Earned Value

Question 1

What is a cost report?

Answer 1

is usually part of every manager’s monthly report to his superior.

Question 2

What is the origin of a Earned Value Analysis?

Answer 2

It came from the necessity of manager to have a regular and up-date monitoring system which enables him identify the expenditures with specific operations or stages, determine whether the expenditure was cost effective, plot or calculate the trend, and then take immediate action if the trend is unacceptable.

Question 3

What is a Earned Value?

Answer 3

It enables performance to be measured and trends to be evaluated, thus providing the project manager with an effective instrument for further action. The system can be used for all operations where man hours or cost have to be controlled, and most functions in an industrial environment are based on man hours and can be planned with critical path networks. In other words, is the amount of work achieved or value delivered.

Question 4

What type of criteria satisfied EVA?

Answer 4

1) minimum site input
2) Speed
3) Accuracy
4) Value for money
5) Economy
6) Forward looking

Question 5

What type of advantages does EVA have?

Answer 5

1) the percentage complete returns become a simple but effective feedback for updating the network programme.
2) EVA

Question 6

What is a Planned Cost?

Answer 6

Planned cost of task or project at a given moment in time?