I'm learning about project management and currently having confusion about getting Planned Value(PV) in Earned Value Management calculations. Here's the question,
You are a Project Manager for LAK Super, a supermarket chain, and are currently working on a project to build a new outlet. The planned value (PV) for the foundation and the frame is $500,000, After five months, you do a performance measurement analysis, You are currently not ahead of schedule. The actual costs for the foundation and frame were $650,000 up to this point where only 80% of the work is complete.
I tried to calculate the SPI(Schedule Performance Index) and CPI(Cost Performance Index) of the scenario considering 80% of the project as the planned value.
So planned value(PV) = $500, 000 * 80/100 = $ 400,000 project is not ahead so, SPI <= 1 Actual cost(AC) = $ 650,000 SPI = Earned Value(EV) / Planned Value so, EV/PV <= 1 EV/400,000 <= 1 Considering best case scenario(on schedule), Ev = $400,000 so, cost variance(CV) = EV - PV = - $ 250,000 CPI = EV/AC = 8/13 (Over budget) SPI = EV/PV = 1 (on schedule)
It seems the calculations returns the correct answer but I'm not sure what I did is correct or wrong. Is the PV $500,000 or $400,000. Any guidance is greatly appreciated.