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…

Schedule Levels

Project participants frequently misunderstand the definition of schedule levels, which limits the quality and value of the information provided to the stakeholders and project participants. Project participants and stakeholders require different types of data and levels of detail relative to their schedule usage. The project owner is most likely to be interested in milestones and…

Cash Flow

Broadly speaking, Cash Flow is movement of money (payments incoming and outgoing). It is usually a pictorial representation of when costs will be incurred and how much they will total during the life of the project. It let’s the CFO/Finance Department know in advance to be prepared for (and adjust) scenarios. Being able to service project requirements (cost-wise)…

Renumbering Activity IDs

In large schedules several activities may be repeated albeit in different locations, different floors, buildings, departments, etc. If a filter were to be applied for these activities, unless the activity name (description) identifies where this activity takes place it would be really difficult to make anything out of the filtered view. Fortunately, a Planner can add…

The Time Period Concept

While working with calendars you most certainly must have come across this options menu. This is like a settings box, not a calculation box. The calendar works independent of this small box. As the description says, you have to ‘specify the number of work hours for EACH TIME PERIOD’ …. a time period could be…

Resource Leveling

Resource leveling is not always enough to solve the over allocation problem. Consider a project with a single activity of 10 days. This activity needs 1,000 hours of a resource to be performed. That is, 100 hours a day (linearly, for simplicity’s sake). If the max units/time (team size) for this resource are only 80…