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Cost Performance Index

Schedule variance

Schedule Variance status does indicate the dollar value difference between work that is ahead or behind the plan and reflects a given measurement method

Schedule Variance status does not address impact of work sequence, address importance of work, reflect critical path assessment, indicate amount of time it will slip, identify source (labor & material) of difference, indicate the time ahead/behind (or regain) schedule, nor indicate the cost needed to regain schedule.

The formula utilized to express schedule variance is project earned value minus the project planned value as of the date of examination. (SV = EV – PV) If the variance is equal to 0, the project is on schedule. If a negative variance is determined, the project is behind schedule and if the variance is positive the project is ahead of schedule.

Cost Variance

The cost variance is defined as the “difference between earned value and actual costs. (CV = EV – AC)” (PMI, 2004, p. 357) Sometimes this formula is expressed as the difference between budgeted cost of work performed and actual cost work performed. If the variance is equal to 0, the project is on budget. If a negative variance is determined, the project is over budget and if the variance is positive the project is under budget.

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