Project Manufacturing in SAP managed by Noveco solutions
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1 Project Manufacturing in SAP managed by Noveco solutions
2 Project Management Lifecycle Run by Noveco Run by SAP or other software Project Initiation Engineering / Bill Of / Product Costing Estimating: Costs and Revenues Project Structure & Planning Start/Finish Dates Scheduling Plan Cost Distribution Efficient Project Management Execution MRP run Production Order confirmation Purchase Orders / Contracts Time Sheets Invoicing & Billing Variations Final Settlement Project Close Project Close Out Monitoring & Forecasting KPIs Review Cost / Margin Forecast Resource Planning Progress Analysis and Procurement forecast Settlement Result Analysis/Profit Take Period Close Period Closing Reporting Operational Dash Board Programs/Portfolio Analytical
3 Integrated Project Management in SAP * Project Portal / Reporting Profit Take (Result Analysis) * Noveco Applications Dashboard reporting Portfolio Planning Reporting Analysis Monitoring Forecasting Progress Tracking * Project Manager Workbench Planning Execution Variations * Estimate: Cost & Revenue Create Project Schedule Dates Procurement, Time Sheets Invoicing, Billing * Project Variations
4 SAP Project System with Noveco SAP standard Project System Create and maintain Project structure: WBS and Networks Plan Cost and Revenue Schedule Dates Assign Purchase Orders to Project Assign Maintenance and Production orders to Project Assign Sales Orders to Project Collect Actual Cost and Revenue Settle Costs Run Result Analysis Reporting Noveco Estimation: Revenue and Costs Create Cost and Revenue Plan from Estimate Distribute (time phase) Cost, Commitments and Revenue Forecast remaining costs to complete and calculate Estimate at completion Progress Analysis Project Risk Management PO Accruals Management Variation Management Forecast History Reporting
5 BOM and Project Structures Cost Estimates Project Cost Planning Production Execution Project Cost Forecasting Reporting
6 Project Management Lifecycle Run by Noveco Run by SAP or other software Project Initiation Engineering / Bill Of / Product Costing Estimating: Costs and Revenues Project Structure & Planning Start/Finish Dates Scheduling Plan Cost Distribution Efficient Project Management Execution MRP run Production Order confirmation Purchase Orders / Contracts Time Sheets Invoicing & Billing Variations Final Settlement Project Close Project Close Out Monitoring & Forecasting KPIs Review Cost / Margin Forecast Resource Planning Progress Analysis and Procurement forecast Settlement Result Analysis/Profit Take Period Close Period Closing Reporting Operational Dash Board Programs/Portfolio Analytical
7 BOM and Project Structures BOM Structure MR-3200 ELEVATOR M-1100 ELECTRICAL ASSEMBLY EM-3000 Electrical Motor Kit Project Structure ELEVATOR MANUFACTURING (ETO) ENGINEERING & DESIGN Electrical Engineering Mechanical Engineering M-1200 MECHANICAL ASSEMBLY ASSEMBLY M-1202 Speed Restrictor ASSEMBLY - ELECTRICAL Electrical Assembly ASSEMBLY - MECHANICAL Mechanical Assembly BOM Assembly purchased directly Stock and Machine time FINAL ASSEMBLY Final Assembly
8 BOM and Project Structures Project Structure In this presentation (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 ELEVATOR MANUFACTURING (ETO) ENGINEERING & DESIGN Electrical Engineering Mechanical Engineering ASSEMBLY ASSEMBLY - ELECTRICAL Electrical Assembly ASSEMBLY - MECHANICAL Mechanical Assembly FINAL ASSEMBLY Final Assembly
9 BOM and Project Structures BOM Structure MR-3200 ELEVATOR M-1100 ELECTRICAL ASSEMBLY EM-3000 Electrical Motor Kit M-1200 MECHANICAL ASSEMBLY Break up BOM into three separate BOMs BOM Structure (broken up) M-1100 ELECTRICAL ASSEMBLY EM-3000 Electrical Motor Kit M-1200 MECHANICAL ASSEMBLY M-1202 Speed Restrictor M-1202 Speed Restrictor MR-3200 ELEVATOR (final assembly)
10 BOM and Project Structures BOM Structure (broken up) M-1100 ELECTRICAL ASSEMBLY EM-3000 Electrical Motor Kit M-1200 MECHANICAL ASSEMBLY M-1202 Speed Restrictor MR-3200 ELEVATOR (final assembly)
11 BOM and Project Structures BOM Structure Project Structure M-1100 ELECTRICAL ASSEMBLY EM-3000 Electrical Motor Kit Assign top BOM assemblies to project Network Activities ELEVATOR MANUFACTURING (ETO) ENGINEERING & DESIGN Electrical Engineering Mechanical Engineering M-1200 MECHANICAL ASSEMBLY M-1200 Speed Restrictor ASSEMBLY MR-3200 ELEVATOR ASSEMBLY - ELECTRICAL Electrical Assembly M-1100 Electrical Assembly ASSEMBLY - MECHANICAL Mechanical Assembly M-1200 Mechanical Assembly FINAL ASSEMBLY Final Assembly MR-3200 Elevator Model
12 BOMs assigned to Network Activities
13 BOM and Project Structures Cost Estimates SAP Product Costing per BOM Noveco Estimating Module Project Cost Planning Production Execution Project Cost Forecasting Reporting
14 t/c CK11N : Product Costing for each BOM assembly BOM Structure M-1100 ELECTRICAL ASSEMBLY EM-3000 Electrical Motor Kit M-1200 MECHANICAL ASSEMBLY M-1202 Speed Restrictor MR-3200 ELEVATOR
15 t/c CK11N : Product Costing for each BOM assembly BOM Structure M-1100 ELECTRICAL ASSEMBLY EM-3000 Electrical Motor Kit M-1200 MECHANICAL ASSEMBLY M-1202 Speed Restrictor MR-3200 ELEVATOR
16 t/c CK11N : Product Costing for each BOM assembly BOM Structure M-1100 ELECTRICAL ASSEMBLY EM-3000 Electrical Motor Kit M-1200 MECHANICAL ASSEMBLY M-1202 Speed Restrictor MR-3200 ELEVATOR
17 BOM and Project Structures Cost Estimates SAP Product Costing per BOM Noveco Estimating Module Detailed Engineering and Cost Planning Production Execution Project Cost Forecasting Reporting
18 Integrated Project Management in SAP * Project Portal / Reporting Profit Take (Result Analysis) * Noveco Applications Dashboard reporting Portfolio Planning Reporting Analysis Monitoring Forecasting Progress Tracking * Project Manager Workbench Planning Execution Variations * Estimate: Cost & Revenue Create Project Schedule Dates Procurement, Time Sheets Invoicing, Billing * Project Variations
19 Noveco Estimate BOM assemblies are exploded and their latest product costing information is read In the Estimate you assign BOM assemblies as cost items.
20 Product Costing uses manufacturing BOM to calculate production costs. Noveco creates Project Cost Estimate from costing information generated by Product Costing.
21 Noveco Estimate and SAP Product Costing Noveco Estimate SAP Product Costing
22 Noveco Estimate and SAP Product Costing Noveco Estimate SAP Product Costing in Noveco Estimate the sub-assembly EM-3000 is represented by its cost items required to build this sub-assembly and not as a one line (as it is displayed in Product Costing screen)
23 Noveco Estimate and SAP Product Costing Noveco Estimate SAP Product Costing The sub-assembly s EM-3000 cost items copied into Estimate from Product Costing.
24 Noveco Estimate In Noveco Estimate all sub-assemblies are represented by their cost items. As a result, the estimate contains only direct cost items to be posted as actual costs to Production Orders: - purchased directly - Stock ( plant stock or project stock ) - Hours - Machine Hours The cost of sub-assemblies themselves (to be consumed between PP orders in multi-level production order manufacturing) is excluded from the estimate.
25 Noveco Estimate We require 3 PC of electrical assembly M-1100 to be manufactured In the Estimate you assign BOM assemblies as cost items.
26 Navigate the Estimate: BOM items
27 Navigate the Estimate: BOM items
28 Navigate the Estimate: BOM items
29 Navigate the Estimate: BOM items
30 Navigate the Estimate: BOM items
31 Estimate Engineering costs
32 BOM and Project Structures Cost Estimates SAP Product Costing per BOM Noveco Estimating Module Project Cost Planning Production Execution Project Cost Forecasting Reporting
33 Transfer Estimated costs to Project When Estimate Version is approved, it is assigned to a Project
34 Estimate vs. Project structure Estimate ELEVATOR Project ENGINEERING ENGINEEING cost item cost item cost item ELAVATORS ELECTRICAL cost item Engineering View: as-designed Project View: as-built
35 Transfer Estimate to Project ELEVATOR ENGINEERING ENGINEERING cost item cost item cost item Transfer Estimate To Project to generate Cost and Revenue plan ASSEMBLY ELECTRICAL cost item
36 Transfer Estimate to Project Once Project is assigned to the Estimate Version, you can transfer costs from the Estimate to the Project WBS and Network activities
37 Cost Transfer: Estimate to Project Estimate Structure Project Structure Select Cost items from the Estimate, drag and drop them on project WBS or Network Activities
38 Cost Transfer: Estimate to Project Drag and Drop BOM assembly from the Estimate to the Project WBS
39 Cost Transfer: Estimate to Project Now you can save project cost plan in a version. We entered version N01, All Costs transferred to Project. which is set in our system as Easy Now you can save project cost plan in Cost Plan Version a version.
40 Cost Transfer: Estimate to Project We entered version N01, which is set in our system as Easy Cost Plan Version
41 Project Cost Plan: Easy Cost Planning
42 Project Cost Plan: Easy Cost Planning
43 Project Cost Plan: Easy Cost Planning
44 Project Cost Plan: PS Report Plan Costs in version N01 Saved from Estimate appear in SAP standard report SAP Standard Cost Report: S_ALR_
45 SAP Report: S_ALR_ Plan Costs is broken by Cost Elements that will be used to collect manufacturing costs
46 Noveco Project Manager Workbench Original Estimate is read from version N01. The value of the Estimate was converted into project Forecast Cost: EAC and CTC
47 BOM and Project Structures Cost Estimates Project Cost Planning Production Execution MRP Run Order Confirmations / Material Consumption Project Cost Forecasting Reporting
48 Project Management Lifecycle Run by Noveco Run by SAP or other software Project Initiation Engineering / Bill Of / Product Costing Estimating: Costs and Revenues Project Structure & Planning Start/Finish Dates Scheduling Plan Cost Distribution Efficient Project Management Execution MRP run Production Order confirmation Purchase Orders / Contracts Time Sheets Invoicing & Billing Variations Final Settlement Project Close Project Close Out Monitoring & Forecasting KPIs Review Cost / Margin Forecast Resource Planning Progress Analysis and Procurement forecast Settlement Result Analysis/Profit Take Period Close Period Closing Reporting Operational Dash Board Programs/Portfolio Analytical
49 Project MRP Run (t/c MD51) Material Requirements are passed to MRP from Project MRP explodes BOMs and generated Planned Orders and Purchase Requisitions
50 Multi-Level Order Report (t/c MD4C) Production Orders, Purchase Requisitions were created
51 BOM and Project Structures Cost Estimates Project Cost Planning Production Execution MRP Run Order Confirmations / Material Consumption Project Cost Forecasting Reporting
52 Integrated Project Management in SAP * Project Portal / Reporting Profit Take (Result Analysis) * Noveco Applications Dashboard reporting Portfolio Planning Reporting Analysis Monitoring Forecasting Progress Tracking * Project Manager Workbench Planning Execution Variations * Estimate: Cost & Revenue Create Project Schedule Dates Procurement, Time Sheets Invoicing, Billing * Project Variations
53 Project Execution Actual Costs and Commitments Time Sheets for Engineering hours and Machine hours Confirmation Goods Issue of Stock to PP orders Good Receipts to Purchase Orders assigned to Production Orders
54 Actual Costs and Purchasing Commitments Actual Costs / PO Commitments
55 BOM and Project Structures Cost Estimates Project Cost Planning Production Execution Project Cost Forecasting Reporting
56 Integrated Project Management in SAP * Project Portal / Reporting Profit Take (Result Analysis) * Noveco Applications Dashboard reporting Portfolio Planning Reporting Analysis Monitoring Forecasting Progress Tracking * Project Manager Workbench Planning Execution Variations * Estimate: Cost & Revenue Create Project Schedule Dates Procurement, Time Sheets Invoicing, Billing * Project Variations
57 Project Manager Workbench Actual Costs and PO Commitments posted to Network Activities and PP Orders automatically reduce project forecast Cost To Complete
58 Project Manager Workbench Adjust Costs To Complete manually You can change Cost / Work To Complete on project network activities. System recalculates Estimated Costs Completion
59 Project Manager Workbench Note: Production Orders appear as a hierarchy You can view actual costs from PP orders assigned to your project WBS elements
60 Project Manager Workbench Since PP orders are represented as a hierarchy, you can analyze Actual Costs on higher level PP order from costs rolled up from lower levels in multi-level manufacturing
61 Project Manager Workbench You can also view cost breakdown by each PP order individually
62 Project Manager Workbench Adjust Costs To Complete manually Important: Actual costs from PP order and rolled up to WBS E even before they were posted to project stock and consumed by superior PP orders. This way you can forecast your costs and calculate progress any time during manufacturing Cost To Complete on WBS element is automatically reduced from actual costs posted to PP orders You can change Cost / Work To Complete on WBS based on the production progress. System recalculates Estimated Costs Completion on WBS
63 Project Manager Workbench we estimated higher cost for Labor Man Hours and for Electrical Our new project EAC is $ USD and our project is over the budget by $9.349 USD
64 Project Manager Workbench You can distribute (time phase) Budget Costs and Cost To Complete
65 Project Manager Workbench System Calculates Production Progress on the WBS
66 BOM and Project Structures Cost Estimates Project Cost Planning Production Execution Project Cost Forecasting Reporting
67 Integrated Project Management in SAP * Project Portal / Reporting Profit Take (Result Analysis) * Noveco Applications Dashboard reporting Portfolio Planning Reporting Analysis Monitoring Forecasting Progress Tracking * Project Manager Workbench Planning Execution Variations * Estimate: Cost & Revenue Create Project Schedule Dates Procurement, Time Sheets Invoicing, Billing * Project Variations
68 Reporting: Noveco Project Review report Now you can run project forecast reports right from SAP with the most accurate and upto-date information from manufacturing
69 Reporting: PS Info-system report
70 Summary With Noveco solutions you can now effectively control your ETO project manufacturing and engineering processes directly in SAP Project System The Original Project Cost Plan is always accurate, since it is based on Product Costing. The system automatically recalculates Cost and Work To Complete from actual costs posted to network activities and PP orders You can adjust project Forecast Costs at any time, if necessary The system calculates Project progress by taking production progress into account You can Drill Down into source documents Run operational reports directly from SAP PS
71 System Landscape including Noveco Strategic Planning Program Portfolio Planning Company Strategy Planning Analysis, Resourcing Reports Monitoring, Forecasting, Variations, Progress Execution Estimation Budget values Result Analysis Time Sheets, Invoices Actual Costs PS Information System Noveco Sales Orders Revenue Transactional System Resource Planning Project Manager Workbench Automatic Forecasting Manual adjustment of CTC or Work TC Progress Analysis Exception and drill down reporting Integrated variations into cost forecast Forecast history Purchase Orders, Commitments Variations S A P E C C / S 4
72 Noveco: Estimation, Forecasting, Progress and Variation Management Full scale Estimating solution in SAP PS. Create estimates before project is created / approved in SAP Project Manager Workbench provides one central place to review KPIs, update forecasts, track and update progress, execute analytical and drill down reports Complete Cost and Work To Complete management: Automatic reduction and Manual adjustment Instant Integration with ECC transactions: PO, time sheets, invoices etc. Forecasting results are immediately available for Result Analysis, Progress Analysis, PS Reports and BI (no custom interfaces needed to native SAP reports) Period Sensitive Forecasts: designed for month end forecasts in live transactional system Saves project forecast history w/o need to perform version copy by the user Project Costs Forecasts integrated with PM/CS and PP orders Integrates Project Variations into cost forecasting and budgeting No modifications to SAP standard core applications. No z-tables to keep forecasts costs, all data read/written from/to SAP standard database.
73 Business Value of Integrated Project Forecasting in SAP Connects upstream (estimating, procurement, timesheets) and downstream (monitoring, resource allocation, analytical reports) activities of project management lifecycle Closes the loop between execution and analysis processes providing 360 degree flow of information Replaces spreadsheets and other third party tools with centralized SAP database Reduces amount of effort required to produce project forecasts and analytical reports Reduces number of interdependent systems and interfaces needed; reduce costs of maintenance and support of systems other then SAP Decreases potential for errors of data entry and manipulation Improves quality, transparency and accuracy of data Allows potential savings and process efficiency by relieving Project Managers from performing routine transactional and administrative activities. Integrates Resource (personnel) Planning into project planning and forecasting Determine realistic project progress Unleashes the true power of integrated SAP system
74 Integrated Project Management in SAP PS with Noveco ECC / S4 HANA MM PP Estimation Project Manager Workbench HR PS PM Variation Management Reporting FI/CO SD Cost & Revenue Estimating Project Manager Workbench Cost, Revenue Forecasting Progress Analysis Variation Management Comprehensive Reporting
75 SAP Customers running Noveco epm Rawson Group rawsonhomes.net.au Industry: Residential construction Powercor/CityPower powercor.com.au Industry: Utility, Construction Sedgman sedgman.com Industry: Mining Construction
76 SAP Customers running Noveco epm TRILITY (Australia) trility.com.au Industry: Utility, Construction Hydro Tasmania (Australia) Industry: Utility, Construction SP AusNet (Australia) Industry: Utility, Construction
77 SAP Customers running Noveco epm Pentair (Netherlands/Germany/USA) pentair.com Industry: Manufacturing, Installation and Service Cofinimmo (Belgium) cofinimmo.com Industry: Real Estate, Construction Petrosea, Indika Group (Indonesia) petrosea.com Industry: EPC, Construction
78 New customers 2016/2017: FEV (Germany) fev.com Industry: Manufacturing Thyssen Krupp Elevators (Spain) thyssenkrupp.com Industry: Manufacturing, Service Lafarge Holcim (USA) lafargeholcim.com Industry: EPC, Construction
79 For more information visit Noveco Systems on
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