cost management -- schedule variance -- percentage

Submitted by vijayavadrevu on Sat, 03/23/2013 - 12:18

 Using the table below, a comparison of the schedule variance of august as compared to July shows that the magnitude ($ value) of the variance has --------------- and the percentage change has  ---------------



Month

PV

EV

AC

June

$34,000

$34,000

$33,000

July

$18,000

$16,000

$20,000

August

$58,000

$60,000

$66,000

Ans is

 Improved, Improved

SV = EV-PV

SV in July = 16000-18000 = -2000

SV in August = 60000-58000 = +2000

SV has improved. How to conclude about % change??

 

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sandeepdel

Sat, 03/23/2013 - 12:50

 Pls use (ev-pv)/pv * 100 i.e variance from planned value.  In this question thinks are easy to compare as one sv is negative so in August all got improved. But for % change pls use the formula as it might be needed for another questions where finding will be not so easy. 

vijayavadrevu

Sat, 03/23/2013 - 13:28

 Thank You !!!!

sspawar

Sun, 03/24/2013 - 01:24

 with this formula of %age

in case of july, it is (-)0.11%

in case of augst , it is (+) 0.03%, hence% improved.

here in both questions concept is that, EV-PV should be better (more) than past month.

vijayavadrevu

Tue, 03/26/2013 - 16:51

Thank You Sir

Renji2013

Fri, 03/29/2013 - 08:15

 


To do this mathematically u  need 2 values . the  earned value and planned value


% change is =  [new value - old value ] / [ old value ].x 100. PV value should be taken for division  because this is what you are comparing against. This can be used for any other calc.


Considering the changes as below ..simplified... 


july    EV =  2  PV =  4 ,


%change = 2 - 4/4  x 100  = - 100%


august  EV = 4 PV = 2 ,


%change =  4 -2 / 2 = +100%


Hence it is IMPROVED.


cheers


Renji

vijayavadrevu

Fri, 03/29/2013 - 09:11

 Thank You Renji