000 = 1.5
 SPI = EV/ PV = 6000/5000 = 1.2
 EAC = BAC/ CPI = 10000/1.5 = $6666.67.
 ETC = EAC – AC = 2666.67
Cost Management Control Costs

Exercise 2: Earned Value Management

The total budget for a highway construction project is $ 800,000 consisting


of a total 8000 hours of work scheduled. As of today, 25% work was
planned, and the actual cost spent is $ 400,000. The percentage of work
complete as of today is 50%. Comment on the status of the project in terms
of CPI and SPI
Cost Management Calculations - 2:

 Given in question: BAC: $800000, AC: $400000


 25% work was planned to be done. Hence PV =
25% of BAC = 0.25*800000 = $200000
 But 50% work is actually completed. Hence EV =
50% of BAC = 0.5* 800000 = $400000
 CPI = EV/ AC = 400000/400000 = 1
 SPI = EV/ PV = 400000/200000 = 2
 EAC = BAC/ CPI = 800000/1 = 800000
 ETC = EAC – AC = 800000-400000 = $400000

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