A project manager is reviewing the project's performance using earned value analysis. The Planned Value (PV) for a specific period is $25,000, and the Earned Value (EV) is $20,000. What is the Schedule Variance (SV) and what does it indicate about the project's progress?
The SV is +$5,000, and the project is under budget.
The SV is +$5,000, and the project is ahead of schedule.
The SV is -$5,000, and the project is over budget.
The SV is -$5,000, and the project is behind schedule.
The correct answer is that the Schedule Variance (SV) is -$5,000, indicating the project is behind schedule. Schedule Variance is calculated with the formula SV = EV - PV. In this scenario, SV = $20,000 - $25,000 = -$5,000. A negative SV means that the value of the work completed (Earned Value) is less than the value of the work that was planned to be completed (Planned Value), signifying that the project is behind its schedule baseline. Cost Variance (CV), not Schedule Variance, is used to determine if a project is over or under budget.
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