EVA; 10 days, 100,000, day 6, Rs 65,000

Given data

BAC = Rs 1,00,000; duration = 10 days; at day 6: work done = 70 %, expenditure = Rs 65,000. Planned work is assumed uniform with time.

Calculation

$$\begin{aligned} PV &= \frac{6}{10} \times 100{,}000 = 60{,}000 \\ EV &= 0.70 \times 100{,}000 = 70{,}000 \\ AC &= 65{,}000 \end{aligned}$$ $$\begin{aligned} SV &= EV - PV = 70{,}000 - 60{,}000 = 10{,}000 \\ CV &= EV - AC = 70{,}000 - 65{,}000 = 5{,}000 \\ SPI &= \frac{EV}{PV} = \frac{70{,}000}{60{,}000} = 1.17 \\ CPI &= \frac{EV}{AC} = \frac{70{,}000}{65{,}000} = 1.08 \\ EAC &= \frac{BAC}{CPI} = \frac{1{,}00{,}000}{1.0769} = 92{,}857 \\ ETC &= EAC - AC = 92{,}857 - 65{,}000 = 27{,}857 \\ VAC &= BAC - EAC = 1{,}00{,}000 - 92{,}857 = 7{,}143 \\ \text{Forecast duration} &= \frac{10}{SPI} = \frac{10}{1.1667} = 8.6\ \text{days} \end{aligned}$$

Comment on performance

• Schedule: SV = 10,000 and SPI = 1.17, so the project is ahead of schedule; 117 % of the planned work is done. At this rate the work could finish in about 8.6 days against 10 days planned.
• Cost: CV = 5,000 and CPI = 1.08, so the project is under budget; each rupee spent has earned Rs 1.08 of work.
• Forecast: EAC = Rs 92,857 against BAC = Rs 1,00,000, i.e. a final saving of Rs 7,143.

Yes, the work performance is on track and better than planned: it is ahead of schedule and under budget. The margin on cost is smaller than the margin on time (CPI = 1.08 against SPI = 1.17), so the manager should keep a watch on spending and keep the quality standard while the work goes ahead.

Answer: SV = Rs 10,000, CV = Rs 5,000, SPI = 1.17, CPI = 1.08; EAC = Rs 92,857.