Project Management For Dummies
Book image
Explore Book Buy On Amazon

On the PMP certification exam, you'll see five to ten questions on variances and indexes. Here's fundamental information that project managers need to determine cost and schedule variances and indexes.

  • For variance and indexes, always start with EV.

  • When looking for information on schedule, use PV.

  • When looking for information on cost, use AC.

  • For a variance, subtract.

    • SV = EV – PV

    • CV = EV – AC

    • Negative is bad; positive is good.

  • For an index, divide.

    • SPI = EV / PV

    • CPI = EV / AC

    • Less than 1.0 is bad, greater than 1.0 is good.

About This Article

This article is from the book:

About the book authors:

Stanley E. Portny, PMP, is an internationally recognized expert in project management and project leadership. During the past 30 years, he has provided training and consultation to more than 150 public and private organizations. He is a Project Management Institute–certified project management professional. Jonathan Portny is the son of Stan Portny and a certified project management professional with strong technical and management background. He has extensive experience leading interdisciplinary and cross-geographical technical projects, programs, and personnel.

This article can be found in the category: