You are assigned to a project with an initial budget of $200,000 USD. Midway through the project, you review the schedule and costs. Based on your review,

• You should have spent $50,000 to date based on your initial plans and 100 days of activities that were based on the schedule.
• You have actually spent $60,000 to date and completed activities for 110 days of the scheduled baseline, which should have cost $45,000 based on your initial plans.
• The budget required for the remaining work to be completed is estimated at $150,000.

Answer the following:

PV (Planned Value) =

AC (Actual Cost) =

EV (Earned Value)=

ETC (Estimate to Complete) =

CPI =

SPI =

CV =

SV =

VAC (Variance at Completion) =

EAC (Estimate at Completion) =

TCPI =

Based on your earned value review, is the project under/over budget, behind/ahead of schedule and will the project be easy to complete with the current budget.

Resources:

Earned Value calculations help the project manager to measure the amount of work actually performed on a project beyond the basic review of cost and scheduled reports. Earned Value is the "budgeted cost of worked performed" or BCWP.

The youtube video provides a tutorial on how you can use Excel for Earned Value to help with Budgets and estimating costs for projects.

https://www.youtube.com/watch?v=VI0Qh_VpIEw

https://www.youtube.com/watch?v=O9NjG6h4bFk

Using the EV formulas worksheet below, complete the PMP Earned value exercises. I have provided one example of the solution.

Alternate Acronym Full Name What it is Name Budgeted Cost of PV = BCWS The Plan Work Scheduled The total budgeted cost The cost ongmally budgeted to EV EV = BCWP Budgeted Cost of Work Performed Earned Value accomplish the work that has been completed Actual Cost The actual accounting cost paid to The AC = ACWP of Work accomplish all the work Investment Performed performed by a specific date. Budgeted Cost Remaining The amount of work not yet BCWR of Work Remaining Work accomplished or paid Remember EV = BCWP AC = ACWP PV = BCWS Rules EV ( or BCWP) - AC Cost Variance Answers the Question CV [or ACWP) If > 0, then favorable (underrun) If CPI = 1 or 100%, then planned How much do we PLAN to EV & actual costs are as budgeted. spend? And Cost Performance Index If 1 or 100%, then project is by this date? UNDER budget EV (or BCWP) - SV > 0 is favorable & ahead of How much work has Schedule Variance SV PV(or BCWS) schedule actually been completed? How much was actually paid Variance at Completion VAC BAC - EAC to deliver the Earned Value? If SPI =1 or 100%, then project is on schedule. Schedule Performance SPI EV If 1 or 100%, then project is AHEAD of schedule BAC Estimate at Completion EAC CP Estimate to Complete EAC AC - ACEarned Value Management You're a Amazon reseller responsible for refurbishment of 1000 laptops. The estimated refurbishment cost is $50 per laptop. Based on your past experience, you know your team can refurbish 100 laptops per week. After 4 weeks, you have 45% of the job complete and you have spent $25,000. Determine the value for each of the terms below: Term Value Budget At Completion Planned Value Earned Value Actual Cost Cost Variance Schedule Variance Cost Performance Index Schedule Performance Index Estimate At Completion Estimate To Complete Variance At CompletionExercise 1 Solution: Estimated refurbishment cost 50.00 per laptop Number of laptops 1,000.00 Refurbishment per week 100.00 laptops per week Budget At Completion ($50 x 1,000) 50,000.00 dollars Total duration (1,000 / 100) 10.00 weeks Duration Elapsed 4.00 weeks Planned Value (4 / 10 x BAC) 20,000.00 dollars Percentage completion 45% Earned Value (45% x BAC) 22,500.00 dollars Actual Cost 25,000.00 dollars Cost Variance (EV - AC) (2,500.00) dollars Schedule Variance (EV - PV) 2,500.00 dollars Cost Performance Index (EV / AC) 0.90 Schedule Performance Index (EV / PV) 1.13 Estimate At Completion (BAC / CPI) 55,555.56 dollars Estimate To Complete (EAC - AC) 30,555.56 dollars Variance At Completion (BAC - EAC) (5,555.56) dollars