Project Management Solutions for Capital and Maintenance projects in SAP PS enhanced by Noveco epm

Transcription

1 Project Management Solutions for Capital and Maintenance projects in SAP PS enhanced by Noveco epm

2 Program and Project Management Long Term Strategic & Operational Portfolio Management Short term Initiation Balancing Planning Execution Monitoring Project management Planning Execution Monitoring Forecasting Business Intelligence Corporate Services Financials & Controlling Project Accounting Procurement Time recording Human Resources Reporting: Financials & Resources on Portfolio, Program and Project level

3 Program and Project Management Long Term Strategic & Operational Portfolio Management Short term Program and Portfolio Management Initiation Balancing Planning Execution Monitoring Project management Planning Project Execution Management Monitoring Forecasting Business Intelligence Corporate Services Financials & Controlling Project Accounting Procurement Time recording Human Resources Reporting: Financials & Resources on Portfolio, Program and Project level

4 Program and Project Management Long Term Strategic & Operational Management Program and Portfolio Management Project management Portfolio and Project Project Management Planning Execution Monitoring Forecasting Short term Program and Portfolio Management Initiation Balancing Planning Execution Monitoring + Project Management = Corporate Services Financials & Controlling Management (PPM) Project Accounting Procurement Time recording Human Resources Business Intelligence Reporting: Financials & Resources on Portfolio, Program and Project level

5 Integrated Company view Detailed project information produced and managed in SAP ERP provides solid foundation for Program and Portfolio (PPM) planning, budgeting and forecasting Company Set Strategy Program and Portfolio Management Strategy analysis Integrated Project Management Corporate Services and day-to-day business operations Projects Execution

6 PPM: Programs and Projects consolidated financial view 2000 BUDGET ACTUAL FORECAST FORECAST BUDGET ACTUAL Projects assigned to program items provide the most upto-date financial information including latest forecast

7 Program and Project Management Long Term Strategic & Operational Portfolio Management Noveco epm enables Project Initiation Balancing Planning Execution Management Monitoring process in your SAP ERP system Short term Project management Planning Execution Monitoring Forecasting Business Intelligence Corporate Services Financials & Controlling Project Accounting Procurement Time recording Human Resources Reporting: Financials & Resources on Portfolio, Program and Project level

8 PPM: Programs and Projects consolidated financial view 2000 BUDGET ACTUALS FORECAST FORECAST BUDGET ACTUAL This presentation is focused on Project Management processes and solutions for Capital and Maintenance Projects

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

10 Why Noveco epm 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) Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring

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

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

13 Project Structure: CAPEX Projects WBS Elements Represent Project Organizational Structure: Phases Types Project Activity Example: Design, Construction, Commissioning Capital Project Construction Sub-Station Option 1: WBS NWA WO WBS used for: Grouping project activities for reporting Cost planning (see next slides) Budget allocation Network Activities Represent Project tasks Example: engineering drawings, earth moving, installation Networks used for: Detailed Cost Planning Dates scheduling Time confirmation (design, engineering) Cost Forecasting Work Orders (PM orders) represent physical job to be performed on site: Example: installation, fitting, drilling, replacement operations Materials & Services Work Orders used for: Detailed dates and resource planning Procurement materials and services Material consumption Labour confirmation Cost Settlement

14 Project Structures: CAPEX Projects WBS Elements Represent Project Organizational Structure: Phases Types Project Activity Example: Design, Construction, Commissioning Capital Project Construction Sub-Station Installation Option 2: WBS Work Orders WBS used for: Grouping project activities for reporting Cost planning (see next slides) Budget allocation Dates Scheduling Cost Collection (e.g. design, engineering, project management) Cost Forecasting Work Orders (PM orders) represent physical job to be be performed on site: Work Orders used for: Detailed dates and resource planning Procurement materials and services Example: fitting, drilling, replacement operations operations Material consumption Labour confirmation Cost Settlement Materials & Services

15 Two Options for Project Structures Op%on 1: WBS Networks Work Orders Option 2: WBS Work Orders

16 Project Structure: WBS Networks Work Orders Cost Estimation On Network Activities Cost Estimation On WBS Elements This scenario suggests the following: Cost plan is done on Network Activities Capital work is performed by Work Orders: Procurement of materials services Material consumption from stock Resource Planning Some work (project management, design etc.) may be confirmed directly to Network activities Total Value of Cost Planned on a Network Activity must correspond to the amount of work planned and performed by Work Orders assigned to this activity

17 Project Cost Planning on Network Activities Capital Project Construction In this scenario network activities are used for Cost Planning Dates scheduling High level resource planning Cost Forecasting Sub-Station Manual Cost Planning on Network activities: Labour rates (different types) Materials Services Plants & Equipment Overheads operations For manual cost planning we recommend using Easy Cost Planning on network activities. Materials & Services See next slides more information

18 Project Structure: WBS Networks Work Orders Cost Estimation On Network Activities Cost Estimation On WBS Elements This scenario suggests the following: Cost plan is done on WBS elements Capital work is performed by Work Orders Procurement of materials services Material consumption from stock Resource Planning Some work (project management, design etc.) is confirmed on WBS elements Total Value of Cost Planned on a WBS element must correspond to the amount of work to be performed by Work Orders assigned to this WBS element

19 Cost Plan on WBS elements Capital Project Construction Sub-Station In this scenario WBS elements are used for Cost Planning Cost Forecasting Network Activities are used for Dates scheduling High Level resource Planning (if applicable) Cost of engineering, design, project management is directly confirmed to network activities Actual Costs from Work Orders is passed through to WBS Labour Materials Services Plant Overheads Manual Cost Planning on WBS elements: Labour rates (different types) Materials Services Plants & Equipment Overheads For manual cost planning Noveco recommends using Easy Cost Planning on WBS elements

20 Two Options for Project Structures Op%on 1: WBS Networks Work Orders Option 2: WBS Work Orders

21 Project Structure: WBS Work Orders Cost Estimation On WBS Elements This scenario suggests the following: Cost plan is done on WBS elements Capital work is performed by Work Orders Procurement of materials services Material consumption from stock Resource Planning Some work (project management, design etc.) is confirmed on WBS elements Total Value of Cost Planned on a WBS element must correspond to the amount of work to be performed by Work Orders assigned to this WBS element

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

23 Capital Project Construction Sub-Station Demo... operations Materials & Services

24 Cost Estimation On Network Activities Cost Estimation On WBS Elements This demo scenario covers WBS-Network-Work Order scenario. The solution will work in similar fashion in all other scenarios

25 Project Management Lifecycle Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring Create Project Structure Cost Planning Dates Scheduling Budget approval

26 Integrated Project Management in SAP * Project Reporting Profit Take (Result Analysis) Dashboard reporting * Noveco Applications Portfolio Planning Reporting and Analysis Monitoring Forecasting Progress Tracking * Project Manager Workbench Create Projects Planning and Execution Project Builder Cost & Revenue Planning Project Dates Scheduling Procurement, Time Sheets Invoicing, Billing * Project Variation Management

27 Project with WBS elements and networks Create project structure in SAP PS using Project Builder Projects can be created from templates or by copying existing projects

28 Project Management Lifecycle Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring Create Project Structure Cost Planning Dates Scheduling Budget approval

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

30 Project Cost Planning In this example Easy Cost Planning (SAP Standard) used to create project Cost Plan Note that Easy Cost Plan can be automatically generated via interface from an estimating system Easy Cost Planning

31 Project Cost Planning Select Costing version Cost Estimation is saved in costing version Multiple Costing versions can be created during different stages of planning and estimation In this example version N01 is used to keep an approved Original Estimate

32 Project Cost Planning Easy Cost Planning allows you to plan multiple resources on one WBS or Network Activity : multiple Internal labour types, external services, Material, Plant etc. You can use an estimating template to generate costing line items automatically based on entered parameters

33 Project Cost Planning Plan labour, materials and equipment on Network activities PM orders will be assigned to that network activity to carry out the work

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

35 Project Scheduling OpenPS for Microsoft Project (SAP standard interface between PS and MSP) New Gantt Chart is available as of ECC 6.0 enhp6 Use 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

36 Integrated Project Management in SAP * Project Reporting Profit Take (Result Analysis) Dashboard reporting * Noveco Applications Portfolio Planning Reporting and Analysis Plan Monitoring Cost Analysis Forecasting and Progress Cost Tracking Distribution * Project Manager Workbench Planning and Execution Project Builder Cost & Revenue Planning Project Dates Scheduling Procurement, Time Sheets Invoicing, Billing * Project Variation Management

37 Project Manager Workbench Current Budget = Estimate + Variations + Adjustments + Contingency

38 Project Manager Workbench Estimated At Completion = Actual Costs + PO Commitments + Costs To Complete

39 Project Manager Workbench Costs are broken by WBS, Network Activity, Value Category and Resource Types

40 Project Manager Workbench You can choose to view costs aggregated and grouped by Value Category and Resource Types for selected WBS element

41 Project Manager Workbench Cost broken by Value Category by Period

42 Project Manager Workbench

43 Project Manager Workbench

44 Cost Distribution Choose Cost Type for distribution: Budget, Cost To Complete, PO Commitments Choose Value Category e.g. DESIGN, LABOUR etc.

45 Cost Distribution Distribute cost of MATERIALS Values and Graphs below are updated immediately as you type

46 Cost Distribution Distribute cost of LABOUR using different pattern

47 Project Progress The Progress Calculation method for this network activity is set to Work Proportional System plots plan POC and BCWS based on Labour distribution

48 S-curve report of cumulative values

49 Integrated Project Management in SAP * Project Reporting Profit Take (Result Analysis) Dashboard reporting * Noveco Applications Portfolio Planning Reporting and Analysis Monitoring Forecasting Progress Tracking * Project Manager Workbench Post Actual Costs and Purchasing Commitments Planning and Execution Project Builder Cost & Revenue Planning Project Dates Scheduling Procurement, Time Sheets Invoicing, Billing * Project Variation Management

50 Project Management Lifecycle Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring Procurement Materials and Services Cost Allocation and Labour Confirmation Forecast update and KPI Monitoring Progress assessment Variations and issues

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

52 Project with Maintenance Orders Work Orders were created and released Actual Costs will be posted to Work Orders and to Network Activities directly Purchasing Order will be raised for materials and services

53 Project Manager Workbench: Actual Costs Actual Costs posted and Purchase Orders raised Exclamation Mark indicates that forecast must be recalculated Automatic recalculation will reduce cost and work to complete on Network Activities

54 Project Management Lifecycle Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring Procurement Materials and Services Cost Allocation and Labour Confirmation Forecast update and KPI Monitoring Progress assessment Variations and issues

55 Project Manager Workbench: auto-recalculation On Refresh Workbench recalculates forecast Cost To Completes, adjusts Estimated at Completion and project actual progress Automatic recalculation saves PMs time You can run automatic recalculations for thousands of projects as a background job

56 Project Manager Workbench Estimated At Completion = Actual Costs + PO Commitments + Costs To Complete Cost To Complete for ADMIN reduced to zero since Actual Costs are higher then it was initially budgeted, making Estimates at Completion higher then Budget by $2700.0

57 Project Manager Workbench Purchase Order list (you can drill down into PO details)

58 Project Manager Workbench: Change Forecast To manually adjust forecast, switch to Change Mode Change Cost To Complete, Work To Complete or Estimated At Completion for a costing line

59 Project Management Lifecycle Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring Procurement Materials and Services Cost Allocation and Labour Confirmation Forecast update and KPI Monitoring Progress assessment Variations and issues

60 Progress and Earned Value Progress of this Network Activity is calculated based on Work (Estimated and Forecasted) User can adjust Actual POC

61 Project Progress and Earned Value

62 Integrated Project Management in SAP * Project Reporting Profit Take (Result Analysis) Dashboard reporting * Noveco Applications Portfolio Planning Reporting and Analysis Monitoring Forecasting Progress Tracking * Project Manager Workbench Create Project Variation Planning and Execution Project Builder Cost & Revenue Planning Project Dates Scheduling Procurement, Time Sheets Invoicing, Billing * Project Variation Management

63 Project Management Lifecycle Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring Procurement Materials and Services Cost Allocation and Labour Confirmation Forecast update and KPI Monitoring Progress assessment Variations and issues

64 Project Variation document Create Variation document with estimated costs of the variation Assign costing items to project network activity (or multiple activities), which is affected by variation Upon approval project Budget and Forecast will be automatically updated

65 Project Manager Workbench with approved variation Current Budget = Estimate + Variations + Adjustments + Contingency

66 Project Manager Workbench with approved variations Here you can analyse the variations See project history of changes Drill down to variation documents

67 Project Management Lifecycle Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring Project Reporting Portfolio and Program Reporting Analysis Long Term planning and forecasting

68 Project Report from PS Info-system All information from the Project manager Workbench is automatically recorded in PS Info System You can use that information in all your company reports produced from BI, PPM etc. Noveco integrates with SAP standard reporting seamlessly and does not require any interfaces

69 Project Manager Portal in SAP PS You can also run comprehensive reports right in SAP PS like this one

70 Project Manager Portal You can run it for several projects that you are responsible for

71 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

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

73 Integrated Company view Detailed project information produced and managed in SAP ERP provides solid foundation for Program and Portfolio (PPM) planning, budgeting and forecasting Company Set Strategy Program and Portfolio Management Strategy analysis Integrated Project Management Corporate Services and day-to-day business operations Projects Execution

74 PPM: Programs and Projects consolidated financial view 2000 BUDGET ACTUAL FORECAST FORECAST BUDGET ACTUAL Projects assigned to program items provide the most upto-date financial information including latest forecast

75 epm Project Cost Forecasting, Progress and Variation Management 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.

76 Business Value of Integrated Project Forecasting in SAP 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

77 SAP Customers running Noveco epm Rawson Group rawsonhomes.net.au Industry: Residential construction Powercor/CityPower powercor.com.au Industry: Utility, Construction Sedgman TRILITY sedgman.com Industry: Mining Construction trility.com.au Industry: Utility, Construction Hydro Tasmania Industry: Utility, Construction

78 For more information visit Noveco Systems on