Value Catogory ,SKF,Progress Evaluation EVM

7/27/2019 Value Catogory ,SKF,Progress Evaluation EVM

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Hi,To begin with:We need atleast 4 Value categories:1. Tcode: OPI1Maintain 4 value categories e.g. 1300,1301,1302,400 and 410

For 1300, 1301, 1302 Select statistical key figure with total values.

For 400 select Costs.For 410 Select Revenues.

2. Tcode KAH2: Create Cost element Groups.e.g PSCost: assigne all the cost relvent cost elements to this groupPSREV: Assign all the revenue relevent cost elements to this group (Cost elementcategory:11)

Step:3 Tcode:OPI2.

Assign PScost to 400Assigne PSRev to 410

3. Tcode CJVC, Check consistency for the value categoy assignments

4.Tcode KK01: Create statistical Key figure. e.g 10, 20,30 for the Controlling area.

5. Tcode OPI5:Assign these 10,20,30 to 1300,1301,1302 respectively.

For detailed discussion on this topic please refer:http://help.sap.com/saphelp_46c/helpdata/en/3d/72369adc56d11195100060b03c6b76/frameset.htm

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:
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Percentage of completion(POC)

The POC describes the ratio of the services rendered up to a particular date to the total workto be done in an activity or project.

The system distinguishes between three different uses:

o Non-aggregated values

The values are displayed per object.

o Aggregated values

The system shows the values aggregated according to the project hierarchy.

o For results analysis

The system determines the aggregated POC for the billing element. In carrying outthe aggregation, it takes account of the project elements subordinate to the billingelement in the billing structure.

The POCs are recorded under statistical key figures. You assign the statistical key figures tovalue categories so that the system can display them.

You create the value categories for the POCs by choosing Project System Costs Value

Categories Maintain Value Categories.

To assign them to value categories, choose Project System Progress Assign StatisticalKey Figures to Value Categories.

Choose Project SystemInformation SystemCost/Revenues Information System

Project Info DatabaseCheck Consistency of Value Category Assignment.

Earned value

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. "Overallplanned costs" is a synonym here for accumulated planned costs and the budget.

You can use the POC as the basis for results analysis.

You can use the POC as the basis for results analysis. The basis for results analysisis the percentage of completion from the progress determination. According toGerman law, this method can be used for internal purposes only.

See Results Analysis Methodsand POC Method Using Progress Version (07).

Prerequisites

Aprogress versionmust be defined in the Project System IMG. This is the means of stipulating themost important control factors for the progress calculation, such as:
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The base for determining the earned value

Planning type or set of dates

The POC calculation requires ameasurement 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

If you work with statistical key figures, you must also make the following settings the Project SystemIMG:

The statistical key figures where you want the POCs to be recorded

You assign the statistical key figures to value categories so that the system can

display them.

For more information on the assignment, seeValues in Progress Analysis.

Default cost element for recording values by cost element

You define cost elements for cost elements groups and stipulate the default cost element.

For more information, go to the Implementation Guide of the Project Systemand choose

Progress Progress Analysis Maintain Assignment of Cost Element Group.

Features

Calculating the POC

The system usesmeasurement methodsto determine planned and actual POCs for the followingproject components:

WBS element

Activities

Activity elements

Orders for projects

How the Calculation is Carried Out

The system uses a base, such as overall costs, and the POC to calculate actual and planned figuresfor the earned value (EV).

BCWS = Planned POC * overall costs

BCWP = Actual POC * overall costs

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

You define the base in the progress version in the Project System IMG. Possible bases include:

Cost planned by cost element (current or CO version)
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Annual budget

Overall budget

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

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

If you use the budget as the base, you can only evaluate the earned value in WBSelements.

You have agreed a budget with an ordering party. The earned value is to bedetermined with reference to this budget. Choose the agreed budget as the base.

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

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

See Project Cost Forecast.

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

Taking Account of the Planning Type or Set of Dates

Delays usually result in cost variances. You can use different sets of dates or planning types whendetermining the planned earned value. In progress version customizing, you stipulate which planningtype or set of dates the system should use for the calculation:

Planning type or set of dates: Basic or forecast dates

Key: Earliest or latest dates

Weighting

The POC of a project is arrived at by summarizing the POCs of the individual objects in line with theproject hierarchy. You weight the POCs of the individual objects in order to represent the proportion ofwork package to the overall activity. You define the basis for the weighting in progress versioncustomizing: example - Work. Inaccuracies at individual object level are ironed out in the aggregated

display.
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You want to analyze the progress of the internal activities only in your project. Youstipulate the Manualweighting basis when you configure the progress version. In

addition, you stipulate weighting factor 1 for internal activities and 0 for externalactivities.

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

of this is that external activity progress is not included in the calculation of projectprogress.

The system records the aggregated and non-aggregated values separately in the statistical keyfigures provided.

For more information, see the Implementation Guide of the Project Systemunder Progress

Progress Analysis Define Statistical Key Figure for Percentage of Completion.

In the information system you can analyze the aggregate and non-aggregated POCs per objecttogether.

The system shows the values aggregated according to the project hierarchy.Changes to the hierarchy or a different view lead to the aggregated values beingdisplayed incorrectly in the evaluation. If your project hierarchy changes, run progressanalysis 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 theaggregate POC for the billing element under the statistical key figure with the usage POC for resultsanalysis. The aggregation takes account of the objects from the billing structure only.

Correction Due to Changes in Plan


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The POC and earned value are determined on the basis of information currently available in thesystem. If the plan is changed while the project is in progress, this affects the values in the progresscalculation.

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 thenumber of planned documents increases because of additional requirements beingmade of your project, the POC falls accordingly.

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

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

SeeExample: Correction Postings.

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 towork and material.

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

For more information, go to the Implementation Guide of the Project Systemand choose Progress

Progress Analysis Maintain Assignment of Cost Element Group.

Activities

SeeCalculating Your Projects Progress.

All the current values, values from past periods, and the plan values from future periods can beanalyzed 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.

SeeEvaluating Project Progress.

Q- I am currently working on a Chemical industry Re-implementation. My client

wants to implement Progress Analysis to measure EVA. They current use WBS

elements (No Networks). I have been trying to find an instance where progress analysis

(EVA) has been implemented for WBS so I can decide what needs to be in place.

Anyone who has some imformation on these should please give me an insight or

documentation. This would be greatly appreciated.
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Tony

A-Unfortunately, from my experience, I can say that Progress analysis/ EVA Earned ValueAnalysis in PS cannot be done without the activities and of course withouth the networks. Wehad the same problem, as in our company as we had before only WBS and we needed EVA.

For EVA PS has the Transaction CNE5 and in this kind of reports (see also CN41) values ofrhe the field "actual work" will be "built up" on basis of activities confirmations. As I cansuggest you, if the company does not want to change the current structure of the projects, asoulution would be to i! ntegrate PS with BW, if they have BW there, and to generate theneeded reports for analysing the EVA in BW.Otherwise I have not heard to be possible to have Progress Analisys without activities in SAPStandard.

Elena Manole

Thanks for the reply. It is very helpful. It confirms what I thought.

Tony

Progress analysis at WBS level is also possible., Use estimation method and put theACTUAL WORK DONE.

Mukesh

I agree with Mr Mukesh. We are using the EVA method estimation and actual work done forWBS.Please create a new "Z" method of EVA which will allow confirmation of WBS in a similarway as being allowed for activities. You can then confirm the WBS for actual progress ofwork and enter the % completion of actual work to get schedule vs actual curve.

Salim Mohsin Shakir

Using the Estimation method with WBS means you are not really doing EVM in SAP. Youwould need to calculate the percentage using another tool. Also, since your WBS scheduledates are not dynamic, the forecasts would be very difficult to create. If the company is re-imiplementing, have them implement Networks Activities, at a minimum of one Activity perWBS.

Sequence Of Operations To Get EVA

In my project system I want project progress analysis on the basis of only time

proportionality. Cost will not be consider for progress andtheir are different units used

like m, m3, km & hr for work in internal & external activities, so is it possible to do

such setting on the basis of confirmation in customisation?

Yes it is possible do through activity confirmation. It all depends on EV basis, their you needto set time proportionality.

You need to perform sequence of operations to get EVA. for time prop. you need to maintainscheduling, activity confirmation etc.


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Define default meas method as Time prop for objects in customising.

You need to do customization settings for EVA for progress version, statistical key figures,value catagories, progress cost element etc.

You can go the following customizing steps... this will help you to configure as per yourneeds. This is not as per your need, as only you can understand what all the customizationsyou need to do........

1. Create Progress Version 101 with exclusive use 'Progress Analysis'. I have selected Plan &Actual check boxes.2. Settings for Progress Version-a) Plan version - '0'

b) EV basis - Cost plan (active project, annual values)c) POC weighting - Cost plan (active project, annual values)

d) Planning type - Basic datese) Early / Late - earliest possiblef) Both reference boxes selected

3. SKFs- I created three SKFs 10 (Non-Aggregated POC), 20 (Aggregated POC) and 30(POC for RA) with unit of measure '%' and selected the Key value category 'Total values'.

4. I need to assign these SKFs to different value categories. I created three value category 10,20 & 30 with selection 'SKF with total values' and unit of measure '%'. Then I assigned SKF10 to VC 10, SKF 20 to VC 20, SKF 30 to VC 30

5. I assigned measurement method as default value:a) WBS (Plan) - Cost Proportional

b) WBS (Actual) - Cost Proportionalc) Internal Activity (Plan) - Cost Proportionald) Internal Activity (Actual) - Degree of Processingc) Exernal activity(Plan) - Cost Proportionald) Exernal Activity (Actual) - Degree of Processing

6. I made progress cost element '6511100' (Secondary cost element) with Cost elementcategory as 61.

7. I maintain a value catagory 6511100 with Cost radio button selected.And assigned the progress cost element to the value catagory. i.e Cost element 6511100 tovalue catagory 6511100.

8. I maintain the assignment of cost element group. ie. I assigned progress cost elemnt to costelement group with default radio button selected. In the cost element group, I have selectedcertain cost elements which we regularly used (cost elements for project materials, projectmanhours, project contracts, spares etc)

Run CJEN first then CNE1 and CNE5


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Aggregate POC Calculation

When we confirm activities and see it in cns41 report we can see that the POC is

aggregated at the Network,WBS and porject level. How does the system calculate this..

i.e on what factors and criteria?

Result analysis determines the costs & revenues belong to the period, along with the Work inprogress (WIP) or Reserves.

Result analysis calculation is based on the planned / actual Cost & Revenue.

POC (Percentage of Completion) determines by the valuation method you opt

The formula for POC :

POC = R (a) / R (P) Revenue Proportionate

POC = C (a) / C (p) Cost Proportionate

Result Analysis Determines:

- Calculated Costs C(c) = POC X C (p) Same for Revenue- WIP (If C(a) >C (c) ) WIP = C(z)= C(a) - C(p)- Reserves for unrealized costs (if C(a) < C(c) )

C( r ) = C (c )C(a)- Revenue Surplus (if R (a) > R(c) )

R (r) = R(a)R(c)

E.g.

Revenue Proportionate RA:

In some project you have R(p) =3000$C (p) = 2000$R (a) = 1200$C (a) = 1000$

Then POC = 1200 /3000 = 40 %

C(c) = POC X C(p) = 40 % X 2000 = 800$

WIP = C(z) = C(a)C(c) = 1000-800 =200$

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Value Catogory ,SKF,Progress Evaluation EVM

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