Explain earned value management and how you use it on a project.
What the interviewer wants to hear
- Define PV, EV and AC
- Explain CV, SV, CPI and SPI
- Forecast with EAC, ETC and VAC
- Needs a solid baseline and objective progress measures
- Limitations, such as SPI not reflecting the critical path
- Use it to trigger early action, not just reporting
Model answer
Earned value management combines scope, schedule and cost into one view. Planned value is the budgeted value of work scheduled to date, earned value is the budgeted value of work actually completed, and actual cost is what we spent. From these I calculate cost variance, EV minus AC, and schedule variance, EV minus PV, plus the indexes CPI and SPI. For example, a CPI of 0.9 means we get 90 cents of value per dollar. I then forecast with EAC, such as BAC divided by CPI if the trend continues, and ETC and VAC. EVM only works with a clear baseline and objective ways to measure progress, such as 0/100 or milestone rules, not guesses. I also check the critical path, because SPI can look fine while critical tasks slip. I use EVM trends to start conversations early, not just to fill reports.
Can you answer it under time pressure?
Take a timed medium round and get scored on every answer.
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