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Description
Flashcards by Althea Green, updated more than 1 year ago
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Created by Althea Green
over 7 years ago
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| Question | Answer |
| What is earned value? | The value of completed worked expressed in terms of the budget assigned to that work. A measure of progress which may be expressed in cost or labour terms. |
| How can earned value be used in projects? | Understand true nature of project performance. Indicate what might be going wrong. Predict where the final project cost and end date if progress continues unchanged. |
| What is earned value management? | The proactive management of the project performance using earned value as a key input. |
| Define & describe the terms used in earned value calculations. (part 1) | ATE = Actual time expended (the time now) EV = Earned value (see above) PC = Planned cost (rate of project spend) AC = Actual cost (costs incurred up to ATE) BAC = Budget at completion (of either individual work package or all work packages combined) |
| Define & describe the terms used in earned value calculations. (part 2) | EAC = Estimate at completion (cost at project end date) Planned completion = original end date Actual completion = predicted end date CV = Cost variance SV = Schedule variance CPI = Cost Performance Index SPI = Schedule Performance Index |
| List the 7 earned value calculations. | EV = BAC x % complete EAC = BAC / CPI Actual completion = planned comp. / SPI CV = EV - AC SV = EV - PC CPI = EV / AC SPV = EV / PC |
| What is the basis for earned value calculations? | The planned cost curve |
| What are the steps in calculating earned value? (part 1 - steps 1 to 4) | 1. BAC data for each work package & it's duration displayed in a table (p.213). 2. On the planned cost curve mark the: - ATE, BAC, planned completion & total AC 3. Calculate the EV for the work packages & add to the table. 4. Plot the total EV on the planned cost curve. |
| What are the steps in calculating earned value? (part 2 - steps 5 to 7) | 5. Calculate the CV, SV, CPI, SPI and EAC. 6. Extend the axis's on the planned cost curve if necessary and plot these calculated values. 7. The EV never exceeds the original BAC but will be achieved at new actual completion date. |
| What do the CV, SV, SPI and CPI calculations mean? | A negative cost variance (CV) or schedule variance (SV) is bad. A Schedule Performance Index (SPI) or Cost Performance Index (CPI) of less than 1 is bad. CPI & SPI show cost & schedule effeciency (running at less than 100% is inefficient). |
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