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(EVM-1388) Workshop: Variance Analysis Report (VAR) - Analysis and Preparation

Primary Author: Ms Robin A. Watenpaugh EVP

Audience Focus: Intermediate
Application Type: Application
Venue: 2013 AACE International Annual Meeting, Washington, DC, USA

Abstract: Key to making EV information useful and part of the management decision making tool set is a well written Variance Analysis Report (VAR). A VAR is a communication and action catalyst to address project cost/ schedule drivers. They should be written to accurately, clearly and concisely identify, quantify, mitigate/eliminate future project impacts and effect/track corrective action plans. They are a means to assess impacts to future work given historical and current program events. This paper provides theoretical and contextual VAR information, an overview of a VAR, provides a quick review of the EV process and where the VAR fits in that process. The dissection of a representative VAR to cover EV terminology, project EV and schedule data necessary to prepare a meaningful VAR will be the main emphasis during this session. Session attendees will collectively re-write a VAR using the “5 Whys?” process [4] and existing project EV reports provided. Finally, the session gives a cursory look at how to use the EV data to predict future cost and schedule impacts as appropriate.