Overview

In this assignment, you'll answer some questions about what the Earned Value Technique has to say about two hypothetical projects.

Instructions

In a separate MS Word document, provide the answers to the questions asked in each of the problems below. Make sure you show all your work.

Problem 1: Show All Work

You have a project that is scheduled to be completed in 20 days at a budgeted cost of $200,000. At the end of day 12 you do an analysis where you determine the job is 70% complete and you have spent $130,000.

(Assume that the project spending was planned to proceed at the same rate each day. In other words, you expected to get $10,000 worth of work done each day, and spend $10,000 to do it).

Questions

1. What is the Planned Value (PV) at this time?
2. What is the Earned Value (EV) at this time?
3. What is the Actual Cost (AC) at this time?
4. What is the projects Budget at Completion (BAC)?
5. Is the project ahead of, behind, or right on schedule?
6. Is the project expected to complete on budget, over budget, or under budget?
7. What the Schedule Performance Index (SPI)?
8. What is the Cost Performance Index (CPI)?
9. What is the Estimate at Completion (EAC)? Assume that the project continues along at the same rate of spending.
10. What is the Estimate to Completion (ETC)?
11. What is the Variance at Completion (VAC)?

Problem 2: Show All Work

You are building a 4-sided corral. Each side of the corral is of equal length and you estimate that each side will contain the same material and labor costs as well as take the same amount of time to complete. You estimate that the project will take 4 days to complete and your budget is $4,000.

(as in the first problem, assume that expected spending and progress to be linear)

At the end of the 3^rd day, total costs incurred are $3,500 although the project is only 70% completed.

1. What is the Planned Value (PV) at this time?
2. What is the Earned Value (EV) at this time?
3. What is the Actual Cost (AC) at this time?
4. What is the projects Budget at Completion (BAC)?
5. Is the project ahead of, behind, or right on schedule?
6. Is the project expected to complete on budget, over budget, or under budget?
7. What the Schedule Performance Index (SPI)?
8. What is the Cost Performance Index (CPI)?
9. What is the Estimate at Completion (EAC)? Assume that the project continues along at the same rate of spending.
10. What is the Estimate to Completion (ETC)?
11. What is the Variance at Completion (VAC)?