Resources For Webinar Attendees - Cost & Schedule Integration

Resources for Masterclass
Attendees
Top 5 Challenges in EVM, Cost & Schedule
Integration in Primavera P6
And How to Overcome Them
Resources for Masterclass Attendees
Greetings,
It was great having you in the masterclass today. Thanks for taking time from your busy
schedule and attending the short training we organized for you.
As promised, I am providing you with the following material:
1. A PDF copy of the webinar slides on “Top 5 Challenges in EVM, Cost & Schedule
Integration in Primavera P6 and How to Overcome Them”
2. Special invitation to join the EVM in Primavera P6 online training at an exclusive
webinar attendee discount
3. 1.5 Professional Development Hours toward your professional accreditations.
We are doing our best to keep holding monthly masterclasses with industry thought leaders
and experts in Project Controls.
I look forward to seeing you in the next webcast with another interesting topic in Project
Controls.
To your success,
Shohreh Ghorbani
Founder & Director, Project Control Academy
www.projectcontrolacademy.com
Support@ProjectControlAcademy.com
Earned Value Management Implementation in

Primavera P6 Training
As a bonus to webinar attendees, we offered an exclusive discount to join the Earned Value
Management (EVM) Implementation in Primavera P6 5-week online training.
In this in-depth practical course, you will learn the

step-by-step process on how to implement a
successful Earned Value Management process inside
Primavera P6 and maintain high degrees of integrity
when reporting both CPM and EVM.
The combination of software demonstrations,

“hands-on” EVM exercises, and practical, real-world
P6 projects and exercises will help you build up the
knowledge and skills you need in the utilization of
Earned Value in Primavera P6.
Here is the link to join the course at a discounted

price;
https://projectcontroltraining.com/EVM-P6-Webcast/
Note: This special offer is only available to webinar attendees and will expire within a week.
It is not extendable after the expiry.
Claiming Professional Development Hours

Claim 1.5 PMI PDUs
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Academy, is enough).
6. Enter 1-hour technical, and 0.25-hour Strategic, 0.25-hour Leadership, and then hit
submit.
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Claim 1.5 Professional Development Hours
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considering thousands of people who attend in our webcasts. In case you are
audited, we will be happy to provide you with the proof of your attendance.
Earned Value Management

Implementation in Primavera P6 Training
As a bonus to webinar attendees, we offered an exclusive discount to join the Earned Value
Management (EVM) Implementation in Primavera P6 5-week online training.
In this in-depth practical course, you will learn the

step-by-step process on how to implement a
successful Earned Value Management process inside
Primavera P6 and maintain high degrees of integrity
when reporting both CPM and EVM.
The combination of software demonstrations,

“hands-on” EVM exercises, and practical, real-world
P6 projects and exercises will help you build up the
knowledge and skills you need in the utilization of
Earned Value in Primavera P6.
Here is the link to join the course at a discounted

price;
https://projectcontroltraining.com/EVM-P6-Webcast/
Note: This special offer is only available to webinar attendees and will expire within a
week. It is not extendable after the expiry.
PROJECT CONTROL ACADEMY
EVM, COST, & SCHEDULE INTEGRATION
PRESENTED BY: Top 5 Challenges in EVM, Cost &

Cesar Ramos Schedule Integration in Primavera P6
Advanced Planning Analytics SME
And How to Overcome Them
Copy Right © Project Control Academy. All rights reserved

EVM, COST, & SCHEDULE INTEGRATION The Goal of This Masterclass
To equip you with a proven strategy to integrate the

EVM/ Cost and schedule inside one platform.
To address the community concerns about the
challenges in creating the integration between the
EVM, cost, and schedule.
To show you what you need to have in place to
make the EVM in Primavera P6 work for you.
2 Copy Right © Project Control Academy. All rights reserved

INTRODUCTIONS

EVM, COST, & SCHEDULE INTEGRATION Shohreh Ghorbani
Founder & Director, Project Control Academy
Creator of the following training programs:
¤ Applied Project Controls Training

¤ Essentials of Earned Value Management
¤ Mastering EVM for Project Success
¤ Project Scheduling Blueprint
¤ Project Control Career Success Roadmap
Served tens of thousands of professionals

worldwide to take their project controls skills
to the next level.

EVM, COST, & SCHEDULE INTEGRATION Cesar Ramos
An Oracle Gold Partner certified to train
professionals in Primavera P6, Risk analysis, EVM
Analytics, and more.
Has 20+ years of experience in Oil & Gas EPC
Project Controls, including planning/ scheduling,
risk analysis, cost controls, earned value
management, and cost estimating.
Has dedicated a large part of his career to pursuing
the expert level knowledge of advanced Planning/
Scheduling methodologies and the future of
Earned Value Management.

WHAT TO EXPECT IN
THE NEXT 1.5 HOURS….

EVM, COST, & SCHEDULE INTEGRATION Agenda
Why integrating the cost/ Earned Value Management (EVM) in the
schedule is important.
What the top 5 Challenges in EVM, Cost & Schedule Integration in P6
are.
How to avoid the common mistakes that most people make in
integrating cost/ EVM in their scheduling software.
What you need to have in place to make the EVM in Primavera P6
work for you.
Recommendations for further education

WHY COST/ EVM & SCHEDULE INTEGRATION

IS ESSENTIAL

Why Cost & Schedule Integration?
Considering many concerns raised on "P6 doesn't track costs well. It’s
good only for scheduling. We can use other capable tools to perform
EVM Analysis.“
The truth is P6 has the capability of tracking cost, schedule &
expenses. It is being deployed only in companies where the project
controls teams seem to be very innovative.
There are numerous reasons why cost & schedule should be
integrated but the reality is, the lack of vision or ingenuity acts as a
roadblock.

Why Cost & Schedule Integration in Primavera P6?
Why are we are offering the integration inside Primavera P6 and not
external tools?
Integration means information is dynamic. Dynamic information
means speed of change. The rate of knowing the impact from
change either from cost impacting schedule, or scheduling impacting
cost is extremely valuable.
“We need to learn how to FAIL FAST. So we can see the problems and then
incorporate mitigation or corrective action plans quickly.” - Cesar Ramos

Why Cost & Schedule Integration in Primavera P6?
Integrated cost/schedule provide advantages that include but not

limited to: Improved chance of completing projects on-time and on-
budget, the plan is always measurable, and dynamic data removes
subjectivity of reporting.
The future of project controls is embracing large volumes of data in
order to manage and control the work.
“Data Management is the 4th Industrial Revolution.”- Cesar Ramos

THE TOP 5 CHALLENGES IN

EVM/ COST & SCHEDULE INTEGRATION
AS ADDRESSED BY THE PROJECT CONTROLS COMMUNITY

COMMUNITY OPINION ON EVM IN P6 INTEGRATION
We are listening and watching all comments….

We opened communication on social media to see the reaction of EVM in P6.
There was an abundance of comments and opinions and we appreciate all of
them. At a glance about 60% of the comments are opposed or responded
against EVM in P6.
So we collected as many comments as we could to consolidate and
categorize the opinions. Then as a power user myself in various systems
including EVM in P6, I listed them as topics for this discussion today. I will try
to answer a few concerns.
NOTE: I am not answering these questions to convince you or change your
mind at all. My objective today is to provide clarification and demonstrate
methods that I have used to deploy EVM in P6 successfully.
MYTH #1
COST ALIGNMENT WITH THE SCHEDULE IS VERY DIFFICULT

Myth #1 – “Cost Alignment is Impossible”
“Cost, EVM (progress) and schedule The granularity:

need to be aligned but the lowest level
of detail is different for each of them.
Typically progress is captured at very Level 3 Granularity is the industries first
detailed level, P6 schedule are medium known level of detail associated with
detail and cost items are high level. If CPM.
you try and integrate all of it in P6 then Precise detail is required in order to keep
you will be challenged with breaking CPM & EVM in a harmonic balance.
down tasks, associated budgets etc. I
EVM needs details lower than Level 3,
found this exercise not worth however
the integration can be achieved by however, that information can “roll up”.
creating some mapping tables, activity Capturing actuals does not need to go to
codes etc.” the lower levels. It should be captured at
the discipline level. This aligns well with
Actual quote by a Project Controls Professional
the schedule details.
Progress & Financial Payment Misalignment
“If you are communicating The Milestone & Rules of Credit:

project progress in that way
however progress of a working In most cases one or more milestones
schedule can be very different within the rules of credit align perfectly
with the payment milestones.
to the financial progress etc
Payment milestones require non-
and so many contracts are subjective point in achievement in order
aligned to payment for the to conform payment.
contract not the work done or So in most common scenarios EVM &
just the money spent.” financial payments typically align.

HOW TO OVERCOME CHALLENGE #1?

COST ALIGNMENT STARTS WITH
BREAKDOWN STRUCTURES

#1 - Breakdown Structures Are 4 Dimensional
The most misunderstood concept of breakdown structures is the

thought that a WBS is a hierarchal structures, which means it would be
a 2 dimensional concept.
The reality is it is a lot more complex.
¤ WBS represents geography or component
¤ DBS represents Discipline
¤ PBS [Phase] represents time
¤ CBS [Cost] represent coding for cost
When compiled together, it takes the

shape of a 3D Cube.

EVM, COST, & SCHEDULE INTEGRATION #1 - Breakdown Structures- OBS & CBS

#1 - BREAKDOWN STRUCTURES REVIEW
Schedules are based upon representing the work as understood

by the project documents and definitions. This includes the
work breakdown structures.
If a person reviewing the schedule has not reviewed and
understood the work breakdown structures, he/she can not
successfully navigate through schedule software and provide the
client or management intelligent results in any review analysis
provided.

#1 - BREAKDOWN STRUCTURES REVIEW
Once a breakdown structure is understood, the reviewer will

understand that the project breakdown can be represented in
two primary methods and either method is completely
acceptable if it represents the project strategy:
¤ P6 Code Structure
¡ P6 allows for multiple code structures including but not limited to Global Codes,
EPS Codes, and Project Codes.
¤ WBS
¡ Use of the P6 WBS has become more popular for use due to ease functionality.

MYTH #2
HARD TO INTEGRATE FINANCIAL DATA IN P6

Myth #2 – “Won’t integrate with SAP”
“Most company uses SAP for The ERP Mapping:

costing and P6 is Oracle based,
integration of SAP & P6 is bit SAP is an ERP system.
difficult. It can be done if In our industry almost every company
scheduling is done in SAP PS uses a ERP system of one kind.
module ( but forecasting dates If the users apply the intelligence code
should be derived from P6/MS values to map to any ERP system, the
project, SAP PS do not give good data should work as intended.
result as compared to P6/ MS When deploying these types of initiative
Project)” it requires a lot of forward thinking prior
to development as with all databases.

HOW TO OVERCOME CHALLENGE # 2
EARLY DATA MAPPING

P6 DATA MAPPING
APA P6 Code Structure: Data

Mapping requires some forethought
early on to establish the necessary
code structures that align with the
ERP systems as well as the company
and project breakdown structures
which include but not limited to: PBS,
CBS, WBS, DBS, & OBS.
Key Comments
Primavera has an extensive amount of
code structures to allow for the use of
intelligently identifying the tasks.

HOW TO OVERCOME CHALLENGE # 2
ENTER AND TRACK ACTUALS USING

STORED PERIOD PERFORMANCE

Stored Period Performance
Stored Period Performance
Another Myth is that P6 can not capture Actuals. Again, wrong………

Using the store period performance feature, you can track actual units and costs to
date. In lemans terms, it allows you to capture Periodic Performance.
Storing period performance records actuals for the selected financial period along
with earned value and planned value, so you can track previous periods and
compare current and future trends.

PROJECT CONTROL ACADEMY Steps to Enter Actuals Using Stored Period
Performance
Enter Actual Hours

Capturing Actuals is a rather
simple process.
Enter Actual Expended Hours or
Units. Check layout called “ APA –
Actual Hours Input”
Enter Cumulative Actuals within

the activity OR if a WBS
Summary for Actuals is used.
[another highly important function
to keep accurate]

PROJECT CONTROL ACADEMY Steps to Enter Actuals Using Stored Period
Performance
Store Period Performance
Once you entered and captured

your Actuals, then you can
compare.
Stored Period Performance allows
for the capture of Periodic Gains.

MYTH #3
“IMPOSSIBLE FOR DESIGN PROJECTS”

Myth #3 – “Impossible for Design”
“Most of the schedules I build are The Engineering progress:

design schedules and its close to
The most prevalent examples that exist
impossible to enter accurate
is the ability to perform EVM in the
percent complete numbers for
engineering environment. This has
design progress unless you have
been proven and done.
someone counting every single
Procurement phases also have clear
drawing that's completed and
deliverables and established rules of
coming up with a weighted
credit with lend itself well for EVM.
average but that's not the case on
Construction phases also have clear
any of my projects.”
scopes of work and rules of credit.
Actual quote by a Project Controls Professional All these phases lend itself well for an
EVM initiative especially in P6.
#3 - P6 DESIGN SAMPLE
APA Design Sample: Sample shown

to the right demonstrates a live
example of utilizing EVM in an
Engineering environment within
Primavera p6. The engineering
schedule consists of establishing the
deliverables list and mapping the
document numbers back to the
document databases for tracking.
Key Comments
The key is to understand engineering
scheduling & then provide the degree
of granularity to perform properly.

MYTH #4
“PROJECT MANAGERS DON’T WANT TO LOOK AT SCHEDULES

MYTH #4 – “PMs Don’t want to look at Schedules”
“I also find that PMs hate

The reporting method:
looking at P6 schedules, they Its well known that PM’s need to be able
are too long and complicated to take large amounts of information and
to understand. “ make quick decisions.
Therefore as a professional, we provide
Actual quote by a Project Controls Professional executive reports in the form of but not
limited to: summary reports, dashboards,
score cards, quick chart & the list goes on.
Key Comments However as most reporting requirements,
The integrity of the schedule is we also provide the detail reports in case
predicated upon developing the
details providing summary details.
they ever need to dive into the details.

HOW TO OVERCOME CHALLENGE # 4?
DEVELOP SUMMARY REPORTS

#4 - P6 DASHBOARD SAMPLE
APA Sample: The Project Manager

needs to make decisions provided by
the project controls professionals
which come from detailed
information. However, the PM does
not need to comb through all that
data. THAT’S OUR JOB. Not all
reporting needs to be detailed which
is why we provide dashboard project
health check reports.
Key Comments
Dashboarding provides the PM with
the type of criteria that can be
summarized or rolled up.

#4 - P6 SAMPLE – NOT ALL DATA HAS TO BE FLASHY
Key Comments
This report has the most valuable
information for a project in one single
snapshot for Earned Value.

MYTH # 5
EVM INTEGRATION IN THE SCHEDULE IS ALL ABOUT RESOURCE LOADING,
AND ENTERING PHYSICAL % COMPLETE

Challenge #5 – “EVM COMPETENCE”
“Planning/Scheduling team lack of EVM Competence:

competency in creating the
The integrity of the data can solely
integration. Many schedulers I come
across are somewhere between ok come from a versed or competent EVM
and totally incompetent. The ones professional
with PSP that are members of AACE Competence is a capable person that
are great but those are a small applies the practice consistently and
percentage of the total number of accurately
people who call themselves P6 CAN NOT be the only tool from
schedulers. I’ve seen many people which education or experience came
who can enter data into P6 and that’s
from…. In other words if you learned
all they can do call themselves
schedulers.” EVM from only using P6, then you as a
professional need to reevaluate your
Actual quote by a Project Controls Professional knowledge
Challenge #5 - Competent
What is Competence? in EVM?

Definition of Competent is:
having the necessary ability, knowledge, or skill to do something
successfully.
¤ (of a person) efficient and capable.
¤ acceptable and satisfactory, though not outstanding.

Challenge #5 - Competence in EVM
Competence in EVM
It is crucial that any individual intending to apply EVM in any software must
be knowledgeable and experienced enough to recognize how EVM is
developed as well as maintained using the intended algorithms.
If you as a professional have only used EVM as a result of functionality within
P6 and are unaware of EVM’s intent, could have detrimental results if your
reporting has failed.
Please take considerable action to gain EVM knowledge outside of the
assistance from a software.
OK WHERE DO I FIND THE KNOWLEDGE?

HOW TO OVERCOME CHALLENGE # 5?

GAIN EVM KNOWLEDGE OUTSIDE OF THE ASSISTANCE
FROM A SOFTWARE

EVM Industry Best Practices

WHAT YOU NEED TO HAVE IN PLACE

TO MAKE THE EVM INTEGRATION IN PRIMAVERA P6 WORK FOR YOU

6 STRATEGIES TO APPLY FOR EFFECTIVE INTEGRATION
Review and understand the breakdown structures and

structure the schedule accordingly either by WBS or P6
Coding Structures. This better aligns with cost &
expenses.
Map the data early on to establish the necessary code
structures that align with the ERP systems.
Determine the schedule granularity for proper
integration.

6 STRATEGIES TO APPLY FOR EFFECTIVE INTEGRATION
Perform a schedule health check analysis, and adjust P6

settings for EVM. When settings are not understood,
they become the initial start of where mistakes are made.
Develop summary or dashboard data out of the
schedule for better absorption of information from the
PM’s.
Build up your EVM competency with knowledge.

The EVM results are

extremely sensitive to
disruptions in settings,
logic, user inputs, and
logic sensitivity impacts.
It does not take much
misalignments in order
to induce havoc on the
reporting.

Special Offer for
Webcast Attendees Only
ProjectControlTraining.Com/
EVM-P6-Webcast
Copy Right © Project Control Academy. All rights reserved

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Resources for Masterclass

As promised, I am providing you with the following material:

Earned Value Management Implementation in

In this in-depth practical course, you will learn the

The combination of software demonstrations,

Here is the link to join the course at a discounted

Claiming Professional Development Hours

Claim 0.15 CEUs

Claim 1.5 Professional Development Hours

Please note that we won’t be able to issue a certificate of attendance

Earned Value Management

In this in-depth practical course, you will learn the

The combination of software demonstrations,

Here is the link to join the course at a discounted

PRESENTED BY: Top 5 Challenges in EVM, Cost &

Copy Right © Project Control Academy. All rights reserved

To equip you with a proven strategy to integrate the

2 Copy Right © Project Control Academy. All rights reserved

4 Copy Right © Project Control Academy. All rights reserved

¤ Applied Project Controls Training

Served tens of thousands of professionals

5 Copy Right © Project Control Academy. All rights reserved

6 Copy Right © Project Control Academy. All rights reserved

7 Copy Right © Project Control Academy. All rights reserved

8 Copy Right © Project Control Academy. All rights reserved

WHY COST/ EVM & SCHEDULE INTEGRATION

9 Copy Right © Project Control Academy. All rights reserved

10 Copy Right © Project Control Academy. All rights reserved

11 Copy Right © Project Control Academy. All rights reserved

Integrated cost/schedule provide advantages that include but not

“Data Management is the 4th Industrial Revolution.”- Cesar Ramos

12 Copy Right © Project Control Academy. All rights reserved

THE TOP 5 CHALLENGES IN

13 Copy Right © Project Control Academy. All rights reserved

We are listening and watching all comments….

15 Copy Right © Project Control Academy. All rights reserved

“Cost, EVM (progress) and schedule The granularity:

“If you are communicating The Milestone & Rules of Credit:

Actual quote by a Project Controls Professional

17 Copy Right © Project Control Academy. All rights reserved

HOW TO OVERCOME CHALLENGE #1?

18 Copy Right © Project Control Academy. All rights reserved

The most misunderstood concept of breakdown structures is the

When compiled together, it takes the

19 Copy Right © Project Control Academy. All rights reserved

20 Copy Right © Project Control Academy. All rights reserved

Schedules are based upon representing the work as understood

21 Copy Right © Project Control Academy. All rights reserved

Once a breakdown structure is understood, the reviewer will

22 Copy Right © Project Control Academy. All rights reserved

23 Copy Right © Project Control Academy. All rights reserved

“Most company uses SAP for The ERP Mapping:

24 Copy Right © Project Control Academy. All rights reserved

HOW TO OVERCOME CHALLENGE # 2

EARLY DATA MAPPING

25 Copy Right © Project Control Academy. All rights reserved

APA P6 Code Structure: Data

26 Copy Right © Project Control Academy. All rights reserved

HOW TO OVERCOME CHALLENGE # 2

ENTER AND TRACK ACTUALS USING

27 Copy Right © Project Control Academy. All rights reserved

Stored Period Performance

Another Myth is that P6 can not capture Actuals. Again, wrong………