Data · Intermediate · about 17 minutes

Variance and anomalies — finding the number that should not be there

Your monthly variance report has 60 line items and 60 percentage changes. Some are large percentages on trivial amounts. Some are small percentages on very large amounts.

You need

Budget vs actual, March, manufacturing company. Raw material | Budget 42,00,000 | Actual 47,80,000 | Var +5,80,000 Power & fuel | 6,50,000 | 6,72,000 | +22,000 Freight out | 3,20,000 | 1,10,000 | -2,10,000 Repairs | 80,000 | 3,20,000 | +2,40,000 Staff welfare | 45,000 | 1,35,000 | +90,000…

Tool

Excel or code mode

You get

1. RANKED BY ABSOLUTE IMPACT Raw material +₹5.80L (48% of total variance, cumulative 48%) · Repairs +₹2.40L (20%, cum 68%) · Freight out −₹2.10L (17%, cum 85%) · Staff welfare +₹0.90L (7%, cum 92%).

Time saved

Monthly variance analysis from 3 hours to about 45 minutes, and the commentary is materially better.