--- title: "EVA; BCWS 9,50,000, BCWP 8,00,000, ACWP 10,00,000" subject: "Project Engineering" chapter: 4 key: "semester_7/project_engineering:eva-bcws-bcwp-actual-s73" source: https://www.bctengineer.com/q/semester_7/project_engineering/eva-bcws-bcwp-actual-s73 site: BCT Engineering --- # EVA; BCWS 9,50,000, BCWP 8,00,000, ACWP 10,00,000 Project Engineering · Chapter 4: Project Implementation and Controlling - Asked in: 2073 Shrawan, 7 marks - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/project_engineering/eva-bcws-bcwp-actual-s73 - Whole chapter: https://www.bctengineer.com/md/semester_7/project_engineering/chapter-4 ## Question For a particular project the budgeted cost of work scheduled was Rs 9,50,000 and the budgeted value of the work performed was Rs 8,00,000 at a point of reporting date, i.e. at 20 weeks from starting date. But the actual cost of work performed was Rs 10,00,000 and the project completion time is 45 weeks. The project has an estimated cost of Rs 50,00,000. Based on the above information, draw the features of that project and comment on each parameter of earned value analysis. ## Short answer PV=9,50,000, EV=8,00,000, AC=10,00,000; SV=-1,50,000, CV=-2,00,000, SPI=0.842, CPI=0.800, so behind schedule and over budget. EAC=62,50,000, ETC=52,50,000, forecast duration 53.4 weeks. ## Answer #### Data BCWS = PV = Rs 9,50,000; BCWP = EV = Rs 8,00,000; ACWP = AC = Rs 10,00,000; BAC = Rs 50,00,000; reporting date = week 20 of 45 weeks. #### Calculation $$ \begin{aligned} SV &= EV - PV = 8{,}00{,}000 - 9{,}50{,}000 = -1{,}50{,}000\\ CV &= EV - AC = 8{,}00{,}000 - 10{,}00{,}000 = -2{,}00{,}000\\ SPI &= EV/PV = 8{,}00{,}000/9{,}50{,}000 = 0.842\\ CPI &= EV/AC = 8{,}00{,}000/10{,}00{,}000 = 0.800\\ EAC &= BAC/CPI = 50{,}00{,}000/0.800 = 62{,}50{,}000\\ ETC &= EAC - AC = 62{,}50{,}000 - 10{,}00{,}000 = 52{,}50{,}000\\ VAC &= BAC - EAC = 50{,}00{,}000 - 62{,}50{,}000 = -12{,}50{,}000\\ \text{Forecast duration} &= 45/SPI = 45/0.842 = 53.4\ \text{weeks} \end{aligned} $$ #### Comment - **Schedule:** SV is negative and SPI = 0.842, so the project is **behind schedule**. Only 84.2 % of the planned work is done. At this rate the project will take about 53.4 weeks instead of the planned 45 weeks (about 8.4 weeks late). - **Cost:** CV is negative and CPI = 0.800, so the project is **over budget**. Each Rs 1 spent gives only Rs 0.80 of work. - **Forecast:** if the present cost trend continues, the final cost will be Rs 62,50,000 against the budget of Rs 50,00,000 (variance at completion = -Rs 12,50,000). **Answer: SV = -Rs 1,50,000, CV = -Rs 2,00,000, SPI = 0.842, CPI = 0.800; 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. #### Features of the project ```text Cost (Rs lakh) (not to scale) 50 + o BAC at week 45 | . | . planned (PV) curve | . 10 + o AC 9.5 + o PV 8 + o EV | . | . 0 +------------|-----------------------|---- weeks 0 20 45 ``` - Planned progress = 9.5/50 = 19 %; earned progress = 8/50 = 16 %; money spent = 10/50 = 20 % of the budget. - Since AC > PV > EV at week 20, the project is behind schedule and over budget (the worst situation). #### Comment on each parameter - **SV = -Rs 1,50,000:** work worth Rs 1.5 lakh that was planned is not yet done; the project is behind schedule. - **SPI = 0.842:** only 84.2 % of the planned work is done. - **CV = -Rs 2,00,000:** the work done cost Rs 2 lakh more than its budget. - **CPI = 0.80:** each Rs 1 spent gives Rs 0.80 of work. - **EAC = Rs 62,50,000:** if the trend continues, the project will cost Rs 12.5 lakh more than the BAC. ETC = EAC - AC = Rs 52,50,000 is still to be spent. - **Forecast duration** = 45/0.842 = 53.4 weeks, about 8.4 weeks late. Corrective action is needed: increase resources and productivity, control waste and unit rates, and revise the schedule. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. BCWS, BCWP and ACWP correspond respectively to: A. EV, PV, AC B. AC, EV, PV C. PV, AC, EV D. PV, EV, AC Answer: D. BCWS = planned value, BCWP = earned value, ACWP = actual cost. (Key point: Terminology) 2. PV = 9,50,000, EV = 8,00,000, AC = 10,00,000. SV and CV are: A. SV = -1,50,000, CV = -2,00,000 B. SV = +1,50,000, CV = +2,00,000 C. SV = -2,00,000, CV = -1,50,000 D. SV = -50,000, CV = -2,00,000 Answer: A. SV = 8,00,000 - 9,50,000 = -1,50,000; CV = 8,00,000 - 10,00,000 = -2,00,000. (Key point: Variances) 3. Since AC > PV > EV, the project is: A. Ahead of schedule and under budget B. Behind schedule and over budget (the worst situation) C. Ahead of schedule but over budget D. On schedule and on budget Answer: B. EV below PV means behind; EV below AC means over budget. (Key point: Ordering of values) 4. With BAC = Rs 50,00,000 and CPI = 0.80, EAC is: A. Rs 40,00,000 B. Rs 52,50,000 C. Rs 62,50,000 D. Rs 50,00,000 Answer: C. EAC = 50,00,000/0.8 = 62,50,000, which is Rs 12.5 lakh over BAC. (Key point: Forecast cost) 5. With SPI = 0.842 and a planned duration of 45 weeks, forecast duration is about: A. 38 weeks B. 45 weeks C. 53.4 weeks D. 20 weeks Answer: C. Forecast duration = planned duration / SPI = 45/0.842 = 53.4 weeks, about 8.4 weeks late. 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