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Former Member

Cost planning for WBS element

Can any one explain me whats WBS element & Why we have to do cost planning for WBS elements.

whats is meant by assisning material components to network activities.

whats network activities.

Thanks in advance.

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    author's profile photo Former Member
    Former Member
    Posted on Jan 17, 2007 at 06:58 AM

    Hi,

    One example i can give currently is the production of a book.

    However before actually producing a book you run into lot of activities like (Pre Publication Costs) and other stuff and these have to be associated to a particular object.

    In the above example you could use WBS element in SAP for the book and to capture the costs you could use the functionality of easy cost planning.

    Pls go throught the OLD for more info at the below link

    http://help.sap.com/saphelp_erp2005vp/helpdata/en/86/98853478616434e10000009b38f83b/frameset.htm

    Provide points if found usefull.

    Thanks,

    Praveen

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 17, 2007 at 09:52 AM

    Hi Kalpanashri,

    To understand WBS elements, you need to understand the concept of <b>Project</b>.

    <b>Project Definition</b> is the framework within which objects are grouped.

    It provides the basis for the Work Breakdown Structure(WBS).

    In principle Project Definition refers to a single Production Area or License Block

    Objects could be sub-projects, phases of a project, distribution of activities, materials, services, general cost elements, etc.

    Projects have a start and a finish date whether long term or short term.

    <b>WBS</b> is the hierarchical model of the tasks to be performed in the project. It represents the sub-division of work into manageable components which can be budgeted, planned and controlled.

    WBS is the operative basis for the further steps in project planning, e.g. cost planning, scheduling, capacity planning as well as project controlling.

    WBS can be organized according to phases, according to functions/processes or according to objects (execution projects).

    <b><u>Networks and Activities</u></b>

    A network represents the process in a project or in a task in logical sequence, and is the basis for detail scheduling.

    <b>Networks</b> are made up of two main components: <b>Activities</b> and <b>Relationships</b>.

    Through the use of activities, a network represents the flow of a project. Activities are the starting point for planning, analysis and specification.

    Networks are also used to generate requisitions of material and services.

    I hope the above helps.

    Do not forget to award the points please.

    Regards,

    Jacob

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