Progress Calculation

Use

You use the function to:

• Determine the POC as of a particular point in time
• Calculate the value of the work performed up to a particular point in time

Progress determination provides you with the key figures you need for this:

· Percentage of completion (POC)

The POC describes the ratio of the work carried out to a particular date to the total work to be carried out in an activity or project.

The earned value consists of the costs corresponding to the POC for an activity or project.

The earned value is calculated by multiplying the POC by the overall planned costs. "Overall planned costs" is a synonym here for accumulated planned costs and the budget.

You can use the POC as the basis for results analysis. . Basis für die Ergebnisermittlung ist hierbei der Fertigstellungsgrad aus der Fortschrittsermittlung.

Prerequisite

A progress version must be defined in the Project System IMG. This is the means of stipulating the most important control factors for the progress calculation, such as:

• The basic value for determining the POC
• Set of dates

The POC calculation requires a measurement method : You can:

• Use one of the measurement methods prescribed by SAP
• Define default measurement methods per object in customizing
• Define a measurement method directly in an object

In addition, you must make the following settings in the Project System IMG:

• Statistical key figure under which the POC is recorded
• Default cost element for recording of values by cost element

Features

Calculating the POC

The system uses measurement methods to determine planned and actual POCs for the following project components:

• WBS elements
• Activities
• Activity elements
• Orders for projects

How the Calculation is Carried Out

The system uses a reference factor, such as overall costs, and the POC to calculate actual and planned figures for the earned value (EV).

Planned EV = Planned POC * overall costs

Actual EV = Actual POC * overall costs

The following uses "POC" and "actual POC" synonymously.

You define the reference factor in the progress version in the Project System IMG. Possibles include:

• Planned costs (current or CO version)
• Annual budget
• Overall budget

If you use planned costs as the reference factor and determine the POC at activity level, the networks in question must be activity-assigned.

If you use the budget as reference factor, you can only evaluate the earned value in WBS elements.

In the case of the planned costs, the planned costs accumulated by period are taken into account. However, the costs planned in hierarchy planning for the WBS element are not.

You have agreed a fixed budget with an ordering party. The earned value is to be determine with reference to this budget. Choose the agreed budget as the reference factor.

You want to analyze the earned value with reference to your best- and worst-case scenario planning. Choose the respective plan versions as the earned value reference factor.

You want to analyze the expected earned value taking account of the change in the cost situation caused by changes to planning. Choose the planned costs from the forecast version as the earned value reference factor. The earned value thus determined reflects the forecast value for services to be rendered up to completion of the project.

The earned value is rolled up in the project hierarchy. The earned value is NOT recalculated in a higher hierarchy level.

The Role of the Set of Dates

Delays usually result in cost variances. You can use different sets of dates when determining the earned value. In progress version customizing, you stipulate which set of dates the system should use for the calculation:

• Basic or forecast dates
• Earliest or latest dates

Aggregation Using the Project Hierarchy

The POC of a project is arrived at by summarizing the POCs of the individual objects in line with the project hierarchy. To this end, you weight the individual objects as appropriate. You stipulate the weighting when configuring the progress version. An example would be weighting by annual budget. You use the weighting to represent the proportion of total work. Individual object values which are unclear are leveled off in the aggregated display.

You want to analyze the progress of the internal activities only in your project. You stipulate the Manual weighting basis when you configure the progress version. In addition, you stipulate weighting factor 1 for internal activities and 0 for external activities.

Only the progress for internal activities is included in the POC aggregation.

The system records the aggregated and nonaggregated values separately in the statistical key figures provided.

In the information system you can analyze the aggregate and nonaggregated POCs together.

The system shows the values according to the project hierarchy. Changes to the hierarchy or a different view lead to the aggregated values’ being displayed incorrectly in the evaluation. If your project hierarchy changes, run progress analysis again.

The earned value in the aggregated display is totaled up using the project hierarchy, independently of the POC aggregation.

Recording the POC for Results Analysis

Only the POC from the billing element is relevant to results analysis. The system records the aggregate POC for the billing element under the statistical key figure with the usage POC for results analysis. The aggregation takes account of the objects from the billing structure only.

Correction Due to Changes in Plan

The POC and earned value are determined on the basis of information currently available in the system. If the plan is changed while the project is in progress, this may also affect the values in the progress calculation.

Changes in the plan lead to higher overall plan costs. If the POC does not change, the earned value increases.

You determine the POC in proportion to the quantity of finished documents. If the number of planned documents increases because of additional requirements being made of your project, the POC falls accordingly.

The person responsible for the project needs to analyze the effects of these changes on earlier periods. At the same time, there must not be any resulting inconsistencies with reports already made to the ordering party.

In the Project System you can arrive at a consistent assessment of the project by analyzing both the original values and the corrected values. Correction postings arise only for the actual POC or earned value relating to past periods.

Evaluation at Cost Element Level

In some cases, you will find it useful to analyze cost and schedule variances at cost element level. This means that you can, for example, analyze the earned value in an activity separately according to work and material.

The system first determines the POC under the original cost element. The system then updates the determined values in summary under the cost element stipulated in customizing.

Activities

You determine progress as part of periodic processing.

All the current values, values from past periods, and the plan values from future periods can be analyzed at any time, either in graphics or flexible lists. In the same way, you can evaluate the earned values corrected to reflect changes in the plan together with the original values.

A number of standard reports are available. However, you can define reports of your own.