Project structure

Structure overview

Each project structure comprises a generic design. This generic design can be applied as the basis for managing many types of project. It provides a comprehensive solution when applied to both a services-type project such as a development project, and to a manufacturing project such as an infrastructure project.

Each project has two structures:

  • Budget structure

    This structure is used for the following:

    1. Managing costs.
    2. Tracking budgets.

    The budget structure classifies costs associated with a project into units of cost per cost type, and cost type per cost group. You use it to control the budget against actual costs, and to monitor project revenue and margins. The budget structure must mirror the expected financial reporting for the company.

    The budget structure can also be referred to as a CBS (Cost Breakdown Structure), a cost breakdown structure or the cost structure.
  • Operational structure

    This structure is used for planning operational tasks. This includes the following:

    1. Tracking operational tasks, including delays.
    2. Tracking labor resources and material requirements.

    The operational structure comprises the following:

    • Labor elements in the form of a Work Breakdown Structure (WBS) - reference the Design phase and On site phase (Assembly and Transport) in the Generic project structure example.

      • A WBS defines the total work scope of the project. It groups and organizes the labor tasks. A WBS also provides the necessary framework for detailed cost estimating and control.

    • Product elements in the form of a Product Breakdown Structure (PBS) - reference the Manufacturing (Machine) phase in the Generic project structure example.

      • A PBS defines the components that make up an item for the project. You can optionally use a hierarchical tree structure to categorize the components.

    The operational structure can also be referred to as a Work Breakdown Structure, a WBS (Work Breakdown Structure), a PBS (Product Breakdown Structure), a task planning structure or the task structure.
The budget structure in this guide is referred to as the cost structure; the operational structure is also referred to as task planning.
Use the cost structure for tracking costs.
Use the operational structure for tracking dates and delays.
Both structures can be organized in an identical way or each structure can be completely different. The cost structure and operational structure are essentially different views of one project.
Your project structure design will be determined by the level of detail and control you want for your project through the tracking. You might want to control and track your project at the summary level or at the detailed level, for example.

Points to note

  • Operational structures and cost structures can be completely independent of each other.
    1. One task can be linked with one budget level.

      This enables consolidation of expenses on the cost structure.

    2. One budget level can be linked with none (zero) or many (N) tasks.

      This enables direct expenses such as expense notes, business partner invoices and time records to be linked to the cost structure.

  • Operational structures and cost structures can be multilevel.
    1. Operational structures can contain macro task and operational task levels.
    2. The lowest level in the operational structure is considered to be an operational task. It might also be identified as an "elementary" level.
    3. An operational task level, by definition, cannot contain sub-levels.
  • Detailed operations that must be executed are assigned as labor tasks (WBS).
    1. Labor tasks support management of workload.
    2. Labor tasks support time management.
  • Management of materials such as products, bills of materials (BOMs) and requirements is assigned to material tasks (PBS).
    1. Material tasks support component follow-up (dates and quantities).
    2. Finished (assemblies) and semi-finished (subassemblies) products can be linked to a material task.
  • A task can be a combined labor and material task.
  • Budget levels are assigned for forecasts.
    1. Budget levels support the forecast of expenditure.
    2. Budget levels support cost types.

Constraints

Type

Constraint
Labor task Mandatory details:
  • Planned resource (work center)
  • Planned quantity
  • Unit of time
Operation dates must match the start and end date defined for the task.
Material task Mandatory details:
  • Product
  • Quantity
Budget line Each line must be defined according to a cost type.
An activation date can be managed for each labor cost type rate. The last budget date defined on the budget line determines the actual labor rate. If the budget date is amended, the actual labor rate is amended automatically. This rule also applies to the last estimated date.
Budget line: Labor expense Mandatory details:
  • Quantity
  • Unit of time
  • Amount
If a labor rate is defined for the cost type, the amount is calculated automatically.
Budget line: Material expense Mandatory details: Amount

Example structures

The following diagram represents a basic, generic example structure of a Sage X3 Project management project.

This example incorporates three master phases:

  1. Design phase.
  2. Manufacturing phase.
  3. On site phase. In this example, this phase includes both assembly and transportation elements.

The following diagram represents a basic, generic example structure of a Sage X3 Project management project for the services sector.

This example incorporates three master phases:

  1. Analysis phase.
  2. Development phase.
  3. Quality phase. In this example, this phase is for "on site" testing.

The following diagram represents a basic, generic example structure of a Sage X3 Project management project for the manufacturing sector.

This example incorporates four master phases:

  1. Analysis phase.
  2. Manufacturing phase.
  3. Assembly phase. In this example, this phase includes both assembly and quality assurance elements.
  4. Financial budget (to track some direct costs such as expense notes).