## EVM Question

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umeshbww
Contributor
Posts: 168
Joined: Fri Aug 15, 2014 3:02 pm

### EVM Question

Mark is in execution phase of the road construction project in a town which has total duration of 12 months and work effort evenly distributed. 3 months down the line during the execution phase mark realizes that there is a change in local law which demands sound proof fencing of the road passing near the hospitals and School. This task was not foreseen and not included in cost baseline of USD Mn 18. Mark submits a Change request to CCB. While total cost budget for project is USD 25 Mn CCB approves to use USD 2 Mn for additional work from Management reserves to baseline. Ion Mark has been informed that there will be fluctuation in price of cement and timely delivery could also be impacted due to shortage in supply. At the end of 6th month Ac = 11Mn, EV = 10Mn & PV = 9Mn. Steering Group is keen to complete the project on time and budget and asks Mark about his opinion on how much more will he need to complete the project. Mark answer should be

20
19.1
22.1
21
GOAL : PMP Certified by 24th Sept 2014 -- ACCOMPLISHED
bs_pani
Super Member
Posts: 663
Joined: Mon Sep 22, 2014 3:36 pm

### Re: EVM Question

The question is asking how much more money i.e. ETC

BAC = 18 baseline + 2 management approved reserve = 20
AC = 11

So ETC = EAC – AC
EAC = AC + (BAC – EV)
= 11 + (20 – 10)
= 21
ETC = 21 – 11 = 10 should be the answer which is not there in choice

If you calculate EAC = AC + (BAC – EV/CPI * SPI) and try to calculate ETC then the value is 10.10

Not sure if I could understood each value correctly. I believe all the value provided after taking into the cement crises.

If you consider the value of each option and add it with the current base line of 20 then its crossing the management reverse of 25
umeshbww
Contributor
Posts: 168
Joined: Fri Aug 15, 2014 3:02 pm

### Re: EVM Question

This question is from iZenbridge Maths Assessment; below is explanation - even i got it wrong first time. Wording is not proper - CCB should ask Mark for estimate at completion.

There is one atypical variance which had resulted in revision of cost baseline as Management reserve of 2Mn was used. However there is also known variances that would occur in future which will impact cost and schedule. In situations where project has to complete on time and variances of both cost and schedule would occur in future,
EAC = AC+ ((BAC-EV)/(SPI*CPI))
AC= 11
BAC= 20
SPI= EV/PV= 10/9 = 1.11
CPI= EV/AC = 10/11= 0.9
EAC = 11+ ((20-10)/(1.11*0.9))= 21
GOAL : PMP Certified by 24th Sept 2014 -- ACCOMPLISHED
bs_pani
Super Member
Posts: 663
Joined: Mon Sep 22, 2014 3:36 pm

### Re: EVM Question

Thanks..

I was looking into my last 2 step of my work sheet and laughing at myself for the silly mistake

11 + (20-10) / .090 * 1.111
Now the blunder 11 * .909 * 1.111 + 20 -10 = 10.10
narayanankuttytp
Posts: 2
Joined: Tue Apr 25, 2017 5:53 am

### Re: EVM Question

Hi

I need help for that question, How we got the AC,EV,
PV
manishpn
Expert
Posts: 2403
Joined: Sat Jan 04, 2014 3:55 pm

### Re: EVM Question

narayanankuttytp wrote:Hi

I need help for that question, How we got the AC,EV,
PV

That information is already provided in the question,