SAP PS Way Forward
Transcript of SAP PS Way Forward
Organization didn t have any standard process of structuring the project Each project is different in nature, therefore cost 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 ProjectsHierarchy of project parts Cross departmentSales & dist Accounting Dates
Planning and ControllingResources
Purchasing
Controlling
Costs / Revenues
Budget
Production
Complex, unique
PaymentsR
SAP AG
Project System Overview .Project DefinitionIdentifier, Contains Start & Finish dates of Project
Project Definition
Work Breakdown StructureHierarchy model of the Project
WBS Elements
NetworkSequential structure showing activities
Networks
ActivityStart and finish date of work or activity Processed w/o interruption, incurring costs, resources are required for execution
Network Activities
Milestones
Milestones
SAP Project systemProjects 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 functionalityDates - 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 SAPProject Definition
Option - 1
WBS Element
Activity
Project Start & End Date
Project structure in SAPProject Definition
Option - 2
WBS Element
Activity
Project Start & End Date
System Status and User Status controlCRTD 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 ActivitiesLogical Sequence FS Relationship Time Sequence
SS Relationship
FF Relationship
SF Relationship
Example of Time Planning20 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 1Latest Start Date
2D 2 2 2Latest 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 confirmationProject Structure
WBS Elements
Activity
Release project
Confirm Activity
Reverse, if reqd
Generate DPR
DPR Report Date wise
DPR Report WBS Wise
Material Issue ProcessCurrent Process Material from Vendor
Main Store
Project
Material Issue ProcessProposed ProcessCont. X
Material from Vendor
Main StoreCont. Y
Tower -A
Cont. Z
Tower - B Sub Store of Contractors
Project Summary Report
Progress Analysis
Actual costsActual 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.