Variance refers to the difference between planned and actual project performance. It helps project managers identify deviations in schedule, cost, scope, or quality, allowing corrective actions to be taken early.
Types of Variance:
- Schedule Variance (SV) – Difference between planned and actual project timeline.
- Cost Variance (CV) – Difference between planned and actual expenditures.
- Scope Variance – Deviations from the original project scope.
Importance of Variance Analysis:
Tracking variances ensures better control over project execution and helps in forecasting potential risks before they escalate.
