project management glossary
variance
Any actual or potential deviation from an intended or budgeted figure or
plan. A variance can be a difference between intended and actual time. Any
difference between the projected duration for an activity and the actual
duration of the activity. Also, the difference between projected start and
finish dates and actual or revised start and finish dates.
The difference between an actual or estimated cost and an authorized
appropriation for the scope of work in a cost class. Variances can be negative
(under-run) or positive (over-run).
The difference between the baseline and scheduled task or resource
information. Variances occur when you set a baseline plan and begin entering
actual information into your schedule or cost spreadsheet.
variance analysis
The analysis of the following:
- Cost Variance = BCWP - ACWP
- % Over/Under = 100 x (ACWP - BCWP) / BCWP
- Unit Variance Analysis
- Labor Rate
- Labor Hours/Units of Work Accomplished
- Material Rate
- Material Usage
- Schedule Variance = BCWP - BCWS
