Beth is the project manager of the BFG Project for her company. In this project Beth has decided to create a contingency response based on the performance of the project schedule. If the project…

The correct answer is A. SV=EV-PV. In Earned Value Management (EVM), Schedule Variance (SV) measures whether a project is ahead of or behind schedule in terms of value. The correct formula is SV = EV - PV (Earned Value minus Planned Value). A positive SV means ahead of schedule; negative means behind. Option B…

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Question

Beth is the project manager of the BFG Project for her company. In this project Beth has decided to create a contingency response based on the performance of the project schedule. If the project schedule variance is greater than $10,000 the contingency plan will be implemented. What is the formula for the schedule variance?

Options

ASV=EV-PV
BSV=EV/AC
CSV=PV-EV
DSV=EV/PV

How the community answered

(36 responses)

A
89% (32)
B
3% (1)
C
3% (1)
D
6% (2)

Explanation

In Earned Value Management (EVM), Schedule Variance (SV) measures whether a project is ahead of or behind schedule in terms of value. The correct formula is SV = EV - PV (Earned Value minus Planned Value). A positive SV means ahead of schedule; negative means behind. Option B (EV/AC) is the Cost Performance Index (CPI). Option C (PV - EV) reverses the formula, producing inverse results. Option D (EV/PV) is the Schedule Performance Index (SPI), a ratio rather than a variance. The question's context about Beth's $10,000 threshold is a variance (difference), confirming SV = EV - PV is correct.

Topics

#Schedule Variance (SV)#Earned Value Management (EVM)#Project Schedule#Contingency Planning

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