Project Cost Planning, Forecasting and Reporting Solutions in SAP enhanced by Noveco epm 3.0

Transcription

1 Project Cost Planning, Forecasting and Reporting Solutions in SAP enhanced by Noveco epm 3.0

2 Business Challenges Why Noveco epm? Solution Overview

3 Business Challenges Symptoms: Your Project System is a cost collector, not a planning-reporting system All planning, forecasting and reporting functions outside of SAP ERP As a result: You use fragmented and disconnected tools that are not integrated with ERP system High use of excel spreadsheets Project Managers and Project Controllers make decisions that are based on inaccurate or outdated data Inaccurate Project Forecasting, leading to incorrect reports, overspending, wrong profit recognition No integrated system to record variations and issues No information transparency and consistency Lack of standardization of project delivery

4 Business Challenges What are your options: Continue using excel spreadsheets Search for a third-party non-sap product, integrate it with SAP ECC Follow your PS consultant recommendations to develop complex solution in BI or BPC Implement complex and expensive SAP CPM tool based on BI-IP platform Implement Noveco epm solution in your SAP ERP system (no BW, BI, BI-IP, BO or BPC are required)

5 Business Challenges Why Noveco epm? Solution Overview

6 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

7 Project Management Lifecycle Project Initiation Estimating: Costs and Revenues Project Structure & Planning Budget Approval Start/Finish Dates Scheduling Plan Cost Distribution Efficient Project Management Purchase Orders / Contracts Time Sheets Invoicing & Billing Variations Execution Final Settlement Project Close Project Close Out Monitoring & Forecasting KPIs Review Cost / Margin Forecast Resource Planning Progress Analysis Materials and Procurement forecast Settlement Result Analysis/Profit Take Period Close Period Closing Reporting Operational Dash Board Programs/Portfolio Analytical

8 Project Management Lifecycle Run by Noveco Run by SAP or other software Project Initiation Estimating: Costs and Revenues (under development ) Project Structure & Planning Budget Approval Start/Finish Dates Scheduling Plan Cost Distribution Efficient Project Management Purchase Orders / Contracts Time Sheets Invoicing & Billing Variations Execution Final Settlement Project Close Project Close Out Monitoring & Forecasting KPIs Review Cost / Margin Forecast Resource Planning Progress Analysis Materials and Procurement forecast Settlement Result Analysis/Profit Take Period Close Period Closing Reporting Operational Dash Board Programs/Portfolio Analytical

9 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

10 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

11 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

12 Program and Project Management Long Term Strategic & Operational Portfolio Management Noveco epm enables Project Management Initiation Balancing Planning process Execution in your SAP Monitoring 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

13 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.

14 Business Challenges Why Noveco epm? Solution Overview Create Project, Schedule Dates and Distribute Costs Project Manager Workbench Project Progress Variations and Issues Project Manager Portal

15 Project Management Lifecycle Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring Create Project Stricture Dates Scheduling Cost and Revenue Planning Budget approval Cost Distribution

16 Create Project Structure, Schedule Dates 1. Create project using Project Builder 2. Schedule dates using Planning Board

17 Easy Cost Planning is a simple way to plan cost on WBS or Network Activities Easy Cost Planning is one screen transaction where you can view, enter and change project plan costs Plan: Labour, Materials, Plant, Sub-contracts etc. in one screen You can create cost plan on multiple costing versions When you change cost plan values the total values updated immediately With ECP you can create cost plan on WBS or network activities You can generate cost plan in ECP from external estimating systems Cost plan can be created using form-templates

18 Cost Planning with distribution Network Costing Easy Cost Planning Version: 000 or Version: N01 Version: N02 Version: N03 Cost Plan SAP Project Planning Board ó MS Project (ó Primavera) Dates Plan Automatic or Manual distribution of planned costs $ Plan Cost Distribution Feb-15 Mar-15 Apr-15 Jun-15 Jul-15 Aug-15 Sept-15 T

19 Cost Planning: Budget Approval Cost Plan Version: 000 Version: N01 Version: N02 Version: N03 Cost Plan created (via Easy Cost Planning or Network Costing etc.) Selected plan cost version is copied to Original Budget version and locked for changes. Original Budget values are copied to Forecast version to generate initial Cost To Complete. Forecast version represents project rolling forecasts and will be managed by Noveco epm $ Approve Original Budget Original Budget (locked for changes) Version: BDG Feb-15 Mar-15 Apr-15 Jun-15 Jul-15 Aug-15 Sept-15 $ Create Initial Forecasts Forecast To Complete (will be managed by Noveco) Version: FST Feb-15 Mar-15 Apr-15 Jun-15 Jul-15 Aug-15 Sept-15

20 Revenue Planning Create revenue Planning using SAP standard revenue planning functions: Revenue Plan Version: 000 Version: 001 Version: 002 Version: 003 Detailed Planning Sales Order with Billing Plan WBS Revenue Planning with Billing Plan $ Enter Revenue Plan By Period Original Revenue Plan (locked for changes) Version: BDG Feb-15 Mar-15 Apr-15 Jun-15 Jul-15 Aug-15 Sept-15

21 Business Challenges Why Noveco epm? Solution Overview Create Project, Schedule Dates and Distribute Costs Project Manager Workbench Project Progress Variations and Issues Project Manager Portal

22 Noveco epm Workbench Noveco Project Manager workbench provides one single integrated environment to manage your project directly in SAP ERP There is no BW/BI, IP is required No Interfaces, no z-tables, no external data storages etc. All information is read from and written to SAP ERP directly

23 Project Manager Workbench: Plan by Period You you can distribute your cost plan manually be period: Current Budget Cost To Complete Purchasing Commitments

24 Project Manager Workbench: Plan by Period You you can distribute different cost types using different pattern

25 Integrated Project Management in SAP * Project Portal / 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

26 Project Management Lifecycle Execution l Estimating l Planning l Budgeting.. Efficient Project Management.. l Reporting l Analysis l Settlement Forecasting Monitoring Procurement Time Sheets Progress assessment KPI Monitoring Forecasting (financial re-planning) Variations and issues

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

28 Project Manager Workbench: automatic recalculation of forecasts Open Project Automatically recalculate Cost to Complete Calculate Overheads on Cost To Complete Distribute Cost To Complete including OH Recalculate Estimated Cost at Completion Display information on integrated screen By clicking Refresh Cost To Complete is automatically reduced from actual costs and commitments Immediate and real-time integration with SAP ERP Manually change Cost To Complete Save Changes

29 Project Manager Workbench: integrated costing information On a single click go to the actual line items report from the workbench View list of purchase orders with their remaining commitment value. You can drill down to PO item details

30 Project Manager Workbench: integrated costing information Although Cost To Complete is automatically adjusted, you can manually change it if required

31 Noveco epm Workbench: Navigate to the top WBS to view aggregated information. Current Profit Margin reduced, because Estimated at Completion increased

32 Project KPIs grouped by Cost Groups (Value Category) Costing information is aggregated are grouped for the selected project object: By Value Category Resource Type Cost Element

33 Cost Grouping: Value Category, Resource Type Value Categories Resource Type Cost Elements Engineering & Design Designer Structural Designer System Designer Engineer Labour Civil Engineer Structural Engineer Fitter Materials Constr. Labour

34 View by Value Category: total and by period Built-in report by Value Category Graphs plots main cost KPIs by Period Pie chart of Value Categories: Current Budget vs. Estimated at Completion

35 View by Resource Type: totals and by period Graphs plots Cost To Complete by Value Category or Resource Type by Period Pie chart of Resource Types: Current Budget vs. Estimated at Completion

36 Business Challenges Why Noveco epm? Solution Overview Create Project, Schedule Dates and Distribute Costs Project Manager Workbench Project Progress Variations and Issues Project Manager Portal

37 Project Progress Progress by Period for selected project element Overall Progress Data

38 Project Progress: change Actual POC You can change Actual POC. So system can track: Plan POC (calculated based on plan data) Calculated POC (calculated based on actual data) Actual POC (initially copied from Calculated POC and updated by user)

39 Business Challenges Why Noveco epm? Solution Overview Create Project, Schedule Dates and Distribute Costs Project Manager Workbench Project Progress Variations and Issues Project Manager Portal

40 Project Variations You can view project variations in KPI tab as a summary and in the project tree

41 Project Variations Project Current Budget = Original Estimate + Variations

42 Project Variations Drill down to variation document Review Variation history

43 Project Variations: cost variation example

44 Project Variation: revenue and cost variation example You can Plan Costs and Revenue Variations within one Variation document Plan Variation Profitability Assign Costs and Revenue plan to different project WBS or Network activities Status Control to automatically update project Revenue, Budget and Forecast

45 Business Challenges Why Noveco epm? Solution Overview Create Project, Schedule Dates and Distribute Costs Project Manager Workbench Project Progress Variations and Issues Project Manager Portal

46 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

47 Project Report: Example SAP Project Hierarchy reports can be tailored to view project financial information produced by Noveco epm. All information from the Workbench is stored in SAP standard info system and can be extracted to BW/BI and other reporting tools using standard extactors Noveco epm delivers comprehensive reports (see next slide)

48 Project Manager Portal Inside SAP ERP Noveco epm Portal presents all projects assigned to a project manager Personalized project selection is created, saved and remembered by the system Projects exceptions and Key Performance Indicators are displayed against each project Graphical representation of project KPIs For all project portfolio Selected project(s), WBS or network activity Drill down to key business transactions: Project Builder, Project Manager Workbench, reports, line items Did you know? : That you don t need BW/BI system to run comprehensive reports like this one above? PS info-system has been designed to hold all related project information. BW cubes simply mirror PS info-system inside BI

49 Project Manager Portal Inside ECC Displays cumulative values of: - Budget, Estimated costs at Completion (EAC), Cost To Complete (CTC), Revenues, Actual costs, Commitments Values are presented By entire portfolio (group of projects) or by selected project or WBS

50 Project Manager Portal Inside ECC Displays historical trends from the beginning of the portfolio (or project) Budget, Estimated costs at Completion (EAC), Cost To Complete (CTC), Revenues, Profit Margin You can see how your portfolio or a project evolved over time Values are presented by entire portfolio (group of projects) or by selected project or WBS

51 Project Manager Portal Inside ECC Review your Budget, Cost To Complete and Estimated Cost at Completion by Value Categories by Period

52 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

53 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

54 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

55 Integrated Project Management in SAP * Project Portal / 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

56 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

57 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.

58 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 processesproviding 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

59 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

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

61 For more information visit Noveco Systems on