EVA; 10 days, 100,000, day 6, spi and cpi

Given data

BAC = Rs 1,00,000 (100,000); duration = 10 days; at day 6: work done = 70 %, cost spent = Rs 55,000. Planned work is assumed uniform with time.

Calculation

$$\begin{aligned} PV &= \frac{6}{10} \times 100{,}000 = 60{,}000 \\ EV &= 0.70 \times 100{,}000 = 70{,}000 \\ AC &= 55{,}000 \end{aligned}$$ $$\begin{aligned} SV &= EV - PV = 70{,}000 - 60{,}000 = 10{,}000 \\ CV &= EV - AC = 70{,}000 - 55{,}000 = 15{,}000 \\ SPI &= \frac{EV}{PV} = \frac{70{,}000}{60{,}000} = 1.17 \\ CPI &= \frac{EV}{AC} = \frac{70{,}000}{55{,}000} = 1.27 \\ EAC &= \frac{BAC}{CPI} = \frac{1{,}00{,}000}{1.2727} = 78{,}571 \\ ETC &= EAC - AC = 78{,}571 - 55{,}000 = 23{,}571 \\ VAC &= BAC - EAC = 1{,}00{,}000 - 78{,}571 = 21{,}429 \\ \text{Forecast duration} &= \frac{10}{SPI} = \frac{10}{1.1667} = 8.6\ \text{days} \end{aligned}$$

Answers

(i) $SV = +10{,}000$ and $SPI = 1.17 > 1$: the project is ahead of schedule (70 % done against 60 % planned). At this rate it can finish in about 8.6 days.

(ii) $CV = +15{,}000$ and $CPI = 1.27 > 1$: the project is expected to complete under budget; EAC = Rs 78,571 against Rs 1,00,000, a saving of Rs 21,429.

(iii) SPI = 1.17 and CPI = 1.27 at day 6.

• Action: continue the same management, keep the quality standard (do not save cost by poor work), and use the saved time/money as contingency or to release resources for other tasks.