The smallest part of the activity structure used for a
time-scaled budget. An entity that is used to represent a part of a project in
an activity structure.
Infor LN distinguishes these activity types:
WBS Element
Control Account
Work Package
Planning Package
Milestone
actual cost
The real costs incurred on a project. These costs are
logged in Project Cost Ledger. For example, Inventory Cost, Purchase Invoice
Cost, Price Variances, Manual Costs, and so on.
actual value
The costs incurred to accomplish the work performed within a
given period.
apportion
To make a proportionate division or distribution for
the earned value. When activity Y is apportioned to activity X, the earned
value method of Y and X is the same. Y will copy X. X can have any earned value
method.
baseline
The baseline is a snapshot of the active plan's
scheduled activities start and end dates for a specific date and
time.
commitment
A financial obligation that represents future
costs.
control code
A common parent cost-object level, a level above the
special cost object.
A control code is used for control purposes. For
analysis, you can group cost objects of the same cost type under a control
code. If you use a cost object to categorize a group of cost objects, it can be
its own control code. You cannot have more than one control code in a tree.
This is used for the frozen bottom-up budget.
cost component
A cost component is a collection of cost objects with
a certain characteristic. A cost component does not depend on the cost type,
therefore, for example, a project can be monitored from another dimension. For
example, all the costs that refer to electrical work, for example, cable and
installation work, are visible if the applicable cost objects are linked to the
cost component Electrical work.
cost performance index
A measure of cost efficiency of a project.
The cost performance index (CPI) is determined by measuring the ratio
of earned value (EV) to actual costs (AC):
CPI = EV / AC
If the result is less than 1.0, cost is greater than budgeted.
If the result is greater than 1.0, cost is less than budgeted.
example:
EV
PV
AC
CPI
SPI
270
335
250
1.08
0.81
earned value
The budget amount based on the project progress for a
specific period.
earned value concept
A time-phased method for measuring project
performance. It compares the amount of work that was planned with work that was
actually accomplished to determine if cost and schedule performance are as
planned.
There are a number of different ways in which you can use the earned
value method to determine how budget amounts are to be earned:
Milestones
Milestones are attached to the activity and a percentage or amount
of the budget is assigned to each milestone. When you reach a milestone, the
assigned budget is earned.
Start and End Percentage
Percentage values are assigned to the start and end points of the
activities. In other words, the start percentage is earned when the activity
starts and the remaining percentage is earned when the activity is completed.
Percentage Completed
Budget amounts are earned in proportion to the percentage progress
of the activity.
Level of Effort
Budget amounts are released in proportion to effort. This method
is appropriate for time-driven activities where it is assumed that there will
be no discrepancy between scheduled work planned (PV) and work performed (EV).
Apportioned
Apportioned efforts are those which have an intrinsic performance
relationship to some other discrete activity. Budget amounts are earned in the
same way as for the linked activity.
estimate to complete
A realistic forecast appraisal of the remaining
work.
estimate at completion
The forecasted total cost of a project, activity, or
organization-breakdown-structure element when the defined scope of work is
completed. To calculate the estimate at completion: actual costs + estimate to
complete.
extension
The specific agreements within or in addition to the
initial contract. An extension falls outside the initial contract with the
sold-to business partner. Extensions can be assigned to the bottom-up budget.
Infor LN distinguishes these extension types:
Scope Change
Provisional Amount
Fluctuation Settlement
Quantities to be Settled
holdback
A percentage amount that the customer withholds from
the contract amount. This serves as a guarantee that all activities are
performed, and that contractual obligations are met. In other words the
holdback amount is paid after the project activities have been satisfactorily
performed.
level of effort
A budgeting method in which budget amounts are
released in proportion to effort. This method is appropriate for time-driven
activities where it is assumed that there is no discrepancy between work
planned and work performed.
milestone
An activity of zero days that usually represents a
significant event in the project. In many cases the completion of a phase of
major deliverable. Milestones can be used for the moment of invoicing and the
calculation of earned value.
organization breakdown structure
A representation of the structure of a project
organization, this is usually depicted as a tree-like hierarchical structure.
The organization breakdown structure is used to link the responsibilities of
certain project parts, such as the allocation of a financial budget or the
realization of project activities to an OBS element. Each OBS element can be
linked to an employee. The OBS element is standard and can also be made project
specific.
planned value
The planned budget amount for a specific
period.
progress
The process by which an element or activity is
completed over the lifetime of the project. Progress can be recorded at cost
type, cost object, or at control code level.
project
An endeavor with a specific objective to be met
within the prescribed time and financial limitation, and that has been assigned
for definition or execution.
project currency
If the project is performed in another country, the
project currency is useful for monitoring. This currency can be an external
currency that is not specified as one of the home currencies.
schedule variance
Any difference between the scheduled completion of an
activity and the actual completion of that activity.
schedule performance index
A measure of schedule efficiency of a project.
The schedule performance index (SPI) is determined by measuring the
ratio of earned value (EV) to actual costs (AC):
SPI = EV / PV
If the result is less than 1.0, the project is behind schedule.
If the result is greater than 1.0, the project is ahead of schedule