Earned value Management

Earned value units or earned value cost

Below link is where I explain the Objective and Field Definition of EVM
Schedule % Complete Post #17

Thanks Rodel for giving me link.......

But my question was how to show all this in P6......Let me put my thinking here , just correct me , if you feel i am wrong:

a) Planned baseline program will serve as BSWS - No problem is getting this figure.
b) ACWP- No problem in getting this also.
c) BCWP- We will just update the activity and retained the planned cost to get this figure....But where will do this one...Whether i make a separate copy of the baseline program and do this one....if so..how i will get all this figures such as SPI, CPI,TCPI etc, in a single program....

From where does primavera calculate figures which are related to BCWP.....

Haresh,
In P6 there are so many ways of tracking EVM which needs to write a procedure first and agreed how it needs to be track.
First is to have an agreed baseline to use for EVM which have different option to set in P6.
* Project Window-> settings tab-> Project Baseline or Users Primary Baseline
You can use Project Baseline for EV baseline and use current Project in User’s Primary Baseline for what if analysis or vice versa.

Second need to decide what is the agreed technique for computing performance percent complete (physical progress) of EVM.
* Admin-> Admin Preferences-> Earned Value
1) Activity % Complete
2) Use WBS Milestone
3) 0/100% complete
4) 50/50 % complete
5) custom % complete (i.e. 4 step, 6 steps…etc...)
or mixture of all of the above which can be set on each wbs
• WBS Window-> Earned Value tab

Third Technique for computing Estimate to Complete (ETC)
* Admin-> Admin Preferences-> Earned Value
1) ETC = Remaining cost of activity
2) ETC = PF* (Budget at completion – EV) Where PF = ????

For Earned Value Calculation using Baseline by default it use = Budgeted Value with planned date and can change if running what if analysis to Budgeted Value with current date or At Completion Values with current dates

BCWP = EV = Performance % Complete (physical progress) * BAC
BCWS = PV = Schedule % Complete (Plan progress) * BAC
ACWP = AV = Actual Cost
SV = EV – PV
CV = EV – AC
Etc…
All of this values are available in Activity Window (columns -> Earned Value and Graph EV profile), WBS Window (columns -> Earned Value), Project Window (columns -> Earned Value), Tracking Window (columns -> Earned Value and Graph EV profile)

Hi Rodel,

i got 80% of ur explanation.....and remaining 20% i still my doubt as follows:
a) I made Project Baseline for EV baseline and also current project in User’s Primary Baseline....After that which program i have to open to compute Earned value analysis.
b) As per your Second & third step , i have selected , which technique to compute.
c) Once selected again how to compute my calculation.....i didn’t understand ur explanation regarding your last line i.e. "For Earned Value Calculation using Baseline by default it use = Budgeted Value with planned date and can change if running what if analysis to Budgeted Value with current date or At Completion Values with current dates".......
i request you to once again explain the portion which didnt understand.

regards,

Haresh

Haresh,
For EV calculation just accepts the default:
Admin-> Admin Preferences-> Earned Value tab-> Earned Value Calculation

What exactly you did not understand?

Dear Rodel,

My purpose here is, in a single program, i want to show the following:
a) Schedule variance
b) Cost Variance
c) Budget at Completion
d) Estimate at Completion
e) To performance index
Step - 1
As per your advice i have made two program, and one program i made "Primavery baseline" and another program where i am updating as "Users Primary Baseline"...
Step-2

I went to admin preferences and selected the techique for computing Performance % complete and ETC.......
Step-3
In the updated program, i have added all the columns as listed above, after that i dont what i have to do...How all the above listed figures will be shown.......

Can u pls guide me after this what exactly , i have to do???

I am Waiting for the next step , i have to do in Earned value as i have previous mentioned , any help pls.

Haresh,
I’m not really sure what is your problem. If you already show all the columns as you mention then what else is missing or are you looking for values for SV, CV, PV, AV, EV?

All Values in each columns mentioned will not have values until the project start and data date is move from Project Start to first cut-off date and or to current date.
BCA, ETC & EAC will have the same value and others are zero.
Budget spread, Plan spread and Estimate At Completion spread are available per timescale at Activity Usage Spreadsheet.

Dear Rodel,

I want to know what i have done is correct or not???

I have made two copy of the program and made one program as project baseline and another program as User’s primary baseline and then selected technique for perfomance percentage complete and ETC......

And then updated my program and changed my datadate......Is this the correct way doing earned value.....

regards,

Haresh

are you looking for analysis?

negative variance or index less than 1 = time delayed / overrun cost

positive variance or index more than 1 = time ahead / underrun cost

zero variance or index is 1 = time is on schedule / break-even cost

Hi Pinan,

I am not looking for any analysis , since i know all the theory stuff of earned value....

I want to know, how to do in P6.1

Rodel, have explained most of the things, in some areas i have confusion.as mentioned in my previous posting....

regards,

Haresh

Haresh,

That’s correct and basic steps in EVM.
It’s a long explanation if I explain the whole Process of EVM from setup to implementation/ tracking/ analysis/ control etc...

To give you a little bit of idea, EVM like what I have mention on my previous post requires procedure on how it was going to setup & implement.
It varies on the size of the Project but generally same process. The key player may change depends on how big the project is and how detail EVM to control and implement.
1) Managing of Cost Account or control account - big projects may needs Account Manager/ Cost controller/ Cost Administrator/ QS
 Includes creation of CBS (Cost Breakdown Structure) and its detail
 Cost element/ Cost type – identification and allocation to cost account
 Identification of actual cost – cost account/ cost type (PO, Invoice, Subcontractors, indirect, direct… etc)
2) WBS creation -> cost account should be as close as possible to WBS or as long as it is easy to allocate to WBS
3) WBS responsibilities -> Each WBS with corresponding CBS should be allocated to site/project engineer/ supervisor/ foreman to manage their WBS and cost. (varies on size it can be PM responsibility if Project is to small and manageable)
4) Change control Management – Project Control Manager/ Account Manager/ Cost Controller -> cost allocation/ approval/ register/ management
5) Baseline Creation – Planner/ Scheduler/ Cost Controller -> Cost loading, resource loading/ cost account allocation/ budgeting/ EVM setup and control technique
If all of those setup are done and key players are identified then implementation will be mixture of key player contribution to the success of EVM which includes EVM analysis, cash flow, forecast, trending and cost review & management.

Hi ,

 

I am asked to write a Earned Value Management procedure for a large road construction project. I have some basic ideas, but i would liek to get a brain storming session here and see how far i can make use of the points we discuss here. I request you guys to post any relevant information here.

 

Thanks in advance,

Srinivasa Raju