Project Planning (Essay Sample)

Name
Professor
Title
Date
Project Planning
1 Schedule variance (SV)
Schedule variance is a very useful analytical tool that gives information about how far the project is behind or ahead of the schedule in terms of dollars.
Schedule variance (SV) = Earned Value (EV)-Planned Value (PV)
$600-$560 = $ 40
In this case the schedule variance is positive and therefore the project is ahead of schedule hence moving in the right direction.
2 Cost variance (CV)
CV determines whether the project is financially under or over budget.
Cost Variance helps in measuring the cost performance of a given project.
Cost Value (CV) = Earning Value (EV)-Actual Value (AV)
$600-$650 =-$50
On day 51 cost variance is negative, showing that the project is over budget and therefore a corrective action is needed.
3 Schedule Performance Index (SPI)
This helps in determining time efficiency on project.
The schedule Performance Index determines how efficiently the project is actually improving when compared to what was planned.
Schedule Performance Index (SPI) =Earned Value (EV)/Planned Value (PV)
$600/$560=1.07142857
SPI is more than one hence more work than what was planned has been completed.
4 Cost Performance Index (CPI)
CPI shows the earnings for every dolla...