Given the following information for a one-year project, answer the following questions. Recall that PV is the planned value, EV is the earned value, AC is the actual cost, and BAC is the budget at completion. PV $22,000 EV $20,000 AC $25,000 BAC $120,000 i. What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project? ii. How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? iii. Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned? iv. Use the SPI to estimate how long it will take to end this project. v. Sketch the earned value chart for this project, using Figure 7-6 as a guide.

An EAC Estimate at completion (EAC) point above 120,000 and to the Budget at completion (BAC) right of the 100,000 BAC point means the 80,000 project is projected to Planned value (PV) cost more $ 60,000 and take longer than 40,000 Actual cost (AC) planned. Earned value (EV) 20,000 2 3 4 5 6 7 8 9 10 11 12 13 Month . = = = Actual cost (AC) - Planned value (PV) = = = Earned value (EV) FIGURE 7-6 Earned value chart for project after five months