Sap solutions presentation

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

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

SAP centric requirements
Engineering & Design
Construction Package
Structural Engineering
Drafting
Sub-contracted services
Construction worker
Construction project
Current
Budget
Original
Estimate
Contract
Value
Costs To
Complete
Actual
Costs
Estimate At
Completion
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 valuesMaterials

Why Noveco ?
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
Why do you need Noveco ePM for project Management in SAP?
SAP Project Systems (PS) functional gaps:

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)
Why Noveco ePM
.
.

.
.

Efficient
Project
Management
Execution
MonitoringForecasting
l  Reporting
l  Analysis
l  Settlement
l  Estimating
l  Planning
l  Budgeting

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

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

Project Management Lifecycle
•  Create Project Stricture
•  Cost and Revenue Planning
•  Dates Scheduling
•  Budget approval
•  Cost Distribution
.
.

.
.

Efficient
Project
Management
Execution
Monitoring
Forecasting
l  Reporting
l  Analysis
l  Settlement
l  Estimating
l  Planning
l  Budgeting

Invoicing, Billing
Planning
and
Execution
Monitoring
Forecasting
Progress Tracking
Reporting
and
Analysis
Create
Projects

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
WBS used for:
•  Grouping project activities for
planning and reporting
•  Form (sub)packages within
structure
•  Cost planning (see next slides)
•  Budget allocation
•  Cost Collection (e.g. labour,
materials, equipment, services)
•  Cost Forecasting
•  Reporting
Construction Project
Construction
Building A1
Equipment Installation

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

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

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

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

.
.

.
.

Efficient
Project
Management
Execution
Monitoring
Forecasting
l  Reporting
l  Analysis
l  Settlement
l  Estimating
l  Planning
l  Budgeting
•  Create Project Stricture
•  Cost and Revenue Planning
•  Budget approval
•  Cost Distribution

Invoicing, Billing
Planning
and
Execution
Monitoring
Forecasting
Progress Tracking
Reporting
and
Analysis
Cost
Planning

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

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

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.

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

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

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

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

Invoicing, Billing
Planning
and
Execution
Monitoring
Forecasting
Progress Tracking
Reporting
and
Analysis
Scheduling

Schedule Project Dates using PS Planning Board or MSP
OpenPS for
Microsoft Project
(SAP standard
interface between
PS and MSP)
•  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
New Gantt Chart is
available as of ECC 6.0
enhp6

Invoicing, Billing
Planning
and
Execution
Monitoring
Forecasting
Progress Tracking
Reporting
and
Analysis
Cost
Distribution

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

Estimated At Completion = Actual Costs + Commitments + Cost To Complete

•  Plan Revenue = Original Revenue + Revenue Variations
•  Current Proﬁt = Plan Revenue – Estimated At Completion

Cost information is broken by WBS, Value Category and Resource Types

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

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

Project Manager Workbench: Value Category by Period

Project Manager Workbench: Plan by Period
Distribute LABOUR cost

Distribute MATERIAL cost
Noveco manual distribution
function allows you distribute
diﬀerent type of cost
independently from each other

Distribute SUBCONTRACT cost
In this WBS you expect Purchase
Order to be raised

Invoicing, Billing
Planning
and
Execution
Monitoring
Forecasting
Progress Tracking
Reporting
and
Analysis
Post Actual
Costs
and
Purchasing
Commitments

.
.

.
.

Efficient
Project
Management
Execution
MonitoringForecasting
l  Reporting
l  Analysis
l  Settlement
l  Estimating
l  Planning
l  Budgeting
•  Procurement
•  Time Sheets
•  Forecast update and KPI Monitoring
•  Progress assessment
•  Variations and issues

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

Invoicing, Billing
Planning
and
Execution
Monitoring
Forecasting
Progress Tracking
Reporting
and
Analysis
Recalculate
Forecasts

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

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

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

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

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

•  Switch to Change mode
•  Change Cost and Work To Complete or
Estimated At Completion
•  System recalculates Estimated Cost At
Completion (EAC) and Budget Deﬁcit

•  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

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

Project Manager Workbench: S-Curves

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

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

Invoicing, Billing
Planning
and
Execution
Monitoring
Forecasting
Progress Tracking
Reporting
and
Analysis
Create
Project
Variation

Project Variation
Revenue item
Costing items
Variation aﬀect on project

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

Project Variation in details
•  Variation List
•  Variation history

Invoicing, Billing
Planning
and
Execution
Monitoring
Forecasting
Progress Tracking
Reporting
and
Analysis
Project
Reporting

•  Project Reporting
•  Portfolio and Program Reporting
•  Analysis
•  Long Term planning and forecasting
.
.

.
.

Efficient
Project
Management
Execution
Monitoring
Forecasting
l  Reporting
l  Analysis
l  Settlement
l  Estimating
l  Planning
l  Budgeting

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

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

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

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

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

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

●  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.
ePM Project Cost Forecasting, Progress and Variation Management

●  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
Business Value of Integrated Project Forecasting in SAP

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
TRILITY
–  trility.com.au
Hydro Tasmania
–  www.hydro.com.au

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

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

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