Chapter 8 : Project Control : introduction to earned value mgmt

Question 1

3 learning objectives, introduction to earned value

Answer 1

• concept of productivity
• S-curve or cumulative cost curve
• concept of earned value

Question 2

what is EVM

Answer 2

EVM is a project control technique

Question 3

what does EVM stands for

Answer 3

earned value mgmt

Question 4

EVM measures the _______ _____ _______ ________ at any point in time during its ______

Answer 4

EVM measures the performance of a project at any point in time over its duration.

Question 5

What does the EVM integrates to measure the project’s performance and progress?

Answer 5

• cost
• schedule
• scope

Question 6

The ___ ____ _____ is a plot of a project’s ____ _____ _____ with the actual cost of work performed and ____ ____ ___ ___ _____

Answer 6

The cost schedule plan is a plot of a project’s planned cumulative costs that serve as a basis for comparison with the actual cost of work performed and budgeted cost of work performed.

Question 7

what does an S-curve refers to?

Answer 7

the plot of a project’s planned cumulative costs

Question 8

what is BCWS equal to?

Answer 8

PV

Question 9

what is BCWP equal to?

Answer 9

EV

Question 10

what is the meaning of BCWS

Answer 10

budgeted cost of work scheduled.

“authorized budget assigned to the work to be accomplished for an activity”

Question 11

what is the meaning of BCWP

Answer 11

budgeted cost of work performed

“how much of the budget should have been spent based on the actual amount of work performed”

planned expenditures at their actual times

Question 12

formula for earned value

Answer 12

EV = BCWP = % complete x total budgeted cost

Question 13

what is ACWP equal to?

Answer 13

AC

Question 14

what is the meaning of ACWP?

Answer 14

actual of work performed.

“actual cost incurred in accomplishing the work”

Question 15

what is the meaning of BAC?

Answer 15

budget at completion

“total planned value PV of a project, total estimated cost of the project”

Question 16

what is the meaning of CV

Answer 16

cost variance.

“measure of the cost performance on a project”

Question 17

cost variance equation

Answer 17

CV = BCWP - ACWP = EV - AC

Question 18

what does it mean if the CV is positive?

Answer 18

project cost is currently under the budgeted or baseline amount, actual expenditures are less than budgeted

Question 19

what does it mean if the CV is negative?

Answer 19

project cost is currently over the budgeted or baseline amount, actual expenditures are greater than budgeted

Question 20

what is SV

Answer 20

schedule variance.

“measure of schedule performance of a project”

Question 21

SV equation

Answer 21

SV = BCWP - BCWS = EV - PV

Question 22

if SV is positive, it means that

Answer 22

project is ahead of schedule in terms of cost

Question 23

if SV is negative, it means that

Answer 23

project is behind of schedule in terms of cost

Question 24

what is CPI

Answer 24

cost performance index.

“efficiency indicator that measures cost efficiency for work completed”

Question 25

CPI formula

Answer 25

CPI = BCWP / ACWP = EV / AC

Question 26

CPI value greater than 1 means

Answer 26

cost underrun of performance to date

Question 27

what does SPI means?

Answer 27

schedule performance index.

“measures progress achieved compared to progress planned on a project”

Question 28

SPI formula

Answer 28

SPI = BCWP / BCWS = EV / PV

Question 29

SPI greater than 1 means

Answer 29

more work was completed than was planned

Question 30

what is ETC

Answer 30

estimated (remaining cost) to completion

Question 31

ETC formula when efficiency is assumed to stay the same

Answer 31

ETC = (BAC - EV) / CPI

Question 32

ETC formula when efficiency will not stay the same

Answer 32

ETC = BAC - EV

Question 33

what is EAC

Answer 33

project (total cost) estimated at completion

Question 34

formula EAC

Answer 34

EAC = ETC + AC