EVMS Variance Analysis — EVMS Analysis and Management Reports

by Humphreys & Associates | April 2, 2015 4:25 pm

A Variance Analysis Report (VAR) that includes specific information about the cause, impact, and corrective action “provides management with early insight into the extent of problems and allows corrective actions to be implemented in time to affect the future course of the program” [reference: NDIA, IPMD EIA-748 (Revision D) EVMS Intent Guide]. Unfortunately, variance analysis is an easy target for criticism during EVMS reviews. There are many examples of inadequate variance analysis to choose from, but what they all have in common is the lack of specific information on the “why, what, how, when, and who” of any variance. The variance analysis reporting requirements are found in the EIA-748 (Revision D) Guidelines in Section IV., Analysis and Management Reports, Guidelines 22-27.

EIA-748 Guidelines
Section IV. Analysis and Management Reports
22 2-4a Control Account Monthly Summary, Identification of CV and SV
23* 2-4b Explain Significant Variances | Earned Value Management
24 2-4c Identify and Explain Indirect Cost Variances
25 2-4d Summarize Data Elements and Variances thru WBS/OBS for Management
26* 2-4e Implement Management Actions as Result of EVM Analysis
27* 2-4f Revise EAC Based on Performance Data; Calculate VAC

A VAR that includes specific information and data about a problem will allow management to make informed decisions and mitigate project risk. Getting specific about variance analysis reporting includes the following elements.




Corrective Action Planning:

Ask yourself, is the analyses presented in a manner that is understandable? Does the data support the narrative? Does the variance explanation provide specifics of:

why” the problem occurred,
what” is impacted now or in the future,
how” the corrective action is being taken,
when” the corrective actions will occur,
when” the schedule variance will become zero, and/ or the work gets “back on schedule”
who” is responsible for implementing the corrections?

Remember, a well-developed Variance Analysis Report can reduce the risk of a Corrective Action Request (CAR) during an EVMS review.

Source URL: https://blog.humphreys-assoc.com/evms-variance-analysis-reports/