Question

Scope = 10chairs @ $10.00-$100.00 Timeframe 10 days At the End of the 5th day 4 chairs were Completed at a cost of $11.00 each PV: AC EV CPI- sv=

Answer 1

Project ABC: Assume that each chair cost $10 and take one day to complete

Planned Value (PV) is the value which was supposed to earn at that point of time

Planned value (PV) calculation at the end of 5^th day

PV = (% planned completion) * Budgeted Cost

= 50% * $100 = $50

Earned Value (EV) is valued earned to the proportion of the completion of the task at point of time

EV = (% completion) * Budgeted Cost

= 40% * $100 = $40

The actual cost (AC) of project = completed chairs * Actual Cost

= 4 *$11 = $44

Cost variance (CV) = EV – AC

= $40 - $44 = -$4

Cost performance index               (CPI) = EV/AC = $40 /$44 = 0.91

Schedule Variance (SV) = Earned Value (EV) - Planned Value (PV)

= $40 - $50 = -$10

Schedule performance index (SPI) = EV/PV = $40/$50 = 0.8

Critical Ratio (CR) is a product of the cost performance index (CPI) and schedule performance index (SPI)

CR = CPI * SPI = 0.91 * 0.8 = 0.73