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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Does Resource Curve affect Remaining Late Unit

The Resource curve obviously affect Remaining Early Unit. How about Remaining Late Unit. The answer is YES.

We have a resource assignment window showing Remaining Early and Remaining Late unit.

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Continue reading “Does Resource Curve affect Remaining Late Unit”

How does “Resource curve” work?

Let say we have an activity with 100 days duration and 100 labor units. By default it use Linear spread.

It mean, when you reach 5% of duration (5th day in this example) you have 5% of total unit (5 unit in this example). And it spread evenly to that period.

So resource spreadsheet will be like this:

Continue reading “How does “Resource curve” work?”