Earned Value Calculation Worksheet and Exercise

Earned Value Statistic Earned Value Description/Formula

Answer to exercise #1

Actual Cost (AC) How much money has been spent for work that is completed?

$47,500

Budget at Completion (BAC) How much is budgeted for total project?

$100,000

Earned Value (EV) What is the value of the work already performed?(% complete * BAC)

$40,000 (40% complete)

Planned Value (PV) What is the value of the work expected to be done?

$50,000 (50% complete)

Cost Variance (CV) EV - AC -$7,500 (Bad, negative)

Schedule Variance (SV) EV - PV -$10,000 (Bad Negative)

Cost Performance Index (CPI) EV ÷ AC 0.84 (Bad < 1)

Schedule Performance Index (SPI) EV ÷ PV 0.80 (Bad < 1)

Estimate at Completion (EAC)

Use bolded formula!

BAC ÷ CPI used if no variance has occurred or expect to continue at the same rate as currently: OrAC + ETC used if original estimate was flawed and you developed a new oneOrAC + (BAC – EV) used when current variances won’t be continued into the futureOr(AC + (BAC – EV)) ÷ CPI

Estimate To Complete (ETC) EAC - AC

Variance at Completion BAC - EAC

Exercise 1We are consulting with 10 physician groups across the country. We have budgeted $100,000 ($10K per physician office). The schedule calls for us to visit one physician office per week.

At week 5 we have visited 4 physician offices and spent $47,500 to date.

What is cost and schedule performance of our consulting project?

Exercise 2:We are purchasing and installing an EHR. The cost of all components (software, labor, hardware, fees) is budgeted at $84,000 and is expected to take 6 months.Assume that the work and costs are evenly distributed throughout the schedule.

At the end of month 3 we have completed 60% of the work and spent $50,000.

What is cost and schedule performance of our EHR project?

Exercise 3:We are implementing a health information exchange. The cost of all components (software, labor, hardware, fees) is budgeted at $6,000,000 and is expected to take 2 years.Assume that the work and costs are evenly distributed throughout the schedule.

At the end of month 9 we have completed 20% of the work and spent $2,000,000.

What is cost and schedule performance of our HIE project?