What do we really need to do when the work schedule goes wrong? In case of the danger of failure to meet the project terms, it is possible to make some strange or unnecessary actions in order to make it on time. But today we will tell you about one secret and very useful formula!
In your today’s post we would like to consider one interesting article that contains a detailed description of such a work planning approach as Schedule Variance, its special formula and its successful use in project management practice.
The essence of Schedule Variance
To put it simply, Schedule Variance (or SV in its short name) is a certain quantity that shows what stage the project has at the present time, whether it has a schedule delay, or the whole work is being executed timely or even with its certain advance. Usually SV is used in the following cases:
- to see the real state of affairs on the development of the project
- to check and recalculate the efforts and resources for the project implementation
- to realize the real and the possible costs of the project development
The SV Formula
There is the beginning of a pure mathematics: to calculate Schedule Variance, it is necessary to know Budgeted Cost of Work Scheduled (BCWS) and to take it off the Budgeted Cost of Work Performed (BCWP). The result equals the Schedule Variance.
- SV = BCWP – BCWS
Or the SV formula can be presented by the following form:
- SV (Schedule Variance) = EV (Earned Value) – PV (Planned Value)
Now let’s talk about the results:
- If SV is positive, your project work is going with its advance
- If SV is zero, your project development work is going correct and you follow your schedule
- If SV is negative, your project work has its delay.