Variance analysis identifies why performance differs from plan; trend analysis predicts where performance is heading.

1. Variance Analysis

Performed for:

• Cost Variance (CV) – Difference between planned and actual costs.
• Schedule Variance (SV) – Difference between planned and earned progress.
• Productivity Variance – Gap between planned and achieved outputs.

2. Root Cause Identification

Common reasons for variance:

• Underestimation of work quantities.
• Delayed approvals or design changes.
• Resource inefficiency or poor productivity.
• Weather or logistics constraints.
• Rework due to quality issues.

Corrective Measures:

• Re-sequence non-critical activities.
• Increase productivity on critical path tasks.
• Reallocate resources (labor or equipment).
• Negotiate change orders if client-driven.

3. Trend Analysis

Tracks key metrics over multiple periods to identify improvement or deterioration.

Tools:

• CPI/SPI trend charts
• Moving average of monthly variance
• Performance heatmaps by WBS section
• Milestone trend analysis (MTA)