Schedule Variance Calculator
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Schedule variance (SV) is a crucial metric in project management that helps measure the difference between the work actually completed and the work planned at any given point in time. It is typically used in Earned Value Management (EVM), a technique that integrates the scope, schedule, and cost of a project.
Historical Background
Earned Value Management (EVM) has its roots in industrial manufacturing in the early 20th century but was formalized for project management in the 1960s by the U.S. Department of Defense to track military and aerospace projects. Schedule variance is a key component of EVM, providing early warning signals for project schedule performance.
Calculation Formula
The formula to calculate schedule variance is simple:
\[ SV = EV - PV \]
where:
- \(SV\) is the Schedule Variance,
- \(EV\) is the Earned Value, and
- \(PV\) is the Planned Value.
Both EV and PV are measured in currency units, such as dollars.
Example Calculation
If the earned value (EV) of a project is $40,000 and the planned value (PV) is $45,000, the schedule variance (SV) is calculated as:
\[ SV = \$40,000 - \$45,000 = -\$5,000 \]
A negative SV indicates that the project is behind schedule.
Importance and Usage Scenarios
Schedule variance is essential for project managers to understand how far ahead or behind a project is in terms of the schedule. It is used alongside cost variance to provide a comprehensive view of project performance. Regular calculation of SV allows for timely adjustments in project management strategies to keep projects on track.
Common FAQs
-
What does a negative schedule variance mean?
- A negative schedule variance indicates that the project is behind schedule.
-
Can schedule variance be zero?
- Yes, if the earned value equals the planned value, schedule variance will be zero, indicating that the project is exactly on schedule.
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How does schedule variance affect project planning?
- Regular monitoring of schedule variance allows project managers to make necessary adjustments to ensure project timelines are met.
The Schedule Variance Calculator simplifies the process of monitoring project schedule performance, making it a valuable tool for project managers and team members alike.