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NEW QUESTION: 1
A project manager is reviewing her project performance. Her project has a BAC of $950,000 and is currently 40 percent complete, though it was scheduled to be 45 percent complete at this time. Her project has spent $387,526. Management would like to know if there is a schedule variance. What is the planned value for this project?
The planned value is the percentage of where the project should be times the budget at completion. In this instance, it is 45 percent of the $950,000. Here, it can be calculated as follows: PV = 45% of BAC = 0.45 * 950,000 = 427,500 Planned value (PV) is the authorized budget assigned to the schedule work to be accomplished for a schedule activity or work breakdown structure component. It serves as a baseline against which actual performance is measured. The theory of planned value is of vital importance to the project management team and it is important to keep careful track of this. The term planned value can also be in some situations referred to by the project management team and the project management team leader as the budgeted cost of work scheduled (BCWS). Answer option A is incorrect. -$47,500 is the schedule variance (SV = EV-PV). Answer option B is incorrect. This is the schedule performance index (SPI = EV/PV). Answer option D is incorrect. This is the cost performance index (CPI = EV/AC).