PCC Earned Value Management Flashcards

The Variance at Completion (VAC) formula in EVM is:

Answer: VAC = BAC − EAC

VAC = BAC − EAC; a negative VAC indicates the project is forecasted to overrun the original budget at completion.

In EVM reporting, an Integrated Baseline Review (IBR) is conducted to:

Answer: Verify the PMB is realistic, complete, and reflects the entire authorized scope

An IBR is a formal review between the customer and contractor to confirm the PMB is technically sound, fully scoped, and executable within budget and schedule.

Which EVM earned value technique is most appropriate for short-duration, discrete work packages that are fully complete or not yet started?

Answer: 0/100 rule

The 0/100 rule assigns 0% earned value until the work package is 100% complete, making it ideal for small, short-duration tasks.

Level of Effort (LOE) work in EVM is characterized by:

Answer: Support activities whose value accrues over time with no distinct end product

LOE encompasses ongoing support activities (e.g., project management, reporting) where SV is always zero because EV equals PV by definition.

A CPI of 1.10 on a US government project under ANSI/EIA-748 guidelines would most likely prompt the contractor to:

Answer: Report favorable cost performance and maintain the current approach

A CPI above 1.0 indicates the project is under budget (earning more value than spent), which is a positive condition requiring continued monitoring but no corrective action.

In project controls, an Over-Target Baseline (OTB) is established when:

Answer: Cumulative cost and schedule variances make the original PMB unrealistic for future management

An OTB is authorized when the PMB is so distorted by overruns that it no longer provides useful management information, requiring a rebaselining above the original budget.