EVA graphically; BCWS 9,50,000, BCWP 8,00,000

Earned value analysis graphically

EVA plots three cumulative cost curves against time: BCWS (planned value), BCWP (earned value) and ACWP (actual cost). The gaps between them are the variances.

• Schedule variance: SV = BCWP - BCWS
• Cost variance: CV = BCWP - ACWP

 FAVOURABLE            UNFAVOURABLE
 Cost                  Cost
  |      EV  .--        |      AC  .--
  |   PV .-'-'          |   PV .-'-'
  |   .-'   AC          |   .-'  EV
  | .'                  | .'
  +--------- time       +--------- time
 EV above PV: ahead     EV below PV: behind
 EV above AC: saving    EV below AC: overrun

Numerical (schedule performance)

Data: PV = Rs 9,50,000 and EV = Rs 8,00,000 at week 20; planned duration = 45 weeks. The total budget and the actual cost are not given, so only the schedule performance can be found.

$$\begin{aligned} SV &= EV - PV = 8{,}00{,}000 - 9{,}50{,}000 = -1{,}50{,}000\\ SPI &= EV/PV = 8.00/9.50 = 0.842 \end{aligned}$$

Features and comment

 Cost (Rs lakh)
 9.5 |        PV o
 8.0 |        EV o   (below PV)
     +----------|----------- weeks
                20         45

• The earned value curve lies below the planned value curve, so the project is behind schedule.
• Only 84.2 % of the planned work is complete; work worth Rs 1,50,000 is delayed.
• If the same performance continues, the expected duration = 45/0.842 = 53.4 weeks, i.e. about 8.4 weeks of delay.
• Remedies: add labour and equipment to critical activities, work overtime, fast-track (overlap) activities on the critical path, and re-plan the remaining schedule.

Answer: SV = -Rs 1,50,000; SPI = 0.842; the project is behind schedule.