Earned Value Management

Question 1

PV Term

PV Definition

Answer 1

Planned Value

Budgeted value of work planned to be done at a given time

Question 2

EV Term

EV Definition

Answer 2

Earned Value

Budgeted value of work completed at a given time

Question 3

AC Term

AC Definition

Answer 3

Actual Cost (total)
Actual cost of work completed

Question 4

BAC Term

BAC Definition

Answer 4

Budget At Completion

The original cost baseline

Question 5

CV Term
CV Formula
CV Explanation

Answer 5

Cost Variance
EV - AC
Negative is bad; Positive is good

Question 6

SV Term
SV Formula
SV Explanation

Answer 6

Schedule Variance
EV - PV
Negative is bad; Positive is good

Question 7

CPI Term
CPI Formula
CPI Explanation

Answer 7

Cost Performance Index
EV / AC
Under 1 is bad; Over 1 is good

Question 8

SPI Term
SPI Formula
SPI Explanation

Answer 8

Scheduled Performance Index
EV / PV
Under 1 is bad; Over 1 is good

Question 9

EAC Term
EAC Formula (most accurate)
EAC Formula (variances typical)
EAC Formula (variances atypical)
EAC Formula (poor cost/need completion date hit)
EAC Explanation

Answer 9

Estimated At Completion
AC + Bottom-up ETC
BAC / CPI
AC + (BAC-EV)
AC + [ (BAC-EV)/(CPI*SPI)]
Expected total project cost (forecasted based on performance to date)

Question 10

ETC Term
ETC Formula
ETC Explanation

Answer 10

Estimate To Completion
EAC - AC
Expected cost of work remaining (now until project completes)

Question 11

VAC Term
VAC Formula
VAC Explanation

Answer 11

Variance At Completion
BAC - EAC
Expected variance over/under budget
Negative is bad; positive is good

Question 12

TCPI Term
TCPI Formula (within budget)
TCPI Formula (budget not achieved)
TCPI Explanation

Answer 12

To Complete Performance Index
(BAC-EV)/(BAC-AC)
(EAC-EV)/(EAC-AC)
within budget - Cost performance rate needed