Multi-currency Estimating

A major difficulty facing businesses bidding on large International Projects is dealing with multiple currencies within the same estimate. When projects are funded with international funding in multiple currencies or when suppliers or subcontractors are providing material or services in a multitude of currencies. Funding Organizations often require as a prerequisite in providing funds that goods and services be provided in the same currency that the financing is provided. To estimate projects in multiple currencies, the estimator requires a system that allows resources to be saved in multiple currencies, as well as different currency values for each of those resources.

 

Converting Resources between different Currencies

  • To efficiently bid in multiple currencies your resource table must
    allow the user to set the base rate in its base currency and then provide a
    procedure to convert the value into the projects currency.

  • For material and labour resources this is a very straight forward process,
    which involves just multiplying the rates by the appropriate exchange rate.

 

Entering and Comparing Quotations in Different Currencies

  • In a single estimate various suppliers may also quote on the same
    commodity in different currencies. The system must save the quotation in the
    source currency but also convert the currency to the base currency of the
    estimate so the quotations can be compared against each other.

 

Generating Cash Flows in Multiple Currencies

  • One of the prime purposes of creating an estimate in multiple
    currencies is that the financing will be procured in these same currencies. It
    is therefore important to have the ability to generate separate cash flows in
    each currency.

WBS

The work breakdown structure (WBS) module is the latest module incorporated into the Methvin estimating package. It allows for two independent work breakdown structures. The first allows you to present the project in the manner the client expects to see it. And the second provides an opportunity to break the project into a hierarchical and incremental decomposition of the project into phases, deliverables and work packages. It is a tree structure, which shows a subdivision of effort required to achieve an objective; for example a program, project, and contract. In a project or contract, the WBS is developed by starting with the end objective and successively subdividing it into manageable components in terms of size, duration, and responsibility (e.g., systems, subsystems, components, tasks, subtasks, and work packages) which include all steps necessary to achieve the objective.

The work breakdown structure provides a common framework for the natural development of the overall planning and control of a contract and is the basis for dividing work into definable increments from which the statement of work can be developed and technical, schedule, cost, and labour hour reporting can be established.

A work breakdown structure (WBS) permits summing of subordinate costs for tasks, materials, etc., into their successively higher level “parent” tasks, materials, etc. For each element of the work breakdown structure, a description of the task to be performed is generated. This technique (sometimes called a system breakdown structure) is used to define and organize the total scope of a project.

 

History of work breakdown structure

The concept of work breakdown structure developed with the Program Evaluation and Review Technique (PERT) by the United States Department of Defense (DoD). PERT was introduced by the U.S. Navy in 1957 to support the development of its Polaris missile program. While the term "work breakdown structure" was not used, this first implementation of PERT did organize the tasks into product-oriented categories.

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