Earned Value Flashcards

A project has CPI = 0.90 and SPI = 1.10. Which statement best describes the project's status?

Answer: Over budget but ahead of schedule

CPI 1.0 means ahead of schedule (earning more than planned).

A PMI-SP practitioner uses a composite EAC formula that weights both CPI and SPI. Which formula reflects this approach?

Answer: EAC = AC + [(BAC - EV) / (CPI × SPI)]

The composite EAC = AC + [(BAC - EV) / (CPI × SPI)] accounts for both cost and schedule performance inefficiencies in forecasting.

During a project status review, EV equals PV. What does this tell the project manager?

Answer: The project is on schedule

When EV = PV, SV = 0 and SPI = 1.0, meaning the project is progressing exactly as scheduled.

What is the primary purpose of Earned Value Management (EVM) in project scheduling?

Answer: To integrate scope, schedule, and cost performance into a single framework

EVM integrates scope, time, and cost baselines to provide an objective measure of project performance and progress.

A project team reports that $75,000 of planned work has been completed, but $90,000 was spent. The planned budget for this period was $80,000. What is the cost variance?

Answer: -$15,000

CV = EV - AC = $75,000 - $90,000 = -$15,000, indicating the project is $15,000 over budget for the work accomplished.

What does TCPI (To-Complete Performance Index) measure when calculated against BAC?

Answer: The required cost efficiency for remaining work to finish within the original budget

TCPI (BAC) = (BAC - EV) / (BAC - AC), showing the efficiency needed for remaining work to stay within the original budget.

In EVM, which baseline serves as the time-phased budget against which project performance is measured?

Answer: Performance Measurement Baseline (PMB)

The Performance Measurement Baseline (PMB) is the time-phased budget that integrates scope and cost for EVM tracking.