Earned Value Management Vocab

Question 1

Planned Value - define

Answer 1

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

Question 2

Earned Value - define

Answer 2

budgeted value of work completed at a given time

Question 3

Actual Cost - define

Answer 3

actual cost of work completed

Question 4

Budget at completion - define

Answer 4

the original cost baseline plus or minus all approved cost changes

Question 5

Estimate at completion - define

Answer 5

expected total project cost (forecasted based on performance to date)

Question 6

estimate to completion - define

Answer 6

expected remaining cost (now until project completion)

Question 7

Variance at completion - define

Answer 7

expected variance over/under budget

Question 8

Cost variance - formula

Answer 8

EV - AC

Negative is bad, Positive is good. Zero is on budget.

Question 9

Schedule Variance - formula

Answer 9

EV - PV

Negative is bad, Positive is good, Zero is on schedule

Question 10

Cost Performance Index - formula

Answer 10

EV/AC

Under 1 is bad, Over 1 is good, Exactly 1 is on budget

Question 11

Schedule Performance Index - formula

Answer 11

EV/PV

Under 1 is bad, Over 1 is good, Exactly 1 is on schedule

Question 12

Estimate at Completion - formula

Answer 12

AC + (BAC-EV)
AC plus work remaining, use budget rate (variances atypical)

(BAC/CPI)
Assumes same rate of spending will continue (variances typical)

AC + [(BAC-EV)/(CPI*SPI)]
Assumes current cost and schedule performance will continue

Question 13

Estimate to Completion - formula

Answer 13

EAC - AC

Expected cost of work remaining

Question 14

Variance at Completion - formula

Answer 14

BAC - EAC

Negative is bad, Positive is good, Zero is on budget

Question 15

To Complete Performance Index - formula

Answer 15

(BAC - EV) / (BAC - AC)
CPI needed to complete project within budget

(BAC - EV) / (EAC - AC)
CPI needed to hit EAC - Assumes original budget unachievable

Question 16

Forward Pass

Answer 16

EF is determined by adding the duration to the ES and subtracting 1
ES of Successor tasks is equal to the latest EF of the Predecessor tasks plus 1

Question 17

Backward Pass

Answer 17

LS is determined by subtracting the duration from the LF and adding 1
LF of Predecessor tasks is equal to the earliest LS of the Successor tasks minus 1

Question 18

Float - define & formula

Answer 18

The float (aka slack) is determined by LF - EF

Question 19

Critical Path

Answer 19

The critical path is the longest duration path through the network diagram. Any delays along the critical path will delay the project.

The tasks that have float can be delayed by the amount of the float and not delay the project.

Question 20

Time-Phased Budget

Answer 20

Determining the budget over time based on the resources needed to complete the work on schedule