1. 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
Tel:

2. 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

3. 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

4. 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.

5. 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

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

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

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

10. 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!!!

11. 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?

12. 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

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

14. 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

15. 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.

16. “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!

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

18. Creating the Layout
Step 1

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

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

21. 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
Tel: