EVM EVM Earned Value Techniques and Methods 2 — Questions and Answers
Question 1: The primary disadvantage of over-using Level of Effort (LOE) in an EVMS is:
- It masks true project performance because LOE never generates a schedule variance (Correct answer)
- It over-reports earned value relative to actual progress
- It increases the budget at completion artificially
- It requires more frequent reporting
Correct answer: It masks true project performance because LOE never generates a schedule variance
Excessive LOE content inflates EV artificially, masking real schedule and cost problems because LOE always earns exactly what was planned.
Question 2: The Milestone technique in EVM credits earned value when:
- A defined, verifiable milestone event is accomplished (Correct answer)
- A task begins
- A percentage of budget is spent
- Time passes on the schedule
Correct answer: A defined, verifiable milestone event is accomplished
The Milestone technique credits 100% of the milestone budget only when the specific, defined milestone deliverable or event is verified as complete.
Question 3: The Units Complete technique measures progress by:
- Counting the number of identical physical units completed against the total planned (Correct answer)
- Estimating subjective percent complete
- Tying progress to elapsed schedule time
- Measuring the proportion of budget spent
Correct answer: Counting the number of identical physical units completed against the total planned
Units Complete earns value per completed unit (e.g., installed panels, tested assemblies), making it highly objective and repeatable.
Question 4: Weighted Milestones technique is best suited for which type of work?
- Long-duration tasks with identifiable interim milestones of varying value (Correct answer)
- Short tasks completing within one reporting period
- LOE support activities
- Material purchases with single delivery dates
Correct answer: Long-duration tasks with identifiable interim milestones of varying value
Weighted Milestones breaks a long-duration work package into interim milestones of different values, providing measurable progress points throughout execution.
Question 5: The Percent Complete technique requires:
- A subjective or physical assessment of the fraction of work accomplished (Correct answer)
- Counting discrete output units
- Time passage only
- Predefined fixed formulas
Correct answer: A subjective or physical assessment of the fraction of work accomplished
Percent Complete is based on an estimate of how much of the scope has been accomplished, which can be subjective unless supported by physical measurement criteria.
Question 6: Which earned value technique should NOT be used for discrete tasks because it never generates a schedule variance?
- Level of Effort (LOE) (Correct answer)
- 0/100
- Milestone
- Units Complete
Correct answer: Level of Effort (LOE)
LOE is inappropriate for discrete tasks because it always earns EV equal to PV, hiding any real schedule performance problems.
EVM EVM Earned Value Techniques and Methods 2
The primary disadvantage of over-using Level of Effort (LOE) in an EVMS is: