2).
Now apply it to something you are familiar with:

Method:


1.
Copy numbers from text

2.

a.

Total
budget amount $

.



b.

Cumulative
budget amount $




c.

Cumulative
% of the work completed

Ask
workers



d.

Earned
value $

*



e.

Cumulative
money actually spent




f.

Cost
Performance CPI %

d/



g.

Cost
variance $

de



h.

Schedule
variance

Use
time



*
TBC. Book has two definitions of what to calculate the earned value from.
One is a. The Total Budgeted Cost TBC or b. the Cumulative Budget Cost (CBC).
This point is clarified on page 257. Use the Cumulative
Now try it on this question:
I am going on vacation 10 days. I have budgeted $200 a day for activities such as day trips, scuba diving, windsurfing, visiting ruins etc. I plan on completing one activity per day. In other words I now have an activity or task list, a budget and a schedule.
At day 7 I have only completed 4 of my activities but spent $1600 of my budget because instead of going on trips I hung around the nightclubs in town which I had not planned or budgeted for.
What is the Earned Value of my vacation on day 7?
What is the Cost Performance Indicator (%)?
What is the Cost Variance $
What is the Schedule Variance in days?

Method:




a.

Total
budget amount $

.

$2000.

TBC

b.

Cumulative
budget amount $


1400

CBC

c.

Cumulative
% of the work completed

Ask
workers

4
out of 7 = 57%

Not 4 out of
10

d.

Earned
value $

bxc

800

EV

e.

Cumulative
money actually spent


1600

CAC

f.

Cost
Performance CPI %

d/e

800/1600=50%

CPI

g.

Cost
variance $

de


CV

h.

Schedule
variance (use days)

Use
time equivalent

48 = 4 days behind

SV
