Formulas

Question 0

Earned Value (EV)

Answer 0

• Value of work performed expressed in terms of the approved budget assigned to that work for an activity or WBS component
• EV = CV + AC
• Progress Indicator

Question 1

Planned Value (PV)

Answer 1

• Authorized budget assigned to the work to be accomplished on an activity or WBS component
• PV = EV-SV
• Progress Indicator

Question 2

Schedule Performance Index (SPI)

Answer 2

• A measure of schedule efficiency on a project.
• A measure of progress achieved compared to progress planned on a project
• SPI = EV/PV
• Efficiency Indicator
• Predicts the completion date & used with CPI to forecast the project completion estimates
• Value < 1.0 = behind schedule
• Value > 1.0 = ahead of schedule
• Value = 1.0 = right on schedule

Question 3

Cost Performance Index (CPI)

Answer 3

• A measure of cost efficiency on a project.
  A measure of the value of work completed compared to the actual cost on a project
• CPI = EV/AC
• Efficiency Indicator
• Value < 1.0 = Overrun (negative funds)
• Value > 1.0 = Underrun (leftover funds)
• Value = 1.0 = Right on budget

Question 4

Estimate at Completion (EAC)

Answer 4

• The expected total cost of completing all work expressed as the sum of the actual cost to date and estimate to complete.
• May be calculated on performance to date or estimated by the project team based on other factors
• EAC = AC + ETC

Question 5

EAC Forecast

for ETC work performed at the budgeted rate

Answer 5

• This method accepts the actual project performance to date & predicts that all future ETC work to be accomplished at the budgeted rate
• EAC = AC + BAC - EV

Question 6

EAC Forecast

for ETC work performed at the CPI

Answer 6

• Assumes what the project has experienced to date can be expected to continue in the future
• EAC = BAC/[CPI]^C

Question 7

EAC Forecast

for ETC work considering both SPI and CPI factors

Answer 7

• Assumes a negative cost performance and a need to meet a schedule commitment
• EAC = AC + (BAC-EV)

                         (CPI<sup>c</sup> x SPI<sup>c</sup>)

Question 8

To Complete based on Performance Index

(TCPI)

Answer 8

• The calculated projection of cost performance that must be achieved to meet a goal (BAC or EAC)
• If the BAC is no longer reachable, develop a EAC. When the EAC is approved by sponsor it becomes the BAC
• Based on BAC
  
  • TCPI = (BAC - EV)

                       (BAC - AC)

• Based on EAC
  
  • TCPI = (BAC - EV)

                       (EAC - AC)

Question 9

Budget at Completion (BAC)

Answer 9

• The sum of all the budgets established for the work to be performed on a project or WBS component or schedule activity.
• Used to measure, monitor, and control overall cost performance on the project.
• The total planned value for the project.
• BAC = PV^c

Question 10

Lines of Communication

Answer 10

• The number of potential communication channels or paths
• Indicates of the project communications complexity
• n(n-1)/2
• n = number of stakeholders

Question 11

Actual Cost (AC)

Answer 11

• Total cost actually incurred and recorded in accomplishing work performed for an activity or WBS component.
• This AC must correspond in definition and coverage to whatever was budgeted for the PV and the EV.
• AC = EV - CV
• Progress Indicator

Question 12

Cost Variance (CV)

Answer 12

• The amount of budget deficit or surplus at a given time
• relationship between physical work and costs spent
• CV = EV - AC

Question 13

Schedule Variance (SV)

Answer 13

• A measure of schedule perfomance on a project
• The amount of time a schedule is ahead or behind scheduled delivery date
• Efficiency Indicator
• SV = EV - PV

Question 14

Eatimate to Complete (ETC)

Answer 14

• Estimate of costs to complete the project from point in time
• ETC = EAC - AC