Hellow guys, Welcome to my website, and you are watching What is Earned Value Management - EVM I EVM Analysis in Primavera P6 I Primavera P6 Tutorial I. and this vIdeo is uploaded by Project Management Academy at 2022-12-07T13:13:33-08:00. We are pramote this video only for entertainment and educational perpose only. So, I hop you like our website.
| Name | What is Earned Value Management - EVM I EVM Analysis in Primavera P6 I Primavera P6 Tutorial I |
| Video Uploader | Video From Project Management Academy |
| Upload Date | This Video Uploaded At 07-12-2022 21:13:33 |
| Video Discription | In this video, I will show you What is Earned Value Management (EVM) and how to use Earned Value Management in Primavera P6. Earned Value Management is a hot topic in the world of project management. Have you ever wondered how you could apply Earned Value Management in the Primavera P6 scheduling tool? Earned Value Management (EVM) is a technique to measure performance and progress for your project. The basic premise of Earned Value is that the cost is relative to the work, and an assessment can be done at any given time to see if the work or costs are not relative. Earned Value requires 3 basic elements for its calculations: 1. Planned value – (PV) – How much work will be done Planned Value (PV) is the budgeted cost for the work scheduled to be done. This is the portion of the project budget planned to be spent at any given point in time. This is also known as the budgeted cost of work scheduled (BCWS). 2. Earned Value – (EV) – How much work was done Earned Value (EV) is a monetary value for the progress of work completed. Put simply, this is the amount of money that should have been spent for the amount of work that has been completed. 3. Actual Costs – (AC) - How much was spent on work done Actual Costs (AC) is simply the money spent for the work accomplished. (Including Manpower, Material, Machinery and Expenses Actual Cost) How to Calculate Performance Percent Complete? There are 5 options for selecting Performance Percent Complete in Primavera P6. The selection is made at the WBS level and pertains to all activities within the WBS. These techniques are selected and calculated as follows: How many Footings should have been built? (The answer to this question determines the Planned Value (PV)) The plan was to cast one Footing per day. Therefore, at the end of day 8, eight footings should have been Built. (This value is automatically calculated by using the Baseline you assigned previously. The Baseline implies that Project’s duration is 12 days. Today is the 8th day 5:00 PM (shift closed), so 8 footings should have been completed) Considering the cost of $100 per footing, Planned Value (PV) is: PV = 8 x $100 = $800 (so planned value is $800) How many footings have actually been built? (The answer to this question determines the Earned Value (EV)) Let’s suppose we have received a report from the construction site which stated that only 6 footings are completed till date. (This value is based on the actual “Performance % Complete” which is not necessarily equal to “Activity % Complete”) EV = 6 x $100 = $600 (so the Earned Value is $600) How much did it cost to build those six footings? (The answer to this question determines the Actual Cost (AC)) You received a report from the Accounting department which stated $50/ footing is spent. (This value is based on Actual Units) AC = 6 x $50 = $300 (so actual cost is $300) You can add EVM metrics such as below Schedule Variance Cost Variance Cost Performance Index Schedule Performance Index Estimate to Complete Estimate at Completion Variance at Completion as separate columns in the activity table. Let me explain you over these metrics quickly: Planned Value (PV)= $800 Earned Value (EV) = $600 Actual Cost (AC) = $300 Schedule Variance (SV) = EV – PV = $600 – $800 = ($200) A negative schedule variance indicates that the project is behind the schedule. 1-day delay for 1 footing costs $100. Therefore, -$200 SV means that we are 2 days behind. SVI = SV/PV = 200/800 = 0.25 (Schedule variance Index ) SPI = EV/PV = 600/800 = 0.75 ( Schedule Performance Index ) Cost Variance (CV) = EV – AC = $600 – $300 = +$300 A positive cost variance indicates that the project is under budget. CV of +$300 means that we are currently under budget for $300. CVI = AC/EV = 300/600 = 0.5 (Cost variance Index ) CPI = EV/AC = 600/300 = 2 (Cost Performance Index ) #primavera #EVM #p6 Mudassar Malik Trainer & consultant |
| Category | Education |
| Tags | EVM | EVM analysis | What is EVM | What is earned value management | earned value analysis | earned value management analysis | earned value management | evm project management | evm calculation | earned value management in PMP | tutorial | evm tutorial | evm in primavera p6 | primavera tutorial | evm basic | evm complete analysis | online evm training | primavera training | primavera in pakistan |
