Lets use a simple example and move it away from the business world for now.

You discover you are having guests coming in from out of town next week, but

you are going to be out of town on business this week and the house needs

some attention. You do some

quick calling around to cleaning

services and find Sarah, who will

come out for $20 an hour. You

engage her for a 40-hour week.

You budget that you can afford $800 for this cleanup.

Since youre a project manager, you quickly prepare a list

of 40 one-hour tasks for her and leave them on the counter

as prearranged. However, when you arrive home after

your trip, your list of tasks has checkmarks of completion

by only some of the items.

Answer thef ollowing:

Budget at Completion

PV: Planned Value

EV: Earned Value

SPI: Schedule Performance Index

SV: Schedule Variance

AC: Actual Cost

CPI: Cost Performance Index

CV: Cost Variance

EAC: Estimate at Completion

Note:

Sarah was sick with the flu, so I' m her brother, Mike, and I came instead to help her out. She didn't want to let you down. Sorry, but I only got 32 of your tasks done. I m taking the $800 check to Sarah.

Please feel free call me again