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Your assistant project manager does the monthly earned value management (EVM) Analysis. But falls ill before completing it. She has provided you with the following information. Cost Performance Index (CPI) =1.10 , actual cost (AC) =US$800 million. Planned value =US$890 Million. How is the project going?
a) The schedule is behind by 10 days
b) Both the schedule and the budget are better than planned
c) There is enough money to support an offsite team outing
d) You have no real concerns about either schedule or budgetThe correct answer is D.
Answer D is correct. You know you are under budget since the CPI is greater than one, but you don’t know by how much. You also do not know how you are doing on schedule. To find out, first calculate the EV from the data presented; EV = CPI x AC = 1.1 x $800M = $880M. Now you can determine the CV, SV, and the SPI. CV = $880M – $800M = $80M; SV = $880M – $890M = -$10M; SPI = $880M / $890M = 0.99. Based on this information you are about on schedule and $80M under budget. Answer A is incorrect. You are behind schedule by $10M worth of work, or 1 percent of the total. Answer B is incorrect because you ARE behind schedule by a little, not ahead. Answer C is wrong since that team activity would have already been planned into the budget. We don’t use excess unless specific risk events occur which were planned for and approved in the plan.
Pass PMP in the First Attempt : PMP Strategy
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