- Schedule Variance (SV) = Earned Value – Planned
Value. The difference between what was planned to be
completed and what has actually been completed as of the
Variance (CV) = Earned Value – Actual Costs. The
difference between the work that has been accomplished (in
dollars) and how much was spent to accomplish it.
In the graph below, the
project shown has a negative Schedule Variance, because it has
“earned” less value than was planned, as of the current date.
However, it has a positive Cost Variance, because the
Earned Value is greater than the Actual Costs accrued:
- Schedule Performance Index (SPI) = Earned Value /
Planned Value. Schedule variance related as a ratio instead
of a dollar amount. A ratio less than 1.0 indicates that
work is being completed slower than planned.
Performance Index (CPI) = Earned Value / Actual
Costs. Cost variance related as a ratio instead of a dollar
amount. A ratio less than 1.0 indicates that the value of
the work that has been accomplished is less than the amount
of money spent.
In the schedule below, Project A has a CPI greater than
1.00. This shows us that the project has been earning value
faster than it has been accruing costs:
However, Project A also has a SPI value that is less than
1.00. Although Actual Costs are low, Task 1 is behind
schedule, so the project has not earned as much value as was
Successfully Presenting Earned Value is a free
e-book which will help you learn to implement and present Earned
Value schedules. It offers both an explanation of Earned Value
Management principles, and step-by-step instructions. This
e-book is offered at no charge. After reviewing it, you may be
interested in downloading our Milestones Professional software.
Milestones Professional was used to produce the
presentation-ready Earned Value reports shown in the e-book and
can be used to make schedules in many formats, including Gantt
charts, Milestone charts, Summary charts, Resource Charts and
All example schedules on this website
were made with Milestones Professional