You are managing a telecommunications infrastructure project using a predictive methodology. The project is 60% complete when you conduct an earned value analysis. The results show: PV = $800,000, EV = $720,000, AC = $780,000, BAC = $1,200,000. Based on these metrics, the project team is concerned about performance. The sponsor asks you to forecast the total cost at completion and explain the project's current performance status. What is the most accurate assessment?

Question

Accepted Answer

The correct answer is A. SPI = EV/PV = 720,000/800,000 = 0.90 (behind schedule), and CPI = EV/AC = 720,000/780,000 = 0.92 (over budget). Using EAC = BAC/CPI = 1,200,000/0.92 = $1,304,348 (approximately $1,300,000), option A correctly identifies both performance issues (ECO Process Task 2.2 - Manage project changes). The project has earned less value than planned (behind schedule) and spent more than the value earned (over budget). Option B incorrectly interprets the metrics. Option C is wrong because while it correctly identifies the schedule variance, it incorrectly states the project is under budget and assumes future work won't reflect past performance. Option D incorrectly assesses schedule performance. In predictive projects, earned value management provides objective measures of schedule and cost performance, enabling accurate forecasting and corrective action decisions.

PMP Practice Question: Process — Predictive, Medium

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