Using Progress Analysis to Monitor and Evaluate the Project Schedule

POCs are recorded under statistical key figures. For reporting purposes, statistical key figures are assigned to value categories.

The term earned value describes costs corresponding to the POC of an activity or project. It is the result of applying the overall planned costs to the POC. Overall planned costs are accumulated planned costs and the budget.

The system uses the planned cost to calculate progress values from the percentage of completion. The budgeted cost of work scheduled is the calculated plan cost based on the percentage of completion. The budgeted cost of work performed is the target costs based on actual percentage of completion. Using these calculations, the system can calculate the schedule variance and cost variance.

If you want to effectively control your project, you need to do more than individually studying costs, resources, and schedules. You can draw informed conclusions on the progress and current status of your project only when you compare these values with actual results. Progress analysis enables you to do this. This analysis is suitable for both internal control of a project and external reporting.

You can estimate the POC of WBS elements, activities, and activity elements. You can also calculate POC automatically using existing data. In both cases, a planned POC (expected progress at a specific point in time) and an actual POC (progress actually made at a specific point in time) are determined. By specifying a weighting factor (planned costs, for example), you can aggregate these values in the WBS.

The system uses a factor, such as planned costs, to calculate progress values from POCs:

• BCWS: budgeted cost of work scheduled (costs according to planned progress)

• BCWP: budgeted cost of work performed (target costs according to actual progress)

• Actual costs: costs actually incurred

Comparing earned values provides important information. By comparing BCWS with BCWP, you can determine any deviations from the schedule (for example, if the project is progressing too slowly). By comparing the BCWP with actual costs, you can determine any cost variances (for example, if the project is too expensive).

You can store earned value analysis in a separate plan version and evaluate it using the structure information system or controlling information system.

Measurement techniques determine how the progress value (planned and actual) is calculated.

The following measurement techniques are available in the SAP system:

• Start/finish rule

• Estimation

• Milestone technique

• Time proportionality

• Cost proportionality

• Quantity proportionality

• Degree of processing (only for activities, only for actual POCs)

• Secondary proportionality

• User-defined techniques (user exit)

You define default measurement techniques for each object (WBS element, activity, and project orders) in Customizing. If required, you can overwrite these defaults in the project structures.

The system uses specific weighting factors to summarize progress values in the project structure. One such weighting factor is the project cost plan (recommended here).

You can use POCs as earned values for the results analysis. To do so, choose technique 07, POC method based on project earned value analysis in the results analysis, and enter the plan version of the earned value analysis.

The POC and the earned value are important project key figures. You can analyze them at the level of individual project elements or aggregated for the whole project/subproject. Like other project key figures, progress analysis values are available in the following report types:

• Structure-oriented report on progress analysis.

• Drilldown hierarchy report.

• Report Painter or Report Writer reports.

You can use the structure overview to evaluate the POC and earned value. The system displays the values in line with the project hierarchy. You can use the structure overview to evaluate the POC and earned value in the following configurations:

• Aggregated

• Not aggregated

• Corrected

• Not corrected

From the hierarchical display, you can navigate to a project object in the period breakdown and to the graphical display.

You then stipulate the measurement methods used to determine the POC. The measurement method consists of a measurement technique prescribed by the SAP system and other parameters, such as a start POC.

For example, the following measurement methods are determined for the start-finish rule technique:

• 0-100 method, with a start POC of zero

• 20-80 method, with a start POC of 20

With the estimation technique, you enter the POC manually in the WBS or network.

You enter a maximum POC and short ID. For as long as an activity is not finished (you do not know when it will be finished), the actual POC cannot exceed the maximum POC. The aim of the maximum POC is to ensure that activities that are almost complete are not overvalued. In the case of estimation, we recommend a maximum POC of 80%.

Define the measurement methods to calculate the POC as a default value for the various object types in the Project System.

The settings are defined per controlling area.

The measurement method that you define is a default value, and you can change it in object master data maintenance. The system only displays the measurement method in the detailed data for the object if you maintain a progress version.

Define the measurement methods used to calculate the POC for the orders assigned to the project. The settings are defined per controlling area.

You cannot change the measurement methods in order master data maintenance.