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Earned Value Management Flashcards

7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Earned Value Management flashcards as text

  1. On a project, the cumulative CPI is 0.78 after consuming 60% of the schedule. Statistically, what is the most likely outcome?

    Answer: The final CPI will likely remain near 0.78, resulting in a cost overrun

    Research shows that CPI rarely improves significantly after 20% project completion; a 0.78 CPI strongly predicts a final cost overrun.

  2. Estimate to Complete (ETC) using a new estimate is most appropriate when:

    Answer: The original estimate is deemed fundamentally flawed or conditions have changed significantly

    A new ETC estimate (bottom-up) is used when the original plan is no longer valid due to changed conditions or faulty assumptions.

  3. What does a negative Variance at Completion (VAC) indicate?

    Answer: The project is projected to overrun its authorized budget

    VAC = BAC − EAC; when EAC > BAC, VAC is negative, indicating a forecasted cost overrun.

  4. In EVM, 'Management Reserve' differs from 'Contingency Reserve' in that Management Reserve:

    Answer: Is held outside the PMB for unknown-unknown risks and requires formal approval to use

    Management Reserve is held outside the PMB for unforeseen scope and requires senior management approval to access.

  5. A project manager reports SPI = 1.0 but the project is clearly running late on a critical path activity. What is the most likely explanation?

    Answer: The EV technique being used is Level of Effort, masking schedule slippage

    LOE activities earn value with the passage of time regardless of output, which can make SPI appear healthier than actual schedule performance.

  6. Which of the following is NOT one of the 32 criteria in ANSI/EIA-748 for EVMS?

    Answer: Risk Quantification and Monte Carlo Analysis

    The five guideline areas in EIA-748 are Organization, Planning/Scheduling/Budgeting, Accounting, Analysis, and Revisions; risk quantification methods are not a standalone criterion.

  7. A project's Estimate at Completion (EAC) is $600,000 against a BAC of $500,000. What is the percent overrun?

    Answer: 20%

    Percent overrun = (EAC − BAC) / BAC = ($600,000 − $500,000) / $500,000 = 20%.