Applying EVM Concepts

PM3320: Week 2 Contingency and EVM
Lab 2.1
Applying EVM Concepts
Earned value management, commonly referred to as EVM, is a project management tool that
combines the cost, schedule, and scope information for a project into an integrated baseline. As the
project progresses, the team assesses how much work has been performed or earned against this
baseline. The resulting data is used to assess the past performance of the project and to predict the
final cost and delivery of the project based on the past performance.
Examine the following EVM data for the Acme project, a hypothetical construction project, to view
information on the past and future performance:
Cumulative planned value (PV) = 550
Cumulative earned value (EV) = 475
Cumulative actual cost (AC) = 525
Budget at completion (BAC) = 1000
After evaluating the Acme project, do the following:
1. Calculate the cost variance (CV), schedule variance (SV), cost performance index (CPI), and
schedule performance index (SPI). Using these four metrics, briefly explain whether the
project is ahead or behind for cost and schedule performance.
2. Using the results from the first question, calculate the Estimate at Completion (EAC) and
Variance at Completion (VAC). Analyze the results and explain whether the project is likely to
overrun or underrun the baseline plan and by how much.
Submission Requirements:
Submit your responses along with the detailed calculation in a Microsoft Excel spreadsheet. Make
sure that you include formulas in the spreadsheet so that calculations can be checked. Your analysis
of the data can be included at the bottom of your calculations or submitted in a separate Microsoft
Word file.
Evaluation Criteria:
Click here to download the rubric that will be used to evaluate this lab.
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