M & C

Variance analysis

Variance analysis reports collect and assemble information on project performance variances. Common topics are schedule, cost, and quality variances. Information on a variance analysis includes:

Schedule variance
- Planned results
- Actual results
- Variance
- Root cause
- Planned response
Cost variance
- Planned results
- Actual results
- Variance
- Root cause
- Planned response
Quality variance
- Planned results
- Actual results
- Variance
- Root cause
Planned response

Variance analysis is an example of a data analysis technique in the PMBOK® Guide – Sixth Edition. The information can be provided as a standalone report, as part of the project status report, or as backup to an earned value status report. It is identified as a technique in these processes:

5 Monitor and Control Project Work
7 Close Project or Phase
6 Control Scope
6 Control Schedule
4 Control Costs

Tailoring Tips

Consider the following tips to help tailor the variance analysis to meet your needs:

Scope variance can be included but is generally indicated by a schedule variance, as either more or less scope will have been accomplished over time.
The variance analysis can be done at an activity, resource, work package, control account, or project level depending on your needs.
You can add a check box to indicate if the information needs to be escalated to the sponsor, pro- gram manager, or other appropriate individuals.
You may want to add a field that indicates the implications of continued This can include a forecast based on a trend analysis or based on identified responses.
In addition to tailoring the content of the variance analysis, you can tailor the presentation. Many PMOs have reporting software that transforms the data into dashboards, heat reports, stop light charts, or other representations.

Alignment

The variance analysis should be aligned and consistent with the following documents:

Team member status reports
Project status report
Project schedule
Cost estimates
Project budget
Issue log
Earned value status report
Contractor status report

Document elements	Description
Schedule variance	Planned result	Describe the work planned to be accomplished.
	Actual result	Describe the work actually accomplished.
	Variance	Describe the variance.
	Root cause	Identify the root cause of the variance.
	Planned response	Document the planned corrective or preventive action.
Cost variance	Planned result	Record the planned costs for the work planned to be accomplished.
	Actual result	Record the actual costs expended.
	Variance	Calculate the variance.
	Root cause	Identify the root cause of the variance.
	Planned response	Document the planned corrective or preventive action.
Quality variance	Planned result	Describe the planned performance or quality measurements.
	Actual result	Describe the actual performance or quality measurements.
	Variance	Describe the variance.
	Root cause	Identify the root cause of the variance.
	Planned response	Document the planned corrective action.