MANAGING COSTS WITH P3

1
MANAGING COSTS WITH P3

• presented by
• Craig L. Olsen, CCC
• Program Controls Manager
• Certified Primavera Trainer
• OBrien Kreitzberg Inc.

2
Overview

• The process
• Resource and cost account structures
• Data items
• Assigning resources and costs
• Updating the schedule
• Reports
• Graphics
• Tips Techniques

3
The Process

• Establish a structure for cost accounts, cost
  categories, resources, and activity codes
• Create a baseline schedule
• Assign resources and costs
• Create and update the current schedule
• Close out the period
• Analyze reports and graphics

4
Resource Structure

• Define the hierarchy/resources.
• Define prices/rates

5
Cost Account Structure

• Define categories
• Define the cost account hierarchy with ??
• Define cost accounts

6
Standard P3 Cost Items

• Budget Cost (BC)
• (Estimated) Actuals (CTPCTD)
• Distribution Curve
• Earned Value (BCWP)
• Cost to Complete (CTC)
• Cost at Completion (CAC)
• Cost Variance (CVAR)

7
Custom Data Items Cost

• Create cost custom data items for
• Original budget (ORIG)
• Approved changes (APPR)

8
Assigning Resources Costs

• Enter resources budget quantity (units)
• Enter cost account and cost category
• Budget Cost Units x Price/Rate
• Add lump sum costs

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Baseline/Current Schedule

• Baseline schedule
• Confirm resource/cost information
• Make a copy to use for the current schedule
• Current schedule
• Run Global Change to store the budget cost (BC)
  in a custom data item for the original budget
  cost (ORIG)
• Update and close out each period

10
Updating the Schedule

• Actual start/finish dates
• Activity percent complete
• Remaining duration
• Refine logic/relationships
• Data date/recalculation

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Updating Costs (optional?)

• Resource/Cost percent complete
• Actual costs (vs. estimated)
• Approved changes (custom data item)
• Current budget cost
• Cost to complete (vs. estimated)

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Closing Out the Period

• Close out after all updates and revisions
• Select Tools, StorePeriod Performance
• Records actuals for that schedule update period
  along with earned value
• Sets actual this period values to zero

13
Reports

• Cost Loading Report
• Cost Matrix Report
• Cost Control Report
• Earned Value (Cost) Report
• Cost Performance Summary Report
• Tabular Cost Report (Cash Flow)

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Cost Loading Report

• Standard report in P3
• Columns by timeperiod (D,W,M,Q,Y,FY)
• Rows by code, cost acct, category, resource
• Add payment lag for cash flow

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Cost Matrix Report

• Standard report in P3
• Columns by project (or any activity code)
• Rows by phase (or any activity code)
• Provides perspective of cost allocation

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Cost Control Report

• Standard report in P3
• Organized by cost account
• Rows by resource

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Earned Value Report

• Standard report in P3
• Organized by resource
• Rows by activity

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Cost Performance Report

• Custom (Report Writer) report in P3
• Organized by cost account (or by cost category,
  resource and activity codes)
• Summarizes cost data and calculates
• CPI (Cost Performance Index) and
• SPI (Schedule Performance Index)

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Tabular Cost Report

• Standard report in P3
• Organized by timeperiod
• Period and cumulative totals
• Cash flow payment lag can be applied

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Graphics

• Cost Account Layout
• Cumulative Cost Curve
• Cost Histogram
• Cost Histograms by Resource

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Cost Account Layout

• Organized/totals by cost account
• Summarized by cost account/monthly totals

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Cumulative Cost Curve

• Cumulative costs by month
• Baseline (budget cost)
• Current schedule (actual cost to date cost to
  complete)

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Cost Histogram

• Costs by month
• Baseline (budget cost)
• Current schedule (actual cost to date then cost
  to complete)

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Cost Histograms by Resource

• Costs by resource group by month
• Baseline (budget cost)
• Current schedule (actual cost to date, then cost
  to complete)

25
Tips and Techniques

• Using hammocks with resources/costs
• Cash flow information with resource lag/duration
• Resource/Cost custom data items
• Exporting/Importing cost information
• Copying and pasting cost information

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Resource/Cost Hammocks

• Load resource/cost budget data and status at the
  Detail level, record the true actuals at the
  Hammock level.

HAMMOCK
First Related Activity
Last Related Activity
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Cash Flow with Lags/Durations

• Enter resource lag (no. of days of offset)
• Enter resource duration (same as original
  duration)
• Only available with resource assignment
• Must be entered and maintained individually

ACTIVITY BAR
Resource Lag
COST ALLOCATION
Resource Duration
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Additional Resource/Cost Custom Data Items

• Create other resource/cost custom data items for
  tracking/reporting.
• When organized by resource/cost account, values
  can be entered in columns.
• In other cases, values can be entered in Custom
  Data Items dialog box.

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Exporting/Importing Cost Data

• Export formats include .wk1, .wks, .prn, and .dbf
• Data can then be
• further formatted
• and organized in the
• spreadsheet
• Information can be
• added and then
• imported in P3
• Cost fields must be
• recalculated after
• importing data

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Copying and Pasting Cost Data

• Create a cost report (Loading, Matrix, Control,
  Earned Value, Custom, or Tabular)
• Format the font to RTF (RTF vs. ANSI)
• Produce the report and view it in LOOK
• Highlight table, then choose Edit, Copy
• Paste in Word, then choose Edit, Copy
• Paste in Excel
• Note column/row totals are not formulas

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Cost Management Summary

• Put your primary tool (P3) to better use by
  taking full advantage of its resource/cost
  capabilities
• Avoid the common pitfall of a separate cost
  system and the information integration challenge
• P3 will probably take care of a large majority of
  the projects cost management needs
• Use P3s Export or Copy/Paste features to provide
  data to the spreadsheet warriors
• Provide better coordinated and integrated
  management reporting and analysis

32
Thank You

• Please direct any comments or questions to
• Craig L. Olsen, CCC OBrien Kreitzberg
  Inc. 911 Wilshire Blvd. Suite 1800 Los Angeles,
  CA 90017 213/996-2586 olsen_at_okpcm.com
• Information on OBrien Kreitzbergs Services,
  Projects, Office Locations, and Employment
  Opportunities can be found on the internet at
  www.okpcm.com