Project System - Overview

Project Structure

 Work Breakdown Structure

Hierarchically structured elements to
build up project organization and enable
top-down/bottom-up scenarios for project
management (time, costs, resources), as
well as assignment of all kinds of related
objects, esp. activities.
 Activities (Network)
Chains of activities linked via
relationships provide network technique
to model the projects’ process flow and
allow typical functions like scheduling,
capacity planning, or procurement on
them.
 Milestones
Key dates assigned to the WBS or to
activities to trigger subsequent functions.

Idea & Planning & Project

Closing
Concept Approval Execution
Contents

Organizational Structures and master data used in Project

Systems

Master Data created in Project Systems:

 Project Definitions
 WBS Elements
 Networks
 Network Activities
 Document Info Records

Status Control
 Project Definition and Work Breakdown Structure

Project Definition

Work Breakdown Structure

WBS Elements
Project Definition

 Project Definition establishes the identity of the project.

 Contains organizational information which is binding to the
entire project such as Controlling area and Company
code.
 Describes the overall project start and finish dates.
 Contains the technical settings used to control the project.
 Contains the Project Coding mask which is used as part of
the project numbering logic.
WBS Element

 Work Breakdown Structure (WBS) elements break

down the entire project into manageable frameworks
based on project responsibilities.
 WBS element forms hierarchical structure which
describes the overall project.
 WBS elements can describe project responsibilities,
Project Team, Dates, Cost estimates and Project
Documents.
 WBS element is used to plan cost estimates, schedule
the overall project and record actual expenses &
monitor progress.
 To uniquely identify each WBS element, it is codified
with predefined logic.
 What are Work Breakdown Structures used for?

Planning:
Dates:
 Planned Costs  Basic Dates
 Scheduled Dates
 Actual Dates

Periodic Processing:
“WBS Structure”

 Settlement
Commitments:

 Purchase Requisition
 Purchase Order
Execution:

 Actual Costs
 Progress Analysis
Contents

Organizational Structures and master data used in Project

Systems

Master Data created in Project Systems:

 Project Definitions
 WBS Elements
 Networks
 Network Activities
 Document

Status Control
 Network Header and Activities

Network Header

Network

Network Activities
Network

 Network contains a list of activities to be processed in

order to achieve the project goal.
 Network is used for planning, scheduling, controlling &
monitoring of dates and progress.
 You can create one network for the entire project or one
network for each WBS element.
 Each Network is uniquely identified with its number.
Network number is usually system generated. (Internal)
Network Activity

 Network activities break down the project into executable

packages.
 Each activity has duration, resources and cost assigned to
it. Progress monitoring is possible.
 Only Internal Activity Types are used at QP.
 You can allocate Documents, Material, PRT for each
activity to describe it in detail.
 Initiation of the material procurement process by creation
of PR, is possible with network activity.
 Each Activity is assigned to Network & WBS element.
Activities and Networks - Functions

Internal Activity:

 Internal Work
 Dates, Capacities
Periodic Processing:  Costs
Mar
 Settlement April

“Network”

Material:

 Dates
 Costs
 Commitments
 Procurement

Purchase
 Project-oriented Procurement
order Assignment of components or whole
BOMs either manually or via an interface
triggers procurement of the following:
internal/ external, stock/project stock/non
stock, via MRP/direct procurement, as
Production service order, WBS assigned orders.
order
Services  Project-oriented Production
Multi-level assembly/production of
components/products within the project
Order
Order
Order  Seamless Integration/Workflow
Service Project planning (i.e. scheduling, release)
Components order does directly influence the procurement
process. Costs for components/ procure-
BOM
ment runs into the project calculation.
 Powerful Progress Tracking

Idea & Planning & Project

Closing
Concept Approval Execution
 Costs

Structural Cost Planning  Structural Cost Planning

Top Down / Bottom Up
€ 1.200
€ 400 € 200 € 600
Easy Cost Planning
template based calculation
 
Network Calculation
Duration / Work * Rate/H
Procurement / Cost Activities
Invoice
plan Strong hierarchy of WBS-Elements can be
used to plan costs in a top-down- as well as
in a bottom-up-procedure. For this, the
detail can vary from overall to periodical
values, also on a cost element level.
Order  Easy Cost Planning
assignment
Predefined calculation templates presented
in a highly configurable, HTML-based user
interface provide an end-user focused
easy-to-understand environment.
Service  Network Calculation
order Internal & external work, services, costs
and procurement planned in the activities
are automatically calculated.
 Costing through Assigned Orders

Idea & Planning & Project

Closing
Concept Approval Execution
 Revenues

Structural Revenue Planning

Sales Order
 Structural Cost Planning
Top Down / Bottom Up
assignment Revenues, like costs, can be planned direct-
€ 1.200
ly within the WBS hierarchy on various levels.
€ 400 € 200 € 600  Project/Sales Order Billing Plan
The billing plan provides revenue planning by
Project Billing Plan percentage or as overall values either via the
assigned directly in the WBS Sales Order project or the sales order.
Billing Plan
30 % € 400  Milestone Billing
70 % € 200 Dates and progress of milestones are used to
trigger the billing procedure.
Milestone Billing
Project progress triggers  Resource-Related Sales Pricing/Billing
the billing procedure Resource Planned resources are used to feed the
related sales
pricing / billing projects sales price calculation. During
execution, actual costs can be used to derive
the billing. The flexible and easy-to-use
Dynamic Items Processor supports this.

Idea & Planning & Project

Closing
Concept Approval Execution
 Budget

Project Cost Plan

Original Budget

Budget Released Budget

!
Approved Budget
+ Supplements
Availability
Yearly - Returns Control
Budget

 Project Budgeting along the Work Breakdown Structure

The projects’ cost plan as well as an assigned Investment Program* are the basis for
deriving the original budget. After the approval, this can be used to control the budget
availability against the expenditures during the execution phase. Additionally, the original
budget can be broken down into smaller packages of released budget to allow an even
more accurate availability control. All budgets can be planned by year or as overall values.
 Budget Updates during Execution
Once the budget is approved, changes can be tracked to keep them under control.

Idea & Planning & Project

Closing
Concept Approval Execution
 PS Integration Points Animation

Investment Position

II M
M
Plan Ver 0 150
Funds Management FI
FI

Budget 100
FM
FM

 WBS Element 
PS
PS CO
CO
Plan Budget Comm Act Assign
Assign
C541.0708.30.20.10 150 100 20
50 40 90
20
50 Monthly Cost Center
Settlement
User Status Actual / Plan
Non Routine
EXECUTION
Projects ONLY

System Status

CRTD REL
FI-AA
FI-AA
Final
Settlement
60%
Network Asset 1
AUC
0010

0020 40%

  
Invoice/ MM
MM Asset 2
HR
HR FI
FI Travel Mgt
Material CRD and ES
ES
PR/PO Rel. Order
 Progress

Progress Analysis  Progress Analysis/ Earned Value

 Cost-to-Complete
Milestond
Trend
Cost-to-Complete
Analysis
 Milestone Trend Analysis

Progress Tracking

  Progress Tracking
X
X

Multi Project Reporting Data Warehouse

Project Information System
Alternative Hierarchies Profitability Analysis