## Calculating Schedule Performance Index (SPI)

If EV = 25,000, PV = 30,000, and AC = 29,000, what is the SPI?

A. 0.83

B. 0.86

C. 1.16

D. 1.20

Answer: A. 0.83

SPI (Schedule Performance Index) is calculated by EV (Earned Value)/PV (Planned Value). The 0.83 means that the project is progressing at 83% of the baseline.

## Calculating Cost Performance Index (CPI)

If EV = 25,000, PV = 30,000, and AC = 29,000, what is the CPI?

A. 0.83

B. 0.86

C. 1.16

D. 1.20

Answer: B. 0.86

CPI (Cost Performance Index) is calculated by EV (Earned Value)/AC (Actual Cost). The 0.86 means that the project is getting 86 cents out of every dollar.

## How much more the project is expected to cost from here on out

You are halfway through your project and your sponsor would like to know how much more the project is expected to cost from now until the end. What earned value metric should you use?

A. CV

B. AC

C. EAC

D. ETC

Answer: D. ETC

ETC (Estimate to Complete) tells you that the project is expected to cost x dollars to complete. This is derived from how much the project is expected to cost currently (EAC) and how much was already spent (AC).

## Calculating Schedule Variance (SV)

If EV = 25,000, PV = 30,000, and AC = 29,000, what is the SV?

A. -5,000

B. -1,000

C. 1,000

D. 5,000

Answer: A. -5,000

SV (Schedule Variance) is calculated by EV (Earned Value) – PV (Planned Value). The -5,000 means that the project is behind schedule.

## Calculating Cost Variance (CV)

If EV = 25,000, PV = 30,000, and AC = 29,000, what is the CV?

A. -1,000

B. -4,000

C. 1,000

D. 4,000

Answer: B. -4,000

CV (Cost Variance) is calculated by EV (Earned Value) – AC (Actual Cost). The -4,000 means that the project is $4,000 over budget.

## How much the project is expected to cost at completion

You are halfway through your project and your sponsor would like to know how much the project is expected to cost when it is completed. What earned value metric should you use?

A. CV

B. AC

C. EAC

D. ETC

Answer: C. EAC

EAC (Estimate at Completion) tells you that the project is expected to cost x dollars. This is derived from how much you thought it would cost from the beginning (BAC) and what the rate of spending is (CPI).

## SPI — what does it mean?

As the project manager with a time conscience sponsor, you have been monitoring earned value throughout the year long project. At the halfway point, you report that the SPI is 0.8. This means that the project is:

A. Ahead of schedule

B. Under budget

C. Behind schedule

D. Over budget

Answer: C. Behind schedule

The Schedule Performance Index (SPI) determines how much ahead or behind schedule you are. An SPI of 1.0 means you are on target. Therefore, an SPI of 1.5 means that you are progressing at 150% of the baseline, which is a good thing. Conversely, an SPI of 0.8 represents only moving at 80% of the baseline, not so good. In short, over 1.0 is good, under 1.0 is bad.

## Earned value chart

At your upcoming status meeting with your project sponsor, rather than just using a table, you want to graphically show earned value. Which of the following charts will you use?

A. Trend analysis

B. Control chart

C. S-curve

D. Pareto diagram

Answer: C. S-curve

An S-curve graph typically displays earned value (EV), planned value (PV) and actual cost (AC). PV is charted first and will look like an S. As time progresses, the EV and AC will extend allowing you to compare them against the PV.

## Variance at Completion

If the BAC is 1000, the EAC is 1200, and the ETC is 900, what is the VAC?

A. -200

B. -100

C. 100

D. 200

Answer: A. -200

The VAC (variance at completion) is just a matter of figuring out delta between how much you thought you were going to spend before the project started, the budget at completion (BAC), and how much you think the project is going to cost knowing what you know today, the estimate at completion (EAC). So in this example, the VAC is -200, since VAC = BAC – EAC. That means the project is expected to cost $200 more than originally planned.

## Estimate to Complete

If the EAC is 2000, the PV is 500, and the AC is 400, what is the ETC?

A. 1100

B. 1500

C. 1600

D. 1900

Answer: C. 1600

The ETC (estimate to complete) is actually quite simple. Just figure out take the EAC (estimate at completion) and subtract the AC (actual cost), or ETC = EAC-AC; the PV is irrelevant for the ETC. What you are doing is looking at the difference between the updated estimate on how much the project will cost, EAC, and how much you have already spent, AC. The result is how much more you expect to spend to complete the project, EAC.

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