EVA; 100 precast windows in 20 days

All money values are in Rs lakh.

Data

• BAC = Rs 25 lakh for 100 windows in 20 days, so the budget = Rs 0.25 lakh/window
• At day 10: planned = 50 % of the work; fixed = 40 windows (40 %); expenses = Rs 9 lakh

$$\begin{aligned} PV &= 0.50 \times 25 = 12.50\\ EV &= 40 \times 0.25 = 10.00\\ AC &= 9.00 \end{aligned}$$

Calculation

$$\begin{aligned} SV &= EV - PV = 10.00 - 12.50 = -2.50\\ CV &= EV - AC = 10.00 - 9.00 = 1.00\\ SPI &= EV/PV = 10.00/12.50 = 0.800\\ CPI &= EV/AC = 10.00/9.00 = 1.111\\ EAC &= BAC/CPI = 25.00/1.111 = 22.50\\ ETC &= EAC - AC = 22.50 - 9.00 = 13.50\\ VAC &= BAC - EAC = 25.00 - 22.50 = 2.50\\ \text{Forecast duration} &= 20/SPI = 20/0.800 = 25\ \text{days} \end{aligned}$$

Comment

• Schedule: SV is negative and SPI = 0.800, so the project is behind schedule. Only 80 % of the planned work is done. At this rate the fixing will take about 25 days instead of the planned 20 days (5 days late).
• Cost: CV is positive and CPI = 1.111, so the project is under budget. Each Rs 1 spent gives Rs 1.11 of work.
• Forecast: if the present cost trend continues, the final cost will be Rs 22.50 lakh against the budget of Rs 25.00 lakh (variance at completion = Rs 2.50 lakh saving).

Answer: SV = -Rs 2.50 lakh, CV = Rs 1.00 lakh, SPI = 0.800, CPI = 1.111; the project is behind schedule and under budget.

Cost is favourable but progress is slow. Controlling statements: add resources or work extra shifts to recover the delay, remove bottlenecks (material, equipment, approvals), and keep the present cost discipline.

The company is late (40 windows fixed against 50 planned), but each unit costs less than budgeted (Rs 0.225 lakh against Rs 0.25 lakh).