EVM Quiz

1. What metric in EVM compares the value of work completed to the budgeted cost for that work?

Schedule Performance Index (SPI)

Cost Performance Index (CPI)

Estimate at Completion (EAC)

Schedule Variance (SV)

2. A project with a CPI of 1.1 indicates:

The project is behind schedule.

The project is under budget.

The project is spending less than planned per unit of work completed.

There is no information about the project schedule.

3. What is the main purpose of Earned Value Management?

To track project resources effectively.

To assess project performance in terms of cost and schedule.

To identify and manage project risks.

To develop a detailed project communication plan.

4. Earned Value (EV) is calculated by:

Actual Cost (AC) + Schedule Variance (SV)

Planned Value (PV) – Cost Variance (CV)

The value of work performed according to the project schedule.

The total budget allocated to the project.

5. A positive Schedule Variance (SV) signifies:

The project is exceeding its budget.

The project is ahead of schedule.

There is a cost overrun on the project.

The project is experiencing resource shortages.

6. Briefly explain the difference between Cost Performance Index (CPI) and Schedule Performance Index (SPI).

7. Describe two benefits of using Earned Value Management in project management.

8. A project is at week 10. The Planned Value (PV) for this point is $50,000, and the Actual Cost (AC) is $55,000. Calculate the Cost Variance (CV) and Cost Performance Index (CPI) for the project.

9. Explain how a project manager can use Earned Value Management to identify potential project problems and take corrective actions.