Table Variance Control For Program X

Section

Variances greater than $750 that exceed 25% of costs

Section

Variances greater than $2,500 that exceed 10% of costs

Section

Variances greater than $20,000

Department

Variances greater than $2,000 that exceed 25% of costs

Department

Variances greater than $7,500 that exceed 10% of costs

Department

Variances greater than $40,000

Division

Variances greater than $10,000 that exceed 10% of costs

^Thresholds are usually tighter within company reporting system than required external to government. Thresholds for external reporting are usually adjusted during various phases of program (% lower at end).

^Thresholds are usually tighter within company reporting system than required external to government. Thresholds for external reporting are usually adjusted during various phases of program (% lower at end).

In addition to calculating the cost and schedule variances in terms of dollars or percentages, we also want to know how efficiently the work has been accomplished. The formulas used to calculate the performance efficiency as a percentage of EV are:

Cost performance index (CPI) = Schedule performance index (SPI)

BCWP ACWP = BCWP BCWS

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