Schedule variance

Definition

Schedule variance is a performance measurement in project management that indicates the difference between the planned progress of a project and its actual progress at a specific point in time. It is calculated as the difference between the earned value (the value of work actually performed) and the planned value (the value of work that was scheduled to be performed). Understanding schedule variance helps project managers assess whether a project is ahead of, behind, or on schedule.

5 Must Know Facts For Your Next Test

1. Schedule variance is expressed in monetary terms and helps project managers understand how much ahead or behind schedule a project is.
2. A positive schedule variance indicates that the project is ahead of schedule, while a negative schedule variance indicates it is behind schedule.
3. To calculate schedule variance, the formula used is SV = EV - PV, where SV is schedule variance, EV is earned value, and PV is planned value.
4. Schedule variance is part of the broader concept of earned value management (EVM), which integrates scope, cost, and schedule to assess project performance.
5. Regularly tracking schedule variance allows teams to make necessary adjustments and improve future project planning and execution.

Review Questions

• How can understanding schedule variance aid in improving project management practices?
  • Understanding schedule variance provides critical insights into how well a project adheres to its planned timeline. By analyzing the variance, project managers can identify potential delays early on and take corrective actions to keep the project on track. This proactive approach not only enhances decision-making but also helps in allocating resources more effectively to avoid further deviations from the schedule.
• Discuss the relationship between schedule variance and earned value management within a project's lifecycle.
  • Schedule variance is a key component of earned value management (EVM), which evaluates project performance by comparing the planned progress to the actual progress. EVM incorporates both schedule and cost metrics, allowing managers to track how changes in one aspect affect overall performance. By monitoring schedule variance as part of EVM, project managers can gain a comprehensive view of their project's health and make informed adjustments throughout its lifecycle.
• Evaluate how effective management of schedule variance can impact overall project success and stakeholder satisfaction.
  • Effective management of schedule variance directly influences overall project success by ensuring that projects are completed on time and within scope. When teams regularly monitor and address any variances, it leads to better resource allocation, minimizes delays, and enhances communication with stakeholders. Satisfied stakeholders are more likely to support future initiatives, making it crucial for project managers to prioritize timely delivery as reflected in managing schedule variance effectively.

Related terms

earned value:

Earned value is a project management metric that represents the value of work actually completed at a given point in time.

planned value: Planned value refers to the estimated value of the work that was scheduled to be completed by a specific time in a project.

cost variance: Cost variance is the difference between earned value and actual cost, indicating whether a project is under or over budget.