Question

soon, hence you have to write your answer in the Texi-Field given below Actual Cost (AC). Planned Value (PV) and Eamed Value (EV) of the activities of an ongoing project atter 5 months and after 8 months are given in the following table. All values and costs are in Rs lakhs. Comment on the status of the a) activities (activity delayediearty, activity cost over-runiunderrun), and b) status of the project and estimated total costat completion at 5 months and at 8 months [6 Marks] Activity A B С D E EV 10 18 15 40 25 25 10 After 5 months PV AC Comments 10 8 15 12 20 25 30 35 265 25 20 15 15 10 EV 20 25 15 70 70 40 30 After 8 months PV AC Comments 40 45 25 20 30 25 60 40 70 80 40 40 40 20 F G

Answer 1

The formula for checking whether your project is ahead of the schedule or behind the schedule only comes from a easier earner value analysis

Schedule Variance = Earned Value – Planned Value

SV = EV – PV

From the above formula, we can conclude that:

• You are ahead of schedule if the Schedule Variance is positive.
• You are behind schedule if the Schedule Variance is negative.
• You are on schedule if the Schedule Variance is zero.

Similarly for cost variance, we need the formula to calculate

Cost Variance = Earned Value – Actual Cost

CV = EV – AC

We can conclude the following from the above formula:

• You are under budget if the Cost Variance is positive.
• You are over budget if the Cost Variance is negative.
• You are on the budget if the Cost Variance is zero.

We need to apply the above two formulas for each of the activity and comment