EVM EVM Performance Metrics and Indices 2 — Questions and Answers
Question 1: A project has EV = $450,000 and AC = $540,000. What is the CPI?
- 0.83 (Correct answer)
- 1.20
- 0.90
- 1.10
Correct answer: 0.83
CPI = EV / AC = $450,000 / $540,000 = 0.833, indicating cost overrun.
Question 2: A project has EV = $300,000 and PV = $360,000. What is the SPI?
- 0.83 (Correct answer)
- 1.20
- 0.75
- 1.33
Correct answer: 0.83
SPI = EV / PV = $300,000 / $360,000 = 0.833, indicating the project is behind schedule.
Question 3: Cost Variance (CV) is computed as:
- EV - AC (Correct answer)
- AC - EV
- EV - PV
- PV - AC
Correct answer: EV - AC
CV = EV - AC; a positive CV means the project is under budget, and a negative CV indicates a cost overrun.
Question 4: If TCPI(BAC) is significantly greater than 1.0, what does it signal?
- The remaining work must be completed at a higher efficiency than currently achieved (Correct answer)
- The project is on track to finish within budget
- The project is ahead of schedule
- The remaining budget is sufficient
Correct answer: The remaining work must be completed at a higher efficiency than currently achieved
A TCPI well above 1.0 means the team must dramatically improve cost efficiency to finish within the original budget.
Question 5: Which combination of CPI and SPI indicates a project that is both over budget and behind schedule?
- CPI < 1.0 and SPI < 1.0 (Correct answer)
- CPI > 1.0 and SPI > 1.0
- CPI < 1.0 and SPI > 1.0
- CPI > 1.0 and SPI < 1.0
Correct answer: CPI < 1.0 and SPI < 1.0
Both indices below 1.0 simultaneously indicate cost overrun and schedule delay, the worst project performance quadrant.
Question 6: At project completion, the SPI always converges to which value?
- 1.0 (Correct answer)
- The final CPI value
- 0
- The BAC/EAC ratio
Correct answer: 1.0
At project completion, EV equals BAC and PV equals BAC, so SPI = EV/PV = 1.0 regardless of earlier schedule performance.
EVM EVM Performance Metrics and Indices 2
A project has EV = $450,000 and AC = $540,000.
What is the CPI?