Earned Value Management (EVM)

Question 1

Which EVM formula should be used to calculate a forecast?

Answer 1

EAC (Estimate at Completion)

Question 2

What is CV?

Answer 2

• Cost Variance
• Difference between work done and money spent
• Should be positive for under budget (negative indiciates over budget)

Question 3

What is CPI?

Answer 3

• Cost Performance Index
• Rate of how current spending to earning on a project
• Should be 1 or over for projects under budget

CPI of 0.9 = Project is 10% over budget

Question 4

What is SV?

Answer 4

• Schedule Variance
• Difference between amount of work we should have completed vs. the amount actually completed
• Should be positive for ahead of schedule

Question 5

What is SPI?

Answer 5

• Schedule Performance Index
• Rate of how we are meeting the project schedule
• Should be 1 or over for a project to be ahead of schedule

SPI of 0.7 = Project is 30% behind schedule