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Schedule Variance (SV)

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Schedule Variance (SV) is a fundamental concept in Earned Value Management (EVM) that quantifies the difference between the amount of work actually completed by a certain point in time and the amount of work planned to be completed. It is an essential indicator of schedule performance, calculated using the formula **SV = EV - PV**, where **EV** represents Earned Value and **PV** represents Planned Value. Earned Value (EV) is the budgeted cost of work that has actually been completed, while Planned Value (PV) is the budgeted cost of work that was scheduled to be completed up to that point. A positive SV indicates that the project is ahead of schedule, meaning more work has been completed than planned, which could imply higher efficiency or faster progress. Conversely, a negative SV signifies that the project is behind schedule, indicating delays and potential scheduling issues that need to be addressed promptly to avoid further slippage. SV is crucial for project managers as it provides an early warning signal of schedule deviations, allowing for timely corrective actions such as reallocating resources, adjusting project tasks, or revising schedules. SV is particularly important in projects with tight deadlines or those that are schedule-driven, where timely completion is critical. Regular monitoring of SV helps in maintaining control over the project schedule and ensures that the project stays aligned with its planned timeline. However, it's important to note that SV should not be considered in isolation. It should be analyzed in conjunction with other EVM metrics like Cost Variance (CV) and Schedule Performance Index (SPI) to provide a comprehensive view of project performance. Additionally, understanding the root causes of schedule variance is essential for implementing effective corrective measures and improving future project planning and execution.

Schedule Variance (SV) Guide: Importance, Calculation, and Exam Tips

What is Schedule Variance (SV)?

Schedule Variance (SV) is a key metric in Earned Value Management (EVM) that measures project performance related to time. It quantifies the difference between the work you've actually completed (Earned Value) and the work you planned to complete by this point (Planned Value).

The formula for SV is: SV = EV - PV
Where:
• EV (Earned Value) = The value of work actually completed
• PV (Planned Value) = The value of work scheduled to be completed

Why Schedule Variance is Important

SV provides critical insights that help project managers:

• Identify schedule slippages early before they become major problems
• Make data-driven decisions about project timelines
• Communicate project status to stakeholders objectively
• Forecast future performance trends
• Compare performance across multiple projects using standardized metrics

How Schedule Variance Works

SV tells you if your project is ahead or behind schedule in monetary terms:

• Positive SV (SV > 0): The project is ahead of schedule. You've completed more work than planned at this point.
• Negative SV (SV < 0): The project is behind schedule. You've completed less work than planned.
• Zero SV (SV = 0): The project is exactly on schedule.

For example, if your SV = -$10,000, it means your project has completed $10,000 less work than planned, indicating you're behind schedule.

Schedule Variance Percentage

SV can also be expressed as a percentage: SV% = (SV ÷ PV) × 100%

This normalizes the variance, making it easier to understand the magnitude of schedule deviation relative to the planned work.

Limitations of Schedule Variance

• SV is measured in currency, not time units
• At project completion, SV will always equal zero (even if the project finished late)
• It may not accurately reflect critical path delays
• It should be used alongside Schedule Performance Index (SPI) for a complete picture

Exam Tips: Answering Questions on Schedule Variance (SV)

1. Know the formula by heart: SV = EV - PV. Many exam questions will ask you to calculate SV given EV and PV values.

2. Interpret results correctly: Remember that positive SV is good (ahead of schedule), negative SV is bad (behind schedule).

3. Understand the units: SV is expressed in currency units (dollars, euros, etc.), not time units.

4. Link to other EVM metrics: Be prepared to explain how SV relates to SPI, CV, CPI, and other EVM metrics.

5. Apply to scenarios: Practice applying SV calculations to various project scenarios. Exams often present case-based questions.

6. Recognize corrective actions: Be able to recommend appropriate corrective actions based on SV results.

7. Consider with other factors: Understand that SV should be considered alongside other project factors for a complete analysis.

8. Watch for calculation traps: Double-check your math and be careful about positive/negative signs.

9. Know the limitations: Understand when SV might not provide the most accurate picture of schedule performance.

10. Practice with past exams: Complete practice questions focusing on EVM calculations to build confidence.

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PMI-SP - Variance Analysis Example Questions

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Question 1

When analyzing Schedule Variance (SV) trends over multiple reporting periods in a construction project, what does a consistently decreasing negative value indicate?

Correct Answer: The project is recovering from earlier delays but still remains behind schedule

A consistently decreasing negative Schedule Variance (SV) indicates improvement in schedule performance, even though the project is still behind schedule. When SV is negative, it means the project is behind schedule. However, if this negative value is consistently decreasing (getting closer to zero), it shows the project is catching up and reducing the gap between planned and actual progress. This is like running a race where you started late - you're still behind (negative SV) but gradually catching up (decreasing negative value). The other options are incorrect because: - A progressively worsening schedule delay would show an increasing negative SV, not decreasing - Optimal schedule performance would show an SV close to zero, not negative - Schedule delays stabilizing would show a constant negative SV, not a decreasing one A decreasing negative SV is a positive trend indicating recovery, though the project hasn't fully caught up to the baseline schedule yet.

Question 2

When comparing Schedule Variance (SV) and Schedule Performance Index (SPI) in a project status report, what best represents a healthy project with SV = $10,000?

Correct Answer: SPI = 1.05, indicating the project is ahead of schedule

A positive Schedule Variance (SV) of $10,000 indicates that the project is ahead of schedule, as the Earned Value is greater than the Planned Value. The SPI formula is: SPI = EV/PV When SV is positive, SPI will be greater than 1.0, showing that work is being completed faster than planned. An SPI of 1.05 correctly aligns with the positive SV of $10,000, indicating the project is performing well from a schedule perspective. The other options are incorrect because: - An SPI of 0.95 would indicate the project is behind schedule - An SPI of 1.00 would indicate the project is exactly on schedule - An SPI of 0.90 would indicate significant schedule delays Since we have a positive SV, the SPI must be greater than 1.0, making 1.05 the logical and mathematically consistent choice.

Question 3

In a project where Schedule Variance (SV) changes from -$8,000 to -$12,000 to -$5,000 between three consecutive reporting periods, what pattern does this reveal?

Correct Answer: The project's schedule performance is experiencing fluctuating recovery and decline phases

Schedule Variance (SV) pattern analysis: 1. First period: -$8,000 2. Second period: -$12,000 (worsening by -$4,000) 3. Third period: -$5,000 (improving by +$7,000) This pattern clearly shows fluctuation: - Initial negative value - Further decline in performance - Followed by significant improvement This demonstrates alternating phases of decline and recovery in schedule performance. The project is not showing steady improvement, as the middle period got worse before getting better. The other answers are incorrect because: - A pattern showing continuous improvement would need consistently increasing SV values - There is no steady decline as the values fluctuate significantly - The data only shows schedule variance and does not provide information about resource optimization or efficiency

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