1sappsintro 150427080909 Conversion Gate01

India SAP CoE, Slide 1

Introduction to SAP Project SystemsIntroduction to SAP Project Systems

Prerana Dhumale


Target AudienceTarget Audience

This course is intended for the following audiences:This course is intended for the following audiences: Project teamsProject teams SAP ConsultantsSAP Consultants


ObjectivesObjectives

2


Lesson 0: Introduction

Lesson 1: Project Structures

Lesson 2: Project Planning

Lesson 3: Project Budgeting

Contents

Lesson 4: Scheduling & Execution

Table of contentsTable of contents

4

Lesson 5: Project Period End Closing

Lesson 6: Project Analysis & Reporting

Lesson 7: Other SAP Proj. Mgt. Tools


Introduction - Project Systems What is a Project?

A temporary endeavor undertaken to create an unique product or service, as a result that a company carries out, characterized by the uniqueness of its general conditions and constraints. These conditions include,

Objectives of the project Time frame for executing it Financial and capacity-related restrictions

SAP PSSAP PS is a project management tool that assists you throughout all the phases of your project. Through the high level of integration between SAP PS and other SAP functions, such as Logistics, Accounting, and Human Resources, SAP PS ensures that the necessary business processes are handled quickly and efficiently.

Projects usually involve cross-departmental and highly complex business processes.Projects are often cost-intensive, time-consuming, and of strategic importance.

ProjectConstraints


Introduction - Project Systems

Project Types Internal ProjectsProjects financed internally with in the Organization for their New, Expansions, Overheads, R&D

and so on. These project types are: Overhead Cost Projects (Ex: Maintenance, shutdown and R&D projects) Capital Investment Projects (Ex: Building a factory, Expanding existing facility)

External ProjectsProjects financed from external organizations or Agencies and creating revenue’s to the

executing/undertaking Organization. Customer Projects (Ex: Building a Cell Tower, building roads and Bridges etc)


Key Functions:Key Functions: To carry out complex, unique, and high degree of risk activities To carry out complex, unique, and high degree of risk activities

in a structured manner.in a structured manner. To monitor dates and schedules.To monitor dates and schedules. To monitor costs and revenues.To monitor costs and revenues. To Control of budget .To Control of budget . To trigger Billing schedules, cash flow plans.To trigger Billing schedules, cash flow plans. Resource allocation and monitoring.Resource allocation and monitoring. To monitor, track and control Project purchases.To monitor, track and control Project purchases. To monitor the Project progress w.r.t. Cost, Time, Revenue and To monitor the Project progress w.r.t. Cost, Time, Revenue and

% of completion.% of completion. Simulations and Flexible reportingSimulations and Flexible reporting

Introduction - Project Systems (cont…)


Introduction - Project Systems (cont…)

Comparison with Other Applications: Flexibility of PS making its use more common

Flexibility to Operate Higher level with in the Organization.

Flexibility in integrating with other external applications.

PS has very tight integration with the FI/CO modules FI/CO has a much broader usage on projects. Flexible Reporting and Monitoring tools Tight integration with new generation Project Management tools


Introduction - Project Systems (cont…) Project System Org. Structure ElementsProject System Org. Structure Elements

The Project System has no organizational structures of its own. Various elements already defined in Accounting and Logistics will be used in Projects. These elements will be assigned to various Project Structure elements. Required elements are:

Controlling Area Business Area if defined Company Code Profit Centre Plant Currency Technical Location/Equipment Responsible Cost Center Investment Program Joint Venture Jurisdiction Code Purchase Organization Purchase Group Storage Location


Investment Project Process

Production Administration Maintenance

I M Inv. Prog

“Investment Positions”

Approval

Budgeting

Implementation

Retirement

Replacementinvestment

Planning

IdeaAppropriation

Request InvestmentMeasure

“Pre-Investment”

Business Planning

Settlement andcapitalization

Maintenanceand use

10

PS


Customer Project Process ( ETO)

Create Quotation

Create Sales Order

SDSD

Create Enquiry

Proj. Planning

Budgeting & Approvals

Procurement

Settlement

Project Close

Proj. Creation

Proj. Execution

Delivery

11

PS

Billing & Invoicing


Customer Project Process - Construction

Create Project

Enquiry to Proj.

Create Enquiry

12

Standard WBS

Standard Network

Concept & Product Development

Schedule Project

Vendor Quotations

Price Comparison

Make Or Buy

BuyMake

Assign Mat to Proj.

Proj. Simulation

Create PO

GRCreate Sale Order

Create Billing & Invoice Plan Release Project

Release Execution

Delivery & Billing

Project Close


Integration Functions With Other ModulesIntegration Functions With Other Modules

13

-Sales promotion Proj

-Sales Campaign- ETO process

- Milestone Billing

- Stocks- reservations

- Material issue- Material Value

- Direct Capitalization- Invoice receipt

- Revenue recognition

- Person Responsible- Workflow

- Partner functions- Confirmation with

personnel number

-Capitalisation- Depreciation

- AuC- Asset balances

- Financial Statements

- Purchasing- Contract

- Goods receipt- Invoice receipt

- Assembly processing

- IM Program- Position ID

- AR- Budget Distribution

- Proj. Creation

- Internal Order controlling- Settlement

- Cost Centre accounting

- Settlement CC

SD

MM

FI

CO IM

PP

MM

AMHR

Project SystemsProject Structure

History

PS

- Order Creation- Planning

- Budgeting- Order Cost control- AuC, Fixed Asset

PM


Lesson 0: Introduction

Lesson 1: Project Structures

Lesson 2: Project Planning

Lesson 3: Project Budgeting

Contents

Lesson 4: Scheduling & Execution

Table of contentsTable of contents

14

Lesson 5: Project Period End Closing

Lesson 6: Project Analysis & Reporting

Lesson 7: Other SAP Proj. Mgt. Tools


To carry end to end process of a project, the project goals must be defined and activities To carry end to end process of a project, the project goals must be defined and activities to be carried out must be structured. A clearly defined structured project is the basis for to be carried out must be structured. A clearly defined structured project is the basis for its planning, monitoring, control and success.its planning, monitoring, control and success.

Project Structures

Depending on the type of project and the monitoring needs, projects in the Project System can be structured using:

Work breakdown structure (WBS)

We can use either Operative Projects or Standard projects for structuring the Project. Standard WBS and standard networks allow you to standardize and reuse structures and sequences of events in a project.

Networks/Activities


Project Structures


Work Breakdown Structure

WBS Elements

A work breakdown structure is a model of a project, and shows the project activities to be carried out as a hierarchical structure there by split the project into manageable units. You can define WBS hierarchy based on:

Logic and Process oriented Function Oriented Object Oriented

WBS divides the project step-by-step into structure elements, these elements are called work breakdown structure elements (WBS Elements). The various work packages in the project are described in individual work breakdown structure elements (WBS elements). You can further divide these elements at various levels until you reach the level of detail you require.


Project Definitions

Work Breakdown Structures

WBS Elements

Project Definitions

Project Definition and Work Breakdown Structure


Structure of a Project

Project Definition

CP-0001Cell Tower

WBS Element

CP-0001

CP-0001- 1Engineering

CP-0001- 2Procurement

CP-0001- 3 Erection

CP-0001- 4Acceptance

CP-0001- 1 - 1Civil

CP-0001- 1 - 2Mechanical

CP-0001- 2 - 1PSU

CP-0001- 2 - 2Electronic

CP-0001-2 -3Cabin

Work Breakdown Structure

Cell tower Construction


Confirmation Goods Issue Resource usage

Basic Dates Scheduled Dates Actual Dates

Original Budget Budget Updates Release Budgets Availability Control

Purchase Requisition Purchase Order

Dates:

Budget:

Commitments:

Execution:

“WBS Structure”

Planned Costs/Revenues Actual costs/Revenue

Costs & Revenues:

Overheads Settlement Earned Value Analysis

Periodic Processing:

Breakdown Structures used for?


Work Breakdown StructurePrerequisites for WBS creation:

Project profile Project Coding mask Project Definition

Data for WBS elements: Basic Data Project Responsibilities Organization Data Control Data Documents Project Summarization Data Settlement Rules Tax Depreciation Simulation Data Assets Under Construction Capital Investment Measures


Control Field Key Simulation

Status Profile Validation

Substitution

Controlling Object Class Planner Profile Budget Profile

Settlement Profile investment Profile

…

Planning Board / Dates WBS Scheduling

Planning Board Profile Hierarchy Graphic Network Profile

Capacity req Planning …

Organization Controlling Area Company Code Business Area Profit center

Plant Proj Currency

Project Profile

Project Profile


Project Coding MaskSpecial Characters for Projects

Length of

CodingLength control

Entry Tool

Entry Tool

Coded Proj only

Auto Number Assignm

ent

Coding Mask

Lock Operative structure

Lock Standard structure

I

Key 0 = numberX= Alphanumerical


Project DefinitionProject Definition

Project definition: It is a framework for a business undertaking with a fixed goal to achieve with given resources. It contains dates and organizational information that are binding for the entire project. Project Definition Description Person Responsible Applicant number Organization units Dates


Data for WBS elements

123 4

56

1. Operative indicators2. Responsibilities3. Org. Assignments4. Controlling Profiles5. WBS Dates6. User Fields


Project Creation Methods

Project Builder

Hierarchy Graphic

Incorporate

Copy

Manual

= Operative Structure= Standard Structure

1 2

34


Project CreationUsing Project Builder

Current project

Selected Object

Overviews of selected Object

Detailed screen for Selected Object

Work List & Templates


Templates and Work Breakdown Structures

XX-9999 CP-0001

CX- 9999-01 CX-9999-02 CP-0001-01

Template Operative

CP-0001-02


Start

Finish

IncludeTemplate

1 1

1.01 1.02 1.01

Template Operative

1.02

Include Template


CRTD

CRTD CRTD

CRTD CRTD CRTD CRTD

PREL

PREL REL

CRTD REL REL REL

What is Status control used for? To allow or Block certain business

transactions.

How? Status are activated manually or

automatically by the system.

Which elements? Project definition and WBS

elements are affected.

Why system and user status? User status adds detail to the

system Status.

System Status & User Status Control


System Status

SYSTEM STATUS

The following status are set by the system/user as the project progress through different stages:

CRTD Created (Automatic)

REL Released (Manual)

LKD Locked (Manual)

UNLK Unlock (Manual)

BUDG Project Budgeted (Automatic)

AVAC Availability Control Activated (Automatic)

…


A status set by the user to complement the system status for a given status object. You can use only a user status belonging to a status profile (defined in Customizing) and assigned to the relevant status object.User statuses enable you to extend the control of business processes managed by the system status. You can set and delete user statuses manually when carrying out business transactions.

WBS User Status

In the following steps you add the system status provided by SAP to your user status.You can define a user status for:

Project_definitions WBS elements Network headers and network activities

User Status’s


Created (CRTD) Use

Initial system status for new WBS elements Allows project structuring, date and cost planning. Allows Budgeting

Prerequisites The superior WBS element MUST have status Created

Released (REL) Use

Allows costs and revenues to be posted to the project Passed onto lower level WBS elements

Prerequisites Created must have been set

CREATED

RELEASED

….. Cont

System Status (1)


Technically Complete (TECO) Use

For projects completed from a technical point of view. Allows costs and revenues to be posted to the project.

Prerequisites Created or Released must have been set.

Closed (CLSD) Use

Prevents actual postings. Prevents network creation.

Prerequisites Released or Technically complete must have been set.

TECHNICALLY COMPLETE

FLAGGED FOR DELETION

CLOSED

Deletion Flag (DLFL) Use

Objects are deleted logically, but not physically. Prerequisites

Allowed if all costs have been settled completely. Allowed if there are no reservations or commitments.

System Status (2)


Demo & Exercises

Menu path: Logistics Project System Project CJ20N – Project BuilderTransaction: CJ20N

Menu path: Logistics Project System Information System Structures Individual Overviews WBS Elements S_ALR_87015066 – WBS Elements Transaction: S_ALR_87015066

Menu path: SAP Customizing Implementation Guide Project System Operative Structures Work Breakdown Structure (WBS) Create Project ProfileTransaction: OPSA


Networks and Activities

Network / Activities

NetworksA network represents the flow of a project or of a task within a project.

During the life of a project, networks are used as a basis for planning, analyzing, controlling and monitoring schedules, dates and resources (such as people, machines, materials, documents and drawings). You can assign networks to a project.

A network is a special type of work order that has the same structure as production orders, maintenance orders, and inspection orders in the System.

ActivitiesIndividual tasks in the project are mapped as activities in a network. Activities having the following characteristics:

They have a duration. They have a defined start and a defined finish. Resources are needed to execute them. They incur costs.


Milestone Trend analysis Billing Milestones

Work Dates, Capacities Costs

Dates Costs Commitments Payments

Dates Costs Commitments Payments Purchased Parts

Overheads Settlement Process Costs

Dates Costs Payments

Activities and Networks - FunctionsActivities and Networks - Functions

Internal Activity:

External Activity / Service:

Material:

Periodic Processing:

Costs Activity:

Milestones:

“Network”

April7

May

June


A network consists of the following: Activities Activity elements Relationships

Networks Structure (1)Networks Structure (1)

Engineering 40 Design 50 Production 60 Assembly 70 Start Up

30 Procurement

10

20 Work Scheduling

Activity Relation shipLegend


Networks Structure (2)

External

Service

Reference Dates from Activity Start or Finish

Activity Elements Work External Costs Service

Four Types of Activities Internal Processing External Processing Costs, services General Cost Activities


Engineering Assembly

Activity Relation shipLegend

Sub Networks

Production Start Up

Settlement RuleProfit CenterOther data

Sub Network

Network


Network Field Requirements1

23

4

5

67

8

1. Network No and Description2. Dates3. Scheduling Parameters4. Allocation (Header or Activity)5. Assignment to Org Elements6. MRP relevant control7. Costing base from Profile8. Purchase Requisition Control


Network Graphic Details

Activitynumber

Controlkey

Duration

Description

Earliestfinish

LatestfinishFloats

Relationship

Activity


Resource Planning

External

External Processing

Internal Processing Labor requirements Capacity requirements

Materials Documents, PS Texts Milestones

W

Documents Materials

Internal

PS Texts Milestones


Activities

Activity No

Control Key

AssignmentWork Related

Execution factor

Execution Constraints

assignments

External Activity


Activity to which the milestone is

assignedParameter for

Progress Analysis

Parameter forplanned date in

relation to activity

Manualplanned date

Unique Milestonenumber

Milestone Data


Network Settings

Network

Network Types

Network Profile

Parameters for Network Types

Settlement ProfileStatus ProfileNumber rangePlanning ElementClassification Control

Planner GroupProcurement IndicatorField KeyGraphic ProfilesActivity Parameters

External ActivityInternal ActivityCost ActivityService Activity

Settlement strategyRelease StrategyPlan Cost VariantActual Cost VariantAssignment typePS-PP integrationChange Document control

Valid ReceiversAllocation StructureSource StructurePA transfer Structure% of settlementNo of Distribution rules Allowed

Status numberAuthorization KeyBusiness Transaction control

Stock PriorityPR for Network along with Resv.Item Category

Change Profile Activity Change controlActivity Element Change ControlComponent Change controlPRT change Control

Costing TypesCosting VariantCost Component StructureCosting Variants to Network TypesMessage Types

Network Assignment


WBS & Network comparison

WBS1

WBS1.1 WBS1.2

WBS1.1.1 WBS1.1.2 WBS1.2.1 WBS1.2.2

10

30

20

40 Network

WBS Cost Control and Reporting Reflects Ownership Hierarchical Structuring

NETWORK Work Control Reflects Execution Process Spread across Different WBS elements


Activities Assignment to WBS Elements

WBS1

WBS1.1 WBS1.2

WBS1.1.1 WBS1.1.2 WBS1.2.1 WBS1.2.2

10

30

20

40 Network

Planning dates Planning Costs Settlement rules Milestones Billing Plans


Network Creation Methods

Project Builder

Network Structure Graphic

= Operative Structure= Standard Structure

2Manual

1

Copy

3

Incorporate

4

Copy Project Incl. Activities 5


Network Creation

Click & HoldDrop here

Result


Click & Hold

Drop here

Result

Activity Creation


Activity Element Creation

Click & HoldDrop here

Result


Demo & Exercises



Standard StructuresBe defining standard projects and networks you can standardize project management referring back to data that has been derived from existing projects. Standardization is one method of ensuring in the initial phase that projects are structured efficiently and economically. A further advantage of standardizing project structures is that it makes the processing of projects more transparent, enables the comparison of projects and subsequently facilitates project controlling.

In the Project System there are several different standard structures that you can use as templates to create operative structures.

Standard project definitions Standard networks Standard work breakdown structures Standard milestones


Standard Structures (Cont..) Standard project definitionsNeutral project definition, which can be used to create operative project definitions or

standard project definitions as templates. Project definitions are the frameworks of projects and contains basic Organizational data i. e.

Controlling Area Business area Company code Plant Factory calendar

Standard networksProject-neutral network structure, which can be used as a template when creating other

standard networks or operative networks. Creating operative networks by using standard networks will save the time and increase the consistency of business process.

You can link standard networks with standard work breakdown structures in order to create project templates, which contain both the project structure and the activities assigned to the structure.


From Standard Networks

While creating operative network using standard network, if the standard Network is linked to standard

WBS, system will create operative WBS as well.

1

From Sale order

2

Creating operative network from Sales Order using standard Network, system will create operative Network with activities as standard Network and materials from

sales order.

From milestone

3

Creating operative Milestone from standard milestone system will create

operative network from Standard Network which is attached to standard

Milestone.

= Operative Structure= Standard Structure= Direct Assignment

= indirect Assignment

Standard Structures (Cont..)


Standard work breakdown structuresNeutral work breakdown structure that can be used more than once and serves as a

template for creating operative work breakdown structures

From Standard WBS

While creating operative WBS from standard WBS, if WBS is linked with standard network,

system will not create operative network

2WBS From Standard Networks

While creating operative network using standard network, if the standard Network is linked to standard

WBS, system will create operative WBS as well.

1

Standard milestonesStandard milestones are used for creating milestones and other standard milestones. You

can combine different standard Milestones in a milestone group.

From milestone 3

Standard Structures (Cont..)


The Project Builder is a user-friendly method of accessing the Project System, which enables you to edit your projects quickly and efficiently.

It gives the option of Context sensitive menus, Drag & Drop, and the capability to define your own worklist and templates pool.

Use:

Create, change or display all project structure data in one transaction Graphic views (hierarchy and network graphic) Project planning board with all its overviews (capacity, costs, component, and

maintenance order overviews) Can define a user-specific worklist and a user-specific templates pool Can make user-specific changes to the settings

Project Builder


Project BuilderStructure

Tree

Worklist and Templates

Work Area

Selected Project & Project Tree

Worklists & templates

Proj. Definition and Structure

Work Area


Worklists and Templates


Planning BoardEntry Area

Worklist Preview Of last Project

Gantt Chart

Over view buttons

WBS structureTemplates & individual

objects


Hierarchy Graphic

Gantt Chart

Network Graphic

Business Graphic

Graphics of Planning Board


Structure PlanningStructure planning will be used if you have a more precise idea of the structure of the project. Using structure planning you can enter WBS elements and Activities together. Structure planning is having two views i.e.

WBS elements Network activities

Use: Create Projects and activities Maintain already created projects Analysis Capacity leveling Cost overviews as for activities


Structure Planning (Cont..)

WBS element View

Network View


Demo & Exercises


Menu path: Logistics Project System Project CJ27 – Project Planning Board Transaction: CJ27, CJ2B and CJ2C

Menu path: Logistics Project System Project Special Maintenance Functions CJ2D Structure Planning Transaction: CJ2D, CJ20 and CJ2A


Lesson Summary Project Header WBS structure Networks Sub networks Activities Activity Elements Standard structures Standard Networks Standard milestones Project builder Project Planning Board Network Graphic Project coding mask Project profiles


Reference links

1.1. http://help.sap.com/saphelp_46c/helpdata/en/http://help.sap.com/saphelp_46c/helpdata/en/04/926eae46f311d189470000e829fbbd/frameset.htm04/926eae46f311d189470000e829fbbd/frameset.htm

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