Project Controlling Flashcards
What are project targets (triangle)?
Quality, Time, Costs
What are aims of project controlling?
Transparency across project functions and phases to enable project management to take countermeasures
What are results of project controlling?
Improve Cash situation, reduction of risks, prevention of unpleasant events
Tasks of a Commercial Project Manager
Transparency within the project, cash management, project setup (WBS), Risk and Opportunity Management, Project Calculations (Bid, OEC, MIKA), Performance Controlling (Target/Actual)
Accounting implications of Project Controlling
Ensuring true and fair view of the project
Contract Asset Calculation
Performance > Billings
Contract Liability Calculation
Performance < Billing
Job of CPM during Sales Phase
Entering project Data in LoA tool, defines which level of management needs to decide
Key project controlling tasks in the project sales phase
Budget estimate and bid calculation, WBS Structure, Support LoA filling, determination of revenue recognition method
Categories that influence Project Categorization
Financial, Contractual, Technical Complexity, Organizational
What are examples of special direct costs?
Freight, packing, customs, insurance
What does the performance obligation costs include?
Direct costs, special direct costs and risk contingency
Project Controlling during Project Handover
Handover of project documentation, determination of next steps, preparation of Order Entry Calculation based on Bid + Negotiation (transfer to ERP until PM100), update risk assessment
Project Controlling Tasks during Execution Phase
Controlling of costs, time, quality. Regular update of current cost calculation, consideration of changes, monitoring cash in & out, reporting of project figures
Aims of current cost calculation
Overview of project financials, monitoring/controlling/analysis of financial figures, identification of deviations - creating transparency
Update cycle for Risks
A projects: Monthly, others: At least quarterly
How do risks with a probability of occurrence of 100% have to be treated?
Eliminate from the RC and recognize in the total plan costs
Which Calculation Items are impacted by of RC adjustments?
PoC revenue, Gross Profit
General project controlling topics during Execution
Update of Current cost calculation, deviation analysis & countermeasures, monitoring cash in & out, Risk Management, recognition of NCCs, Documentation for audit
Key project controlling tasks in warranty
Accounts receivable management, invoicing after PAC/FAC, Establishment of warranty accrual/provision, Final project execution calculation, closure of project, lessons learned, reversal of guarantees
Final Project Execution Calculation - timeline
Has to be finalized by PM670, deviation analysis compared to OEC
Aim of deviation analysis Final Project Execution Calculation
Improvement of Bid calculation, elimination of faults
When does the deviation analysis (Execution vs OEC) has to be delivered?
PM700
