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Schedule Variance (SV)

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Schedule Variance (SV) is an essential component of Earned Value Management (EVM) that quantifies the difference between the work actually completed and the work planned to be completed at a given point in time. It is calculated by subtracting the Planned Value (PV) from the Earned Value (EV), expressed as SV = EV - PV. A positive SV indicates that a project is ahead of schedule, accomplishing more work than planned. A negative SV signifies that a project is behind schedule, and an SV of zero indicates the project is exactly on schedule. SV is crucial because it provides a monetary representation of schedule performance, allowing project managers to understand schedule deviations in financial terms. This aids in making informed decisions regarding resource reallocation, schedule adjustments, and implementing corrective actions to realign the project timeline. By analyzing SV, project managers can identify schedule slippages early, understand their impact on the project budget and timeline, and take necessary measures to mitigate risks. It also helps in forecasting the project's future schedule performance and completion date, enabling better planning and communication with stakeholders. Schedule Variance is often used in conjunction with the Schedule Performance Index (SPI) to provide a comprehensive picture of schedule performance. While SV provides the absolute value of schedule deviation, SPI offers a relative measure of schedule efficiency. Together, they enable project managers to analyze trends over time and assess the effectiveness of schedule management strategies. It's important to note that SV can sometimes be misleading in projects with non-linear spending patterns. Therefore, SV should be interpreted carefully, considering the project's context and supplemented with additional analysis when necessary.

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PMI-SP - Earned Value Management (EVM) Example Questions

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Question 1

When calculating Schedule Variance (SV) in a project tracking system, how would a value of zero (SV = 0) be interpreted?

Correct Answer: The project is proceeding exactly according to schedule

Schedule Variance (SV) is a fundamental metric in Earned Value Management that compares the actual progress to planned progress. When SV equals zero, it indicates perfect alignment with the planned schedule. When SV = 0, it means that the Earned Value (EV) equals the Planned Value (PV), which mathematically proves that the project is precisely on schedule. This matches with the statement that the project is proceeding exactly according to schedule. The other options are incorrect because: - Quality metrics and performance goals are not related to Schedule Variance calculations - A mix of early and late activities might result in various SV values, not necessarily zero - Resource utilization is tracked through Cost Variance (CV), not Schedule Variance (SV)

Question 2

When evaluating Schedule Variance (SV) in a project's earned value metrics, which calculation method best reflects the project's schedule performance status?

Correct Answer: SV = EV - PV

Schedule Variance (SV) is calculated as Earned Value (EV) minus Planned Value (PV). This formula (SV = EV - PV) is the standard method for determining whether a project is ahead or behind schedule. When SV is positive, the project is ahead of schedule. When SV is negative, the project is behind schedule. When SV is zero, the project is on schedule. The other formulas are incorrect because: - Adding AC (Actual Cost) to the formula would mix cost metrics with schedule metrics, which defeats the purpose of measuring schedule performance - Dividing by BAC (Budget at Completion) would create a ratio rather than a variance - The combinations of EV + PV - AC do not provide meaningful schedule performance information

Question 3

Which of the following is true about Schedule Variance (SV) when calculating it using Earned Value Analysis?

Correct Answer: SV represents the difference between earned value and planned value

Schedule Variance (SV) in Earned Value Analysis is calculated as the difference between Earned Value (EV) and Planned Value (PV). The formula is: SV = EV - PV This metric shows whether a project is ahead or behind schedule: - If SV is positive: The project is ahead of schedule - If SV is negative: The project is behind schedule - If SV is zero: The project is on schedule The other answers are incorrect because: - Adding management reserve to actual cost is not part of SV calculation - Contingency baseline is not related to Schedule Variance measurement - Multiplying planned value and actual cost by performance index is not a valid EV calculation

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