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Work Breakdown Structure

The INFIMACS II WBS module is designed to meet the cost reporting requirements of U.S. government contractors (DoD), as well as activity-based costing requirements for commercial manufacturers. INFIMACS II WBS provides the ability to define a Work Breakdown Structure (WBS) for each project. The WBS allows for multiple-level cost collection and reporting. Budgets can be established for WBS Work Packages. As costs are collected in WBS Accounts, Earned Value calculations indicate whether each activity and rollup level is running ahead or behind schedule and over or under budget.

INFIMACS II WBS definition begins with the development of a WBS Program Template. A WBS Template is a standard model of a WBS structure, defining the posting level accounts and the summarization pattern which will be used to roll up project costs. As the user receives individual contracts or sales orders, projects are entered into INFIMACS II using the features of the Project Control module. A template is then associated with each project using the INFIMACS II WBS Template Copy feature, which enables users to copy and modify the WBS structure for different projects. In this way INFIMACS II users can easily establish WBS structures for new projects, whether commercial, U.S. government or foreign, from standard templates.

Users may enter budgets for each work package account on the Project WBS. Budgets may be entered for dollars, hours, or quantities. The system provides for simulated budget, current budget, and frozen budget, to accommodate revisions. Budgets are used to roll up the BCWS amounts, in preparation for Earned Value calculations.

As transactions are processed throughout the INFIMACS II manufacturing modules, the costs associated with them are posted to the project's WBS structure. Actual costs are compared to budgets to calculate BCWP, EAC, CPI, and SPI. Cost Variance (CV) and Schedule Variance (SV) percents are calculated and displayed in red or blue, indicating whether they are over or under expected targets.

The INFIMACS II WBS Project interface loads WBS projects and tasks into MS Project, where the data can be manipulated using the schedule simulation functions available in MS Project.

Overhead costs are captured in real-time in INFIMACS II WBS as work is reported in each department and work center. These overhead costs can be viewed on screens and reports. They include all overhead costs associated with production, engineering and administrative activities. In addition, the "Overhead Pooling" feature breaks down these overhead costs into user-defined categories, presented as a percentage of user-defined baselines. This data is also visible on screens and reports. This information allows managers to monitor and adjust the overhead allocation rates being applied to the WBS activities.

INFIMACS II WBS provides the ability to establish billing and earned value milestones. When a milestone has been accomplished (started and/or completed), the system computes the associated billing and EV amounts and automates the application of these amounts. Multiple milestones can be established for each activity and can be based on a percentage of budget, a pre-defined fixed amount, or a combination of both. The amounts can be split in any combination between the start and completion of the activity. In addition, a milestone can be broken down into multiple detailed tasks, with an "earned" amount associated with each task. An approval sign-off procedure is also available for each task.

INFIMACS II WBS processing allows project/program managers to aggressively manage their projects. Project-to-date reporting, actual vs. budget and estimate-to-complete reporting are provided to assist in project management. In addition, the system will report planned purchases and scheduled manufacturing as present or future commitments.

Inventory is stored by project and WBS account. MRP calculates available supplies and creates demands by WBS. In addition, MRP can plan inventory based on the company-wide Global project, or the Home WBS account designated within each project. Inventory can be transferred between projects, accounts, and stores locations, and can be transferred from an Intransit account without transferring costs. INFIMACS II Work Breakdown Structure also provides the ability to enter a user-defined revenue plan for each project. This allows the user to specify, in a time-phased manner, the planned revenue stream for each project. INFIMACS II WBS, integrated with INFIMACS II Project Control, provides contract manufacturers with a powerful tool to manage the manufacturing process for cost effectiveness.

Functions

  • WBS Accounting and Rollup
  • Activity Costing
  • Inventory and MRP by WBS
  • Earned Value Management
  • Reports and History

Features

WBS Accounting

  • User-defined WBS Program Templates
  • Programs Copied and Customized for New Projects
  • Charge Numbers at Work Package Level
  • Rollup to All Management Levels
  • Cost of Sales (COS) by WBS
  • User-defined Project Status Codes
  • Selectable WBS Periods
  • Budgets by Dollars, Hours and Quantities
  • Overhead Pooling
  • Billing Milestones
  • Revenue and COS Recognition

Activity Costing

  • Charge Numbers on All Activities
  • Automatic WBS Transaction Posting
  • User-defined Project Rollup
  • Project Revenue Planning

MRP by WBS

  • Planning by WBS Account
  • Company-wide Shared Inventory
  • Project-specific Shared Inventory
  • Material Transfer between WBS Accounts and Projects

Earned Value Management

  • BCWS, BCWP, ACWP, EAC, CPI, and SPI by WBS Account
  • Color-coded CV% and SV%
  • EV Rollups
  • Earned Value Milestones
  • MS Project Interface

Reports and History

  • WBS Details – Estimate vs. Actual
  • WBS Details – AP and AR
  • Actual Cost Ledger
  • Project Purchase Order Log
  • Project Cost Summary
  • Project Trial Balance
  • Project Cost to Complete
  • Weekly/Monthly/Quarterly/ 13 Week Revenue Plans
  • Project Billings Report
  • Project Cost Detail Report
WBS Budget Maintenance
WBS Budget Maintenance
WBS Budget Maintenance


Relevant Case Studies