EVM EVM Variance Analysis and Interpretation 3

Question 1

What is the To-Complete Performance Index (TCPI) used for in EVM?

Accepted Answer

To determine the cost efficiency required to meet a budget goal

Answer

TCPI calculates the cost efficiency that must be achieved on the remaining work in order to meet either the BAC or EAC budget target.

Question 2

What is the formula for TCPI based on the Budget at Completion (BAC)?

Accepted Answer

TCPI = (BAC - EV) / (BAC - AC)

Answer

TCPI(BAC) = (BAC - EV) / (BAC - AC), dividing the remaining work (in budget terms) by the remaining funds available.

Question 3

When analyzing EVM data, a consistent downward trend in CPI over several reporting periods most likely indicates:

Accepted Answer

A systemic cost performance problem requiring corrective action

Answer

A consistently declining CPI trend signals a systemic efficiency problem — not a temporary fluctuation — that requires root cause analysis and corrective action.

Question 4

Which of the following is a common root cause for an unfavorable Cost Variance (negative CV)?

Accepted Answer

Labor costs higher than originally estimated

Answer

Higher-than-estimated labor costs increase Actual Cost (AC) without a corresponding increase in Earned Value (EV), directly creating a negative Cost Variance.

Question 5

What is 're-planning' in the context of EVM variance recovery?

Accepted Answer

Adjusting the remaining work plan to recover from variances within the approved budget

Answer

Re-planning adjusts the approach for the remaining work to improve performance without changing the approved Performance Measurement Baseline.

EVM Certification Practice Test

EVM Certification Practice Test

EVM EVM Variance Analysis and Interpretation 3