This problem uses the 0-100 rule to create the time-phased budget baseline (PV values) and to record when the budgeted amounts are earned (EV values). This means each activity (or work package) is considered 0% complete when it begins and is in process, and gets 100% credit only when it is completed.

Earned value exercise using 0-100 rule for work in process A customer hires a consultant to install and configure analytics software on five identical servers. The consultant will work alone and be reimbursed for labor only. Because the software is known to be difficult to configure, the consultant estimates two days per server at eight hours per day and at $125 per hour. Overtime will also be paid, if necessary, at the same rate of $125 per hour. The customer and consultant agree to use the 0-100 rule to determine earned value (EV), i.e., the EV for each server will be $0 until the server is finished, at which time the EV will change to the budgeted cost for the server. The first server was completed in three days because of time needed to understand how to configure the software. The first server required a total of two hours of overtime. The second server was completed in two days and required no overtime. Determine the values for the following as of the end of day 5. a. PV b. EV c. AC d. BAC e. SV f. CV g. EAC h. VAC i. ETC j. Percent complete k. SPI l. CPI