Variance analysis is an after-the-fact look at what caused a difference between the baseline and the actual performance. The process for performing variance analysis may vary depending on the application area, the standard used and the industry. Common steps are:
• Verify the quality of the information collected to ensure that it is complete, consistent with past data and credible when comparing with other project or status information.
• Determine variances, comparing the actual information with the project baseline and noting all differences both favorable and unfavorable to the project outcome. Earned value technique uses specific equations to quantify variances. The technique is explained in detail in Section 188.8.131.52.
• Determine the impact of the variances in the project cost and schedule as well as in other areas of the project (i.e., quality performance adjustments and scope changes, etc.).
If applicable, analyze the trends of the variances and document any finding about the sources of variation and the impact area.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.