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EVA; 10 days, 50 labour days at Rs 1000

Short answer

EVA compares planned value, earned value, and actual cost. PV=Rs15,000, EV=Rs12,500, AC=Rs14,400, so SV=-Rs2,500, CV=-Rs1,900, SPI=0.83, CPI=0.87; work is behind schedule and over budget.

What is EVA? A construction work had to be completed in 10 days with 50 labour days at Rs 1000 per day, i.e. with a total cost of Rs 50,000. At the end of the third day, only 25% work was completed with the use of 18 labour days at Rs 800 per day. Perform earned value analysis and comment on the performance.

Earned Value Analysis (EVA)

Earned Value Analysis is a method of measuring project performance by comparing three quantities: the work planned (PV), the value of the work actually done (EV) and the actual cost (AC). It gives schedule and cost variances and indices in one common unit (money), and forecasts the final cost and time.

TermOther nameMeaning
BACBudget at completionTotal approved budget of the project
PVBCWS (planned value)Budgeted cost of the work scheduled up to the date
EVBCWP (earned value)Budgeted cost of the work actually completed = % complete x BAC
ACACWP (actual cost)Actual money spent on the work done up to the date
SV=EV−PV,CV=EV−ACSPI=EVPV,CPI=EVACEAC=BACCPI,ETC=EAC−AC,VAC=BAC−EAC\begin{aligned} SV &= EV - PV, \qquad CV = EV - AC \\ SPI &= \frac{EV}{PV}, \qquad CPI = \frac{EV}{AC} \\ EAC &= \frac{BAC}{CPI}, \qquad ETC = EAC - AC, \qquad VAC = BAC - EAC \end{aligned}

Given data

  • Budget: 50 labour days x Rs 1,000 = Rs 50,000 for 10 days (assumed uniform, 5 labour days per day).
  • At the end of day 3: work done = 25 %; labour used = 18 labour days at Rs 800 per day.

Calculation

PV=310×50,000=15,000EV=0.25×50,000=12,500AC=18×800=14,400\begin{aligned} PV &= \frac{3}{10} \times 50{,}000 = 15{,}000 \\ EV &= 0.25 \times 50{,}000 = 12{,}500 \\ AC &= 18 \times 800 = 14{,}400 \end{aligned} SV=EV−PV=12,500−15,000=−2,500CV=EV−AC=12,500−14,400=−1,900SPI=EVPV=12,50015,000=0.83CPI=EVAC=12,50014,400=0.87EAC=BACCPI=50,0000.8681=57,600ETC=EAC−AC=57,600−14,400=43,200VAC=BAC−EAC=50,000−57,600=−7,600Forecast duration=10SPI=100.8333=12.0 days\begin{aligned} SV &= EV - PV = 12{,}500 - 15{,}000 = -2{,}500 \\ CV &= EV - AC = 12{,}500 - 14{,}400 = -1{,}900 \\ SPI &= \frac{EV}{PV} = \frac{12{,}500}{15{,}000} = 0.83 \\ CPI &= \frac{EV}{AC} = \frac{12{,}500}{14{,}400} = 0.87 \\ EAC &= \frac{BAC}{CPI} = \frac{50{,}000}{0.8681} = 57{,}600 \\ ETC &= EAC - AC = 57{,}600 - 14{,}400 = 43{,}200 \\ VAC &= BAC - EAC = 50{,}000 - 57{,}600 = -7{,}600 \\ \text{Forecast duration} &= \frac{10}{SPI} = \frac{10}{0.8333} = 12.0\ \text{days} \end{aligned}
ParameterValue
PVRs 15,000
EVRs 12,500
ACRs 14,400
SVRs -2,500
CVRs -1,900
SPI0.83
CPI0.87
EACRs 57,600

Comment on performance

  • SV is negative and SPI = 0.83 < 1: the work is behind schedule; only 83 % of the planned work has been done. At this rate the job will take 12 days instead of 10.
  • CV is negative and CPI = 0.87 < 1: the job is over budget. Although the rate per labour day is lower (Rs 800 against Rs 1,000), 18 labour days were used for work that was budgeted at only 12.5 labour days (25 % of 50), so productivity is poor.
  • The expected final cost is Rs 57,600, an overrun of Rs 7,600.
  • Corrective action: improve productivity (better supervision, tools and work methods), plan materials in advance, and rearrange crews to recover the delay.

Answer: SV = Rs -2,500, CV = Rs -1,900, SPI = 0.83, CPI = 0.87; the work is behind schedule and over budget.

✓ Answer checked by Claude Opus 5.5 (high effort)

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