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    SAP PS Way Forward

    Uploaded by

    pooshar
    The document discusses implementing SAP Project System (PS) to standardize and improve project management processes. Key points include: - Currently, projects lack standard cost planning, budgeting, monitoring and material reconciliation processes. - SAP PS allows integrated, activity-based cost planning and budgeting, standardized processes, and transparent material consumption tracking across projects. - It provides reporting on planned vs. actual costs, budgets, and milestones to aid control and decision making. - Full implementation requires defining the project structure, cost planning, material requirements planning, and milestone billing processes. Roles must be assigned to ensure each department updates their own data.

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    SAP PS Way Forward

    Uploaded by

    pooshar
    513 views33 pages
    The document discusses implementing SAP Project System (PS) to standardize and improve project management processes. Key points include: - Currently, projects lack standard cost planning, budgeting, monitoring and material reconciliation processes. - SAP PS allows integrated, activity-based cost planning and budgeting, standardized processes, and transparent material consumption tracking across projects. - It provides reporting on planned vs. actual costs, budgets, and milestones to aid control and decision making. - Full implementation requires defining the project structure, cost planning, material requirements planning, and milestone billing processes. Roles must be assigned to ensure each department updates their own data.

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    The document discusses implementing SAP Project System (PS) to standardize and improve project management processes. Key points include: - Currently, projects lack standard cost planning, budgeting, monitoring and material reconciliation processes. - SAP PS allows integrated, activity-based cost planning and budgeting, standardized processes, and transparent material consumption tracking across projects. - It provides reporting on planned vs. actual costs, budgets, and milestones to aid control and decision making. - Full implementation requires defining the project structure, cost planning, material requirements planning, and milestone billing processes. Roles must be assigned to ensure each department updates their own data.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    513 views33 pages

    SAP PS Way Forward

    Uploaded by

    pooshar
    The document discusses implementing SAP Project System (PS) to standardize and improve project management processes. Key points include: - Currently, projects lack standard cost planning, budgeting, monitoring and material reconciliation processes. - SAP PS allows integrated, activity-based cost planning and budgeting, standardized processes, and transparent material consumption tracking across projects. - It provides reporting on planned vs. actual costs, budgets, and milestones to aid control and decision making. - Full implementation requires defining the project structure, cost planning, material requirements planning, and milestone billing processes. Roles must be assigned to ensure each department updates their own data.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 33

    Organization didn t have any standard process of structuring the project Each project is different in nature, therefore cost

    t planning and Budgeting and control over the project is very important for the business. Projects are in various geographical locations and it is very difficult to monitor and control the consumption of material. Also reconciliation of material used in the Project is a tedious process. Currently we don t have the Cost Planning in place therefore analysis of Actual Cost with Budgeted Cost is not possible. Re-scheduling of Project Structure and activities, which is the common practice in any organization. Currently handled Excel which is very tedious and time consuming exercise.

    SAP PS is Completely integrated with other Modules. That means any transaction executed in any other module if affecting PS module will automatically be reflected at the respective place & Vice versa. Can Maintain different versions of same project to compare current status vs previous status. SAP provides well defined standardized process. Total work can be divided into smaller, manageable pieces and activities SAP Provides activity based cost planning & Budgeting. SAP gives proper way of allocating the fund at different stages of Project through a scientific method. SAP Provides focused solution for re-scheduling the project.

    PS Provides Contracting & Material Consumption Cost WBS/Activity Wise. SAP Provides the detailed reports of Planned vs Actual cost in line with progress of the project. We can Control the un authorized or wrong posting using user/system status. SAP provides milestone billing at any point of time and number of billings should be generated with respect to the work accomplished . SAP Provides solution to control the activities at sites in such a way that the material consumption and reconciliation of material becomes transparent. Provide a permanent record of project performance which can be analyzed for future performance improvements

    Characteristics of Projects
    Hierarchy of project parts Cross department
    Sales & dist Accounting Dates

    Planning and Controlling


    Resources

    Purchasing

    Controlling

    Costs / Revenues

    Budget

    Production

    Complex, unique

    Payments
    R

    SAP AG

    Project System Overview .


    Project Definition
    Identifier, Contains Start & Finish dates of Project

    Project Definition

    Work Breakdown Structure


    Hierarchy model of the Project

    WBS Elements

    Network
    Sequential structure showing activities

    Networks

    Activity
    Start and finish date of work or activity Processed w/o interruption, incurring costs, resources are required for execution

    Network Activities

    Milestones

    Milestones

    SAP Project system


    Projects are tasks with special characteristics: They are generally complex, unique, involve a high degree of risk and with precise goals. They are limited in duration and are cost and capacity intensive i.e. time, finance and resource dependent.

    1996

    Time

    Costs

    Project

    Progress

    Work

    WBS element functionality


    Dates - Scheduled dates - Actual dates

    Costs - Planned costs - Actual costs

    Budget - Original Budget - Budget Release

    Revenues - Plan revenues - Actual revenues

    Commitments -Purchase requisitions -Purchase orders

    Project structure in SAP


    Project Definition

    Option - 1

    WBS Element

    Activity

    Project Start & End Date

    Project structure in SAP


    Project Definition

    Option - 2

    WBS Element

    Activity

    Project Start & End Date

    System Status and User Status control


    CRTD PREL CRTD CRTD

    PREL

    REL

    CRTD

    CRTD

    CRTD

    CRTD

    CRTD

    REL

    REL

    REL

     What

    is Status control used for?

     Which elements?

    To allow or forbid certain business transactions.


     How?

    Project definition and WBS elements are affected.


     Why system and

    user status?

    Status are activated manually or automatically by the system.

    User status adds detail to the system Status.

    Relationships between Activities


    Logical Sequence FS Relationship Time Sequence

    SS Relationship

    FF Relationship

    SF Relationship

    Example of Time Planning


    20 3 3 6D 8 8 50 30 30 3 4 2D 4 5 40 5 6 3D 7 8 9 9

    10 1 1

    2D 2 2

    3D 11 11

    10 20 30 40 50 1 2 3 4 5 6 7 8 9 10 11 12 13 Days

    Earliest Start Date

    Earliest Finish Date

    10 1 1
    Latest Start Date

    2D 2 2 2
    Latest Finish Date

    Time planning board

    Cost Planning

    Planning Methods

    Costing Unit Costing

    Here we will enter the Coefficient or norms for 1 unit. This will be created as template & we will use this template as when we need of the same

    Costing Primary (Cost Element wise)

    Costing Report WBS Wise

    Costing Report WBS Wise

    Costing Report Cost Element wise

    Activity confirmation
    Project Structure

    WBS Elements

    Activity

    Release project

    Confirm Activity

    Reverse, if reqd

    Generate DPR

    DPR Report Date wise

    DPR Report WBS Wise

    Material Issue Process


    Current Process Material from Vendor

    Main Store

    Project

    Material Issue Process


    Proposed Process
    Cont. X

    Material from Vendor

    Main Store
    Cont. Y

    Tower -A

    Cont. Z

    Tower - B Sub Store of Contractors

    Project Summary Report

    Progress Analysis

    Actual costs
    Actual percentage of completion

    Budgeted cost of work performed Budgeted cost of work scheduled

    Variances

    Planned percentage of completion

    Missing Links There are 4 steps to take make this module in full swing

    1) Time Planning: Before Starting the Project in SAP PS, We need Complete Project/Tower Structure Otherwise we will not able to do the time planning properly. 2) Cost Planning & Quantity Controlling: We also need the Drawing before starting of the project to calculate the qty of work need to executed. Other wise we will not able to create BOQ & Cost Planning. 3) Material Requirement & Material Controlling (through SAP MM): On getting above items in place we can get the material requirement in planned manner. 4) Milestone Billing through SAP SD: We need to define the Project Wise/Tower wise Milestone to activate the milestone billing in SAP SD Module.

    Main Requirement Roles and responsibilities need to be defined to run the system systematically, Normally updation of information is left on IT deptt. which is wrong practice, Respective deptt. should take the responsibility to complete the data flow.

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