EVM Calculation in Primavera P6

Ahmad Setayandeh
@Global Project Control
9/8/2020
 EVM Calculation in Primavera P6

In this article, I would like to show you how EVM works in Primavera P6. This is a
very useful function in Primavera P6. But we need to work with it properly.

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 EVM Calculation in Primavera P6

The first setting item here is referred to as the contractual situation, I am going to
split it into three sections:

Activity % Complete: let me call it Progress wise calculation, this item is

used when we want to monitor KPIs for each reporting date.

Milestone Based: if you have a contractual WBS Milestone and data

available on the top WBS level then the best choice will be WBS Milestone. but
if the contractual Milestones are available in the project job phases, other items
such as 0/100 % complete will be helpful.

As you see in the above picture, we have two formulas for ETC calculation:

Remaining Cost for Activity (ETC) = remaining cost for the activity

OR

Remaining Cost for Activity (ETC) = PF * (Budget at Completion – Earn Value)

If I am going to select the second choice for ETC calculation, then I have 4 more
choices, you should use them based on the project situation and project thresholds,
I want to rename the above ETC calculation Technique to:

1. PF=1, I want to name it Optimistic

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 EVM Calculation in Primavera P6

2. PF=1/CPI
Based on the current Project Cost Performance Index (CPI), I want to name it
Realistic.
3. PF= 1 / (CPI * SPI)
Based on the current Project Cost Performance Index (CPI) and Schedule
Performance Index (SPI), I want to name it Pessimistic
4. PF= 0.88
Based on Expert Judgement

The next level of assumption on EVM calculation focuses on the project information
and situation, you can change the Assumption based on:

• Budget Value with Planned Dates

• Budget Value with Current Dates
At Completion Value with Planned Dates

IMPORTANT NOTICE:

• For each WBS you should use bottom-up EVM calculation.

• EV for Labor is separated.
• We cannot calculate EV for all non-labor resources simultaneously, because
the resource types are not the same and they have different performances. for
instance, you cannot compare the EV to a Crane with a Truck.

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 EVM Calculation in Primavera P6

• SPI and CPI calculate based on the actual cost value, so update your resource
carefully.
• You can select the ETC method for each WBS

Let’s watch the below step-by-step video

• Video file link https://youtu.be/Mg5D3WBSYO0

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