INF 337 Week 3 Problem

Week 3 Problem

INF 337 Integrated Cost & Schedule Control

During a project, Earned Value Analysis is performed and gives the following numbers:

Earned Value (EV): 523,000

Planned Value (PV): 623,000

Actual Cost (AC): 643,000

To determine the Cost Variance, the formula is as follows:

CV = EV – AC

CV = 523,000 – 643,000

CV = -120,000

To determine Schedule Variance, the formula is as follows:

SV = EV – PV

SV = 523,000 – 623,000

SV = -100,000

Determining the cost variance and schedule variance are vital to the success of the project because these numbers provide the project manager with insight as to the financial and timely progress of the overall project.