Earned Value Management Question for ETC ,VAC, CPI,CV , PV and EAC
Earned Value Management is a great way to track performance of your Project's schedule and cost.
Here is a sample Question:
Activity A is worth $200, is 100% complete, and actually cost $200. Activity B is worth $75, is 90% complete, and actually cost $120 so far. Activity C is worth $200, is 75% complete and has cost $175 so far. The total budget is $1000.
What is 1) ETC 2) VAC 3) CPI 4) CV 5) PV 6) EAC
You need to look at the activites as tied to an entire project.
The BAC is $1,000.
1.Activity A's PV -$200
2.Activity B 's PV -$75
3.Activity C's PV -$200
Then start calculating the EV
1.Activity A is BAC*Actual % Complete
2.Activity B is BAC*Actual % Complete
3.Activity C is BAC*Actual % Complete
Total Earned Value = 417.5
AC(Actual Cost) **there is no formular to this
Activity A+ Activity B + Activity C
Total Actual Cost =200+120+175 = 495
(Cost Performance Index)
417.5/495 = 0.8434
417.5 -495 = (-77.5)
EAC=Estimate at Completion
VAC=Variance at Completion
ETC=Estimate to complete
1185.68 - 495 = (-81.715)
The project will not be completing on planned budget.
CPI less than 1 shows you are over budget