You have an earned value of $750,000 and an actual cost of $700,000.
What is the cost performance index?
1.07
Cost performance index, or CPI, is earned ... [Show More] value - in this case, $750,000 - divided by actual cost - $700,000. In this case, the CPI is 1.07.
Your project has an SPI of 1.2 and a CPI of 0.8.What is the best action you can take to address project performance?
Consider releasing some resources and reducing the cost correspondingly
Since the project is ahead of schedule, you can consider reducing resources for a few tasks. It might delay those tasks, and even the project, but since the project is ahead by 20% anyway, this action can be considered.
A project's AC is $113,000. Its EV is $85,000, and the BAC is $135,000. It's no longer feasible to finish within the BAC, so you forecast a new EAC of $145,000.
What's the TCPI, based on the EAC?
1.56
To calculate the TCPI based on the EAC, you divide the difference between the BAC and the EV by the difference between the EAC and the AC.
BAC - EV/ EAC - AC
The AC of a project to date is $143,000. Its EV is $96,000, and the BAC is $165,000.
Calculate the TCPI based on the BAC.
3.14
To calculate the TCPI based on the BAC, you divide the difference between the BAC and EV by the difference between the BAC and the AC. This gives $165,000 minus $96,000, divided by the result of $165,000 minus $143,000 - or $69,000 divided by $22,000. The result, rounded to two decimal places, is a value of 3.14.
What are the tools and techniques used to control costs?
-Project Management Information System
-Data analysis
-Expert judgment
-To-complete performance index(TCPI)
-Decision Making
Your project has a CPI of 0.92 and you expect the rate of spending to continue.
If your original budget was $1 million, what is your new estimate at completion (EAC)?
$1.09 million
When the project is expected to continue as per the current cost performance, the EAC is calculated by dividing the BAC by the current CPI. In this case, 1/0.92 = 1.09.
You have an earned value of $500,000 and a planned value of $550,000.
What is the schedule performance index?
0.91
Schedule performance index, or SPI, is equal to earned value divided by planned value - in this case, $500,000 divided by $550,000, or 0.91.
How can the bottom-up technique be used to estimate project costs?
By adding up the costs of labor and materials, any contingency reserves, and the cost of quality of the lowest level activities and then rolling up the estimated costs through to the highest level in the WBS
Your EAC formula includes the SPI.
What can you assume this means?
Your deadline is firm
When the scheduled performance is of importance and matters for the success of the project, then the EAC formula includes the SPI.
What are the tools and techniques for determining budget?
-Expert judgment
-Cost aggregation-you use cost aggregation to total the cost estimates for activities and, in turn, for each higher level component in the WBS. This enables you to determine the total estimated costs of deliverables and an entire project.
-Historical information review
-Financing
-Reserve analysis-determine appropriate buffers to cover unplanned changes to project costs.
-Funding limit reconciliation
Match the earned value management values with their formulas.
-EV / AC
CPI tells you what the project is earning in relation to what it's costing, as a ratio rather than in absolute monetary terms. So you can calculate it as the EV divided by the AC.
-BAC x planned % complete
PV. It represents the budgeted value of work planned to have been completed by a specified date.
-EV - AC
CV is the difference between what a project has earned to date - its EV - and what it has cost - its AC.
-BAC x actual % complete
is the formula you use to calculate the EV. It indicates the value of the actual work completed based on the approved budget for a given time period.
A project's AC after three weeks is $22,000. Its PV is $30,000 and the EV is $25,000.
What is the project's CPI, rounded to two decimal places?
1.14
The CPI is calculated by dividing the EV - $25,000 - by the AC - $22,000. Rounded to two decimal places, this gives a value of 1.14.
Match the tools and techniques for estimating costs to their uses.
-Expert judgment
Leverages knowledge of experienced people on past projects to estimate costs
-Three-point estimating
Calculates expected costs using optimistic, most likely, and pessimistic estimates
-Decision making
Leverages the opinions of team members to finalize estimates/Allows finalization of draft cost estimates
-Analogous estimating
Uses costs from past projects to estimate the costs of a current project
-Parametric estimating
Uses information about resources, activities, and unit costs to estimate total costs
-Alternatives Analysis
Evaluates all options and picks the optimum one
Match the cost estimating techniques to their uses.
-Parametric estimating
Uses activity criteria related to product scope and resource rates to forecast project costs
-Reserve analysis
Calculates the cost of contingency plans
-Cost of quality
Estimates the cost of achieving and controlling project quality
-Project Management Information Systems
Statistical tools for rapidly estimating costs
A project's BAC is $65,000, EV is $58,000, AC is $60,000, CPI is 0.97, and SPI is 1.23. The bottom-up ETC is $6,500.
What's the EAC if you take schedule and cost performance to date into consideration?
$65,867.07
To calculate the EAC assuming the project's schedule and cost performance to date will remain unchanged, you include the SPI and CPI values. The full formula is AC + [(BAC - EV) / (cumulative CPI × cumulative SPI)].
A project's BAC is $60,000. Its EV is $53,000. The AC is $55,000, the CPI is 0.97, and the SPI is 1.23.
The bottom-up ETC is $6,000.
Calculate this project's EAC based on its cost performance so far.
$61,855.67
To calculate the EAC assuming that the project's cost performance to date won't change for the rest of the project, you divide the BAC value of $60,000 by the current CPI of 0.97.
Match the situations in which the EAC formulas may be used to the appropriate formulas for those situations.
-When you estimate future costs for work packages and aggregate these costs/When you consider the project manager's estimate to complete
EAC = AC + bottom-up ETC
-When variances are not expected to occur for the remainder of the project
EAC = BAC + AC - EV
-When you take the project's current cost performance into account and don't expect the CPI to change/When you take the project's cost efficiency into consideration
EAC = BAC / cumulative CPI
-When you take both the project's cost and schedule performance into account
EAC = AC + [(BAC - EV) / (cumulative CPI × cumulative SPI)] [Show Less]
