Course Overview - SAP PS

Project Characteristics:

Projects are tasks with particular characteristics:

1. They are usually complex, unique, and involve a high degree of risk.
2. They have precise targets which are agreed between the contractor and the sold-to party.
3.  They are limited in duration, and are cost and capacity intensive.
4.  Several departments are involved in a project.
5.  They are subject to specific quality requirements.
6.  They are of mostly strategic significance for the business carrying them out.

Projects are usually an integral part of a business's commercial processes. Before you can control all the tasks which occur as part of project execution, you need a project-specific organizational form which should be in a position central to the user departments involved.

PS Master Data:

• A work breakdown structure (WBS) is a model of a project, and shows the project activities to be fulfilled in hierarchical form. It forms the operative basis for planning costs, revenues, and payments, as well as for scheduling, and budgeting. 

• Activities are used to show the flow of a project or of activities involved in a project. The individual tasks are linked to each other, and grouped together to form what are known as "activities". Activities form the operative basis for planning and controlling dates, costs, and resources (personnel, machinery, PRTs, materials). 

• When activities are assigned to WBS elements, the dates and costs defined in the individual activities are totaled up (aggregated) at the WBS level, and can be evaluated. Activity funds already assigned are checked against the budgets of the WBS elements.

Main Business Scenario

During this course, we will look at the following two projects:

1. An investment project: "Elevator E-99##"
2. A customer project: "Turbine System T-200##"

Business Scenario: Investment Project

Investment Project: E-99##

1. Project E-99## is an investment project.
2. It is mapped using a work breakdown structure without any activities. Costs and dates are planned manually in the WBS elements.
3. The investment project is assigned to investment program. This means that you can analyze costs and dates across projects. During budgeting budget values are distributed from the investment program to the projects assigned to it (top-down budgeting). During project budgeting, the investment program budget values are distributed to the lower level WBS elements.
4. Commitments and actual costs are written to the WBS elements (using account assignment).
5. The project is settled to asset under construction (AuC), and then to assets.

Business Scenario: Customer Project

Customer Project: T-200##

1. T-200## is a customer project.
2. It is mapped using a work breakdown structure that contains activities.
3. These activities define the flow of the project. At the same time, they also form a quantity structure for planning:
• Costs (occurs automatically via costing).
• Resources (internal activities and external activities).
• Material requirements (using assigned components).
4. The project cost plan is used to create quotations.
5. When the sales order is received, it is assigned to the project. This means that it can be used to plan revenues and to post these revenues by means of a billing document.
6. Actual data (dates, resources, costs, revenue and payments) are written to the network activities. Since the activities are assigned to WBS elements. this data can be summarized throughout the project structure.
7. Result analysis is performed for the project. The result analysis values are settled to the profitability segment.

Phases in a Project:

The project itself comprises several phases. A high degree of precision is required when planning and coordinating large and complex projects. When planning the flow of a project, you will schedule deadlines and dates, make resources available, and assign budgets. The Project System gives you the support you need in all project phases.

SAP Implementation Methodology

Business Benefits of ERP:

1.              Improve alignment of strategies and operations

2.              Standardize the business processes in the organization.

3.              Achieve better efficiency of operation.

4.              Adopt best practices, processes and systems

5.              Set up and Implement an integrated and up to date IT SAP system

6.              Rationalize multiple non-integrated systems into one common solution

7.              Replace a high percentage of manual tasks with an automated solution through SAP

8.              Provide immediate access to enterprise information

Ingredients of Success:

1)             Adequate budget

a)      Including training, documentation and conversion.

2)             Alignment with Business Goals:

a)      The strategic objectives of the program should be in alignment with organization’s business goals.

3)            Clear and concise Deliverables

4)             End-User Involvement

a)      People need to be involved from beginning to end. Top-down control without bottom-up involvement is a recipe for disaster.

5)            Adequate Training:

a)      Training is not an expense; it is investment in human resource.

6)            Change Management:

a)      When changes are prepared for and introduced gradually, it does not make people insecure and resentful; it turns them into advocates

Accelerated SAP Methodology:

Phase 1 : Project Preparation

During this phase the team goes through initial planning and preparation for SAP Project.

Phase 2 : Business Blueprint

Phase 3 : Realization

Phase 4 : Final Preparation

The purpose of this phase is to complete the final preparation, which includes the following:

Phase 5 : Go Live & Support