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earned value calculation

17 replies [Last post]
Tue, 2003-08-05 06:36
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i am currently working for oil and gas industry on Primavera P3 software. I would like to know more about the earned value with following information.
I have got some engineering activites for which our compnay gets paid 5% if the drawings has started, 50% if it has been issued for comments and 95% if it approved for construction...i.e progress monitoring methodology
What I do, i combine some drawings depending on layouts, discipline or so. So at the end, i get combined percentage for that group say 37%. My requirement is whether it is possible to get earned value only for 5% and not for 37%., as i wont be getting paid for 37%. I will get paid only at 5%, 50%, 95% and 100%. I would like to take report of it to submit it to client
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Fri, 2004-04-30 05:30
#1
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Earned vaue = % compl. * BAC (Budget at completion)
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Tue, 2004-04-20 22:40
#2
Alex Wong
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You can

You can also use different rules for your EV calculation.

0/100
50/100
weighted
by steps

Once you use P3e, you don’t want to turn back and now they have version 4.0 in the market very soon. Another big step forward for Entreprise Project Management
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Tue, 2004-04-20 02:48
#3
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Alex,

Can you use these various % complete you enumerated in calculating earned value?
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Tue, 2004-04-20 02:36
#4
Alex Wong
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In P3e you can have duration % performance %, physical % and %
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Tue, 2004-04-20 02:31
#5
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To the original sender who posted in this thread.

Since you are already working in P3, this is just in case you will encounter using MSP in the future.

In MSP 2003, you have an option to use either % Complete and Physical % Complete. % Complete uses the same formula as in P3 while Physical % Complete, you can model your Earned Value calculations.

Hope this could help. I wonder if P3 or P3e has a similar feature?

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Mon, 2004-04-19 09:50
#6
Luca Basile
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Is the same.
The curve is important in the schedule/cash flow preparation as is telling you when You will earn the quantity and then most important the money (BCWS).
With this You will built up Your cash flow, that will be the baseline for the earned value analysis.

The actual values are the ones real earned on site, so meters of duct layed, cubic meters of concrete poured and so on, with their real cost (ACWP).
Their temporal distribution can be different from the one You model in your schedule.
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Sun, 2004-04-11 09:02
#7
Zq qz
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hOW ABOUT IF THAT ACTIVITY HAS AN ASSIGN RESOURCE CURVE I.E BELL SHAPE ETC....
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Sun, 2004-04-11 06:37
#8
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In response to elaborate that earned value is a function of cost & % complete.

On % Complete, the formula used by P3 is (OD-RD)/RD

for example if OD is 10 days and it is already 50%, the formula for this is (10-5)/10=50%

If you have a Budgeted Cost at $10,000.00, the earned value is 50%*$10,000.00 = $5,000.00.

What you are asking is a function of milestone event which has a pre-calculated values for every stage of the documentation process. What i do in this case is to prepare a separate curve in excel for this because this situation is not the way P3 is calculating the EV. As what i have mentioned this is called a billing curve not earned value as defined in P3.

I hope this is a clear explanation on the concept for EV.
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Tue, 2004-04-06 07:56
#9
Luca Basile
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I suggest to put in P3 a high level engineering schedule supported by a document register from which P3 take the info. In this way You can keep record of the various step, have the S-curve and claim the right quantity in the same time the S-curve produce by the document register should be the same of the one in P3.

Same issue for the procurement, but a little more complicated as normally You have to take in consideration that a huge quantity of deliverables can not reach the IFC status without some information from the vendors.
See electrical load, pipe arrangment, isometrics, etc ...

But again put down a high level schedule for procurement and with a procurement log track You keep progress for each procurement items of the steps for which You are paied back (Issue Mr, Issur PO, Material Ex-work, Shipment, Custom clearance, etc ...), and the pick up the info to P3.

I used always this way and work without problems, just to set up all the system to work.

Luca

PS the level of aggregation should be agree with the Client, so before to start to work on and make big changes, have a talk with the other side (Client) and agree the
aggregation level.

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Tue, 2004-03-30 20:55
#10
Alex Wong
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The best way to obtain the 37% of the money you had completed is breakdown the value of each individual drawing and with their status "5% or 50% or 95% or 100%" Once that compete multiply the % with $ then you can have a $ value attached to the drawing. Add all the drawing EV$ and get paid.

I guess that way you can get your 37% paid
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Tue, 2004-03-30 03:39
#11
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HI,
i am actually trying to establish the facts for the progress of my claim programme.
i have remade the programme and now i am progressing it accorging to the important time slices i.e. data dates that influenced the contruction process. i am a bit confused about the use of % Complete as measuring tool or the remeing duration. as i had to adjust the durations of the activities to fit to a standard calendar for civil works, i wonder if i can still use the remeing duration as a progressing perimeter. just confused what to use.
any ideas!
Hashmi
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Wed, 2004-03-03 13:49
#12
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hi,
in the last reply, guest said that ev is the function of cost and % COmplete. can you please elaborate it. (just to ensure the integrity of my concept about it)
regards
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Mon, 2003-12-22 22:29
#13
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As we know, earned value is a function of cost and % complete. What you are asking is a contractual billing schedule.

What I do is this, prepare the earned value curve(BCWP), ACWP & BCWS in excel then add your billing curve.

From this report you can analyze that you may be already 35% complete but contractually you can only bill 5%.
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Sat, 2003-12-13 09:47
#14
Zq qz
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How about doing it through work step or work matrix:
=======BUDGET===STEP1==STEP2===STEP3======STEP4===EARNED==
==================5%====30%======50%=======15%========
DWG A 500=======100====100=====100=======50======425
DWG B 1000======100====100=====100=======50======850
TOTAL============================================1275
DWG B
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Wed, 2003-11-19 09:49
#15
Paul McCarthy
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Howa about splitting the drawing task into the distinct phases in the life of the drawing (5%,50%,95%&100%)? These could then be progressed discretely to enable better earned value metrics and payment triggers. I know it will increase the activity count for this section of your programme, but think the benefits could be worthwhile ?
Hope this helps
Cheers
Paul
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Tue, 2003-08-05 23:35
#16
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Hi Steven Oliver,

Thank you for your reply. I had tried to do the same in Excel, and it worked well. I also tried to duplicate the same in primavera through Global change (I used 3 global change query for that).
Anyway, I heard that it is quite possible to do this in Enterprise version (i.e. to define the earned value criteria activity wise). Is it true?
If yes, i would certainly like to try my hands on this enterprisw version.
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Tue, 2003-08-05 07:25
#17
Steven Oliver
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The easiest method is to copy out your P3 data to Excel (or Access) and set up your calcs and standard report format.

In P3 you would need to global change the %comp (sometimes resource %comp - but thats another story) value based on your threshhold values.
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