Variance analysis identifies why performance differs from plan; trend analysis predicts where performance is heading.
1. Variance Analysis
Performed for:
- Cost Variance (CV) – Difference between planned and actual costs.
- Schedule Variance (SV) – Difference between planned and earned progress.
- Productivity Variance – Gap between planned and achieved outputs.
2. Root Cause Identification
Common reasons for variance:
- Underestimation of work quantities.
- Delayed approvals or design changes.
- Resource inefficiency or poor productivity.
- Weather or logistics constraints.
- Rework due to quality issues.
Corrective Measures:
- Re-sequence non-critical activities.
- Increase productivity on critical path tasks.
- Reallocate resources (labor or equipment).
- Negotiate change orders if client-driven.
3. Trend Analysis
Tracks key metrics over multiple periods to identify improvement or deterioration.
Tools:
- CPI/SPI trend charts
- Moving average of monthly variance
- Performance heatmaps by WBS section
- Milestone trend analysis (MTA)
“Trends tell the truth long before reports do.”