Question

Earned value calculation

Based on the following Project data, answer the questions a and b.

Activity	Duration	Predecessors	Task Budget
A	7 days	--	$16,850
B	10 days	--	$22,500
C	8 days	B	$16,000
D	10 days	A	$12,790
E	7 days	B	$8,500
F	4 days	D	$10,550

At the end of Day 10, the status of the project is as follows.

Activity	% Complete	Actual Cost
A	100%	$18,000
B	100%	$23,000
C	0%	$0
D	10%	$4,000
E	0%	$0
F	0%	$0

1. Calculate the cost and schedule variances and indexes for Tasks A, B, C, D, and E and the Cost and Schedule variance and the CPI and SPI for the entire project.

(b) As project manager, write a brief summary of the status of the project at this time.

Task	Sch'D Comp.	% Complete	EV BCWP	PV BCWS	AC ACWP	CV	SV	CPI	SPI
A
B
C
D
E
F
Project Totals

Answer 1

We prepare project network diagram as shown below:

As seen from above network diagram, the project can be completed in 21 days

As end of 10th day, activity A and B should have been 100% completed, activity D should be started and should have been completed (3/10) = 30%. Since, activity A takes 7 days and the rest 3 days activity D is performed.

Hence, we get 2nd table as follows:

a) We calculate cost and schedule variances and indexes for Tasks A, B, C, D, and E and the Cost and Schedule variance and the CPI and SPI for the entire project as follows:

The figures in red means negative figures. The variance and indices for entire project as shown in last row (Total).

b) The project summary is as follows:

Total project budget is $87,190. After 10 days, work equivalent to planned value of $43,187 should have been completed. However, work equivalent to $40,629 is completed but actual cost for this work spent is $45,000. The project is over-budget by $4,371 and behind schedule.by equivalent duration to $2,558. Activity A and B are on schedule but over-budget, D is behind schedule and over budget. Other activities are not planned to start and have not started.