How does Primavera P6 calculate Planned Value Cost for Activities without linear distribution (using Resource Curves or Manual plan) in Earned Value Management
When we use Earned Value Management technique, we focus on:
- Planned Value Cost (PV) = Budget At Completion * Schedule % Complete
- Earned Value Cost (EV) = Budget At Completion * Performance % Complete (usually equal to Activity % Complete)
- Schedule Variance (SV) = EV - PV
- SV > 0 : project is good, ahead of schedule
So Planned Value Cost play a very important role here.
By default when we assign resource to activity, the unit is distributed equally (linear). Then calculation of Planned Value is as above.
