Earned Value Exercise

Example*: You have a project to build a new fence. The fence is four sided. Each side is to take one day to build and is budgeted for $1,000 per side. The sides are planned to be completed one after the other. Today is the end of day three. Calculate PV, EV, AC, BAC, CV, CPI, SV, SPI, EAC, ETC, and VAC

Status end of day 3 / Day 4 / Day 3 / Day 2 / Day 1 / Activity
Complete, spent $1,000 / S------F / Slide1
Complete, spent $1,200 / -----F / S------PF / Slide2
50% done, spent $600 / PS---S---PF / Slide3
Not yet started / PS------PF / Slide4
Interpretation of the answer / Answer / Calculation
We should have done $3,000 worth of work. / 3,000 / 1,000 + 1,000 + 1,000 / PV
We have actually completed $2,500 worth of work / 2,500 / 1,000 + 1,000 + 500 / EV
We have actually spent $2,800 / 2,800 / 1,000 + 1,200 + 600 / AC
Our project budget is $4,000. / 4,000 / 1,000 + 1,000 + 1,000 + 1,000 / BAC
$300 over budget / -300 / 2,500 – 2,800 / CV
We are only getting 89 cents out of every dollar we put into the project. / .893 / 2,500 / 2,800 / CPI
We are behind schedule / -500 / 2,500 – 3,000 / SV
We are only progressing at 83% of the rate planned / .833 / 2,500 / 3,000 / SPI
We currently estimate that the total project will cost $4,479 / 4.479 / 4,000 / .893 / EAC
We need to spend $1,679 to finish the project / 1,679 / 4.479 – 2,800 / ETC
We currently expect to be $479 over budget when the project is competed. / -479 / 4,000 – 4,479 / VAC

* PMP Exam Prep, P-210