EVM EVM Performance Metrics and Indices 1 — Questions and Answers
Question 1: What is the formula for Cost Performance Index (CPI)?
- EV / AC (Correct answer)
- AC / EV
- EV / PV
- PV / AC
Correct answer: EV / AC
CPI = EV / AC, where a value above 1.0 indicates the project is under budget.
Question 2: A project has a CPI of 0.78. What does this indicate?
- The project is over budget by 22 cents for every dollar spent (Correct answer)
- The project is under budget by 22 cents for every dollar spent
- The project is ahead of schedule by 22%
- The project is behind schedule by 22%
Correct answer: The project is over budget by 22 cents for every dollar spent
A CPI below 1.0 means the project is getting less value than the money spent, indicating a cost overrun.
Question 3: What does the Schedule Performance Index (SPI) measure?
- Efficiency of scheduled time utilization (Correct answer)
- Efficiency of budget utilization
- Ratio of actual cost to planned cost
- Ratio of actual schedule to planned schedule in days
Correct answer: Efficiency of scheduled time utilization
SPI = EV / PV and measures how efficiently the project team is using its scheduled time.
Question 4: A project reports SPI = 1.15. What does this mean?
- The project is ahead of schedule (Correct answer)
- The project is behind schedule
- The project is over budget
- The project is under budget
Correct answer: The project is ahead of schedule
An SPI greater than 1.0 means the project is earning more value than planned, indicating it is ahead of schedule.
Question 5: The To-Complete Performance Index (TCPI) based on BAC is calculated as:
- (BAC - EV) / (BAC - AC) (Correct answer)
- (BAC - AC) / (BAC - EV)
- EV / AC
- (EAC - AC) / (BAC - EV)
Correct answer: (BAC - EV) / (BAC - AC)
TCPI(BAC) = (BAC - EV) / (BAC - AC), representing the required cost efficiency to finish within the original budget.
Question 6: Schedule Variance (SV) is calculated as:
- EV - PV (Correct answer)
- PV - EV
- EV - AC
- AC - EV
Correct answer: EV - PV
SV = EV - PV; a positive SV means more work was accomplished than planned, while a negative SV indicates a schedule delay.
EVM EVM Performance Metrics and Indices 1
What is the formula for Cost Performance Index (CPI)?