Question

You are given the following information for a one-year project: Planned Value (PV) = $23,000, Earned Value (EV) = $20,000, Actual Cost (AC) = $20,000, and Budget at Completion (BAC) = $120,000.

Explain your assessment on how the project is doing: Is it ahead or behind schedule? Is it Page 6 of 8 IS8100-01 Fa2019 under or over budget? Use all of the calculated variances and indexes from above to support your argument. [50-100-word response.]

Answer 1

Planned Value = (Planned % / Complete %) X (Budget at Completion)

23000 = (Planned % / 100) * 120000

Planned % / 100% = 0.1917 = 19.17 %

Actual Cost is total cost actually so far.

Actual Cost = 20000

Earned Value = % of completed work X (Budget at Completion)

20000 = % of completed work * 120000

% of completed work = 20000 /120000 = 16.67%

To Conclude we are running behind the schedule as

Planned % = 19.17 % % of completed work = 16.67%

Now Actual cost is 16.67% of the project and which is equal so we are on the budget no variance.

Hope this helps.