Some Important PS Terms

Project Definition

Project Definition is general description of the project that you want to manage. It is a framework laid down for all the objects created within a project. It contains organizational data that is binding for the entire project.

Work Breakdown Structure (WBS)

WBS is a hierarchical model of the tasks to be performed in the project. It provides overview of the project and forms basis for the project organization and coordination.It shows work, time and money spent on the project. You can use it to plan dates & costs and allocate budget. The Work Breakdown Structure can be displayed according to:

                            · Phase

                            · Function

                            · Object

Individual tasks required to carry out the project is called WBS elements.

Network

The network describes project processing. Thus the Network contains instructions on how to carry out activities in a specific way, in a specific order and in a specific time period.Main elements of network are activities and relationships. It forms the basis for planning, analyzing and monitoring time schedules, costs, & resources.

Activities

Activities are used to plan project staffing, capacity, material, PRTs, and service requirements. When activities are assigned to WBS elements, detailed view of costs, dates, and capacities at WBS element could be obtained. It’s a task in a network which has a defined start and finish. An activity can be broken down into activity elements.Three categories of activities in the Project System:·

                               · Internal Activities 

                               · External Activities

                               · General Cost Activities

Activity element

Activity element is an activity which is subordinate to another activity. Activity elements contain the same information as activities.Three categories of activity elements in the Project System:

                               · Work elements

                               · External Elements

                               · General Cost Elements

Activity Type

It’s a physical measure of activity output of a cost center .e.g. hours, number of units produced, machine times, production times.

Milestones

Milestones are the events in the project to which particular importance is attached Or which trigger predefined functions. In general they indicate transition between different departments or phases. Milestones are assigned to activities and WBS elements:In PS milestones are used to:

               · Trigger predefined functions in network activities.

               · Carry out earned value analysis.

               · Determine dates in billing plan for sales orders.

Relationships

You use relationships to depict chronological and technical dependencies between activities. The relationship determines the nature of the link between the individual activities. :

              · FS Relationship : An activity does not start until the preceding activity is completed.

              · SS Relationship : An activity can not start unless another activity has started.

              · FF Relationship : An activity can not be completed until another activity has been completed.

              · SF Relationship : An activity can not be completed until another succeeding activity has stared.

Confirmations

It is a part of network control. It documents the state of processing for the network activities and activity elements. There are two types of confirmations Partial & Final.Confirmations are used to record:

            · The work center where the activity was carried out.

            · The person who carried out this activity.

            · The yield and scrap produced in an activity.

            · The actual values for the duration and dates.

Settlement

As a rule, projects are used to collect and monitor costs, but are not usually the final cost object. For this reason the costs in atypical project will be settled at the end of the period.To this end, you store settlement rules in the activity / WBS element requiring settlement. They contain information on settlement receivers, cost apportionment and control data. Settlement receivers could be cost centers, G/L accounts. Etc.

Budget

The budget is the approved cost structure for an action or project in a particular period.Budgeting differs from cost plan in that it is binding. In the approval phase you prescribe your project funds in the form of budget. It is possible to allocate overall and annual budget in parallel.

Work Centers

Work center represents the resources responsible for executing an activity. In a work center, you can enter the available capacity and an operating time. You can arrange the work centers in a hierarchy for capacity evaluation purposes. Internal activities are assigned to work centers (resources) to be completed.A work center is a physical unit within a company where an activity is performed.

Profit Center

It is subdivision of business organization which is set up for internal management control purposes. Profit centers divide business up on a management basis. The basic aim of profit center accounting is to present areas of the business as entities operating independently in the market.