Earned Value Management - Monitoring Cost & Schedule

Question 1

BAC

Answer 1

Budget at Completion: Original budget of the project

No formula

Question 2

PV

Answer 2

Planned Value: amount of work that SHOULD be done at this point

PV = Planned % Complete x BAC

Ex: (⅗ days in) x $100 = $60

Question 3

EV

Answer 3

Earned Value (EV): Amount of money worth of work you actually did on the project (not necessarily the money spent though)

EV = Actual % Complete x BAC

Ex: (actually 75% complete) x $100 = $75

Question 4

AC

Answer 4

Actual Cost (AC): Amount of money you already spent on the project

No formula

Question 5

CV

Answer 5

Cost Variance (CV): Work done vs actual money spent

CV = EV - AC

Positive = under budget

Question 6

CPI

Answer 6

Cost performance index: spend rate %

CV = EV / AC

Question 7

SV

Answer 7

Schedule Variance: How much work we should have done vs. how much work you actually did

Positive = ahead of schedule

SV = EV - PV

Ex: $75 - $60 = $15 worth of work you’re ahead of sched by

Question 8

SPI

Answer 8

Schedule Performance Index: The rate (%) of how we are meeting the project schedule.

SPI = EV / PV

Question 9

EAC

Answer 9

Estimate at Completion: Forecasting the total cost of the project at the end based on the current spending rate of the project.

EAC = BAC / CPI

Question 10

ETC

Answer 10

Estimate to Completion: How much more $ will be needed to complete the current project

ETC = EAC - AC

Question 11

VAC

Answer 11

Variance at Completion: The difference between the original budget and new forecasted budget.

Postive = under budget!

VAC = BAC - EAC

Question 12

TCPI

Answer 12

To-Complete Performance Index: How hard you have to work to finish the project within the budget. Over 1 = work harder

TCPI = (BAC – EV) / (BAC – AC)