Project managers are an integral part of any organization structure. They are responsible for managing all aspects of the business. They manage the budget, work schedules, and people. They are not experts in project management and cannot predict how long a project will take. Instead, they use a powerful calculation called schedule variance to measure and evaluate project progress. Schedule variance (SV) is a tool that will help you manage your project’s schedule, regardless of whether you are studying for the PMP exam or are already in the process. Cheat Sheet for Business Profitability
We are grateful that you have subscribed! All newsletter subscribers can download this (and many other ActiveCollab Project Management Guides). We are unable to subscribe you at the moment. Please double-check your email address. If issue still persist, please let us know by sending an email to [email protected] Try Again If you’re encountering this term for the first time, you must be wondering what schedule variance is. SV is the difference between the earned value (EV), and the project’s projected value (PV). Schedule variance is a measure of whether the work authorized is equal, falls behind or exceeds the project’s planned value (PV).
Cumulative schedule variance
While we can use the same approach to calculate them, their results are quite different!Point-in-time SV indicates the difference between EV (earned value) and EP (planned value) concerning one period. Variances from other periods, such as exceeds or shortfalls, are not considered. The cumulative SV shows the difference in EV and EP over several consecutive periods. It can be either the sum SV of all periods or the difference between the SVs and PVs. SV is used to indicate if a project schedule has advanced or fallen behind. It is most commonly used in EVM (Earned Valu Management). SV is calculated when the budgeted cost for work scheduled is subtracted the budget cost for work performed. This is how BCWS evaluates the entire project’s budget.
BCWP reviews the costs of work performed
How do I calculate schedule variance?
You can use the following schedule variance calculation to calculate one or more periods:SV = PV – EVIn this example, EV is the earned and PV is the planned. To calculate EV, we use earned value analysis. To determine EV, we use earned value analysis. Both parameters, EV, and PV, must be denominated in the same unit. This is usually a currency like dollars or days and should refer to the same period. Both EP and EV can be used to describe one or more periods. Even though the basic calculations are the same, the parameters can be different for each case.