EVM EVM Baseline and Work Authorization 1 — Questions and Answers
Question 1: What does PMB stand for in an EVM system?
- Performance Measurement Baseline (Correct answer)
- Project Management Budget
- Planned Measurement Baseline
- Program Master Budget
Correct answer: Performance Measurement Baseline
The PMB (Performance Measurement Baseline) is the time-phased budget plan against which project performance is measured.
Question 2: The Performance Measurement Baseline (PMB) equals:
- Contract Budget Base minus Management Reserve (Correct answer)
- BAC plus Management Reserve
- Contract Budget Base minus Undistributed Budget
- Total Allocated Budget minus Management Reserve
Correct answer: Contract Budget Base minus Management Reserve
PMB = Contract Budget Base (CBB) - Management Reserve; the PMB is the portion of the budget allocated to planned work.
Question 3: A Control Account (CA) in EVM is:
- A management control point where scope, budget, and schedule are integrated (Correct answer)
- An accounting ledger for tracking actual costs
- A report summarizing contractor performance
- A WBS element at the lowest level
Correct answer: A management control point where scope, budget, and schedule are integrated
A Control Account is the primary EVM measurement point where scope, schedule, and budget baselines are integrated and performance is tracked.
Question 4: Management Reserve (MR) in EVM is:
- Budget set aside for unplanned in-scope work authorized by management (Correct answer)
- Budget reserved for out-of-scope contract changes
- A contingency fund for schedule risks
- Part of the Performance Measurement Baseline
Correct answer: Budget set aside for unplanned in-scope work authorized by management
MR is held outside the PMB and is released by management authorization only for unforeseeable but in-scope work requirements.
Question 5: Undistributed Budget (UB) in EVM refers to:
- Budget that is part of the CBB but not yet allocated to Control Accounts (Correct answer)
- Budget that has been spent but not yet assigned to a work package
- Reserves held outside the contract budget base
- Budget from expired work packages
Correct answer: Budget that is part of the CBB but not yet allocated to Control Accounts
UB is authorized budget within the CBB that has not yet been formally assigned to Control Accounts and must be distributed promptly.
Question 6: What is a Planning Package in EVM?
- A holder for future scope within a Control Account that is not yet planned in detail (Correct answer)
- A completed work package that has been closed out
- A management reserve allocation
- A summarized WBS element above the Control Account
Correct answer: A holder for future scope within a Control Account that is not yet planned in detail
Planning Packages hold budget for future work within a Control Account that has not yet been broken down into detailed work packages.
EVM EVM Baseline and Work Authorization 1
What does PMB stand for in an EVM system?