Project Management

Earned Value Analysis

Pr. Mohammed BELKASSEH Workshop
You have a project to build a new fence. The fence is four sided. Each side is to take one day to build, and $1,000
has been budgeted per side. The sides are planned to be completed one after the other. Today is the end of day 3.
Using the following project status chart, calculate PV, EV, etc.

Status End of
Activity Day 1 Day 2 Day 3 Day 4
Day 3
Complete,
Side 1 S------------F spent $1,000
Complete,
Side 2 S----------PF -----F spent $1,200
50% done,
Side 3 PS--S-----PF spent $600
Not yet
Side 4 PS--------PF started
Key S: Actual Start - F: Actual Finish - PS: Planned Start & PF: Planned Finish
Answer
Element Calculation Answer Interpretation of the answer
1 PV $1,000 plus $1,000 plus $1,000 $3,000 We should have done $3,000 worth of work

Complete, complete, and half done

2 EV $2,500 We have actually completed $2,500 worth of work
Or $1,000 plus $1,000 plus $500

3 AC $1,000 plus $1,200 plus $600 $2,800 We have actually spent $2,800
$1,000 plus $1,000 plus $1,000 plus
4 BAC $4,000 Our project budget is $4,000
$1,000
5 CV $2,500 minus $2,800 -$300 We are over budget by $300
We are only getting about 89 cents out of every dollar we put
6 CPI $2,500 divided by $2,800 $0.893
into the project
7 SV $2,500 minus $3,000 -$500 We are behind schedule
We are only progressing at about 83 percent of the rate
8 SPI $2,500 divided by $3,000 0.833
planned
9 EAC $4,000 divided by $0.893 $4,479 We currently estimate that the total project will cost $4,479
10 ETC $4,479 minus $2,800 $1,679 We need to spend $1,679 to finish the project
We currently expect to be $479 over budget when the project
11 VAC $4,000 minus $ 4,479 -$479
is completed