Earned Value Analysis for Cost and Schedule Variances Calculation

This presentation explains the concept of Earned Value Analysis for Cost and Schedule Variances Calculation. It includes solved examples for calculating planned and earned values, actual cost, and cost & schedule variances. It also analyzes Schedule Performance Index and Cost Performance Index. The presentation provides recommendations for project problems and explains how to overcome delays and over-budgeting. The effective utilization of project management principles of change management and control management process is also discussed.

EARNED VALUE
ANALYSIS
Name of the Student:
Student ID:
Name of the University:

CALCULATION OF COST AND
SCHEDULE VARIANCES
 Calculation of planned and earned values, actual cost, and cost &
schedule variances
 Schedule Performance Index and Cost Performance Index would also
be analyzed
 Outcomes,
 For 5.1 BAC = $810,000, PV = $445,000, EV = $421,200, AC =
$395,000, SV = EV – PV = -$23,800, CV = EV – AC = $26,200, SPI =
EV / PV = 0.95, CPI = EV / AC = 1.07
 For 5.2 Project
A
Project
B
Project C Project
D
Project
BAC $250,000 $190,000 $250,000 $500,000 $1,190,00
0
PV $117,500 $95,000 $300,000 $335,000 $876,000
EV $125,000 $123,500 $250,000 $275,000 $773,500
AC $165,000 $150,000 $200,000 $350,000 $865,000.0
0
SV $7,500 $28,500 -$50,000 -$60,000 -
$74,000.00
CV -$40,000 -$26,500 $50,000 -$75,000 -

SUMMARY AND REVIEW OF
CALCULATION OF 5.1
 Calculation of 5.1 was based on the expected and actual cost of
the project activities (A, B, C, and D)
 Expected budget for activity A was $150,000, activity B was
$100,000, activity C was $110,000, and activity D was $450,000
 Total BAC for the project was $810,000
 The SV, CV, SPI, and CPI has been calculated with the help of
calculating the PV, EV, and AC
 SV value has been negative for the project and CV value for the
project is positive
 The negative value has shown that project is behind schedule and
the positive value has shown that the project is cost effective

PROBLEMS AND RECOMMENDATIONS
OF PROJECT OF 5.1
 The problems of project was the delay in execution of the project
activities
 The delay in project can result in forming the issues for the project
execution
 The delay of the project can be sorted out by using more
resources
 The project is ahead in terms of cost and hence, the extra saved
resources can be utilized for gaining the time lapsed

SUMMARY AND REVIEW OF
CALCULATION OF 5.2
 Calculation of 5.2 was based on the expected and actual cost of
the project activities (A, B, C, and D)
 Expected budget for activity A was $250,000, activity B was
$190,000, activity C was $250,000, and activity D was $500,000
 Total BAC for the project was $1,910,000
 The SV, CV, SPI, and CPI has been calculated with the help of
calculating the PV, EV, and AC
 SV value has been negative for the project and CV value for the
project is also negative
 The negative value has shown that project is behind schedule and
the negative value has shown that the project is over budget

PROBLEMS AND RECOMMENDATIONS
OF PROJECT OF 5.2
 The activities of the project had been both delayed and over budgeted
 The project activities had been lagging in terms of expected work
completion
 The exhaustion of the resources is another major factor that had
resulted in negative cost variance for the project
 The utilization of the effective schedule planner would help in
overcoming the delay
 Practically project can be completed in the estimated time duration
with minimum cost variation from the calculated value by using
project management principles of change management and control
management process