You can minimize cost overruns on projects by early detection and corrective action.
When an Explanation of Variance (EoV) is manually or automatically created, the cost and/or schedule variances that exceed the threshold are color-coded on the Explanation of Variance form along with text that explains what threshold was exceeded. When the Explanation of Variance is created automatically, the default workflow assigns it to the control account manager (CAM) defined for the control account that exceeded threshold.
The results used to calculate the values displayed on the workflow form are set in Cobra. You can specify the results that you want to use by selecting the Use selected results option in Cobra, and selecting the results in the Results used to calculate values grid. To locate the option and grid, log into Cobra and display the Project Properties dialog box. Select the Preferences tab and click Analyze. PM Compass displays the selected results in the workflow form.
The explanation of variance, corrective action, and impact narratives are entered into the form. Use the Child tab to create new corrective action child workflows for each action described in the narrative to help keep track of what was documented in the corrective actions. After the Explanation of Variance and child workflows are complete, start the workflow steps.
The next reporting period, when the EoV is created, the CAM has the option to copy the narrative and uncompleted corrective actions to the new EoV form from the previous period. Using this process and the Workflow List report, you can not only document/log your corrective actions, you can easily make sure that all of the corrective actions described in the narrative are completed.
The Explain Variance category includes the following workflow types:
Explanation of Variance: This workflow type highlights the variance thresholds exceeded and is used to document the explanation, impact, and corrective action.
Explanation of Spend Variance: This workflow type allows you to track budget vs. actual and is used to document the explanation, impact, and corrective action.
Corrective Action: This is a child workflow to the Explanation of Variance and is used to assign tasks to individuals to perform the corrective action described on the Explanation of Variance form. It tracks the progress of the corrective actions.
Assisted Explanation of Variance: This workflow type enables you to generate and assess narrative scores for Explanation of Variance, Corrective Action, and Impact narratives based on the seven criteria, allowing support for the acceptance of Explanation of Variance reports by the respective customers.
Using these Explain Variance types, you can clearly see what variances have been exceeded, document what needs to be done to minimize the variance, and get the project performing as planned.
A threshold defines the upper and lower limit of an acceptable cost or schedule. PM Compass uses Explanation of Variance and Cost Analysis thresholds.
For Deltek Cobra users, the narrative or note fields on the Explanation of Variance form can update Variance Notes in Cobra. This is useful when exporting data to wInsight. Use the Update Source workflow action to update the Cobra Variance Notes categories. In Cobra, you can use the Analyze view and the Get Narrative button to copy the control account level narrative to a higher level of the WBS.
An Explanation of Variance is designed to allow you to advance the calendar into the weekly periods before producing a month end report when you have a rolling wave calendar assigned to the project.
For example, if the Project Details view indicates the EoV is to be created 15 days after the status date, the calendar will have been advanced two weeks into the month. When the date is 15 days after the status date, the EoV is created and the cumulative to date and current period budget, actuals and earned value will all be end of month values. This means that they do not include the weekly periods.
The Budget at Complete and Estimate at Complete values are more difficult to keep unchanged for the weekly periods due to change requests that need to be processed, etc.
The EoV form uses the cost sets BCWS, BCWP, ACWP, and EAC by default. However, if a cost set of the name BCWS_EOV, BCWP_EOV, ACWP_EOV, or EAC_EOV exists, it will use that cost to calculate the values on the EoV form. If you want to process a change request, update a forecast, and so on, before creating the Explanation of Variance, you can copy the Budget class(s) and/or Freeze the forecast at the end of the month. You can then display these alternate classes on the EoV form by manually creating the cost sets BCWS_EOV and EAC_EOV in Cobra including the classes.
All workflow categories in PM Compass share common List View grid columns and common toolbars.
There are two toolbars:
List View toolbar: Use this toolbar for tasks such as creating a new EoV or selecting an action.
Form View toolbar: Use this toolbar for tasks such as starting workflow steps or deleting an EoV.
The Explanation of Variance has the following tabs:
The Corrective Action form has the following tabs:
The Assisted Explanation of Variance has the following tabs:
Set up a project for explain variance
Automatically create explanation of variance workflows
Schedule the creation of explanation of variance workflows
Assign an Explanation of Variance workflow
Assign a Corrective Action item