Beth is the project manager of the BFG Project for her company. In this project Beth has decided to create a contingency response based on the performance of the project schedule. If the project schedule variance is greater than $10,000 the contingency plan will be implemented. What is the formula for the schedule variance?

A.
SV=PV-EV

B.
SV=EV-PV

C.
SV=EV/PV

D.
SV=EV/AC

Explanation:

The schedule variance is found by subtracting the planned value from the earned value.

Schedule variance (SV) is a measure of schedule performance on a project. The variance notifies that the schedule is ahead or behind what was planned for this period in time. The schedule variance is calculated based on the following formula: SV = Earned Value (EV) – Planned Value (PV)

If the resulting schedule is negative, it indicates that the project is behind schedule. A value greater than 0 shows that the project is ahead of the planned schedule. A value of 0 indicates that the project is right on target.

Answer option C is incorrect. EV/PV is the formula for the schedule performance index.

Answer option D is incorrect. EV/AC is the formula for the cost performance index.

Answer option A is incorrect. This is not a valid earned value management formula.

Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth Edition"