Iesha Brown
Tree Trimming Project Case 13.1
Wil’s project involves shearing 24,000 Douglas Fir Christmas trees for a total contract value of
$30,000. At the point described in the case, Wil has completed 6,000 trees and has spent $7,500.
1. Cost and Schedule Analysis and Earned Value Usage
To evaluate Wil’s project using Earned Value Management (EVM), the following
calculations are used:
Planned Value (PV)
Since 6,000 of 24,000 trees is 25% completion, the planned value is 25% of $30,000,
which equals $7,500.
Earned Value (EV)
Earned value is based on actual work completed. 25% of $30,000 equals $7,500.
Actual Cost (AC)
Wil has spent $7,500 to complete the work.
Comparison:
EV = $7,500
AC = $7,500
PV = $7,500
Because Earned Value equals Actual Cost, Wil is currently on budget. Since the work
completed matches the planned progress, Wil is also on schedule.
Wil is effectively using Earned Value Management principles because his project
performance can be measured using PV, EV, and AC data, even if not formally structured.
2. Setting Up a Scheduling Variance
Wil can set up a schedule variance using the formula:
Schedule Variance (SV) = EV − PV
To implement this system, Wil should break the project into measurable units such as per
