Earned Value Management Flashcards

What does a negative Schedule Variance (SV = EV - PV) indicate on a program?

Answer: The program is behind schedule

A negative SV (EV < PV) means less work has been earned than was planned, indicating the program is behind schedule.

What does the Budget at Completion (BAC) represent in an EVM framework?

Answer: The total authorized budget for the entire program scope

BAC is the total authorized budget for all work in the program — the sum of all budgets allocated in the PMB plus management reserve.

Which Estimate at Completion (EAC) formula assumes current cost efficiency will continue for the remainder of the program?

Answer: EAC = BAC / CPI

EAC = BAC / CPI projects final cost assuming the cumulative CPI experienced to date will persist throughout the remaining work.

What is the purpose of the To-Complete Performance Index (TCPI)?

Answer: To determine the cost efficiency required to complete remaining work within a specified budget goal

TCPI = (BAC - EV) / (BAC - AC) or (EAC - AC); it shows the future cost efficiency needed to meet the BAC or EAC goal.

In EVM, what is Management Reserve (MR)?

Answer: Budget withheld from the PMB and held for unplanned but in-scope work

Management Reserve is budget held outside the PMB by program management for unknown, unplanned — but in-scope — risks.

What does the Variance at Completion (VAC) formula calculate?

Answer: VAC = BAC - EAC

VAC = BAC - EAC; a negative VAC signals a projected cost overrun at program completion.

What is the Estimate to Complete (ETC) in EVM, and how does it relate to EAC?

Answer: ETC is the expected cost to finish remaining work; EAC = AC + ETC

ETC is the expected cost to complete all remaining work; adding actual costs to date (AC) yields the Estimate at Completion (EAC).