Project Management Solutions for Engineering and Construction projects in SAP PS enhanced by Noveco epm

Transcription

1 Project Management Solutions for Engineering and Construction projects in SAP PS enhanced by Noveco epm

2 Key Requirements l Build accurate cost estimate l Provide clear visibility of project costs, revenues, margins and cash position l Accurate forecasting of Cost, Revenues and Margin l Measurement and Reporting of Project Progress l Management of project variations, customer escalations, and their seamless integration with project cost forecasting, budgeting and revenue planning l Procurement planning & execution l Integration of subcontractors into project execution, monitoring of work performed and the incorporation of this work into progress reporting. l Accurate customer billing

3 SAP centric requirements Construction project Original Estimate Current Budget Contract Value Actual Costs Costs To Complete Estimate At Completion Engineering & Design Drafting Structural Engineering Construction Package Sub-contracted services Materials Construction worker l SAP system to be the central place for integrated project management l SAP Projects to update and manage key financial and progress attributes l Manage project procurement of materials, sub-contracted services and labour directly in SAP l SAP to be the single source to report project key financial values

4 Why Noveco? Why do you need Noveco epm for project Management in SAP? SAP Project Systems (PS) functional gaps: l Estimation or Cost Planning is cumbersome and contradictory. Most SAP PS customers use: Controlling type transactions (e.g. CJR2, CJ40) to plan cost on WBS Network Planning, inherited in PS from PP (production planning) on network activities l Cost forecasting or financial re-planning is not functional l No project variation management solution l No single central place to manage your project (you must run dozen of transactions to monitor and report) l No comprehensive project reports out of the box

5 Why Noveco epm 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) Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring

6 Business Challenges Time Sheets (CATS) Human Resources (HR) Sales and customer billing (SD) Accounting (FI) and Controlling (CO) SAP PS + Noveco epm Plant Maintenance, Customer Service (PM/CS) Materials Management and Procurement (MM) Production Planning (PP) Capacity and Resource Planning 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.

7 Integrated Project Management in SAP * Project Reporting Profit Take (Result Analysis) Dashboard reporting * Noveco Applications Portfolio Planning Reporting and Analysis Monitoring Forecasting Progress Tracking * Project Manager Workbench Planning and Execution Project Builder Cost & Revenue Planning Project Dates Scheduling Procurement, Time Sheets Invoicing, Billing * Project Variation Management

8 Project Management Lifecycle Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring Create Project Stricture Cost and Revenue Planning Dates Scheduling Budget approval Cost Distribution

9 Integrated Project Management in SAP * Project Reporting Profit Take (Result Analysis) Dashboard reporting * Noveco Applications Portfolio Planning Reporting and Analysis Monitoring Forecasting Progress Tracking * Project Manager Workbench Create Projects Planning and Execution Project Builder Cost & Revenue Planning Project Dates Scheduling Procurement, Time Sheets Invoicing, Billing * Project Variation Management

10 Project Structures: WBS hierarchy only (no networks) Option 1: WBS (no networks) WBS represent project organizational structure: Phases Types Project Activity Example: Design, Land Acquisition, Construction packages, Testing and Commissioning Construction Project Construction Building A1 Equipment Installation WBS used for: Grouping project activities for planning and reporting Form (sub)packages within structure Cost planning (see next slides) Budget allocation Dates Scheduling Cost Collection (e.g. labour, materials, equipment, services) Cost Forecasting Reporting

11 Cost Plan on WBS elements Capital Project Construction In this scenario WBS elements are used for Cost Planning Cost Forecasting Dates scheduling Cost collection (engineering, project management etc.) Sub-Station Labour Materials Subcontract Plant Overheads Manual Cost Planning on WBS elements: Labour rates (different types) Materials Sub-Contracted Services Plants & Equipment Overheads For manual cost planning we recommend using Easy Cost Planning on WBS elements

12 Project: WBS elements only (option 1) Create project structure in SAP PS using Project Builder WBS structure (example) can be multi-level and represent your specific coding rules WBS represents packages and sub-packages of your construction project

13 Project Structures: WBS and Network Activities Option 2: WBS & Networks WBS represent project organizational structure: Phases Types Project Activity Construction Project Construction WBS used for: Grouping project activities for reporting Cost planning (see next slides) Budget allocation Building A1 Network Activities Represent Project tasks Example: engineering drawings, earth moving, equipment installation etc. Networks used for: Detailed Cost Planning Dates scheduling Cost Collection (e.g. labour, materials, equipment, services) Resource planning Cost Forecasting

14 Project: WBS elements and Network Activities (option 2) WBS structure represents project organizational structure and its phases Network activities represent project tasks, linked with relationships

15 Project Management Lifecycle Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring Create Project Stricture Cost and Revenue Planning Dates Scheduling Budget approval Cost Distribution

16 Integrated Project Management in SAP * Project Reporting Profit Take (Result Analysis) Dashboard reporting * Noveco Applications Portfolio Planning Reporting and Analysis Monitoring Forecasting Progress Tracking * Project Manager Workbench Cost Planning Planning and Execution Project Builder Cost & Revenue Planning Project Dates Scheduling Procurement, Time Sheets Invoicing, Billing * Project Variation Management

17 Project Builder (SAP standard transaction CJ20N) Easy Cost Planning Here is an example on how Project Cost plan can be formed by using Easy Cost Planning functionality (SAP Standard) Easy Cost Plan can be automatically generated from external estimating system

18 Project Builder (SAP standard transaction CJ20N) Select Costing Version Cost Estimation is saved in costing versions Multiple Costing versions can be created. In this example version N01 is used to keep the Original Budget

19 Easy Cost Planning in details Easy Cost Planning allows you to plan multiple resources on one WBS ( or Network Activity): Internal labour types external services Material plant etc.

20 Easy Cost Planning using Planning Forms You can use pre-defined planning forms to estimate costs using input parameters Costing lines (below) are generated automatically

21 Easy Cost Planning using Services as BOQ Plan sub-contracted package on WBS element using services These lines (bill of quantities) will be included in purchase order

22 Plan Revenue using Sales and Project Integration Sales Order Construction project Engineering & Design Drafting Structural Engineering Construction Construction worker Materials / Equipment Sub-contracted services In this example revenue plan created from Sales Order billing plan The billing plan can be created from project milestones

23 Cost and Revenue Planning options l In our example we planned costs using Easy Cost Planning and Planned Revenue using Sales Order Project System integration l You can Plan Costs in PS using other functions: Network planning (if you use networks) Cost Element Planning (CJ42, CJR2) Revenue Planning (CJ40) New planning functions based on WebDynpro available in enhp6

24 Integrated Project Management in SAP * Project Reporting Profit Take (Result Analysis) Dashboard reporting * Noveco Applications Portfolio Planning Reporting and Analysis Monitoring Forecasting Progress Tracking * Project Manager Workbench Scheduling Planning and Execution Project Builder Cost & Revenue Planning Project Dates Scheduling Procurement, Time Sheets Invoicing, Billing * Project Variation Management

25 Schedule Project Dates using PS Planning Board or MSP OpenPS for Microsoft Project (SAP standard interface between PS and MSP) New Gantt Chart is available as of ECC 6.0 enhp6 Use SAP Project Planning Board to schedule project dates Detailed schedule can also be created in MS Project and synchronized with SAP PS using standard (free) interface OPENPS4MSP

26 Integrated Project Management in SAP * Project Reporting Profit Take (Result Analysis) Dashboard reporting * Noveco Applications Portfolio Planning Reporting and Analysis Monitoring Forecasting Cost Progress Distribution Tracking * Project Manager Workbench Planning and Execution Project Builder Cost & Revenue Planning Project Dates Scheduling Procurement, Time Sheets Invoicing, Billing * Project Variation Management

27 Project Manager Workbench: KPI view Current Budget = Estimate + Variations + Adjustments + Contingency Cost and Revenue Plan by period

28 Project Manager Workbench: KPI view Estimated At Completion = Actual Costs + Commitments + Cost To Complete

29 Project Manager Workbench: KPI view Plan Revenue = Original Revenue + Revenue Variations Current Profit = Plan Revenue Estimated At Completion

30 Project Manager Workbench: KPI view Cost information is broken by WBS, Value Category and Resource Types

31 Project Manager Workbench: KPI view You can choose to view costs aggregated and grouped by Value Category and Resource Types for selected WBS element Noveco Project Manager Workbench can turn off cost elements from the view. This feature enables cost element free forecasting, which can be important for companies that created too many cost elements for the same type of work. Noveco will make sure that all lines from different cost elements that belong to the same Value Category and Resource are presented as one line with summarized costing information

32 Project Manager Workbench: Value Category view Cost grouped by Value Categories and Resources and broken down by period

33 Project Manager Workbench: Value Category by Period

34 Project Manager Workbench: Plan by Period Distribute LABOUR cost

35 Project Manager Workbench: Plan by Period Distribute MATERIAL cost Noveco manual distribution function allows you distribute different type of cost independently from each other

36 Project Manager Workbench: Plan by Period Distribute SUBCONTRACT cost In this WBS you expect Purchase Order to be raised

37 Integrated Project Management in SAP * Project Reporting Profit Take (Result Analysis) Dashboard reporting * Noveco Applications Portfolio Planning Reporting and Analysis Monitoring Forecasting Progress Tracking * Project Manager Workbench Post Actual Costs and Purchasing Commitments Planning and Execution Project Builder Cost & Revenue Planning Project Dates Scheduling Procurement, Time Sheets Invoicing, Billing * Project Variation Management

38 Project Management Lifecycle Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring Procurement Time Sheets Forecast update and KPI Monitoring Progress assessment Variations and issues

39 Project Actual Costs flow Project Time sheets Construction Building A1 Expenses & other costs Sub- Contracted Services Equipment & Materials Direct Material Consumption from stock

40 Integrated Project Management in SAP * Project Reporting Profit Take (Result Analysis) Dashboard reporting * Noveco Applications Portfolio Planning Reporting and Analysis Monitoring Recalculate Forecasting Progress Forecasts Tracking * Project Manager Workbench Planning and Execution Project Builder Cost & Revenue Planning Project Dates Scheduling Procurement, Time Sheets Invoicing, Billing * Project Variation Management

41 Project Management Lifecycle Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring Procurement Time Sheets Forecast update and KPI Monitoring Progress assessment Variations and issues

42 Project Manager Workbench: Auto-Recalculate Forecast We posted Actual Costs and raised Purchasing Commitments System automatically reduced remaining Costs To Complete Estimated Cost At Completion did not change = Actuals + Commitments + CTC

43 Project Manager Workbench: Recalculate Forecast automatically Review costing details Review Purchase Order

44 Project Manager Workbench: Recalculate Forecast automatically Actual Cost of Labour posted in February, Cost To Complete reduced accordingly

45 Project Manager Workbench: automatic Commitment distribution Purchase Order Commitments reduced Cost To Complete (in this scenario to zero ) Commitments were automatically distributed using the same pattern as previously distributed Cost To Complete You can change it if you like

46 Project Manager Workbench: Purchasing Commitments View PO commitment value per WBS View Purchase Order List You can drill down to PO from that screen

47 Project Manager Workbench: Purchasing Commitments Switch to Change mode Change Cost and Work To Complete or Estimated At Completion System recalculates Estimated Cost At Completion (EAC) and Budget Deficit

48 Project Manager Workbench: Purchasing Commitments Budget Deficit = Current Budget Estimated at Completion Exceptions highlight WBS elements where Budget differs from EAC You can define tolerance limits for green and red icons

49 Project Manager Workbench: Review KPIs Since EAC has changed, the Current Profit has changed as well

50 Project Manager Workbench: S-Curves

51 Project Management Lifecycle Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring Procurement Time Sheets Forecast update and KPI Monitoring Progress assessment Variations and issues

52 Review Project Progress You can review Plan and Actual POC as well Earned Values (BCWS and BCWP)

53 Project Actual Progress You can change Actual Progress System will keep Calculated and Actual Progress separately

54 Integrated Project Management in SAP * Project Reporting Profit Take (Result Analysis) Dashboard reporting * Noveco Applications Portfolio Planning Reporting and Analysis Monitoring Forecasting Progress Tracking * Project Manager Workbench Create Project Variation Planning and Execution Project Builder Cost & Revenue Planning Project Dates Scheduling Procurement, Time Sheets Invoicing, Billing * Project Variation Management

55 Project Management Lifecycle Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring Procurement Time Sheets Forecast update and KPI Monitoring Progress assessment Variations and issues

56 Project Variation Variation affect on project Revenue item Costing items

57 Project Review: KPIs including Variation Current Budget = Original Estimate + Cost Variations Plan Revenue = Original Revenue + Revenue Variations

58 Project Variation in details Variation List Variation history

59 Integrated Project Management in SAP * Project Reporting Profit Take (Result Analysis) Dashboard reporting * Noveco Applications Portfolio Planning Reporting and Analysis Project Reporting Monitoring Forecasting Progress Tracking * Project Manager Workbench Planning and Execution Project Builder Cost & Revenue Planning Project Dates Scheduling Procurement, Time Sheets Invoicing, Billing * Project Variation Management

60 Project Management Lifecycle Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring Project Reporting Portfolio and Program Reporting Analysis Long Term planning and forecasting

61 Classic SAP Hierarchy Report All Financial and Progress data is saved in SAP ECC No interfaces and no custom tables are used by Noveco

62 Project Manager Portal

63 Project Manager Portal

64 Project Manager Portal Project Financial history is recorded You review project Budget, Forecast, Profit in each month since proejct was approved

65 Project Manager Portal All this information can be extracted to BI/BW for further reporting SAP standard extractors will be used (no programming is required)

66 Project Manager Portal Multiple projects can be reported via Portal Project Manager can select projects that he is responsible for and monitor their progress

67 Noveco System Architecture No middleware (BI, BO etc.) No interfaces No custom tables Always real-time Rich functionality Automatic forecasting Simple and intuitive interface Minimum training Quick implementation

68 System Landscape including Noveco Strategic Planning Program Portfolio Planning Company Strategy Planning Analysis, Resourcing Reports Result Analysis PS Information System Resource Planning Business Intelligence Monitoring, Forecasting, Variations, Progress Noveco 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 Execution Estimation Budget values Time Sheets, Invoices Actual Costs Sales Orders Revenue Transactional System Purchase Orders, Commitments Variations

69 epm Project Cost Forecasting, Progress and Variation Management 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.

70 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

71 SAP Customers running Noveco epm Rawson Group rawsonhomes.net.au Industry: Residential construction Powercor/CityPower powercor.com.au Industry: Utility, Construction Sedgman TRILITY sedgman.com Industry: Mining Construction trility.com.au Industry: Utility, Construction Hydro Tasmania Industry: Utility, Construction

72 Integrated Project Management MM HR PM PS FI Costs Forecasting Progress Analysis Variation Management Project Manager Workbench SD CO Integrated Project Management in SAP

73 For more information visit Noveco Systems on