Network Diagram Provides Cost Variance

The cost variance cv and schedule variance sv indicate the deviation from the project plan and budget in absolute numbers usually currency units or time effort units such as man days.

Network diagram provides cost variance. E d a with a metric of 45. Network diagrams are the preferred technique for showing activity sequencing. Each activity in the project is represented by a circle node or rectangle. Router e chooses the path e c a with a metric of 20 because 20 is better than 30 and 45.

As you can deduce from the formula cost variance will be negative for projects that are over budget. In the network diagram there are three ways to get to network x. Cost variance is computed by calculating the difference between the earned value and the actual cost i e. The formula for cost variance cv cost variance can be calculated by subtracting the actual cost from the earned value.

E c a with a metric of 20. Arrows are used to indicate sequencing requirements. It provides you with information on whether you are over or under budget in dollar terms. If cost variance is a positive number it means that performing the work costs more than planned.

Cost variance deals with the cost baseline of the project. Eigrp provides a mechanism to load balance over unequal cost paths throungh variance command. Cost variance cv is an indicator of the difference between earned value and actual costs in a project. This is the completed work cost when compared to the planned cost.

It is a measure of the variance analysis technique which is a part of the earned value management methodology evm. Activity a m b t variance a 2 3 4 3 1 9 b 1 2 3 2 1 9 c 4 5 12 6 16 9 d 1 3 5 3 4 9 e 1 2 3 2 1 9 problem 3. The cost performance index and schedule performance index set these values in relation to the project plan and indicate the relative impact. Notations for drawing network diagrams a network diagram is a graphical representation of the entire project.

Source some argue that is an element of the earned value analysis eva as well. E b a with a metric of 30. Given the following time chart and network diagram find the critical path. Cost variance is a measure of the cost performance of a project.

This section provides an example. Network models represent activities and milestones by arcs and nodes. E b a with a metric of 30 e c a with a metric of 20 e d a with a metric of 45 router e chooses the path e c a with a metric of 20 because 20 is better than 30 and 45. What is cost variance.

What is the variance in completion time for the critical path found in problem 2. In the network diagram there are three ways to get to network x. Variance is a number 1 to 128 multiplied by the local best metric then includes the routes with the lesser or equal metric. The default variance value is 1 which means equal cost load balancing.