Plan Variance reporting is used by managers to monitor the performance of their team or group against a previously set plan.
It compares actual results against planned results across various metrics and input levers, such as Available Time, Contribution, and Utilization.
The purpose of this report is to provide managers with a daily view of how their team is tracking and to identify areas where actual performance deviates from the plan by +/- 5%.
By toggling to the individual tab, managers can also review the plan variance of each individual in their reporting line. This information is useful for daily team huddles and helps managers make informed decisions about their team's performance and drive actionable conversations within the team.
There are two key formulas that underpin the Plan Variance report and provide a framework on how to interpret results quickly:
Input - Output = Change in Inventory
Output = Available Time x Utilization x Contribution
Therefore, by understanding the variance in the levers that impact Output, a Manager can quickly identify the root-cause of any variance and follow-up accordingly.