DPO Project Planning & Scheduling 3 — Questions and Answers
Question 1: In Earned Value Management (EVM), the Schedule Performance Index (SPI) is calculated as:
- Planned Value ÷ Earned Value
- Earned Value ÷ Planned Value (Correct answer)
- Earned Value − Planned Value
- Actual Cost ÷ Earned Value
Correct answer: Earned Value ÷ Planned Value
SPI = EV ÷ PV; a value below 1.0 indicates the project is behind schedule.
Question 2: A DP vessel survey project has EV = $240,000 and AC = $300,000. What is the Cost Performance Index (CPI)?
- 1.25
- 0.80 (Correct answer)
- 0.60
- 1.80
Correct answer: 0.80
CPI = EV ÷ AC = $240,000 ÷ $300,000 = 0.80, indicating the project is over budget.
Question 3: Schedule Variance (SV) is defined as:
- Planned Value minus Actual Cost
- Earned Value minus Planned Value (Correct answer)
- Budget at Completion minus Earned Value
- Actual Cost minus Earned Value
Correct answer: Earned Value minus Planned Value
SV = EV − PV; a negative SV means work is behind schedule relative to what was planned.
Question 4: If SPI = 0.90 on a DP installation project, the project is:
- 10% ahead of schedule
- 10% behind schedule (Correct answer)
- 10% over budget
- On schedule within acceptable tolerance
Correct answer: 10% behind schedule
An SPI of 0.90 means only 90 cents of planned work is being accomplished for every dollar's worth scheduled, indicating an 10% schedule slippage.
Question 5: The Estimate at Completion (EAC) using the CPI forecast formula is:
- AC + (BAC − EV)
- BAC ÷ CPI (Correct answer)
- EV + (BAC − EV) ÷ CPI
- AC + remaining planned value
Correct answer: BAC ÷ CPI
EAC = BAC ÷ CPI assumes the project will continue to perform at its current cost efficiency rate.
Question 6: Budget at Completion (BAC) in EVM represents:
- Actual money spent to date
- The total authorized budget for the project (Correct answer)
- Planned value at the reporting date
- Estimated cost to complete remaining work
Correct answer: The total authorized budget for the project
BAC is the total approved budget assigned to the project scope and is fixed at the baseline.
Question 7: To Complete Performance Index (TCPI) greater than 1.0 indicates:
- The project will finish under budget if current spending continues
- Future work must be performed more efficiently than to date to meet the budget (Correct answer)
- The project should be re-baselined immediately
- CPI has improved compared to last reporting period
Correct answer: Future work must be performed more efficiently than to date to meet the budget
TCPI > 1.0 means remaining work must be done more efficiently than past performance to stay within budget.
DPO Project Planning & Scheduling 3
In Earned Value Management (EVM), the Schedule Performance Index (SPI) is calculated as: