Variance Analysis is used to compare actual performance against planned results, enabling project managers to identify and correct discrepancies in the progress and management of a project.
The technique used to compare actual performance to a plan and analyze a project's trend is Variance Analysis. This process involves assessing the difference between planned and actual results to identify discrepancies, which could indicate issues with the budget for product development, the efficacy of the engineering design process, or other aspects of project management. Variance Analysis allows project managers to make corrections by understanding where the project is surpassing or not meeting expectations. It's a crucial component of performance management and is typically used alongside tools like budgeting to plan and forecast future performance in accordance with the project's objectives.