A project has just completed its 87th item in the project plan. It was scheduled to have spent $300,000 at this point in the plan, but has actually spent only $250,000. The project manager estimates that the value of the work actually finished is nearly $200,000. What are the spending and schedule variances for the project? What are the SPI and CPI? What is the Critical Ratio?
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Project variables:
Planned Value: $300,000
Actual Cost: $250,000
Earned Value:$200,000
a. CV = EV – AC = $200000 - $250000 = -$50,000
b. SV = EV – PV = $200000 - $300000 = -$100,000
c. SPI = EV / PV = $200000 / $300000 = 0.667
d. CPI = EV/AC = $200000 / $250000 = 0.800
e. CR (Critical Ratio) = SPI × CPI = 0.533
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