EVA; 60 days, 25% work, Rs 12,00,000

Given data

BAC = Rs 20,00,000; planned duration = 60 days; at the end of the first month (30 days) 25 % of the work is complete and the cost is Rs 12,00,000. Planned work is assumed uniform, so half of the work is planned in the first month.

Calculation

$$\begin{aligned} PV &= \frac{30}{60} \times 20{,}00{,}000 = 10{,}00{,}000 \\ EV &= 0.25 \times 20{,}00{,}000 = 5{,}00{,}000 \\ AC &= 12{,}00{,}000 \end{aligned}$$ $$\begin{aligned} SV &= EV - PV = 5{,}00{,}000 - 10{,}00{,}000 = -5{,}00{,}000 \\ CV &= EV - AC = 5{,}00{,}000 - 12{,}00{,}000 = -7{,}00{,}000 \\ SPI &= \frac{EV}{PV} = \frac{5{,}00{,}000}{10{,}00{,}000} = 0.50 \\ CPI &= \frac{EV}{AC} = \frac{5{,}00{,}000}{12{,}00{,}000} = 0.42 \\ EAC &= \frac{BAC}{CPI} = \frac{20{,}00{,}000}{0.4167} = 48{,}00{,}000 \\ ETC &= EAC - AC = 48{,}00{,}000 - 12{,}00{,}000 = 36{,}00{,}000 \\ VAC &= BAC - EAC = 20{,}00{,}000 - 48{,}00{,}000 = -28{,}00{,}000 \\ \text{Forecast duration} &= \frac{60}{SPI} = \frac{60}{0.5000} = 120.0\ \text{days} \end{aligned}$$

Comment

• Schedule: SV = -5,00,000 and SPI = 0.50, so the project is behind schedule; only 50 % of the planned work is done. If the same rate continues, the duration becomes 120.0 days against 60 days planned.
• Cost: CV = -7,00,000 and CPI = 0.42, so the project is over budget; each rupee spent has earned Rs 0.42 of work.
• Forecast: EAC = Rs 48,00,000 against BAC = Rs 20,00,000, i.e. a final overrun of Rs 28,00,000.
• Action: find the causes (low productivity, idle equipment, material delay, wastage), add resources or shifts on critical activities, tighten supervision and cost control, and revise the plan with the client.

Answer: SV = Rs -5,00,000, CV = Rs -7,00,000, SPI = 0.50, CPI = 0.42; the project is badly behind schedule and over budget, EAC = Rs 48,00,000.