4. What are the Schedule and Cost Variances?
What are the Schedule and Cost Variances?
Get 50% discount on our courses (see links below). Use the voucher
DCA4FRIENDS
0:50 – Defining Schedule Variance or SV
2:35 – Defining Cost Variance or CV
4:25 – Exercise: Calculate SV and CV
In this presentation I will define the two variance parameters to describe the status of the project: Schedule Variance or SV and Cost Variance or CV.
The Schedule Variance provides the difference between the schedule baseline at a specific moment in time (t) or PV(t) with the completed deliverables or Earned Value at the same time or EV(t).
The Schedule variance is defined as the difference between the earned value and the planned value:
SV(t) = EV(t) – PV(t)
Basically, it provides the schedule information of the project by comparing what should have been completed (PV) with what has been competed (EV).
When the SV is larger than or equal to zero, the project is ahead of schedule or on schedule. The SV provides the “Schedule Position” of the project
The Cost Variance provides the difference between the created value or earned value EV(t) and the cost to create that value or the actual cost at a specific moment in time AC(t).
The Cost Variance is defined as the difference between the EV(t) and the AC(t):
CV(t) = EV(t) – AC(t)
Basically, it provides the cost information of the project by comparing what value has been completed (EV) with the cost to create that value (AC).
When the CV is larger than or equal to zero, the project is below or on budget. The CV provides the “Cost Position” of the project
More about our online courses:
Apply our Voucher for a 50% discount on public price:
DCA4FRIENDS
Project Management Basics
Learn the basics about projects and project management in this 14.5-hour course and get yourself a head start over your colleagues and peers
https://deceusteracademy.com/courses/project-management-tools-and-techniques/
Fast Track to Earned Value Management
Get a quick overview of how earned value management works and how you can use it for your projects. Understanding EVM will give you a clear advantage over other project managers.
https://deceusteracademy.com/courses/fast-track-to-earned-value-management/
Quality for Operations and Project Managers
Quality is a very important issue in operations management but also in project management. Understanding the principles of quality, the tools, and the applications will ensure that your projects are providing the expected quality and your stakeholders will be very satisfied.
https://deceusteracademy.com/courses/quality-for-operations-and-project-managers/
Introduction to time value of money
Financial parameters are very important when considering the financial viability of the project. Understand the principle of time value of money, and compounded interest and discover the main financial parameters that you can use to evaluate the financial performance of your projects like PBT, ROI, NPV, and IRR.
Subscribe to this channel for more Project Management, Financial and Business content and leave a comment below if you have any questions.
Website:
Follow me on FB for more Project Management tips and tricks:
https://www.facebook.com/deceusteracademy/
#PMP #ProjectManagement #DeCeusterAcademy