EVA; parking meters installation

Given data

• Fixed contract: 1000 meters at Rs 20,00,000, i.e. Rs 2,000 per meter, so $BAC = 20{,}00{,}000$.
• Planned rate = 25 meters/day, so the planned duration = 1000 / 25 = 40 days.
• Review at day 18: meters installed = 400; $AC = 10{,}00{,}000$.

Calculation

$$\begin{aligned} PV &= (25 \times 18) \times 2{,}000 = 450 \times 2{,}000 = 9{,}00{,}000 \\ EV &= 400 \times 2{,}000 = 8{,}00{,}000 \\ AC &= 10{,}00{,}000 \end{aligned}$$ $$\begin{aligned} SV &= EV - PV = 8{,}00{,}000 - 9{,}00{,}000 = -1{,}00{,}000 \\ CV &= EV - AC = 8{,}00{,}000 - 10{,}00{,}000 = -2{,}00{,}000 \\ SPI &= \frac{EV}{PV} = \frac{8{,}00{,}000}{9{,}00{,}000} = 0.89 \\ CPI &= \frac{EV}{AC} = \frac{8{,}00{,}000}{10{,}00{,}000} = 0.80 \\ EAC &= \frac{BAC}{CPI} = \frac{20{,}00{,}000}{0.8000} = 25{,}00{,}000 \\ ETC &= EAC - AC = 25{,}00{,}000 - 10{,}00{,}000 = 15{,}00{,}000 \\ VAC &= BAC - EAC = 20{,}00{,}000 - 25{,}00{,}000 = -5{,}00{,}000 \\ \text{Forecast duration} &= \frac{40}{SPI} = \frac{40}{0.8889} = 45.0\ \text{days} \end{aligned}$$

Comment

• Schedule: SV = -1,00,000 and SPI = 0.89, so the project is behind schedule; only 89 % of the planned work is done. If the same rate continues, the duration becomes 45.0 days against 40 days planned.
• Cost: CV = -2,00,000 and CPI = 0.80, so the project is over budget; each rupee spent has earned Rs 0.80 of work.
• Forecast: EAC = Rs 25,00,000 against BAC = Rs 20,00,000, i.e. a final overrun of Rs 5,00,000.

Only 400 meters are installed against 450 planned (50 meters behind), and the actual cost per meter installed is 10,00,000 / 400 = Rs 2,500 against the budgeted Rs 2,000 (25 % higher). At the present rate the installation needs about 45 days instead of 40 days. Action: add installation crews, check why the cost per meter is high (rework, transport, idle labour) and control it, since the contract is fixed-cost and the overrun is borne by the company.

Answer: PV = Rs 9,00,000; EV = Rs 8,00,000; AC = Rs 10,00,000; SV = Rs -1,00,000; CV = Rs -2,00,000; SPI = 0.89; CPI = 0.80; EAC = Rs 25,00,000; behind schedule and over budget.