compiled pmp evm questions

7/23/2019 Compiled PMP EVM Questions

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PMP EVM Questions (20+ Practice Questions Included)

EVM Graph Questions

The EVM graph questions are one of the easiest questions to answer as you will only need tounderstand the meaning of the relative positions of the AC, PV and EV:

AC vs PV: whether the projet is under or over !udget "AC > PV = oer !ud"et# AC $

PV = under !ud"et# EV vs PV: whether the projet is ahead of or !ehind shedule "EV > PV = ahead o%

schedule# EV $ PV = !ehind schedule#

$% &ith referene to the diagram !elow, it an !e inferred that the projet is urrently:

$% ahead of shedule and under !udget

'% ahead of shedule and over !udget

(% !ehind shedule and under !udget

)% !ehind shedule and over !udget

&olution' As of today, AC > PV = oer !ud"etand EV $ PV = !ehind schedule, so the projet is!oth *!ehind shedule and over !udget+%

'% &ith referene to the diagram !elow, it an !e inferred that the projet is urrently:

$


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(% !ehind shedule and under !udget

)% !ehind shedule and over !udget

olution: CAs of today, AC $ PV = under !ud"etand EV $ PV = !ehind schedule, so the projetis *!ehind shedule and under !udget+%

(% &ith referene to the diagram !elow, it an !e inferred that the projet is urrently:



(% !ehind shedule and under !udget)% !ehind shedule and over !udget

olution: -As of today, AC > PV = oer !ud"etand EV > PV = ahead o% schedule, so the projetis *ahead of shedule and over !udget+%

enition o% EVM Metrics

These types of questions will test you on your understanding of the meaning of various EVMmetris:

Planned Value (PV). how muh wor/ was sheduled to date Earned Value (EV). how muh wor/ was ompleted to date

Actual Cost (AC). the amount of money spent so far

*ud"et at Copletion (*AC). the total !udget for the projet

Estiate at Copletion (EAC). the estimated total amount of money needed to !eput into the projet !ased on the information availa!le as today

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than the remaining Planned Value "PV# to ahieve% Therefore, in theory, we an spendmore money yet an still 4nish the projet on !udget% (However, in reality, it is generally

preferred to nish the project under budget. A TCP s!aller than " is a good sign that theproject is going healthy.#

)% A projet with !oth hedule Performane 5nde6 "P5# and Cost Performane 5nde6 "CP5# of7%7% The projet is urrently:


'% !ehind shedule and under !udget

(% ahead of shedule and over !udget

7/ !ehind schedule and oer !ud"et

olution: ;CPI $ . = oer !ud"etand &PI $ . = !ehind schedule, so the projet is !oth *!ehindshedule and over !udget+%

% Aording to EVM, whih term !elow represents the !udgeted ost of the wor/ to !e

ompleted to date=./ Planned Value (PV)

'% Earned Value "EV#

(% Estimate to Complete "ETC#

)% Estimate at Completion "EAC#

olution: A-y de4nition, Planned Value "PV# is how muh value of wor/ was sheduled to ahieve todate%

&iple EVM Calculation Questions

?or these types of questions, you will simply need to reall the orret EVM alulationformulasand orretly su!stitute the values into the formulas to arrive at the orret answer%Please do ma/e use of the on@sreen alulator 2 physial alulator provided to do thealulation even if you are a Maths wiard% 5t is a pity to lose mar/s for areless alulation evenif you have seleted the orret formula%

)
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Also, most of suh simple EVM alulation questions will supply more than enough informationfor you to use as a /ind of distrator, it is a test of whether you an selet the orret formulas aswell as the orret values to su!stitute into the formulas%

&V = EV 8 PV CV = EV 8 AC

&PI = EV9PV

CPI = EV9AC

VAC = *AC 8 EAC

$% A projet with Earned Value "EV# B $777, Atual Cost "AC# B 77 and Planned Value "PV#B 77% &hat is the hedule Variane "V#=

./ :200

'% 7

(% @$77

)% @'77

olution: A&V = EV 8 PVV B $777 D 77 B '77ote that the Atual Cost "AC# is not used in the alulation%

'% A projet with Earned Value "EV# B $777, Atual Cost "AC# B 77 and Planned Value "PV#B 77% &hat is the Cost Variane "CV#=

./ :200

'% 7

(% @$77)% @'77

olution: ACV = EV 8 ACCV B $777 D 77 B '77ote that the Planned Value "PV# is not used in the alulation%

(% A projet with Earned Value "EV# B '


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&PI = EV 9 PVP5 B '


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'% ?or the projet with Earned Value "EV# B (>7, Atual Cost "AC# B )77 and !oth CostPerformane 5nde6 "CP5# and hedule Performane 5nde6 "P5# equal 7%87% Theoriginal projet !udget is $,777% Assuming the remaining wor/ will !e impated!y the urrent ost performane and urrent shedule performane, what is the EstimateAt Completion "EAC# of the projet=

$% $,787

'% $,$87

(% $,'87

)% $,(87

olution: -As the projet will !e impated !y the urrent ost performane and urrent sheduleperformane, the formula would !e:EAC = AC + (*ACEV)9(&PI?CPI)@EAC B )77 G H"$777 D (>7# 2 "7%8 I 7%8#J B $$87

(% ?or a projet with Estimate at Completion "EAC# B $'7,777 and Cost Performane 5nde6"CP5# is 7%87% &hat is the -udget at Completion "-AC#=

$% $7,777

'% $$,777

(% $


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$% ou are the projet manager of a housing projet in whih a total of $7 houses are to !e!uild over $7 months "$ house per month#% The total !udget for the housing projet is$,777,777% The projet is now at the end of the >th month with < houses !uilt and


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$% @$


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CP5 B EV 2 AC B (FEAC B -AC2"EV2AC# B (77 G H"$777 D (


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*asic EVM Dorulas

To spea/ more learly how the value is to !e managed, a num!er of terms are de4ned in EVM(e$plained with the e$a!ple of building "4 houses each has a value of 567"444 e$pected to beco!pleted in "4 wee%s in proportion#:

Planned Value (PV). The !ud"eted alueof the wor/ ompleted so far at aspei4 date

example:at end of wee% 8, altogether 8 houses should be co!pleted, the P is 5678444 Earned Value (EV). The actual alueof the wor/ ompleted so far at a spei4 date

"refer to the *otes on Earned Value Measurement+ setion !elow#example:by end of wee% 8, only 9 houses are co!pleted, the is 5679444

Actual Cost (AC). The total e6penditure for the wor/ so far at a spei4 dateexample:by end of wee% 8, 5678444 was spend, the AC is 5678444

EVM is !ased on monitoring these three aspets along the projet in order to reveal the health ofthe projet with the following indies:

&chedule Variance (&V). di0erene !etween PV and EV, to tell whether the projet

wor/ is ahead of 2 on 2 !ehind scheduleo &V = EV 8 PV

f the project is behind schedule the 6 will be negative (i.e. achieved less thanwhat planned#f the project is on schedule the 6 : 4f the project is ahead of schedule the 6 will be positive (i.e. achieved !ore thanwhat planned#

o example:by end of wee% 8, the 6 : ) P : 5679444 ) 5678444 : ;567"444(behind schedule#

&chedule Per%orance Inde- (&PI). ratio !etween EV and PV, to re1et whether theprojet wor/ is ahead of 2 on 2 !ehind schedule in relatie ters

o &PI = EV9PVf the project is behind schedule the 6P < " (i.e. achieved less than what planned#f the project is on schedule the 6P : "f the project is ahead of schedule the 6P = " (i.e. achieved !ore than what

planned#

o example:by end of wee% 8, the 6P : >P : 5679444>5678444 : 4.?@ (behindschedule#

Cost Variance (CV). di0erene !etween PV and AC, to tell whether the projet wor/ isunder 2 on 2 over !ud"et

o

CV = EV 8 ACf the project is over budget the C will be negative (i.e. achieved less than spent#f the project is on budget the C : 4f the project is under budget the C will be positive (i.e. achieved !ore than spent#

o example:by end of wee% 8, the C : ) AC : 5679444 ) 5678444 : ;567"444(over budget#

Cost Per%orance Inde- (CPI). ratio !etween EV and AC, to re1et whether theprojet wor/ is under 2 on 2 over !ud"et in relatie ters

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o CPI = EV9ACf the project is over budget the CP < " (i.e. achieved less than spent#f the project is on budget the CP : "f the project is under budget the CP = " (i.e. achieved !ore than spent#

o example:by end of wee% 8, the CP : >AC : 5679444>5678444 : 4.?@ (overbudget#

ote !oth V and P5 2 CV and CP5 give similar information on shedule 2 !udget !ut the indies

will give more insights into the atual performane with a meaning omparison%

?rom my e6periene, the most di3ult proess of solving EVM pro!lems for PMP E6ams is toidentify the PV, EV and AC from the wordy alulation questions% Then you will just have to reallthe orret formula to su!stitute the values into to get the answer . the question will usually as/you diretly a!out the atual indies to get%

Adanced EVM Dorulas

*ud"et at Copletion (*AC). also /nown as the projet2wor/ !udget, that is the totalamount of money originally planned to spend on the projet2wor/

o example the AC for the housing project : 567"444 $ "4 : 567"4444

Estiate at copletion (EAC). as the projet goes on, there may !e variations intothe atual 4nal ost from the planned 4nal ost, EAC is a way to projet2estimate theplanned ost at projet 4nish !ased on the currentl6 aaila!le data

o The following formulas an !e used to alulate EAC !ased on whih informationand onditions given in the question:

EAC = *AC9CPIf we believe the project will continue to spend at the sa!e rate up to now

The delay is aused !y reasons whih is li/ely to ontinue "e%g% la!ourwith less s/illed than e6peted#

example the AC for the housing project : 567"4444 > 4.?@ :567"9999

EAC = AC + (*ACEV)f we believe that future e$penditures will occur at the original forecasteda!ount (no !ore delays of the sa!e %ind in future#

The delay might !e aused !y some unforeseen reasons "e%g% typhoon#whih is not li/ely to happen again

example the AC for the housing project : 5678444 B (567"4444 )79444# : 567""444

EAC = AC + (*ACEV)9(&PI?CPI)@f we believe that both current cost and current schedule perfor!ance willi!pact future cost perfor!ance

The performane of the projet will ontinue with su!@prime standards"over !udget and !ehind shedule#

This formula is less li/ely to !e used for the PMP E6am

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example the AC for the housing project : 5678444 B (567"4444 )79444#>(4.?@D4.?@#E : 567"F888

EAC = AC + e Estiatef we believe the original conditions and assu!ptions are wrong

&ill not !e tested as there is nothing to alulate

Variance at Copletion (VAC). the variane at ompletion, i%e% the di0erene!etween the new estimate at ompletion and original planned value

o VAC = *AC 8 EACf we forecast the project will be over budget, AC will be negativef we forecast the project will be under budget, AC will be positive

o example the AC for the housing project : 567"4444 ) 567"9999 (just ta%e the"st AC as an e$a!ple only# : ;5679999

,o Coplete Per%orance Inde- (,CPI). the e3ieny needed to 4nish the projeton !ud"et, it is the ratio !etween !udgeted ost of wor/ remaining and money remaining

o ,CPI = (*ACEV)9(*ACAC)5se this e3uation if the project is re3uired to nish within AC

example the TCP for the housing project at end of wee% 8 : (567"4444 )5679444# > (567"4444 ) 5678444# : ".F?

o ,CPI =(*ACEV)9(EACAC)5se this e3uation if the project is re3uired to nish within new AC

example the TCP for the housing project at end of wee% 8 with new AC567"9999 : (567"4444 ) 5679444# > (567"9999 ) 5678444# : 4.?@

otes on Earned Value Measureent

The following will disuss how earned value is measured for projet and wor/, from simplephysial measurements, perentage omplete to weighted milestones% ine the PMP EVMquestions annot desri!e a lot of information, the part on earned value measurements willnormally !e !ased on simpli4ed situations li/e physial measurements or perentage omplete%

5t is li/ely that you will not !e tested on the more di3ult ways of measuring earned values%These are inluded here for your referene only%

Ph6sical Measureent . diretly transform the physial measurement of the amount ofwor/ ompleted into EV

o example building "4 houses each has a value of 567"444 e$pected to beco!pleted in "4 wee%s in proportion, earned value of 9 house built is 5679444

Percenta"e Coplete . diretly transform the perentage of the amount of wor/ompleted into EV

o example building "4 houses each has a value of 567"444 e$pected to beco!pleted in "4 wee%s in proportion, earned value of 94G co!plete is 5679444

Bei"hted Milestone . a EV is assigned to the $779 ompletion of eah milestone ofthe wor/ pa/ages with prior agreement with sta/eholders

$(


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Di-ed Dorula . a spei4 perentage of the overall PV is assigned to the start of a wor/pa/age and the remaining assigned upon ompletionR these must !e agreed upon in theprojet management plan

o 72$77 rule: 79 EV at the ativity !eginsR $779 EV upon ompletion

o '727 rule: '79 EV at the ativity !eginsR 79 EV upon ompletion%

o


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$' PMP EVM ?ormulas

ae(A!!reiation)

Dorula Interpretation

&chedule

Per%orance Inde-

(&PI)

&PI= EV9PV

EV B Earned ValuePV B Planned Value

S $ !ehind

schedule

B $ on shedule

$ ahead of

shedule

Cost Per%orance

Inde- (CPI)

CPI= EV9AC

EV B Earned ValueAC B Atual Cost

S $ Uver !ud"et

B $ Un !udget

$ Knder !udget

so!eti!es the ter!

cu!ulative CPI

would be shown,

which actually is the

CP up to that

!o!ent

&chedule Variance

(&V)

&V= EV 8 PV

EV B Earned ValuePV B Planned Value

S 7 -ehind

schedule

B 7 Un shedule 7 Ahead of

shedule

Cost Variance (CV)

CV= EV 8 AC

EV B Earned ValueAC B Atual Cost

S 7 Uver !ud"et

B 7 Un !udget

7 &ithin !udget

Estiate at

Copletion (EAC) i%ori"inal is Kaed

EAC= AC + e E,C

AC B Atual Costew ETC B ew Estimate to Completion

if the original

estimate is !ased on

wrong

data2assumptions or

irumstanes have

hanged

Estiate at

Copletion (EAC) i%

*AC reains the

EAC= AC + *AC 8 EV

AC B Atual Cost

the variane is aused

!y a one@time event

and is not li/ely to

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$' PMP EVM ?ormulas

ae

(A!!reiation)Dorula Interpretation

sae -AC B -udget at ompletionEV B Earned Value

happen again

Estiate at

Copletion (EAC) i%

CPI reains the

sae

EAC= *AC9CPI

-AC B -udget at ompletionCP5 B Cost performane inde6

if the CP5 would

remain the same till

end of projet, i%e% the

original estimation is

not aurate

Estiate at

Copletion (EAC) i%

su!standard

per%orancecontinues

EAC= AC + (*AC EV)9(CPI?&PI)@

AC B Atual Cost-AC B -udget at ompletion

EV B Earned ValueCP5 B Cost Performane 5nde6

P5 B hedule Performane 5nde6

use when the

3uestion gives all the

values (AC, AC, ,

CP and 6P#,

otherwise, thisfor!ula is not li%ely

to be used

,oCoplete

Per%orance Inde-

(,CPI)

,CPI= (*AC 8 EV)9(*AC 8 AC)

-AC B -udget at ompletionEV B Earned value

AC B Atual Cost

,CPI= eainin" Bor39eainin" Dunds

-AC B -udget at ompletionEV B Earned value

CP5 B Cost performane inde6

S $ Knder!ud"et

B $ Un !udget

$ Uver !udget

Estiate to

Copletion

E,C= EAC AC

EAC B Estimate at CompletionAC B Atual Cost

Variance atCopletion

VAC= *AC 8 EAC

-AC B -udget at ompletionEAC B Estimate at Completion

S 7 Uver !ud"et

B 7 Un !udget

7 Knder !udget

Additional esources

After understanding the a!ove and memoriing the EVM formulas, PMP aspirants should !e a!leto answer PMP EVM alulation questions% ow it is time to test your understanding of EVM

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alulation !y going through some pratie questions at the artile tips and s/ills on how toanswer all PMP EVM questions orretly . '7G pratie questions on PMP EVM are also inludedto help you hone your EVM s/ills and all questions are fully e6plained%

oure: http:22edward@designer%om2we!2pmp@earned@value@questions@e6planined2

$F
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