EVA; plantation 50 units, 3 weeks, Rs 2500

Earned value analysis (EVA) compares the planned value, earned value and actual cost to measure schedule and cost performance. Planned progress is taken as uniform over the 3 weeks.

Data

• Total work = 50 units, rate = Rs 2,500/unit, duration = 3 weeks
• Budget at completion, BAC = 50 x 2,500 = Rs 1,25,000
• Monitoring at the end of week 1: completed = 20 units; actual cost = 20 x 2,500 = Rs 50,000

$$\begin{aligned} PV &= \frac{1}{3} \times 1{,}25{,}000 = 41{,}666.67\ \text{(planned work = 16.67 units)}\\ EV &= 20 \times 2{,}500 = 50{,}000\\ AC &= 20 \times 2{,}500 = 50{,}000 \end{aligned}$$

Calculation

$$\begin{aligned} SV &= EV - PV = 50{,}000 - 41{,}666.67 = 8{,}333.33\\ CV &= EV - AC = 50{,}000 - 50{,}000 = 0\\ SPI &= EV/PV = 50{,}000/41{,}666.67 = 1.20\\ CPI &= EV/AC = 50{,}000/50{,}000 = 1.00\\ EAC &= BAC/CPI = 1{,}25{,}000/1.00 = 1{,}25{,}000\\ ETC &= EAC - AC = 1{,}25{,}000 - 50{,}000 = 75{,}000\\ VAC &= BAC - EAC = 0\\ \text{Forecast duration} &= 3/SPI = 3/1.20 = 2.5\ \text{weeks} \end{aligned}$$

Comment

• Schedule: SV is positive and SPI = 1.20, so the project is ahead of schedule. The work done is 120 % of the planned work (20 units against 16.67 units planned). At this rate the work will take about 2.5 weeks instead of the planned 3 weeks.
• Cost: CV is zero and CPI = 1.00, so the project is on budget. Each Rs 1 spent gives Rs 1.00 of work; the unit cost is exactly as estimated.
• Forecast: if the present cost trend continues, the final cost will be Rs 1,25,000, equal to the budget (variance at completion = 0).

Both schedule and cost are favourable. Controlling statements: continue the present method, maintain productivity, keep records, and watch for later risks.

Answer: SV = Rs 8,333.33, CV = 0, SPI = 1.20, CPI = 1.00; the project is ahead of schedule and on budget.