Project Management Tools and Techniques

282 Project management tools and techniques

shown below can be used for such analysis and can help reveal additional

insights into project performance.

CVs can be broken down into two components to compute rate and

use variances—also known as efciency (Shulte 2005). The bid and rate

variance formulas are as follows:

Bid rate = EV Cumulative Hours/EV Cumulative Dollars

Actual rate = AC Cumulative Hours/AC Cumulative Dollars

Rate variance = (Bid rate – Actual rate) × AC (cumulative hours)

Use variance = (EV hours – AC hours) × Bid rate

CV = Rate Variance + Use Variance

Table 15.5 shows example hours and cost data for a WBS element at a

specic point ...