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.