I need help in Earn value The following eight activities constitute an overall b

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I need help in Earn value

The following eight activities constitute an overall bar chart portrayal of a 6-month project. Three months after the start of construction. Activities A, B, C, D, half of E, and one-fourth of F were completed, for a cost of $20,500. Evaluate the status of the project. Using earned value concepts, determine the schedule variance and the cost variance, the percentage completion, and EAC. State if the project is over or under budget and if it is ahead of or behind schedule. Show detail calculations of all earn value cost parameters.

Explanation / Answer

After 3 months, Actual Cost (AC) = 20,500

Budget of Completion (BAC) = 40,000

Earned Value (EV) = A + B + C + D + 50% of E + 25% of F = (2000+ 8000+2000+1000+8000/2+15000/4) = 20,750

Planned Value (PV) = A + B + C + D + 50% of E + 33.3% of F = (2000+ 8000+2000+1000+8000/2+15000/3) = 22000

Now,

Cost Variance = Earned Value – Actual Cost

CV = EV – AC = 20750 – 20,500 = 250

Schedule Variance = Earned Value – Planned Value = 20750 - 22000 = -1,250

Percentage completion = EV / BAC = 20750 / 40000 = 51.87%

Cost Performance Index (CPI) = EV / AC = 20750 / 20500 = 1.01

Estimate at Completion (EAC) = BAC/CPI = 40000 / 1.01 = $ 39,603.96

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