CPP Earned Value Management 3 — Questions and Answers
Question 1: To-Complete Performance Index (TCPI) based on BAC is calculated as:
- (BAC − EV) / (BAC − AC) (Correct answer)
- (EV − AC) / (BAC − AC)
- (BAC − AC) / (BAC − EV)
- (BAC − EV) / (EAC − AC)
Correct answer: (BAC − EV) / (BAC − AC)
TCPI (BAC) = (BAC − EV) / (BAC − AC), showing the required cost efficiency for remaining work.
Question 2: A TCPI value greater than 1.0 indicates that the project team must:
- Reduce scope to fit the remaining budget
- Perform remaining work more efficiently than planned (Correct answer)
- Request additional funding immediately
- Compress the schedule using fast-tracking
Correct answer: Perform remaining work more efficiently than planned
TCPI > 1 means remaining work must be done at a higher efficiency than originally planned to meet the budget target.
Question 3: On a project with BAC = $500,000, EV = $200,000, and AC = $220,000, what is the Cost Variance (CV)?
- −$20,000 (Correct answer)
- +$20,000
- −$300,000
- +$300,000
Correct answer: −$20,000
CV = EV − AC = $200,000 − $220,000 = −$20,000, indicating a cost overrun.
Question 4: In EVM, the Performance Measurement Baseline (PMB) is typically represented by:
- The CPI trend over time
- The S-curve of cumulative Planned Value (Correct answer)
- The BAC divided by total project duration
- Cumulative Actual Cost plotted monthly
Correct answer: The S-curve of cumulative Planned Value
The PMB is depicted as a time-phased S-curve of cumulative Planned Value against which performance is measured.
Question 5: Which EVM technique credits work as 50% complete when started and 50% when finished?
- Percent complete
- Weighted milestone
- 50/50 rule (Correct answer)
- Level of effort
Correct answer: 50/50 rule
The 50/50 rule assigns 50% EV at start and the remaining 50% at completion of a work package.
Question 6: A project manager computes EAC = AC + [(BAC − EV) / (CPI × SPI)]. This formula is most appropriate when:
- Only cost performance affects future work
- Both cost and schedule inefficiencies are expected to persist (Correct answer)
- The project is on schedule but over budget
- Management has approved a scope reduction
Correct answer: Both cost and schedule inefficiencies are expected to persist
Combining CPI and SPI in the EAC formula accounts for both cost and schedule impacts on remaining work.
Question 7: Which EVM earned value technique is most appropriate for long-duration, continuous work packages such as project management overhead?
- Fixed formula (0/100)
- Percent complete
- Level of effort (LOE) (Correct answer)
- Weighted milestones
Correct answer: Level of effort (LOE)
Level of Effort (LOE) is used for support-type activities where performance cannot be measured discretely.
CPP Earned Value Management 3
To-Complete Performance Index (TCPI) based on BAC is calculated as: