# Earned Value.txt

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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?
12. Negative SV - good or bad?
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
 Author: lazarwolfe ID: 81649 Card Set: Earned Value.txt Updated: 2011-04-25 15:33:46 Tags: PMP Exam Earned Value Folders: Description: PMP Exam Earned Value Show Answers: