Session 5

Question 1

What is the purpose of the Earned Value Analysis

Answer 1

It measures project performance using scope, cost, and schedule.
It compares amount of work planned vs actually accomplished to determine if cost and schedule is going as planned.

Question 2

What is BCWS

Answer 2

It’s the planned cost of work scheduled.
What is the cost we should have incurred so far?

Question 3

What is BCWP

Answer 3

It’s the planned cost of work completed so far.
= Earned Value
= budgeted cost to date x % work completed

Question 4

What is ACWP

Answer 4

The actual cost of work completed so far.

Question 5

How do you calculate Cost Variance and what does the number mean?

Answer 5

= BCWP - ACWP
= EV - AC
If negative, you are over budget

Question 6

How do you calculate Schedule Variance and what does the number mean?

Answer 6

= BCWP - BCWS
= EV - PV
If negative (EV<PV), you have finished less than planned

Question 7

How do you calculate the Cost Performance Index and what does the number mean?

Answer 7

= BCWP/ACWP
If negative, you are overspending

Question 8

How do you calculate the Schedule Performance Index and what does the number mean?

Answer 8

= BCWP/BCWS
If negative, you are behind schedule

Question 9

How do you calculate the Estimate at Completion?

Answer 9

= BAC / CPI
= Budget at Completion / Cost Performance Index

Question 10

How do you calculate the Estimated Time at Completion?

Answer 10

= Original Estimate / Schedule Performance Index (SPI)