om, 30,000 m3 of rock would have to be excavated space and other resources available would limit within 3 months at a cost of R700 per cubic meter. the amount of work that could be done simulta he plan assumed a straight-line earned value neously, everyone agreed that the new station ver time. would delay the sinking of the shaft. After 13 After the work had begun, the scope of the months, the shaft had reached a depth of 1,400 roject was changed to include excavation for a meters below surface and excavation for the half- ew station halfway down the shaft (Figure 11.23) way station was completed. The actual cost at this with a volume of 20,000 m3. It was agreed that time was 190 million, which was more than was he additional work had to be done at the same budgeted for the period. This aggravated a cash- xcavation rate as the bottom station, but since flow problem at that stage. The executive manage- emoval of the rock required hoisting only 1,000 ment requested an earned value report. Informa- meters (as opposed to the 2,000 meters for the bot- tion on the relative amounts of time spent on exca- om station), the team agreed on the cost of R500 vating the new station and sinking the shaft was er cubic meter for the new station. Since working not available. QUESTIONS 1. Calculate the CV, SV, TV, CPI, and SPI. 3. Regarding the cash-flow problem that was 2. Prepare a graph to illustrate the initial plan for aggravated by the high rate of spending, dis- the work, including the excavation for the sta- cuss the desirability of performing projects tion at the shaft bottom, as well as the changed faster than planned. plan. Indicate the earned value and the actual cost after 13 months