Microsoft Project Tutorial

MS Project software tutorial with theory and examples

Earned value and schedule variance

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In this tutorial you will learn how to obtain earned value performance information and how to examine schedule variance in real time.

Obtain earned value performance

MS Project Tutorial - More TablesAfter entering actual progress we want to look for earned value indicators on how well we are doing. We are going to change the view but instead of choosing a table from the menu we need to select “more tables” and select “Earned value” from our list. Now we get a sheet with our earned value information. We can compare the earned value with the planned value which measures following costs:

  • Cost variance (CV)—the difference between a task’s estimated cost and its actual cost (the formula CV = Earned Value – Actual Cost).
  • Schedule variance (SV)—the difference between the current progress and the scheduled progress of a task, in terms of cost (the formula SV = Planned Value – Earned Value).
  • Estimate at completion (EAC) is the estimated total cost of a task or project, based on performance as of the status date.
  • Budget at completion (BAC) shows an estimate of the total project cost.
  • Variance at completion (VAC) shows the difference between the budget at completion (BAC) and the estimate at completion (EAC).

MS Project Tutorial -Value PerformanceWhen we look at our project by January 18th we are suppose to spend roughly 20.500€, we have earned for actual work a little less 19.800€ but we spend over 27.800€ so we have a negative amount for both scheduled as cost variance. There is more then 700€ worth of work that is suppose to be done but that hasn’t been done and on the existing work we achieved we are 8000€ over budget.

Examine schedule variance in real time

According to our schedule variance we are  behind in time calculated in money for 700€. When we want to look at the schedule variance in time we need to go to view > variance where we get a sheet with a view at our baseline start, actual start, start variation which shows us how much time we started ahead/late on our task and the finish variation which shows by how much time we finished early or late. When we look at our project we see the 4 workdays we started ahead of schedule but it took us a day longer then expected to finish.

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Ms Project Tutorial created by Frederik van Everbroeck.