Question

Consider the following data:

	Initiation	Planning	Analysis	Design	Implementation	Testing	Closure
# Months estimated to complete	2	6	8	6	18	6	2
Budgeted Cost $	2000	6000	12000	12000	80000	36000	4000
% work completed	100%	100%	80%	0%	0%	0%	0%
Actual Cost $	4000	8000	16000	20000

We are tracking the amount of work completed after 22 months. For the data given, find the Schedule Variance at the end of 22 months.

	a.	-14400 $
	b.	30400 $
	c.	- 30400 $
	d.	14400 $

Answer 1

Answer

a-14400 $

Explanation

Schedule variance measures performance of the works in relation to budgeted costs

SV = BCWP ? BCWS

Planned Value or BCWS is the total cost of the work scheduled as of reporting date

Earned value or BCWP is the total cost of the work completed as of reporting date.

Step 1

We calculate the amount of work that should have been completed according to budget by given date and express it in dollar value.

Budgeted cost of work scheduled, P

= 2000+6000+12000+12000

=$ 32000

Step 2

Then we calculate the value of completed work based on budget (not based on actual data)

Budgeted cost of work performed, EV

=summation (percent of work completed* budgeted cost for the work completed)

=1.0* 2000+1.0*6000+0.8*12000+0.0*12000

=$17600

Step 3

As per budget, work with value of $ 32000 should have been completed. The actual worth of work completed according to the budget is only $17600

Schedule Variance = Earned Value – Planned Value

=$17600-$ 32000

=-14400

SV is negative. Project is behind the schedule