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Earned Value calculations in CA PPM, unexpected results

  • 1.  Earned Value calculations in CA PPM, unexpected results

    Posted Aug 16, 2018 11:16 AM

    Hi all!

    This is my first question here in the CA PPM community.  I hope someone will drop a hint or two regarding my "issue". It seems like a rather complex one, but I hope someone has experienced this in the past and will look right through it.

     

    The case is built around CA PPM 15.3. The cost rate matrix has only one row containing the values of 1,00 for Rate, Standard Cost and Actual Cost each. The project is associated with the matrix. The project has a baseline and all the CA recommended jobs were run (Rate Matrix Extraction, Post Timesheets, Update Earned Value and Cost Totals, Investment Allocation.) The project contains labor costs only. Method of calculation is "Effort". To simplify testing, the project contains only 1 task with 1 assigned team member on the task (the only project team member also). The task end = project end. Task starts when the system records first actuals on it.

     

    Given these starting information, I would assume the following:

     

    1. For each posted actual, Actual Cost should be 1,00 (currency).

    2. Earned Value should be equal to Actual Cost, since (hour worked * rate = EV)

    3. BAC should be equal to EAC.

    4. BAC - Actuals = ETC.

    5. BAC Cost = BAC (since we have only rates of 1)

    6. EAC = EAC Cost (same reasoning)

    7. Actuals = ACWP (same reasoning) <-- this one is maybe the most confusing since we are getting funny numbers.

    8. BCWS displays the (EAC Cost - Earned Value or BCWP) / number of days from today until the task end.  

     

    CA PPM displays the results of its calculations in two blocks: Performance Costs (in hours) and Performance Effort. The later one is always showing the expected data. But the Performance Costs (in hours) displays data we can not explain.

     

    I would like to start the discussion with the two most unexplainable one.

     

    Actuals (recorded in the Performance Effort section) is for example 56,56 and Actual Cost (ACWP) is 432. My expectation would be Actuals = Actual Cost (since the Rate Matrix is populated with 1's).

     

    BAC = 90 and Bac Cost = 699,5. My expectation would be the same 90 = 90.

     

    The overall question is do I have an issue with my expectations or is the CA PPM behaving in unexpected ways?

     

    I will provide more information, if needed. 

     

    Anyone any ideas? We are feeling stuck with this one.  Any help would be greatly appreciated! 

     

    Regards,

    Jasenko



  • 2.  Re: Earned Value calculations in CA PPM, unexpected results

    Broadcom Employee
    Posted Aug 17, 2018 03:57 AM

    Hello Jasenko,

     

    I see that you run the Rate Matrix Extraction job, but can you confirm that you:

    • Associated the right Rate Matrix to the project for Labor?
    • Ran the RME with options 2 and 3 only (Prepare Rate Matrix Data, Update Rate Matrix Data)?
    • Ran the RME job after adding the the resources to the team and assigned to the task?

     

    Regards,

    Marc 



  • 3.  Re: Earned Value calculations in CA PPM, unexpected results

    Posted Aug 20, 2018 07:04 AM

    Hi Marc,

     

    We can confirm that:

     

    1. The system uses only one Rate Matrix (the one i described in my reply to Shoichi)

    2. This point can not be taken 100% for granted

    3. Same comment as number two.

     

    How are financial values calculated? - CA Knowledge 

    This KB Article was created upon my first inquiry and I am getting a bit different results on the test environment. But production has such varying results that we can not catch any systematic logic to the calculations.

     

    Regards,

    Jasenko



  • 4.  Re: Earned Value calculations in CA PPM, unexpected results

    Broadcom Employee
    Posted Aug 20, 2018 09:04 AM

    I'd suggest that you try to redo this but making sure that the three are absolutely true, as they could make a difference in here.

     

    Regards,

    Marc



  • 5.  Re: Earned Value calculations in CA PPM, unexpected results

    Posted Aug 20, 2018 10:08 AM

    Marc,

     

    I have checked and the Rate Matrix Extraction job was run with the 2nd and 3rd option selected. But only once after the creation of the matrix. Are you saying that this job is needed every time we add a task or assign a new resource to a task? Or when baselines are updated?

     

    Regards,

    Jasenko



  • 6.  Re: Earned Value calculations in CA PPM, unexpected results

    Broadcom Employee
    Posted Aug 20, 2018 10:45 AM

    Because of performance issues, in 15.2 the on-the-fly Rate Matrix Extraction was disabled by default. We do not recommend re-enabling that. Instead, you should make sure that the job runs before posting any timesheets (if this is the source of your costs) so that the correct rates are picked when posting.

     

    Regards,

    Marc



  • 7.  Re: Earned Value calculations in CA PPM, unexpected results

    Posted Aug 21, 2018 02:55 AM

    Marc, 

     

    you mean running the RME job just once at the start of the project when tasks are created and team members assigned? Or every week before timesheets get posted?

    What about changing teams and adding new tasks? In these cases, the RME job has to be run once each time a change to the WBS or the team occurs?

     

    Regards,

    Jasenko



  • 8.  Re: Earned Value calculations in CA PPM, unexpected results

    Broadcom Employee
    Posted Aug 17, 2018 05:09 AM

    Hi,

     

    You described that Actuals=56 and Actual Cost (ACWP)= 432, and BAC=90 and Bac Cost=699,5.

    I calculated ratio of them.

     

    The ratio for Actuals/ACWP is 0.1296296296296296.

    The ratio for BAC/Bac Cost is 0.1286633309506791.

     

    They are almost same ratio. 

    Could you check that your System Currency is same as Billing Currency?

    If they are different currency, please check Foreign Exchange Rates on Finance->Setup.

    Foreign Exchange Rates may be same as above ratio.

     

    Regards,

    Shoichi 

     



  • 9.  Re: Earned Value calculations in CA PPM, unexpected results

    Posted Aug 20, 2018 05:37 AM

    Shoichi Hi!

     

    I have performed several checks and these are the infos:

     

    1.System Currency is same as Billing Currency.

    2. Cost Rate Matrix default Currency is the same as System and Billing Currency

    3. Financial Management Defaults show System set to Multi currency

    4. Entity has the Home Currency, Default Billing Currency and Reporting Currency the same. With Source Location set to Resource and Exchange Rate Type set to Average.

    5. Currencies within the system are HRK (set everywhere to default) and one more active, which is the Euro.

    6. Exchange Rate between the two currencies is set to 7.69

    7. Cost Rate Matrix is populated with 1's for Rate, Standard Cost and Actual Cost.

    8. Cost Rate Matrix: Resource Class, Charge Code, Resource Role, Resource, Input Type Code and Transaction Class are populated with the (*).

     

    Regards,

    Jasenko



  • 10.  Re: Earned Value calculations in CA PPM, unexpected results

    Posted Aug 23, 2018 03:16 AM

    Hi Jasenko, 

     

    Please check and let me know what is the work effort unit which is getting used in the view where you are seeing the the values. For example, I am showing you how to check the same for the Project Team Staff page. 

     

     

    I am just wondering if that could be the reason of the confusion. Will be waiting for your response. 

     

    Thanks,

    Abhisek Dhar



  • 11.  Re: Earned Value calculations in CA PPM, unexpected results

    Posted Aug 23, 2018 03:46 AM

    Hi Abhisek,

    This is the screen which confuses us. Its CA PPM 15.3 and the screen is Properties-Main-Schedule, Performance & Reporting.

    The Rate Matrix is populated with 1's.

     

    The main question here is why Actuals and Actual Cost are not the same value? The other questions are of the same kind: Why are BAC and BAC Cost not the same? If every hour worked is worth 1. Same goes for ETC and ETC Cost, etc.

     

    We have only 1 row in the matrix with 1 value (of 1).

     

    The numbers were calculated yesterday and all the jobs were run (those that get mentioned in this context).

     

    Does anyone know which table(s) in the database should we lookup to see which actual cost rates the system is taking for these calculations?

     

     

     

    The one who solves this puzzle gets free lunch on the next conference we attend together. 

     

    Best regards,

    Jasenko



  • 12.  Re: Earned Value calculations in CA PPM, unexpected results

    Broadcom Employee
    Posted Aug 27, 2018 01:43 AM

    Ideally, you should check for the current values for the NBI_PROJ_RES_RATES_AND_COSTS table for that project (these might have changed since the time the timesheets where posted so they can help us find something that does not look correct at the moment, not in the past).

    This will show you the rates applied for project, resource, task... See if they match your expectations (=1).

     

    Regards



  • 13.  Re: Earned Value calculations in CA PPM, unexpected results

    Posted Aug 27, 2018 10:09 AM

    Hi Jasenko, 

     

    I can understand that you were expecting Actuals and Actual Cost columns to have the same value as the rate was set to 1 for all the resources. 

    But that is something that you have set for every hour, right? I am assuming that your Work Effort measure is not HOURS for this project, but FTE (=8 hours). 

     

    So please check that. For example, in the above screenshot I could see ETC=243.61. ETC Cost is 1948.87. 

    Now 1948.87/243.61 = 7.999958 

     

    Hope you got my point now. 

    Thanks,

    Abhisek Dhar



  • 14.  Re: Earned Value calculations in CA PPM, unexpected results

    Posted Aug 27, 2018 10:59 AM

    Hi Abishek,

     

    Yes, I was expecting to have Actuals and ACWP the same. But not only those...EAC and EAC Cost, BAC and BAC cost...The only one which displays an almost relation of 8 to 1 is the ETC Cost and ETC relation.

     

    I didn't quite understand this sentence: "But that is something that you have set for every hour, right?"

     

    Regarding the Work Effort HOURS or DAYS setting, I do get your point, but I have nowhere found where this is set for the Project Properties - Main - Schedule, Performance & Reporting screen. This screen does not have the settings wheel on it. 

     

    And the attributes on the Object Project do not have this option either. 

     

    Object Project - Project Properties - Fields...example of ACWP:

    Would you please be so kind and show me where I can change this setting, so we can test your proposed solution out.

     

    Thank you in advance.

     

    Best Regards,

    Jasenko



  • 15.  Re: Earned Value calculations in CA PPM, unexpected results

    Posted Aug 27, 2018 11:04 AM

    Please go to Administration --> Project Management --> Settings and see the default setting for Work Effort Unit. 

     



  • 16.  Re: Earned Value calculations in CA PPM, unexpected results

    Broadcom Employee
    Posted Aug 28, 2018 02:47 AM

    Hi Abishek,

     

    I think you are correct.

     

    I verified your assumption in my test environment.

    If I use "Default Display Unit for Work Effort" as "Hours", my sample project baseline shows same value for BAC and BAC Cost. BAC = 22 hours and BAC Cost = 22 USD.

    If I use "Default Display Unit for Work Effort" as "Days", baseline shows different value for BAC and BAC Cost.

    BAC = 2.75 DAYs (2.75 * 8 = 22 hours) , BAC Cost = 22 USD.

     

    Regards,

    Shoichi

     



  • 17.  Re: Earned Value calculations in CA PPM, unexpected results

    Posted Aug 28, 2018 02:58 AM

    Hi Abhisek!

     

    Thank you for sticking with me on this one.

     

    I have changed the Effort unit and this is the result. Everything is now in hours, but the relations are the same:

     

    As expected, everything in the Performance Effort segment got multiplied by 8.

     

    Interestingly, ETC and ETC Cost are almost identical. But the other metrics are not. Actuals and ACWP being the most interesting one. If you divide ACWP / ACTUALS = 0,2321914083741164 and the Rate Matrix looks like this:

     

     

    How did CA PPM get that factor to multiply the actuals?

     

    Regards,

    Jasenko



  • 18.  Re: Earned Value calculations in CA PPM, unexpected results

    Posted Aug 27, 2018 11:05 AM

    By saying "But that is something that you have set for every hour, right?", I meant that you have set the Rate and Cost of the Resources in the Rate Matrix based on the Hours, not by Days or FTEs. 



  • 19.  Re: Earned Value calculations in CA PPM, unexpected results

    Posted Aug 28, 2018 03:00 AM

    Abhisek,

     

    I have pasted the Rate Matrix in the above post, so won't spam here again. The matrix only contains the numbers 1. As far as I know the entries are per hour, or not? So our 1 HRK = 1 working hour.

     

    Regards,

    Jasenko



  • 20.  Re: Earned Value calculations in CA PPM, unexpected results

    Posted Aug 29, 2018 08:27 AM

    This is just for the Community people who are following this post: 

    The ACWP attribute's label was changed to Actual Cost (ACWP) and that is creating the confusion. It gives a hint that Actual Cost (ACWP) is nothing but (Actuals*Rate), which is not the case. The work effort unit was set to "Days", and when that was changed to "Hours", ETC and ETC costs were same (almost same). 

     

    This portion of the documentation will explain in details on how to calculate ACWP on a project level: 

    Calculate Earned Value, EAC, ETC, and Other Metrics - CA PPM - 15.3 - CA Technologies Documentation  

     

    If this thread is not able to solve anyone's problem, please get in touch with CA Support. Jasenko did the same and we had a detailed discussion on this. 



  • 21.  RE: Re: Earned Value calculations in CA PPM, unexpected results

    Posted Oct 21, 2019 11:10 AM
    @Abhisek ​ Abhisek

    I think you have implemented EVM and i need help on following query from my end. Could you please help on this.
    There is one OOTB job - 'Update Earned Value History' that updates table prj_ev_history with period wise ACWP, BCWS and BCWP values.

    I have gone through below document but it is not giving information about how Period wise data is calculated.

    https://docops.ca.com/ca-ppm/15-6-1/en/advanced-reporting-with-jaspersoft/pmo-accelerator-advanced-reporting-content/project-management-reports/project-earned-value

    Could you please provide us information about how these period wise data is calculated and updated in table prj_ev_history?