Formulas

Question 1

Planned Value

Answer 1

Percent complete of where the project should be.
PV = Percent Planned x Budget at completion (BAC)

PV = 55% x $250,000
PV = 137,500

Question 2

Earned Value

Answer 2

The value of work that you have accomplished.

EV = percent complete x Budget at completion (BAC)

EV = 40% x $250,000
EV = $100,000

Question 3

Cost Variance

Answer 3

The difference between the earned value and the Actual Cost. This tells you if you’re under budget or over budget.

CV = Earned Value (EV) - Actual Cost (AC)
CV = $100 - $112
CV = $-12
The negative indicates that we spent more than what was earned.

Question 4

Schedule Variance

Answer 4

Tells you if you are ahead of schedule or behind schedule.
A negitive number indicates you are behind schedule.
A positive number indicates you are ahead of schedule.

SV = Earned Value (EV) -  Planned value (PV)
SV = $100 - $137 
SV = $-37

Question 5

Cost Performance Index

Answer 5

Tells you if you are over or under on Cost.

CPI = Earned Value (EV) / Actual Value (AC)
CPI = $100 / $112 
CPI = 0.89 

The closer we are to the number “1” the better we are performing on cost.

Question 6

Schedule Performance Index

Answer 6

A measure of how close the project is to being completed compared to the schedule.

SPI = EV / PV
SPI = $100 / 137
SPI = 0.37

an SPI above 1 equates to being ahead of schedule, whereas an SPI under 1 means you’re behind schedule. And, if your SPI is equal to 1, your project is exactly on schedule.

Question 7

Estimate at Completion

Answer 7

Estimate the cost of a project at completion. How much money we are going to have at the end of the project.

EAC = Budget at completion (BAC) / Cost Performance Index (CPI)
EAC = $250 / 0.89
EAC = $280

Question 8

Estimate to Completion

Answer 8

How much more you need to get to the end of the project.

ETC = Estimate at completion (EAC) -  Actual Cost (AC)
ETC = $280 - $112
ETC = $168 

We need $168 more based on our current performance.

Question 9

To-Complete Performance Index (BAC)

Answer 9

TCPI is the calculated Cost Performance Index that is achieved on the remaining work to meet the specified management goal, such as the BAC or the EAC.

TCPI = Time to complete based on Performance Index, BAC.
TCPI = (BAC - EV) / (BAC - AC) ← Notice this is based on BAC.
TCPI = ($250 - $100) / ( $250 - $112)
TCPI = ($150) / ($138)
TCPI = 1.09 

The further below the number “1” the better we are hitting our target. This is above one so we are not likely to hit the BAC target.

Question 10

Time to complete based on Performance Index (EAC)

Answer 10

TCPI is the calculated Cost Performance Index that is achieved on the remaining work to meet the specified management goal, such as the BAC or the EAC.

TCPI = (BAC - EV) / (EAC - AC) ← Notice this is based on EAC.
TCPI = ($250 - $100) / ( $280 - $112)
TCPI = ($150) / ($168)
TCPI = 0.89 

The below the number “1” the better we are hitting our target. This is below one so we are likely to hit the EAC target.

Question 11

Variance at completion

Answer 11

VAC = Budget at completion (BAC) - Estimate at completion (EAC)
VAC = $10,000 - $8,500
VAC = $1,500

If the VAC value is positive, that indicates the project will complete under budget.
If the VAC value is negative, that indicates the project will finish over budget.

Question 12

Three Point Estimate

Answer 12

Used in Schedule management. Finds an average of Optimistic, Most Likely, and Pessimistic (screenshot in folder). Also called the Triangular Distribution.

(O+ML+P)/3 = Estimate
(25+45+75)/3=48.33 hours

Question 13

PERT Estimate

Answer 13

Program Evaluation and Review Technique. This is weighted towards the most likely, 4 times the most likely value. Also called beta distribution (screen shot in folder).

(O+(4ML)+P)/6 = Estimate
(25+(4*45)+75)/6 = 46.66 hours

Question 14

SPACE

Answer 14

.

               Ev
     pi /              /  pi
S                           C
     v -                 -  v
            P     Ac