“A PMO should also follow a fixed standard which is used to apply for credit for work already performed by the team. The standards used in normal circumstances are as follows:
SV (Schedule Variance) – If the value of SV is ZERO, the project is termed as ON SCHEDULE or ON TIME. If the value was more than ZERO, it is termed as AHEAD OF SCHEDULE, as it is earning a higher value than the original plan. If it is less than ZERO, then it is termed as BEHIND SCHEDULE, or DELAYED
CV (Cost Variance) – If the value of CV is ZERO, the project is termed as ON BUDGET. If the value was more than ZERO, it is termed as UNDER BUDGET, as it is earning a higher value than the original plan. If it is less than ZERO, then it is termed as OVER BUDGET, as it is earning less value.
SPI (Schedule Performance Index) – If the value of SPI=1, then project is ON SCHEDULE. If SPI<1, then project is BEHIND SCHEDULE. If SPI>1, then project is AHEAD OF SCHEDULE. Any project that performs or functions perfectly should have an SPI value closest to ONE.
CPI (Cost Performance Index) – If the value of CPI=1, then project is ON BUDGET. If CPI <1, then project is OVER BUDGET, and costs need to be controlled. If CPI >1, then project is UNDER BUDGET. Any project that performs or functions perfectly should have a CPI value closest to ONE.
The thresholds of these values, at which you will be alerted in case of any change, needs to be set by you at the very onset”. – Jenny Brown, Content Marketing Manager and Product Specialist at GreyCampus, excerpted from the article, “Measuring Project Performance by PMOs” @ Project Accelerator, click here to read the article in its entirety.
Insightful and well said! PMO Advisory offers courses throughout the year designed for project professionals interested in Portfolio (PfMP), Program (PgMP), Project (PMP & CAPM) Risk (PMI-RMP) Management, and Agile (PMI-ACP) certifications.
