hello everyone , welcome back to my channel.today
in this video we will see what is earned value analysis and how do we do that in Oracle Primavera
P6. so first of all let's know few things about Earned Value Analysis. so earned value analysis or EVA is nothing
but analyzing the project performance about the cost and time for a particular project.so
when i say project performance about cost , it means we have already planned to spend
some money for our project. it doesn't have to be the same when we finish
the project. so we might have spent more money or less
money. so that's what the project performance about
cost and when it comes to time...project performance about time it means, it is about how much
time we are taking whether more time or less time than what we had planned. we might have planned the project to finish
within 50 days but we may take 60 days which means the project got delayed. at the same time we may take 40 days which
means we have finished the project earlier. so that is what project performance about
time or schedule. so this is what basically earned value means. so we will see in the software using a simple
example. so i will open a simple problem...to make you
understand what is EVA. so this is our problem.let me explain you what it is.just look at it.so
we basically have an activity. an activity A which is of 10 days. we have planned to spend 1000$ for this project. we have planned to spend 1000$ for this project ,each day 100$ , for 10 days it will be 1000$ . get it right?! we have an activity of 10 days and we have planned to spend 1000$. each day 100$ and when you look at it you can easily understand that each day we are going to finish 10% of work. so each day 10% of work if you do...at the end of 10th day we will be finishing 100% of work. right?! but according to the field report that i got during this project completion at the end of 7th day i have finished only 50% of work. got it?! at the end of 7th day i actually should have finished 70% of work.right ?! our plan was to finish 10% of work each day. so at the end of 7th day it should have been 70% . but actually when we were on the project we have finished only 50% of work at the end of 7th day. and we have spent 900$ out of this 1000$.how much we should actually taken from that? i mean how much we should have spent?! we should have 700$ right? each day 10% of work and each day 100$ we need to take/spend according to our plan. but when we started the project due to some reason we were able to finish only 50% of work at the end of 7th day which should have been 70% and we have spent 900$ instead of 700$ . so this is the problem.so now let's get the same scenario in the software. so i will go to the software. under the mechanical EPS i will create a new project. click on next. some random project id and project name click on next. project planned start date going to be 30 march 9:00 AM . select next. next , next ,finish so we have our project here. let's assign a calendar. go to default.. go to calendar. select a calnder now open the project. now we are on the activities window . let's add an activity A. in case if you see any baseline bars like this , just right click here go to bars. switch it off. because what you see there is not the proper baseline....we will have to create it later. so let's comeback to the topic. so we have added an activity A . let's change it's duration to 10 days. now let's go to enterprise -> resource. i will add a new resource , naming PM for a project manager. and let's assign the same calendar as that of the project. it is same here 5 days 8 hours. i used 5d 8h for the project so for the resource also i am going with the same calendar. so now come to the units and prices and change the standard rate to 100$ per day. i told you in the problem...per day we are spending 100$ .in the software it is dollar. just imagine that it is rupees. just imagine it is rupees. so 100 $ per day. come to the activities window. now let's assign the resource to this activity. project manager. so for the activity A i have assigned project manager. per day 1 so for 10 days 10 units. so for 10 days see BAC is 1000$ i wanted BAC to be 1000$ and i have it here BAC for 10 days 1000$ we are going to spend. so this is what we are planning. OK?! now, now the next thing is..you need to assign baseline. so go to project > maintain baseline. click on add , save a copy. OK . change it's name to whatever you want. here initial planning baseline. save and close. now again go to project. assign baseline. now in the project baseline select the newly created baseline here and even in the primary select the baseline that we created just now.click on OK. now right click here. go to bars. now switch on the primary baseline. apply , OK. so this is the way of creating baseline. so as i told you already, if at all you see the baseline before you start a project , just go to bars and uncheck this. we have to check this only after these two procedures. so now let's got to the updation part. i want to have this scenario. at the end of 7th day, i have finished only 50% of work. by spending 900$ . which should have been 70% by spending 700$ as per the plan. this is actually what is happening and this is what we had planned. got it?! so this is past and this is the present. OK now let's go to the software. so go , select the ....or highlight the activity. now go to status. so you can see here in the status. the activity is starting 30 march 9:00 AM and it is getting finished on 10th 6:00 PM. since it is a 10 day activity, it is taking 10 days here according to our plan. but the scenario here is , we have finished only 50 % by spending 900 $ . so let's see how do we get that scenario. so go to the activity , make it started. we have finished only 50% of work at the end of 7th day. so when it will be?! starting from march 30 when will be the 7th day ...that you need to enter in the schedule. here. so 30 ..31..1..2..3.. 5 days finished. so if it was as per the plan 3 we will be selecting because per day 10% . do for 50% we need to consider 5 days right?! but in the problem, we need to get at the end of 7th day we are finishing 50% . so 2 days delay we need to consider. so 4th you can't add 5th you can't add because they are non working days. now come to 6th and 7th...at the end of 7th day we are finishing 50% of work. the activity is starting on 30 march and it is getting finished 50% on the 7th day so select 7 here. and make it 6:00 PM . select schedule. so now, what you need to do is, labour cost you need to enter. we have spent 900$ for the 50% of work. so just enter 900$ here. it is not taking because there is a small bug in the software. just close the software and open it again. it will be OK. may be in the latest update , it might be OK now. the bug might have been removed. so come to the actual here and enter 900$. so can you see here?! it got updated. actual total cost we have already spent 900$ out of the 1000$ that we planned to spend. and look at the schedule and activity % complete. we should have finished 70% at this point. right?! at this point we should have finished 70% of work but we were able to finish only 50% of work by spending 900$ . now we have the same scenario here. we should have 70% work but we have finished only . 1000$ we planned to spend for the entire project but we have spent 900$ already out of this 1000$. so earned value cost is nothing but , it says money you should have spent for the date that you see here. earned value cost is nothing but for the activity % complete how much money you should have spent according to your project plan. so on this day we have finished only 50% of work. so for the 50% of work, how much money we should have spent?! we planned to spend 100$ per day. so for 50% of work we are going to spend 500$. so that is what this earned value here is. got it?! it comes automatically, for the 50% of work we should have actually spent 500$. so this is the basic thing about earned value cost. but we have some more things to know about earned value which i will show you in the next video. that is about forecasting and tracking. so first comes the tracking then forecasting. so we will see that in the next video. i will be continuing with the same problem. please go check it out. if you have any doubts, please comment below and if you want to get daily updates on my YouTube channel, please subscribe to my channel. THANK YOU :)
