Guide: Understanding and Answering Questions on Earned Value (EV)

Earned Value (EV) is a crucial concept to grasp in the field of project management. It reflects the actual value accomplished from the work executed.

Why It's Important:
Understanding EV is essential because it provides an objective evaluation of the current project status, enabling efficient cost and schedule management. It also serves as an excellent tool to forecast future project performance.

How It Works:
The calculation of EV relies on two particular components - the Baseline Plan (BP) and the Actual Work Accomplished. It is the budgeted cost of the work that has been truly completed during a specific period and is typically calculated as:
EV = % of completed work x Budget at Completion (BAC)

Exam Tips: Answering Questions on Earned Value (EV)
Step 1: Identify and understand the question related to EV deeply. It could either ask for the actual value calculation or using EV for estimating at completion.
Step 2: For EV calculations, ensure to have a sound understanding of the relationship between EV, BAC and percent completion of work.
Step 3: If the question asks for further calculations based on EV, like cost performance (CPI) or schedule performance (SPI), remember to use the respective formulas. The key is to understand the interdependence of these values.
Step 4: Practice numerical problems involving EV calculations regularly for a better understanding.
Step 5: In theoretical questions or case studies, remember to highlight the comprehensive insights rendered by EV about project's cost and schedule status.
In the end, it's all about understanding the underlying principles of EV and how it links the project's schedule, scope and cost management.