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You work as a Project Manager for Media Perfect Inc. Several projects are running under your
supervision. Rick, team leader of a project, provides you performance indexes of his project. The
schedule variance (SV) of his project is 25. What does this figure depict?
According to the question, the schedule variance (SV) of the project is 25, which is a
positive value. The positive SV depicts that the project is
ahead of the planned schedule.
What is SV?
Schedule variance (SV) is a measure of schedule performance on a project. The variance notifies that
the schedule is ahead
or behind what was planned for this period in time. The schedule variance is calculated based on the
following formula:
SV = Earned Value (EV) - Planned Value (PV)
If the resulting schedule is negative, it indicates that the project is behind schedule. A value greater
than 0 shows that the
project is ahead of the planned schedule. A value of 0 indicates that the project is right on target.
Answer option A is incorrect. The negative SV means that project is behind the schedule.
Answer option C is incorrect. The zero SV means that project is right on target.
Answer option B is incorrect. This result can be drawn by looking at the cost variance (CV) of the
project.
What is CV?
Cost variance (CV) is a measure of cost performance on a project. The variance notifies if costs are
higher than budgeted
or lower than budgeted. The cost variance is calculated based on the following formula:
CV = Earned Value (EV) - Actual Cost (AC)
A positive value means that spending is less than budgeted, whereas a negative value indicates that
costs are higher than
originally planned for the project.