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.

What do they mean by asking for these metrics?

How will you get this information?

客户要求提供有关迄今为止所产生的成本，完成工作以及项目在成本和时间表方面的表现的信息。

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.

Earned Value is the value of the work completed to date. Planned Value is the money you should have spent as per the schedule. Actual Cost is the cost spent on the project to date.

这些基本元素可帮助您找到时间表差异和成本差异。时间表差异有助于了解您是否在计划中或计划中。成本差异有助于确定您是否不超过预算。

Variance analysis is the key to the success of any project, which is finished on time and within the approved budget. Variance analysis helps monitor your project performance, allowing you to takecorrective action一项要求，它可以让您知道您是否朝着正确的方向前进。

Schedule Variance (SV)

It is imperative for you to keep your project on schedule and Schedule Variance helps you complete it on time. It enables you to avoid unnecessary cost overruns due to a slip in schedule. Costs increase as you go over the stipulated time.

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.

时间表差异是一种重要的分析工具，它可以让您知道您是按计划提前还是落后于计划。

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

From the above formula, we can conclude that:

• You are ahead of schedule if the Schedule Variance is positive.
• 你是落后于计划进度偏差如果我s negative.
• 如果时间表差异为零，则您将按计划进行。

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

时间表差异的示例（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.

Find the project’s Schedule Variance (SV) and determine if you are ahead of schedule or behind schedule.

Given in the question:

Actual Cost (AC) = 60,000 USD

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

= 50,000 USD

请注意，在问题中，计划的价值不是具体给出的，但问题说一半的时间已经过去了。在这种情况下，您可以假设预算均匀分配，因此计划的价值将为50％。

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

= 40,000美元

现在，

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.

一切都与金钱有关。客户对支出非常谨慎；因为与成本基线的任何偏差都会影响其利润。在最坏的情况下，他们可能必须在项目中投入更多的钱才能完成。如果合同是固定价格，这是有害的。

成本差异与该项目的成本基线有关。它为您提供有关您是否超过预算的信息，以美元计算。成本差异是对项目成本绩效的衡量标准。

The Formula for Cost Variance (CV)

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

成本差异=赚取价值 - 实际成本

CV = EV - AC

我们可以从上述公式中得出以下内容：

• You are under budget if the Cost Variance is positive.
• 如果成本差异为负，则您的预算超出了预算。
• You are on the budget if the Cost Variance is zero.

Example of Cost Variance (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.

Find the project’s Cost Variance (CV) and determine if you are under budget or over budget.

Given in the question:

Actual Cost (AC) = 60,000USD

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

= 40,000美元

现在，

成本差异=赚取价值 - 实际成本

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

Cost Variance and Schedule Variance Comparision Table

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.

您如何在项目中使用计划差异和成本差异？请在评论部分分享您的经验。

This blog post is the third in eleven series on Earned Value Management and project forecasting. Please read through my previous two posts before reading this post if you’re coming here from a search engine or a referral.

The following are the links for other blog posts:

• Earned Value Management
• Elements of Earned Value Management
• Budget at Completion in Project Management
• Cost Variance in Project Management
• Schedule Variance in Project Management
• Cost Performance Index in Project Management
• Schedule Performance Index in Project Management
• Schedule Variance and Cost Variance (You are here)
• Schedule Performance Index and Cost Performance Index
• Estimate at Completion
• Estimate to Complete
• To Complete Performance Index