Exercises

1. In month 9 the following project information is available: actual cost is $2,000,

earned value is $2,100, and planned cost is $2,400. Compute the SV and CV for
the project.

CV = EV – AC = 2,100 – 2,000 = +100

SV = EV – PV = 2,100 – 2,400 = -300

2. On day 51 a project has an earned value of $600, an actual cost of $650, and a
planned cost of $560. Compute the SV, CV, and CPI for the project. What is
your assessment of the project on day 51?

CV = EV – AC = 600 – 650 = -50

SV = EV – PV = 600 – 560 = +40
CPI = EV / AC = 600 / 650 = .92

3. Given the project network and baseline information below, complete the form to
develop a status report for the project at the end of period 4 and the end of
period 8. From the data you have collected and computed for periods 4 and 8,
what information are you prepared to tell the customer about the status of the
project at the end of period 8?

The project appears to be doing nicely. In both periods 4 and 8 the cost variance is
positive—+$300 and +$400, respectively. This suggests a pattern of good cost
variance that is under budget.

The schedule variance is also positive—+$300 and +$400 for period 4 and period 8.
Since Task D is already 25% complete, Task B must have been completed at least one
period early.
 End of Period 4
Actual % EV AC PV CV SV
Task
Complete $ $ $ $ $
A Finished 400 300 400 +100 0
B 50% 1200 1000 800 +200 +400
C 33% 500 500 600 0 -100
D 0% 0 0 0 0 0
E 0% 0 0 0 0 0
Cumulative Totals $2100 $1800 $1800 $+300 $+300

End of Period 8
Actual % EV AC PV CV SV
Task
Complete $ $ $ $ $
A Finished 400 300 400 +100 0
B Finished 2400 2200 2400 +200 0
C Finished 1500 1500 1500 0 0
D 25% 400 300 0 +100 +400
E 33% 300 300 300 0 0
F 0% 0 0 0 0 0
Cumulative Totals $5000 $4600 $4600 $+400 $+400

Note: Completion of the answer sheet requires constant reference to the baseline
figure.

4. Given the following project network, baseline, and status information, develop
status reports for periods 2,4,6,8 and complete the performance indices table.
Calculate the EACf and the VACf . Based on your data, what is your assessment of
the current status of the project? At completion?
The project is performing nicely in terms of cost. The project is currently 23 (000) under
budget and is getting $1.18 worth of work for each dollar spent. In terms of the schedule,
the SV indicates that there is $4 (000) worth of work that was supposed to have been
done by the 8th period that has not been done. This work concerns activity D which is
only 33% complete instead of the planned 55% complete. Since D is a critical activity
the project is behind schedule. The project is 75 percent complete.

In terms the future, if the project continues to earn 1.18 for each dollar spent the
forecasted cost at completion would be 175 (000). The project would therefore be
forecasted to come in 31 (000) under budget. However this may change since the project
has incurred a significant cost over-run so far for activity D which is only 33% complete.
If this pattern continues savings earned on other activities could be quickly absorbed and
the project would not come in under budget. Management needs to investigate Activity
D and take corrective action if possible. Assuming that there is no positive change in
Activity D the project will be completed 1-2 time units late.
Legend
4 C 8
2 2 ES ID EF
0 A 4
6 4 10 SL SL
1 1
LS DURLF
1 4 5
5 D 10 10 F 12

0 0 0 0

5 5 10 10 2 12

0 B 5
0 0 5 E 8
0 5 5 2 2
7 3 10

Status Report: Ending Period 2

Tas % Complete EV AC SV
k PV CV
A 75% 30 25 20 5 10
B 50% 16 12 12 4 4
Cumulative Totals 46 37 32 9 14

Status Report: Ending Period 4

Tas % Complete EV AC SV
k PV CV
A 100% 40 35 40 5 0
B 100% 32 24 24 8 8
Cumulative Totals 72 59 64 13 8
Status Report: Ending Period 6

Tas % Complete EV AC SV
k PV CV
A 100% 40 35 40 5 0
B 100% 32 24 32 8 0
C 75% 36 24 24 10 12
D 0% 0 0 6 0 -6
E 50% 14 10 8 4 6
Cumulative Totals 93 110 27 12

Status Report: Ending Period 8

Tas % Complete EV AC SV
k PV CV
A 100% 40 35 40 5 0
B 100% 32 24 32 8 0
C 100% 48 32 48 16 0
D 33% 6 20 10 -14 -4
E 100% 28 20 28 8 0
Cumulative Totals 93 158 23 -4

Performance Indices Summary

Perio EV AC SPI PCI-B

d PV CPI
2 46 37 32 1.44 1.24 22%
4 72 59 64 1.13 1.22 35%
6 122 93 110 1.11 1.31 59%
8 154 131 158 .97 1.18 75%

Forecast Costs at Completion

(BAC −EV )
EAC f = + AC
( EV / AC )
(206−154 )
¿ +131
(154 /131 )
¿ 175

VACf = BAC - EACf

VACf = 206 - 175

VACf = 31
5. Given the following project network, baseline, and status information, develop
status reports for periods 1-4 and complete the project summary graph (or a
similar one). Report the final SV, CV, CPI and PCIB. Based on your data, what
is your assessment of the current status of the project? At completion?

After 4 time periods the project is roughly 77% (PCIB) complete and is current
getting only 83 cents worth of work for each dollar spent. The project is currently
$10,000 over budget. There is $3,000 worth of work on critical Activity 5 that has
not been completed as planned so the project is behind schedule. Since so much of
the project has been completed the project is expected to come in over budget. The
forecast cost at completion is $78,000 which is $13,000 over budget. Whether the
project will be completed on schedule will depend upon whether Activity 5 can make
up for lost time.
Status Report: Ending Period 1 ($000)
Task % Complete EV AC PV CV SV
1 50% 6 6 4 0 +2
2 40% 6 8 3 -2 +3
3 25% 2 3 4 -1 -2
Cumulative Totals 14 17 11 -3 +3
Status Report: Ending Period 2 ($000)
Task % Complete EV AC PV CV SV
1 Finished 12 13 12 -1 0
2 80% 12 14 10 -2 +2
3 75% 6 8 8 -2 -2
Cumulative Totals 30 35 30 -5 0

Status Report: Ending Period 3 ($000)

Task % Complete EV AC PV CV SV
1 Finished 12 13 12 -1 0
2 80% 12 15 15 -3 -3
3 Finished 8 10 8 -2 0
4 50% 3 4 3 -1 0
5 0% 0 0 0 0 0
6 33.3% 3 4 3 -1 0
Cumulative Totals 38 46 41 -8 -3

Status Report: Ending Period 4 ($000)

Task % Complete EV AC PV CV SV
1 Finished 12 13 12 -1 0
2 Finished 15 18 15 -3 0
3 Finished 8 10 8 -2 0
4 Finished 6 8 6 -2 0
5 30% 3 3 6 0 -3
6 66.7% 6 8 6 -2 0
7 0% 0 0 0 0 0
Cumulative Totals 50 60 53 -10 -3
6. The following labor hours data have been collected for a nanotechnology project
for periods 1 through 6. Compute the SV, CV, SPI, and CPI for each period.
Plot the EV and the AC on the summary graph provided (or a similar one). Plot
the SPI, CPI and PCIB on the index graph provided (or a similar one). What is
your assessment of the project at the end of period 6?

After 6 time periods the project is roughly 66% complete and so far work on the
project has taken 1,600 hours less work than planned. There is 400 hours worth of
work on Activity 4 which was suppose to have been done that has not done. Since
Activity 4 is on the critical path, the project is behind schedule. If schedule is the
number priority, the project manager may want to consider investing some of the
savings on accelerating critical activities.
Status Report: Ending Period 1
Task % Complete EV AC PV CV SV
1 50% 1000 500 1000 +500 0
Cumulative Totals 1000 500 1000 +500 0

Status Report: Ending Period 2

Task % Complete EV AC PV CV SV
1 Finished 2000 1500 2000 +500 0
Cumulative Totals 2000 1500 2000 +500 0

Status Report: Ending Period 3

Task % Complete EV AC PV CV SV
1 Finished 2000 1500 2000 +500 0
2 0% 0 0 1600 0 -1600
3 10% 300 200 500 +100 -200
4 20% 500 500 1000 0 -500
Cumulative Totals 2800 2200 5100 +600 -2300

Status Report: Ending Period 4

Task % Complete EV AC PV CV SV
1 Finished 2000 1500 2000 +500 0
2 50% 1200 1000 2400 +200 -1200
3 30% 900 800 1000 +100 -100
4 40% 1000 1500 2000 -500 -1000
Cumulative Totals 5100 4800 7400 -300 -2300

Status Report: Ending Period 5

Task % Complete EV AC PV CV SV
1 Finished 2000 1500 2000 +500 0
2 Finished 2400 2000 2400 +400 0
3 50% 1500 800 2000 +700 -500
4 60% 1500 1500 2200 0 -700
5 25% 400 400 400 0 0
Cumulative Totals 7800 6200 9000 +1600 -1200

Status Report: Ending Period 6

Task % Complete EV AC PV CV SV
1 Finished 2000 1500 2000 +500 0
2 Finished 2400 2000 2400 +400 0
3 80% 2400 2100 2300 +300 +100
4 80% 2000 1800 2400 +200 -400
5 50% 800 600 800 +200 0
Cumulative Totals 9600 8000 9900 +1600 -300
Indexes
Period SPI CPI PCIB
1 1.00 2.00 .07
2 1.00 1.33 .14 SPI = EV / PV
3 .55 1.27 .19 CPI = EV / AC
4 .69 1.06 .35 PCIB = EV / BAC
5 .87 1.26 .54
6 .96 1.20 .66
8. Part A. You are in charge of the Aurora Project. Given the following project network,
baseline, and status information, develop status reports for periods 1-8 and complete the
performance indices table. Calculate the EACf and VACf. Based on your data, what is
the current status of the project? At completion?
Status Report: Ending Period 1
Tas % Complete E AC P CV SV
k V V
A 25% 25 50 50 -25 -25
Cumulative Totals 25 50 50 -25 -25

Status Report: Ending Period 2

Tas % Complete EV AC PV C SV
k V
A 50% 50 100 100 -50 -50
Cumulative Totals 50 100 100 -50 -50

Status Report: Ending Period 3

Tas % EV AC PV CV SV
k Complete
A 100% 100 200 100 - 0
100
B 0% 0 0 100 0 -100
C 0% 0 0 150 0 -150
Cumulative Totals 100 200 350 -100 -250
Status Report: Ending Period 4
Tas % Complete EV AC SV
k PV CV
A 100% 100 200 100 -100 0
B 60% 150 100 150 50 0
C 50% 225 200 300 25 -75
Cumulative Totals 475 500 550 -25 -75

Status Report: Ending Period 5

Tas % Complete EV AC SV
k PV CV
A 100% 100 200 100 -100 0
B 100% 250 200 250 50 0
C 100% 450 400 450 50 0
Cumulative Totals 800 800 800 0 0

Status Report: Ending Period 6

Tas % Complete EV AC SV
k PV CV
A 100% 100 200 100 -100 0
B 100% 250 200 250 50 0
C 100% 450 400 450 50 0
D 75% 150 100 100 50 50
Cumulative Totals 950 900 900 50 50

Status Report: Ending Period 7

Tas % Complete EV AC SV
k PV CV
A 100% 100 200 100 -100 0
B 100% 250 200 250 50 0
C 100% 450 400 450 50 0
D 100% 200 150 200 50 0
E 20% 60 100 0 40 60
F 5% 15 50 0 -35 15
Cumulative Totals 1075 1100 1000 55 75
Status Report: Ending Period 8
Tas % Complete EV AC SV
k PV CV
A 100% 100 200 100 -100 0
B 100% 250 200 250 50 0
C 100% 450 400 450 50 0
D 100% 200 150 200 50 0
E 100% 300 350 200 -50 100
F 10% 30 100 100 -70 -70
Cumulative Totals 1330 1400 1300 -70 30

Performance Indices Summary

Perio EV AC PV SPI CPI PCI-B
d
1 25 50 50 .50 .50 2%
2 50 100 100 .50 .50 3%
3 100 200 350 .29 .50 5%
4 475 500 550 .86 .95 24%
5 800 800 800 1.00 1.00 40%
6 950 900 900 1.06 1.06 48%
7 1075 1100 1000 1.08 .98 54%
8 1330 1400 1300 1.02 .95 67%

( BAC−EV )
EAC f = + AC
( EV / AC ) VACf = BAC - EACf

(2000−1300)
= +1400
(1330 /1400 )
=2105

-105 = 2000 – 2105

With two-thirds of the project completed the forecast is that the project will be
$105,000 over budget at completion

Part B. You have met with your Aurora project team and they have provided you with
the following revised estimates for the remainder of the project:

 Activity F will be completed at the end of period 12 at a total cost of 500.

 Activity G will be completed at the end of period 10 at a total cost of 150.
 Activity H will be completed at the end of period 14 at a total cost of 200.
Calculate the EACre and VACre. Based on the revised estimates, what is the expected
status of the project in terms of cost and schedule? Between the VACf and the VACre,
which one would you have the greatest confidence in?
Revised Estimates: Ending Period 14
Tas % Complete EV AC SV
k PV CV
A 100% 100 200 100 -100 0
B 100% 250 200 250 50 0
C 100% 450 400 450 50 0
D 100% 200 150 200 50 0
E 100% 300 350 200 -50 100
F 100% 300 500 300 -200 0
G 100% 200 150 200 50 0
H 100% 200 200 200 0 0
Cumulative Totals 2000 2150 2000 -150 0

EACre = AC + ETCre 2150 = 1400 + 750

VACre = BAC - EACre -150 = 2000 – 2150

Revised Estimates indicate that the project will be one month behind schedule and
$150,000 over budget

Choosing between the VACf or the VACre depends upon how much confidence you have
in the accuracy of the revised estimates. Since both activities F and G are underway, one
should be inclined to go with in this case the more conservative VACre.