Earned Value Management & Oracle Primavera P6 Oracle Primavera P6 EPPM Certified Implementation Specialist Global Project Management, LLC Trey Miller, MBA, PMP 3090 Gause Boulevard, No. 614 Slidell, LA 70461 www.gblpm.com Tel: 985.781.9190

Global Project Management, LLC Based in Slidell, LA Project consulting, training, and staffing since 1996 PMI Global Registered Education Provider Partner / reseller of: Oracle Hard Dollar View Point

Global Project Management, LLC Consulting: Scheduling & Cost Controls Staffing: Schedulers, PMs, Planners, Estimators, and project support personnel. Training: Oracle Primavera Products: Primavera P6, Contract Manager, Contractor, Risk Analysis, P3, and SureTrak PMP® and CAPM® Certification Project Management and Scheduling Fundamentals Earned Value Management

What is Earned Value Management? Earned Value Management (EVM) is a project management technique for measuring project performance and progress. A systematic approach to the integration and measurement of cost, schedule, and scope on a project.

EVM in History 1960s – DoD adopted it as an objective measure of project progress. 1970s – Continued use in DoD as a means to offset cost and schedule risk in cost reimbursable contracts. 1990s – Policy moved Earned Value into all federal agencies

Earned Value Management Terminology Differences Three data points Actual Costs Planned Value Earned Value Terminology Differences (PMI vs. P6)

Actual Cost (AC) Primavera P6: “Actual Cost” Cumulative Graph: ACWP

Planned Value (PV) Primavera P6: “Planned Value Cost” Budget at Completion X Planned % Complete Graph: BCWS

Earned Value (EV) Primavera P6: “Earned Value Cost” Budget at Completion X % Complete “Completed Work Value” Graph: BCWP Concepts is that activities earn value as work progresses When you complete that piece of work, you have ‘earned’ its value!!!

Budget at Completion (BAC) Primavera P6: “Budgeted Total Cost” PV at end of project Next Slide: So, what do we do with AC, PV, and EV?

Cost Variance Over / Under budget? CV = EV – AC Results?? AC EV Abbreviated CV Over / Under budget? CV = EV – AC Results?? Negative Number Positive Number AC c EV

Cost Performance Index (CPI) CPI = EV / AC Next is EAC….

Estimate at Completion (EAC) The expected total cost of a project when the project work will be completed. AKA: Forecast At Completion EAC = BAC / CPI EV

To Complete Performance Index TCPI is an index showing the efficiency at which the resources on the project should be utilized for the remainder of the project. Remaining Work / Funds Remaining TCPI = (BAC – EV) / (BAC – AC) CPI at .90 and we are 50% complete with the activity, TCPI would be 1.10.

“A fool with a tool is still a fool” Oracle Primavera P6 “A fool with a tool is still a fool” - Grady Booch You need to understand EVM first!

Using P6 For EVM A few considerations… Understand EVM Percent complete type? Customize the layout

Creating the Layout Step 1

Cost Loaded Schedule & Update it! What is the Earned Value for activity A1020? $47,500.00 Step 2

Earned Value Calculations So, what is the TCPI? 112% going forward! Step 3 – Review Output

Thank you! Global Project Management, LLC Trey Miller, MBA, PMP Oracle Primavera P6 EPPM Certified Implementation Specialist Global Project Management, LLC Trey Miller, MBA, PMP 3090 Gause Boulevard, No. 614 Slidell, LA 70461 www.gblpm.com Tel: 985.781.9190