Hover over the red dots for notes.

Answer these questions first and the formulas will be calculated for you.

What is the project budget? $ 755,000.00

How complete is the project? 25%
How complete should the project be? 40%
How much has the project spent? $221,000

Budget at completion 755,000

Actual costs 221,000
Earned value 188,750
Planned value 302,000
Cost variance -32,250
Schedule variance -113,250
Cost performance index 0.85
Schedule performance index 0.63
Estimate at completion 884,000
Estimate to complete 663,000
To-complete performance index (BAC) 1.06
To-complete performance index (EAC) 0.85
Variance at completion -129,000
 Indexes

0.90
0.80
0.70
0.60
0.50
Cost performance index
0.40
Schedule performance
0.30 index
0.20
0.10
0.00

Variances

-20,000

-40,000

-60,000 Cost variance

Schedule variance

-80,000

-100,000

-120,000
Formula

Planned value (PV)

Earned value (EV)

Actual cost (AC)

Budget at Completion (BAC)

Cost variance (CV)

Schedule variance (SV)

Variance at Completion (VAC)

Cost Performance Index (CPI)

Schedule Performance Index (SPI)

Estimate at Completion (EAC)
Standard formula
Estimate at Completion (EAC)
Future work at planned costs formula
Estimate at Completion (EAC)
Initial costs estimates flawed
Estimate at Completion (EAC)
CPI and SPI affect remainder of project
Estimate to Complete
TCPI
Utilizing BAC
TCPI
Utilizing EAC
Definition

What the project should be worth.

What the project is worth

What the project has spent so far

What the project budget is

The difference between earned value and the actual costs

The difference between earned value and planned value

Projection of being over or under budget based on current performance

Shows overall cost efficiency on the project.

Shows overall schedule adherence

Forecasts final project costs based on current performance

Forecasts final project costs based on current performance

Forecasts final project costs based on current performance

Forecasts final project costs based on current performance

Predict how much more the remainder of the project will costs
Predicts likelihood of reaching BAC

Predicts likelihood of reaching EAC

Equation

Percent complete X BAC

EV-AC

EV-PV

BAC-EAC

EV/AC

EV/PV

BAC/CPI

AC + BAC – EV

AC + Estimate for remainder of

project

AC + [BAC-EV/(CPI x SPI)]

EAC-AC
(BAC-EV)/(BAC-AC)

(BAC-EV)/(EAC-AC)
Indication

Positive – under budget

Negative – over budget
Positive – ahead of schedule
Negative – behind schedule
Positive – under budget
Negative – over budget
Greater than 1 – under budget
Less than 1 – over budget
Greater than 1 – ahead of schedule
Less than 1 – behind schedule

Greater than 1 – harder to complete and meet BAC

Less than 1 – easier to complete and meet BAC
Greater than 1 – harder to complete and meet EAC
Less than 1 – easier to complete and meet EAC
FV=PV x (1+ i)n
Future value of money You enter info here Formula components
Present value 100000 100000
Interest 0.06 1.06
Years 3 1.191016
Future value $ 119,101.60

PV=FV/(1+ i)n
Present value of money You enter info here Formula components
Future value 625000 625000
Interest 0.06 1.06
Years 5 1.3382255776
Present value $ 467,036.36
Build Cost 100000
Monthly Build Cost 12000

Buy Cost 85000

Monthly Buy Costs 11000

Difference of Buy and Build 15000

Difference of Monthly Costs 1000
Months to pay for build 15