System redesign

Permissible variances exist for all levels of the organization. If the variance is within these permitted deviations, then there will be no response, and the variance may be ignored. In some situations where the variance is marginal (or even within limits), corrective action may be required. This would normally occur at the functional level and might simply involve using another test procedure or possibly considering some alternative not delineated in the program plan.

If major variances occur, then either replanning or system redesign must take place. The replanning process requires the redefining and reestablishing of project goals as work progresses, but always within system specifications. This might include making trade-offs

1. VARIANCE ANALYSIS (cost in thousands)


Milestone Status

Budgeted Cost Work Schedule

Budgeted Cost Work Performed

Actual Cost

Variance, Schedule


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