PMP®:CAPM® - EVM Quiz

Check out the below links before you try to answer these EVM questions.

EVM formula explained with Wall example 

EVM formula animated

Quiz created by Vasi with GoConqr

PMP®:PMI-ACP®:CAPM® - EVM formula - Worked out with Wall example

Cost Variance

CV= EV-AC= 2000-2500 =-$500

(Negative Cost Variance means the project is over budget)

Schedule Variance

SV = EV-PV=2000-3000 = -$1000

(Negative Schedule Variance means the project is behind schedule)

Cost Performance Index

CPI = EV/AC = 2000/2500 = 0.8

(CPI < 1 means the cost performance of the project is not good.

For every $ we spend we are getting the value of $0.8)

Schedule Performance Index

SPI = EV/PV = 2000/3000 = 0.66

(SPI < 1 means the schedule performance of the project is not good.

For every $ we plan , we are completing value of $.66)

EAC formula

A)When original estimate is flawed.

EAC=AC+ETC = 2500+3000 = $5500 (pending work estimate is $3000) 

B)When the current variance will continue in future also.

EAC = BAC/CPI = 4000/0.8 = $5000

(For the 1st 2 feet wall it costed $2500, it would cost the same for the next 2 feet also)

C)When the current variance won't be there in future and pending work will go as per plan.

EAC = AC + (BAC-EV) = 2500+(4000-2000) = $4500

(For the 1st 2 feet wall it costed $2500, but it would cost $2000 for the next 2 feet wall i.e. $1000 per feet as per original budget.) 

D)When both Cost and Schedule constraint influence the pending work.

EAC = AC + [(BAC-EV)/(CPI*SPI)] = 2500+[(4000-2000)/(.8*.66)]=$6287

(Typical Cost variance in future will cost $5000. The schedule will go for 6 days, 3 days for the 1st 2 feet of the wall and 3 more days for the 2nd 2 feet of the wall. What if the schedule constraint of 4 days is insisted? We need to crash the schedule by using additional man power. Hence the additional cost)

Variance At Completion:

VAC=BAC-EAC = 4000-5000=-$1000. 

(EAC calculated as per formula B above.)

To Complete Performance Index:

When BAC was valid

TCPI = Work remaining/funds remaining=(BAC-EV)/(BAC-AC)=(4000-2000)/(4000-2500)=1.33

When BAC is invalid

TCPI = (BAC-EV)/(EAC-AC)=(4000-2000)/(5000-2500)=0.8

(TCPI < 1 means there is not enough fund to complete the pending work)

Read next:
EVM formula animated
EVM in MS Project 2013

PMP®:PMI-ACP®:CAPM® - EVM formula animated

PV - Planned Value. Budget of Planned work
EV - Earned Value. Budget of Completed work. 
AC - Actual Cost. Cost spent for Completed work. 
BAC - Budget At Completion. Project Budget.

Variances:
Variance means difference. Think of EVM, which means EV is the first value.
In Cost Variance, the first letter and the last letter matches. i.e. Starting and ending with C.

  In Schedule Variance, the second and the last letter matches. i.e. Second letter and last letter is V.

Indices:
Remember the variances formula and divide instead of subtracting.

At Completion formulae:
EAC - Estimate At Completion. Revised Project Budget.

When original estimate is flawed.
EAC = Cost Spent + estimate for pending work      

When the current variance will continue in future also.
EAC=Project Budget divided by Cost Performance Index

When the current variance won't be there in future and pending work will go as per plan.
EAC=Cost Spent+ (Project budget - Earned Value)

When both Cost and Schedule constraint influence the pending work.
Remember the above formula and divide the right side value with CPI*SPI

Variance At Completion: Subtract the other 2 At Completion values in alphabetical order

To Complete Performance Index:
TCPI= Work remaining / Funds remaining

Read next:
EVM formula worked out wilh Wall construction example