VarianceAnalysis(英文版的教程).pptx

VarianceAnalysis(英文版的教程) Agenda What is variance analysis?Linear variance Ice Cream Co.Two component variance analysis Jesse’s BreweryVariance analysis with more than two components Boston VideoKey takeaways2 What is Variance Analysis? Variance analysis is used to understand and assess the drivers of change in measured variables. Variance analysis helps explain and understand what drives the difference between two measures of the same variable (e.g., 1998 profit vs. 1995 profit)Variance analysis explains differences between measures by breaking those measures into their base components (e.g., 1998 revenue and 1998 OPEX as components of 1998 profit) and quantifying the impact of each componentBain frequently uses variance analysis to quantify and identify true profit drivershelp drive future analysis on the most leveraged issues3 The Value of Variance Analysis Why do we need to perform variance analysis?Gives business insight as to what drives revenue/cost/ profitLeads to 'actions'Bain uses variance analysis to gain business insight and to identify the most effective and valuable action steps. Why does profit change?What driver has the most impact?What explains differences in relative cost position?Used to determine product line profitabilityIdentifies areas of focus for cost reductionIndicates impact of lowering priceDrives customer segmentation strategies4 Definitions in Variance Analysis Most situations fall into one of three categories of variance analysis. Description:Two ComponentUnderstanding individual impact of two variable on a single measureLinearSimple comparison of one component against anotherMore than Two ComponentUnderstanding individual impact of more than two variables on a single measureExle:1998 revenue increases driven by 1998 price increase and unit sales1990 total cost per unit versus 1995 total cost per unitDifferences in customer revenue driven by number of transactions, product mix and other fees5 Agenda What is variance analysis?Linear v