EVA; 125 cu.m concrete in 10 days

Earned value analysis

EVA is a project control technique that integrates scope, time and cost. It compares the planned value (PV), the earned value (EV) and the actual cost (AC) at a reporting date to find the schedule and cost variances and to forecast the final cost and duration. It is based on the budgeted cost of work scheduled (BCWS), the budgeted cost of work performed (BCWP) and the actual cost of work performed (ACWP).

Numerical

• BAC = Rs 12,50,000 for 125 m³ in 10 days (Rs 10,000/m³)
• At day 3: planned = 30 % of the work (37.5 m³); done = 40 m³ (32 %); expenses = Rs 3,75,000

$$\begin{aligned} PV &= 0.30 \times 12{,}50{,}000 = 3{,}75{,}000\\ EV &= \frac{40}{125} \times 12{,}50{,}000 = 4{,}00{,}000\\ AC &= 3{,}75{,}000 \end{aligned}$$

Calculation

$$\begin{aligned} SV &= EV - PV = 4{,}00{,}000 - 3{,}75{,}000 = 25{,}000\\ CV &= EV - AC = 4{,}00{,}000 - 3{,}75{,}000 = 25{,}000\\ SPI &= EV/PV = 4{,}00{,}000/3{,}75{,}000 = 1.067\\ CPI &= EV/AC = 4{,}00{,}000/3{,}75{,}000 = 1.067\\ EAC &= BAC/CPI = 12{,}50{,}000/1.0667 = 11{,}71{,}875\\ ETC &= EAC - AC = 11{,}71{,}875 - 3{,}75{,}000 = 7{,}96{,}875\\ VAC &= BAC - EAC = 12{,}50{,}000 - 11{,}71{,}875 = 78{,}125\\ \text{Forecast duration} &= 10/SPI = 10/1.0667 = 9.4\ \text{days} \end{aligned}$$

Comment

• Schedule: SV is positive and SPI = 1.067, so the project is ahead of schedule. The work done is 106.7 % of the planned work. At this rate the concreting will take about 9.4 days instead of the planned 10 days.
• Cost: CV is positive and CPI = 1.067, so the project is under budget. Each Rs 1 spent gives Rs 1.07 of work.
• Forecast: if the present cost trend continues, the final cost will be Rs 11,71,875 against the budget of Rs 12,50,000 (variance at completion = Rs 78,125 saving).

Answer: SV = Rs 25,000, CV = Rs 25,000, SPI = 1.067, CPI = 1.067; the project is ahead of schedule and under budget.

Both schedule and cost are favourable. Controlling statements: continue the present method, maintain productivity and quality, keep records, and watch for later risks.

The planned concrete by day 3 was 37.5 m³, but 40 m³ was placed, so the work is ahead. The actual unit cost is Rs 9,375/m³ against the budget of Rs 10,000/m³.