Hi All,
In our Project, we have to prepare a forecast cost curve along with the monthly report. I am following the below procedure to make it in P6, with the settings"fixed durations and units" and "Physical Percent Complete"
After updating the schedule and getting the earned value cost for each activity, I copy & paste it to the actual cost column(manually & boring). In my knowledge, P6 will calculate the remaining cost of the project starting from the actual cost (not earned value cost).
I tried global change to make the actual cost similar to the EV cost, but didn't work.
I would like to know your experiences.
Thanks
Best Regards
Kannan
I found the reason for the change, the Performance Factor(PF) to calculate ETC was not 1, but 0.88. Now the problem solved.
Regards
Kannan
Hi Gary,
I tried the settings as you mentioned, unfortunately am not getting the required result. may be I am missing something.
For eg:
BAC=1500
Earned Value Cost=750 (activity 50% complete)
Actual cost=1071 (changing as per the remaining duration, I am not following it)
Estimate to Complete = 660 (as per the setting it should be 1500-750=750)
therefore Estimate at completion= AC+ETC=1071+660=1731
Am i missing any setting to get the correct ETC.
Thanks
Regards
Kannan
Hi Raymund,
This curve is for the client, not for our internal. Client is not concerned about our internal actual cost and the expenses. The Client want from P6, the balance budget cost distribution as of a month end (Budget cost-Earned value cost).
As Gary informed , I am going to try those settings in P6.
Best Regards
Kannan
Thanks a lot Gary....
Regards
Kannan
Hi Mike,
I believe that this kind of trend curves based on the average of actuals can be prepared in the excel sheet. If it includes different types of activities, it may be time consuming as well (for eg: taking the actual productivity rate for pipe laying, cabling works, ceramic tiles installation etc) to deploy the future values of these activities in a single curve.
In my case the client is looking for the values directly from the P6(the remaining cost of the balance activities in the project). From the client point of view, the actual cost is Earned value(in my opinion its true because the client is paying us based on the earned value as of month end(ofcourse after discussion) and that is the actual cost for them as of that month end)
Regards
Kannan
Kannan,
As I understand a Forecast Cost Curve is a Planned Value Curve. When updating a schedule the value you get will be Earned Value which is to be compared with your Planned Value from the Baseline. Both Values will also be compared with the Actual Cost/Expenses incurred.
Regards,
Kannan,
It sounds like you want P6 to give you a forecasted ETC (Estimate to Complete) cost, rather than a remaining cost.
Go to Admin>Admin Preferences>Earned Value tab. There are a number of options for calculating ETC, including the simple (Budget - EV), which I think is what you are after.
Cheers,
G
Hi Kannan
In excell you can project a forecast trend from actual previous data to forward time slots by compounding the average change from the actual to the future.
This will project a straight line - a more complcated formula will convert this into a projected curve by including the percentage change between previous time slots.
Best regards
Mike Testro