Project(Cost(Planning, Forecasting(and(Reporting ... · PDF fileProject(Cost(Planning,...

Project Cost Planning, Forecasting and Reporting Solutions in SAP Enhanced by Noveco ePM 2.0

Why Noveco ePM? Solution Overview

Business Challenges

Business Challenges

•  Your Project System is a cost collector, not a planning-reporting system

•  All planning, forecasting and reporting functions outside of SAP ERP

Symptoms:

•  You use fragmented and disconnected tools that are not integrated with ERP system

•  High use of excel spreadsheets

•  Project Managers and Project Controllers make decisions that are based on inaccurate or outdated data

•  Inaccurate Project Forecasting, leading to incorrect reports, overspending, wrong profit recognition

•  No integrated system to record variations and issues

•  No information transparency and consistency

•  Lack of standardization of project delivery

As a result:

Business Challenges

•  Continue using excel spreadsheets

•  Search for a third-party non-SAP product, integrate it with SAP ECC

•  Follow your PS consultant recommendations to develop complex solution in BI or BPC

•  Implement complex and expensive SAP CPM tool based on BI-IP platform

•  Implement Noveco ePM solution in your SAP ERP system (no BW, BI, BI-IP, BO or BPC are required)

What are your options:

Solution Overview

Why Noveco ePM? Business Challenges

Why Noveco ePM ?

Effective Project

Management

Execution

Monitoring Forecasting

l  Reporting l  Analysis l  Settlement

Effective Project

Management

Execution



l  Estimating l  Planning l  Budgeting

Noveco ePM is a family of seamlessly integrated software components designed to complement and enhance SAP's standard Project System (PS) functionality, with a focus on easy project planning, forecasting, variation management and reporting directly in SAP ECC Noveco ePM enables management of your project lifecycle directly inside your ERP system (no other tools needed)

Shor

t ter

m

Long

Ter

m

Program and Project Management

Strategic & Operational Portfolio Management

Monitoring

Project management

Corporate Services

Financials & Controlling

Project Accounting

Procurement Time recording

Human Resources

Business Intelligence

Execution Planning Forecasting

Planning Balancing Initiation Execution Monitoring

Reporting: Financials &

Resources on Portfolio,

Program and Project level

Shor

t ter

m

Long

Ter

m



Monitoring

Project management

Corporate Services


Project Accounting


Human Resources







Project Management

Program and Portfolio Management

Shor

t ter

m

Long

Ter

m



Monitoring

Project management

Corporate Services


Project Accounting


Human Resources







Project Management

Program and Portfolio Management

Program and Portfolio Management +

Project Management =

Portfolio and Project Management

(PPM)

Shor

t ter

m

Long

Ter

m



Monitoring

Project management

Corporate Services


Project Accounting


Human Resources







Noveco ePM enables Project Management process in your SAP

ERP system

Project System Integration

Capacity and Resource

Panning

•  PS (Project System) is one of the most integrated modules in SAP ERP

•  Noveco ePM enhances SAP

Project System enabling integrated project management directly in SAP ECC

•  You will not need any other tools like excel, BI, BO etc. to manage your project lifecycle in SAP.

Create Project, Schedule Dates and Distribute Costs Project Manager Workbench Variations and Issues Project Manager Portal

Solution Overview

Business Challenges Why Noveco ePM?

Project Management Lifecycle

•  Create Project Stricture

•  Dates Scheduling

•  Cost and Revenue Planning

•  Budget approval

•  Cost Distribution

Effective Project

Management

Execution




Create Project Structure, Schedule Dates

2. Schedule dates using Planning Board

1. Create project using Project Builder

Easy Cost Planning …

•  Easy Cost Planning is one screen transaction where you can view, enter and change project plan costs

•  Plan: Labour, Materials, Plant, Sub-contracts etc. in one screen

•  You can create cost plan on multiple costing versions

•  When you change cost plan values the total values updated immediately

• With ECP you can create cost plan on WBS or network activities

•  You can generate cost plan in ECP from external estimating systems

•  You can create cost plan using form-templates

… is a simple way to plan cost on WBS or Network Activities

Jul-12 Aug-12 Sept-12

Cost Planning with distribution Network Costing Easy Cost Planning

Vers

ion:

N01

Vers

ion:

N03

Vers

ion:

N02

Vers

ion:

000

Cost Plan

Plan Cost Distribution

Dates Plan

or

SAP Project Planning Board ó MS Project (ó Primavera)

Automatic or Manual distribution of planned costs

T

$

Feb-12 Mar-12 Apr-12 Jun-12

Vers

ion:

N01

Vers

ion:

N03

Vers

ion:

N02

Cost Planning: Budget Approval

Cost Plan

Vers

ion:

000

Approve Original Budget

Create Initial Forecasts

✔

Vers

ion:

BD

G

Vers

ion:

FST

Original Budget (locked for changes)

Forecast To Complete


$



$


• Cost Plan created in Easy Cost Planning, Network Costing etc.

•  Selected plan cost version is copied to Original Budget version and locked for changes.

• Original Budget values are copied to Forecast version to generate initial Cost To Complete.

•  Forecast version represents project rolling forecasts and will be managed by Noveco ePM

Vers

ion:

001

Vers

ion:

003

Vers

ion:

002

Revenue Planning

Revenue Plan

Vers

ion:

000

Enter Revenue Plan

By Period

✔

Vers

ion:

BD

G

Original Revenue Plan (locked for changes) Jul-12 Aug-12 Sept-12

$


• Create revenue Planning using SAP standard revenue planning functions:

• Detailed Planning

•  Sales Order with Billing Plan

• WBS Revenue Planning with Billing Plan


Solution Overview


Noveco ePM Workbench • Noveco Project Manager workbench provides one single

integrated environment to manage your project directly in SAP ERP

•  There is no BW/BI, IP is being used; No Interfaces, no z-tables, no alternative data storages etc.

• All information is read from and written to SAP ERP directly

Noveco ePM Workbench – integrated view You you can distribute your cost plan manually be period

• Budget • Cost To Complete •  Purchasing Commitments

Integrated Project Management in SAP

* Project Variation Management Project Dates Scheduling Cost & Revenue Planning Project Builder

Dashboard reporting

Planning and

Execution

Monitoring and

Forecasting

Reporting and

Analysis

* Project Manager Workbench •  Financial Monitoring •  Cost To Complete

management •  In-built Analytics •  Drilldown reporting

* Noveco Applications


•  Procurement

•  Time Sheets

•  Progress assessment

•  KPI Monitoring

•  Forecasting (financial re-planning)

Effective Project

Management

Execution




Project Actual Costs flow

Time sheets

Expenses &

other costs

Material

Consumption from stock

Sub-Contracted Services

Equipment & Materials Direct

Project

Project Manager Workbench: integrated information

Open Project

Automatically recalculate Cost to

Complete

Calculate Overheads on Cost

To Complete

Distribute Cost To Complete

including OH

Recalculate Estimated Cost at

Completion

Display information on

integrated screen

Manually change Cost To Complete

Save Changes •  Cost To Complete is automatically reduced from actual costs and commitments

•  Dynamic and real-time integration with SAP ERP

Project Manager Workbench: integrated costing information

Drill Down to the actual Confirmations or any other document by simply click on report button

Project Manager Workbench: integrated costing information

Although Cost To Complete is automatically adjusted, you can manually change it if required

Noveco ePM Workbench:

Red exception indicator against network activity “Design” means that Estimated Cost at Completion (EAC) exceeds allocated Budget by $5400 or by 11,49%

Noveco ePM Workbench:

•  Navigate to the top WBS to view aggregated information.

•  The Forecast Profit Margin has reduced to 11,79%

Project KPIs grouped by Cost Groups (Value Category)

Costing information is aggregated are grouped for the selected project object:

•  By Value Category •  Resource Type •  Cost Element

Cost Grouping: Value Category, Resource Type

Engineering & Design

Labour

Materials

Value Categories

Designer

Engineer

Structural Designer

System Designer

Resource Type

Civil Engineer

Structural Engineer

Fitter

Constr. Labour

Cost Elements

Period View by Value Category

Period view by Value Category

Period view by line item

Project Financials monthly snapshot Noveco ePM tracks forecast history automatically and it does not require version copy

You can review project KPIs (Budget, Estimated at Completion, Actual Costs, Cost To Complete, Revenue, Variations etc.) at any period in the past

No version copy!!


Solution Overview


Project Variation Management

•  View and Manage project Variations & Issues from the Workbench

•  Drill down to the variation document from the workbench

Project Variation Management

•  You can Plan Costs and Revenue Variations within one Variation document

•  Plan Profitability of your variation

•  Assign Costs and Revenue plan to different project WBS or Network activities

•  Status Control to automatically update project Revenue, Budget and Forecast


•  Project Reporting

•  Program Reporting

•  Analysis

•  Long Term planning and forecasting

Effective Project

Management

Execution




Project Report: example

•  You can compare current Estimated Cost At Completion (EAC) vs. EAC from any other months in a past without a need to select special “period” cost version.

•  You can generate a report to demonstrate EAC dynamics over period of time since project began.

Integrated Company view

Company

Program and Portfolio

Management

Integrated Project Management

Corporate Services and day-to-day business operations

Set S

trat

egy

Proj

ects

Exe

cutio

n

Strategy analysis

Detailed project management information produced and managed in SA ERP provides a solid foundation for analytical program reports in PPM or IM


Solution Overview


Noveco Project Manager Portal inside SAP ERP Noveco ePM Portal presents all projects assigned to a project manager

–  Personalized project selection is created, saved and “remembered” by the system

Projects exceptions and Key Performance Indicators are displayed against each project Graphical representation of project KPIs

–  For all project portfolio –  Selected project(s), WBS or

network activity Drill down to key business transactions:

–  Project Builder, Project Manager Workbench, reports, line items •  That you don’t need BW/BI system to run comprehensive reports like

this one above?

•  PS info-system has been designed to hold all related project information. BW cubes simply mirror PS info-system inside BI

Did you know?

Project Manager Portal inside ECC

•  Displays cumulative values of: Budget, Estimated costs at Completion (EAC), Cost To Complete (CTC), Revenues, Actual costs, Commitments

•  Values are presented By entire portfolio (group of projects) or by selected project or WBS


•  Displays historical trends from the beginning of the portfolio (or a single project) Budget, Estimated costs at Completion (EAC), Cost To Complete (CTC), Revenues, Profit Margin

•  You can see how your portfolio or a project evolved over time

•  Values are presented by entire portfolio (group of projects) or by selected project or WBS


Review your Budget, Cost To Complete and Estimated Cost at Completion by Value Categories by Period

Supported Project Structures

Option 1: WBS for Cost Planning, Execution and Forecasting


Construction

Structural Engineering Drafting

Sub-contracted services

Construction worker

Materials

Construction project

•  WBS Hierarchy only (w/o Network Activities) •  WBS used for cost planning, budgeting, cost forecasting •  Actual costs, time confirmation and Purchasing Commitments posted to WBS elements •  Cost To Complete are calculated and manually updated on WBS elements

Option 2: WBS as Planning Element for Cost Planning and Forecasting

Engineering

Construction

Structural Engineering

Drafting

Sub-contracted services

Construction worker

Materials


•  WBS marked as Planning element used for cost planning, budgeting, cost forecasting. •  Actual costs, time confirmation and Purchasing Commitments posted to lower WBS •  All actuals and commitments are rolled up to Planning WBS element. Cost To Complete are calculated, distributed and manually updated •  Using this structure you can plan and execute work packages w/o going have to plan each sub-package

Option 3: WBS for Cost Planning and Forecasting; NWA for Execution


Structural Engineering Drafting


Design

Drafting

Engineering

•  WBS and Network structure •  WBS used for cost planning, budgeting, cost forecasting •  Network Activities used for scheduling, resource planning, collecting actual costs, procurement •  Cost To Complete are calculated and manually updated on WBS element

Option 4: NWA for Planning, Execution and Forecasting



Drafting

Engineering

•  WBS and Network structure •  Network Activities used for cost planning, budgeting, cost forecasting •  Network Activities used for scheduling, resource planning, collecting actual costs, procurement, time

confirmation •  Cost To Complete are calculated and manually updated on Network Activities

Construction

Earth moving

Construction

Option 5: NWA for Cost Planning and Forecasting, Orders for Execution



Drafting

Engineering

Construction

Earth moving

Construction

•  WBS, Network and PM/CS Order structure •  Network Activities used for scheduling, cost planning, budgeting, cost forecasting •  Network Activities and PM/CS orders resource planning, collecting actual costs, procurement, time confirmation •  Cost To Complete are calculated and manually updated on Network Activities

Option 6: WBS for Cost Planning and Forecasting, Orders for Execution

•  WBS and PM/CS Order structure •  WBS used for cost planning, budgeting, cost forecasting •  PM/CS orders resource planning, collecting actual costs, procurement, time confirmation •  Cost To Complete are calculated and manually updated on WBS

Pump Maintenance

Electrical Engineering

Maintenance Project

Electrical works

Mechanical works

Engineering

Information Flow Ex

ecut

ion

Transactional System

ePM Project Forecasting

Mon

itori

ng &

Fo

reca

stin

g

●  Project Manager Workbench with KPI view ●  Automatic Forecasting ●  Manual adjustment of CTC or Work TC ●  Problem Focused Navigation ●  Exception and drill down reporting ●  Integrated variations into cost forecast ●  Forecast history

Anal

ysis

, Re

sour

cing

Re

port

s


Stra

tegi

c

Plan

ning

Program Portfolio Planning

Company Strategy Planning

Result Analysis PS Information System

Resource Planning

ePM Variation management

Estimation Budget values

Time Sheets, Invoices Actual Costs

Sales Orders Revenue

Purchase Orders, Commitments

Variations

ePM Project Cost Forecasting and Variation Management

●  Replaces several steps/transactions by one screen

●  Intuitive and Easy navigation. Quick identification of “problem” areas via exception traffic lights

●  Provides one central place to review KPIs, update forecasts, execute analytical and drill down reports

●  Context drill-down reports on Purchase Orders, Actual Costs, Confirmations, Open Commitments, Variations

●  No modifications, no custom tables, instant and seamless integration with SAP ECC (e.g. Project Builder, PS Info System, MM, PM, FI/CO etc.)

New User Experience in SAP PS:

Solution Concept: Noveco Cost Forecasting functionality

•  Management of Costs To Complete (not creating of a new a new cost plan)

•  Auto recalculation of project Cost To Complete from actual costs and commitments with automatic re-scheduling of cost to complete over remaining duration

•  Manually adjust remaining Cost and Work To Complete where needed

•  Manual Distribution of Budgets, Cost To Complete and Commitments

•  Recalculate Cost to Complete as background job for multiple projects

•  Multi-level Cost To Complete management utilizing “planning level” concept for multi-tier project structures allowing integration of work orders (SC/PM and PP) into project cost forecasting

•  Period sensitive Cost Forecasting using planning period, designed for month end processes

•  Automatic Cost Forecasting history recording (w/o need to version copy)

•  Instant Integration of cost forecasts with Resource Planning, PS Info System, Project Result Analysis

Rich Functionality

For more information visit Noveco Systems on Novecosystems.com

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