Certified Supply Chain Professional (CSCP) Practice Exam

What does earned value measurement (EVM) help project managers assess?

1. Team performance and morale

2. Scope, schedule, and cost variance

3. Customer satisfaction levels

4. Resource allocation efficiency

The correct answer is: Scope, schedule, and cost variance

Earned Value Measurement (EVM) is a powerful tool used by project managers to assess project performance in terms of its progress and adherence to the planned schedule and budget. Specifically, EVM provides a methodology to quantify the value of work actually performed up to a certain point in time and compares it with the planned performance and actual costs incurred. By measuring scope, schedule, and cost variance, EVM allows project managers to determine how much work has been completed compared to what was planned (scope), whether the project is on track according to the timeline (schedule), and how the actual costs align with the budget (cost). This results in critical insights into overall project health, enabling proactive decision-making regarding any necessary adjustments to keep the project on track. Other options, while they may be relevant to project management, do not specifically relate to the core strengths of EVM. Team performance and morale, for instance, may be influenced by the project's progression and delivery but are not directly measured by EVM. Similarly, customer satisfaction levels or resource allocation efficiency are outcomes or aspects of project management but fall outside the specific metrics that EVM provides.