EVA; plantation 50 units, 4 weeks, Rs 200

Data

• Work = 50 units at Rs 200/unit in 4 weeks, so BAC = 50 x 200 = Rs 10,000
• Monitoring after 3 weeks: progress = 60 % (30 units); actual rate = Rs 300/unit
• Planned progress after 3 weeks = 3/4 = 75 % (uniform progress assumed)

$$\begin{aligned} PV &= 0.75 \times 10{,}000 = 7{,}500\\ EV &= 0.60 \times 10{,}000 = 6{,}000\\ AC &= 30 \times 300 = 9{,}000 \end{aligned}$$

Calculation

$$\begin{aligned} SV &= EV - PV = 6{,}000 - 7{,}500 = -1{,}500\\ CV &= EV - AC = 6{,}000 - 9{,}000 = -3{,}000\\ SPI &= EV/PV = 6{,}000/7{,}500 = 0.80\\ CPI &= EV/AC = 6{,}000/9{,}000 = 0.667\\ EAC &= BAC/CPI = 10{,}000/0.667 = 15{,}000\\ ETC &= EAC - AC = 15{,}000 - 9{,}000 = 6{,}000\\ VAC &= BAC - EAC = 10{,}000 - 15{,}000 = -5{,}000\\ \text{Forecast duration} &= 4/SPI = 4/0.80 = 5\ \text{weeks} \end{aligned}$$

Comment

• Schedule: SV is negative and SPI = 0.80, so the project is behind schedule. Only 80 % of the planned work is done. At this rate the work will take about 5 weeks instead of the planned 4 weeks (1 week late).
• Cost: CV is negative and CPI = 0.667, so the project is over budget. Each Rs 1 spent gives only Rs 0.67 of work.
• Forecast: if the present cost trend continues, the final cost will be Rs 15,000 against the budget of Rs 10,000 (variance at completion = -Rs 5,000).

Answer: SV = -Rs 1,500, CV = -Rs 3,000, SPI = 0.80, CPI = 0.667; the project is behind schedule and over budget.

Both schedule and cost are unfavourable. Controlling statements: increase productive resources (labour, equipment, extra shifts), improve supervision and productivity, review rates and wastage, re-sequence activities, and revise the plan or budget with the client's approval.

The work is both late and costly: only 60 % is done against 75 % planned, and the unit cost is 50 % above the estimate (Rs 300 against Rs 200).