Project Execution

Course Objectives
Understand the concepts of following:
Project Execution over view
PS Master Data / Structure
WBS
Network
Activities
Relationship
Project Version
CATS & Progress Analysis
Period End Closing
Project Execution
Project execution done after the relevant structure is in
place for a project.
All project related activities are confirmed directly or
using CATS with PS.
Confirmation process calculates the actual cost of
conversion
Progress of the project is monitored using Progress
analysis
Master Data
Following are the master data in Project
system

WBS Elements

Network / Activities

Cost center / Profit center / Activity type

Work Break Structure

WBS is a model of a project and it

shows the activities related to the
projects to be executed in an
hierarchical form.

WBS is the functional basis for further

planning steps in a project.
Work Break Structure use

WBS enables to understand

Clear picture of projects and facilities

Co-ordination and implementation
work involved in the project

Planning, budgeting and executions are also performed

using WBS
Content of Work Break Structure

Work Break Down Structure contains

Dates
Budget information
Commitments item
Payment data
Cost / Revenues
Periodic processing

cont
Content of Work Break Structure

Dates contains
Basic date on which the project started
Scheduled dates of the project
Actual dates of each activities

Budget information contains

Content of the original budget
Update the budget details
Different releases of budget
Availability control

cont
Content of Work Break Structure

Commitments Item contains

Purchase Requisition
Purchase order related to Project

Payment Data contains

All Payments are planned
Data update of actual payment

cont
Content of Work Break Structure

Cost / Revenues contains

Planned and Actual cost
Planned and actual revenues

Payment Data contains

All Payments are planned
Data update of actual payment

cont
Content of Work Break Structure

Periodic Processing is the process of performing

calculation of over head
Calculation of process cost
interest calculation
Result analysis activity
Settlement of network
Network
Network represents the flow of project or task within the
project

All Project related activities linked in a chain using

relationship to form a network.

Using network it is possible to

Schedule the project

Perform capacity planning
Procure items
Content of Network

Network contains the following information

Internal Activity
External activity
Material
Mile stones
Cost activities
Periodic processing
Usage of Network

Network is a kind of work order similar to production

order and maintenance order.

Network is used as a
Basis for planning
Analyzing
Controlling
Monitoring Schedules
Monitoring dates and resources
Activity Element and Activity type
Activity element helps to map network
activities.

Activity elements has date reference to the

activity to which they are assigned.

Activity elements do not affect scheduling.

 Activities and Activity Elements
Four Types of Activities
Internal Processing
External Processing
Costs, services
General Cost Activities

Reference Dates from Activity

Start or Finish

Activity Elements
Work
External
Costs
Service
Relationships
It determines the chronological order of the
individual activities in a network.

Relationship can be displayed in time

dependently in the network structure graphics.

By default all standard relations are FS

relationship in the network structure.
 Relationships
Logical Sequence Time Sequence

FS - Relationship

SS - Relationship

FF - Relationship

SF - Relationship
Other Master Data

Cost Center represents the organizational unit in

controlling. E.g. each department can have its own cost
center. With department wise const center, it is possible
to plan and monitor their own yearly budget and
expenses.

Profit Center is for internal control represents

management oriented structure from accounting point of
view. E.g. Profit center can be by divisions, product
group etc.

Activity type define the activity that can be provided by

the cost center. E.g. Work activity, Machine hour.
Milestones
Milestones are events that are particular
significance or importance to the project
flow.

Milestones are assigned individual WBS

element or network activities

Milestone triggers particular action

when appropriate event is reached.
Milestone Group
It is possible to create milestone group
by grouping different individual
milestones.

Milestones are used for milestone trend

analysis also.
Project Creation
There are different ways to create a
project.

Direct Method

Indirect Method

Procedural Method
Direct Method Project Creation
Use Project Builder to create or change objects in the
project. Following list of object can be handled in project
using project builder

Project Definition

WBS element

Activities / Activity elements

PS Text / Documents / Milestones

Indirect Method Project Creation
In this method, projects are created from
appropriation Request .

Simulation also can be used to create

simulation version to see what if
situation.
Procedural Method Project
Creation

In this method, projects are created from

a template or from existing project.
Project Builder
It is a user friendly tool in project system.

It is used to create / edit a WBS or Network

collectively or individually

WBS / Network can be viewed in different

views while editing using project builder
WBS & Network Comparison
WBS
Cost Control and Reporting
Reflects Ownership

NETWORK
Work Control
Reflects Execution
 Versions in Project
Following are the list of important versions in Project system

Simulation version

Project Version

CO Planning Version
Simulation Version
Simulation version is the one which can be
changed.

Simulation version is created during

quotation phase and to draw up alternate
planning scenario for an existing operative
project.
Creation of Simulation Version
Simulation versions are used to draw up alternative "what if?"
planning situation. They are created manually, can be
changed and deleted easily

When an operative project is copied to a simulation version

(or vice versa), a log file is created which contains the objects
that were transferred and any error messages that were
issued.

Simulation versions can be created either for an entire WBS,

or for sub-hierarchies of a WBS.

Simulation versions are edited using the project planning

board or using the Project Builder.
Use of Simulation Version
At the beginning of a project, you can use simulation versions to
simulate projects before you actually transfer them to an operative
project.

Simulation versions are particularly useful during the quotation phase

and for comparing different "what if?" scenarios. It is possible to plan
several simulation versions. One can then decide the suitable
version.

Even while a project is running, one can copy operative projects to

simulation versions, analyze and work with these, and then transfer
them back to the operative project. The system can conduct a test
run to see if it is possible to transfer a project or simulation version.

Note:- If it is desired to work with simulation versions, create

simulation profiles and version keys in PS Customizing.
Project Version
Project versions are snapshots of a project at
a specific point, and are used for documenting
the progress of a project over time.

Both quantities and values are stored in

versions.

Project versions are created either manually,

or automatically.
CO Planning Version
CO planning versions are used to plan costs and
revenues.

It is possible to copy values from one version to

another.

One can change planned values manually in every

version - the costed values are retained.
CATS Cross Application Time sheet
CATS is an integrated function for entering actual
times, which are important in HR, PS, PM, SM,
CO.

Report programs pass on the released (and, if

required, approved) data to the various
applications.

The actual times may be important for various

applications at the same time. The data is
transferred to the respective applications.
Prerequisites for Time sheet

Following are the prerequisites

An internal activity must have been assigned to the project

An individual plan been planned against the project at the initial planning
stage.
 Progress Analysis
Progress analysis is the tool used to determine
planned and actual project progress values, and to
compare the two sets of data.

The system uses the overall planned costs to

evaluate the work done.

Progress analysis is best used on projects where:

Time is critical
Many work packages have been planned
 Period end processing
Project System has two kind of period end
processing.

Month End processing

Project closing
 Month end processing
Actual costs and actual revenues arise in a project or order as a
result of:
1. Material withdrawals and goods receipts
2. Vendor invoices
3. Customer billing
4. Internal activity allocations, transfers, cost distribution,
process costs, overheads
5. Confirmation of network activities
 Settlement processing
In settlement, costs/revenues are transferred to:
Financial Accounting (G/L account)
Asset Accounting (fixed asset)
Cost Accounting/Profitability Analysis (order, cost center,
profitability segment)
Project System (WBS element, network, activities)
You need a settlement rule to carry out settlement. Define
the settlement rule in the sender object.
The settlement rule contains the distribution rules and the
settlement parameters for a sender object.
 Settlement Rule
The activitys settlement rule is automatically
determined by the assigned WBS element.

The WBS settlement rule is automatically

determined for Assets Under Construction, and
manually entered for final assets and cost centers
(in the case of expense type projects)
 Periodic Settlement Processing
A Periodic Settlement to AUC B Final Settlement to Fixed Assets

Asset Final
Under Asset
Construction
 Project Closing
Final Settlement
from AUC to Assets

Reduce released
budget

Return Original Budget

To level 1 WBS

Return Budget
To IM

Delete unused WBS Clear Project Update all WBS

Elements Stock Elements to TECO

Close project Perform Budget

definition Return check
 Summary

You must be familiar with

Project Execution over view
PS Master Data / Structure
WBS
Network
Activities
Relationship
Project Version
CATS & Progress Analysis
Period End Closing process