A project manager finds that the Planned Value (PV) is $70,000 and the Earned Value (EV) is $60,000. Based on this data, how is the project performing schedule-wise, and by how much?
To evaluate schedule performance, we calculate the Schedule Variance (SV) by subtracting the Planned Value (PV) from the Earned Value (EV): SV = EV - PV. In this scenario, SV = $60,000 - $70,000 = -$10,000. A negative Schedule Variance indicates that the project is behind schedule because it has earned less value than planned. Therefore, the project is behind schedule by $10,000 worth of work. The other options are incorrect because they either miscalculate the variance or misinterpret the project's schedule status.
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What is Planned Value (PV) in project management?
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What does Schedule Variance (SV) indicate?
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Predictive, Plan-Based Methodologies
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