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.