Managing Projects

Analyze costs

Comparing actual costs to budgets is a simplistic approach to cost control. Determining performance using earned value is more effective. Measuring earned value involves three key indicators: planned value, earned value, and actual cost. If you track these values over time, you can see the past spending and schedule trends for the project, together with a forecast of future costs.

Use cost spreadsheets, profiles, and cost control reports to monitor spending.

Calculating earned value using resource curves or manual future period buckets

Curves and manual future period buckets are used when calculating Earned Value if the following conditions apply:

The activity's % Complete Type is Units and the Technique for Computing Performance Percent Complete (on the Earned Value tab in the Work Breakdown Structure window) is Activity Percent Complete.

OR

The Technique for Computing Performance Percent Complete (on the Earned Value tab in the Work Breakdown Structure window) is Activity Percent Complete and the 'Use resource curves \ future period buckets' checkbox is marked (also on the Earned Value tab).

Note

To spread the Estimate To Complete using a curve, mark ETC = Remaining Cost for Activity (on the Earned Value tab in the Work Breakdown Structure window).

Updating progress

If activities are progressing on schedule, you might choose P6 Professional to estimate progress for all activities as of the new data date you specify. P6 Professional can quickly apply actuals to activity dates, and calculate actual duration and units when you use the Update Progress dialog box to update activities.

Estimating activity progress is a quick and convenient way to update your project. P6 Professional estimates progress only for those activities that were supposed to take place. Since progress can occur on activities out of sequence, you may need to update additional activities—especially if you selected activities by dragging the data-date line or by using the Progress Spotlight feature (View, Progress Spotlight). Once you spotlight activities, you can quickly update the project automatically as "on time."

When you use Update Progress to progress activities, P6 Professional will apply actual dates to the activities that should have started and finished, update the actual and remaining durations, and update the remaining units according to the new data date.

You can update progress automatically once you set the appropriate Auto Computer Actuals options. Choose Tools, Apply Actuals.

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