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Variance Thresholds

Management by exception, concentrating on areas that exceed predefined thresholds, is an efficient way to manage a large project.

For each code in a code or resource file, it is possible to specify either a positive or a negative threshold for cost and schedule variances. It is also possible to specify whether the threshold is based on a fixed value or a percentage.

These thresholds can be analyzed in the following:

  • Analyze utility
  • IPMR Format 5 and EVM report

When the variance calculated exceeds the predefined threshold defined for the code, Cobra triggers an exception and highlights the value with a color. For example, assume that an unfavorable threshold of 10% is defined for a specific WBS element. If the costs associated with that WBS element exceed the budget by 10% or more, Cobra highlights the unfavorable cost variance.

To enable a code or resource file to have variance thresholds, use the Thresholds page of the New Resource File Wizard or the Thresholds page of the New Code File Wizard. After creating the files, you can modify the variance thresholds in the Thresholds tab of the Resource View or the Thresholds tab of the Code View.