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Oracle Primavera - PM6

Budgeted units greater than Earned units

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Khaja ShariefMember for 18 years 1 month
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In general the budgeted labor units is derived by multiplying Budgeted qtyXunit norm. This would be entered in budgeted units and baselined. Now during the course project execution, practically we may come across change in quantity.  This is because physically we may earn more quantity than what we budgeted. What is the practice normally followed by planners in P6 to incorporate this change?.

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  1. 0
    Abilash Palakkadan Mathew ·
    #1

    Update the progress and

     

    Update the progress and actual quantity consumed; then you will get earned value based on the progress achieved and remaining quantity from the original budgeted quantity.

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  2. 0
    Gary Whitehead ·
    #2

    Khaja, "physically we may

    Khaja,

    "physically we may earn more quantity than what we budgeted"

    -I don't understand this. You can only earn what you budget for. Do you actually mean "physically we may use more quantity than what we budgeted"?

     

    If your issue is that after setting the budget, there is extra scope added to the project. Then you should create a new baseline with this extra scope budgeted.

     

    If your issues is that you are using more labour to achieve the scope than you budgeted for, this is a sign of inefficiency and one of the reasons you track earned value. -You will get a poor CPI score to reflect the fact that you are earning less per manhour than expected.

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