Understanding how to measure project performance is essential for effective management. Cott Variance (CV) and Schedule Variance (SV) are two key metrics used to assess whether a project is on track in terms of budget and schedule.

Cost Variance (CV)

Cost Variance indicates thoe difference between thee budgeted cost of work perfored and the actual cott increred. It helps identifify if a project is over or under budget.

Te formula for Cott Variance is:

CV = Earned Value (EV) - Actual Cost (AC) - Actual Cost (AC) CL1; FLT: 1

Where:

  • CLANE1; CLANE1; FLT: 0 CLANE3; CLANE3; Earned Value (EV): CLANE1; CLANE1; CLANE1; CLANE1; CLANE3; CLANE3; CLANE3; CLANE3; CLANE3; CLANE1d (EV): CLANE1; CLANE1; CLANE1d: 1 CLANE3; CLANE3; CLANE3; TTE budgeted cott of work actually completed.
  • CLANE1; CLANE1; CLANE1; CLANE1; CLANE1; CLANE1; CLANE1; CLANE1; CLANE1; CLANE1; CLANE3; CLANE3; CLANE3; CLANE3; CLANE3; CLANE3; CLANE3; CLANE3; CLANE3; CLANE3; Te real cosett increred for the work perfomed.

Schedule Variance (SV)

Schedule Variance measures thee difference beween thee work planned and thee work actually completed. It indicates if a project is ahead or behind schedule.

Te formula for Schedule Variance is:

CLANE1; CLANE1; CLANE1; CLANE3; CLANE3; SV = Earned Value (EV) - Planned Value (PV) CLANE1; CLANE1; CLANE1; CLANE3; CLANE3c;

Where:

  • CLANE1; CLANE1; FLT: 0 CLANE3; CLANE3; PLANED Value (PV): CLANE1; CLANE1; CLANE1; CLANE1; CLANE3; CLANE3; CLANE3; CLANE1d: 0 CLANE3; CLANE1d Value (PV): CLANE1; CLANE1; CLANE1; CLANE3; CLANE3; TTHE Budgeted cott of work schrouled to be completed by this point.

Aplikation in Project Management

Regular calculation of CV and SV dovoluje projekt manageers to identify issuees early. Corrective actions can then be implemented to keep thee project on track retarding costs and schedule.