PM.340.WC2/PM.340.HSF2 Introduction to…

Problem Set #4: Earned Value

Give your best attempt at solving the attached problems based on the formulas below

Earned Value formulas. 

SV = EV – PV; SPI = EV/PV 

CV = EV – AC; CPI = EV/AC

• CR = SPI x CPI

Prob. 1.  Find the schedule variance(SV) and cost variance (CV) for a project underway that has an actual cost (AC)  of $540,000, a scheduled cost (PV) of $523,000, and an earned value (EV) of $535,000.

• Prob. 2.  A project in progress had an actual cost of $34,000, a planned cost of $42,000, and a value completed of $39,000.  Find the spending (cost) and schedule variances and the CPI and the SPI.  What is the Critical Ratio (CPI times SPI)?

Prob. 3.  A construction project underway exhibits an actual cost of $78,000, and a scheduled cost of $84,000.  The foreman estimates a value completed of $81,000.  What are the spending and schedule variances?  What is the critical ratio?