Schedule Variance

Key Concepts Related to Schedule Variance:

• Planned Value (PV): The value of the work that was planned to be completed by a specific time.
• Earned Value (EV): The value of the work actually completed by a specific time.
• Schedule Variance (SV): The difference between the Earned Value (EV) and Planned Value (PV), calculated as: SV= EV−PVSV = EV - PVSV=EV−PV

How to Calculate Schedule Variance:

• If the value is positive (SV > 0), the project is ahead of schedule.
• If the value is negative (SV < 0), the project is behind schedule.
• If the value is zero (SV = 0), the project is on schedule.

Significance of Schedule Variance:

• Early Detection of Delays: Helps identify delays early, allowing project managers to take corrective actions to bring the project back on track.
• Progress Tracking: Provides an ongoing measure of how much work has been completed relative to the planned timeline.
• Stakeholder Communication: Provides stakeholders with a quantitative measure of how well the project is meeting its timeline expectations.
• Performance Evaluation: Helps evaluate the effectiveness of project scheduling and resource allocation strategies.

Limitations of Schedule Variance:

• Not a Complete Measure: While SV indicates whether a project is on time, it doesn’t provide insights into the overall health of the project, such as budget or quality.
• Context-Dependent: A negative SV may not always indicate a serious issue, as certain tasks may have more flexible timelines than others.
• Focus on Short-Term: SV is focused on short-term performance and may not reflect long-term trends in project delivery.

Best Practices for Managing Schedule Variance:

• Track Regularly: Continuously monitor and calculate schedule variance to identify problems early.
• Adjust Plans if Necessary: If the project is consistently behind schedule, consider adjusting the timeline, resources, or priorities.
• Analyze Root Causes: When significant schedule variance is detected, conduct a root cause analysis to identify the underlying issues and take corrective actions.

Other Terms: