Understanding the Schedule Performance Index in P6

[Music] [Applause] thanks for joining us today for another p6 training module presented by TEPCO located in Baytown Texas today we're going to talk about the schedule performance index I am one of the p6 trainers and implementation specialists here at TEPCO the intent of this session is to define what SPI is and then also show you how you use it in p6 when you're doing scheduled performance analysis SPI is one component of earned value project management there are three primary components and earned value project management first one being planned value or PV also referred to as budgeted cost of work scheduled or bcw s the second is earned value or Eevee also called budgeted cost of work performed or BC WP and the third one is actual value or AV this is also referred to as actual cost of work performed or a CWP SP is derived from the plan value and the earned value so this session we'll be focusing on those two components actual value with earned value defined something called CPI and you can look for a separate YouTube video from TEPCO on CPI so let's talk about the planned value and earned value definitions planned value is the amount of hours targeted or planned to be complete as of the data date in order to understand the plan value hours a baseline target must be assigned to the p6 project this provides us with a planned value curve in an s-curve chart and also tells us how many hours per shift day or week are targeted to be performed earned value is the amount of hours achieved as of the data date based on progress entries into p6 we can only earn against baseline hours so if you add activities to a project plan that already has a baseline assigned you would want to make sure that you also add those activities into the baseline through some sort of change management process so that your teams can earn the hours against those at new activities at TEPCO we recommend 2 baselines one being an original baseline which could be set as the primary user baseline in P 6 and the other one being a change management type of baseline or added hours or added activities that occur during the execution of a turnaround or a project the schedule Performance Index or SPI is calculated by dividing the earned hours or cost by the planned hours or cost it provides a quick way to determine if hours are being earned on a job when they were planned or baselined to be earned a value less than 1 indicates that less work was actually earned than was planned a value greater than 1 indicates that more work was actually earned than was planned the formula for SPI is SPI equals the earned value divided by the planned value now let's relate to SPI to an s-curve here we have an example s-curve with a baseline s-curve in it's shown in red the data date is coming down as a blue dashed line our planned value as of the data date was 4200 hours now let's take a look at the earned value our earned value comes in and according to progress entries we have earned around 2600 hours against our baseline now that we have the earned value and the planned value defined in the S curve as of the data date we're able to use those two figures to give a schedule variance so we plan to get forty-two hundred hours achieved we only actually earned 2600 hours so we're 1600 hours behind so if we consider that our goal is to have an SPI of 1 and our scheduled performance in this case is 0.62 which is the 2600 hours divided by the 4200 hours we can visually see in the graph that our earned line is at about 0.6 to ratio if we considered our planned line as of the data date a 1 another way to look at it is that our target is a hundred percent as of the data date and we only earn 62 percent so the graph tells the same story as the SPI number does so what does SPI tell us some typical questions are when you see a low SPI is there anything preventing crews from starting a job on time now in the oil and gas industry this could mean that maybe lines are not prepared to and permits are not ready etc were there any environmental factors that stop them from working hurricanes bad weather rain lightning was the original estimate too low did they just not plan it correctly and the other question is is can you increase the resources to improve the schedule in that case you would also want to consider CPI which has mentioned earlier will be a separate YouTube presentation now if the SPI is high you might want to ask was the original estimate too high meaning that the work completed faster than expected people need to be careful with that one because if the original estimate was too high it's possible that other work could have been performed that was maybe removed from the schedule in order to keep the entire project plan or turnaround plan under a specific budget another thing to ask is should we move resources to other jobs that are behind so for example in a downstream refinery turnaround you might have a high SPI on your piping jobs but a low SPI on your valve replacement jobs can you take some of those piping resources and move them over to valves that would slow the piping down and you would only do that provided the piping jobs we're not going to turn critical it would slow the piping jobs down and then give you the opportunity to move some resources over to the valves and start speeding up or catching up on the valve work another thing it can do is indicate that maybe it's time to start laying off or reducing resources work is getting done faster than planned maybe the critical path in the plan is on target so they don't have a big concern over the critical path but they could start reducing their resource headcounts or even reducing the hours per day slowing the work down even if they get some of these jobs done quickly the critical path defines the overall duration of the project so it may not be of benefit to run crews on overtime and pay them premium times so to summarize all we need in an S curve are the two points the earned value as of the data date and the planned value as of the data date those two figures give us sp now I'm gonna take you into p6 and show you how you can use SPI to drill down from the top of a project all the way down into detailed activities to find areas of concern the example I'm going to use is of a refinery downstream turn around I currently have a group by WB s WB s is set up based on equipment types first thing I want to do is go through the columns that I have displayed the first area consists of these first five columns I'm showing the schedule Performance Index by labor units plan value labor units earned value labor units schedule variance for labor units and budget at completion labor units the next section I'm showing the schedule percent complete which is actually the planned value percent so if you've never used that percent complete column it is based off of the planned value the next column is the performance percent complete which is based off of the earned value so it's the Earned value percent and then this third section that I've split out here is the schedule performance index for cost and the planned value cost to earn value cost and the budget at completion all of these are cost fields these are the earned and planned percent fields and all of the ones on the left our labor units fields regarding the schedule percent complete and performance percent complete fields Oracle has changed how these fields have calculated in version 8 previous versions these fields calculated only off of planned value and earned value cost so if you are using a previous version you'll want to keep that in mind and in order to make those fields calculate properly you would probably need to assign some cost to your resources prior to setting a baseline the simplest way if you're not doing costs in p6 is to just put a dollar an hour on each resource that you want to include in your earned value calculations and these percent fields should calculate properly but even in version a these two fields appear to be calculating off of the costs as well however I have built projects in p6 where I did not apply any costs and the fields still calculate I have not contacted Oracle yet to get an explanation as to what the change was but I can tell you that schedule percent complete is the plan value cost divided by the budget at completion and the performance percent complete is the earned value cost divided by the budget at completion so it's basically tracking the percent complete so where you baselined your schedule to be as of the data date versus where you actually are as of the data date for the remainder of this session we will only focus on SPI by labor units if I look at the overall SPI for this turnaround it's currently at one point one three if I compare that to the s-curve graph that I have down below we can see that the ratio also indicates an SPI of one point one three the teal line is the planned value and the plan value as of the data date of course our target is a one the orange line is the earned value so you can see that visually the orange ends at the data date at about a one point one three if compared to the planned value and we consider the plan value to be a one in addition to that I can apply a filter i've pre set up a filter to only show exchangers and I'm going to turn this on you can see that our exchangers SPI is currently at point eight one if I look down at the graph if the target is to be a 1 which is the teal line as of the data date our planned value line you can see the Earned value line it's the data data at point eight one if we looked at it as a ratio the S curve down below is a direct reflection of the SPI number so how do we use SPI when we're performing schedule analysis during the execution of a turnaround or a project the quick way is to just look at the overall SPI at the top level and we can see that in general the project health is is in pretty good shape at a one point one three however we need to expand and scroll down and we can see areas that are ahead or above one and areas or WBS elements that are below one what we then can do is expand those areas that are below one and drill down into them to find out more till on where the problem lies if I expand the exchangers which are currently at a point a1 I can now go down into each exchanger and figure out which exchangers are falling behind and if I wanted to expand further I can find the specific activities that are running late by the way the SPI is based on man-hours but it's based on when those man-hours were supposed to be completed the SPI on this particular exchanger at a point 7/8 is also reflected on the Gantt chart because we can see that our activities are running behind compared to our baseline what Gantt charts don't tell us is the magnitude of the impact for example these activities are late but if I don't look at SPI or the earned versus planned I have no idea if these are to our tasks or if there are 100 Mann our tasks so that's why SPI is so important and should be used in conjunction with monitoring finish variance when you start looking at SPI and you start drilling down into it you don't want to just look at the SPI number you want to make sure that you correlate that to how many hours the job is worth here's an example of some compressors this one's a 2.86 but this one is at 0.5 if we only looked at SPI we would assume that this j1 17 loops that is the one that is in more danger if we actually look at the total budget at completion labor units you can see that the loop set is only worth a hundred and twenty seven hours whereas the first stage recycle compressor is worth 752 so they're actually both behind schedule almost equally here even though the SBI numbers are quite a bit different so to reiterate make sure when you're looking at SPI that you also consider the weight of the job a 10-hour job that is behind schedule showing an SPI 0.5 is probably not as big of a concern as a 1,000 hour job that is behind schedule showing a point 9 an SPI that's below one on any job typically raises questions so you may have to talk to your Foreman of those specific job areas to determine why things are behind schedule the other thing we can do as schedulers is try to figure out if we can move resources off of higher SPI jobs on to the lower SPI jobs in order to increase performance this may not always be the case because different resources have different skill sets or maybe the issues with the jobs that are below one have nothing to do with resource availability sometimes throwing more resources at a job does not solve the problem thank you for watching this tepco youtube session on schedule performance index in p6 if you'd like some more information on TEPCO's services or our training programs please go to WWF code us [Music]

Channel: TEPCOSolutions

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Keywords: p6, primavera, index, schedual, new, tepco, oil, gas, schedualer, baytown, tx, company, turnaround, chemical, plant, p6 training, project controls, primavera training

Id: cnxDAeTtjxc

Length: 14min 8sec (848 seconds)

Published: Thu Oct 04 2018