EVM

Question 1

Generic Project Control Process

Answer 1

1. Set a Baseline Plan
2. Measure Progress and Performance
3. Compare Actual against Plan
4. Take Action

Question 2

How do you measure project performance

Answer 2

Performance is Measured against Baselines

• Schedule
• Cost
• Scope

Question 3

Earned Value Management (EVM)

Answer 3

Realistic Estimate of Performance against a time-phased budget

Question 4

Earned Value Management Criteria

Answer 4

1. Define the Project Scope (WBS)
2. Plan and schedule the project (CPM)
3. Form cost account plans and budget them to specific functions
4. Establish and maintain a performance measurement baseline (cost baseline)
5. Monitor project performance and forecast the final results (earned value analysis)

Question 5

Three Major Components of EVM

Answer 5

Planned Value (PV)

Earned Value (EV)

Actual Cost (AC)

Question 6

Planned Value (PV)

Answer 6

Authorized cost for the scheduled work on the project or a project activity up to a given point on the timescale. Also called Budgeted Cost of Work Scheduled (BCWS)

Cost Baseline

Question 7

Earned Value (EV)

Answer 7

The value of the actually performed work expressed in terms of the approved budget for a project or a project activity for a given time period. Also called Budgeted Cost of Work Performed (BCWP).

What the project really accomplished

Question 8

Actual Cost (AC)

Answer 8

Total cost actually incurred until a specific point on the timescale in performing the work on a project. Actual Cost of Work Performed (ACWP).

What the project spent or burned to accomplish what it did

Question 9

Cost Variance

Answer 9

(CV) = EV - AC

Earned Value - Actual Cost

Question 10

Earned Value (EV)

Answer 10

EV = BAC * (work completed / total work required)

BAC = Budget at Completion

Question 11

Planned Value (PV)

Answer 11

PV = BAC * (time passed / total schedule time)

BAC = Budget at Completion

Question 12

Schedule Variance (SV)

Answer 12

SV = EV – PV