Earned Value Management Flashcards

To-Complete Performance Index (TCPI) based on BAC is calculated as:

Answer: (BAC − EV) / (BAC − AC)

TCPI (BAC) = (BAC − EV) / (BAC − AC), showing the required cost efficiency for remaining work.

A TCPI value greater than 1.0 indicates that the project team must:

Answer: Perform remaining work more efficiently than planned

TCPI > 1 means remaining work must be done at a higher efficiency than originally planned to meet the budget target.

On a project with BAC = $500,000, EV = $200,000, and AC = $220,000, what is the Cost Variance (CV)?

Answer: −$20,000

CV = EV − AC = $200,000 − $220,000 = −$20,000, indicating a cost overrun.

In EVM, the Performance Measurement Baseline (PMB) is typically represented by:

Answer: The S-curve of cumulative Planned Value

The PMB is depicted as a time-phased S-curve of cumulative Planned Value against which performance is measured.

Which EVM technique credits work as 50% complete when started and 50% when finished?

Answer: 50/50 rule

The 50/50 rule assigns 50% EV at start and the remaining 50% at completion of a work package.

A project manager computes EAC = AC + [(BAC − EV) / (CPI × SPI)]. This formula is most appropriate when:

Answer: Both cost and schedule inefficiencies are expected to persist

Combining CPI and SPI in the EAC formula accounts for both cost and schedule impacts on remaining work.

Which EVM earned value technique is most appropriate for long-duration, continuous work packages such as project management overhead?

Answer: Level of effort (LOE)

Level of Effort (LOE) is used for support-type activities where performance cannot be measured discretely.