SAP standard PS: issues with project lifecycle management
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- Osborn O’Brien’
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1 Intrductin Prject System is the mst integrated mdule in SAP ECC. It is seamlessly and in real-time cnnected t almst every SAP mdule: Financial Accunting, Cst Cntrlling, Materials Management and Prcurement, Prductin Planning, Plant Maintenance, Sales and Billing, Time Sheets and thers. Hwever, many cmpanies are failing t establish PS as a single integrated platfrm fr management f prjects lifecycle and cntinue using excel spreadsheets fr mnthly prject frecasting. Mre advanced cmpanies integrate PS with external planning tls, thus creating cmplex and expensive system architecture that require data exchange interfaces, n-ging maintenance and supprt. SAP standard PS: issues with prject lifecycle management Nte. Cst Frecasting is different frm Cst Planning. Cst Planning r Cst Estimatin is usually perfrmed nce befre prject starts, estimated csts used as a basis t determine prject budget, revenue and prfitability at the very beginning f a prject. In ther wrds, Cst Estimatin creates prject baseline t cmpare against during prject executin. Cst Frecasting n the ther hand is an n-ging tasks perfrmed at a regular basis thrughut prject lifecycle with the purpse t define prject estimated csts at cmpletin (EAC), frecast prfits and csts t cmplete (CTC). Mre refined prcurement and resurce requirements are prduced by regular cst frecasts as prject prgresses. Since Cst Planning and Cst Frecasting are quite different disciplines they require different sftware tls in SAP system. Main reasns fr unsuccessful PS implementatins: Cmplex business prcess met with cmplexity f SAP Prject System. There are n clear rules r methdlgies prvided by SAP t help custmers t adpt PS fr their business. SAP standard Prject Frecasting functinality is limited and practically nt capable f managing mnthly frecasts (csts t cmplete and estimates at cmpletin). It is nt capable f prducing frecasts n WBS elements. SAP standard Prject Frecasting des nt integrate wrk rders (prductin rders, plant maintenance r custmer service rders) int recalculatin f prject remaining cst t cmplete. Cannt manage prject variatins in seamless integratin with budgeting, revenue and cst frecasts There is n centralized place in standard SAP PS (nt a reprt) where prject financial psitin can be assessed and managed in real-time. Earned Value and Prgress Analysis is cmplex and limited in functinality (e.g. wrk prprtinal methd can nly be used n internal netwrk activities and nt n WBS) N ut-f the bx reprts available Functinal limitatins f SAP standard slutins lead t the fllwing prblems: Prject System used as a cst cllectr, actual csts are extracted frm PS t be used in ther systems fr planning and reprting High use f excel spread sheets r use f third-party planning tls integrated with PS N infrmatin transparency and cnsistency, mnth end prcesses is time cnsuming and errr prne Prject Managers and Prject Cntrllers make decisins that are based n inaccurate r utdated data Lack f standardizatin f prject management methds (fr example, every prject manager runs their wn excel sheets) Resurce Planning and Results Analysis are nt integrated with prject frecasts SAP Prject System is nt cnnected with upstream and dwnstream prject management activities In summary, functinal gaps f standard PS prevent it t becme central platfrm fr prject lifecycle management, thus undermining benefits f integrated system such as SAP ECC.
2 Nvec extended Prject Management slutins Nvec epm is a family f seamlessly integrated sftware cmpnents designed t cmplement and enhance SAP's standard Prject System (PS) functinality. Nvec epm clses functinal gaps f standard SAP PS and prvides essential functinality and cnsistent methdlgy fr prject frecasting, variatin management, earned value, prgress analysis and reprting directly in SAP ECC. It des nt require BI, IP, BPC r any ther cmpnents. Nvec functinality at a glance: Mnthly cst frecasting f cst and wrk t cmplete (CTC) and estimated csts at cmpletin (EAC) with autmatic recalculatin and manual adjustment Prject variatins in cmplete integratin with prject revenue, frecasts and budget planning Prject Manager Wrkbench - a single screen with cmpsite view f prject KPIs, traffic light exceptins, graphical representatin, manual cst frecast entry with manual distributin, frecast histry review, variatins and drill dwn reprting Prject Earned Value and Prgress Analysis Prject Manager Prtal with build-in reprting, drill dwn capabilities and graphical presentatin f yur prject prtfli KPIs Prject Manager Wrkbench Simple and intuitive user interface allws yu t review prject Key Perfrmance Indicatrs: Current Budgets, Estimate at Cmpletin, Cst t Cmplete, Variatins, Actual Csts and Revenues, Prgress, Exceptins, Earned Value and etc. Autmatically recalculates Cst T Cmplete frm actual csts and purchasing cmmitments User can manually change frecasts after is was recalculated Built-in Variatins and Issues Register Earned Value and Prgress Analysis Cntingency Management in cmplete integratin with variatins, budgets and frecasts
3 Cntext Drill-dwn reprts: pint and click t get int underlying dcuments directly frm ERP Built-in reprts and analysis Autmatic Prject Frecast histry tracking Earned Value and Prgress Analysis is built int Prject Manager Wrkbench (abve). Prject frecast are managed in ne single frecast versin, which captures the entire frecast histry as well as future frecasts (n versin cpy is needed t create prject mnthly frecasts and histry snapshts). This significantly simplifies reprting bth in SAP PS and in BI and minimizes user effrts.
4 Prject Manager Prtal Designed fr prject manager t mnitr, frecast and reprt prjects assigned t him/her persnally. Prject manager can see status f the entire prtfli and each individual prject at the same time. They can expand prject structure frm the Prtal r drill dwn int each prject t view mre details: Prject Builder, Prject Manger Wrkbench, Purchase Order list, Time Sheet reprts etc. On the Frecast Histry tab financial histry track is displayed. Prject Manger can chse a single prject, prject grup r entire prtfli. Yu can view prject frm its beginning t its current stage and see hw Budget, Frecast Cst at Cmpletin (EAC), Revenue and Prfit changed ver time.
5 Nvec epm Key Features Prject Manager Wrkbench: User Experience A new nn-transactinal user experience in SAP Prject System Replaces several steps/transactins by ne screen. Prject Manager wrkbench represents a central place, a single screen t review yur prject, update cst frecast, run drill-dwn reprts etc. Intuitive and Easy navigatin. Quick identificatin f prblem areas via exceptin traffic lights Prvides ne central place t review KPIs, update frecasts, execute analytical and drill dwn reprts Cntext drill-dwn reprts n Purchase Orders, Actual Csts, Time Cnfirmatins, Open Purchasing Cmmitments, Prject Variatins etc. Graphical presentatin f prject KPIs, including s-curves. N interfaces, n mdificatins, n custm tables, instant and seamless integratin with SAP ECC (e.g. Prject Builder, PS Inf System, MM, PM, FI/CO etc.) Prject Manager Wrkbench: Functinality Aut recalculatin f prject Cst T Cmplete frm actual csts and cmmitments with autmatic redistributin f cst t cmplete ver remaining duratin Use any cst plan (Easy Cst Planning, netwrk csting, unit csting) t generate initial prject cst t cmplete. Manually adjust Cst and Wrk T Cmplete n netwrk activity r WBS element Manual re-distributin f Prject Budgets, Cst T Cmplete, Purchasing Cmmitments with immediate graphical representatin. Multi-level Cst T Cmplete management utilizing planning level cncept fr multi-tier prject structures allwing integratin f wrk rders (SC/PM and PP) int prject cst frecasting Perid sensitive Cst Frecasting using planning perid, designed fr mnth end prcesses Autmatic frecasting histry recrding (w/ need t versin cpy) Instant Integratin f cst frecasts with Resurce Planning, PS Inf System, Prject Result Analysis Prgress and Earned Value Analysis Frecast change lg Integrate prject variatins with budgets and cst t cmplete epm des n mdify SAP standard cre cmpnents and des nt require any additinal interfaces t run
6 System Architecture Nvec system architecture is very simple: It des nt require additinal hardware, system memry r interfaces. Nvec is certified by SAP, which guarantees that it des nt mdify SAP ECC and it adheres t stringent technical requirements frm SAP. Business Benefits Achieve greater cnsistency, transparency, audibility f prject infrmatin Cntrl yur prject management lifecycle in ne central integrated SAP ECC system: n third-party sftware, n spreadsheets Standardize prject management and reprting methdlgy in yur rganizatin Greater infrmatin transparency Managers can reprt n prjects instantly in SAP system Drill dwn t transactinal data n a single click Greater cnsistency and audibility f prject csting infrmatin
7 A centralised SAP prject repsitry that integrates infrmatin frm internal cmpany grups : Planning, Engineering & Design, Financial cntrl, Cntracts & Prcurement, Prject & Cnstructin management Open auditable infrmatin enables prcess efficiency and knwledge integrity: One Visin Accelerates ROI n the system implementatin verall and prject system in particular Reduce peratinal csts f Prgram & Prject Management Direct linkage f Frecasting t resurce planning and reduced time t create, stre and share prject inf. Reduces clerical wrklad f Managers and Site Supervisrs and imprves ptimisatin f labur resurces Reduce peratinal csts f supprt systems Better utilize the integrated capability f SAP fr prject management and reprting Retire ther systems integrated t PS fr mnthly re-planning Reduce csts assciated with licensing, supprting and maintenance f ther nn-sap systems Streamlined standard business prcesses Cmmn methdlgy prducing cnsistent prject infrmatin stred in a single repsitry Business prcess efficiency; cnsistent infrmatin imprves decisin making by reducing errrs and ambiguity in the infrmatin Benefits fr the users Prject Manager and Crdinatrs have ne single screen fr reviewing and updating prject key financial and resurce planning infrmatin exceptins are clearly presented minimum training is required, n prir SAP experience is necessary instant infrmatin interrgatin via cntext dependent drill dwn reprts t transactinal data cnsistent prcess
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