Capital Project and Portfolio Management

Agenda Introduction Capital Project and Portfolio Management Process New Functions and Features for Capital Project and Portfolio Management Process Variant Leveraging SAP Enterprise Project Connection Appendix 2011 SAP AG. All rights reserved. 2

Characteristics of Capital Projects Resource intensive Costs/budget Materials Personnel Resources High Risk Strategic Long running Large and complex project structures Cross department business processes Capacity management Purchasing Materials management Production Resource related billing Enterprise controlling Quality 2011 SAP AG. All rights reserved. 3

Examples of Capital Projects Infrastructure projects, such as acquisition, new construction, expansion, renovation, or replacement projects for facilities and capital assets (e.g. in Public Sector, Oil & Gas, Transportation & Logistics, or Mining) Maintenance projects, such as shutdowns, turnarounds of a power plants or other assets (e.g. in Utilities, Chemicals, Aerospace & Defense, or Oil & Gas) Large scale engineering and construction projects, such as construction of buildings or ships (e.g. in Engineering, Construction & Operations, or Industrial Machinery & Components) Long running research and development projects, such as the research, development and introduction of new pharmaceuticals (e.g. in Life Science, High Tech, Consumer Products) 2011 SAP AG. All rights reserved. 4

Success Factors of Capital Projects Do the right projects Project Portfolio Management Complete visibility of all current and proposed projects Plan and forecast financials and capacity demands for sound decision support Make decisions on clear and valuable information like portfolio value, balance, financial figures and strategic alignment Know your current projects as well as your capabilities Do the projects right Project and Resource Management Managing scope, timeline and budget of projects in an integrated way Plan and monitor your detailed project costs and cash flow Track and control the execution and progress of your projects Manage project changes Collaborate with project team members, stakeholders and partner Define the resource demand and make required resources available in time 2011 SAP AG. All rights reserved. 5

SAP Building Blocks for Capital Project and Portfolio Management SAP Portfolio and Project Management 5.0 Portfolio Management SAP Portfolio and Project Management 5.0* Project Management SAP Projektsystem (PS)* Project Management Enterprise Project Connection 3 rd party Project Management tools: * For financial aspects WBS / IOs in ERP will be used SAP Portfolio and Project Management 5.0 Resource Management * For Plant Maintenance (PM) projects PM orders will be used integrated with PS SAP Projektsystem (PS) Resource Management Others SAP ERP/SRM/SCM/HCM Core Enterprise Processes / Activities in Logistics, Financials, Human Capital Management, Enterprise Asset Management 2011 SAP AG. All rights reserved. 6

Capital Project and Portfolio Management Process Portfolio Management Define Strategy Identify Opportunities Analyze Risk and Rank Opportunities Create and Approve Budgets Initiate Project Monitor Portfolio Project Management Structure Project Plan Resource Requirements / Costs Procure Materials and Services Collect Actuals Monitor Project Resource Management Strategic Planning Demand Management Talent Management SAP ERP/SRM/SCM/HCM Core Enterprise Processes / Activities in Logistics, Financials, Human Capital Management, Enterprise Asset Management 2011 SAP AG. All rights reserved. 7

Initiate Project Define Strategy Identify Opportunities Analyze Risk and Rank Opportunities Create and Approve Budgets Initiate Project Monitor Portfolio create projects from approved opportunity or assign existing project and access project structure or detailed reports synchronize project and portfolio item or decision point data, such as dates or status 2011 SAP AG. All rights reserved. 12

Monitor Portfolio (1) compare high-level financial and capacity planning with detailed planned and actual data from project management use metrics management to keep track of project KPIs (key performance indicators) 2011 SAP AG. All rights reserved. 19

Monitor Portfolio (2) monitor your portfolio, combine data coming from different systems, receive alerts for budget, schedule, staffing, risk etc. use alternativ portfolio hierarchies to analyze portfolio data using different views 2011 SAP AG. All rights reserved. 20

SAP Portfolio and Project Management 5.0 (1) New Functions and Features for Capital Project Portfolio Management in Portfolio and Project Management 5.0 *) : Reduced TCO Enhanced deployment options Alternative portfolio hierarchies (Classification) Metrics management Improved analytic capabilities New UI configuration options Improved Project System integration create a project manually or automatically coming from a portfolio item link an existing project to a portfolio item synchronize data (attributes, status) between Portfolio and Project Management on the one hand and Project System on the other hand bidirectional synchronize portfolio item and project definition synchronize portfolio item decision point and WBS element 2011 SAP AG. All rights reserved. 21

SAP Portfolio and Project Management 5.0 (2) New Functions and Features for Capital Project Portfolio Management in Portfolio and Project Management 5.0 (continued) *) : Financial Integration enhancements Hierarchical processing Settlements Handling of assigned orders Enhanced mapping rules (include cost element group, cost center from/to and group, activity type from/to and group) Mapping rules also available for Capacity Planning Currency handling Object link to PM/CS order Simplification of relevant reports Financial planning user interface enhancements improved financial hierarchy display and filter options Advanced currency handling User specific display of decimals Improved upload of capacity data based on new financial mapping rules *) For a complete overview of new Portfolio and Project Management 5.0 functions see e.g. the Release notes. 2011 SAP AG. All rights reserved. 22

SAP Project System (1) New Functions and Features for Capital Project Management in SAP Project System: Enhancement Package 3 *) : Access Control Lists (ACLs) Multi-Language support Easy Cost Planning for activities Forecast Workbench Status Combination Codes Progress Tracking for WBS Elements and activities Statistical Key Figure Planning in maintenance transactions Collective purchase requisitions based on Grouping Indicators Usability improvements Project Builder Project Planning Board Progress Analysis Workbench ProMan ESOA service enablement *) For a complete overview of new Project System functions in Enhancement Package 3 see e.g. the Release notes. 2011 SAP AG. All rights reserved. 23

SAP Project System (2) New Functions and Features for Capital Project Management in SAP Project System (continued): Enhancement Package 4 *): Handling Large Projects Master Data New transaction for performance improved project maintenance: Project Editor Selective data load options in the Project Editor Option to work in an unlocked mode in the Project Editor Handling of drafts in the Project Editor Optional cache mechanism for performance optimized data load in Project Editor Planned: Handling Large Projects Dates and Resources Date/Resource planning functions in the Project Editor for operative projects and drafts Integrated maintenance order date planning options in the Project Editor Performance improved scheduling options Performance optimized APIs for project changes Continuous performance improvements *) For a complete overview of new Project System functions in Enhancement Package 4 see e.g. the Release notes. 2011 SAP AG. All rights reserved. 24

SAP EPC SAP Enterprise Project Connection Automated in-context bi-directional interface Built-in best practice project management methodologies Eliminates double data entry and data entry errors Establishes single source of truth in critical ERP backend Enables timely and accurate reporting Reduces the risk of major schedule and cost variances Provides holistic view of project portfolio across multiple project systems Creates platform for efficient resource management 2011 SAP AG. All rights reserved. 25

SAP Enterprise Project Connection Solution Highlights Out-of-the-box integration for SAP apps Pre-built for SAP PM & SAP PS modules Adaptors for Primavera, MS Project*) and others Open architecture Leverages Service Oriented Architecture Information-driven Powered by SAP NetWeaver PPM integration best practices Years of PPM integration experience baked in Broad Fortune 100 customer successes *) Integration to Microsoft Project and others planned for future Releases 2011 SAP AG. All rights reserved. 26

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