RESOURCE PROFILE: BEHAVIOUR OF BUDGETED, ACTUAL, AND REMAINING UNITS

A lot of times people get confused when they see their periodic histograms and curves (actual and/or remaining) behave in a strange way. For instance, if the actual histogram was at 6 units in the previous update then how does it show 5 units this week? Shouldn’t the actual be fixed? Yes, it should and it is….

CLAIMS MANAGEMENT – TIME & COST OVERRUN

How to handle activities (scope) deemed necessary for successful project execution but somehow omitted in the original contract. In this case, work required for execution but not originally included in the contract, should become a change order. Fortunately, this type of discrepancy is usually found out quite ahead of its execution. Consequently, the VO w.r.t. time and…

HOW TO EVALUATE A SCHEDULE

A while ago there were a couple of posts on my Facebook group about my whimsical question of what to look for in a schedule prepared by someone else. Along the same lines I am sharing the DCMA 14-Point Schedule Assessment. While this is a framework adopted for some organizations, it has become a reference…

PRIMAVERA P6 KNOWLEDGE BASE

Improve your skills with the most widely used Project Management Tool. It’s Online …. It’s Free !!! Join PRIMAVERA P6 KNOWLEDGE BASE to get your queries answered in real time, meet other planners / schedulers, share ideas, benefit from & contribute to the body of knowledge and become a mentor to others !

Store Period Performance

Store Period Performance works like this: First create Financial Periods Admin > Financial Period > Add > specify relevant criteria > Close After updating the schedule with current info, the performance up to this date will be stored. Tools > Store Period Performance > Select financial period date as required. Confirm storing of info. To refer/review…

The Right Way to Prepare a Schedule

There isn’t a one ‘right way’ to prepare project Time Schedules (Bar Charts / Gantt Charts). Primavera is pretty versatile in this respect. If you forget to do one thing now, you can always do it later even if thousands of activities have already been added. Once someone starts regularly using this application they will…

Duration change does not change start/finish date

Sometimes if a schedule is imported from another application, it may happen that an attempt at adding or modifying activities duration will not produce a corresponding change in the dates. The reason this happens is because Remaining Duration does not automatically change to the same value as Original Duration (when adjusting not yet started activities)….

INTERNAL RATE OF RETURN (IRR)

Calculations of IRR rely on the same formula as NPV, with slight adjustments. IRR calculations assume a neutral NPV (a value of zero) and solve for the discount rate. The discount rate of an investment when NPV is zero is the investment’s IRR, essentially representing the projected rate of growth for that investment. Because IRR…

PAYBACK PERIOD

Frequently used as an alternative to net present value. It is much simpler than NPV, mainly gauging the time required after an investment to recoup the initial costs of that investment. However, the payback period does not account for the time value of money. For this reason, payback periods calculated for longer investments have a…

NET PRESENT VALUE (NPV)

Concept of Time Value of Money (TVM): Money now is more valuable than money later on. Why? Because you can use money to make more money! You could invest in a business venture, or put the money in the bank to earn interest. So $1,000 now is the same as $1,100 next year (at 10%…

Recovery Schedule

Pretty often works on a project don’t go as planned and delays are encountered. Delays basically shift the finish milestone to a point later in time than desired. It simply means the project is no longer on the desired track, or is not following the same trajectory as initially envisioned. In such cases a set…