EVT uses several formulas to analyze and monitor the project schedule. EVT formulas can be used to determine if a project is on schedule or falling behind. The formulas help the Project Manager determine whether problems or risks may arise.
Planned Value (PV) = Budgeted Cost for Work Scheduled (BCWS)
Earned Value (EV) = Budgeted Cost for Work Complete (BCWC) or Budgeted Cost for Work Performed (BCWP)
Actual Cost (AC) = Actual Cost for Work Completed (ACWC)
Schedule Variance (SV) = EV minus PV
SV will equal zero when a project is complete because all planned values will have been earned.
Schedule Performance Index (SPI) = EV divided by PV
SPI is an efficiency indicator to reflect schedule performance of a project.
You are working on a project that has a PV of $200,000, an EV of $100,000, and an AC of $150,000. What is the SV for the project? Reply to this post with your answer and a brief explanation.
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The SV is -100,000. The project is behind schedule.
The project management team (PM and controls) should determine the cause of the poor performance (CV = -50,000, so this project is both behind schedule and over budget). It could be poor planning. It could be a lack of resources. It could be problems procuring materials. Hopefully the Budget at complete (BAC) is large enough that the project team can implement a recovery plan for the schedule (schedule is far easier to recover than cost).
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