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    Earned Value Management in P6

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    anoopvvv
    This document provides instructions for using earned value management (EVM) in Primavera P6 to analyze project performance. It outlines how to create a baseline for a sample project of casting 10 columns over 10 days. Key EVM metrics like planned value, earned value, actual cost, schedule variance, and cost variance are calculated based on project data from day 5. It also demonstrates how to configure EVM settings and generate EVM reports and diagrams in Primavera P6.

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    Earned Value Management in P6

    Uploaded by

    anoopvvv
    133 views13 pages
    This document provides instructions for using earned value management (EVM) in Primavera P6 to analyze project performance. It outlines how to create a baseline for a sample project of casting 10 columns over 10 days. Key EVM metrics like planned value, earned value, actual cost, schedule variance, and cost variance are calculated based on project data from day 5. It also demonstrates how to configure EVM settings and generate EVM reports and diagrams in Primavera P6.

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    Earned Value Management in primavera P6

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    This document provides instructions for using earned value management (EVM) in Primavera P6 to analyze project performance. It outlines how to create a baseline for a sample project of casting 10 columns over 10 days. Key EVM metrics like planned value, earned value, actual cost, schedule variance, and cost variance are calculated based on project data from day 5. It also demonstrates how to configure EVM settings and generate EVM reports and diagrams in Primavera P6.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    133 views13 pages

    Earned Value Management in P6

    Uploaded by

    anoopvvv
    This document provides instructions for using earned value management (EVM) in Primavera P6 to analyze project performance. It outlines how to create a baseline for a sample project of casting 10 columns over 10 days. Key EVM metrics like planned value, earned value, actual cost, schedule variance, and cost variance are calculated based on project data from day 5. It also demonstrates how to configure EVM settings and generate EVM reports and diagrams in Primavera P6.

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    How to use Earned Value Management in

    Primavera P6

    Primavera support you to control project performance by Earned Value Management technique.

    I will show you how to use it in Primavera.

    We have a simple project to finish casting 10 column.

     1 column / day.
     100 $ / column

    Each activity is assigned resource A.


    First we have to create baseline for this project.

    Go to Project -> Maintain Baselines. Click on Add and OK to create a baseline.

    We will assign this baseline for our project.


    Go to Project -> Assign Baselines. Click on Project Baseline and select our baseline. Then click
    OK.

    We can show columns as display in below picture to analyze Earned Value Management.

    Right click on Activity Table -> Column. Select columns in Earned Value group.
    At the end of day 5 of the project:

    How many column should have been built? (This is the Planned Value)

    The answer is 5 column

    (This value is automatically calculated by using Baseline we assign previously. Baseline said that
    Project’s duration is 10 days, today is 5th day, so 5 column should be completed)

    PV = 5 x 100 = 500 $
    How many column have actually been built? (This is the Earned Value)

    We receive report from construction site and it said only 3 columns finish.

    (This is value based on the Performance % Complete which is equal to Activity % Complete by
    default)

    EV = 3 x 100 = 300 $
    How much did it cost to build those three column? (This is Actual Cost)

    We receive report from Accountant department and it said 200 $ / column.

    (This value is based on Actual Units)

    AC = 3 x 200 = 600 $
    Then we can show “Schedule Variance” and “Cost Variance”.

    Schedule Variance SV = EV – PV = 300 – 500 = -200 $

    A negative number indicates that the project is behind schedule.


    1 day for 1 column for 100 $. So it means we are late 2 days.

    Cost Variance CV = EV – AC = 300 – 600 = -300 $

    A negative number indicates that the project is over budget.

    It means we are currently over budget 300 $.

    Then we can show “Estimate to Complete” and “Estimate at Completion”

    ETC = BAC – EV = 1000 – 300 = 700 $

    EAC = ETC + AC = 700 + 600 = 1300 $

    According to PMI standard, we should take CPI into account to calculate these 2 values. So we
    can change the way Primavera calculate by :

    Go to WBS window -> Earned Value tab. Check on PF = 1 / Cost Performance Index
    Now

    ETC = = = 1400 $

    ( CPI = = = 0.5 )

    EAC = ETC + AC = 1400 + 600 = 2000 $

    However you have to configure this option at the beginning of project (before update anything).
    Otherwise it doesn’t affect.

    We can also make diagram report

    Click on Activity Usage Profile button.


    Right click on the diagram and select Activity Usage Profile Option

    Check in option as display in below picture


    Now you can see the Earned Value diagram. You will use the cost axis on the right side (not the
    left one).
    I also attach a theory diagram of Earned Value Management for your reference.
    With Earned Value Management in Primavera we can easily see our project performance
    and forecast the total cost at the end of project

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