Organization didnt have any standard process of structuring the project Each project is different in nature, therefore cost

t planning and Budgeting and control over the project is very important for the business. Projects are in various geographical locations and it is very difficult to monitor and control the consumption of material. Also reconciliation of material used in the Project is a tedious process. Currently we dont have the Cost Planning in place therefore analysis of Actual Cost with Budgeted Cost is not possible. Re-scheduling of Project Structure and activities, which is the common practice in any organization. Currently handled Excel which is very tedious and time consuming exercise.

 SAP PS is Completely integrated with other Modules. That means any transaction executed in any other module if affecting PS module will automatically be reflected at the respective place & Vice versa. Can Maintain different versions of same project to compare current status vs previous status.

SAP provides well defined standardized process.

Total work can be divided into smaller, manageable pieces and activities SAP Provides activity based cost planning & Budgeting. SAP gives proper way of allocating the fund at different stages of Project through a scientific method. SAP Provides focused solution for re-scheduling the project.

 PS Provides Contracting & Material Consumption Cost WBS/Activity Wise. SAP Provides the detailed reports of Planned vs Actual cost in line with progress of the project. We can Control the un authorized or wrong posting using user/system status. SAP provides milestone billing at any point of time and number of billings should be generated with respect to the work accomplished . SAP Provides solution to control the activities at sites in such a way that the material consumption and reconciliation of material becomes transparent. Provide a permanent record of project performance which can be analyzed for future performance improvements

Project System Overview.

Project Definition
Identifier, Contains Start & Finish dates of Project

Project Definition

Work Breakdown Structure

Hierarchy model of the Project

WBS Elements

Network
Sequential structure showing activities

Networks

Activity
Start and finish date of work or activity

Processed w/o interruption, incurring costs, resources are required for execution

Network Activities

Milestones

Milestones

SAP Project system

Projects are tasks with special characteristics: They are generally complex, unique, involve a high degree of risk and with precise goals. They are limited in duration and are cost and capacity intensive i.e. time, finance and resource dependent.

1996

Time

Costs

Project

Progress

Work

WBS element functionality

Dates

- Scheduled dates - Actual dates

Costs - Planned costs - Actual costs

Budget - Original Budget - Budget Release

Revenues - Plan revenues - Actual revenues

Commitments -Purchase requisitions -Purchase orders

Project structure in SAP

Project Definition

Option - 1

WBS Element

Activity

Project Start & End Date

Project structure in SAP

Project Definition

Option - 2

WBS Element

Activity

Project Start & End Date

System Status and User Status control

CRTD PREL CRTD CRTD PREL REL

CRTD

CRTD

CRTD

CRTD

CRTD

REL

REL

REL

What is Status control used for?

To allow or forbid certain business transactions.

Which elements?
Project definition and WBS elements are affected.

How?
Status are activated manually or automatically by the system.

Why system and user status?

User status adds detail to the system Status.

Relationships between Activities

Logical Sequence FS Relationship Time Sequence

SS Relationship

FF Relationship

SF Relationship

Example of Time Planning

20 10 1 1 2D 2 2 3 4 3 3 6D 8 8 9 9

50 40 5 6 3D 7 8

30

2D 4 5

3D 11 11

10 20 30 40 50 1 2 3 4 5 6 7 8 9 10 11 12 13 Days

Earliest Start Date

Earliest Finish Date

10 1 1
Latest Start Date

2D 2 2

2
Latest Finish Date

Time planning board

Cost Planning

Planning Methods

Costing Unit Costing

Here we will enter the Coefficient or norms for 1 unit. This will be created as template & we will use this template as when we need of the same

Costing Primary (Cost Element wise)

Costing Report WBS Wise

Costing Report WBS Wise

Costing Report Cost Element wise

Activity confirmation
Project Structure

WBS Elements

Activity

Release project

Confirm Activity

Reverse, if reqd

Generate DPR

DPR Report Date wise

DPR Report WBS Wise

Material Issue Process

Current Process Material from Vendor

Main Store

Project

Material Issue Process

Proposed Process
Cont. X

Material from Vendor

Main Store
Cont. Y

Tower -A

Cont. Z

Sub Store of Contractors

Tower - B

Project Summary Report

Progress Analysis

Actual costs
Actual percentage of completion

Budgeted cost of work performed Budgeted cost of work scheduled

Variances

Planned percentage of completion

Missing Links There are 4 steps to take make this module in full swing

1) Time Planning:

Before Starting the Project in SAP PS, We need Complete Project/Tower Structure Otherwise we will not able to do the time planning properly.
2) Cost Planning & Quantity Controlling:

We also need the Drawing before starting of the project to calculate the qty of work need to executed. Other wise we will not able to create BOQ & Cost Planning.
3) Material Requirement & Material Controlling (through SAP MM): On getting above items in place we can get the material requirement in planned manner. 4) Milestone Billing through SAP SD:

We need to define the Project Wise/Tower wise Milestone to activate the milestone billing in SAP SD Module.

Main Requirement Roles and responsibilities need to be defined to run the system systematically, Normally updation of information is left on IT deptt. which is wrong practice, Respective deptt. should take the responsibility to complete the data flow.