Earned Value Exercise

Exercise 1

Using the following data, calculate the planned and actual monthly budgets through the end of June. Assume the project is planned for 12-month duration and a $250 000 budget.

Activity	Jan	Feb	Mar	Apr	May	Jun	Plan	% Complete	Calc. Value*
Staffing	8	7					15	100
Blueprinting		4	6				10	100
Prototype Development			2	8			10	70
Full Design				3	8	10	21	67
Construction					2	30	32	25
Transfer						10	10	0
Monthly Plan
Cumulative
Monthly Actual	10	15	6	14	9	40
Cumulative Actual

*Calc. Value = product of Plan and % Complete (e.g. for Staffing, 15 x 1 = 15)

Using the data from the above table, calculate the following values:

Schedule Variances
Planned Value (PV)
Earned Value (EV)
Schedule Performance Index (SPI)
Planned Time to Completion

Cost Variances
Actual Cost of Work Performed (AC)
Earned Value (EV)
Cost Performance Index (CPI)
Estimated Cost to Completion

Exercise 2

You are calculating the estimated time to completion for a project of 1-year duration and a budgeted cost of $500 000. Assuming the following information, calculate the Schedule Performance Index (SPI) and the estimated time to completion.

Schedule Variances
Planned Value (PV)	65
Earned Value (EV)	58
Schedule Performance Index (SPI)
Planned Time to Completion

Exercise 3

Assume you have collected the following data for your project. Its budget is $75 000 and its expected to last 4 months. After 2 months, you have calculated the following information about the project:

PV = $45 000

EV = $38 500

AC = $37 000

Calculate SPI and CPI. Based on these values, estimate the time and budget necessary to complete the project. How would you evaluate these findings? Are they good news or bad news?