Running Project Delivery Cost Calculations—Exercises

Required Data

Creating a Project Product Structure

Purpose: The purpose of this exercise is to familiarize you with the data that must be in place before you can do the the exercises below.

1. Create a project product structure.
2. Save your changes.

General exercise for Creating Project Product Structures 

Copying Standard Parts to Own Site and Calculating Costs

Purpose: The purpose of this exercise is to familiarize you with the data that must be in place before you can do the the exercises below.
Note: Because you must work in your own site, you need to copy the standard planned project items to your site, their product structure and routing and calculate costing for them.

1. Copy the standard parts from the engineering transfer site to your own site. 
2. Enter the parts' planning data and estimated material value.
3. Copy the parts' product structure.
4. Copy the work centers and and parts' routing revisions.
5. Calculate the parts' costs.

General exercise for Overview of Design Project Delivery Product Data

Main Exercises

Purpose: The purpose of these exercises is to run the project delivery cost calculations together with some project item and level override costs and to review the calculated project rollup costs as Planned costs in IFS/Project.

Windows:
Project Item
Project Product
Engineering Part Revision
Engineering Part Revision/Additional
Product Basic Data/Defaults
Project Item/Cost Info
Project Item/Consists Of
Project Navigator
Project Navigator/Activity

Checking Cost in Engineering Part Revision

Note: It is good practice to check if the costs of standard parts in IFS/PDM have been updated from IFS/Inventory and calculated. As parts 20–10XX and 20–11XX are project-specific parts, the costs for them have not been calculated yet. This will be done in the Defining Inventory Parts exercise in the Project Procurement Part Preparation course.

1. Open the Project Product window and query for your project XXPD–01.
2. On the Items tab, select all standard planned parts 20–120 (Cylinder Head), 20–121 (Cylinder Head Cover 1600), 20–122 (Camshaft 1600), 20–123 (Valve 1600), 20–130 (Electric System 1600) and 20–140 (Cooling System 1600), right-click and then click Engineering Part Revision.
3. Click the Additional tab and check whether costs have been updated for each part, working your way up the structure.
4. If no costs have been updated, right-click and then click Update Cost and Lead time, again working your way up the structure. 
5. On the information message that appears, check if the site is 1. 
6. If the site is not 1, open the Product Basic Data window.
7. Click the Defaults tab and populate.
8. Change the PDMCON_SITE Default Value to 1 and close the window. 
9. Return to the Additional tab, and repeat step 4 and check the values.
10. Select part 20–120, right-click and then click Calculate Cost.
11. Repeat step 11 for part 20–10XX (Engine 1600). Note that this option is only available for parts with structure. 
12. Check the calculated values. 

Calculating Project Item Roll Up Values

1. Open the Project Item window.
2. Query for your project XXPD–01 and top item 20–10XX (Engine 1600).
3. Click the Cost tab. Note that no standard costs are reflected in relevant fields. 

Note: As parts 20–10XX and 20–11XX (Engine Block 1600) are project-specific parts, they have not been transferred to the project site. This will be done in the Defining Inventory Parts exercise in the Project Part Procurement Preparation course.

4. Right-click and then click Calculate Cost and Hours. For the standard planned parts 20–120 (Cylinder Head), 20–121 (Cylinder Head Cover), 20–120 (Cylinder Head), 20–121 (Cylinder Head Cover 1600), 20–122 (Camshaft 1600), 20–123 (Valve 1600), 20–130 (Electric System 1600) and 20–140 (Cooling System 1600) standard cost is updated from IFS/Costing. If costs not available in IFS/Costing, the inventory value or the estimated material cost is considered. If these costs are also not available, then cost is retrieved from IFS/PDM. The Project Roll Up fields reflect values based on standard costs and the number of items used.  
5. Open the Consist Of tab.
6. Select part 20–120 and right-click and then click Next Level.
7. Check the costs calculated for its children.
8. Return to the previous level by right-clicking and then clicking Previous.
9. Open the Cost tab and observe again the Project Roll Up values for part 20–10XX.

Entering a Project Item Override Cost

1. Open the Project Item window.
2. Query for your project XXPD–01 and part 20–11XX (Engine Block 1600).
3. Click the Cost tab. 
4. Enter a Project Override cost of 350 US dollars for the relevant cost element. 
5. Save your changes.
6. Right-click and select Calculate Cost and Hours on the top part. Observe that the cost in Project Roll Up field for the top part, is the addition of the top part Standard Roll Up cost and the amount you entered as the Project Override cost. (Note that the Project Override cost will be multiplied with the relevant number of units and updated in the Project Roll Up field.)
7. If you override the cost of the top part 20–10XX (Engine 1600), observe that when you right-click and select Calculate Cost and Hours, the Project Roll Up field is updated with the override cost you entered for the top part and the cost of the lower levels will not be considered.

Entering a Project Level Override Cost

1. Open the Project Item window.
2. Query for your project XXPD–01 and top item 20–10XX (Engine 1600).
3. Click the Cost tab. 
4. Right-click and then click Calculate Cost and Hours and check the Project Roll Up values.
5. Verify that the cost roll up for the material cost element is 350 US dollars more compared to the standard roll up value. The 350 came from the the override value you did for part 20–11XX (Engine Block 1600) in the previous exercise.
6. Enter the following Project Level Override values for part 20–10XX: 

7. Save your changes.
8. Right-click and then click Calculate Cost and Hours and check the Project Roll Up values again.
9. Observe that the Standard Level cost has been overridden by the amounts you entered and is updated here as the cost for this part.

Reviewing Costs in Project

Note: It is a good idea to review project cost estimates and planned values in IFS/Project.

1. Open the Project Navigator window and query for your project XXPD–01.
2. Click the on the project name, and navigate through the project structure. 
3. Select the activity 1010 (Purchase special engine block) and then click the Activity tab.
4. Go to the Cost and Hours tabs in the Activity tab.
5. Review the Planned values of this activity. Observe that the planned Hours and the planned cost for the relevant cost elements such as Material, Labour correspond with the Project Roll Up values calculated for the relevant project item(s) in the previous exercise.
6. Repeat steps 3–6 for activity 2010 (Manufacture special engine).