Earned Value Management Flashcards

A project has a Budget at Completion (BAC) of $200,000, Planned Value (PV) of $80,000, and Earned Value (EV) of $60,000. What is the Schedule Variance (SV)?

Answer: -$20,000

SV = EV - PV = $60,000 - $80,000 = -$20,000, indicating the project is behind schedule.

Which EVM metric would a project manager use to forecast the total cost at project completion based on current performance?

Answer: Estimate at Completion (EAC)

EAC is the forecasted total cost to complete the project based on current performance trends.

If the Cost Performance Index (CPI) is 0.80, what does this indicate about project spending?

Answer: The project is getting $0.80 of value for every $1.00 spent

A CPI of 0.80 means the project delivers only $0.80 worth of planned work for every $1.00 actually spent, indicating cost overrun.

The formula EAC = AC + (BAC - EV) assumes which condition?

Answer: Future work will be performed at the planned rate

This EAC formula assumes remaining work will proceed at the originally planned efficiency, not at the current performance rate.

A project's TCPI calculated using BAC is 1.15. What does this mean for the project team?

Answer: The team needs to work 15% more efficiently on remaining work to meet the BAC

TCPI of 1.15 means the remaining work must be completed at 115% efficiency to stay within the original budget.

On a project with BAC=$500,000, EV=$200,000, and AC=$250,000, what is the Estimate to Complete (ETC) using the typical EAC formula (EAC = AC + BAC - EV / CPI)?

Answer: $375,000

CPI=0.80; EAC = $250,000 + ($300,000/0.80) = $625,000; ETC = EAC - AC = $625,000 - $250,000 = $375,000.

Which of the following best describes the Variance at Completion (VAC)?

Answer: The difference between EAC and BAC showing expected over/under-run

VAC = BAC - EAC, representing how much over or under budget the project is expected to finish.