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Do Duy Khuong Blog

Primavera P6, Microsoft Project Tips & Tricks

How to use Earned Value Management in

PrimaveraP6
Primavera support you to control project performancebyEarned Value Management technique.

I will show you how to use it in Primavera.

We have a simple project to nish casting 10 column.

1 column / day.
100 $ / column

Each activity is assigned resource A.

First we have to create baseline for this project.

Go to Project -> Maintain Baselines. Click on Add and OK to create a baseline.

We will assign this baseline for our project.

Go to Project -> Assign Baselines. Click on Project Baseline and select our baseline. Then click OK.

We can show columns as display in below picture to analyze Earned Value Management.

Right click on Activity Table -> Column. Select columns in Earned Value group.
At the end of day 5 of the project:
How many columnshould have been built? (This is the Planned Value)

The answer is 5 column

(This value is automatically calculated by using Baseline we assign previously. Baseline said that Projects
duration is 10 days, today is 5th day, so 5 column should be completed)

PV = 5 x 100 = 500 $

How many columnhave actually been built? (This is the Earned Value)

We receive report from construction site and it said only 3 columns nish.

(This is value based on the Performance % Complete which isequal to Activity % Complete by default)
EV = 3 x 100 = 300 $

How much did it cost to build those three column? (This is Actual Cost)

We receive report from Accountant departmentand it said 200 $ / column.

(This value is based on Actual Units)

AC = 3 x 200 = 600 $
Then we can show Schedule Variance and Cost Variance.

Schedule Variance SV = EV PV = 300 500 = -200 $

A negative number indicates that the project is behind schedule.

1 day for 1 column for 100 $. So it means we are late 2 days.

Cost Variance CV = EV AC = 300 600 = -300 $

A negative number indicates that the project is over budget.

It means we are currently over budget 300 $.

Then we can show Estimate to Complete and Estimate at Completion

ETC = BAC EV = 1000 300 = 700 $

EAC = ETC + AC = 700 + 600 = 1300 $

According to PMI standard, we should take CPI into account to calculate these 2 values. So we can change the
way Primavera calculate by :

Go to WBS window -> Earned Value tab. Check on PF = 1 / Cost Performance Index

Now

ETC= = = 1400 $

( CPI = = =0.5 )

EAC = ETC + AC = 1400 + 600 = 2000$

However you have to con gure this option at the beginning of project (before update anything). Otherwise it
doesnta ect.

We can also make diagram report

Click on Activity Usage Pro le button.

Right click on the diagram and select Activity Usage Pro le Option
Check in optionas display in below picture

Now you can see the Earned Value diagram. You will use the cost axis on the right side (not the left one).
I also attach a theory diagram of Earned Value Management for your reference.
With Earned Value Management in Primavera we can easily see our project performance and forecast the
total cost at the end of project.

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Related:

How Baseline Dates are calculated in Primavera P6 for Earned Value Management

In "Earned Value"

How to update Baseline in Primavera P6

In "Primavera P6"

How to quickly identify Behind Schedule and Over Budget activity by Indicator UDF in Primavera P6

In "Layout / Report"

Author: Khuong Do
Khuong Do is a Project Planner in Civil, Transportation and Oil & Gas Industry. He has worked as a Primavera Consultant
Specialist since 2006 . He holds a Civil Engineering degree and a Bachelor of Information Management System. Now he is
working in Petronas RAPID project, one of the biggest Re nery and Petrochemical complex, in Pengerang Malaysia.
View all posts by Khuong Do

Khuong Do /

25 thoughts on How to use Earned Value Management in PrimaveraP6

 KH
August 8, 2016 at 7:45 PM

Dear,

Very nice.

Really i always wait for the post. Please post HOW TO PREPARE RECOVERY SCHEDULE
(Actual cost = plan cost) after delay or EOT) in other words bring plan % or cost equal to Earned Value.

Like

doduykhuong
August 9, 2016 at 8:18 AM

Hi,
Thank you for your compliment.
I will keep your suggestion in mind and I might do it in future

Like

Mudassar Malik
August 11, 2016 at 8:17 PM
 Thanku very much sir

Like

Padmanabhan
September 21, 2016 at 2:57 PM

Hi,
Appreciate the update on recovery schedule.

Like

Mudassar Malik
August 11, 2016 at 8:15 PM

Yes i have also some issues about it

Like

Anonymous
August 8, 2016 at 10:17 PM

Simple and well explained. Thanks for sharing.

 Like

N.Balaji Prasada Rao

August 9, 2016 at 8:28 AM

Dear sir,
Excellent.Refreshed with simple example yet covered all the core topics in earned value concepts.Thanks for
sharing.

Like

Mayur
August 9, 2016 at 4:29 PM

Explained a simple way.. Nice article..

Like

Evgeny
August 10, 2016 at 12:25 PM

Thanks for the nice article. I have a question regarding ETC:

What formula is used to calculate the ETC for each unit of time and draw the curve? Is this formula based on
the PV?

 Like

doduykhuong
August 10, 2016 at 1:57 PM

Hi Evgeny,
The value to draw the curve is also the value appear on the activity table (The Estimation At Complete
column).
The formula is based on what we choose in the Earned value tab. Do we consider CPI or not.

Like

Doug
August 10, 2016 at 11:06 PM

Nicely done, Do. Thank you for sharing.

Like

Langston
August 11, 2016 at 4:01 AM

Well done and straight forward example. Excellent layouts.

 Like

Amir Syarifuddin
August 11, 2016 at 9:04 AM

Thank you for your compliment.

I will keep your suggestion in mind and I might do it in future

Like

Anonymous
August 12, 2016 at 7:21 PM

Thanks for sharing

Like

BEDE
August 12, 2016 at 7:23 PM

Thank you for sharing

Like
 M.Nabeel
August 13, 2016 at 12:46 PM

Excellent work

Like

Nelson
August 14, 2016 at 3:12 PM

Simple and clear, well done.

Like

PHH
August 18, 2016 at 2:16 AM

Thank you, IOU a cup of co ee!!

Like

I Ahmed
September 22, 2016 at 2:42 AM
Explained in a simple way and thanks for sharing.

Like

Petrit Kanina
October 18, 2016 at 3:11 AM

Thank you for useful explanation of EV. Everything about EV now are very clear. Can you share this
explanations in pdf, please?

Like

doduykhuong
October 18, 2016 at 8:54 AM

Hi.
In the Share this section, click on More button and you can see the Print button. Click on Print you can
have the pdf version.

Like

Anonymous
April 27, 2017 at 5:15 AM
Hi,
Great work Keep it up.
Please share Primavera P6 Analytics installation steps.
Many thanks
Imran

Like

Arita
May 24, 2017 at 11:42 PM

Hi How to upload Cost in P6? I want to upload cost for Clients per tender value and for progress billing per
month based on progress, not actual cost from Resources

Like

Rolando B. Digamon
July 5, 2017 at 2:21 PM

very straight forward. Thanks

Like

Mudassar Malik
July 26, 2017 at 7:42 PM

very simple method thank u

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