Best Practices for STOs in SAP

Justin Fox, Senior Consultant, Prometheus Group

Building a Turnaround in SAP

Build the Turnaround Structure to match the Execution• Want the SAP Project to flow between the phases of the Turnaround• Use the Project Builder, CJ20n, to build the breakdown structure based on

Turnaround execution, not cost buckets• Don’t be afraid to get as granular as needed with the PS side

• Take the structure down to whatever level of detail makes sense, and assign the appropriate periods for each segment.

• Structure with PS for now, but we will execute off of the PM side

Basic Shutdown Structure

Major Turnaround• Pre-work

• Area 1,2,3• Scaffold Work• Pre-Fab

• Execution• Area 1,2,3

• Upgrades• Major Segments

• Overhaul• Major Segments

• Other Work• PMs• Other Correctives

• Post-Work• Area 1,2,3

• Scaffold down, etc.

Project Definition & First Level WBS• WBS 1

• Network• Activity• Activity

• WBS 2• WBS 2.1

• Network• Activities

• Network• Activities

• Network• Activity• Activity

• WBS 3• Network

• Activities

IN SAP

Why Networks and Activities?

Activities Provide:• Duration for timeline tracking/budgeting• Avenue for pre-built logic

Thinking Ahead:• Templates using Activities with duration and logic = Project Skeleton!• With Top-down scheduling, assigning orders will drop them into place

Now what about PM?

Question: How are PM orders linked to PS elements?

Answer: Additional Data Tab

Next Question: But doesn’t my settlement rule already have a WBS?

Next Answer: Additional Data Tab is not related to Settlement Rules. We can structure one way and settle another.

• Think structuring a turnaround, but half of the turnaround is capitalized and the other half is O&M Budget. Same structure, different settlements. Bingo.

Ok, but make it easy

Option 1: Mass Change

Option 2: ADPMPS

ADPMPS: Drag and Drop Mapping

How does it come out in the end?

I built it, now what?

Baselining for tracking purposes

Update and Track in SAP• Notes• Confirmations• Percentage Complete

S-Curves• Trending where we are versus where we are headed

Is my Turnaround on track?

Will we be done in time and under budget?I’ve planned to achieve X by now and I’m at Y. Is this good or bad?

2 weeks into a 4 week Turnaround:• Planned Cost at this point: $2.4 million• Actual Cost to date: $2.7 million

Am I over budget??!What am I missing?

Earned Value Analysis

There is a 3rd Parameter!Earned Value = (Percent Complete of task) * (Planned Cost of the task)This value is assigned to the date of the last update to the task and plotted with Planned and Actual cost

Percentage Complete As of Planned Cost Earned Value

75% Yesterday $1000 $750

Earned Value Analysis

At any point in the turnaround, we can compare all 3 cumulative values, by date, to project where we are and where we are headed:

𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝑃𝑃𝑃𝑃𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸

1 indicates that are On Schedule. A value greater than 1 means we are ahead of schedule and less than 1 means that we are behind.

Earned Value Analysis

Now that we can check the schedule, what about the budget?

𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐸𝐸𝑃𝑃𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸

1 indicates that are On Budget. A value greater than 1 means we are over budget and less than 1 means that we are under.

The 0.3 rule

Earned Value Theory says that after a project is past the 25-30% mark, once any of these parameters is more than 0.3 away from 1 (<0.7 or >1.3), there is no return to 1 barring major changes or catastrophic events.

So I ask again, Is my Turnaround on track?

2 weeks into a 4 week Turnaround:• Planned Cost at this point: $2.4 million• Actual Cost to date: $2.7 million• Earned Value to date: $2.8 million

𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝑃𝑃𝑃𝑃𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸

= 2.82.4

= 1.167 -> Ahead of schedule!

𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐸𝐸𝑃𝑃𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸

= 2.72.8

= 0.964 -> Under Budget!

What about reporting?

PS was built as a reporting machine in SAP!

Reporting on the Structure• CN41n – Structural Breakdown reporting• S_ALR Reports – Many variations with choices for Plan vs Actual, as well as

budgeting, versions, and more

Templating for Next Time

Save sections of projects as templates for reuse later• Project Templates – Complete base structure• WBS Templates – Area-based breakdowns• Network Templates – Plug and chug segments

Conclusion

Turnaround Management in SAP is possible. And not that hard.• Have a structure that matches execution• Plan the skeleton in PS, apply executable work from PM• Update, Track, and Analyze as you go• Leverage great structures and lessons learned for the next turnaround

Questions?