You are building a fence for a picnic area at your work. The fence will have four sides, all exactly the same. Your budget for the project is $400, or $100 per side. The schedule for the project is 4 days, one side per day. You started the project on Monday morning. It is now the end of the day on Tuesday. You have 25% of the total work complete. You have spent $400 for the work that is complete. Planned value as on today = 2x400/4 = 200
Earned value as on today = 400x1/4 = 100
Actual cost as on today =400
Schedule variance = EV-PV = 100-200=-100
Cost variance = EV-AC - 100-400--300
SPI = EV/PV = 100/200 =0.5
CPI = EV/AC = 100/400 =0.25
1. If the workers continue to spend at the same rate as they have so far, what do you forecast the entire project will cost?
2. The project CPI = .8 and your SPI = 1.1. What does this mean? Are you over / under budget? Are you over/under schedule? Explain.
3. The project SPlis.92. Does that mean the project is progressing at 92% or you have completed 92% of the project? Explain.
4. The planned value (PV) is $200. The actual cost (AC) is $400. The earned value is $300. What is the schedule variance?