Assume that you have completed three months of the project. The BAC was $200,000 for this six-month project. You can also make the following assumptions:

PV = 120,000

EV = 100,000

AC = 90,000 .

a)What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?

b)How is the project doing? Is it ahead of schedule or behind schedule? Is it under budge or over budget?

c)Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned?

d)Use the SPI to estimate how long it will take to finish this project.

e)Sketch an earned value chart using the preceding information. See bellow figure as a guideline.

An EAC Estimate at completion (EAC) point above and to the right of the BC point means the project is projected to cost more and take 120,000 Budget at completion (BAC 100,000 80,000- Planned value (PV) $ 60,000 Actual cost (A9 longer than planned 40,000 Earned value (EV) 20,000 i2 3 4 56 7 8 9 10 11 12 13 Month .... Actual cost (AC) - Planned value (PV) Earned value (EV)