Understanding Project Management Metrics

This assignment delves into the critical world of project management metrics. It explores concepts such as Earned Value (EV), Cost Variance (CV), Schedule Performance Index (SPI), Estimate at Completion (EAC), and their significance in project monitoring and control. The analysis includes interpreting these metrics to understand project progress, budget performance, and potential schedule delays. It also highlights the importance of timely adjustments based on these insights to ensure successful project completion.

Running head: PROJECT MANAGEMENT
Project Management
Name of the University:
Author’s Note:
Course ID:

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PROJECT MANAGEMENT
Table of Contents
a) Earned Value (EV):.....................................................................................................................2
b.i) Cost Variance (CV):..................................................................................................................2
b.ii) Schedule Variance (CV):.........................................................................................................2
b.iii) Cost performance index (CPI):...............................................................................................2
b.iv) Schedule performance index (SPI):.........................................................................................3
c) Estimated cost to complete (ETC):..............................................................................................3
d) Estimate at completion (EAC):...................................................................................................3
e) Estimates time at completion / finish (EAC):..............................................................................4
f.i) Depicting the progress of activities, whether it is ahead or behind the schedule work:............4
f.ii) Depicting the progress of activities, whether the budget is over or under:..............................4
References and Bibliographies:.......................................................................................................6

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a) Earned Value (EV):
Particulars Value
Budget at Completion (A) 150,000
Completed work (B) 18%
Earned value (EV) (C = A*B) 27,000
b.i) Cost Variance (CV):
Particulars Value
Earned value (EV) (A) 27,000
Actual cost (B) 35,000
Cost variance (CV) (C = A-B) (8,000)
b.ii) Schedule Variance (CV):
Particulars Value
Earned value (EV) (A) 27,000
Budget at Completion (B) 150,000
Schedule variance (SV) (C = A-B) (123,000)
b.iii) Cost performance index (CPI):
Particulars Value

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Earned value (EV) (A) 27,000
Actual cost (B) 35,000
Cost performance index (CPI) (C = A/B) 77.14%
b.iv) Schedule performance index (SPI):
Particulars Value
Earned value (EV) (A) 27,000
Budget at Completion (B) 150,000
Schedule performance index (SPI) (C=A/B) 18.00%
c) Estimated cost to complete (ETC):
Particulars Value
Budget at Completion (A) 150,000
Earned value (EV) (B) 27,000
Cost performance index (CPI) (C) 77.14%
Estimate cost of complete (ETC) [D = (A-B) / C] 159,444.44
d) Estimate at completion (EAC):
Particulars Value
Budget at Completion (A) 150,000

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Cost performance index (CPI) (B) 77.14%
Estimate at completion (EAC) (C = A/B) 194,444.44
e) Estimates time at completion / finish (EAC):
Particulars Value
Original time estimate (A) 10
Completed work (B) 18%
Estimated time at Completion (ETF) (C = A/B) 55.56
f.i) Depicting the progress of activities, whether it is ahead or behind the schedule work:
From the overall evaluation it could be detected that the progress of activities are behind
schedule, as total work completion could be around 20% in 2 weeks. Instead the overall progress
is only 18%, which is depicting the lag in the project completion work. Therefore, it could be
assumed that the work is behind schedule. Moreover, the estimated time at completion has
relevantly increased over time (Acebes et al., 2015). The Schedule performance mainly indicate
that only 18% of the work is been conducted, where 20% needs to be completed in 2 weeks.
Hence, it could be stated that the work is behind schedule.
f.ii) Depicting the progress of activities, whether the budget is over or under:
The overall situation mainly indicates that due to reduction in activity progress the
overall budget of the organisation is relatively increasing indicating an over estimation of the

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expenses. Therefore, it could be understood that activity progress is indicating an over budget
situation. Hence, the estimation cost of project completion is mainly at 194,444.44, which is
relatively higher than the actual estimated cost of 150,000. This directly indicates that the budget
is getting over the estimated expenses.