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Earned Value ExerciseEarned Value Exercise

Example*:Example*:You have a project to build a new fence. The fenceYou have a project to build a new fence. The fence

is four sided. Each side is to take one day to build and isis four sided. Each side is to take one day to build and is

budgeted for $1,000 per side. The sides are planned to bebudgeted for $1,000 per side. The sides are planned to be

copleted one after the other. Today is the end of day three.copleted one after the other. Today is the end of day three.

!alculate "#, E#, !, %!, !#, !"&, '#, '"&, E!, ET!, and!alculate "#, E#, !, %!, !#, !"&, '#, '"&, E!, ET!, and

#!#!

Status end of day 3Day 4Day 3Day 2Day 1Activity

!oplete, spent$1,000

'((((((((()'lide1

!oplete, spent$1,*00((((()'(((((((((")'lide*

+0 done, spent$-00

"'((('(((")'lide

/ot yet started"'(((((((")'lide

Interpretation of te ans!erAns!er"alculation

e should have done $,000 worth ofwork.

,0001,000 2 1,000 2 1,000"#

e have actually copleted $*,+00worth of work*,+001,000 2 1,000 2 +00E#

e have actually spent $*,300*,3001,000 2 1,*00 2 -00!

4ur project budget is $,000.,0001,000 2 1,000 2 1,0002 1,000

%!

$00 over budget(00*,+00 5 *,300!#

e are only getting 36 cents out of everydollar we put into the project.

.36*,+00 7 *,300!"&

e are behind schedule(+00*,+00 5 ,000'#

e are only progressing at 3 of therate planned.3*,+00 7 ,000'"&

e currently estiate that the totalproject will cost $,86

.86,000 7 .36E!

e need to spend $1,-86 to finish theproject

1,-86.86 5 *,300ET!

e currently e9pect to be $86 overbudget when the project is copeted.

(86,000 5 ,86#!

: ";" E9a "rep, "(*10