Earned Value Formulas

Question 1

PV

Answer 1

Planned Value

The authorized budget assigned to scheduled work.

Question 2

EV

Answer 2

Earned Value
Measure of work performed expressed in terms of the budget authorized for that work.

EV=sum of the planned value of completed work.

Question 3

AC

Answer 3

Actual Cost

The realized cost incurred for work performed on an activity during a specific time period.

Question 4

BAC

Answer 4

Budget at Completion

The sum of all budgets established for the work to be performed.

Question 5

CV

Answer 5

Cost Variance
The amount of budget deficit or surplus at a given point in time, expressed as the difference between earned value and the actual cost.
CV=EV-AC
Positive = Under planned cost
Neutral = On planned cost
Negative = Over planned cost

Question 6

SV

Answer 6

Schedule Variance
Amount by which the project is ahead or behind the planned delivery date.
SV=EV-PV
Positive = Ahead of schedule
Neutral=On schedule
Negative=Behind schedule

Question 7

VAC

Answer 7

A PROJECTION of the amount of budget deficit or surplus.
VAC=BAC-EAC
Positive = Under planned cost
Neutral = On planned cost
Negative = Over planned cost

Question 8

CPI

Answer 8

Cost Performance Index
A measure of the cost efficiency of budgeted resources expressed as the ratio of earned value to actual cost.
CPI=EV/AC
>1.0 = Under planned cost
=1.0 = On planned cost
<1.0 = Over planned cost

Question 9

SPI

Answer 9

Schedule Performance Index
A measure of schedule efficiency expressed as the ratio of earned value to planned value.

SPI = EV/PV
>1.0 = Ahead of schedule
Exactly 1.0=On schedule
<1.0 =Behind schedule

Question 10

CPI Interpretation

Answer 10

>1.0 = Under planned cost
=1.0 = On planned cost
<1.0 = Over planned cost

Question 11

SPI Interpretation

Answer 11

> 1.0 = Ahead of schedule
Exactly 1.0=On schedule
<1.0 =Behind schedule

Question 12

CV Interpretation

Answer 12

Positive = Under planned cost
Neutral = On planned cost
Negative = Over planned cost

Question 13

VAC Interpretation

Answer 13

Positive = Under planned cost
Neutral = On planned cost
Negative = Over planned cost

Question 14

SV Interpretation

Answer 14

Positive = Ahead of schedule
Neutral=On schedule
Negative=Behind schedule

Question 15

EAC Definition

Answer 15

Estimate at Completion

The expected total cost of completing all work expressed as the sum of the actual cost to date and estimate to complete.

Question 16

EAC if the CPI is expected to be the same for the remainder of the project.

Answer 16

EAC=BAC/CPI

Question 17

EAC if future work will be accomplished at the planned rate

Answer 17

EAC=AC+BAC-EV

Question 18

EAC if the initial plan is no longer valid

Answer 18

EAC=AC+Bottom-up estimating

Question 19

EAC if both the CPI and SPI influence the remaining work.

Answer 19

EAC=AC+((BCA-EV)/(CPI*SPI))

Question 20

ETC

Answer 20

Estimate to complete
The expected cost to finish all remaining work.
Assuming work is proceeding on plan, the cost of completing the reamaining work - ETC=EAC-AC

ETC=Reestimate

Question 21

TCPI Definition

Answer 21

To Complete Performance Index
A measure of the cost performance that must be achieved with the remaining resources in order to meet a specified goal, expressed as the ratio of the cost to finish the outstanding work to the budget available.

Question 22

TCPI - Efficiency required to complete on PLAN

Answer 22

TCPI = (BAC-EV)/(BAC-AC)

Question 23

TCPI - Efficiency required to complete the current EAC

Answer 23

TCPI=(BAC-EV)/(EAC-AC)

Question 24

TCPI Interpretation

Answer 24

> 1.0 Harder to complete
=1.0 Same to complete
<1.0 Easier to complete