Earned Value

Chapter 7 - Cost Management Earned Value Exercise

Given the following information - Let us assume that the figures are a representation of your Capstone Project. Your project projections for One Year are included below. We will need you to answer the following questions. Please refer to Chapter 7 of your Course Book to Recall that:

• PV is the planned value,
• EV is the earned value,
• AC is the actual cost, and
• BAC is the budget at completion.

Given the Following Figures (from your Capstone Project) - Please Answer the proceeding Questions:

PV = $22,000

EV = $20,000

AC = $25,000

BAC = $120,000

A. What is the Cost Variance? (Please List the Question and then complete the Answer - Write the Actual Calculations and the Answer!)

B. What is the Schedule Variance? (Please list the Question and then complete the Answer - Write the Actual Calculations and the Answer!))

C. What is the Cost Performance Index (CPI)? (Please list the Question and then complete the Answer - Write the Actual Calculations and the Answer!))

D. What is the Schedule Performance Index (SPI) for the Project? (Please list the Question and then complete the Anwer - Write the Actual Calculations and the Answer!))

E. How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget?

(All Answers must be in complete Sentences and Paragraph form. No one-liners and No one-word answers.- Justify your Answer!)

F. Use the CPI to Calculate the estimate at completion (EAC) for this Project. Is the Project performing better or worse than Planned?

(All Answers must be in complete Sentence and Paragraph form. No one-liners and No one-word answers. - Justify your Answer!)

G. Use the SPI to estimate how long it will take to finish the project?

(All Answers must be in complete Sentence and Paragraph form. No one-liners and No one-word answers. - Justify your Answer!)

H. Now, with the Figures and numbers you calculated previously, Sketch the Earned Value Chart for this Project. You can Glean (use) Figure 7-6, which is found in the Coursebook and the PowerPoint as a guide in completing this last portion.