Part 1: Cost Control Earned Value Management (EVM)

Check the following equations and answer the question below

Earned Value (EV) = Planned Value (PV) * Rate of Performance (RP)

Cost Variance (CV) = EV Actual Cost (AC)

Schedule Variance (SV) = EV PV

Cost Performance Indicator (CPI) = EV / AC

Schedule Performance Indicator (SPI) = EV / PV

Estimate at Completion (EAC) = Budget at Completion (BAC) / CPI

Estimate Complete Time (ECT) = Original time / SPI

Q1: Given the following information for a project with 14 months

PV = $20 000 EV = $ 27 000 AC = $21 000 BAC = $ 100 000

• Describe the project situation in terms of cost and schedule
• Calculate the EAC
• Calculate the ECT

Q2: Given the following information for a project with 14 months

PV = $26 000 EV = $ 19 000 AC = $28 000 BAC = $ 150 000

• Describe the project situation in terms of cost and schedule
• Calculate the EAC
• Calculate the ECT