Foundational Concepts & Principles Flashcards

Which guideline set is the industry standard defining EVMS requirements in the United States?

Answer: EIA-748 32 guidelines

EIA-748 defines the 32 guidelines that a compliant Earned Value Management System must satisfy.

During an Integrated Baseline Review (IBR), what is the CAM most likely to be asked to demonstrate?

Answer: Understanding and ownership of their control account's scope, schedule, budget, and risks

IBRs verify that the baseline is realistic and that CAMs understand and own their scope, schedule, budget, and associated risks.

A CAM wants to move budget from a completed, underrun work package into a struggling one to hide a variance. This practice is:

Answer: Prohibited, because retroactive budget changes distort performance history

Shifting budget to mask variances is a prohibited retroactive change that destroys the integrity of performance data.

What is the correct order of budget flow-down in an EVMS?

Answer: Contract budget base to performance measurement baseline to control accounts to work packages

Budget flows from the contract budget base down through the PMB into control accounts and then into work packages and planning packages.

Management reserve may properly be used to:

Answer: Budget newly identified in-scope work arising from realized risks

Management reserve covers unforeseen in-scope work, never variance elimination, out-of-scope effort, or profit.

Who typically controls the release of management reserve to a control account?

Answer: The program manager, through a documented budget change process

Management reserve is owned by the program manager and released only through formal, logged budget change control.

In variance analysis, a CAM must explain not only the cause of a significant variance but also:

Answer: Its impact and the corrective action plan

A complete variance analysis addresses cause, impact on cost and schedule at completion, and the corrective action being taken.