CPSM CPSM Project Monitoring, Control & Reporting 1 — Questions and Answers
Question 1: What does the Schedule Performance Index (SPI) measure in Earned Value Management?
- The ratio of Earned Value to Planned Value (Correct answer)
- The ratio of Actual Cost to Planned Value
- The total cost variance from the baseline
- The number of milestones completed on time
Correct answer: The ratio of Earned Value to Planned Value
SPI = EV/PV; a value greater than 1.0 means the project is ahead of schedule, while below 1.0 indicates a schedule delay.
Question 2: Which EVM metric represents the monetary value of work actually completed at a given point in time?
- Planned Value (PV)
- Earned Value (EV) (Correct answer)
- Actual Cost (AC)
- Budget at Completion (BAC)
Correct answer: Earned Value (EV)
Earned Value (EV) is the budgeted cost of the work that has been completed, reflecting the value of accomplished work.
Question 3: A project has a CPI of 0.85. What does this indicate about project performance?
- The project is 15% ahead of schedule
- For every dollar spent, only 85 cents of planned value is earned (Correct answer)
- The project will finish 15% under budget
- Schedule efficiency is running at 85% of plan
Correct answer: For every dollar spent, only 85 cents of planned value is earned
CPI = EV/AC; a CPI of 0.85 means only $0.85 of budgeted value is earned for every $1.00 actually spent, signaling a cost overrun.
Question 4: What is the most common formula for Estimate at Completion (EAC) that assumes future work continues at current cost efficiency?
- EAC = BAC + AC
- EAC = AC + (BAC – EV)
- EAC = BAC / CPI (Correct answer)
- EAC = EV / AC
Correct answer: EAC = BAC / CPI
EAC = BAC/CPI projects the final cost assuming the current cost performance index (CPI) will persist through project completion.
Question 5: Which baseline integrates scope, schedule, and cost to form the Performance Measurement Baseline (PMB)?
- Project Charter
- Work Breakdown Structure Dictionary
- Cost Performance Baseline (Correct answer)
- Risk Register
Correct answer: Cost Performance Baseline
The Cost Performance Baseline (PMB) integrates scope, schedule, and cost baselines and is the reference against which earned value performance is measured.
Question 6: A project reports SPI = 1.2 and CPI = 0.9. What is the most accurate assessment?
- The project is on time and within budget
- The project is ahead of schedule but over budget (Correct answer)
- The project is behind schedule but under budget
- The project is behind schedule and over budget
Correct answer: The project is ahead of schedule but over budget
SPI > 1 means more work is being earned than planned (ahead of schedule), while CPI < 1 means more is being spent than earned (over budget).
Question 7: What is the primary purpose of defining variance thresholds in a project monitoring plan?
- To set the maximum allowable project budget
- To define acceptable deviation ranges that trigger escalation when exceeded (Correct answer)
- To measure the defect density per sprint
- To calculate float on the critical path
Correct answer: To define acceptable deviation ranges that trigger escalation when exceeded
Variance thresholds define the acceptable range of deviation from baseline; when exceeded, they trigger corrective actions or escalation to management.
CPSM CPSM Project Monitoring, Control & Reporting 1
What does the Schedule Performance Index (SPI) measure in Earned Value Management?