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Traffic light flags are used to report project variance, as seen in the variance column of the activity table. To set these flags, select "Global Change" from the toolbar and choose the desired global change. Click the "Apply Change" button, review the warning, and confirm to proceed. If the changes are acceptable, commit them, which will set red and yellow flags for variance levels. You can opt to create a log file, but it's not necessary. For a second flag, select the green flag and follow the same steps to apply and commit changes, indicating no variance to plan. The flags represent: green for no variance, yellow for minor variance, and red for high variance.