Using The Cv And Sv Calculations Can Be Misleading

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Analysis When analyzing a project, solely using the CV and SV calculations can be misleading. CV is the measurement of the efficiency of the completed work packages that are measured in dollars or hours (Kerzner, 2013). SV calculates the physical adherence of the schedule as the work packages are completed, also related as dollars or hours. Negative values for CV indicate that the work is being completed above the budget. Consequently, negative values for SV indicate that the work is being done at a slower rate than planned. As illustrated in the two tables in Appendix A, the CV and SV calculations are negative. The comments that were made by the vice president about the current variances of the project were correct by solely using the values within the tables in Appendix A. Even though the vice president’s comments about the CV and SV were accurate, these values do not accurately portray the current status of the project. To better examine the financial data for the project, the CPI and SPI values must be completed. Table 1 presents the CPI and SPI values for each work package for the end of month two and three. The targeted values for CPI and SPI should equal one (Kerzner, 2013). Since all the values in Table 1 are under one, both the cost and the schedule performance are favorable. Table 2 expands the variance analysis to include the EAC, VAC, ETC and the new project length for the project. The project was scheduled to be completed within eighteen months at a cost of

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