WGU Project Management C722 Unit 8 Module 31

Why should you use an EVM? (Choose all that apply.) a. The results of the analysis are used to understand the current state of the project. b. The results of the analysis are used to make predictions of what the budget performance will be at project completion. c. The assessment of earned value only needs to be done at the midpoint of the project's execution phase.

A, B

True or False: The purpose of completing an Earned Value Management (EVM) analysis is to ensure that the baseline budget was sufficient to complete the project.

False: The purpose of an Earned Value Management (EVM) analysis is to determine the current and end of project status of the project with respect to budget and schedule.

True or False: The schedule variance (SV) compares the value of work completed (EV) with the actual cost (AC) at a given point in time.

False: The schedule variance (SV) is calculated by subtracting the planned value (PV) from the earned value (EV). The formula is SV = EV − PV.

True or False: The project manager must collect the EVM measures of AC, PV, and EV in order to calculate the variances and indexes.

True: The EVM measures of AC, PC, and EV must be collected before calculating the variances (SV and CV) and the indexes (SPI and CPI).

Based on the above information, what is the TCPI? end of Week 5 EV = $88,000, PV= $70,500, and BAC = $156,250. If AC was $72,400 a. 81% b. 125% c. 122% d. 56%

a. 81% TCPI = (BAC − EV)/(BAC − AC).

Dollar value of all work completed. a. Earned Value (EV) b. Planned Value (PV) c. Actual Cost (AC) d. Budget at completion (BAC)

a. Earned Value (EV)

The project manager and the customer have determined that the baseline budget is not sufficient so an increased budget has been approved. The percent complete should now be calculated using _______. a. PCIC b. PCIB

a. PCIC PCIC measures the percent complete based on the new estimate at completion (EAC).

What does a Schedule Performance Index (SPI) value of less than 1.0 indicate? a. The project is behind schedule. b. The project is ahead of schedule. c. The project is meeting schedule expectations.

a. The project is behind schedule. A Schedule Performance Index (SPI) result of less than 1.0 indicates that the planned work is greater than the earned value, so the project is behind with respect to schedule.

An SPI value greater than 1 indicates that a project team is ________. a. Using time efficiently b. Behind schedule c. Meeting the budget

a. using time efficiently The Schedule Performance Index (SPI) creates a measure of time efficiency. SPI values greater than 1 mean that the project team is completing more work in less time than expected.

Based on the above, what is the EAC? a. $68,730 b. $128,343 c. $55,943 d. $70,287

b. $128,343 EAC = AC + ETC.

In the calendarized schedule for building your dream cabin, at the end of Week 5 EV = $88,000, PV = $70,500, and BAC = $156,250. If AC was $72,400 at the end of Week 5, what is the CV? a. $17,500 b. $15,600 c. -$2,400 d. -$16,000

b. $15,600 CV is calculated by EV − AC.

In the calendarized schedule for building your dream cabin, at the end of Week 5 EV = $88,000, PV = $70,500, and BAC = $156,250. If AC was $72,400 at the end of Week 5, what is the SV? a. $15,600 b. $17,500 c. -$16,000 d. -$2,400

b. $17,500 SV is calculated by EV − PV.

Returning to the calendarized budget for building your dream cabin, at the end of Week 5 EV = $88,000, PV = $70,500, and BAC = $156,250. If AC was $72,400 at the end of Week 5, what is the ETC? a. $68,730 b. $55,943 c. $128,343 d. $70,287

b. $55, 943 ETC = (BAC − EV)/CPI.

Based on the above information, what is the PCIB? end of Week 5 EV = $88,000, PV= $70,500, and BAC = $156,250. If AC was $72,400 a. 125% b. 56% c. 81% d. 122%

b. 56% PCIB = EV/BAC.

A project manager is conducting an Earned Value Analysis and needs to know the total value of costs incurred to date. Which data element is the project manager evaluating? a. Planned Value (PV) b. Actual cost (AC) c. Budget at completion (BAC)

b. Actual Cost (AC) The actual cost (AC) is the total dollar value of costs incurred to date. This includes work and invoices already paid as well as any expenses that have been incurred but not yet invoiced or paid.

Which question is answered by Earned Value Management? a. Is the quality of the project being monitored on a regular basis? b. Are budget changes needed to complete the project as scheduled? c. Does the project scope seem feasible given the budgetary limitations?

b. Are budget changes needed to complete the project as scheduled? Earned Value Management (EVM) uses measures of the value of work completed to make comparisons to the baseline budget and schedule. The results of this analysis guide the project manager in determining whether changes to the project plan or project resources will be needed in order to meet the budget and schedule baselines.

In order for the project manager to calculate the estimate to completion (ETC), the EVM measures must be collected and the _______ must be calculated. a. PCIB b. CPI c. TCPI

b. CPI The CPI is an index that is used to calculate the estimate to completion (ETC).

Anita, a project manager, determines that her project team is accomplishing more work at a cost less than anticipated. What did Anita calculate to determine this good news? a. BAC b. CPI c. SV

b. CPI The Cost Performance Index (CPI) uses a ratio that creates a measure of cost efficiency (CPI = EV/AC). CPI values greater than 1 or 100% mean that the project team is completing more work with less cost than expected.

The cost variance (CV) would be calculated as _____. a. EV/AC b. EV-AC c. EV+AC

b. EV-AC

The dollar value of all work scheduled to have been completed to date. a. Earned Value (EV) b. Planned Value (PV) c. Actual Cost (AC) d. Budget at completion (BAC)

b. Planned Value (PV)

A project manager has learned that a project is currently running over budget. The project manager can determine how efficiently the project team must work for the remainder of the project in order to finish on budget by calculating __________. a. BAC b. TCPI c. SPI

b. TCPI The To Complete Performance Index (TCPI) allows the project manager and key stakeholders to determine if it is feasible for the team to improve their cost efficiency on the remaining work.

A _________ is a measure of how efficiently the team will need to perform for the remainder of the project in order to meet the baseline budget. a. PCIC b. TCPI c. PCIB

b. TCPI To Complete Performance Index (TCPI) is the measure of how efficiently the team will need to perform for the remainder of the project in order to meet the baseline budget.

A Cost Performance Index (CPI) value of less than 1.0 indicates what? a. The project is ahead of budget. b. The project is behind budget. c. The project is meeting budget expectations.

b. The project is behind budget A Cost Performance Index result of less than 1.0 indicates that the actual costs are greater than the earned value, so the project is behind with respect to budget.

The planned value (PV) can best be described as what? The total project budget The value of completed work to date The budget of work scheduled to date The total cost incurred to date

b. The value of completed work to date The planned value (PV) is the approved budget for work that was scheduled to be accomplished to date.

Schedule variance (SV) measures the gap between the earned value (EV) and the planned value (PV). A _____ result indicates that the project is behind based on the baseline schedule. a. positive b. negative

b. negative A negative SV indicates that the project completed work is behind based on the baseline schedule.

The following values have been determined at the end of Week 6 for a project at Rickman Industries: EV = $215,000, PV= $276,500, BAC = $396,000, and AC = $268,400. Given this information, what is the project's ETC? a. $212,385 b. $268,414 c. $225,968

c. $225968 The estimate to completion (ETC) provides an estimate of how much money will be needed to complete the project. It is based on the CPI measure of cost efficiency (CPI = EV/AC = 215000/268400 = .801) and how much of the baseline total budget has already been expended. ETC = (BAC − EV)/CPI = (396000 - 215000)/.801 = $225,967.54

In the calendarized schedule for building your dream cabin, at the end of Week 5 EV = $88,000, PV= $70,500, and BAC = $156,250. If AC was $72,400 at the end of Week 5, what is the CPI? a. 81% b. 56% c. 122% d. 125%

c. 122% CPI = EV/AC.

The following values have been determined at the end of Week 6 for a project at Rickman Industries: EV = $215,000, PV= $276,500, BAC = $396,000, and AC = $268,400. Given this information, what is the PCIB? a. 78% b. 80% c. 54%

c. 54% PCIB = EV/BAC = $215000/396000 = .5429 = 54%

If project management software is being used to manage the project, cost reports can be used to determine the _______ of the project. a. EV b. SV c. AC

c. AC If project management software is being used to manage the project, cost reports can be used to determine the AC of the project.

Includes work and invoices already paid as well as any expenses that have been incurred but not yet invoiced. a. Earned Value (EV) b. Planned Value (PV) c. Actual Cost (AC) d. Budget at completion (BAC)

c. Actual Cost (AC)

A negative value for the schedule variance indicates that the project is _______. a. currently on schedule b. currently ahead of schedule c. currently behind schedule

c. currently behind schedule A negative value for schedule variance (SV) indicates that the project work is currently behind schedule.

The earned value (EV) of a project can best be described as the ________ of a project at a given point in time. a. total costs incurred to date b. approved budget to date c. value of completed work

c. value of completed work The earned value (EV) is the value of work completed to date.

Based on the previous information, what is the SPI? end of Week 5 EV = $88,000, PV= $70,500, and BAC = $156,250. If AC was $72,400 a. 81% b. 56% c. 122% d. 125%

d. 125% SPI = EV/PV.

The approved total baseline budget approved for the completed project. a. Earned Value (EV) b. Planned Value (PV) c. Actual Cost (AC) d. Budget at completion (BAC)

d. Budget at completion (BAC)