Earned Value.txt

Card Set Information

Author:
lazarwolfe
ID:
81649
Filename:
Earned Value.txt
Updated:
2011-04-25 11:33:46
Tags:
PMP Exam Earned Value
Folders:

Description:
PMP Exam Earned Value
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user lazarwolfe on FreezingBlue Flashcards. What would you like to do?


  1. What are the 13 key Earned Value metrics on the PMP Exam?
    • BAC - Budgeted At Completion
    • PV - Planned Value
    • EV - Earned Value
    • AC - Actual Cost
    • CV - Cost Variance
    • SV - Schedule Variance
    • CPI - Cost Performance Index
    • CPIC - Cumulative Cost Performance Index
    • SPI - Schedule Performance Index
    • EAC - Estimate At Completion
    • ETC - Estimate To Completion
    • VAC - Variance At Completion
    • TCPI - To-Complete Performance Index
  2. Define BAC
    • Budgeted At Completion
    • How much we originally expected this project to cost
  3. Define PV
    • Planned Value
    • aka Budgeted Cost of Work Scheduled (BCWS)
    • PV = % of planned time burned * BAC
  4. Define EV
    • Earned Value
    • aka Budgeted Cost of Work Performed (BCWP)
    • EV = % of actual functionality delivered * BAC
  5. Define AC
    • Actual Cost
    • aka Actual Cost of Work Performed
    • AC = Actual expenditure to date
  6. Define CV
    • Cost Variance
    • How much actual cost differs from planned costs
    • CV = EV - AC
  7. Positive CV - good or bad?
    Good. We're doing better than planned.
  8. Negative CV - good or bad?
    Bad. We're doing worse than planned.
  9. Is CV derived using PV or AC and why?
    CV = EV - AC. Use AC because it represents actuals whereas PV represents plan. We want ACTUAL cost variance. Using PV would yield Schedule Variance.
  10. Define SV
    • Schedule Variance
    • How much our schedule differs from the plan
    • SV = EV-PV
  11. Positive SV - good or bad?
    Good. We're ahead of schedule.
  12. Negative SV - good or bad?
    Bad. We're behind schedule.
  13. Define CPI
    • Cost Performance Index
    • Indicates how much VALUE we're actually getting for every dollar we expected
    • CPI = EV / AC
  14. CPI = 1 - good or bad?
    Good - we're getting the precise value for each dollar we planned.
  15. CPI > 1 - good or bad?
    Good - we're getting greater value for each dollar than we planned.
  16. CPI < 1 - good or bad?
    Bad - we're getting less value for each dollar than we planned.
  17. Define SPI
    • Schedule performance Index
    • Indicates how FAST the project is progressing vs the plan
    • SPI = EV / PV
  18. SPI = 1 - good or bad?
    Good - we're performing at precisly the speed we planned.
  19. SPI > 1 - good or bad?
    Good - we're performing FASTER than we planned
  20. SPI < 1 - good or bad?
    Bad - we're performing SLOWER than we planned
  21. Define EAC
    • Estimate at Completion
    • What do we expect the project to cost base on where we are on cost & schedule
    • EAC = BAC / CPI
  22. Define ETC
    • Estimate To Completion (not estimate to COMPLETE)
    • How much more we expect to spend from this point forward
    • ETC = EAC - AC
  23. Define VAC
    • Variance At Completion
    • Difference between what we originally planned and what we NOW expect to spend on the project
    • VAC = BAC - EAC
  24. Positive VAC - good or bad?
    Good - we now expect to spend less than we originally planned
  25. Negative VAC - good or bad?
    Bad - we now expect to spend MORE than we originally planned
  26. Define CPIC
    • Cumulative Cost Performance Index
    • CPI = EV / AC. If EV and AC are measured at regular intervals, CPIC is cumulative EV / cumulative AC.
  27. What is the value of CPI as a metric vs CPIC?
    CPI gives a good snapshot of a particular period (assuming EV and AC represent only a period measurement). CPIC represents the longterm health of the project and is a good indicator of performance at completion.
  28. Define TCPI
    • To-Complete Performance Index
    • Performance which must be achieved to meet financial goals
    • TCPI = (BAC - EV) / Remaining Funds
  29. TCPI = 1 - good or bad?
    Good - we have to perform exactly as we planned to meet our budget
  30. TCPI > 1 - good or bad?
    BAD - we have to perform MORE efficiently than we planned to meet our budget
  31. TCPI < 1 - good or bad?
    GOOD - we can perform LESS efficiently than we planned and still meet our budget
  32. What are the 5 classifications of costs?
    • Fixed
    • Variable
    • Direct
    • Indirect
    • Sunk

What would you like to do?

Home > Flashcards > Print Preview