Earned Value Management

You bid the program with a budget of $24 million (BAC = $24 million) with a $2 million management reserve to be completed in 12 months. Although we know the expenditures will not be linear, let’s assume a straight-line relationship between time and budget for this exercise. At month 5 we find we should be at $10 million (BCWS) (straight-line plan of $2 million spent each month * 5 months), we have completed enough work to justify an expenditure of $8 million (BCWP) and our actual costs accrued to date are $6 million. (ACWP) 

1. (25 points) Outline what you believe the current      status of the project is and interpret what the projections mean to you.  Using only this cost data, how can you      project time to complete?
2. (25 points) Outline what you      believe the action plan should be to bring Project  AKU in on-schedule,      on-budget and meet the customer requirements.