Consider the following budget: Total budget = $3 million Planned Cost = $630,000 Actual Cost (AC) = $650,000 Earned Value (EV) = $540,000 Is the project ahead or behind schedule? Over or under budget?
Consider the following budget: Total budget = $3 million Planned Cost = $630,000 Actual Cost (AC) = $650,000 Earned Value (EV) = $540,000 Is the project ahead or behind schedule? Over or under budget?
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The project is over budget and behind schedule. Reason: CPI = EV/AC = 540,000/650,000 = .83. SPI = EV/PV = 540,000/630,000 = .86. CPI < 1 = over budget SPI < 1 = behind schedule