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Analysis Considerations

Favorable and unfavorable variances should be carefully evaluated. The program analyst should examine and understand the reasons for underruns as well as overruns because they could be masking a serious problem. Establishing Thresholds for Reporting and Analysis

  • Establish threshold reporting based on risk and tailored to WBS by specific dollar amount and/or variance percentage
  • Identification of threshold reporting should also consider program phase, risk and WBS criticality

Good Variance Analysis Identifies

  • The Problem
  • Cause of the Problem
  • Impact to the Program (Cost, Schedule and Technical)
  • Corrective Action
  • Get well date

Areas to Address

  • Poor initial planning or estimating
  • Technical breakthroughs or problems
  • Cost (or usage) of labor, material, or Other Direct Costs higher or lower than planned
  • Inflation and new labor contracts
  • Front-end loading

Reconciliation Analysis

  • Other budget/funding documentation
  • Labor resource planning documentation
  • Schedules

EVM Performance Reporting - Key Data ElementsKey Data Elements Chart

 
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Last Updated: January 22, 2010
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