Before I get into the context of commitments, expenditures and payments, I want to address cash flow. Often times the commitments expenditure and payment plans and curves are referred to as a cash flow. This is not a cash flow. A typical cash flow is made up of: Cash out: This includes items such as bid costs, engineering & design costs, material purchase orders, labor, overhead, and
Cost management is a very detailed process and includes many aspects that exist as their own detailed topic. This post attempts to evaluate the cost management process at the highest level. Consider it an introduction to cost for those with little to no exposure. An integrated cost management structure is implemented on a project in order to facilitate and control the decisions a project team
Given a Lump Sum type contract as a framework and high-level resource's Cost and Technical Resource calculations for developing a P6 baseline schedule, Earned Value rules and planned dates calculations can be adjusted for plotting the S-curve inside Primavera P6. This technique works when P6 Admin Settings are based on Planned Dates and Budgeted values only. Also this model does not use Expenses
Many are familiar with the concept of project contingency, but may not know how the value is initially calculated, when it is drawn from, and how to effectively generate an appropriate draw down curve. First let’s review the general concept of project contingency and its purpose. When estimating the cost of a project, there exists a level of uncertainty ranging from cost of equipment, execution
Primavera P6 Activity Codes are a handy and versatile tool, as we'll see in this tutorial. Sometimes you need to prepare some cost reports for different types of activities which are spread through the different positions in you WBS. So when you developed your schedule they are not below the same section. Therefore you need a tool to see them together for getting desired result which is the total
In an ideal project monitoring setup, your project would record the planned progress and the actual progress in every control period. Planned progress is presented by the Schedule % Complete field. Actual progress is presented by Performance % Complete, which is the subject of this article. Performance % Complete is depended on many settings and intermediate values, including Activity %
The purpose of this article is not to explain the whole technique of Earned Value Analysis and the whole system of Earned Value Management; rather we will only discuss the minimums you need to know, in order to fully understand the calculations involved in the Performance % Complete field of Primavera P6.