EVM

Question 1

PV (Planned Value)

Answer 1

PV = Total Budget * % Work planned

Question 2

EV (Earned Value)

Answer 2

EV = Total Budget * % Work completed

EV = Percent Completed * Planned Value

Question 3

Cost Variance

Answer 3

CV = EV - AC

Question 4

Schedule Variance

Answer 4

SV = EV - PV

Question 5

Cost Performance Index

Answer 5

CPI = EV/AC

Question 6

Schedule Performance Index

Answer 6

SPI = EV/PV

Question 7

Estimate at Completion (EAC)

Answer 7

EAC = BAC/CPI

Question 8

Estimated Time to Complete

Answer 8

Original Time Estimate/SPI

Question 9

Positive CV

Answer 9

UNDER budget

Question 10

Negative CV

Answer 10

OVER Budget

Question 11

Positive SV

Answer 11

AHEAD of Schedule

Question 12

Negative SV

Answer 12

BEHIND Schedule

Question 13

CPI >=1

Answer 13

Efficiency in Utilizing
Resources allocated

Question 14

CPI < 1

Answer 14

Not efficient in utilizing
resources allocated

Question 15

SPI >= 1

Answer 15

Efficient in utilizing time

Question 16

SPI < 1

Answer 16

Not Efficient in Utilizing Time

Question 17

What is the cost baseline?

Answer 17

Represents the original, approved budget for the project.
erves as a reference point for measuring and controlling the project’s cost performance.

Question 18

Explain how earned value management can be used to control costs and measure project performance

Answer 18

Cost Control: EVM enables managers to track actual costs against the planned budget (AC vs. EV). By analyzing the Cost Variance (CV), they can take corrective actions to control costs and keep the project within budget.

Performance Measurement: EVM provides a quantitative measure of how the project is performing in terms of cost and schedule adherence. It helps in assessing whether the project is meeting its objectives as planned.

Decision-Making: EVM equips project managers with actionable insights to make informed decisions regarding resource allocation, schedule adjustments, or changes to mitigate any deviations from the plan.