Wednesday, January 31, 2018

Schedule Reliability and Buffers

Project schedules tend toward tardiness, but what can be done to make schedules more reliably on time? Schedule buffer similar to a cost contingency helps projects become more reliable.
Project plans are generally more optimistic than reality. Reasons for this disconnect are that project plans do not consider: inefficiencies in the handover of tasks between resources, workplace congestion, coordination among contributors, and the multitasking of critical resources. One would think that not accounting for these delay effects would be counter balanced by contributors padding their estimates. But this is not the case. Once a duration is entered in the project plan (whether conservative or optimistic) it becomes subject to all the drag effects of Parkinson’s Law and procrastination.
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Wednesday, December 27, 2017

Spending Plan

“Spending Plan” is the least used option in Primavera, but it is especially helpful when you want to track your Actual Costs against the Budget allocated to your project. You can track Actual Cost vs. Budget across WBS and rolling up to your Project and ultimately to your EPS. While using Spending Plan we need to keep one this in mind that this method uses a Top Down approach i.e. You have a total budget on the top node (Project) and you distribute it to the respective EPS/WBS underneath it.
Note – Spending plan dates start from PS-3 Months and finishes by after 4 yrs.
The following fields are used in Spending Plan;
1) Spending Plan – This is a user entered field where you enter the allocated Budget for the WBS/Project/EPS.
2) Spending Plan Tally – is a summary and it rolls up from the child nodes. If you are using it for a project then it will rolls up one level up from the child WBS and the same for EPS nodes.
WBS
Spending Plan
Spending Plan Tally
WBS 1
200
200
Rolls up from WBS 1.1 + 1.2
WBS 1.1
100
0
No Spending Plan Tally cause no child node
WBS 1.2
50
0
No Spending Plan Tally cause no child node
WBS 2
50
10
Rolls up from WBS 2.1
WBS 2.1
10
0
No Spending Plan Tally cause no child node
3) Undistributed Current Variance – (Spending Plan – Spending Plan Tally) – Follows a Top Down logic, it shows whether you have distributed your budget to the child nodes (WBS/EPS) or not.
WBS
Spending Plan
Spending Plan Tally
Undistributed Current Variance
WBS 1
200
200
0
    WBS 1.1
100
0
100
    WBS 1.2
50
0
50
WBS 2
50
10
40
    WBS 2.1
10
0
10
4) Benefit Plan – Benefit plan follows the same logic as spending plan but indicates the benefits that you stand to gain every month. This is also a user entered field and data has to be manually entered
5) Benefit Plan Tally – Same idea as Spending Plan Tally but only for Benefits.

6) Benefit Variance – (Benefit Plan Tally value – Benefit Plan value) – Follows the same logic as Undistributed Current Variance

Thursday, December 14, 2017

Primavera P6 Project Layout Files (PLFs) Explained

In Primavera P6, it can take some effort to achieve an agreeable look and feel for the presentation and/or layout of your schedule activity table and Gantt chart. Did you know these layouts could be saved and used for reporting on other projects as well?

Often the schedule creation process requires carefully setting up the activity’s screen, i.e. activity table and Gantt chart. And special activity layout presentations are essential for reporting project status to stakeholders. 


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Monday, December 11, 2017

Assigning Fixed Price Costs to Activities in Primavera P6

Primavera P6 has a standard process for creating and assigning labor, material, and equipment resources to compute activity cost. What if the activity is performed at a fixed price? Yes, there is a way to specify a fixed price activity cost in Primavera P6 Professional.

A popular procurement contract type is the fixed price contract. In this type of agreement the subcontractor agrees to perform an activity at a fixed price, regardless, of the actual labor, material, and/or equipment costs. In this way your company procurement department transfers the risk of exceeding the budget onto the subcontractor. Any unforeseen activity expenses must be paid by the subcontractor. Great! Well, how do we specify a fixed price activity cost in Primavera P6?

Tuesday, December 5, 2017

What is a Project Plan?

In large enterprises with hundreds or thousands of capital projects, it is important to create standards to which all projects must adhere. This provides the organization the ability to roll up and assess overall project performance across the organization as well as look at resource capacity and other key performance indicators.

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Friday, November 24, 2017

Primavera P6 and Resource Codes Explained

Primavera P6’s resource codes are helpful for sorting resource databases, which can become cluttered with an abundance of resource definitions.
Once created and assigned resources become an important fixture in the scheduling historical record. Resources are meant to be permanent database elements, and resource databases are therefore, generally, large and difficult to sort through. Resource codes, however, make it possible to sort resources by your desired category.

This article demonstrates how to employ resource codes to sort a Primavera P6 Professional resource database.

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Tuesday, November 21, 2017

Changing the Version Number of a Primavera P6 XER File

Your contractor sends you an XER file with the latest version’s format. You, however, have an older version of Primavera P6 Professional that is not compatible. If this is your situation we have a simple tip to resolve this format incompatibility issue.
More often than not you receive a Primavera P6 XER file in a format that your particular version of Primavera P6 will not read. This creates a nonstarter situation that appears to “put you up a creek without a paddle”. 

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