Schedule Variance (SV) & Cost Variance (CV) in Project Cost Management

Schedule Variance (SV) and Cost Variance (CV) are two essential parameters in Earned Value Management. They help you analyze the project’s progress, i.e., how you are performing in terms of schedule and cost.

Assume you are managing a construction project. The client asks you to update them with the current status and progress of the project.

索要这些指标是什么意思？

How will you get this information?

The client is asking for information on the cost incurred to date, work completed, and how the project is performing in terms of cost and schedule.

You will get this information with the help of Earned Value Management. Earned Value Management has three basic elements: Earned Value, Planned Value, and Actual Cost.

赚取的价值是迄今为止完成的工作的价值。计划的价值是您应该按时间表支出的钱。实际成本是迄今为止在项目上花费的费用。

These basic elements help you find Schedule Variance and Cost Variance. Schedule Variance helps to understand if you are behind or ahead of schedule. Cost Variance helps determine if you are under or over budget.

差异分析是任何项目成功的关键，该项目按时完成并在批准的预算之内完成。差异分析有助于监视您的项目绩效，使您可以接受corrective actionas soon as required, and it lets you know if you are going in the correct direction or not.

Schedule Variance (SV)

您必须按计划和计划差异将项目保持在准时完成。它使您能够避免由于时间表滑倒而避免不必要的成本超支。当您超过规定的时间时，成本增加。

For example, you have rented some equipment for a specific duration of time and you may end up paying more if you need this equipment for longer. You may need to rent this equipment from other suppliers on an urgent, short-term contract at a higher price.

Schedule Variance is a vital analytical tool, it lets you know if you are ahead of schedule or behind schedule in dollars.

The Formula for Schedule Variance (SV)

You can calculate Schedule Variance by subtracting Planned Value from Earned Value.

Schedule Variance = Earned Value – Planned Value

SV = EV - PV

从上面的公式，我们可以得出结论：

• You are ahead of schedule if the Schedule Variance is positive.
• You are behind schedule if the Schedule Variance is negative.
• You are on schedule if the Schedule Variance is zero.

When the project is complete, the Schedule Variance becomes zero because all Planned Value has been earned.

Example of Schedule Variance (SV)

You have a project to be completed in 12 months and the budget of the project is 100,000 USD. 6 months have passed and 60,000 USD has been spent, but on a closer review, you find that only 40% of the work has been completed.

查找项目的时间表差异（SV），并确定您是否提前或落后于计划。

在问题中给出：

Actual Cost (AC) = 60,000 USD

Planned Value (PV) = 50% of 100,000

= 50,000美元

Please note that in the question, the Planned Value is not specifically given but the question says that half of the time has passed. In such a situation, you can assume that the budget was evenly distributed, so the planned value will be 50%.

Earned Value (EV) = 40% of 100,000

= 40,000 USD

Now,

Schedule Variance = Earned Value – Planned Value

= 40,000 – 50,000

= -10,000 USD

The project’s Schedule Variance is -10,000 USD. You are behind schedule since it is negative.

Cost Variance (CV)

Cost Variance is as important as Schedule Variance. You must complete your project within the approved budget. Exceeding the planned budget is bad for you and your stakeholders.

Everything is about money. Clients are very cautious about spending; because any deviation from the cost baseline can affect their profit. In the worst case, they may have to put more money into the project to complete it. This is detrimental if the contract is fixed price.

Cost Variance deals with the cost baseline of the project. It provides you with information on whether you are over or under budget, in dollar terms. Cost Variance is a measure of the cost performance of a project.

The Formula for Cost Variance (CV)

Cost Variance can be calculated by subtracting the actual cost from the Earned Value.

Cost Variance = Earned Value – Actual Cost

CV = EV – AC

We can conclude the following from the above formula:

• 如果成本差异为正面，则您将处于预算状态。
• You are over budget if the Cost Variance is negative.
• You are on the budget if the Cost Variance is zero.

成本差异示例（CV）

You have a project to be completed in 12 months, and the budget of the project is 100,000 USD. 6 months have passed, and 60,000 USD has been spent, but on closer review, you find that only 40% of the work has been completed so far.

查找项目的成本差异（CV），并确定您是预算范围还是预算超出预算。

在问题中给出：

实际成本（AC）= 60,000USD

Earned Value (EV) = 40% of 100,000 USD

= 40,000 USD

Now,

Cost Variance = Earned Value – Actual Cost

CV = EV – AC

= 40,000 - 60,000

= –20,000 USD

Hence, the project’s Cost Variance is –20,000 USD, and you are over budget since it is negative

成本差异和时间表差异比较表

Cost Variance and Schedule Variance Comparision Chart

Summary

Schedule Variance and Cost Variance are great tools for analyzing project health. As a project manager, you should monitor these variances for any deviations. If both variances are positive, this means that your project is progressing well. However, something is wrong if either variance is negative and you have to take corrective action to bring the project back on track.

How are you using Schedule Variance and Cost Variance in your project? Please share your experience in the comments section.

这篇博客文章是关于赚取价值管理和项目预测的11个系列中的第三篇。如果您是从搜索引擎或转介来到这里，请在阅读本文之前阅读之前的两篇文章。

The following are the links for other blog posts:

• 赚取价值管理
• 赚取价值管理的要素
• Budget at Completion in Project Management
• Cost Variance in Project Management
• 安排项目管理方面的差异
• Cost Performance Index in Project Management
• Schedule Performance Index in Project Management
• 计划差异和成本差异（您在这里）
• 安排性能指数和成本绩效指数
• 完成时的估计
• 估计要完成
• 完成绩效指数