Variance Management and Earned Value Homework Help

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Normally, the basic definition of Variance is given as the measurable change of from the known standard or the baseline or we can also say the original value. But in project management, variance is defined as the measurement of the spread between the numbers and the data set. The main aim of the variance is to measure how far each number is from the mean in the set. Variance Management in the project management team establishes the variance baseline by identifying the cost, scope and the schedule. A work – breakdown structure is created by the Variance Management. This work – breakdown structure is actually a hierarchical view of all tasks which are to be done. The entire which are supposed to be completed are also given by the scope. The Variance Managers create a plan to manage variances from the triple constraints of scope, cost and schedule after identifying them. In Variance Management and Earned Value Homework Help, the basic definition of Earned Value is given. It is basically more than a unique project management process or technique. The main objective of Earned Value in Project Management is to measure the project performance and also its progress.

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Objectives of Variance Management and Earned Value

In project management, the Variance Management has a lot of objectives which are noted below in Variance Management and Earned Value Homework Help. These are
• Budgeted Cost vs. Actual Cost: -By controlling the budgeted cost vs. actual cost, the Variance Management helps or assists the managing budgets. The Variance Management also controls the variance between the planned and the actual costs which might lead to adjusting business goals, strategies and objectives.
• Materiality: – The materiality threshold differs from company to company and is easily handled by the Variance Management. Actually the materiality threshold is the level of statistical variance which is deemed meaningful or worth nothing.
• Relationships: – The Variance Management also identifies the relationship between the pairs of variables while performing the variance analysis.
Apart from the objectives of Variance Management, the Variance Management and Earned Value Homework Help also enlists the objectives of Earned Value in Project Management. These are
• Integrated work, schedule and cost using a work – breakdown structure: – The Earned Value authorizes work and related resources and thus integrates them by using a product – oriented work – breakdown structure. This in turn helps the companies to co – ordinate and organizes the contributions and also makes sure that the cost is properly integrated.

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