How do you perform S-Curve analysis for project financial performance

Question

Has anyone done S-Curve analysis to track financial performance in a project? I’d love to hear how you set it up and what insights you gained.

Answer 1

The S-curve analysis measures cumulative cost, effort, or advancement over time. It is commonly used to assess performance in high-cost, resource-intensive projects.

• Step 1: Collect baseline data

  • Plot the planned value (PV) cumulatively over time (usually weekly or monthly)

  • Use the project's budget, work breakdown structure, and projected timelines

• Step 2: Collect actual data

  • Track the actual cost (AC) based on real expenses and time booked

  • Collect Earned Value (EV) using percentage completion of work

• Step 3: Plot the S-curve

  • PV, EV, and AC are placed on the same graph to produce the S-curve

  • The shape often begins slowly, accelerates in the center, and then levels out towards completion

• Step 4: Analyze variances

  • If EV < PV → scheduling delay

  • If AC is more expensive than EV, the cost will increase

  • Key indicators are schedule variance (SV = EV - PV) and cost variance (CV = EV - AC)

• Step 5: Use for forecasting

  • Extend curves to forecast the Estimate at Completion (EAC) and budget/schedule health

S-curve analysis offers visual cues and metrics for tracking and forecasting project performance.