Question #165431
Suppose you have a budgeted cost of a project at PKR 100,000,000. The project is to be completed in 12 months. After a month, you have completed 5 percent of the project at a total expense of 1,000,000. The planned completion should have been 10 percent.Using the project status calculate PV, EV, AC, BAC, CV, SPI and CPI.
Expert's answer
BAC 100,000,000
PV 10,000,000
EV 5,000,000
AC 1,000,000
CV 4,000,000
CPI 5
SPI 0.5
Explanation:
BAC = Budgeted cost of the project = 100,000,000
PV = Planned value = Planned completion percent x BAC = 10% x 10000000 = 0.10 x 100000000=10000000
EV = Earned value = Actual completion percent x BAC = 5% x 100,000000 = 0.05 x 100000000 = 5000000
AC = Actual cost incurred in the project = 1,000,000
CV = Cost Variance = EV - AC = 5000000 - 1000000= 4000000
CPI = Cost Performance Index = EV / AC = 5000000 / 1000000 = 5
SPI = Schedule Performance Index = EV / PV = 5000000 / 10000000 = 0.5
