EVM EVM Performance Metrics and Indices 2

Question 1

A project has EV = $450,000 and AC = $540,000. What is the CPI?

Accepted Answer

0.83

Answer

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?

Accepted Answer

0.83

Answer

SPI = EV / PV = $300,000 / $360,000 = 0.833, indicating the project is behind schedule.

Question 3

Cost Variance (CV) is computed as:

Accepted Answer

EV - AC

Answer

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?

Accepted Answer

The remaining work must be completed at a higher efficiency than currently achieved

Answer

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?

Accepted Answer

CPI < 1.0 and SPI < 1.0

Answer

Both indices below 1.0 simultaneously indicate cost overrun and schedule delay, the worst project performance quadrant.

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