EVP — AACE Earned Value Professional Quick Reference

Exam-Focused Use

This Quick Reference supports independent review for the AACE International AACE Earned Value Professional (EVP) exam, code EVP. Use it to rehearse earned value terminology, formulas, baseline logic, forecasting assumptions, and common decision points.

For calculation questions, write down BAC, PV, EV, AC, EAC, ETC, and status date first. Most traps come from mixing budget, actual cost, calendar schedule, and authorized baseline concepts.

Earned Value Core Terms

Essential Formula Sheet

Variance formulas:

\[ \text{CV} = \text{EV} - \text{AC}, \qquad \text{SV} = \text{EV} - \text{PV} \]

Index formulas:

\[ \text{CPI} = \frac{\text{EV}}{\text{AC}}, \qquad \text{SPI} = \frac{\text{EV}}{\text{PV}} \]

Completion formulas:

\[ \text{ETC} = \text{EAC} - \text{AC}, \qquad \text{VAC} = \text{BAC} - \text{EAC} \]

Progress formulas:

\[ \%\text{Complete} = \frac{\text{EV}}{\text{BAC}}, \qquad \%\text{Spent} = \frac{\text{AC}}{\text{BAC}}, \qquad \%\text{Planned} = \frac{\text{PV}}{\text{BAC}} \]

To-complete performance:

\[ \text{TCPI}_{BAC} = \frac{\text{BAC} - \text{EV}}{\text{BAC} - \text{AC}}, \qquad \text{TCPI}_{EAC} = \frac{\text{BAC} - \text{EV}}{\text{EAC} - \text{AC}} \]

Earned schedule, when used:

\[ \text{SV(t)} = \text{ES} - \text{AT}, \qquad \text{SPI(t)} = \frac{\text{ES}}{\text{AT}} \]

Where ES is earned schedule time from the PV curve and AT is actual elapsed time at the status date.

Formula Selection Table

Fast Interpretation Rules

Mini Calculation Example

Given:

Exam reasoning: the project is both over cost and behind schedule. A rebaseline is not the first answer; first validate data, analyze root cause, forecast, and plan corrective action.

Baseline Structure

Baseline Integrity Checklist

A defensible performance measurement baseline should have:

• Authorized scope tied to the WBS.
• Defined responsible organization and CAM.
• Time-phased budget aligned to the integrated schedule.
• Objective earning methods for discrete work.
• Work authorization before work begins.
• Clear separation of distributed budget, undistributed budget, and management reserve.
• Change control for scope, schedule, and budget changes.
• Traceability from baseline to actual costs and performance reports.
• Variance thresholds and documented analysis expectations.
• Forecasting discipline, not just historical reporting.

Control Account Reference

Earned Value Measurement Methods

Choosing the EV Method

Performance Analysis Workflow

    flowchart LR
	    A[Authorize scope and baseline] --> B[Status schedule and progress]
	    B --> C[Collect actual costs]
	    C --> D[Calculate PV, EV, AC]
	    D --> E[Compute variances and indices]
	    E --> F[Validate data quality]
	    F --> G[Analyze root cause]
	    G --> H[Update EAC and risk view]
	    H --> I[Define corrective action]
	    I --> J[Report and control changes]
	    J --> B

Variance Analysis Quality

A good variance analysis usually includes:

1. What happened.
2. Why it happened.
3. Whether the variance is one-time or recurring.
4. Impact on schedule, cost, technical scope, and EAC.
5. Corrective action, owner, and due date.
6. Whether baseline change, MR use, or customer change is required.

Forecasting Decision Table

Change Control and Reserve Use

Management Reserve Rules

Replanning, Reprogramming, OTB, and OTS

High-yield point: Do not choose rebaseline as the first response to a variance. First validate data, analyze causes, update forecasts, and define corrective action. Formal baseline resets are governance events.

Schedule and EVM Integration

Risk, Contingency, and EAC

Risk is not separate from earned value management; it affects forecast credibility.

\[ \text{EMV} = \text{Probability} \times \text{Impact} \]

Exam trap: a favorable CPI does not eliminate risk. A low-probability, high-impact event may still require management attention and reserve planning.

Data Quality Checks

Common Exam Traps

Role and Artifact Reference

“What Should the Manager Do Next?” Decision Table

Rapid Calculation Checklist

Before solving:

1. Identify the status date.
2. List PV, EV, AC, BAC.
3. For variance, start with EV minus something:
   • Cost: EV - AC.
   • Schedule: EV - PV.
4. For index, start with EV divided by something:
   • Cost: EV / AC.
   • Schedule: EV / PV.
5. Positive variance is favorable; index above 1.0 is favorable.
6. For EAC, identify the assumption:
   • Future at plan.
   • Future follows CPI.
   • Future affected by CPI and SPI.
   • Bottom-up re-estimate.
7. Compare TCPI to current CPI for realism.
8. Check whether the question asks for calculation, interpretation, or management action.

Final Review Targets

Prioritize these before practice sets:

• EV, PV, AC distinctions.
• CV, SV, CPI, SPI, EAC, ETC, VAC, and TCPI.
• EAC formula assumptions.
• Control account structure and CAM accountability.
• PMB, MR, UB, CBB, and TAB distinctions.
• EV measurement method selection.
• Variance analysis quality.
• Schedule integration and critical path limits of SPI.
• Change control versus MR use versus rebaseline.
• Data quality problems that invalidate metrics.

Next step: work timed earned value calculation and scenario questions, then review each miss by asking whether the error was formula selection, baseline logic, forecasting assumption, or management response.