EVM

Question 1

Control costs

Answer 1

The process of monitoring the status of the project to update the project costs and managing changes to the cost baseline

Question 2

Cost baseline

Answer 2

The approved version of the project budget.

the cost baseline includes contingency reserves

Question 3

Earned Value Management (EVM)

Answer 3

Integrate scope, schedule and cost
Allows early identification of trends and variances from the baseline
Include contingencies but does not include management reserves

Question 4

EMV 4 key data points

Answer 4

planned value PV
Earned value EV
Actual cost AC
Budget at completion BAC

Question 5

Variance is from the approved baseline

Answer 5

Scheduled variance SV
Cost variance CV
Schedule Performance Index SPI
Cost performance index CPI

Question 6

Forecasting is about making estimates or predictions of conditions in the project’s future

Answer 6

Estimate to complete ETC

Estimate at completion EAC

Question 7

Planned Value PV

Answer 7

estimated value of the work planned to be done as of a particular date.
PV is calculated BEFORE actually doing the work
Total PV for the project = budget at completion (BAC)

Question 8

Cumulative PV

Answer 8

= total PV = BAC = Project total budget

Question 9

Current PV

Answer 9

The approved budget for activities scheduled to be performed during a given period. This period could represent days, weeks, months.

Question 10

Earned value EV

Answer 10

the cost of work that has actually been completed as of a particular date

Question 11

Most common method for allocating budget/credit to a task

Answer 11

%Complete = the % of work performance is credited according to the actual % completed

Question 12

Actual cost AC

Answer 12

from invoices, deposits, receipts

Question 13

Schedule Variance SV

Answer 13

= EV - PV

answers the question “ Are we ahead or behind schedule”

Question 14

SV%

Answer 14

= SV/EV

-20% SV means that, to-date, 20% of the work that was planned to be completed has not been accomplished

Question 15

Cost Variance

Answer 15

=EV - AC

over or under budget

Question 16

CV%

Answer 16

negative CV% indicates project is over budget in terms of %

Question 17

Schedule performance index SPI

Answer 17

shows the efficiency of a project team in utilizing time(schedule) in a project.
= EV/PV
>1 indicates very efficient in schedule
<1 indicates less efficient

Question 18

Cost performance index CPI

Answer 18

the efficiency in utilizing resources (money) in a project

=EV/CV

Question 19

Estimate at completion EAC

Answer 19

forecast how much money and time you expect to spend to get the project performance
“How much we are expecting the total project to cost”

Question 20

EACt

EACc

Answer 20

=Project duration/SPI

=BAC/CPI

Question 21

Estimate to completion ETC

Answer 21

how much more the project will cost from this point forward until the completion
ETC=EACc - AC

Question 22

Variance at completion VAC

Answer 22

the difference between what the project was originally expected to cost vs. what it is now expected to cost
= BAC - EACc

Question 23

To-Complete cost performance indicator

TCPI

Answer 23

How efficiently must we use our remaining resources.
the future required cost efficiency needed to achieve a target BAC
=(BAC - EV) / (BAC - AC)
TCPI >1 indicates the utilization of the resources is not good enough, the remainder can be harder

Question 24

To-Complete Schedule performance indicator

TSPI

Answer 24

How efficiently must we use our remaining time.
= (BAC - EV) / (BAC - PV)
TSPI indicates the project need to work harder in utilizing the remainning time