Schedule Variance Analysis and Corrective Actions

Schedule Variance Analysis and Corrective Actions

Introduction

Schedule Variance Analysis and Corrective Actions are critical components of project time management, especially for PMI-SP certification exams. This guide explains these concepts thoroughly, their importance, application, and how to approach exam questions on this topic.

Why Schedule Variance Analysis is Important

Schedule variance analysis is essential because it:

• Provides early warning of schedule problems
• Quantifies the magnitude of schedule deviations
• Helps determine if corrective actions are necessary
• Enables data-driven decision making
• Supports stakeholder communication about project status
• Serves as a key performance indicator of project health

What is Schedule Variance Analysis?

Schedule Variance Analysis is a technique used to evaluate the difference between planned and actual schedule performance. It is typically performed as part of Earned Value Management (EVM) and includes:

• Schedule Variance (SV): The difference between the earned value and planned value (SV = EV - PV)
• Schedule Performance Index (SPI): The ratio of earned value to planned value (SPI = EV/PV)

A negative SV or an SPI less than 1.0 indicates the project is behind schedule, while a positive SV or SPI greater than 1.0 indicates the project is ahead of schedule.

How Schedule Variance Analysis Works

1. Data Collection: Gather actual progress data from team members and systems
2. Comparison: Compare actual progress against the baseline schedule
3. Calculation: Calculate schedule variances and performance indices
4. Analysis: Analyze the root causes of variances
5. Reporting: Document findings in performance reports
6. Decision Making: Determine if corrective actions are needed

Corrective Actions for Schedule Variances

When schedule variances are identified, potential corrective actions may include:

• Fast tracking: Performing activities in parallel that were originally scheduled sequentially
• Crashing: Adding resources to critical path activities to reduce duration
• Scope reduction: Reducing or eliminating certain deliverables (requires change control)
• Resource reallocation: Moving resources from non-critical to critical activities
• Schedule rebaselining: Setting a new approved schedule baseline (last resort)
• Work calendar adjustments: Adding overtime or additional shifts

Implementation Process for Corrective Actions

1. Identify options: Brainstorm possible corrective actions
2. Analyze impacts: Assess the impact of each option on scope, time, cost, quality, and risks
3. Select strategy: Choose the most appropriate corrective action
4. Document changes: Update project documents through change control processes
5. Implement actions: Execute the approved corrective actions
6. Monitor results: Track the effectiveness of corrective actions

Exam Tips: Answering Questions on Schedule Variance Analysis and Corrective Actions

1. Understand the formulas:
• Memorize SV = EV - PV and SPI = EV/PV
• Practice interpreting what positive and negative values mean

2. Know the thresholds:
• SV = 0 and SPI = 1.0 mean on schedule
• SV < 0 and SPI < 1.0 mean behind schedule
• SV > 0 and SPI > 1.0 mean ahead of schedule

3. Connect analysis to actions:
• Remember that different variances require different corrective approaches
• Be familiar with which corrective actions are appropriate in specific scenarios

4. Focus on process order:
• Understand that analysis always comes before corrective action
• Change requests must go through proper change control procedures

5. Apply situational judgment:
• Consider project constraints when selecting corrective actions
• Think about the trade-offs between different corrective strategies

6. Mind your stakeholders:
• Remember that schedule changes often need stakeholder approval
• Communication is essential when implementing corrective actions

7. Look for red herrings:
• Some exam options may suggest taking no action when variances are significant
• Other options might suggest excessive actions for minor variances

8. Practice calculations:
• Work through sample problems to become comfortable with the math
• Be prepared to interpret EVM graphs and charts

By mastering Schedule Variance Analysis and Corrective Actions, you'll be well-prepared to handle these topics on the PMI-SP exam and apply these crucial skills in real-world project management scenarios.