290 Part IV: Controlling Your Software Project Table (Web hosting mysql)
290 Part IV: Controlling Your Software Project Table 14-3 Variance Formulas Concept Formula Cost Variance (CV) CV = EV AC Schedule Variance (SV) SV = EV PV Variance at Completion (VAC) VAC = BAC EAC Calculating cost variance (CV) How much did you plan to spend? How much did you actually spend? What s the difference? CV just tells you how much your actual costs were compared to how much you planned to spend. How much did you spend compared to how much you planned to spend? You find the answer to this question by looking at the difference between your earned value (EV) and your actual costs (AC). For example, if your EV is $24,000 and your AC is $25,000, here are the numbers: CV = EV AC EV = $24,000 AC = $25,000 EV AC = $1,000 The difference between the EV and the AC is $1,000. In this example, you spent more than you planned to spend, so you end up with a negative number. A negative number indicates that you are not doing as well as you planned; your actual costs are higher than you estimated. A positive number tells you that you are doing better than planned; you are not spending as much as you planned to spend. Because your cost variance is $1,000, your actual costs are $1,000 more than you budgeted. You have a negative cost variance, which is no reason to go out and buy party hats and paint the town purple. Calculating schedule variance (SV) Where are you in your schedule? Where did you actually plan to be in your schedule? What s the difference? SV tells you how much your schedule differs
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