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”

Advertisements