Variance At Completion

In project management, variance is the difference between a planned cost and the actual cost incurred and, normally, this leads to corrective actions. A more general definition of Variance Analysis can be found in Wikipedia and other sites.

Variance Analysis



At Time Now:

E_i = Initial Estimate (Planned or Estimated Budget)

A = Actuals = Actual amount incurred

E_t-c = Estimate-to-Complete

E_a-c = Estimate-at-Completion = A + E_t-c

V_a-c = Variance-at-Completion = E_i  - E_a-c

At New Time (Time Now + T):

If the variance is high (too much error or discrepancy), then assign E_a-c as the new E_i. 

Hence,

E_{i (new time)} = E_{a-c (time now)}