Question

For a project, the following earned value data have been assessed: AC: $ 4,000,000 CV: $ -500,000 SPI: 1.12 BAC: $ 9,650,000 What is the Planned Value (BCWS) of the project at the time of the assessment?

Answer 1

Answer:

The BCWS is also known as Planned Value (PV).

So, in this way, PV = 3.125.000

Explanation:

With the data we can obtain the PV as follows:

First, let's calculate EV as EV = CV + AC.

EV = -500.000 + 4.000.000 = 3.500.000

After this, we can calculate PV with this formula: SPI = EV/PV

PV = EV/SPI

PV = 3.500.000/1.12 = 3.125.000

We can conclude, with these results, that the project actually is forward about the schedule but with an overcost about the budget. In other words, the project advance must be 41%  but now is on 36% due to the negative variance on the costs (CV).