Variance analysis compares actual project performance to planned performance, helping to identify deviations and keep projects on track. It includes cost and schedule variance, essential for early problem detection, budget control, schedule management, and quality assurance. Overall, variance analysis is vital for ensuring projects are completed on time, within budget, and to quality standards.

1. SPM
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Its importance
in project
management
Presentation - 2024
Variance analysis &

2. Variance analysis
Variance analysis refers to comparing
actual project performance to planed
performance.
It is done to identify difference or
variance to ensure project remain on
track.
Cost variance & Schedule
variance

3. Types
Cost variance Schedule variance
Schedule variance measures the
difference between the work planned
to be completed by a certain time and
the work actually completed by that
time.
Cost variance means comparing earned
value to actual value of work
performance completed by that time.

4. Importance
 Early Problem Detection : Variance
analysis allows project manager to
identify deviations from the project plan
early.
 Budget Control : By analyzing cost
variance, project managers can track
whether the project is staying with in a
budget.

5.  Schedule Management : Schedule variance
analysis help in monitoring the project’s
timeline.
 Quality Assurance : Quality variance analysis
help in maintaining the desired quality
standard for project deliverables.

6. Variance analysis is an essential tool in project
management that ensure project are completed
within budget, on time, and to the desired
quality standard.
Conclusion

7. SPM
Dikshant Acharya
Thank You
For Your Attention