CCP CCP Earned Value Management 2 — Questions and Answers
Question 1: In EVM, the term 'over-target baseline' (OTB) refers to:
- A replanned baseline that exceeds the original contract budget (Correct answer)
- A baseline set higher than actual costs to motivate the team
- A contingency reserve added above BAC
- An unauthorized scope addition
Correct answer: A replanned baseline that exceeds the original contract budget
An over-target baseline is a rebaselined PMB whose total budget exceeds the original contract budget, often used when a project has overrun significantly.
Question 2: Which variance is calculated as EV minus AC in Earned Value Management?
- Cost Variance (CV) (Correct answer)
- Schedule Variance (SV)
- Variance at Completion (VAC)
- Budget Variance (BV)
Correct answer: Cost Variance (CV)
Cost Variance (CV) = EV - AC; a negative CV indicates actual costs exceed the budgeted cost for work performed.
Question 3: The Budgeted Cost of Work Performed (BCWP) is another name for which EVM metric?
- Earned Value (EV) (Correct answer)
- Planned Value (PV)
- Actual Cost (AC)
- Estimate to Complete (ETC)
Correct answer: Earned Value (EV)
Earned Value (EV) is also called BCWP — the budgeted value of the work that has actually been completed.
Question 4: Which EVM technique for measuring percent complete assigns value only when a task is 100% done?
- 0/100 method (Correct answer)
- 50/50 method
- Apportioned effort
- Level of effort
Correct answer: 0/100 method
The 0/100 method credits no earned value until the task is fully complete, making it suitable for short-duration tasks.
Question 5: Management Reserve (MR) in EVM is best described as:
- Budget held outside the PMB for unknown-unknown risks (Correct answer)
- Contingency for identified schedule risks
- Funds allocated to each Control Account
- Profit margin above the total contract value
Correct answer: Budget held outside the PMB for unknown-unknown risks
Management Reserve is an amount of project budget withheld outside the PMB to address unforeseen in-scope work (unknown unknowns).
Question 6: A Schedule Performance Index (SPI) of 0.90 means the project is:
- Accomplishing only 90 cents of scheduled work for every $1 planned (Correct answer)
- 10% ahead of schedule in time
- Over budget by 10%
- Spending $0.90 for each $1 of work completed
Correct answer: Accomplishing only 90 cents of scheduled work for every $1 planned
SPI = EV / PV = 0.90 indicates the project is behind schedule — only 90% of the planned work value has been accomplished.
CCP CCP Earned Value Management 2
In EVM, the term 'over-target baseline' (OTB) refers to: