Function: Project estimating

The objective of this main business function is to provide the sales function with a rough indication of price and the required capacity load, which also results in an indication of the order lead-time. This information is mainly used during the quotation phase.

In this function, you can estimate the following:

  • The costs of the resources required to complete all project activities.
  • The number of work periods that are required to complete all project activities, which results in an estimated start and finish date.
  • The quotation price, which you can use for a bid.

In addition to estimated cost and time, other considerations such as environmental hazards, government regulations, and safety can be important.

Process: Estimate project, process (code: MPR02a)

The first process in estimating is to determine the cost and schedule for realizing the scope of the project. To perform estimating, you can use top-down, bottom-up, or a combination of techniques. You can perform the estimate with or without project structures. You can also estimate with or without using cost objects.

The contract definition function sets up the sales contract after you finalized the estimated scope, costs, global delivery planning, and the invoice planning and amounts.

The objective of this process is to estimate the costs of resources that are required to complete project activities, as well as the project price. In addition to estimated costs and time, various other issues, such as safety and environmental regulations, must be taken into account.

Assumptions:

  • LN Project will serve as the supporting functionality.

IT support:

  • LN Project, Estimating
Process: Estimate project, product (code: MPR02b)

You can make an estimate of the total costs, and then you can estimate a delivery date with the graphical planning board, place the item surcharges into the system, and generate quotations based on the entered data.

The objective of this process is to provide sales (cycle) management with a project cost-price calculation and a rough indication of the required capacity load, which results in an indication of the order lead-time. This information is used during the quotation phase.

For budget-calculation purposes, you must create a budget and review and/or update the calculation setup. To calculate the project lead-time, you must create a dummy project, including a network planning. The user can perform a capacity check based on this network planning and the resources that are required to perform the network planning activities.

Assumptions:

  • LN Manufacturing Project Control will serve as the supporting functionality.

IT support:

  • LN Manufacturing Project Control