EVA; 60 days, 25% work, 50% budget spent

Given data

BAC = Rs 20,000; duration = 60 days (2 months); cost breakdown Rs 10,000 per month; half of the work is scheduled in each month. At the end of month 1: work done = 25 %; spent = 50 % of the budget.

Calculation

$$\begin{aligned} PV &= 50\%\ \text{of}\ 20{,}000 = 10{,}000 \\ EV &= 25\%\ \text{of}\ 20{,}000 = 5{,}000 \\ AC &= 50\%\ \text{of}\ 20{,}000 = 10{,}000 \end{aligned}$$ $$\begin{aligned} SV &= EV - PV = 5{,}000 - 10{,}000 = -5{,}000 \\ CV &= EV - AC = 5{,}000 - 10{,}000 = -5{,}000 \\ SPI &= \frac{EV}{PV} = \frac{5{,}000}{10{,}000} = 0.50 \\ CPI &= \frac{EV}{AC} = \frac{5{,}000}{10{,}000} = 0.50 \\ EAC &= \frac{BAC}{CPI} = \frac{20{,}000}{0.5000} = 40{,}000 \\ ETC &= EAC - AC = 40{,}000 - 10{,}000 = 30{,}000 \\ VAC &= BAC - EAC = 20{,}000 - 40{,}000 = -20{,}000 \\ \text{Forecast duration} &= \frac{60}{SPI} = \frac{60}{0.5000} = 120.0\ \text{days} \end{aligned}$$

Comment

• Schedule: SV = -5,000 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 = -5,000 and CPI = 0.50, so the project is over budget; each rupee spent has earned Rs 0.50 of work.
• Forecast: EAC = Rs 40,000 against BAC = Rs 20,000, i.e. a final overrun of Rs 20,000.
• 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 -5,000, CV = Rs -5,000, SPI = 0.50, CPI = 0.50; behind schedule and over budget; EAC = Rs 40,000, double the budget.