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?
    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

Card Set Information

Author:
lazarwolfe
ID:
81649
Filename:
Earned Value.txt
Updated:
2011-04-25 15:33:46
Tags:
PMP Exam Earned Value
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Description:
PMP Exam Earned Value
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