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You are the project manager of the NHA Project. This project is expected to last one year with
quarterly milestones throughout the year. Your project is supposed to be at the third milestone
today, but you are likely to be only 60 percent complete. Your project has a BAC of $745,000 and you
have spent $440,000 of the budget-to-date. What is your schedule variance for this project?
The schedule variance is found by subtracting the planned value from the earned value.
In this instance, it is $447,000 minus $558,750.
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 C is incorrect. $7,000 is the cost variance for this project.
Answer option A is incorrect. $11,667 is the variance at completion for this project.
Answer option B is incorrect. 1.02 is the cost performance index for this project.