PCC PCC Earned Value Management 2 — Questions and Answers
Question 1: Which EVM technique assigns earned value based on the percentage of work physically complete at the time of measurement?
- 0/100 rule
- 50/50 rule
- Percent complete (Correct answer)
- Fixed formula
Correct answer: Percent complete
The percent complete technique credits earned value proportional to the estimated percentage of work actually accomplished, requiring subjective assessment.
Question 2: A Work Breakdown Structure (WBS) is foundational to EVM because it:
- Defines the organizational hierarchy of the project team
- Decomposes project scope into measurable work packages for budget and schedule assignment (Correct answer)
- Lists all project risks and their mitigation strategies
- Establishes the contract payment milestones
Correct answer: Decomposes project scope into measurable work packages for budget and schedule assignment
The WBS breaks total project scope into manageable work packages, which become the basis for assigning budgets and schedules required by EVM.
Question 3: A project has EV = $400,000, AC = $380,000, and PV = $450,000. What does this data indicate?
- The project is over budget and behind schedule
- The project is under budget but behind schedule (Correct answer)
- The project is over budget and ahead of schedule
- The project is under budget and ahead of schedule
Correct answer: The project is under budget but behind schedule
CV = EV − AC = +$20,000 (under budget); SV = EV − PV = −$50,000 (behind schedule), confirming the project is under budget but behind schedule.
Question 4: The Performance Measurement Baseline (PMB) in EVM is:
- The approved integrated scope, schedule, and cost plan against which project performance is measured (Correct answer)
- The contractor's initial bid price before negotiations
- A summary of all earned value metrics collected to date
- The estimate to complete the remaining project work
Correct answer: The approved integrated scope, schedule, and cost plan against which project performance is measured
The PMB is the time-phased budget plan integrating scope, schedule, and cost that serves as the baseline for EVM performance measurement throughout the project.
Question 5: Under ANSI/EIA-748 EVM guidelines, the Management Reserve (MR) is:
- Included in the Performance Measurement Baseline
- Held outside the PMB for unknown risks and authorized scope growth (Correct answer)
- Used to cover schedule float in the project network
- Equal to 10% of the total project budget by regulation
Correct answer: Held outside the PMB for unknown risks and authorized scope growth
Management Reserve is a budget held by management outside the PMB to address unknown-unknown risks and new authorized scope, not measurable under EVM until allocated.
Question 6: Which formula represents the most common method of calculating Estimate at Completion (EAC) when current cost performance is expected to continue?
- EAC = BAC + AC
- EAC = AC + (BAC − EV)
- EAC = BAC / CPI (Correct answer)
- EAC = EV / SPI
Correct answer: EAC = BAC / CPI
EAC = BAC / CPI assumes the cost performance index (CPI) achieved to date will continue for the remainder of the project, giving a realistic forecast.
PCC PCC Earned Value Management 2
Which EVM technique assigns earned value based on the percentage of work physically complete at the time of measurement?