Earned Value Management Flashcards

A project has PV = $150,000 and EV = $120,000. What does the Schedule Variance (SV) tell the project manager?

Answer: The project is $30,000 behind in work accomplished relative to plan

SV = EV − PV = $120,000 − $150,000 = −$30,000, meaning $30,000 less work has been accomplished than planned.

An Independent Estimate at Completion (IEAC) is most commonly used by:

Answer: Senior management or external reviewers to validate EAC

IEAC is prepared independently (often by management or owners) to validate the project team's EAC forecast.

When is it appropriate to re-baseline a project's Performance Measurement Baseline (PMB)?

Answer: After approved scope changes that alter the authorized work

PMB re-baselining is only justified after formally approved scope or plan changes, not merely to hide variances.

In a Control Account Plan (CAP), what is the primary role of the Control Account Manager (CAM)?

Answer: Plan, measure, and manage performance within their assigned control account

The CAM is accountable for planning and controlling cost, schedule, and technical performance within their specific control account.

Earned Value Management is required by US government contracts that exceed which approximate threshold under DFARS/EVMS guidelines?

Answer: $20 million

US DoD policy generally requires EVMS compliance on contracts exceeding approximately $20 million in cost-type or $50 million in incentive-type contracts.

Which ANSI/EIA-748 guideline criterion requires that the project budget be time-phased?

Answer: Criterion 9 (Budgeting)

ANSI/EIA-748 Criterion 9 requires budgets to be time-phased in accordance with the schedule.

A work package with a budget of $10,000 uses the 0/100 earned value technique. After the work starts but before completion, what EV is credited?

Answer: $0

The 0/100 rule credits zero earned value until the work package is 100% complete.