You Dont Have to Do Both CV and SV

Let's make it even simpler. Let's say that you are not tracking actual costs or actual hours. Obviously, you cannot compute the cost variance. But that doesn't stop you from tracking the progress and computing the schedule variance. All that you need is a plan, as represented by the BAC and PV, and the periodic tracking of the percentage complete, expressed as the EV. With these data, you can determine the SV and the SPI.

Table 3.6-1. A Glossary of EVA Terms

Term

Explanation

BAC (Budget at Completion)

The budget

BCWS (Budgeted Cost of

Planned accomplishment

Work Scheduled) (a.k.a. PV)

(at any point in time)

BCWP (Budgeted Cost of

Earned value or accomplishment

Work Performed) (a.k.a. EV)

value (at any point of time)

ACWP (Actual Cost of

Actual cost to date

Work Performed) (a.k.a. AC)

SV (Schedule Variance)

Difference between planned

accomplishment and EV

CV (Cost Variance)

Difference between actual cost

and EV

SPI (Schedule Performance

Earned value divided by planned

Index)

value

CPI (Cost Performance Index)

Earned value divided by actual

cost

A similar option applies to cost. You don't even have to have a baseline plan to process cost variances. What you must have is (1) a budget (or weight factor), (2) a measurement of percent complete (which is used to determine the EV [EV = %C x budget]), and (3) the actual cost (AC). You just need to compare what you spent to the value of what you accomplished.

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Project Management Made Easy

Project Management Made Easy

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