HKSM
Variance
A measurable difference between actual results and the approved baseline or expected value.
Key Points
- Always calculated against a defined baseline (scope, schedule, cost, quality, or other metrics).
- Can be favorable or unfavorable; the sign convention (positive/negative) should be defined in the management plan.
- May be shown in units (days, dollars, defects) or as a percentage, and tracked over time to spot trends.
- Used in variance analysis and EVM to trigger root-cause investigation, corrective actions, or change requests based on thresholds.
Example
The cost baseline for a phase is USD 200,000, but the team spent USD 215,000. The cost variance (Actual - Baseline) is +USD 15,000, indicating an overrun that requires analysis and potential corrective action.
PMP Example Question
During monitoring and controlling, a project manager notes that actual costs exceed the cost baseline by USD 75,000. What is this difference called?
- Variance
- Change request
- Risk
- Assumption
Correct Answer: A — Variance
Explanation: Variance is the measurable gap between actual performance and the approved baseline or expected value.
