Why is entering cost important in Primavera

Friday, 11 February 2011 14:37 Why is entering cost important in Primavera (even when you don’t want to monitor it) Primavera is one of the most widely used tools for Project Management in the construction industry today. Mostly while monitoring projects on-site, we don’t enter cost information in the tool for reasons like non -availability of cost info or the cost data being confidential. But what most people don’t realize is that Cost is one of the most important data that needs to be entered in Primavera. Besides being used to monitor monetary performances of our project, cost also directly affects the EV & % complete calculations. Let’s see the following example to gauge importance of cost in Primavera: Activities in Primavera can be progressed in the following 3 types: 1) Duration % Complete 2) Units % Complete 3) Physical % Complete Let’s assume we have 3 activities A, B, C:

All of these activities have different % complete type, which can be seen in the Activity Name. Case 1: None of these activities have been assigned cost and are being used to monitor a project.

We update these activities as we would normally update a project.

it becomes more than necessary to add costs to our networks. They help us in keeping a check on the incremental performance of our project by storing Performance Data in pre-defined periods. but there are other cases like if you are using Primavera Web Module where you cannot show any % complete bar in Portfolios except Performance % complete. Activity % Complete only stays till the activity level. we don’t get a correct % complete at WBS level. So in situations where the activity % complete type differs. Assumptions: 1. We then update our program as we usually do. Project network has been created Resources and Costs have been assigned to the activities Baseline has been saved . 3. Let’s go through the steps on how to setup Financial Periods for use in our project. We add another column called Performance % Complete and the values of % complete get rolled up in this column at the WBS level. 2. Case 2 – Let’s Cost load our program and assign a baseline to it. And hence we get a correct % complete at the summary level. It is true that this would work only in cases where Activity % complete types differ. Note – The calculations of Performance % Complete would be covered in my next post because I didn’t want to make this post too long. 12 March 2011 15:15 Financial Periods are an important aspect of “Monitoring and Control” in Primavera. Using Financial Periods Saturday.After updating we can see that only values of Units % Complete and Duration % complete get rolled up whereas Physical % complete does not roll up at all. Hence when we use Primavera in an Enterprise setup.

Choose Financial Periods Every 1 Week. We have a fixed update cycle (weekly. Batch create financial periods and choose dates Batch Start Date – 07-Mar-2011 Batch End Date – 31-Dec-2012 Note . (The periods lengths can be changed as per you requirements) Choose period ends on as Sunday.4. 3. 4. Click on Batch Create .You need to choose dates that cover all your projects in database so that Financial Periods can be stored for all of them 2. monthly etc) Step 1 – Creating Financial Periods Update Cycle – Weekly To create periods goto – Admin > Financial Periods 1.

This column shows the incremental values for the update.Step 2 – Updating and monitoring project Workflow: Update Activity > Update Resource Units (Actual this Period Units) > Update Costs > Store Financial Periods Actual this Period Units: While updating your resource units. I prefer updating “Actual this Period Units” as I just need to put in the incremental value for Actual Units instead of calculating cumulative units for “Actual Units” . you need to update the actual units i n “Actual this Period Units”.

. you just need to input the incremental units used in that week and the cumulative values are automatically incremented in Actual Units column. Actual This Period Units are reset to 0 every time you store Financial Periods after scheduling your project.As seen in the fig. you have to enable them by going to Edit > User Preference > Application > Columns and choose the range of periods to be visible in the columns. Step 3 – Next step is to Store Financial Periods Goto Tools > Store Period Performance > Choose your “Financial Period” > “Store Now” In order for the Financial Periods to be visible in your columns. above.

.Generating Reports – Reports can be generated by using the “Time Distributed Data” option in Reports Wizard.

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