Earned Value Management Considering that this is a 12-month project that has reached its six months completion so far, and that the Budget at Completion (BAC) was $500,000, the Planned Value (PV) is $300,000, the Earned Value (EV) is $280,000, and the Actual Cost (AC) is $250,000, the following has been calculated: Cost Variance (CV) = 280,000 – 250,000 = 30,000 Schedule Variance (SV) = 280,000 – 300,000 = -20,000 Cost Performance Index (CPI) = 280,000/250,000 = 112% Schedule Performance Index (SPI) = 280,000/300,000 = 93% By using the CPI, we have calculated the estimate at completion (EAC) for this project: 500,000/112.00 = $446,429 By using the SPI, we have estimated that it will take 12.90 months to complete the project. By analyzing the data from the calculations above, it is evident that the project is moving accordingly and as planned in regards to the project cost. With the CV being $30,000, and since it is a positive number, it can be used to indicate that performing the work cost less than planned. The CPI can assist in estimating the projected cost of completing the project, and the calculations above yielded to a percentage above 100%, which means that the project is under budget. The estimate at completion (EAC) was also calculated and indicates that the project will cost less than budget at completion (BAC) by approximately $53,500 to complete the project based on performance to date. However, schedule issues were also discovered, and thus, can be implied to have a negative impact on the project delivery timeline. With the SV being -$20,000, which means that it is negative number, can be used to predict that the project work completed so far took longer than planned to perform. The SPI calculated above can assist in estimating the projected time that will be needed to complete the project. Since the SPI yielded to a percentage less than 100%, it leads to the indication that the project is behind schedule. The SPI was then used to calculate an estimated amount of time in which the project can be completed, which also indicated that it will take longer than planned. According to the estimate, it will take over 12 months to complete the project within the budget. All of the stakeholders need to be alerted immediately of the new revelations based on the indications of the activity calculations. Since the project will not meet or beat the one year deadline, it is imperative for everyone involved and affected by this project to be aware it. Senior management’s assistance might be quite helpful but also very essential at this point in time. A discussion with the project sponsor must need to occur prior to the meeting to inform of the data and revelations. This raises a red flag since the project timeline will be affected and poses as a risk, for which the project sponsor should be able to assist and provide guidance.