How to avoid being sucked into the vortex of Schedule Variance Analysis: Part Two

The discussion in Part One reminded us to stay focused on the facts as an essential aspect of completing schedule variance analysis in support of earned value management, with a few tips on what not to do.  Let’s take a look at some examples and examine why they are good or bad variance write-ups.  These are real examples from real projects that were behind schedule from an earned value perspective (earned value was less than scheduled/planned value).

Good Schedule Variance Report – Example #1 
Reason: Progress slowed due to difficulty of removing control rod drive mechanisms.  Shipping of CRDM’s to laboratory was behind schedule due to laboratory documentation and procedural issues.  Non-Destructive Assay (NDA) is slow due to resources working on higher priority lab projects.
Impact: No long-term impact to the project with additional labor support for NDA coming in February.  With proper support the project will be back on schedule in March.
Corrective Action: Continue to use selective overtime and make adjustments in the sequencing of work.  Working with the laboratory to resolve documentation issues and NDA labor availability.
Comments:

• The reason statement is clear on what work has been delayed and why, yet it is very brief.
• The impact statement tells the possible results/severity of the delay and addresses when recovery will be expected (including the “with proper support” caveat condition).
• Action statements tell what is being done to recover the slip in schedule.

Good Schedule Variance Report – Example #2 
Reason: Behind schedule on removal of TR-N1 due to equipment breakdowns and poor-weather delays (excessive winds).
Impact: TR-N1 removal is three weeks behind schedule; which, if not recovered, will impact replacement schedule of new transformer and the testing/turnover milestone.
Corrective Action: A recovery schedule has been prepared and implemented that will recover the schedule in time to meet the testing/turnover milestone.  Equipment repairs have been made but schedule recovery is based on continuous equipment operation.  Routine maintenance frequency has been increased to minimize the extended downtime.  Additional spare parts have also been purchased.  With the seasonal change, there should not be weather delays during the recovery period.
Comments:

• The reason/issue is brief but it is clear what caused the delay and why there is a schedule variance.
• The impact addresses that a milestone will be affected if action isn’t taken.  This provides an early warning, documents the current situation, and will get management support for recovery actions.  The specific milestone impacted is also stated.
• The corrective action statements tell what is being done to recover the slip in schedule and the expected result (when).  Additional information is added to help clarify the expected results.

Good Schedule Variance Report – Example #3
Reason: Extended discussions by the utility administration and the board of directors led to delays in starting the following work: Task #1 (name the task)
-     Task #2 (name the task)
       -     Task #3 (name the task)
Impact: The delay will not allow completion of task #2 this fiscal year, as planned.  Tasks #1 and #3 can be completed this FY but with revised completion dates.  The milestone deliverable dates cannot be met.
Corrective Action: A revised schedule is being prepared to incorporate the later start dates.  Since the delay is beyond company control, a baseline change will be prepared to incorporate the budget and resource changes into the Baseline.  This change will not have a significant impact to overall plant operations.
Comments:

• The reason statement specifies the tasks that are impacted by the delay and why.
• The impact statement sates the expected impact to the tasks specified (unrecoverable) and that a key milestone is also impacted.
• Corrective actions relate to what will be done relative to the impact.

Poor Schedule Variance Report - Example #4
Reason: Work was behind schedule at the end of the month.
Impact: Negative schedule variance.
Corrective Action: Full recovery will be achieved.
Comments:

• Reason needs to tell the reader what caused the delay and why.
• The impact statement needs to assess the impact on other work, key milestones, and the activity completion date. 
• The corrective action needs to identify what the project is doing to correct the situation.

Poor Schedule Variance Report – Example #5 
Reason: Behind schedule due to lack of resource availability
Impact: Expect to recover schedule.
Corrective Action: Offers have been extended.
Comments:

• The reason needs to be more specific; it should address the work that is being delayed.  Why adequate resources were not provided should also be addressed. 
• The impact statement does identify the expected result but it also needs to state the impact on other work or key milestones.  It’s appropriate to state that the work is not on the critical path and there is no impact to milestones.
• The corrective action should be more specific in identifying what the project is doing to correct the situation; i.e., how many and what personnel are being added and when is recovery expected?  Usually, overtime is used rather than a new hire; if so, consider the cost variance impact as well.

Writing a proper schedule variance analysis does not have to be difficult, but you will need to spend enough time to think carefully and ensure you have addressed the specific issues adequately.  Do not try to rush through the write-ups or you risk undermining the benefits of earned value management.  Good luck!

Do you have any great examples of what to write or not write?  I know some of you must have some interesting stories, so consider sharing them with us.  Please share in the comments below. 

Next week we’ll tackle the CPI report and look at how to write a solid cost variance analysis.

- Melissa Duncan (About Melissa)

Read the previous posting Earned Value Exposed: What has Your Earned Value Software Done for You Lately?

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Earned Value legend as there may be a few of us that don’t yet have this memorized…

PM=Project Manager

PC=Project Controls

CAM=Control Account Manager
CPI=Cost Performance Index

EVM=Earned Value Management

EVMS=Earned Value Management System
WBS=Work Breakdown Structure

OBS=Organizational Breakdown Structure
SPI=Schedule Performance Index
IPMR=Integrated Program Management Report