How does Primavera P6 calculate Planned Value Cost for Activities without linear distribution (using Resource Curves or Manual plan) in Earned Value Management

When we use Earned Value Management technique, we focus on:

  • Planned Value Cost (PV) = Budget At Completion * Schedule % Complete
  • Earned Value Cost (EV) = Budget At Completion * Performance % Complete (usually equal to Activity % Complete)
  • Schedule Variance (SV) = EV – PV
  • SV > 0 : project is good, ahead of schedule

So Planned Value Cost play a very important role here.

By default when we assign resource to activity, the unit is distributed equally (linear). Then calculation of Planned Value is as above.

However in reality, we always adjust unit for each month/week differently.

Then How ‘Planned Value’ is calculated for Activities without linear distribution, by using Resource Curves or Manual distribution?

I will explain it in this article.

We have an simple project:

The resource assignment use Back Loaded curve: Continue reading “How does Primavera P6 calculate Planned Value Cost for Activities without linear distribution (using Resource Curves or Manual plan) in Earned Value Management”

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How Baseline Dates are calculated in Primavera P6 for Earned Value Management

Primavera P6 give us an option to decide that Baseline date is equal to Planned date or Current date.

The main purpose of this option is for Earned Value calculation.

I’ll explain that option in this article.

We have a simple project containing 3 activities. Each activity is assigned resource A.

How Baseline Dates are calculated in Primavera P6 - 1

We create a baseline called B1 and assign to our project. Continue reading “How Baseline Dates are calculated in Primavera P6 for Earned Value Management”

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.

How to use Earned Value Management in Primavera P6 - 1

First we have to create baseline for this project. Continue reading “How to use Earned Value Management in Primavera P6”