In our last post, we introduced the basics of variances and demonstrated how to isolate for unfavorable Work Variances. It is equally important, however, to analyze how your dates are progressing. If Baseline Work is 1,000 hours, Actual Work is 500 hours, and Remaining Work is 500 hours, then Work is equal to 1,000 hours and Work Variance is zero. Sounds pretty good, right? But what if you are 8 months into a 10-month project? Assuming an even resource load, you should have consumed 800 hours by now, but your actual work is only 500 hours.
This example highlights the importance of analyzing Start and Finish Variances in addition to Work Variances. If we were to look at the Start and Finish Variances in this 1,000-hour project, we would most likely find that tasks are not starting or completing on time. (more…)