1. EARNED VALUE MANAGEMENT & ORACLE PRIMAVERA P6 TREY MILLER, MBA, PMP ORACLE PRIMAVERA P6 EPPM CERTIFIED IMPLEMENTATION SPECIALIST GLOBAL PROJECT MANAGEMENT, LLC 3090 GAUSE BOULEVARD, NO. 614 SLIDELL, LA 70461 WWW.GBLPM.COM TEL: 985.781.9190 0

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 1

3. GLOBAL PROJECT MANAGEMENT, LLC  Consulting:  Consulting: Scheduling & Cost Controls  Staffing:  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 2

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. 3

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 4

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7. EARNED VALUE MANAGEMENT  Terminology Differences  Three data points  Actual Costs  Planned Value  Earned Value 6

8. ACTUAL COST (AC)  Primavera P6: “Actual Cost”  Cumulative  Graph: ACWP 7

9. PLANNED VALUE (PV)  Primavera P6: “Planned Value Cost”  Budget at Completion X Planned % Complete  Graph: BCWS 8

10. EARNED VALUE (EV) 9  Primavera P6: “Earned Value Cost”  Budget at Completion X % Complete  “Completed Work Value”  Graph: BCWP

11. BUDGET AT COMPLETION (BAC)  Primavera P6: “Budgeted Total Cost”  PV at end of project 10

12. COST VARIANCE ABBREVIATED CV Over / Under budget? CV = EV – AC Results?? Negative Number Positive Number 11 AC c EV

13. COST PERFORMANCE INDEX (CPI) CPI = EV / AC 12

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 13 EV

15. TO COMPLETE PERFORMANCE INDEX 14  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)

16. ORACLE PRIMAVERA P6 15 - Grady Booch

17. USING P6 FOR EVM 16 A few considerations…  Understand EVM  Percent complete type?  Customize the layout

18. CREATING THE LAYOUT 17

19. COST LOADED SCHEDULE & UPDATE IT! What is the Earned Value for activity A1020? 18

20. EARNED VALUE CALCULATIONS So, what is the TCPI? 19

21. THANK YOU! TREY MILLER, MBA, PMP ORACLE PRIMAVERA P6 EPPM CERTIFIED IMPLEMENTATION SPECIALIST GLOBAL PROJECT MANAGEMENT, LLC 3090 GAUSE BOULEVARD, NO. 614 SLIDELL, LA 70461 WWW.GBLPM.COM TEL: 985.781.9190 20