PCC Earned Value Management Flashcards

In Earned Value Management (EVM), the Planned Value (PV) represents:

Answer: The authorized budget for work scheduled to be completed by a given date

Planned Value (PV) is the portion of the approved project budget planned to be spent up to a specific point in time based on the schedule.

A project has a Budget at Completion (BAC) of $500,000, an Earned Value (EV) of $200,000, and actual costs (AC) of $250,000. What is the Cost Variance (CV)?

Answer: -$50,000

CV = EV − AC = $200,000 − $250,000 = −$50,000, indicating the project is over budget for the work performed.

A Schedule Performance Index (SPI) of 0.85 indicates that the project:

Answer: Is completing only 85 cents of planned work for every dollar of schedule

SPI = EV/PV; a value of 0.85 means the project is accomplishing only 85% of the planned schedule progress, indicating it is behind schedule.

Which EVM metric is used to forecast the total cost of the project at completion?

Answer: Estimate at Completion (EAC)

The Estimate at Completion (EAC) is the forecasted total project cost based on current performance trends and remaining work estimates.

The Control Account (CA) in an EVM system is best described as:

Answer: A management control point where scope, schedule, and budget are integrated for performance measurement

A Control Account is the intersection of the Work Breakdown Structure (WBS) and Organizational Breakdown Structure (OBS), where EVM metrics are measured and managed.

In EVM, the To-Complete Performance Index (TCPI) based on BAC measures:

Answer: The cost efficiency needed for the remaining work to meet the original budget

TCPI (BAC) = (BAC − EV) / (BAC − AC), representing the cost efficiency required on remaining work to complete within the original budget.