EARNED VALUE ANALYSIS - TRACKING AND FORECASTING IN ORACLE PRIMAVERA P6

hello everyone welcome back to my channel today in this video I'm going to take you through some advanced topics on earned value analysis so in the last video we have seen what is earned value analysis using a simple problem I'll be explaining the advanced topics about earned value analysis with the same problem so let us see first those advanced topics the Earned value analysis has two stages that is tracking the first one and the forecasting is the second one tracking means it says the present performance about the cost and time for a project. about the present performance okay so what is forecasting.. so considering the present performance values we are going to forecast like, how these values will effect the project that is what forecasting is. so when I say it with definition forecasting is about how the present performance will effect the future performance about the cost and time. so let us see this in the software for the better understanding. so I'll close this.i will go to the software. so we have seen in the last problem what was this earned value cost right? so now we have to go to check what is the tracking value and the what is the forecasting value.. so let us now go to enterprise - tracking got it? so you will be taken to this window where you'll how to make few changes so as you can see I have already set the columns that I want. so if you're not able to see just right click go to columns - customize make sure you are having these many options : budget at completion(BAC) , actual cost(AC) , earned value cost(EVC) , planned value(PV) schedule Performance Index(SPI) ,cost Performance Index(CPI) , estimate to complete (ETC) estimate at complete (EAC) , variance at complete (VAC) so these are the columns that you want these values you need. I'll tell you what are they. so in the last problem, I'll open the problem, so this is the problem that I solved to explain you what is earned value analysis so let us go with the same problem so here when we came to the tracking I went to enterprise then tracking when I went to that I can see BAC these values will automatically come so BAC means this BAC budget at completion, how much we plan to spend for this particular project then we have actual cost that is this one how much we spent on that day at the end of seventh day we finished only 50% of work at the same time we spent 900 $ out of 1000$ so this 900$ is this one actual cost earned value cost is, see for the 50% of work as per the plan we should have spent 100 $ per day in the same way for 5 days. for 5 days 500 $ why because each day we'll be finishing 10% of work for 50% of work we need to have 5 days of work so each day we are spending 100$ so for 5 days 500 $ that is the earned value cost. planned value cost means see on this day at the end of 7th day we should have finished 70% of work should have finished 70% of work. each day we are going to finish 10% of work and we are spending 100$ so for 70% of work will be spending 700$ as per the plan so this was the planned cost got it? now we have schedule performance index(SPI) and cost performance index(CPI) schedule performance index and cost performance index so schedule performance index means we have 0.71 value right so if the value is lesser than one we are behind schedule it means we are behind schedule the first is going to get delayed it means if the value of schedule performance index is lesser than 1 it means the project is going to delay if it was more than 1 means we are finishing the project earlier than the project finish date got it? the cost performance index means here we have 0.56 this is all the same way if we have value lesser than 1 that means we are going to spend more money we are going to spend more money. you can see in the problem right at the end of 7th day we have finished only 50% of work and we have already spent 900$ so looking at the problem itself we can understand that the... the project is going to get delayed and we are going to spend more money so understood right? these two values so starting from here BAC , AC , EVC , PVC SPI CPI these many.. these many values come under tracking so when you say when you say what is the present performance of the project you have to show these values from here to here starting from here to here are the values okay starting from here to here the values related to tracking then these many estimate estimate when we look at estimate we can understand that is it is something about forecasting estimate right estimate forecasting see the relation estimate to complete(ETC) this one estimate at complete(EAC) ,variance and complete(VAC) in the short form we call them ETC , EAC and VAC so what what do they mean so I'll tell you estimate to complete means so estimate to complete means how much more money we need to complete this project so that is what this estimate to complete means how much extra money we need from now on from here from here next how much money we need money we need is the estimate to complete(ETC) so estimate at complete(EAC) is 1400$ right that is nothing but 500$ plus this 900$ so total how much you are going to spend total not from here but from the beginning from the beginning up to the end of the project how much you are going to spend is the estimate at complete which is nothing but 900$ plus 500$. 500$ Plus this 900$ but got it? next comes the variance at complete variance at completion(VAC) so this is 400$ right? so this is nothing but how much money extra you need.. how much extra money you need to complete this project from from this point from this point how much extra money you need you have just 100$ rupees balance right we have spent 900$ already from 1000$ so you have 100$ balance from this one left so extra so extra 400$ you need again not including this 100$ extra 400$ you need can you understand? so this is the total amount that we want out of this 1000$. thousand we had right so extra 400$ there is a bracket right that means a negative value means we need to...we need to add extra. extra means this bracket we will have. got it right? so that is variance at completion so these three estimate to complete(ETC) estimate at complete(EAC) variance and complete(VAC) this is about the forecasting so under forecasting we have these many and under tracking we have these many so this is how you calculate the tracking and forecasting so I hope you all understood the video if you have any doubts you can comment below if you want to get daily updates on my YouTube channel please subscribe to my channel.. thank you :)

Channel: hrk here

Views: 2,832

Rating: 5 out of 5

Keywords: PROJECT MANAGEMENT USING ORACLE PRIMAVERA P6, ORACLE PRIMAVERA P6 FREE TRAINING, ORACLE PRIMAVERA P6 FREE DOWNLOAD, CRITICAL PATH METHOD IN ORACLE PRIMAVERA P6, ORACLE PRIMAVERA P6, ORACLE PRIMAVERA P6 DOWNLOAD, ORACLE PRIMAVERA P6 TRAINING, ORACLE PRIMAVERA P6 TUTORIAL, ORACLE PRIMAVERA P6 FREE, PRIMAVERA P6 FREE, HOW TO INSTALL ORACLE PRIMAVERA P6, PRIMAVERA P6, WORKED EXAMPLE, UPDATING ACTIVITIES IN ORACLE PRIMAVERA P6, UPDATING RESOURCES IN ORACLE PRIMAVERA P6

Id: st3ZhU_HP8M

Length: 11min 15sec (675 seconds)

Published: Sat Mar 28 2020