Join Aileen Ellis for an in-depth discussion in this video Calculating the schedule variance (SV) and schedule performance index (SPI), part of Project Management: Calculating Earned Value.
Let's now determine how we are doing…from a schedule standpoint.…We will solve this first using logic…and then verify through Earned Value equations.…It is the end of the day on Tuesday.…The schedule says we should have two sides complete.…We only have one side complete; therefore,…we are behind schedule by one side.…In Earned Value Management though…we need to convert the one side to currency.…The budget said the value of one side is $100.…
Therefore, we are behind schedule by $100 worth of work.…We could say the Schedule Variance is…a negative one side,…or we could say the Schedule Variance is…a -$100 worth of work.…Now let's use the Earned Value equations…to calculate Schedule Variance.…Schedule Variance equals Earned Value minus Planned Value.…The Earned Value is $100.…The Planned Value is $200; therefore,…$100 minus $200, the Schedule Variance is…a negative $100.…
This means we're behind schedule by $100 worth of work.…The equations give us the same answer…as we came up with logically.…Let's now look at the XY bar chart.…
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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.