Variance Analysis Notes: Definitions & Explanations PDF | Download eBooks
Study Variance Analysis lecture notes PDF with project management definitions and explanation to study What is Variance Analysis?. Study variance analysis explanation with project management terms to review project management course for online MBA programs.
Variance Analysis Definition:
Variance analysis reviews the differences (or variance) between planned and actual performance.
A Guide to the Project Management Body of Knowledge by Project Management Institute
Variance Analysis Notes:
Although a project is planned before start and the project manager along with his/her project team tries to carry out the project according to the plan, still there is always a difference between the actual and the planned performance. The difference can be small or large. Whatever is the case, the different must be measured and analyzed. The technique to do so is called variance analysis. Variance analysis can be used to identify and study the difference between actual and planned in many different areas of the project e.g. activity durations, cost estimates, utilization of resources, and technical performance measures etc. After variance analysis, corrective actions for each deviation from the plan can be developed.
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