Lessons Learned P6™ Resource Updating For The Beginner

2013 AACE INTERNATIONAL TRANSACTIONS
PS.1290
Lessons Learned P6 Resource
Updating for the Beginner
Charlie Jackson, PSP and Hannah E. Schumacher, PSP
Abstract Many contract documents require the project schedule to be cost and/or resource
loaded. If the contract documents require the use of Primavera P6, it is important for the
scheduler to understand the myriad of options within the P6 resource management utility and
how these options affect the updating process.
Primavera P6 contains several features that assist in establishing a well-defined resource plan
while efficiently managing resource allocations. However, a new or in-experienced user may be
overwhelmed in the attempt to grasp these features defined at various levels of the project and
overall enterprise organization without proper instruction.
This session is a follow-up to the authors AACE 2012 paper titled PS-962 Lessons Learned
P6 Resource Planning for the Beginner[1] and will focus on the authors experiences and
their lessons learned regarding the use of P6 in the resource updating process. The scheduler
should be able to apply the lessons learned outlined in this paper to effectively and efficiently
update their cost and/or resource loaded schedules to meet their organizational requirements
and project contractual obligations.
PS.1290.1
Copyright AACE International.

This paper may not be reproduced or republished without expressed written consent from AACE International

Table of Contents
Abstract .......................................................................................................................................
List of Figures ..............................................................................................................................
Introduction ................................................................................................................................
Resource Definitions ...................................................................................................................
Resource Configuration Settings .................................................................................................
User Configuration Settings ........................................................................................................
Resource Allocation ....................................................................................................................
Resource Updating ......................................................................................................................
Auto-Calculated Update ..............................................................................................................
Manually Updated Costs .............................................................................................................
Resource Distribution .................................................................................................................
Resource Curves ..........................................................................................................................
Financial Periods .........................................................................................................................
Store Period Performance ..........................................................................................................
Resource Reporting .....................................................................................................................
Conclusion ...................................................................................................................................
References ...................................................................................................................................
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List of Figures
Figure 1 Resource Detail Tab ...................................................................................................
Figure 2 Resource Units & Prices Tab ......................................................................................
Figure 3 Project Detail Resources Tab .....................................................................................
Figure 4 Project Details Calculations Tab .................................................................................
Figure 5 Project Details Defaults Tab .......................................................................................
Figure 6 Activity Detail Resources Tab .....................................................................................
Figure 7 User Preferences Time Units Tab ...............................................................................
Figure 8 User Preferences Calculations Tab .............................................................................
Figure 9 User Preferences Resource Analysis Tab ...................................................................
Figure 10 Resources .................................................................................................................
Figure 11 Auto-Calculated Update Settings .............................................................................
Figure 12 Auto Computed Actuals Based on Update Activities ...............................................
Figure 13 Manual Update Calculation Settings ........................................................................
Figure 14 Manually Updated Actuals Based on Updated Activities ........................................
Figure 15 Resource Curves .......................................................................................................
Figure 16 Financial Periods ......................................................................................................
Figure 17 Actualized Resource Data Stored Using Financial Periods .......................................
Figure 18 Actualized Resource Data Distributed Linearly ........................................................
Figure 19 P6 Resource and Cost Reports ..............................................................................
Figure 20 Resource Usage Profile by Resource ........................................................................
Figure 21 Resource Usage Profile by Time Period ...................................................................
Figure 22 Resource Usage Spreadsheet by Resource ..............................................................
Figure 23 Resource Usage Spreadsheet by Assignment ..........................................................
Figure 24 Activity Usage Profile ...............................................................................................
Figure 25 Activity Usage Spreadsheet ......................................................................................
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Introduction
Many Contract Documents require the project schedule to be cost and/or resource loaded. If
the Contract Documents require the use of Primavera P6, it is important for the Scheduler to
understand the myriad of options within the P6 resource management utility and how these
options affect the updating process. Primavera P6 contains several features that assist in
establishing a well-defined resource plan while efficiently managing resource allocations.
The Scheduler must read and understand the Contract Documents in order to format the
schedule to comply with the Contractual requirements and obligations. Do the documents
require cost loading or earned value reporting? If so, does it require lump sum or detailed cost
loading by resource? Does the contract require resource loading? If so, does it require resource
loading by manhours per individual resource, by mandays, or by crew?
In P6, it is extremely important to set up the resource configurations correctly from the start.
How the Scheduler sets up the resources in the initial schedule will impact how the Scheduler
will update these resources in future updates. Therefore, this paper will provide an overview of
the definition, configuration, and allocation of resources in P6 before focusing on the
updating and reporting of resources and costs. This paper provides two scenarios of updating
resources and costs, one with auto-calculated updates to both resource units and costs and one
with manually updated resource units and costs.
This paper does not assume to cover all aspects of resource functionality within Primavera.
Quite the opposite since Oracle Primavera provides organizations, in a variety of industries,
many options to manage and maintain their resource work force (as an example, individually
named resources with options to status their actual hours performed using Oracles Timesheet
application or Progress Reporter). This paper does not discuss the use of resource calendars
on resource dependent activities or resource driven activity durations.
This paper does cover earned value settings that effect resource actuals. Although P6
provides several means of updating activity data (including resource data) such as Update
Progress (using Planned data to status actual data) and Apply Actuals (using resource
hours/units entered in the timesheet application to status actual resource data), this paper
assumes that the construction scheduler statuses activity work entering activity level actuals
and percent complete based on field reporting and status meetings.
Though the authors have experience using the aforementioned Primavera P6 capabilities to
maintain resources, the goal of this paper is to present resource maintenance in its most basic
form. This paper proposes two scenarios for a scheduler in the construction environment
working within typical and current industry scheduling specifications (based on the authors
experience). The first scenario assumes the scheduling requirements necessitate the project
resources (units and costs) be budgeted at the activity level, and that the activitys percent
complete be used to calculate actual resource data. The second scenario proposes scheduling
requirements under which the project resources (units and costs) be budgeted at the activity
PS.1290.4


level as in the first scenario, but that the activitys percent complete has no bearing on the
actual resource data; the scheduler is required to physically enter actual units and costs for
each of the projects activity assignments.
Before the authors can appropriately discuss resource maintenance for either scenario, a
general discussion of resource configuration must first be addressed. The scheduler must
understand resource setup and configuration, and must establish an understanding with his or
her project team on the use of resources within Primavera and the scheduling requirements
that are in place for the project. The scheduler should configure Primavera settings for the
project resource, for the project, and if necessary, for each resource following its initial activity
assignment. Although some of these settings can be adjusted following the original assignment
of the resource to the project activity, the authors cannot guarantee that the desired results
will be achieved. This paper, if nothing else, stresses that the appropriate resource options be
set prior to any update of the project schedule.
Resource Definitions
Within P6, there are three types of resources that the scheduler can use: Labor, Non-labor,
and Material. Each resource is measured in units. Labor and Non-labor resource types are
measured using units/time (such as manhours, mandays, or dollars) while material resource
types are measured using custom units of measure (such as cubic yards or lineal feet). Each
resource should have a default unit/time and maximum units/time. Up to five cost rates per
time period can be assigned to a resource.
Resource Configuration Settings
P6 calculates resource actuals (units/cost) based on the settings defined at the Global /
Enterprise Resource level (Resource Details), Project level (Project Details), and
Activity/Assignment level (Activity Details). The schedulers user settings (User Preferences)
define resource data distribution by activity and how resource information is displayed.
Global / Enterprise Resource Settings: The majority of resource settings in P6 are at the
enterprise level, meaning they are global and affect all projects in the database. Therefore, it is
important for the Scheduler to identify resource settings for their specific project by using a
unique identifier (i.e. Project Name + Resource identifier). Resource IDs (and Resource Curves if
used) are examples of global data that should have unique identifiers to avoid incorrect usage
of project specific resources.
The majority of the settings which define the behavior of the resource for its initial assignment
as well as cost are set within the Details and Units & Prices tabs at the resource level.
PS.1290.5

The Resource Details tab settings (as shown in Figure 1) determine whether the actual units
for each resource will be actualized as the activity it is assigned to is progressed (Auto
Compute Actuals) and whether the actualized units will be used to calculate the associated
costs (Calculate costs from units). Costs can only be automatically calculated based on the
units (price per unit) or entered directly by the scheduler.
Figure 1 Resource Detail Tab
For those resources whose costs are based on units, the Resource Units & Prices tab (as
shown in Figure 2) can have up to five rates (dollars) per unit based on an effective date.
The five rate types allow for varying resource usage by contract type for a given period (i.e.
Time and Material contracts versus Fixed Price).
Figure 2 Resource Units & Prices Tab

PS.1290.6


Project Level Resource Settings: Resource settings for the project level are included in the
Project Details, Resources, Calculations, and Defaults tabs. Project settings can override the
above resource settings for each project (i.e. whether to allow duration percent complete to
update resource assignments).
Project Details, Resources tab settings (as shown in Figure 3) determine which Rate Type for
any given resource will by used by default, and whether a resources calendar will directly
drive the activitys duration (Resource Dependent activity types); whether a resource can be
assigned more than once to a single activity (i.e. different Cost Accounts or for varying time
periods and/or with varying cost rates). These settings apply to new assignments of
resources, and changes to these settings will not affect existing assignments.
Figure 3 Project Detail, Resources Tab
Project Details, Calculations tab settings (as shown in Figure 4) determine how resource
assignment actuals are updated and stored. The scheduler must decide whether Actual
units/costs are added to Remaining to equal the At Complete (i.e. T&M contracts) or
whether the actuals are subtracted from At Complete to equal Remaining (i.e. Fixed Price
contracts). The scheduler must also decide whether to use the activitys actual duration
percent complete to update the assignment actuals (Note: this option is only available for
Fixed Duration activities) or to manually input actuals regardless of percent complete. This
option allows the scheduler to override the resource level option of auto compute actuals
with project specific requirements. Without this option selected, actual data can only be
entered manually.
The link between costing changes and unit changes can also be turned off to allow for
variance between costs and units. The scheduler can enter the total budgeted cost for each
activity assignment and have the application calculate the total associated units.
PS.1290.7


If using Financial Periods and storing period performance data, the scheduler should select
the option to link the actuals for any given period (defined at the database level) directly to
overall project actuals.
Figure 4 Project Details, Calculations Tab
Project Details, Defaults tab settings (shown in Figure 5) which affect resources include the
duration type and percent complete type. The Duration Type determines the use of
production rates and how they affect progressed durations.
Figure 5 Project Details, Defaults Tab

Activity Detail Settings (shown in Figure 6): Activity level assignments (Resources tab) can be
modified to override the resources default settings (i.e. calculate costs from units). The
activitys assignment level Auto Compute Actuals option is based on the resource level
configuration and cannot be adjusted specific to an existing assignment.
PS.1290.8

Figure 6 Activity Detail, Resources Tab

User Configuration Settings
User Preferences (Edit menu, User Preferences) are specific settings which apply to a specific
user license of Primavera. Defined user settings are global to all projects to which the user has
access.
The majority of user specific resource settings are established in the Time Units, Resource
Analysis and Calculations tabs of the User Preferences dialog box.
Time Units tab (shown in Figure 7): Resource units are typically displayed in hours; however,
the user can select other units of time in which to display resources as well as whether resource
units will be displayed as either a percentage or by units/time (Edit menu, User Preferences,
Time Units tab).Caution should be taken if selecting another unit besides hours as Primavera
calculates resource units in hours (by default). The user should understand that units
distributed days, for example, might cause Primavera hourly distribution to round the number
and thus affect budgeted values especially noticed when exporting/importing project data
from one system to another.
PS.1290.9

Figure 7 User Preferences, Time Units Tab

Calculations tab (shown in Figure 8): When assigning additional resources to an activity, the
user can auto-distribute previously assigned resource units/costs to future assignments (i.e.
holding the activitys budgeted values for cost and units regardless of the number of resources)
or preserve budgeted values for each assignment (i.e. each resource will maintain its original
budgeted values for cost and units). The recommended practice for the construction scheduler
would be to preserve budgeted values for each distinct assignment.
Figure 8 User Preferences, Calculations Tab

PS.1290.10


Resource Analysis tab (shown in Figure 9): For those resources that are assigned across multiple
projects the scheduler can specify how the data will be filtered/displayed. Based on project
specific resources, it is recommended maintaining the setting for Opened Projects only.
Figure 9 User Preferences, Resource Analysis Tab

Resource Allocation
Resources are typically assigned per activity within the P6 Activities window, Activity Details,
Resources tab along with the assignments Budgeted Units and Units/Time based on their
default resource settings. Once resources are assigned to activities the Resource Assignments
window can be used to review and modify existing assignments. Keep in mind that besides the
resources defaults both the project settings and User Preferences determine how resources
are assigned and viewed at the activity level.
Resource Updating
As actuals are entered (i.e. dates and percentages) Primavera provides the scheduler the
ability to automatically status actual units with the calculated percent complete (i.e. Duration
or Units). The activitys physical percent complete requires manually entered updates to units
and/or costs.
As mentioned, this paper provides two scenarios of updates, one with auto-calculated updates
to both resource units and costs, one with manually updated units and costs. Both scenarios
will be using Percent Complete type of Duration % complete and the Duration Type of Fixed
PS.1290.11


Duration and Units to status activity dates/percent complete. These settings are most common
in the executed construction schedule.
Figure 10 Resources
The Cost resource is identified as XXXX (the unique project ID) Costs (to identify the unique
project resource) as discussed previously. The resource type is set to Nonlabor this allows the
scheduler the ability to analyze pure cost resources versus labor or material resources.
The Labor resource is identified as XXXX (the unique project ID) Labor (to identify the unique
project resource) as discussed previously. The resource type is set to Labor, as shown in Figure
10.
Auto-Calculated Update
When using Primavera, if an activitys Duration % complete can be used to calculate actual
resource units the scheduler may choose to have P6 compute actual units completed
regardless of physical work performed.
In selecting to use Primaveras resource Auto Calculate option, activity actual and remaining
units are calculated using the planned dates, budgeted units, and the activitys schedule
percent complete. According to Primavera help, this assumes that all work by the resource
proceeds according to plan.
The following settings (as shown below) must be selected at these three levels:
1. Resource level (Details tab) Auto Compute Actuals
2. Project level (Calculations tab) Update units when costs change on resource assignments
3. Activity level (Resources tab) Auto Compute Actuals
The first scenario also assumes that assignment actual cost will be calculated based on actual
units (Resources level, Details tab, Calculate costs from units) and that the scheduler will be
using Financial Periods to store actual work for each update period (Project level, Calculations
tab, Link Actual and Actual This Period Units and Cost).
PS.1290.12

Figure 11 Auto-Calculated Update Settings

In the first example, the resources (Resource Details) are set to auto compute actuals and to
calculate costs from units. The Cost resource has $1 assigned per unit. The Labor resource has
no dollars assigned per unit.
The project settings (Project Details), which support the resource settings, are set to recalculate
actual units and cost when Duration % complete changes.
The activity settings (Activity Details) also support the resource configuration with Auto
Compute Actuals and Calculate costs from units both selected.
As actual dates and activity percent complete is updated, resource actuals are updated based
on the updated percent complete as shown in Figure 12.
PS.1290.13

Figure 12 Auto Computed Actuals Based on Update Activities

In the above example, the original duration for Activity A is 5 days; its Budgeted Units are
manually entered as 500 and Budgeted Costs is auto-calculated as $500 (based on a $1/unit
setting within the Units & Prices tab at the resource level). When the activitys duration percent
complete is updated to 60% complete, Primavera P6 calculates the Actual This Period Units as
300 and the Actual This Period Costs as $300.
With auto-calculated resource assignments any activity acceleration or impact will affect the
percent complete and thereby affect actual and remaining resource units/costs regardless of
physical work performed.
Manually Updated Costs
When actual work performed cannot be used to calculate either resource actual units or costs
(due to contractual requirements or system limitations, etc.) the scheduler may need to
manually enter actual period units and/or costs for resource assignments.
PS.1290.14

Figure 13 Manual Update Calculation Settings

The scheduler has two options to configure the project settings for a global resource (as shown
in Figure 13, column A) by unselecting the project level option to recalculate actual units and
cost when duration % complete changes. The other option, typically used for a project specific
resource (as shown in Figure 13, column B), is to define the resource settings by unselecting the
option to auto compute actuals. The project settings (i.e. recalculate actual units and cost when
Duration % complete changes) will have no impact on this type of project specific resources. It
is recommended that, should the scheduler decide to manually enter all units and costs, both
project resources and project settings be set accordingly to avoid confusion or erroneous
updates.
PS.1290.15

Figure 14 Manually Updated Actuals based on Updated Activities

Resource Distribution
By default, resources are spread linearly across the duration of the activity to which the
resource(s) is assigned (for both future and actualized assignments); however, the scheduler
can assign resource curves to adjust or customize future distributions as well as financial
periods for storing specific actual values.
Resource Curves
Resource curves are set at the enterprise level; therefore they can be applied to any and all
projects in the database. Resource curves (Enterprise menu, Resource Curves) distribute future
resource allocation based on the duration of the activity and percentages of distribution for the
curve.
Primavera P6 provides several industry standard default curves that can be used at the
resource assignment level. However, the user can define additional global curves based on an
existing curve. All resource curves are available across the enterprise; however, it is important
for the scheduler to identify resource curves for their specific project by using a unique
identifier (i.e. Project Name + Resource curve).
PS.1290.16

Figure 15 Resource Curves

Financial Periods
Financial Periods can be used to store actual cost and past resource data. Financial Periods are
defined at the enterprise level and apply to all projects in the database.
Figure 16 - Financial Periods

Store Period Performance
Regardless of auto-calculated settings or manually entered values, once all actuals have been
updated the scheduler can use the option to store actual this period units and costs to a given
financial period (Tools menu, Store Period Performance). If the scheduler chooses to use
financial periods to store actual data for a given project, the projects actuals and actuals this
period units and costs must be linked (Project Details, Calculations tab). The use of financial
periods provides greater detailed actuals (based on the database defined financial periods) as
shown below in Figure 17. By modifying the Resource Usage Profile Options the scheduler can
display data based on Financial Periods.
PS.1290.17

Figure 17 Actualized Resource Data Stored Using Financial Periods

Without the use of financial periods, past or actualized data is distributed linearly across the
duration of the activity (as shown below in Figure 18).
PS.1290.18

Figure 18 Actualized Resource Data Distributed Linearly

Although past financial periods can be updated, based on the schedulers defined User
Preferences (Edit menu, User Preferences, Application tab), it is recommended that the
scheduler verify actual this period totals for both units and costs prior to storing data to a given
financial period.
Resource Reporting
Following the initial load of resources and/or the update of resource data, Primavera provides
the scheduler the ability to produce tabular reports as well as graphical reports (i.e. histograms
and spreadsheets) to analyze both actual and projected resource usage.
Resource and Cost Reports
Primavera provides several standard cost and resource reports (Tools, Reports) as shown in
Figure 19. These standard reports include Resource Control, Earned Value, Loading, and Cash
Flow. The reports can be copied and customized to develop project specific reports using the
Report Editor or Report Wizard.
PS.1290.19

Figure 19 P6 Resource and Cost Reports

It is important for the Scheduler to review the available resource and cost reports and graphics
with all stakeholders and determine what each individual stakeholder will need to assist them
in their role of managing resources and costs on the project(s).
The Resource Usage Profile
The Resource Usage Profile (within the Activities window) provides a graphical representation
using histograms and curves to display assignment data based on the selected resource(s).
When viewing Open Projects Only, activities can be filtered by specific resources (as shown in
Figure 20) or by time periods (as shown in Figure 21).
PS.1290.20

Figure 20 Resource Usage Profile by Resource
Figure 21 Resource Usage Profile by Time Period

Resource Usage Spreadsheet
The Resource Usage Spreadsheet provides a spreadsheet of specified assignment data based on
specified resources are resource data fields. When viewing Open Projects Only, activities can be
filtered by specific resources (as shown in Figure 22) or by activity assignments (as shown below
in Figure 23).
PS.1290.21

Figure 22 Resource Usage Spreadsheet by Resource
Figure 23 Resource Usage Spreadsheet by Assignment

The Activity Usage Profile
The Activity Usage Profile (within the Activities window) provides a graphical representation
using histograms and curves to display assignment data based on activities. If viewing Open
Projects Only, activities can be filtered by all activities or selected activities. Data can also be
displayed based on a selected Time Period (as shown in Figure 24).
PS.1290.22

Figure 24 Activity Usage Profile

Activity Usage Spreadsheet
The Activity Usage Spreadsheet provides a spreadsheet of specified assignment data (i.e.
Remaining Units, Budgeted Cost, etc.) based on the all displayed activities (or selected
activities) and their resource assignments. Data can also be displayed based on a selected Time
Period (as shown in Figure 25).
PS.1290.23

Figure 25 Activity Usage Spreadsheet

Conclusion
If the Contract Documents require the use of Primavera P6, it is important for the Scheduler
to understand the myriad of options within the P6 resource management utility and how
these options affect the updating process. Primavera P6 contains several features that assist
in establishing a well-defined resource plan while efficiently managing resource allocations. In
P6, it is extremely important to set up the resource configurations correctly from the start.
How the Scheduler sets up the resources in the initial schedule will impact how the Scheduler
will update these resources in future updates; therefore this paper provided an overview of the
definition, configuration, and allocation of resources in P6. This paper provided two scenarios
of updating resources and costs, one with auto-calculated updates to both resource units and
costs and one with manually updated units and costs. The Scheduler should be able to apply
the Lessons Learned outlined in this paper to effectively and efficiently update their cost
and/or resource loaded schedules to meet their organizational requirements and project
contractual obligations.
PS.1290.24


References
1. Jackson, Charlie and Hannah Schumacher, Lessons Learned P6 - Resource Planning for
the Beginner, 2012 AACE International Transactions, AACE International, Morgantown, WV
2012
Charlie Jackson, PSP

Hill International
CharlieJackson@hillintl.com
Hannah E. Schumacher, PSP

FDI Planning Consultants
hschumacher@fdiplan.com
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Figure 1 Resource Detail Tab

Figure 2 Resource Units & Prices Tab

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Figure 3 Project Detail, Resources Tab

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Figure 4 Project Details, Calculations Tab

Figure 5 Project Details, Defaults Tab

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Figure 6 Activity Detail, Resources Tab

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Figure 7 User Preferences, Time Units Tab

Figure 8 User Preferences, Calculations Tab

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Figure 9 User Preferences, Resource Analysis Tab

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Figure 11 Auto-Calculated Update Settings

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Figure 12 Auto Computed Actuals Based on Update Activities

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Figure 13 Manual Update Calculation Settings

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Figure 14 Manually Updated Actuals based on Updated Activities

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Figure 15 Resource Curves

Figure 16 - Financial Periods

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Figure 17 Actualized Resource Data Stored Using Financial Periods

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Figure 18 Actualized Resource Data Distributed Linearly

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Figure 19 P6 Resource and Cost Reports

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Figure 20 Resource Usage Profile by Resource

Figure 21 Resource Usage Profile by Time Period

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