Interactive: Earned Value Management

This eLearning course will quiz you on the knowledge contained in the Earned Value Management lesson and help identify your weak areas.

You should know and understand the Fundamental concepts of Earned Value Management as presented in Chapter 7 of the PMBOK and the PMP Exam Content Outline available from www.pmi.org

Which of the following statements are True and False about Earned Value Management?

The Following are True:

It is used to monitor and control cost

It is used to monitor and control schedule

Combines scope, schedule, and resource measurements

  • It is used to monitor and control cost
  • It is used to monitor and control schedule
  • Is not applicable to some projects
  • Combines scope, schedule, and resource measurements
  • You cannot expect value generation in your project just because you are spending money

Which variables would be considered "Planned" variables that indicate planned performance for the project?

Answers:

PV

BAC

  • EV
  • PV
  • BAC
  • AC
  • ETC

Which of the following would be considered "Actual" variables that indicate current performance for the project?

Answers:

EV

AC

SV

CPI

SPI

CV


  • EV
  • ETC
  • AC
  • SV
  • CPI
  • EAC
  • SPI
  • CV

Which of the following would be considered "Forecast" variables that indicate future expected performance for the project based on current performance?

Answers:

VAC

ETC

EAC

  • VAC
  • PV
  • ETC
  • EAC
  • TCPI
  • CPI

Which of the following would be considered "Target" variables that indicate the performance that needs to be achieved in order to realize a specific management goal?

Answer:

TCPI

  • CPI
  • VAC
  • TCPI
  • PV
  • BAC

Match the variables with their correct practical description.

Answers:

BAC - The total original expected cost of the entire project

PV - The work that should have been completed at any given point in time.

EV - The work that has actually been completed at any given point in time

SV - How far ahead or behind schedule?

SPI - Schedule efficiency

CV - How much over or under budget?

  • BAC
    The total original expected cost of the entire project
  • PV
    The work that should have been completed at any given point in time.
  • EV
    The work that has actually been completed at any given point in time
  • SV
    How far ahead or behind schedule?
  • SPI
    Schedule efficiency
  • CV
    How much over or under budget?

Match the variables with their correct practical description.

Answers:

CPI - Cost efficiency

EAC - The new expected total cost for the project based on project performance to date

VAC - The difference between the original expected cost of the project (BAC) and the new expected cost of the project (EAC). The estimated total cost savings or overrun

ETC - How much MORE money should it take to complete the remaining work of the project?

TCPI - The cost performance that is required with remaining resources to meet a specified management goal for the project.

AC - The amount of money actually spent to achieve the EV

  • CPI
    Cost efficiency
  • EAC
    The new expected total cost for the project based on project performance to date
  • VAC
    The difference between the original expected cost of the project (BAC) and the new expected cost of the project (EAC). The estimated total cost savings or overrun
  • ETC
    How much MORE money should it take to complete the remaining work of the project?
  • TCPI
    The cost performance that is required with remaining resources to meet a specified management goal for the project.
  • AC
    The amount of money actually spent to achieve the EV

Match the EVM variables with their correct formula.

Answers:

BAC - Sum of all budgets

PV - BAC X Planned % Complete

EV - BAC X Actual % Complete

SV - EV-PV

SPI - EV/PV

CV - EV-AC

  • BAC
    Sum of all budgets
  • PV
    BAC X Planned % Complete
  • EV
    BAC X Actual % Complete
  • SV
    EV-PV
  • SPI
    EV/PV
  • CV
    EV-AC

Match the EVM variables with their correct formula.

Answers:

CPI - EV/AC

EAC - BAC/CPI

VAC - BAC-EAC

ETC - EAC-AC

TCPI - (BAC-EV)/(BAC-AC) or (EAC-AC)

AC - Sum of all actual costs for the project

  • CPI
    EV/AC
  • EAC
    BAC/CPI
  • VAC
    BAC-EAC
  • ETC
    EAC-AC
  • TCPI
    (BAC-EV)/(BAC-AC) or (EAC-AC)
  • AC
    Sum of all actual costs for the project

Place the EVM variables on the formula map where they belong.

  • BAC
  • PV
  • EV
  • SV
  • SPI
  • AC
  • CV
  • CPI
  • EAC
  • VAC
  • ETC
  • TCPI
  • Actual
  • Planned

Which of the following statements are True and False about Earned Value Management?

The Following are True:

TCPI is the cost performance that is required with remaining resources to meet a specified management goal for the project.

TCPI is equal to the Work Remaining divided by the Funds remaining

TCPI can be viewed as the CPI required to achieve a desired management goal

  • TCPI is the same as CPI
  • TCPI is the cost performance that is required with remaining resources to meet a specified management goal for the project.
  • TCPI can be determined for a target of EAC or ETC
  • TCPI is equal to the Work Remaining divided by the Funds remaining
  • TCPI stands for Total Complete Performance Index
  • TCPI can be viewed as the CPI required to achieve a desired management goal

Match the EAC formula to it's correct description.

Answers:

EAC = BAC/CPI:  Assumes CPI will remain constant

EAC = AC + BAC – EV: Accepts actual project performance (AC) and predicts future performance will happen at originally budgeted rate

EAC = AC + Bottom-Up Estimate: If original plan is no longer valid, the PM performs a manual forecast and adds that to the current AC. Considered most accurate.

EAC = AC + [(BAC-EV)/(CPIxSPI)]: Used if schedule performance is a factor in completing the remaining work at the ETC. CPI & SPI can also be weighted according the PM judgement

  • EAC = BAC/CPI
    Assumes CPI will remain constant
  • EAC = AC + BAC – EV
    Accepts actual project performance (AC) and predicts future performance will happen at originally budgeted rate
  • EAC = AC + Bottom-Up Estimate
    If original plan is no longer valid, the PM performs a manual forecast and adds that to the current AC. Considered most accurate.
  • EAC = AC + [(BAC-EV)/(CPIxSPI)]
    Used if schedule performance is a factor in completing the remaining work at the ETC. CPI & SPI can also be weighted according the PM judgement

Based on the EVM problem below, place the values in the correct cell on the table beside their appropriate EVM variable.

  • $400K
  • $100K
  • $75K
  • ($25K)
  • .75
  • $90K
  • ($15K)
  • .83
  • $482K
  • ($82K)
  • $392K
  • 1.05

Match the project performance measurements with their correct interpretation.

Answers:

SPI=1.2, CV=($10K) - Ahead of Schedule, Over Budget

CV=$23K, SV=($5K) - Under Budget, Behind Schedule

CPI=1.01, SPI=1.1 - Under Budget, Ahead of Schedule

CPI=.96, SV=($3K) - Over Budget, Behind Schedule

CV=($12K), SPI=2.0 - Over Budget, Ahead of Schedule

SV=$4K, CPI=1.3 - Ahead of Schedule, Under Budget

SPI=.85, CPI=.99 - Behind Schedule, Over Budget

SV=($25K), CV=$1K - Behind Schedule, Under Budget

  • SPI=1.2, CV=($10K)
    Ahead of Schedule, Over Budget
  • CV=$23K, SV=($5K)
    Under Budget, Behind Schedule
  • CPI=1.01, SPI=1.1
    Under Budget, Ahead of Schedule
  • CPI=.96, SV=($3K)
    Over Budget, Behind Schedule
  • CV=($12K), SPI=2.0
    Over Budget, Ahead of Schedule
  • SV=$4K, CPI=1.3
    Ahead of Schedule, Under Budget
  • SPI=.85, CPI=.99
    Behind Schedule, Over Budget
  • SV=($25K), CV=$1K
    Behind Schedule, Under Budget

Put the steps to solving EVM problems into the proper sequence from Step 1 through Step 5.

The Correct Sequence is:

What unknown variable you are being asked to solve for?

What formulas you can use to solve for it?

What variables are known by information provided?

Plug known variables into the formulas and identify the formula that allows you to solve for the unknown variable.

Solve for the unknown variable

  • What unknown variable you are being asked to solve for?
  • What formulas you can use to solve for it?
  • What variables are known by information provided?
  • Plug known variables into the formulas and identify the formula that allows you to solve for the unknown variable.
  • Solve for the unknown variable