Formulas

Question 1

Schedule Variance (SV) Formula

Answer 1

SV = EV - PV (Schedule Variance = Earned Value - Planned Value)

EV>PV = ahead of schedule, favorable
EV

Question 2

Cost Variance (CV)

Answer 2

CV = EV - AC (Cost Variance = Earned Value - Actual Cost)

EV>AC = under budget, favorable
EV

Question 3

Schedule Performance Index (SPI)

Answer 3

SPI = EV/PV (Schedule Performance Index = Earned Value divided by Planned Value)

Greater than 1.0 = better than planned productivity
Less than 1.0 = worse than planned productivity

Expressed as decimal or percentage (i.e. 87% of planned productivity)

Question 4

Cost Performance Index (CPI)

Answer 4

CPI = EV/AC (Cost Performance Index = Earned Value divided by Actual Cost)

Greater than 1.0 = better than planned spending efficiency
Less than 1.0 = worse than planned spending efficiency

Expressed as decimal (i.e. .96 means we are getting 96 cents in value on every dollar spent)

Question 5

Estimate at Completion Cost (EAC) with Typical Variance (i.e. forces beyond PM control)

Answer 5

EAC = BAC / CPI (Estimate at Completion = Budget at Completion divided by Cost Performance Index)

Original compared to spending efficiency

Question 6

Estimate at Completion Schedule (EAC) with Typical Variance (i.e. forces beyond PM control)

Answer 6

EAC = BAC / SPI (Estimate at Completion = Budget at Completion divided by Schedule Performance Index)

Original compared to productivity

Question 7

Estimate at Completion Cost (EAC) with Atypical Variance (i.e. forces within PM control like learning curve or event unlikely to recur)

Answer 7

EAC = AC + (BAC - EV) (Estimate at Completion = Actual Cost + (budget at completion - earned value)) aka expenses incurred to date plus remaining expenses