Schedule variance

Definition

Schedule variance is a metric used in project management to assess the difference between the planned progress of a project and its actual progress at a specific point in time. It helps project managers determine whether the project is ahead, behind, or on schedule by comparing the earned value (the value of work actually performed) to the planned value (the value of work that was planned to be completed). Understanding schedule variance is crucial for effective project planning, scheduling, and control.

5 Must Know Facts For Your Next Test

1. Schedule variance is calculated using the formula: SV = EV - PV, where EV is earned value and PV is planned value.
2. A positive schedule variance indicates that a project is ahead of schedule, while a negative variance means it is behind schedule.
3. Monitoring schedule variance helps project managers make informed decisions about resource allocation and timeline adjustments.
4. Regularly assessing schedule variance can provide insights into potential risks and issues that may arise during project execution.
5. Schedule variance is often used in conjunction with other performance metrics, such as cost variance, to gain a comprehensive view of project health.

Review Questions

• How does schedule variance help project managers evaluate project performance?
  • Schedule variance provides project managers with a clear view of how actual progress compares to planned progress. By calculating the difference between earned value and planned value, managers can quickly identify if a project is ahead or behind schedule. This information is critical for making timely adjustments and ensuring that project objectives are met without unnecessary delays.
• What are the implications of a negative schedule variance on project control measures?
  • A negative schedule variance indicates that a project is falling behind its planned timeline. This situation may require immediate action, such as reallocating resources or adjusting schedules to bring the project back on track. Understanding the reasons behind the negative variance can also inform future planning and help mitigate similar issues in upcoming phases of the project.
• Evaluate how integrating schedule variance with cost performance metrics can enhance overall project management strategies.
  • Integrating schedule variance with cost performance metrics like cost variance creates a holistic view of a project's health. This combined analysis allows managers to identify not only if they are behind schedule but also if they are over budget, enabling more strategic decision-making. By recognizing patterns in both schedule and cost variances, managers can implement proactive measures to enhance efficiency and reduce risks in future projects.

Related terms

Earned Value Management: A project management technique that integrates scope, schedule, and cost to assess project performance and progress.

Planned Value: The budgeted amount for the work that is scheduled to be performed by a specific time in a project.

Actual Cost: The total costs incurred for the actual work completed on a project at a specific point in time.