How do you calculate schedule variance?
How do you calculate schedule variance?
Schedule Variance can be calculated by subtracting the Budgeted Cost of Work Scheduled (BCWS) from the Budgeted Cost of Work Performed (BCWP). The BCWS measures the budget for the entire project and the BCWP measures the cost of actual work done. The difference is the schedule variance.
Can earned value be negative?
Earned value and negative float is a condition in the schedule that indicates the project will be unable to meet one or more of its objectives. It should not be ignored, or worse, marginalized with slap-dash tricks to get rid of it such as deleting relationships or reducing durations to zero.
How do you calculate negative float?
Total Float is amount of time that an activity can be delayed from its early start date without delaying the project finish date. (Negative TF of 48 days in your case will indicate your project is 48 days behind schedule). The calculation for TF =LF-EF which produces Finish Float; or LS-ES which produces Start Float.
Why is it necessary to calculate the earned value of work performed?
It is important to calculate the earned value of work performed so that if the work performed is not keeping up with the actual cost corrective action can be taken. If CV is negative, it means the value of the work performed is less than the amount actually expended.
How do you interpret Tcpi?
The TCPI to bring the project in on the BAC is the ratio of the value of the remaining project work, per PMI’s definition [BAC minus earned value (EV)], all divided by the amount of the remaining funds [BAC minus actual cost (AC)]. This formula works out to be: TCPI = (BAC – EV) ÷ (BAC – AC).