Question 4 Information on the project monitoring is as follo

Question 4 Information on the project monitoring is as follows: EV 300 million VND: AC- 250 million VND; and PV- 280 million VND. Please provide your comment on the actual situation of the project at the point of monitoring?

Solution

Going by the formulae

Planned Value = (Planned % Complete) X (BAC) = 280m

Actual Cost = Amount that has been spent till date = 250m

Earned Value = % of completed work X BAC (Budget at Completion) =300m

As we see that we planned to spend 280m till this point of time, whereas we spent 250m. As far as the work progress goes, we have completed higher fraction of work, as earned value is 300m. Therefore we may conclude that till date, we have completed more work (300m worth than 280m) than anticipated and at a cost that it lower than the anticipated cost ( 250m against 280m)