cost variance (cv) in project management
TRANSCRIPT
![Page 1: Cost Variance (CV) in Project Management](https://reader036.vdocuments.net/reader036/viewer/2022062223/587b7df41a28ab9d448b49fb/html5/thumbnails/1.jpg)
Earned Value
Analysis
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Earned Value Analysis
• Cost Variance• CV = EV - AC• Negative is bad• Positive is good
![Page 3: Cost Variance (CV) in Project Management](https://reader036.vdocuments.net/reader036/viewer/2022062223/587b7df41a28ab9d448b49fb/html5/thumbnails/3.jpg)
Creating a Time-Phased Budget
Task Activity Budget (PV) Week 1 Week 2 Week 3 Week 4 Week 5 Week 6
Design prototype board $468 $78 $390
Order Sensors $156 $156
BreadBoard Sensors and connections $546 $234 $312
Outline programming requirements $390 $78 $312
Draft Preliminary Program $1,092 $78 $390 $390 $234
Load program and test $156 $156
Setup "Real" Twitter Account $39 $39
Develop Final Test Criteria $78 $78
Test $780 $78 $390 $312
Put into Case $39 $39
Complete Perm Install $156 $78 $78
Write up Details and Post $234 $234
Week Total $234 $1,326 $1,014 $702 $546 $312
Cumulative $234 $1,560 $2,574 $3,276 $3,822 $4,134
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6$0.00
$1,250.00
$2,500.00
$3,750.00
$5,000.00
Planned Value at this time in the project = $2574
Today
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Actual Costs (AC)
AC = $3,000
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Percent of work complete50%
Earned Value
Project Total PV = $4,134
EV= Total PV for Project or Activity X % Complete
Today = End of Week Three
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Percent of work complete50%
Earned Value
EV= 4,134 X 50% = $2,067
Project Total PV = $4,134
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0 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6$0.00
$1,250.00
$2,500.00
$3,750.00
$5,000.00 PV AC EV
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0 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6$0.00
$1,250.00
$2,500.00
$3,750.00
$5,000.00 PV AC EV
CV=EV-ACCV=$2,067-$3000
CV= -$933
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Indexes to Monitor Progress