Earned Value Flashcards

A control account manager reviews a work package with SPI = 0.75. What corrective action is most appropriate?

Answer: Accelerate work or add resources to recover schedule

SPI = 0.75 means only 75% of planned work is being completed on time, so adding resources or fast-tracking activities is needed.

Which EVM method assigns 100% of the budget to an activity only when it is fully complete?

Answer: 0/100 rule

The 0/100 rule credits no earned value until the activity is 100% complete, making it suitable for short-duration tasks.

A project uses the 50/50 earning rule. A $20,000 activity has started but not yet finished. How much EV is credited?

Answer: $10,000

The 50/50 rule credits 50% of the budget when work starts and 50% when it completes, so $10,000 is earned at start.

A PMI-SP exam candidate calculates TCPI against EAC instead of BAC. What scenario makes this appropriate?

Answer: When the original budget is no longer achievable and a new EAC has been approved

TCPI based on EAC is used when the original BAC is deemed unrealistic and a revised budget (EAC) has been authorized.

Which of the following scenarios results in a positive Schedule Variance (SV)?

Answer: EV > PV

SV = EV - PV; when EV exceeds PV, more work has been accomplished than planned, yielding a positive (favorable) variance.

On a large infrastructure project, a control account has BAC = $1M, EV = $600K, AC = $700K, and the project manager decides to re-estimate remaining work at $500K. What is the new EAC?

Answer: $1.2M

EAC = AC + ETC = $700,000 + $500,000 = $1,200,000 when ETC is based on a new independent estimate of remaining work.

A project's EAC is $980,000 and its BAC is $900,000. What does this indicate?

Answer: The project is projected to overrun the original budget by $80,000

VAC = BAC - EAC = $900,000 - $980,000 = -$80,000, a negative VAC signals a projected cost overrun.