AACE provides project managers with an array of recommended practices to help them better manage and report on their projects. The newest recommended practice is AACE 86R-14, which offers guidelines on variance analysis and reporting.
AACE explains, “This RP is intended to provide guidance for planning, performing, managing, and controlling the variance analysis process. Earned value management (EVM) practitioners would consider this guidance to be advisable for analyzing earned value (EV) metrics and addressing any potential influences to project execution. The target audience for this RP is anyone with a need to understand how to prepare an EV variance analysis and perform a root cause analysis. “
Basically it’s describing guidelines to better manage your projects in terms of EVM and Variance Analysis.
To make things easier for you, we created a handy white paper that describes the recommended practice and how you can use PRISM to meet those guidelines.
For instance, according to the recommended practice, the Variance Analysis Report (VAR) should contain six key sections:
- A report header including: project, reporting period, vendor/owner, date, and other pertinent information.
- Details showing the control account description (or other WBS element) and the relevant Budget and Estimate at Completion.
- Narrative stating the cause, corrective action and future impacts of the cost variance and schedule variance.
- An indicator that reveals what variance is exceeding a predetermined threshold.
- The Schedule Performance Index.
- The Cost Performance Index.
Using Excel and various other programs this report could be painstakingly pulled together over the course of many exhausting hours. Or you could use PRISM to quickly and easily produce a clear, comprehensible version of this report. We think the choice is pretty obvious.
Check out our white paper to learn more about the AACE 86R-14 Recommended Practice and how PRISM simplifies meeting its guidelines.