The schedule variance (SV) simply represents the difference between a task' s progress as compared to its estimated progress and is represented in terms of cost. Here is its formula:
Indexes are designed to show a ratio between one project budgetary component and another. The most common of these numbers are extremely useful, because they are simple to gauge: either greater than 1 or less than 1. If a ratio ' s value is greater than 1, the task is either ahead of schedule or under budget. A ratio less than 1 indicates that your task is behind schedule or over budget.
Note that ratios can also be expressed as percentages, which may be an easier way to think of the numbers. For example, if one of these indexes calculates to 0.971, you can multiply by 100 to state that index as 97.1%.
When you commit these formulas to memory and understand what they ' re representing, you can use earned value analysis to get a much better handle on where you' re at with a given project. You can answer questions such as "Is there enough money in the budget so that I can finish the project?" or "Do I have enough time left to finish the project on time?" Again, you would use these calculations with very complex projects and probably wouldn 't need them with simpler ones.
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