Cost variance (CV), also known as budget variance, is the difference between the actual cost and the budgeted cost, or what you expected to spend versus what you actually spent. This formula helps project managers figure out if they are over or under budget. A positive CV shows that the project is under budget, and…
Schedule variance (SV) is calculated as the difference between earned value (EV) and planned value (PV). How much value have we earned in the project based on our budget at completion (BAC) and what percentage of work has been completed and how much did we plan to have spent by this point in the project?…
Utilization rates show how much of your team’s time is being spent on billable tasks, as well as how productive each team member is. Ultimately, these figures enable team leaders to measure billing efficiency and determine if you are pricing your projects correctly to cover your costs and make a profit. That sweet spot, according…
The schedule performance index (SPI) is a measure of how close the project is to being completed compared to the schedule. As a ratio it is calculated by dividing the budgeted cost of work performed, or earned value(EV), by the planned value(PV). FormulaSPI = EV / PV For example:A project has a budgeted cost of…