Project Manufacturing in SAP SAP Standard vs Noveco

The following example describes Project with Valuated Stock

BOMandProjectStructuresCostPlanningandForecasting

BOM and Project StructuresProject Structure

M-1100 ELECTRICAL ASSEMBLY

MR-3200 ELEVATOR

EM-3000 Electrical Motor Kit

M-1200 MECHANICAL ASSEMBLY

BOM Structure

Materials

Materials purchased directly

BOM Assembly

Stock Materials

ENGINEERING & DESIGN

ASSEMBLY

ELEVATOR MANUFACTURING (ETO)

Mechanical Engineering

Electrical Engineering

Electrical Assembly

Mechanical Assembly

ASSEMBLY - ELECTRICAL

ASSEMBLY - MECHANICAL

Labour

Materials

Labour

M-1202 Speed Restrictor

Materials

Labour

Materials

Labour

Materials

Labour

Labour and Machine timeFinal Assembly

FINAL ASSEMBLY

BOM and Project StructuresProject Structure

ENGINEERING & DESIGN

ASSEMBLY

ELEVATOR MANUFACTURING (ETO)

Mechanical Engineering

Electrical Engineering

Electrical Assembly

Mechanical Assembly

ASSEMBLY - ELECTRICAL

ASSEMBLY - MECHANICAL

Final Assembly

FINAL ASSEMBLY

In this demo scenario it is required to control costs and progress on the highlighted project elements:• all engineering processes to be controlled on

Network Activities• all manufacturing processes to be controlled on

WBS elements• each major sub-assembly is controlled

individually• the final assembly is controlled separately

from manufacturing of sub-assemblies

BOM and Project StructuresBOM Structure (broken up)

M-1100 ELECTRICAL ASSEMBLY

EM-3000 Electrical Motor Kit

Materials

Labour

Materials

Labour

M-1200 MECHANICAL ASSEMBLY

M-1202 Speed Restrictor

Materials

Labour

Materials

Labour

MR-3200 ELEVATOR (final assembly)

Materials

Labour

Break up BOM into

three separate

BOMs

M-1100 ELECTRICAL ASSEMBLY

MR-3200 ELEVATOR

EM-3000 Electrical Motor Kit

M-1200 MECHANICAL ASSEMBLY

BOM Structure

Materials

Labour

Materials

Labour

M-1202 Speed Restrictor

Materials

Labour

Materials

Labour

Materials

Labour

BOM and Project StructuresBOM Structure (broken up)

M-1100 ELECTRICAL ASSEMBLY

EM-3000 Electrical Motor Kit

Materials

Labour

Materials

Labour

M-1200 MECHANICAL ASSEMBLY

M-1202 Speed Restrictor

Materials

Labour

Materials

Labour

MR-3200 ELEVATOR (final assembly)

Materials

Labour

BOM and Project StructuresProject Structure

ENGINEERING & DESIGN

ASSEMBLY

ELEVATOR MANUFACTURING (ETO)

Mechanical Engineering

Electrical Engineering

Electrical Assembly

Mechanical Assembly

ASSEMBLY - ELECTRICAL

ASSEMBLY - MECHANICAL

Final Assembly

FINAL ASSEMBLY

BOM Structure

M-1100 ELECTRICAL ASSEMBLY

EM-3000 Electrical Motor Kit

Materials

Labour

Materials

Labour

M-1200 MECHANICAL ASSEMBLY

M-1200 Speed Restrictor

Materials

Labour

Materials

Labour

MR-3200 ELEVATOR

Materials

Labour

M-1100 Electrical Assembly

M-1200 Mechanical Assembly

MR-3200 Elevator Model

Assign top BOM assemblies to

project Network Activities

BOMs assigned to Network Activities

BOMandProjectStructuresCostPlanningandForecasting

SAPStandardsolutionNoveco solution

Cost Plan using SAP standard Network Planning

Price for material M-1100 is taken from material master: 46.950,0 x 3 = 140.850,0

Cost Plan is created on one Cost Element: 890000

Product Costing Information on M-1100 not used by Network Planning

SAP Cost Report: Plan Version 000

SAP report: S_ALR_87013543

Sub-Assembly EM-3000Production Order 60003171 was created for sub-assembly EM-3000

M-1100 ELECTRICAL ASSEMBLY

EM-3000 Electrical Motor Kit

Materials

Labour

Materials

Labour

SAP Cost Report: Plan Version 000

SAP report: S_ALR_87013543

M-1100 ELECTRICAL ASSEMBLY

EM-3000 Electrical Motor Kit

Materials

Labour

Materials

Labour

Post Actual Costs for PP orderProduction Order 60003171 • Release• Post actual costs ( setup, labour, machine, stock

materials etc.)

M-1100 ELECTRICAL ASSEMBLY

EM-3000 Electrical Motor Kit

Materials

Labour

Materials

Labour

SAP Cost Report: Plan Version 000

• Plan Costs created on NWA on cost element 890000

• Actual Costs posted on cost elements representing real expenses: setup, labour, machine, stock materials etc.

• It is impossible to track multi-level production costs and compare Plan vs Actuals on the expense cost elements

• It is impossible to adjust plan cost (Cost Forecast) during manufacturing

Conclusion:

M-1100 ELECTRICAL ASSEMBLY

EM-3000 Electrical Motor Kit

Materials

Labour

Materials

Labour

BOMandProjectStructuresCostPlanningandForecasting

SAPStandardsolutionNoveco solution

Noveco Estimate

IntheEstimateyouassignBOMassembliesascostitems.

BOMassembliesareexplodedandtheir

latestproductcostinginformationisread

Product Costing uses manufacturing BOM to calculate production costs.

Noveco creates Project Cost Estimate from costing information generated by Product Costing.

Noveco Estimate and SAP Product Costing

Noveco Estimate SAP Product Costing

Noveco Estimate and SAP Product Costing

Noveco Estimate SAP Product Costing

inNoveco Estimatethesub-assemblyEM-3000 isrepresentedbyitscostitemsrequiredtobuildthissub-assemblyandnotasaoneline(asitisdisplayedin

ProductCostingscreen)

Noveco Estimate and SAP Product Costing

Noveco Estimate SAP Product Costing

Thesub-assembly’sEM-3000 costitemscopiedintoEstimatefromProduct

Costing.

Transfer Estimate to Project

OnceProjectisassignedtotheEstimateVersion,youcantransfercostsfromtheEstimatetothe

ProjectWBSandNetworkactivities

Cost Transfer: Estimate to Project

DragandDropBOMassemblyfromtheEstimatetotheProjectWBS

Cost Transfer: Estimate to Project

Nowyoucansaveprojectcostplaninaversion.WeenteredversionN01,whichissetinoursystemasEasy

CostPlanVersion

AllCoststransferredtoProject.Nowyoucansaveprojectcostplanin

aversion.

Cost Transfer: Estimate to Project

WeenteredversionN01,whichissetinoursystemasEasyCostPlan

Version

Project Cost Plan: Easy Cost Planning

Project Cost Plan: Easy Cost Planning

SAP Report: S_ALR_87013543

PlanCostsisbrokenbyCostElementsthatwillbe

usedtocollectmanufacturingcosts

SAP Report: S_ALR_87013543

Noveco Project Manager Workbench

M-1100 ELECTRICAL ASSEMBLY

EM-3000 Electrical Motor Kit

Materials

Labour

Materials

Labour

Noveco Project Manager Workbench

• Plan Costs on WBS created on the “real” cost elements sourced from multi-level BOM explosion and Product Costing• Actual Costs posted on the same cost elements as planned on WBS• You can adjust cost and work to complete for the manufacturing of assemblies at any time during manufacturing

Resume:

• Cost To Complete (CTC) is recalculated automatically

• Adjust CTC manually if needed• EAC is recalculated from new CTC

Cost Planning and Forecasting: SAP vs Noveco

SAP Standard

Noveco

For more information visit Noveco Systems on www.novecosystems.com