Formulas

Question 1

Earned value analysis (EVA)

Answer 1

Earned value analysis compares the performance measurement baseline to the actual schedule and cost performance. EVM integrates the scope baseline with the cost baseline and schedule baseline to form the performance measurement baseline. EVM develops and monitors three key dimensions for each work package and control account:

Planned value (PV) is the authorized budget assigned to scheduled work.

Earned value (EV) is a measure of work performed expressed in terms of the budget authorized for that work.

Actual cost (AC) is the realized cost incurred for the work performed on an activity during a specific time period.

Question 2

Schedule variance (SV)

Answer 2

Schedule variance (SV) is a measure of schedule performance expressed as the difference between the earned value and the planned value.

SV = EV – PV

Question 3

Cost variance (CV)

Answer 3

Cost variance (CV) is the amount of budget deficit or surplus at a given point in time, expressed as the difference between earned value and the actual cost.

CV = EV – AC

Question 4

Schedule performance index (SPI)

Answer 4

The schedule performance index (SPI) is a measure of schedule efficiency expressed as the ratio of earned value to planned value.

SPI = EV/PV

Question 5

Cost performance index (CPI)

Answer 5

The cost performance index (CPI) is a measure of the cost efficiency of budgeted resources, expressed as a ratio of earned value to actual cost.

CPI = EV/AC

Question 6

To-complete performance index (TCPI)

Answer 6

The to-complete performance index (TCPI) is a measure of the cost performance that is required to be achieved with the remaining resources in order to meet a specified management goal, expressed as the ratio of the cost to finish the outstanding work to the remaining budget.

TCPI based on BAC: (BAC – EV) / (BAC – AC)

TCPI based on EAC: (BAC – EV) / (EAC – AC)

Question 7

Budget at Completion (BAC)

Answer 7

The budget at completion (BAC) is the sum of all budgets established for the work to be performed.

Question 8

Estimate to complete (ETC)

Answer 8

The estimate to complete (ETC) is the expected cost to finish all the remaining project work.

ETC = EAC – AC

Question 9

Estimate at completion (EAC)

Answer 9

The estimate at completion (EAC) is the expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete.

EAC = AC + BAC – EV

EAC = BAC/CPI

Question 10

Number of communication channels

Answer 10

n(n-1)/2