Earned Value Management Flashcards

What is the primary purpose of Earned Value Management (EVM) in defense acquisition programs?

Answer: To integrate cost, schedule, and technical performance measurement

EVM integrates cost, schedule, and technical performance to provide objective, data-driven project performance measurement.

Which DFARS clause implements Earned Value Management System (EVMS) requirements for defense acquisition contracts?

Answer: DFARS 252.234-7002

DFARS 252.234-7002 (Earned Value Management System) is the clause that implements EVMS requirements on applicable defense contracts.

What is the Performance Measurement Baseline (PMB)?

Answer: The time-phased budget plan against which project performance is measured

The PMB is the time-phased budget baseline against which actual project performance is measured using EVM metrics.

In EVM terminology, what does Planned Value (PV) — also called Budgeted Cost of Work Scheduled (BCWS) — represent?

Answer: The budgeted cost of work scheduled to be completed by a given date

PV/BCWS represents the authorized budget planned to be accomplished by a specific point in time on the schedule.

What does Earned Value (EV), also called Budgeted Cost of Work Performed (BCWP), measure?

Answer: The budgeted amount for the work that has actually been completed

EV/BCWP is the budget value assigned to the work that has actually been accomplished, regardless of what it actually cost.

What is the formula for the Schedule Performance Index (SPI)?

Answer: SPI = EV / PV

SPI = EV / PV; a value below 1.0 indicates the program is behind schedule relative to plan.

A Cost Performance Index (CPI) of 0.85 on a defense program indicates which of the following?

Answer: For every dollar spent, only $0.85 of budgeted work has been accomplished

CPI = EV / AC; a CPI of 0.85 means the program is overrunning costs — only $0.85 of planned work is completed per $1.00 spent.