EVM EVM Performance Metrics and Indices 3

Question 1

A negative Cost Variance (CV) of -$75,000 means:

Accepted Answer

The project has spent $75,000 more than the value earned

Answer

A negative CV means AC exceeds EV by $75,000, indicating that more was spent than the value of work accomplished.

Question 2

Which index is considered the best predictor of final project cost performance?

Accepted Answer

CPI

Answer

Research shows CPI is the most stable and reliable predictor of final cost performance, especially after 20% project completion.

Question 3

TCPI based on EAC is calculated as:

Accepted Answer

(BAC - EV) / (EAC - AC)

Answer

TCPI(EAC) = (BAC - EV) / (EAC - AC), measuring the efficiency needed to finish within the revised EAC.

Question 4

A project has CV = +$30,000 and SV = -$20,000. How would you characterize this project?

Accepted Answer

Under budget but behind schedule

Answer

Positive CV means under budget; negative SV means behind schedule, so the project is doing well on cost but lagging on schedule.

Question 5

The Percent Schedule Variance (%SV) is expressed as:

Accepted Answer

(SV / PV) × 100

Answer

%SV = (SV / PV) × 100, normalizing schedule variance as a percentage of the planned value.

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