Which two variances are typically assessed in Earned Value Management?

Which two variances are typically assessed in Earned Value Management?

• A. Cost variance and Quality variance
• B. Schedule variance and Cost variance
• C. Schedule variance and Quality variance
• D. Performance variance and Quality variance

Answer: (B)

In Earned Value Management, the focus is on measuring performance against the plan in terms of schedule and cost. The two variances used for this are Schedule Variance and Cost Variance. Schedule Variance (SV) is EV minus PV, showing whether the earned value of work is ahead of or behind the planned value. A positive SV means you’re ahead of schedule on earned value; a negative SV means you’re behind. Cost Variance (CV) is EV minus AC, indicating whether the value of work completed costs more or less than what was actually spent. A positive CV means you’re under budget (cost efficiency), while a negative CV signals a cost overrun. Quality variance isn’t part of EVM’s standard variances, since EVM concentrates on cost and schedule performance (with CPI and SPI as related efficiency measures). So the two variances typically assessed are schedule variance and cost variance.

In Earned Value Management, the focus is on measuring performance against the plan in terms of schedule and cost. The two variances used for this are Schedule Variance and Cost Variance. Schedule Variance (SV) is EV minus PV, showing whether the earned value of work is ahead of or behind the planned value. A positive SV means you’re ahead of schedule on earned value; a negative SV means you’re behind. Cost Variance (CV) is EV minus AC, indicating whether the value of work completed costs more or less than what was actually spent. A positive CV means you’re under budget (cost efficiency), while a negative CV signals a cost overrun.

Quality variance isn’t part of EVM’s standard variances, since EVM concentrates on cost and schedule performance (with CPI and SPI as related efficiency measures). So the two variances typically assessed are schedule variance and cost variance.