Join Aileen Ellis for an in-depth discussion in this video Calculating the SV and SPI, part of Project Management: Calculating Earned Value.
Let's now determine how we are doing…from a schedule standpoint.…To do this we need to begin…with the four critical terms,…the BAC, the PV, the EV and the AC.…Now lets use the Earned Value equations.…Schedule Variance equals Earned Value minus Planned Value.…If we plug in the numbers,…Schedule Variance equals $150,000 minus $300,000.…This give us a Schedule Variance of -$150,000.…
It's important to know what this really means.…It means as of today we have $150,000 worth…of work complete.…We should have $300,000 worth of work complete;…therefore, we are behind schedule by $150,0000 worth…of work.…Let's look at the XY bar chart.…We can see that the Earned Value line, the red line,…is lower than the Planned Value line, the blue line;…therefore, we have less work complete than planned.…
We are behind schedule.…At this point on our projects,…we would now try to determine why we are behind schedule,…and if there is corrective action we could recommend.…Let's now think about the Schedule Performance Index,…the SPI.…The equation SPI equals Earned Value divided by Planned Value.…
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- What is earned value management?
- Who uses EVM?
- Determining budget at completion, planned value, and earned value
- Calculating schedule and cost variance as well as schedule and cost performance index
- Forecasting future costs
- Computing TCPI for project success
- Exploring limitations of EVM<br><br>
- The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.