The Need for Prompt and Relevant Corrective Action

Variance analysis attempts to identify discrepancy between actual and planned results. Adverse/unfavourable variance should be investigated – determine cause i.e. inefficiency or external factor, Inefficiency could be caused by lack of motivation or inappropriate training. ┬áSteps should be taken to rectify issues. External factors, such as a downturn in market, are harder to accommodate. May be necessary to amend targets […]