Definition:
Schedule Variance (SV) is a performance metric that helps determine whether a project is ahead of or behind schedule. It measures the difference between the planned progress and actual progress at any given time. The formula for SV is:
SV = Earned Value (EV) – Planned Value (PV)
Where:
- EV (Earned Value) represents the actual work completed in terms of cost.
- PV (Planned Value) represents the work that was scheduled to be completed by a specific time.
If SV is positive, the project is ahead of schedule. If SV is negative, the project is behind schedule. If SV is zero, the project is exactly on track.
For example, if a project planned to complete 50% of work by month three (PV = $500,000) but has only completed 40% of the work (EV = $400,000), then:
SV = $400,000 – $500,000 = -$100,000 → The project is behind schedule by $100,000 worth of work.
Schedule Variance is an important indicator in project monitoring and control, allowing project managers to take corrective actions to ensure timely project completion.
