Earned Value Management Flashcards

A control account has BCWS of $200,000 and BCWP of $180,000 at the end of the month. What is the schedule variance (SV)?

Answer: -$20,000

SV = BCWP - BCWS = $180,000 - $200,000 = -$20,000, indicating the account is behind schedule.

Which earned value technique is MOST appropriate for a discrete work package spanning two accounting periods with a clear start and end milestone?

Answer: 50/50 method

The 50/50 method earns half the budget at start and half at completion, fitting short discrete tasks that span two periods.

A CAM reports CPI of 0.85 on a control account with a BAC of $500,000. Using a CPI-based EAC formula, what is the estimate at completion?

Answer: Approximately $588,000

EAC = BAC / CPI = $500,000 / 0.85 ≈ $588,235, projecting the overrun continues at the current efficiency.

In an EVMS-compliant baseline, where does management reserve (MR) reside?

Answer: Outside the performance measurement baseline but within the contract budget base

MR is held above the PMB by the program manager and is not part of any control account until formally allocated.

Which condition requires a variance analysis report (VAR) from a Control Account Manager?

Answer: A cost or schedule variance exceeds established thresholds

VARs are triggered when variances breach the dollar or percentage thresholds defined in the program's EVM system description.

A work package planned as level of effort (LOE) will always show what schedule variance?

Answer: Zero, because BCWP always equals BCWS

LOE earns value with the passage of time, so earned value always equals planned value and SV is always zero.

What does the To-Complete Performance Index (TCPI) based on BAC measure?

Answer: The cost efficiency required on remaining work to finish within the budget at completion

TCPI(BAC) = (BAC - BCWP) / (BAC - ACWP), showing the CPI needed on remaining work to hit the BAC.