Internal Orders versus Project Systems

[Former Member]

Hi

My client is currently using WBS elements for capital projects. Project System is not in scope; thus, we are trying to decide whether we should bring it in scope with limited functionality or use internal orders for capital projects. I'm writing a position paper describing comparison of using project system versus internal order. Can any one of you please help me in providing the differentiating points. And also can you please give a description of capital projects.

Thanks a lot in advance.

[varshal_kachole3 · Accepted solution]

Hi,

To begin with Internal order is a cost object like the WBS elements and activities in the Projects.

For the capital Projects following are the Points that should Favor the PS as compared to Internal Orders:

1. Time planning Possible

2. Resourse Planning possible.

3. Capacity planning and leveling possible.

4. Cost planning is possible in detail.

5. Material Planning possible.

6. Budget planning is possible in detail for the various phases of the project.

7. Cost and Budget monitoring is possible at the various phases in detail.

8. For the long term projects the Cash management is possible.

9. Revenue Planning and monitoring is possible in details.

Above all the PS is more flexible in handling all the project related issues than Internal order.

Now its upto one to use the functionality of PS to one's requirement.

In short PS module is like an Expert Doctor than a general physician.

Hope its useful.

Reward points if useful.

Thanks..

[Former Member]

Found these lines on help portal which helps deciding between Orders and Projects

In order to determine whether you should use orders or projects to manage your capital investments, you should consider some of the differences between them:

1. Only projects enable you to create a hierarchical structure for the objects that collect costs.

2. Orders are always one-dimensional. For example, it is not possible to distribute budgets for several orders in a structured form from top to bottom.

3. Projects also offer the advantage of their integration with networks and the functions of logistics. With orders, for example, it is not possible to carry out capacity and resource planning.

Regards

Sreenivas