EVM Metrics Definition and question & answer
These types of questions will test you on your understanding of the meaning of various EVM metrics:
• Planned Value (PV) — how much work was scheduled to date
• Earned Value (EV) — how much work was completed to date
• Actual Cost (AC) — the amount of money spent so far
• Budget at Completion (BAC) — the total budget for the project
• Estimate at Completion (EAC) — the estimated total amount of money needed to be put into
the project based on the information available as today
• Estimate to Completion (ETC) — how much more do we need to put into the project to
complete it
• Variance at Completion (VAC) — the difference between the estimated total cost and the
original budget
• Cost Performance Index (CPI) — ratio between EV and AC, to reflect whether the project work
is under / on / over budget in relative terms
• Schedule Performance Index (SPI) — ratio between EV and PV, to reflect whether the project
work is ahead of / on / behind schedule in relative terms
• To Complete Performance Index (TCPI) — the efficiency needed to finish the project on budget,
it is the ratio between budgeted cost of work remaining and money remaining
1. If a project has a Schedule Performance Index (SPI) of 0.90, this means that:
1. 90% of the work planned to date has been completed
2. 90% of the work of the whole project has been completed
3. 90% of the budget planned to date has been spent
4. 90% of the project budget has been spent
Solution: A
The Schedule Performance Index (SPI) represents the performance of the project in terms of
schedule up to the moment. If it is smaller than 1, less than 100% of the scheduled work has
been completed to date.
2. If a project has a Cost Performance Index (CPI) of 0.90, this means that:
1. 90% of the work planned to date has been completed
2. 90% of the budget planned to date has been spent
3. 111% of the budget planned to date has been spent
4. 111% of the project budget has been spent
Solution: C
The Cost Performance Index (CPI) represents the performance of the project in terms of
budget up to the moment. If it is smaller than 1, the project is currently over budget (i.e. has
spent more than what has been planned).
3. If a project has a To Complete Performance Index (TCPI) of 0.90, this means that:
1. 90% of the work planned up to today has been completed
2. 90% of the budget planned up to today has been spent
3. the project can spend money at a rate 11% higher than planned and still meet the
project budget
4. the project can spend money at a rate 10% lower than planned to meet the project
budget
Solution: C
The To Complete Performance Index (TCPI) is the efficiency needed to finish the project on
budget. If it is smaller than 1, that means that we have more money left on the budget than the
remaining Planned Value (PV) to achieve. Therefore, in theory, we can spend more money yet
can still finish the project on budget. (However, in reality, it is generally preferred to finish the
project under budget. A TCPI smaller than 1 is a good sign that the project is going healthy.)
4. A project with both Schedule Performance Index (SPI) and Cost Performance Index (CPI) of 0.80.
The project is currently:
1. ahead of schedule and under budget
2. behind schedule and under budget
3. ahead of schedule and over budget
4. behind schedule and over budget
Solution: D
CPI < 1 = over budget and SPI < 1 = behind schedule, so the project is both “behind schedule
and over budget”.
5. According to EVM, which term below represents the outstanding amount of money required to
finish the project?
1. Planned Value (PV)
2. Earned Value (EV)
3. Estimate to Complete (ETC)
4. Estimate at Completion (EAC)
Solution: C
By definition, Estimate to Completion (ETC) is the amount of money we need to put into the
project from today in order to complete it.
6. According to EVM, which term below represents the budgeted cost of the work to be completed
to date?
1. Planned Value (PV)
2. Earned Value (EV)
3. Estimate to Complete (ETC)
4. Estimate at Completion (EAC)
Solution: A
By definition, Planned Value (PV) is how much value of work was scheduled to achieve to dat
