Schedule Variance vs Schedule Performance Index - PMP Exam

Schedule variance (SV) and schedule performance index (SPI) are two earned value calculations that provide a measurement of project progress against the project ... Skiptocontent FacebookTwitterLinkedinYoutube (888)871-PMLS Ifyouenjoyedreadingthispost,checkoutallofourpostonPMPConceptsLearningSeries. DesignedtohelpthosethatarepreparingtotakethePMPorCAPMCertificationExam,eachpostwithinthisseriespresentsacomparisonofcommonconceptsthatappearonthePMPandCAPMexams.   ScheduleVariancevsSchedulePerformanceIndex Schedulevariance(SV)andscheduleperformanceindex(SPI)aretwoearnedvaluecalculationsthatprovideameasurementofprojectprogressagainsttheprojectschedulebaseline. Earnedvaluemeasurementsmaybehelpfulonsomeprojectsforcommunicatingstatusoridentifyingpotentialissues.However,earnedvalueisananalysistechniquethatrespondstolaggingindicators–meaningthatitisusingthepastperformancetodictateorpredictfutureperformance.Thatisnotalwaysaccurateandassuch,thePMmustusetheirjudgmentandknowledgeininterpretingtheresultsandcommunicatingtostakeholders. ScheduleVariance(SV) Schedulevariance(SV)iscalculatedasthedifferencebetweenearnedvalue(EV)andplannedvalue(PV).Howmuchvaluehaveweearnedintheprojectbasedonourbudgetatcompletion(BAC)andwhatpercentageofworkhasbeencompletedandhowmuchdidweplantohavespentbythispointintheproject? SV=EV–PV [hint:EValwayscomesfirstintheearnedvaluecalculationsofCV,CPI,SV,andSPI] Ifyouhaveanegativebalanceinyourbankaccount,isthatgoodorbad?It’sbad,right?Rememberthatholdstruewithschedulevarianceaswell.Ifwehaveanegativeschedulevarianceitmeansthatwearebehindschedule. ApositiveSVindicatesthatwearetrendingaheadofschedule.Avarianceofzeroindicatestheprojectisexactlyonschedule(doesthatreallyhappen?) SchedulePerformanceIndex(SPI) Scheduleperformanceindex(SPI)isaratiooftheearnedvalue(EV)totheplannedvalue(PV). SPI=EV÷PV IftheSPIislessthanone,itindicatesthattheprojectispotentiallybehindscheduleto-datewhereasanSPIgreaterthanone,indicatestheprojectisrunningaheadofschedule.AnSPIofoneindicatestheprojectisexactlyonschedule. IfyousubtracttheSPIfrom1,youcanseebywhatpercentageyouareaheadorbehindschedule. Example Youaremanagingthebathroomrenovationproject.Theprojecthasabudgetof$1500andis40%complete.Theprojectisa3-monthprojectandyouplannedtospend$500permonth(have$500worthofworkcompletedeachmonth).Youareevaluatingstatusattheendofthefirstmonth. BAC=$1,500 EV=$600 PV=$500 SV=EV–PV=600-500=100