Project Management Calculation

Earned value analysis example

I am running a carpentry workshop and have recently received an order for manufacturing 100 doors for an apartment complex in 20 days for a price of $50,000. My estimated cost for making the doors is $42,000. I have a wood supplier who supplies my day's requirements at the start of the day and collects money.

 

After 6 days my workers have completed 32 doors and I figured that I have spend $15,040 on the materials and labour.

Tell me the health of my project.

 

PV (Budgeted cost of work scheduled) =  42,000 / 100 * 30 = 12,600

EV (Budgeted cost of work performed) = 42,000 / 100 * 32 = 13,440

AC (Actual cost of work performed) = 15,040

ETC (Estimate to complete) = 15,040 / 32 * 68 = 31,960

EAC (Estimate at Completion) = 15,040 + 31,960 = 47,000

BAC (Budget at Completion) = 42,000

SV (Schedule Variance) = EV - PV=13,440 - 12,600 = 840

SPI (Schedule Performance Index) = EV / PV = 13,440 / 12,600 = 1.067

CV (Cost Variance) = EV - AC = 13.440 - 15,040 = -1,600

CPI (Cost Performance Index) = EV / AC = 13,440 / 15,040 = 0.89

PC(Percentage Work Completed) = EV / BAC = 13,440 / 42,000 = 32%

PS(Percentage Money Spent) = AC / BAC = 15,040 / 42,000 = 36%

 

EAC = BAC / CPI

Estimate finish time = Original finish time / SPI

 

 If your SV >0 and your SPI > 1.0, you are ahead of schedule and under budget. If your SV = 0 and your SPI > 1.0, you are on budget and ahead of schedule. If your SV < 0 and your SPI 0 and your SPI > 1.0, you are ahead of schedule and under budget. If your SV = 0 and your SPI > 1.0, you are on budget and ahead of schedule. If your SV < 0 and your SPI < 1.0 you are behind in budget and schedule.

Pasted from: <http://certifedpmp.wordpress.com/tag/ev/>

 

CPI greater than 1 is good (under budget):

< 1 means that the cost of completing the work is higher than planned (bad);

= 1 means that the cost of completing the work is right on plan (good);

> 1 means that the cost of completing the work is less than planned (good or sometimes bad).

Pasted from: <http://en.wikipedia.org/wiki/Earned_value_management>