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EVM Hangout : Question 1

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saket
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EVM Hangout : Question 1

Postby saket Thu Dec 19, 2013 6:27 am

Your schedule projected that you would reach 50% completion today on a road construction project that is paving 32 miles of a new highway. Every 4 miles is scheduled to cost 5,000,000. Today, in your status meeting, you announced that you had completed 20 miles of the highway at a cost 18,000,000. Find
a) Planned value of the project
b) Earned value
c) Cost variance
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kshitij_y
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Re: EVM Hangout : Question 1

Postby kshitij_y Thu Dec 19, 2013 5:26 pm

PV = 4 Crore
EV = 2.50 Crore
AC = 1.80 Crore

CV= EV-AC
CV= 70 Lacs
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saket
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Re: EVM Hangout : Question 1

Postby saket Fri Dec 20, 2013 8:12 am

Planned Completion till today 50%
Total Work 32 Miles = 50% Completion mean = 16 Miles planned till today.

Budgeted cost 5,000,000 per 4 miles = 5,000,000/ 4 = per mile = 1,250,000 per mile

Total Budget (BAC) = 32 * 1,250,000 = 40,000,000

Planned Value (expected to complete 50% ) = 20,000,000 (16 * 1,250,000) and 16 Miles

You have completed 20 Miles , EV = 20 * 1,250,000 (budgeted value per mile) = 25,000,000 (since you did 4 miles extra, it is expected to be more than planned value)

Actual Cost = 18,000,0000

Cost Variance = EV – AC = 25,000,000 – 18,000,000 = 7,000,000

Does this make sense ?
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kshitij_y
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Re: EVM Hangout : Question 1

Postby kshitij_y Fri Dec 20, 2013 10:41 am

Thanks

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