Definition and Calculation
Schedule variance (SV) is a project management metric that measures the difference between a project’s planned and actual progress at a specified time. It is calculated by subtracting the budgeted cost of work scheduled (BCWS) from the budgeted cost of work performed (BCWP). The formula for SV is:
Key Facts
- Definition: Schedule variance (SV) is a metric that compares the planned schedule of a project with the actual progress at a given time.
- Calculation: Schedule variance is calculated by subtracting the budgeted cost of work scheduled (BCWS) from the budgeted cost of work performed (BCWP). The formula is: SV = BCWP – BCWS.
- Positive and Negative SV: A positive SV indicates that the project is ahead of schedule, meaning that the work completed is greater than planned. Conversely, a negative SV indicates that the project is behind schedule, and the work completed is less than planned.
- Interpretation: Schedule variance helps project managers assess whether the project is on track and whether corrective actions are needed to keep it on schedule.
- Schedule Variance Percentage: In some cases, schedule variance is expressed as a percentage of the planned work. The formula for calculating schedule variance percentage is: SV% = (SV / BCWS) x 100.
- Importance: Schedule variance is an essential metric for project cost and progress analysis. It allows project managers to identify deviations from the planned schedule and take corrective actions to ensure the project stays on track.
SV = BCWP – BCWS
Interpreting Schedule Variance
A positive SV indicates that the project is ahead of schedule, meaning that the work completed is greater than planned. Conversely, a negative SV indicates that the project is behind schedule, and the work completed is less than planned.
Importance of Schedule Variance
Schedule variance is an essential metric for project cost and progress analysis. It allows project managers to:
- Assess whether the project is on track
- Identify deviations from the planned schedule
- Take corrective actions to ensure the project stays on schedule
Schedule Variance Percentage
In some cases, schedule variance is expressed as a percentage of the planned work. The formula for calculating schedule variance percentage is:
SV% = (SV / BCWS) x 100
Conclusion
Schedule variance is a critical metric for project managers to monitor and analyze. It provides valuable insights into the project’s progress and helps ensure that the project stays on track.
References
- Schedule Variances – What Does it Mean, and How do I Figure it Out? – AcqNotes
- What is Schedule Variance? How to calculate it | Wrike
- How to Calculate Schedule Variance? Formula and Example
FAQs
What is schedule variance?
Schedule variance (SV) is a project management metric that measures the difference between a project’s planned and actual progress at a given time.
How is schedule variance calculated?
Schedule variance is calculated by subtracting the budgeted cost of work scheduled (BCWS) from the budgeted cost of work performed (BCWP). The formula for SV is:
SV = BCWP – BCWS
What does a positive schedule variance indicate?
A positive SV indicates that the project is ahead of schedule, meaning that the work completed is greater than planned.
What does a negative schedule variance indicate?
A negative SV indicates that the project is behind schedule, and the work completed is less than planned.
Why is schedule variance important?
Schedule variance is important because it allows project managers to:
- Assess whether the project is on track
- Identify deviations from the planned schedule
- Take corrective actions to ensure the project stays on schedule
How can schedule variance be used to improve project management?
Schedule variance can be used to improve project management by:
- Helping project managers identify potential problems early
- Allowing project managers to take corrective actions to keep the project on track
- Providing project stakeholders with a clear understanding of the project’s progress
What are some common causes of schedule variance?
Some common causes of schedule variance include:
- Unrealistic project estimates
- Changes in project scope
- Resource constraints
- Unforeseen events
How can schedule variance be minimized?
Schedule variance can be minimized by:
- Creating realistic project estimates
- Managing project scope effectively
- Allocating resources efficiently
- Having a contingency plan in place for unforeseen events