Earned Value Management Flashcards

A project manager is using a cumulative CPI of 0.75 and the project has $400,000 remaining in BAC. Which EAC formula is most appropriate when assuming current inefficiencies will continue?

Answer: EAC = BAC / CPI

EAC = BAC / CPI is used when the current cost performance rate is expected to continue for the rest of the project.

Which EVM term represents the authorized budget assigned to scheduled work?

Answer: Planned Value (PV)

Planned Value (PV) is the authorized budget allocated to the work that was scheduled to be accomplished by a specific point in time.

A project shows SPI = 1.10 and CPI = 0.90. How should this situation be interpreted?

Answer: Ahead of schedule but over budget

SPI > 1.0 means ahead of schedule; CPI < 1.0 means over budget — so the project is doing more work than planned but spending too much to do it.

In EVM, what does the term 'Budgeted Cost of Work Performed' (BCWP) correspond to in modern PMI terminology?

Answer: Earned Value (EV)

BCWP is the older term for Earned Value (EV) — the authorized budget for the work actually accomplished.

A work package has a BAC of $10,000 and is 40% complete. Using the percent complete method, what is the Earned Value?

Answer: $4,000

EV = % Complete × BAC = 0.40 × $10,000 = $4,000.

Which performance measurement baseline (PMB) component is NOT part of the EVM data analysis process?

Answer: Risk register

The performance measurement baseline integrates scope, schedule, and cost baselines; the risk register is a planning document, not a PMB component.

When a project's cumulative CPI drops below 1.0 early in the project, research suggests what will likely happen to the final CPI?

Answer: It will remain near the early cumulative CPI value through project completion

Research by Christensen shows that cumulative CPI rarely improves by more than 0.10 after the 20% project completion point.