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Earned Value Analysis


Taken from Cert-CAPM
Related Exam: PMI Cert-CAPM PMCert: Certified Associate in Project Management

A status review of all the projects being managed by you shows the figures in the exhibit (Click the Exhibit(s) button.). Which of these projects are performing the best on schedule and cost, respectively?

Project A
Project C
Project A and Project C, respectively
Project C and Project A, respectively

Exhibits:

Project C and Project A are performing the best on schedule and cost, respectively. We can use the following Earned Value Analysis calculations for all four projects:
CV or Cost Variance = EV – AC
SV or Schedule Variance = EV – PV
CPI or Cost Performance Index = EV / AC
SPI or Schedule Performance Index = EV / PV
The values can be summarized in the table provided in the tutorial graphic. The project with the highest values of CPI and SPI is performing the best on both cost and schedule factors. From the information in the given table, Project C has the best schedule performance because its SPI has the highest value of 0.93. Project A has the best cost performance because its CPI has the highest value of 0.96.
Note that all projects have identical values for CV and SV, but they are not performing equally on both cost and schedule factors.

References:

1. A Guide to the Project Management Body of Knowledge – PMBOK Guide 2000 Edition – Project Communications Management
– 10.3.2.4 Tools and Techniques for Performance Reporting – Earned Value Analysis

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