PROJECT MANAGEMENT Course Assignment REVISION 19

PROJECT MANAGEMENT Course Assignment REVISION 19

COPYRIGHT 1997 BY QMUZIK All rights reserved. The contents, nor any part thereof, nor the format, the configuration or any other aspect thereof may be copied, transformed, reworked, reverse engineered, stored or transmitted, irrespective of the mode or method thereof, or in any other way be dealt with other than only with the express prior written permission of QMuzik.

PROJECT MANAGEMENT PROCESS CREATE WBS Node Mng ADD NODES Node Mng SHIP CUSTOMER ORDER Milestone Mng DT COS CT WIP ACCOUNT Realtime Journals DO LABOUR BUDGET FOR NODE Node Mng COST CENTRE APPROVED LAB NODES Cc Mng DO MATERIAL BUDGET Node Mng Perform a Node Material Budget Roll Node Reports Node Analysis Node Structure Overview ADD CUSTOMER ORDER Milestone Mng PROCESS REQUISITIONS PROCESS CASH CLAIMS, ISSUE STOCK, RECEIVE PO s, ETC Project Personnel FIRM NODES Perform a Partial Shipment Node Number Search DT CT. WIP ACC CREDITORS BANK, STOCK, ETC Node Mng Real Time Journal APPROVE & RELEASE NODES PROCESS TIME SHEETS CC TIME SHEET APPROVAL PROJECT TIME SHEET APPROVAL Milestone Mng Cc Employees Cc Mng Node Mng DT WIP ACC CT LABOUR RECOVERY ACCOUNT Real-time Journals

INTRODUCTION The Project Management Course addresses the subject of Project Management as applied in the System. The Project Management functionality is seamlessly integrated with all other functionality (i.e. Creditors, Debtors, Inventory, General Ledger etc.). In this course you will learn to set up a project, do budgets, accumulate costs and ship the project. Partial Shipments and Budget Rolls are also addressed. The interaction with line management is also illustrated in this course. Please read the Important to Know section before moving to the detail exercises. Objectives: You will learn how to: EXERCISE 1 : Add the nodes for the Work Breakdown Structure EXERCISE 2 : Add Node Structure EXERCISE 3 : Navigate through the Node Structure EXERCISE 4a : Add a Material Resource EXERCISE 4b : Add a Material Budget EXERCISE 5 : Add Labour Resources EXERCISE 6 : Add Employee Rates EXERCISE 7 : Add a Labour Budget EXERCISE 8 : Add a Non-Stock Customer Order EXERCISE 9 : Change Node Status to Released EXERCISE 10 : Approve Time Sheets (Node Manager) EXERCISE 11 : Perform a Node Material Budget Roll EXERCISE 12 : Set the Percentage Complete for the Nodes to 100% EXERCISE 13 : Perform a Partial Shipment EXERCISE 14 : View Node Budget Commitments and Actuals EXERCISE 15 : Node Structure Overview EXERCISE 16 : Node Number Search EXERCISE 17 : Node Reports EXERCISE 18 : Node Analysis EXERCISE 15 : Access Reports APPENDIX A : Presenter s Notes APPENDIX B : Project Management Journals Example APPENDIX C : Understanding BCWS, LCWS, ACWS and Commitments Revision 19 : 16 August 2005 Page 1

APPENDIX D : Creating Multiple Baselines (Budget Scenario s) IMPORTANT TO KNOW The following settings on the System Configuration function govern the working of Project Management functions. Please study the online help for these settings. Decimal Movements Allowed Hand Journals For Nodes Allowed Labour Overspend Tolerance Max % Labour Rate Max Material Overspend Tolerance Max % Node Budget Adjustment Max Future Months Node Budget Adjustment Max Retrospective Months Node Budget Run After (time) Node Budget Run Before (time) Node Timesheets Allowed In Closed Periods Timesheet Cutoff Days Timesheet Cutoff Frequency The following settings on the Division function govern the working of Project Management functions. Please study the online help for these settings. Default For Node Budget Checking Division Controls Node Budget Node Partial Shipment Differential COS Allowed Node Partial Shipment COS Node Partial Shipment Sales Node Maintain GPM% When Partial Shipping Node Provisioning Accounts Node COS Variance Journals Base Node Differential COS Per Node Allowed Allow Nodes Projects Maximum Labour Overspend Tolerance Projects Maximum Material Overspend Tolerance Projects Maximum Labour Overspend Value ($) Projects Maximum Material Overspend Value ($) Node View Available Timesheet Hours Enforce Timesheet Complete Automate Timesheet Approval Timesheets In Advance Stock Disposition Default Enforce Stock Disposition Default Revision 19 : 16 August 2005 Page 2

The following rules on the Cost Centre function govern the working of Project Management functions. Please study the online help for these settings. Node Manager Down Adjust Labour Budget Allow Rescheduling of Approved Labour Budget Participate in Timesheet Approval Project Management Accounts for the CC Current Rates per Cost Centre per Financial Period Accounts The following functions should be part of security profiles to be able to work through this course. COST CENTRE LABOUR BUDGET CUSTOMER NON STOCKED CUSTOMER ORDERS EMPLOYEE INFORMATION LABOUR BUDGET LABOUR RESOURCE MATERIAL BUDGET MATERIAL RESOURCE NODE NODE ACCOUNT MAINTAINER NODE ANALYSIS NODE BUDGET COMMITMENTS AND ACTUALS NODE BUDGET ROLL NODE EMPLOYEE RESOURCE NODE MILESTONE NODE MILESTONE CHANGE NODE NETWORK NODE NUMBER SEARCH NODE PROGRAM NODE PROGRAM MAINTAINER NODE REPORTS NODE SCHEDULE MAINTAINER NODE SHIPMENT NODE SHIPMENT MAINTAINER NODE SIMULATION NODE STRUCTURE OVERVIEW NODE VIEW AUTHORISATION PROJECT GROUPS PROJECT PART REQUIREMENTS PROJECT REQUIREMENTS VIEW PROJECT SERIAL NUMBER RANGE TIMESHEET TIMESHEET APPROVAL TIMESHEET APPROVAL VIEW TIMESHEET CAPTURER TIMESHEET TYPE Revision 19 : 16 August 2005 Page 3

EXERCISE 1 ADD THE NODES FOR THE WORK BREAKDOWN STRUCTURE Use the Node function to add the work breakdown structure in Figure 1.1. There is no limit on the number of levels in a Work Breakdown Structure. FIGURE 1.1 WORK BREAKDOWN STRUCTURE Parent Child MILESTONE ENGINEERING MODULE PROGRAM DEVELOP ERP SYSTEM COST LIMIT R90 000 END DATE XX/02/02 Parent Child MILESTONE FINANCIAL MODULE COST LIMIT R47 000 END DATE XX/02/02 NODE NUMBER Parent Parent NODE NO Child Child Child WORK AUTHORISATION WORK AUTHORISATION WORK AUTHORISATION PART MASTER FUNCTION DEVELOPMENT COST LIMIT END DATE R40 000 XX/02/02 MATERIAL R 2 000 Parent LAB R PRODUCT STRUCTURE DEVELOPMENT COST LIMIT R7 000 MATERIAL R 2 000 END DATE XX/02/02 LAB R5 000 COST LIMIT R43 000 FINANCIAL DEVELOPMENT COST LIMIT R43 000 MATERIAL R 3 000 Child Child Child ACTIVITY ACTIVITY ACTIVITY PLANNING DATA ENGINEERING DATA LSA DATA COST LIMIT R10 000 MATERIAL R NODE NUMBER END DATE XX/02/02 LAB R10 000 NODE NUMBER NODE NUMBER COST LIMIT R23 000 MATERIAL R END DATE XX/02/02 LAB R23 000 NODE NUMBER R5 000 MATERIAL R NODE NUMBER NODE NUMBER NODE NUMBER END DATE XX/02/02 END DATE XX/02/02 LAB R40 000 END DATE XX/02/02 LAB R5 000 Revision 19 : 16 August 2005 Page 4

FIGURE 1.2 NODE ADD Do not enter a node number, the system will allocate a node number in the information box when a node is added. (Depends on number control setting) Ensure that you write down the node number below the appropriate node on your work breakdown structure. Make sure that the Node Type (Program, Milestone, or simply Node) is correct. TIPS: The purpose of the start date is to indicate when all relevant activities should start referring to the material and labour budget. The start date can only be < or = the end date. Milestone Nodes usually represent expected payments. A Milestone Node can be shipped and invoiced as an entity. The cost limit of children nodes may not exceed the cost limit of the parent node. The available amount for budgeting on a node, is the cost limit on the node minus the cost limit of its children s nodes. The end date of children nodes may not be later than the parent node. Ask your Presenter for a valid Division and Product. Use the first three characters of your name or surname as Grouping Code for this exercise. Make yourself the Node Manager. Follow the steps in Figure 1.2 to add a node. FIGURE 1.3 EMPLOYEE RESOURCE ADD This optionaly specifies the resource requirements and rates per node. See also the settings on the Labour Resource function. Revision 19 : 16 August 2005 Page 5

EXERCISE 2 ADD NODE STRUCTURE On completion of adding all the nodes in the Work Breakdown Structure, click on the Structure tab of the Node function to link the nodes in a Work Breakdown Structure. FIGURE 2.1 NODE STRUCTURE ADD NOTE: Click Authorise to Approve to give the child Node Manager the necessary authorisation to approve expenditures against his node. Budget Checking: If clicked, it indicates that expenditures against this node will only be allowed if a budget exists for it. Step 5: Select all the nodes that are immediate children to the parent node selected in step 1. Follow the steps in Figure 2.1 to add a node structure. TIP: When budget check = yes and labour budget has been created and the node status is changed to firmed, the cost centre manager will receive mail to cost centre approve the applicable budget. Revision 19 : 16 August 2005 Page 6

EXERCISE 3 NAVIGATE THROUGH THE NODE STRUCTURE Use the Navigate tab from the node function to display the node structure you have added. FIGURE 3.1 NODE STRUCTURE Make sure the authorisation and node types (Program, Milestone, etc.) are correct. Follow the steps in Figure 3.1 to navigate through the node structure. Revision 19 : 16 August 2005 Page 7

EXERCISE 4a ADD MATERIAL RESOURCE Use the Material Resource function to add a resource. A Material resource is an expenditure and budgeting item. Grouping codes and is completely user defined. All budget items, except internal labour, is budgeted for Against a Material resource (including equipment, subcontractor, transport etc.). FIGURE 4.1 MATERIAL BUDGET ADD NOTE: Add a Resource. Indicate the type of requisitions allowed against the resource. The type of Requisition specifies the type of expense allowed against the Resource. Description is mandatory to Material Resources. EXERCISE 4b ADD A MATERIAL BUDGET Use the Material Budget function to add a material budget. FIGURE 4b.1 MATERIAL BUDGET ADD NOTE: The available to budget counter, is constantly updated providing visibility on the amount available to budget. The budget sheet provides a financial year view. To see a different financial year view change Financial Year in step 2 LCWS represents the latest budget and BCWS the baseline budget. Follow the steps in Figure 4b.1 to add a material budget. Revision 19 : 16 August 2005 Page 8

EXERCISE 5 ADD A LABOUR RESOURCE Labour Resources are specific labour groupings for budgeting purposes i.e. Technicians, Electrical Engineers, Project Managers etc. Use the Labour Resource function to add labour resources Planner, Application Specialists and Designers: FIGURE 5.1 LABOUR RESOURCE ADD NOTE: Follow the steps in Figures 5.1 to 5.2 to add a labour resource. Step 3: Specify which Hourly Rate must be applied for the Labour Resource. NOTE: FIGURE 5.2 LABOUR RESOURCE ADD Enter the hourly labour rate against which the Labour Resource will be costed depending on the setting in step 3 in figure 5.1. Rates can also be specified for Cost centres and Employees. Click on the third tab to enter employee resources. Revision 19 : 16 August 2005 Page 9

FIGURE 5.3 EMPLOYEE RESOURCE ADD NOTE: Enter the hourly labour rate against which the Employee will be costed depending on the setting in step 3 in figure 5.1. Rates can also be specified for Cost centres or Employees. Revision 19 : 16 August 2005 Page 10

EXERCISE 6 ADD EMPLOYEE RATES NOTE: FIGURE 6.1 ADD EMPLOYEE RATES Enter the hourly labour rate against which the Employee will be costed. Rates can also be specified for Cost centres and Labour resources. the System will use the rate specified on the Labour Resource function. Follow the steps in Figure 6.1 to specify an hourly rate for an employee. Revision 19 : 16 August 2005 Page 11

EXERCISE 7 ADD LABOUR BUDGETS Internal Labour is budgeted for using the Labour Budget function. Add labour budgets. FIGURE 7.1 ADD LABOUR BUDGET Use cost centres supplied by presenter. Use only labour resources supplied by presenter. The first tab displays a summary of budgets to date for the Node and financial year selected. Follow the steps in Figures 7.1 to 7.3 to add labour budgets. Revision 19 : 16 August 2005 Page 12

FIGURE 7.2 ADD LABOUR BUDGET NOTE: Enter your Labour Budget according to the values in Table 7.1. The Resource tab is used to budget non-employee specific. FIGURE 7.3 ADD LABOUR BUDGET NOTE: Enter your Labour Budget according to the values in Table 7.1. The Employee tab is used to budget employee specific. The employee could be from an outside organisation (contractor) Also see Employee Information(External organisation field) Revision 19 : 16 August 2005 Page 13

EXERCISE 8 ADD A NON-STOCK CUSTOMER ORDER Use the Customer Order function to add a non-stock customer order line. To be able to spend and ship a node, a non-stock customer order line must exist. This is true for invoicable (done for external customers) and non-invoicable (internal) projects. FIGURE 8.1 ADD THE HEADER OF A CUSTOMER ORDER Make yourself the sales person. Use the same division you used on your nodes. Ask your presenter for a valid Customer. Follow the steps in Figures 8.1 to add the header of a customer order. FIGURE 8.2 ADDING A CUSTOMER ORDER LINE Use the same product code you used on your nodes. Ask the presenter for an account. Completion date must be > or = the program node end date. Follow the steps in Figure 8.2 to add a non-stock customer order line. Revision 19 : 16 August 2005 Page 14

FIGURE 8.3 PROJECT CASH FLOW Specify when payments are to be expected against a customer order for cash flow management purposes. Revision 19 : 16 August 2005 Page 15

EXERCISE 9 CHANGE NODE STATUS TO RELEASED Use the Node function to change the status of all nodes, except the program node, to Released. First change the status from Planned to Firm, then from Firm to Approved, and finally from Approved to Released. The status is typically changed to firm, when the Project (Node) Manager feels that the budget is completed. The status is changed to Approve to create a Project (Node) baseline (Referred to as BCWS). The status is changed to Released to open the Node for expenditure. FIGURE 9.1 CHANGE STATUS TO RELEASED Open the node function and click on the navigate tab. Enter your program node number and explode the structure (open the structure completely). Click on the approval tab and change the status of your nodes from Planned to Firm, then from Firm to Approved, and finally from Approved to Released. Make sure that the cost centre manager has approved the labour budgets before you Approve the nodes. Release the milestone nodes before you attempt to release the milestone s children nodes. Follow the steps in Figure 9.1 to change the status. Revision 19 : 16 August 2005 Page 16

EXERCISE 10 PROCESS AND APPROVE TIME-SHEETS (NODE MANAGER) Allocating actual labour expenditure to a Node is done via a timesheet. Use the Time-Sheet function to add time sheets for cost centre 588. FIGURE 10.1 ADDING TIME-SHEETS Ask your presenter to approve and process time sheets as cost centre manager using the Cost Centre Timesheet Approval function. Follow the steps in Figures 10.1 to add time sheets. The Budget button is used when booking time sheets against nodes without budgets. (Budget Checking = NO) the System will create a budget equal to the timesheet amount. A Timesheet entered is regarded as a commitment (expected expenditure) until approved by the Node Manager. Use the Node Time-Sheet Approval function to approve time sheets already approved by the cost centre manager (presenter). When the Project Manager approves, journals are produced crediting the cost centre that performed the work and debiting the division s work in progress account. If the division s work in progress account is not to be debited, specify the alternative accounts on the node itself. FIGURE 10.2 NODE TIME-SHEET APPROVAL NOTE: Follow the steps in Figure 10.2 to Approve a node time sheet. Revision 19 : 16 August 2005 Page 17

EXERCISE 11 PERFORM A NODE MATERIAL BUDGET ROLL Unused Material and Labour Budgets can be rolled over to different financial periods and even different resources using the NODE BUDGET ROLL function. If budgets are not moved, the unmoved money will remain unused money in the project. Only available budgets (LCWS Commitments and Actual Costs (ACWS)) can be rolled over. Note: Budgets can also be moved manually with or without the Node Budget Adjustment function. Budgets can not be moved from one node to another. The New settings on System Configuration: Node Budget Adjustment max retrospective months and Node Budget Adjustment max future months limit the time from and time to for budget rolls. Use the Node Budget Roll function to move material budgets. FIGURE 11.1 SELECT NODE(S) Follow the steps in Figure 11.1 to select the node(s) to be updated. FIGURE 11.2 DISPLAY NODES Follow the steps in Figure 11.2 to select applicable material resources. Revision 19 : 16 August 2005 Page 18

FIGURE 11.3 SELECT NODES AND DO ROLL Follow the steps in Figure 11.3 to do the roll. FIGURE 11.4 VIEW HISTORY Follow the steps in Figure 11.4 to view history. The Node Budget Roll for Labour, using the LABOUR DEFAULTS Tab, works the same way as The MATERIAL DEFAULTS Tab. Revision 19 : 16 August 2005 Page 19

EXERCISE 12 SET PERCENTAGE COMPLETE TO 100% Nodes have to be completed before they can be shipped. Use the Node function to set all nodes including the milestone nodes, to 100%. Children nodes must be completed before the parent node. FIGURE 12.1 SET NODE PERCENTAGE COMPLETE TO 100% All time sheets must be Node Manager approved and requisitions completed before the node can be set to 100%. When finished, ask the presenter to ship the order line for your milestone node. Follow the steps in Figure 12.1 to set the node percentage complete to 100%. Revision 19 : 16 August 2005 Page 20

EXERCISE 13 PERFORM A SHIPMENT The Node Shipment function is used to ship a milestone completely or partially. The Project (Node) manager can therefore ship a Program Structure (NODE Structure) before it is completed. The sales, cost of sales and work in progress accounts are journalised to financially reflect the (partial) shipment. Various options exist to control the Sales and Cost of Sales ratios compared to the Node percentage complete. The function automatically reconcile the sales, cost of sales and work in progress when multiple partial shipments are done against the same customer order line. Study the online help regarding the settings before doing the shipment. FIGURE 13.1 NODE SHIPMENT NOTE: Follow the steps in Figures 13.1 to ship a node. Note how the function suggests the sales and cost of sales amounts based on the divisional settings. View the amounts and percentages. Revision 19 : 16 August 2005 Page 21

EXERCISE 14 VIEW NODE BUDGET COMMITMENTS AND ACTUALS The Project (Node) manager can at all time monitor the financial situation of Nodes. The Node Budget Commitments and Actuals function is used to inquire into budgeted, commitments, available and actual amounts. The financial information is available real time to prevent surprises. The function allows a drill down right down to detail transaction level. FIGURE 14.1 VIEW NODE BUDGET COMMITMENTS AND ACTUALS NOTE: Follow the steps in Figures 14.1 to 14.3 to view node budget commitments and actual costs. FIGURE 14.2 VIEW NODE BUDGET COMMITMENTS AND ACTUALS Select the financial development node. Click on the Period Breakdown tab. Revision 19 : 16 August 2005 Page 22

FIGURE 14.3 VIEW NODE BUDGET COMMITMENTS AND ACTUALS Click on the ACWS value. Click on the Commitments/ Actuals tab. Describe what you see. FIGURE 14.4 VIEW NODE BUDGET COMMITMENTS AND ACTUALS Revision 19 : 16 August 2005 Page 23

EXERCISE 15 NODE STRUCTURE OVERVIEW The Node Structure Overview function provides a bar-chart representation of the project status. By clicking on the calendar bar the time scale can be imploded or exploded. FIGURE 15.1 NODE STRUCTURE OVERVIEW The yearly output should resemble Figure 15.1. Follow the steps in Figure 15.1 to do a node structure overview. Revision 19 : 16 August 2005 Page 24

EXERCISE 16 NODE NUMBER SEARCH The Node Number Search function is a search engine used to locate node numbers. Various search criteria can be used in combination to find the matching nodes. FIGURE 16.1 NODE NUMBER SEARCH NOTES : Study the On-line Function Help before starting the exercise. Use the search criteria specified by the presenter. Follow the steps in Figure 16.1 and 16.2 to do a Node Number Search. FIGURE 16.2 ADDITIONAL SEARCH CRITERIA Revision 19 : 16 August 2005 Page 25

FIG 16.3 NODE NUMBER SEARCH RESULTS Click on a Node and click F7 to view detail on the Node. Revision 19 : 16 August 2005 Page 26

EXERCISE 17 RUN NODE REPORTS The Node Reports function provides generic project reports. FIGURE 17.1 NODE REPORTS NOTES : Study the On-line Function Help before starting the exercise. Follow the steps in Figure 17.1 and 17.2 to run a Node Report FIGURE 17.2 Revision 19 : 16 August 2005 Page 27

EXERCISE 18 PERFORM NODE ANALYSIS The Node Analysis function is used to do create queries or do what if analysis on projects related data. FIGURE 18.1 NODE ANALYSIS NOTES :. Study the On-line Function Help before starting the exercise. FIGURE 18.2 NODE ANALYSIS NOTES : Select columns, additional to the default selected columns, that you want displayed in the result set. FIG 18.3 NODE ANALYSIS Revision 19 : 16 August 2005 Page 28

LESSON SUMMARY On completion of the Project Management course, students will be able to take a project though the complete life cycle in the System. TO Add Nodes. Add Work Breakdown Structure. View Work Breakdown Structure. Add Material Budget. Add Labour Resource. Add Employee Rates. Add Labour Budgets. Add Customer Order. Release Node. Add Time Sheets. Approve Time Sheets. Perform a Material Budget Roll Complete Node. Perform a Shipment View Budgets, Commitments and Actuals View Barchart Perform Node Number Search Run Node Reports Perform Node Analysis DO THIS Use NODE function. Use NODE function. Use STRUCTURE tab. Use NODE function. Use NAVIGATE tab. Use MATERIAL BUDGET function. Use LABOUR RESOURCE function. Use RESOURCE DETAIL tab. Use FINANCIAL PERIOD DATA tab. Use EMPLOYEE INFORMATION function. Use FINANCIAL DATA tab. Use LABOUR BUDGET function. Use RESOURCE tab. Use EMPLOYEE tab. Use CUSTOMER ORDER function. Use HEADER tab. Use LINE MANDATORY tab. Use NODE function. Use NAVIGATE tab. Use APPROVAL tab. Use TIME SHEET function. Use NODE TIME SHEET APPROVAL function. Use the NODE BUDGET ROLL function Use NODE function. Use NODE SHIPMENT function. Use NODE BUDGET COMMITMENTS AND ACTUALS function. Use SELECTION CRITERIA tab. Use STRUCTURED DETAIL tab. Use PERIOD BREAKDOWN tab. Use COMMITMENTS / ACTUALS tab. Use NODE STRUCTURE OVERVIEW function Use NODE NUMBER SEARCH function. Use NODE REPORTS function Use NODE ANALYSIS function Revision 19 : 16 August 2005 Page 29

APPENDIX A PRESENTER S NOTES 1. Add two Cost Centres (499 and 588) with Financial Rates (Presenter = Cost Centre Manager and an employee of cost centre 588). 2. Add Account for Account Code 6140 for Labour for these Cost Centres. 3. Add Recovery Accounts for Cost Centres. 4. Customer Order Completion Date must be greater than Milestone End Date (See Exercise 3). 5. Check all student profiles. They must have: a. Node Maintainer. b. Generic User. c. Employee Rates. d. Labour Resource. e. Customer Order. f. Sales Order Payment. 6. Change all students cost centres to 588 on the Employee Master. 7. Add Labour Resource + Employee + Cost Centre Rates. 8. Add Sales Account (Income Statement). 9. Link Reports. 10. Link necessary material accounts to division. 11. Make all students salespersons for the specific external organisation to be used on the customer order exercise. 12. Set automatic number control for Nodes and Customer Orders. Revision 19 : 16 August 2005 Page 30

APPENDIX B PROJECT MANAGEMENT - JOURNALS EXAMPLE 1 2 NODE APPROVE 30 HOURS X R50 SHIP MILESTONE (NON-INVOICEABLE) WIP PROJECT MANAGEMENT 1540 B (B) PROJECT MANAGEMENT LABOUR FOR CC 1110083 B (B) COS LABOUR 9310 B (I) DB CR DB CR DB CR 1 1 500 1 500 2 1 500 1 500 1 2 3 NODE APPROVE 30 HOURS * R50 SHIP MILESTONE (INVOICEABLE) PRINT APPROVE INVOICE WIP PROJECT MANAGEMENT 1540 B (B) PROJECT MANAGEMENT LABOUR FOR CC 1110083 B (B) DEBTOR SUSPENSE ADZ2 - (1 800) (B) COS LABOUR 9310 B (I) SALES ACCOUNT AS ON CUSTOMER ORDER 7630279P (I) TAX SALES X ACCOUNT 4195 P (B) TRADE DEBTORS ACCOUNT 3530 P (B) DB CR DB CR DB CR DB CR DB CR DB CR DB CR 1 1 500 1 500 2 1 500 1 500 3 1 500 1 500 33,333 4 666.62 37,999.62 Revision 19 : 16 August 2005 Page 31

APPENDIX C UNDERSTANDING BCWS, LCWS, ACWS AND COMMITMENTS Each table shows the result before and after the action was performed. 1. CHANGE NODE S STATUS TO APPROVED BEFORE BCWS - LCWS 2 000 Commitments - ACWS - AFTER 2 000 2 000 - - 2. PERFORM NODE BUDGET ADJUSTMENTS BEFORE BCWS 2 000 LCWS 2 000 Commitments 500 ACWS 1 000 AFTER 2 000 1 500 500 1 000 3.1 PERFORM NODE BUDGET ADJUSTMENT ON MATERIAL (NODE MANAGER) BEFORE AFTER BCWS 2 000 = 1 000 Labour 2 000 = 1 000 Material LCWS 2 000 = 1 000 Labour 1 000 = 1 000 Material Commitments - - ACWS 600 = Labour 600 3.2 PERFORM NODE BUDGET ADJUSTMENT ON LABOUR (COST CENTRE MANAGER) after step 3.1 was performed. BEFORE AFTER BCWS 2 000 = = 1 000 Labour 1 000 Material 2 000 LCWS 1 000 = 1 000 Labour 600 Commitments ACWS - 600 = Labour - 600 LEGEND: BCWS - Budgeted Cost of Work Scheduled (Baseline Budget) LCWS - Latest Cost of Work Scheduled (Latest Budget) ACWS - Actual Cost of Work Scheduled (Actual Costs of Work Performed) COMMITMENTS - Expected Actual Cost (i.e. Time Sheets not yet Node Approved & Requisitions which are not actual cost yet). Revision 19 : 16 August 2005 Page 32

APPENDIX D USING MULTIPLE BASELINES (BUDGET SCENARIO S) Multiple Project Baselines can be created in the System. These baselines are in addition to the standard BCWS baseline. The working of this functionality is embedded in a number of functions and is illustrated in this appendix. Study the online help when doing this exercise. ADD BUDGET SCENARIO This exercise illustrates the creation of the Project Budget Baseline Header. FIGURE E1 ADD BUDGET SCENARIO NOTE: Step 3: Specify if this baseline is applicable to Labour, Material or Labour and Material Budgets. Revision 19 : 16 August 2005 Page 33

Use the Node Budget Commitments and Actuals function to copy a project (Node) budget to the Budget Scenario (baseline). FIGURE E2 SELECT THE BUDGET WHICH IS TO BE COPIED TO THE BUDGET SCENARIO NOTE: In the example, all the material budgets from the Node Number SOT08 from 1999-09 up to 2000-02 will be copied. Multiple nodes can be selected if explode node is clicked on. FIGURE E3 COPY MATERIAL BUDGETS TO THE BUDGET SCENARIO NOTE: Step 1: Select the source node(s). Step 4: Select the budget values to be copied (LCWS or BCWS). To copy a budget scenario to another budget scenario click on the Selected Scenario radio button. Step 5: Select the Scenario created in figure E1. A Node Manager can only copy budgets from Nodes where he/she is the Node Manger. Revision 19 : 16 August 2005 Page 34

The same function is used to view the budgets copied. See figure E4. FIGURE E4 VIEW THE BUDGET BASELINE NOTE: Step 6: Select the Budget Scenario to which the budget was copied. FIGURE E5 SELECT THE NODE(PROJECT) Revision 19 : 16 August 2005 Page 35

FIGURE E6 VIEW THE BUDGET BASELINE NOTE: Step 1: Shows the budget copied to Budget Scenario SOT8-01. FIGURE E7 EDIT BASELINE BUDGETS NOTE: The normal budget functions are used to edit baseline budgets. (I.e. Material Budget and Labour Budget functions) Revision 19 : 16 August 2005 Page 36