Earned Value Management (EVM) Flashcards
7 cards from real Project Management practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Earned Value Management (EVM) flashcards as text
A project has a BAC of $200,000, EV of $80,000, and AC of $100,000. What is the Cost Performance Index (CPI)?
Answer: 0.80
CPI = EV / AC = $80,000 / $100,000 = 0.80, meaning you are getting $0.80 of value for every $1 spent.
Which EVM metric would a project manager use to predict the total cost at project completion if current cost performance continues?
Answer: EAC = BAC / CPI
EAC = BAC / CPI is used when current cost performance is expected to continue for the remainder of the project.
A project's SPI is 1.15. What does this indicate?
Answer: The project is ahead of schedule
SPI > 1.0 means the project is ahead of schedule, earning more value than planned for the time elapsed.
The Estimate to Complete (ETC) assumes remaining work will be done at the budgeted rate. Which formula represents this?
Answer: ETC = BAC - EV
ETC = BAC - EV is used when past variances are atypical and future work is expected to proceed at the original budgeted rate.
What does a negative Schedule Variance (SV) tell a project manager?
Answer: The project has accomplished less work than planned
SV = EV - PV; a negative SV means EV < PV, so less work has been accomplished than was planned for this point in time.
A project manager calculates a To-Complete Performance Index (TCPI) of 1.25. What does this mean?
Answer: The remaining work must be done at $1.25 value per $1 spent to meet the BAC
TCPI = (BAC - EV) / (BAC - AC); a value of 1.25 means each remaining dollar must produce $1.25 of earned value, which is very challenging.
In EVM, what does the term 'Planned Value' represent?
Answer: The authorized budget for scheduled work up to the status date
Planned Value (PV) is the authorized budget assigned to the work scheduled to be accomplished by a specific date.