PCC Performance Measurement & KPIs 2

Question 1

A project has a Budget at Completion (BAC) of $500,000, an Earned Value (EV) of $200,000, and an Actual Cost (AC) of $250,000. What is the Cost Performance Index (CPI)?

Accepted Answer

0.80

Answer

CPI = EV / AC = $200,000 / $250,000 = 0.80, indicating the project is over budget.

Question 2

Which KPI measures the ratio of value earned to the value scheduled to be earned at a given point in time?

Accepted Answer

Schedule Performance Index (SPI)

Answer

SPI = EV / PV and measures how efficiently the project is progressing against the planned schedule.

Question 3

A project's To-Complete Performance Index (TCPI) based on BAC is 1.15. What does this indicate?

Accepted Answer

The project must perform 15% more efficiently than planned to finish on budget

Answer

TCPI > 1.0 means the remaining work must be completed more efficiently than originally planned to meet the BAC.

Question 4

In Earned Value Management, what does a negative Schedule Variance (SV) indicate?

Accepted Answer

The project is behind schedule

Answer

SV = EV - PV; a negative result means less value has been earned than was planned, indicating a schedule delay.

Question 5

Which metric represents the authorized budget assigned to the work scheduled to be accomplished in a given time period?

Accepted Answer

Planned Value (PV)

Answer

Planned Value (PV), also called Budgeted Cost of Work Scheduled (BCWS), is the authorized budget for work planned by a specific date.

(PCC) Project Controls Certification Practice Test

(PCC) Project Controls Certification Practice Test

PCC Performance Measurement & KPIs 2