Earned Value Management

Question 1

Define Earned Value Management

Answer 1

A tool for effectively integrating cost, schedule and performance management.
Primary Benefit: Early Warning

Question 2

Earned Value Elements

Answer 2

WBS - Who
Schedule - When
Work Package to Control Account - Who/Cost

Question 3

Fundamental WBS element developed by KTR. Allows both Govt and Contr. to budget and monitor cost/sched/perf.

Answer 3

Control Account

Question 4

Define PMB

Answer 4

Performance Measurement Baseline - a roll up of work packages creating a time phased budget plan.

Question 5

(2) Variances EVM measures

Answer 5

1. (SV) Schedule Variance = (BCWP-BCWS)

2. (CV) Cost Variance = (BCWP-ACWP)

Question 6

ACWP

Answer 6

Actual Cost Work Performed

Question 7

BCWP

Answer 7

Budgeted Cost of Work Performed

Question 8

BCWS

Answer 8

Budgeted Cost of Work Schedule

Question 9

BAC

Answer 9

Budget at Completion

Question 10

EAC (LRE)

Answer 10

Estimate at Completion

EAC = BAC/CPI

Question 11

MR

Answer 11

Management Reserve

Question 12

(2) Root Causes of observed variance

Answer 12

1. One time - variance constant

2. Product/Process factor - variance increases

Question 13

SPI

Answer 13

Schedule Performance Index

SPI = BCWP/BCWS

Question 14

CPI

Answer 14

Cost Performance Index

CPI = BCWP/ACWP