Cost overruns can silently derail even the most well-planned projects. By the time issues surface, it’s often too late to act. That’s where variance tracking becomes an essential project management tool.
In this article, we’ll explore how tracking variance—both in cost and schedule—can drastically improve visibility, accountability, and decision-making.
What Is Variance Tracking?
Variance tracking involves measuring the difference between what was planned and what has actually occurred. Two key components include:
- Cost Variance (CV): Compares planned cost vs. actual cost.
- Schedule Variance (SV): Measures whether a project is ahead or behind schedule. By regularly analyzing these metrics, teams can detect scope creep, control expenses, and keep projects aligned with goals.
Why It Matters
- Early Detection: Identify issues before they escalate.
- Budget Control: Avoid surprises at the end of the project lifecycle.
- Improved Forecasting: Predict future performance based on real-time trends.
- Better Accountability: Create a culture of ownership and transparency.
Real Benefits in Action
The blog below walks through how variance tracking has been successfully applied in real-world project environments:
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