Pricing & costPerformance metric

AV

Avoidable Variance

Definition

Avoidable Variance refers to cost or schedule deviations that could have been prevented through better planning, management, or execution. AV analysis distinguishes controllable variances from those caused by external factors beyond contractor influence.

In Earned Value Management and performance analysis, identifying avoidable variances helps focus management attention on areas where corrective action can be effective. Demonstrating understanding of variance causes and implementing corrective actions for avoidable variances supports positive performance assessments and continuous improvement.

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