77011444 SAP PS Way Forward

7/31/2019 77011444 SAP PS Way Forward

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Organization didnt have any standard process of structuring the project

Each project is different in nature, therefore cost planning and Budgeting andcontrol over the project is very important for the business.

Projects are in various geographical locations and it is very difficult to monitorand control the consumption of material. Also reconciliation of material used inthe Project is a tedious process.

Currently we dont 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 commonpractice in any organization. Currently handled Excel which is very tedious andtime consuming exercise.


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SAP PS is Completely integrated with other Modules. That means anytransaction executed in any other module if affecting PS module willautomatically 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 Projectthrough a scientific method.

SAP Provides focused solution for re-scheduling the project.


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PS Provides Contracting & Material Consumption Cost WBS/Activity Wise.

SAP Provides the detailed reports of Planned vs Actual cost in line withprogress 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 billingsshould 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 forfuture performance improvements


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Project System Overview.

Project Definition

WBS Elements

Networks

Network Activities

Project Definition

Identifier, Contains Start & Finish dates of Project

Work Breakdown Structure

Hierarchy model of the Project

Network

Sequential structure showing activities

Activity

Start and finish date of work or activity

Processed w/o interruption, incurring costs, resources arerequired for execution

MilestonesMilestones


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Costs

Work

Time

1996

ProgressProject

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.


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Dates

- Scheduled dates- Actual dates

Budget- Original Budget- Budget Release

Costs- Planned costs- Actual costs

Revenues- Plan revenues- Actual revenues

Commitments-Purchase requisitions-Purchase orders

WBS element functionality


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Project structure in SAP


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Project structure in SAP


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System Status and User Status control

CRTD

CRTD CRTD

CRTD CRTD CRTD CRTD

PREL

PREL REL

CRTD REL REL REL

What is Status control used for?

To allow or forbid certain businesstransactions.

How?

Status are activated manually or

automatically by the system.

Which elements?

Project definition and WBS elementsare affected.

Why system and user status?

User status adds detail to the system

Status.


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Logical Sequence Time Sequence

FS Relationship

SS Relationship

FF Relationship

SF Relationship

Relationships between Activities


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2020 6 D6 D

333 88833 88

3030 2 D2 D

444 55533 44

4040 3 D3 D

666 88855 77

1010 2 D2 D

111 22211 22

5050 3 D3 D

999 11111199 1111

50

40

30

20

10

1 2 3 4 5 6 7 8 9 10 11 12 13 Days

222

Earliest

Start Date

Latest Start

Date

Earliest Finish

Date

Latest Finish

Date

1010 2 D2 D

111 22211 22

Example of Time Planning


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Time planning board


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Cost Planning


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Planning Methods


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Costing Primary (Cost Element wise)


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Costing Report WBS Wise


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Costing Report Cost Element wise


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Project Structure

WBS Elements Activity

Release project

Confirm Activity

Reverse, if reqd

Generate DPR

Activity confirmation


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DPR Report Date wise


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Material Issue Process


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Material Issue Process


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Actualpercentage ofcompletion

Actual costs

Budgeted cost ofwork scheduled

VariancesBudgeted cost ofwork performed

Planned percentageof completion

Progress Analysis


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Missing Links

There are 4 steps to take makethis module in full swing


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1) Time Planning:

Before Starting the Project in SAP PS, We need Complete Project/TowerStructure 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 & CostPlanning.

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 themilestone billing in SAP SD Module.


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77011444 SAP PS Way Forward

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