EVM Hangout : Question 1

[saket]

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

[kshitij_y]

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

CV= EV-AC
CV= 70 Lacs

[saket]

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 ?

[kshitij_y]

Thanks