Earned Value Management Flashcards

A Control Account in EVM is best described as:

Answer: A management control point where scope, budget, and schedule are integrated and performance is measured

Control accounts are management points within the WBS where scope, budget, and schedule are integrated for EVM performance measurement.

If a project's TCPI (based on BAC) is 1.15, what does this mean for the project team?

Answer: The remaining work must be completed at 115% efficiency to meet the original budget

TCPI of 1.15 means the team must perform 15% more efficiently on remaining work than originally planned to achieve the BAC.

Which EVM formula provides the EAC when both CPI and SPI are expected to influence future performance?

Answer: EAC = AC + (BAC − EV) / (CPI × SPI)

EAC = AC + (BAC − EV) / (CPI × SPI) accounts for both cost and schedule efficiency in forecasting total project cost.

The 'Level of Effort' (LOE) earned value measurement technique is typically used for:

Answer: Support and management activities that lack discrete measurable outputs

LOE is used for ongoing support activities (like project management or administrative support) where progress cannot be discretely measured.

A project's Actual Cost (AC) is $90,000, EV is $85,000, and BAC is $120,000. Using EAC = AC + (BAC − EV), what is the EAC?

Answer: $125,000

EAC = AC + (BAC − EV) = $90,000 + ($120,000 − $85,000) = $90,000 + $35,000 = $125,000.

Which statement correctly describes the relationship between EAC and ETC?

Answer: ETC = EAC − AC

ETC = EAC − AC; the Estimate to Complete equals the total forecasted cost minus what has already been spent.

In EVM, 'Management Reserve' differs from 'Contingency Reserve' in that management reserve:

Answer: Is held by senior management for unknown unknowns and is not part of the PMB

Management reserve is controlled by senior management for unforeseen work (unknown unknowns) and is excluded from the PMB.