The work breakdown structure decomposes a project hierarchically. It is the skeleton of cost management in PS.
The hierarchy
Level 1: Second plant construction
Level 2: Groundworks and foundations
Level 3: Site preparation
Level 3: Foundation concrete
Level 2: Building construction
Level 3: Steelwork
Level 3: Cladding and interiors
Level 2: Equipment installation
Level 3: Production line
Level 3: Utilities and pipingCost posts to lower elements and rolls up automatically, so any level of the hierarchy can be reported on.
The three indicators
| Indicator | Meaning | Effect |
|---|---|---|
| Account assignment element | Can receive cost directly | Usable on purchase orders and postings |
| Billing element | Can receive revenue | Sales orders and billing can be assigned |
| Planning element | Can hold planned cost | Plan values can be entered |
| Level | Indicators | Role |
|---|---|---|
| Top | Billing, planning | Receives revenue and holds the overall plan |
| Middle | Planning | Aggregation and planning |
| Bottom | Account assignment | Receives actual cost |