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Earned Value Management Variance formulae consist of: 1. After a month, you have completed 10 percent of the project at a total expense of $100,000. You need to determine whether the project is on-time and on-budget after 2 months. The project is expected to be completed in 8 months at a cost of $10,000 per month. Cost Variance (CV): This is the The project is to be completed in 9 months. Copyright © 2020 Bright Hub PM. Now, let’s see the variance in the project by computing the Cost Variance and Schedule Variance. In the article entitled Compute the earned value management cost and schedule variances:Suppose you are managing a software development project. The planned completion should have been 15 percent. All Rights Reserved. Earned Value Management Variance Formula leverage the Earned Value Management Fundamental Formula (BAC, AC, PV, and EV) to determine the variances pertaining to project cost and schedule. [caption id="attachment_132927” align="aligncenter” width="640”]Earned value cost and schedule variances are part of the Suppose you have a budgeted cost of a project at $900,000. After 2 months, you realize that the project is 30 percent completed at a cost of $40,000.

Step 1: Calculate the Planned Value and Earned Value From the scenario:Step 2: Compute the earned value management cost and schedule variances:Earned Value Analysis for Project Performance in Project Cost ManagementSteps Required to Perform a Chi-Square Test in Six Sigma Tools: A Downloadable Example Earned Value Management Variance Formulae leverage the Earned Value Management Fundamental Formulae (BAC, AC, PV, and EV) to determine the variances pertaining to project cost and schedule. Let’s see how healthy the project is by calculating the cost variance and schedule variance.

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