## Sunday, 12 July 2015

### How to calculate Effort Variance ?

Effort Variance is also known as Effort Variation. It is the difference between estimated and actual effort to the Estimated Effort. Effort Variance metric is used to study the distribution of workload. It is measured usually at overall project level. The metric helps in determining the efficiency of effort planning. It also helps to determine the nature and extend of variances and related impact analysis on project budget and schedule.
Effort Variance is always calculated in percentage (%). Effort Variance can either be positive or negative.
How to calculate Effort Variance:
Effort Variance= (Actual Effort – Estimated Effort) / (Estimated Effort)*100

 Estimated Effort in PD’s Actual Effort in PD’s Effort Variance 20 25 25%

Effort Variance= (Actual Effort – Estimated Effort) / (Estimated Effort)*100
Effort Variance= (25-20) / 20 * 100
=25%

Positive Effort Variance means Actual Efforts exceeds the Estimated Efforts. Above example is of positive Effort Variance.
Negative Effort Variance means Actual Efforts required is less than the Estimated Efforts.

 Estimated Effort in PD’s Actual Effort in PD’s Effort Variance 25 20 25%

Efforts Variance= (20-25) / 25 * 100
= -25%

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