Schedule Variance

Correct Answer: The project is behind schedule

Schedule Variance (SV) is the difference between the Earned Value (EV) and the Planned Value (PV). So, if the SV is negative, it means the project's performance is less than what was initially planned. The project is therefore behind schedule. 'The project is on schedule' is incorrect because a negative SV indicates a delay. 'The project is ahead of schedule' is also incorrect for the same reason. 'There is a cost overrun' is not correct, because, although the SV has been calculated, Cost Variance (CV) is not provided. SV does not infer anything about cost overruns or under-runs.

Correct Answer: Schedule Variance: -$1,000; Schedule Performance Index: 0.833

The Schedule Variance is calculated as the Earned Value minus the Planned Value, i.e. $5000 - $6000 = -$1000. Therefore, Schedule Variance is -$1000. A negative variance signifies that the project is behind schedule. The Schedule Performance Index is calculated as the Earned Value divided by the Planned Value, i.e. $5000 / $6000 = 0.833. Therefore, Schedule Performance Index is 0.833. A value less than 1 indicates less work was accomplished than planned. The other answers are incorrect as they either imply a positive schedule variance, suggesting the project is ahead of schedule, or a schedule performance index greater than 1, suggesting more work was done than planned, both of which are not the case.

Correct Answer: Planned Value (PV)

The correct answer is 'Planned Value (PV)'.

Schedule Variance (SV) is a measure of schedule performance in earned value management. It is calculated by subtracting the Planned Value (PV) from the Earned Value (EV).

The formula for Schedule Variance is:
SV = EV - PV

This calculation helps determine whether a project is ahead of schedule or behind schedule. A positive SV indicates the project is ahead of schedule, while a negative SV indicates it is behind schedule.

Actual Cost (AC) is not used in the SV calculation. It is used for Cost Variance (CV) instead.

Budget at Completion (BAC) is the total planned value for the project and is not used in the SV formula.

Estimate at Completion (EAC) is a forecasting metric and is not part of the SV calculation.

Understanding the SV formula is crucial for project managers to assess and communicate schedule performance effectively.