Project Management

Earned Value Exercises and Solutions

Robert Antonides

Earned Value Questions

Given a project with the following characteristics, answer the following questions:

• You are the project manager of a project to build fancy birdhouses.

• You are to build two birdhouses a month for 12 months.
• Each birdhouse is planned to cost $100.
• Your project is scheduled to last for 12 months.
• It is the beginning of month 10.
• You have built 20 birdhouses and your CPI is .9091.

1. How is the project performing?

A. Over budget and ahead of schedule

B. Under budget and ahead of schedule
C. Over budget and behind schedule
D. Under budget and behind schedule.

2. What is the actual cost of the project right now?

A. $1800
B. $2000
C. $2200
D. $2400

3. Assuming that the COST variance experienced so far in the project will continue,
how much more money will it take to complete the project?

A. $400
B. $440
C. $2800
D. $2840

4. If the variance experienced so far were to stop, what is the project’s estimate at
completion?

A. $2400
B. $2440
 Project Management
Earned Value Exercises and Solutions
Robert Antonides

C. $2600
D. $2800

5. What is the project’s TCPI* using the project’s budget at completion?

A. .5
B. 1
C. 1.5
D. 2

* TCPI is the To Complete Performance Index. This would be the CPI for the
remaining part of the project.

6. Senior management wants to know the percentage of the project that is

complete. What should you report?

A. 75%
B. 83%
C. 92%
D. 95%

7. Your project is expected to run for three consecutive years. Your organization is
introducing earned value management as part of the planning and managing of this
project. The project budget 100.000 $. The budget is consistent across the three
years. You are exactly 18 months into the project. 30 % of the total budget has
been spent and 40 % of the work is complete. Your project is:

A. Ahead of schedule and over budget.

B. Ahead of schedule and under budget.
C. Behind schedule and over budget.
D. Behind schedule and under budget.

8. Define Earned Value (EV)

A. An indicator into the speed or rate of spending compared to the value being
generated (Is the project budget on track)

B. The value of the work that should have been completed at any given point for
the total project to remain on budget and schedule

C. The estimated value of the work completed at any given point

 Project Management
Earned Value Exercises and Solutions
Robert Antonides

D. The difference between the planned work completed versus the amount of work
that was completed

9. A project has a Budget at Completion(BAC) of $100,000 and a planned duration

of 50 days. What is the To-Complete Performance Index (TCPI) on day 25 of the
project if the total spent Actual Cost was $40,000 and the actual work completed
was %48.

A. 1.2

B. 0.867

C. $83,333.33

D. 0.96

10. Your Budget at Completion (BAC) for a project is $500,000. If the Cost
Performance Index (CPI) is 0.84 and the Schedule Performance Index (SPI) is 0.98,
what is the Estimate At Completion (EAC) for the project?

A. $595,238.10

B. $315,744.68

C. $235,000.00

D. $510,201.08

11. A construction project has a Budget At Completion (BAC) of $1,000,000, and a

scheduled duration of 300 days. On day 100 of the project, 36% of the work is
completed and $300,000 has been spent. What is your Cost Variance (CV) and
Schedule Variance (SV) on day 100 of the project?

A. CV: $60,000; SV: $26,666.67

B. CV:1.2; SV: 1.08

C. CV: $26,666.67; SV: $60,000

D. CV: $333,333.33; SV: $360,000

12. A construction project has a Budget At Completion (BAC) of $1,000,000, and a

scheduled duration of 300 days. On day 100 of the project, 36% of the work is
 Project Management
Earned Value Exercises and Solutions
Robert Antonides

completed and $300,000 has been spent. What is the budget and schedule status
of this project?

A. Over Budget and Behind Schedule

B. Over Budget and Ahead of Schedule

C. Under Budget and Ahead of Schedule

D. Under Budget and Behind Schedule

13. What is the Schedule Performance Index (SPI) on day 5 of a 10 day project
that is 55% completed and has a Budget At Completion (BAC) of $10,000 with a
current Actual Cost (AC) of $6,000?

A. $-500

B. 1.1

C. $5,500

D. 0.92

14. Define the Cost Performance Index (CPI)

A. The estimated value of the work completed at any given point

B. The value of the work that should have been completed at any given point for
the total project to remain on budget and schedule

C. The indicator into the speed or rate of the work getting completed compared to
the work that was expected to be completed

D. An indicator into the speed or rate of spending compared to the value being
generated (Is the project budget on track)

15. Of the following options, which shows a project as being ahead of schedule and
under budget?

A. EV: $12,000; PV: $27,000

B. TCPI: 1.2; SPI: 0.8

C. CPI: 0.8; SPI: 0.95

 Project Management
Earned Value Exercises and Solutions
Robert Antonides

D. CPI: 1.1; SPI: 1.3

16. Define Planned Value (PV)

A. An indicator into the speed or rate of spending compared to the value being
generated (Is the project budget on track)

B. The difference between the planned work completed versus the amount of work
that was completed

C. The value of the work that should have been completed at any given point for
the total project to remain on budget and schedule

D. The estimated value of the work completed at any given point

17. My Project manager bonus was contingent on completing the project as

scheduled on July 31 and within the baseline budget of 300.000 euros. I completed
the project with a positive VAC of 10,000 euros and an end of project Schedule
variance of 0. I therefore met my objectives and will be paid my bonus.

True

False

18. Which of the following formulas answers the question; What is the remaining
work likely to cost?

A. Variance at Completion (VAC) = EAC – BAC

B. Estimate to Complete (ETC) = (BAC – EV) / CPI

C. Estimate at completion (EAC) = AC + Bottom up ETC

D. To-Complete Performance Index (TCPI) = (BAC – EV) / (EAC – AC

19. A project manager expects that the project would finish one month before the
planned finish date. However he expects that the project to exceed the budgeted
cost. What is true about the Schedule Performance Index (SPI)

A. SV is less than 0

B. SPI is less than 1.0

 Project Management
Earned Value Exercises and Solutions
Robert Antonides

C. SPI is equal to 1.0

D. SPI is greater than 1.0

20. CPI less than one implies that

A. Project performance is as per baseline plan

B. Project is under budget

C. Actual Cost (AC) is less than Planned Value (PV)

D. Project is over budget

21. Budget remaining on the project is expressed as

A. BAC - PV

B. BAC - EV

C. EAC - PV

D. (BAC - AC) or (EAC - AC)

22. How will you calculate your EAC if the ETC work will be performed at the
budgeted rate?

A. EAC = AC + BAC – EV

B. EAC = AC + Bottom-up ETC

C. EAC = BAC/CPI

D. EAC = AC + [(BAC – EV) / (CPI x SPI)]

23. What is the best way to accurately calculate Estimate to Completion (ETC)

A. Manual forecasting of cost of the remaining work

B. BAC - EV

C. (BAC - EV) / CPI

 Project Management
Earned Value Exercises and Solutions
Robert Antonides

D. EAC - AC

24. Earned Value Measurements of a project indicate that the current CPI is 0.80
and the current SPI is 0.98. For the next phase of the project the project manager
should focus on which element of the project.

A. Schedule

B. Stakeholder Engagement

C. Change control process

D. Cost

25. What is the best way to calculate the Estimate At Completion (EAC) when
original estimates are no longer valid.

A. EAC = AC + BAC – EV

B. EAC = AC + [(BAC – EV) / (CPI x SPI)]

C. EAC = AC + Bottom-up ETC

D. EAC = BAC/CPI

26. The planned value of task A is $150,000 and task B is $500,000. After six
months the project manager does a performance analysis of the project and finds
that the project is behind schedule. The actual cost incurred in completing task A is
$175,000 and that for completing 80% of task B is $650,000. What is the cost
performance index of the project?

A. 1.66

B. 0.67

C. 0.76

D. 0.96
 Project Management
Earned Value Exercises and Solutions
Robert Antonides

27. For the following project calculate SV, CV, SPI and CPI at the end of second
month.

Month 1 2 3 4

Planned Value 1,110,000 600,000 2,500,000 800,000

Earned Value 1,000,000 750,000

Actual Cost 1,250,000 500,000

SV=

CV=

SPI=

CPI=

28. You are managing a project which is into six months of its execution. You are
now reviewing the project status and you have ascertained that project is behind
schedule. The actual cost of Activity A is 200,000 and that of Activity B is 100,000.
The planned value of these activities are 180,000 and 80,000 respectively. The
Activity A is 100% complete. However, Activity B is only 75% complete. Calculate
the schedule performance index and cost performance index of the project on the
review date.