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Why is entering cost important in Primavera

Friday, 11 February 2011 14:37


Why is entering cost important in Primavera (even when you dont 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 dont enter cost information in the tool for reasons like non-availability of cost info or the cost
data being confidential. But what most people dont 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.
Lets 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
Lets 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.

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. Activity % Complete only stays till the activity level.
So in situations where the activity % complete type differs, we dont get a correct % complete at WBS level.
Case 2
Lets Cost load our program and assign a baseline to it. We then update our program as we usually do.

We add another column called Performance % Complete and the values of % complete get rolled up in this column at the
WBS level. 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, 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.
Hence when we use Primavera in an Enterprise setup, it becomes more than necessary to add costs to our networks.
Note The calculations of Performance % Complete would be covered in my next post because I didnt want to make this
post too long.

Using Financial Periods


Saturday, 12 March 2011 15:15
Financial Periods are an important aspect of Monitoring and Control in Primavera. They help us in keeping a check on the
incremental performance of our project by storing Performance Data in pre-defined periods.
Lets go through the steps on how to setup Financial Periods for use in our project;
Assumptions:

1.

Project network has been created

2.

Resources and Costs have been assigned to the activities

3.

Baseline has been saved

4.

We have a fixed update cycle (weekly, monthly etc)

Step 1 Creating Financial Periods


Update Cycle Weekly
To create periods goto Admin > Financial Periods

1.

Batch create financial periods and choose dates

Batch Start Date 07-Mar-2011


Batch End Date 31-Dec-2012
Note - You need to choose dates that cover all your projects in database so that Financial Periods can be stored for all
of them

2.

Choose Financial Periods Every 1 Week. (The periods lengths can be changed as per you requirements)

3.

Choose period ends on as Sunday.

4.

Click on Batch Create

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, you need to update the actual units in Actual this Period
Units. This column shows the incremental values for the update.

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

As seen in the fig. above, 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.

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, 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.

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