Variance Notes: Definitions & Explanations PDF | Download eBooks
Study Variance lecture notes PDF with project management definitions and explanation to study What is Variance?. Study variance explanation with project management terms to review project management course for online MBA programs.
Variance Definition:
A variance is defined as any schedule, technical performance, or cost deviation from a specific plan.
Project Management: A Systems Approach to Planning, Scheduling, and Controlling by Harold Kerzner?
Variance Notes:
Variance is generally defined as deflection, deviation or inconsistency from a planned path. Variance in project management refers to the deviation from the project plan. Variance can be observed in schedule, cost or performance. It is necessary to identify, monitor and control variances during project. After determination of variances in the project, corrective actions must be taken to eliminate or reduce them. Every level of management uses variance analysis to analyze the changes in the budgeting and scheduling systems of the project. Based on this, two types of variances are calculated and analyzed. One is cost variance that shows the deviation from the planned or estimated budget. The second one is schedule variance which shows the deviation from the planned schedule of the activities affecting the overall project schedule.
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