AACE International Exam CCP Topic 3 Question 12 Discussion

Productivity loss in projects, particularly in construction, can be measured using various methods. The Earned Value Management (EVM) system includes the Earned Formula to compare the work performed against the work planned.

Key Points:

Earned Formula:

This formula is used in EVM to calculate key performance indicators like the Cost Performance Index (CPI) and Schedule Performance Index (SPI), which help in understanding productivity loss.

By comparing earned value (the work actually performed) against planned value, project managers can assess whether the project is behind or ahead in terms of schedule and budget, indirectly measuring productivity loss.

Other Options:

Central Limit Theorem: This is a statistical concept, not directly used for measuring productivity loss.

Value Engineering: A process that seeks to improve the value of goods or products by using an examination of function, not directly related to measuring productivity loss.

Conclusion: The correct answer is C. Earned formula because it is directly linked to measuring productivity loss in project management through the EVM system.