A Detailed Review of the PPM Solutions Roadmap

Keith Wallis - TAMS Head Solutions Strategy & Development

A Detailed Review of the PPM Solutions Roadmap

Agenda

About Us

TAMS Integrated Solution Map

Estimating, Planning, and Forecasting

The Importance of the Costing Model

PPM – Defining the Portfolio

Scheduling Integration

Mobility

Questions

About TAMS

• TAMS is about:• Providing solutions that

transform your business• Specialisation in our chosen

fields of expertise– Strategic advice– Performance Management– PPM, EAM, Finance, Billing,

Procurement, Change Management, Training,

Senior Personnel• Keith Wallis 14 years• Rob Jacobs 14 years• Kieron Dowling 16 years• Mark Lloyd – 14 years• Simon Nott – 12 years• Tom Martin (strategic) - 15 years• Lyndy Wallis – 15 years• Stewart Winter – 14 years

QUALITY, EXPERIENCE, DELIVERY

Eliminating the Transactions - Our Vision

Company 1 Company 2

• Timesheet captured• Sent automatically to project manager• Project manager approves• Creates time and progress entries in company 1• Creates liability and payment entries company 2

Key Points

• Understand the “BIG” Picture (Vision)

• Understand the concepts not the technical details of the presentation

• Alignment and monitoring of the strategic objectives with the actual delivery will deliver significant benefits

• The TAMS integrated solutions roadmap when presented in conjunction of functional demonstrations has received 100% positive response

Agenda

About Us






Mobility

Questions

Project & Portfolio Management (PPM)

What’s the Big Deal?• 17% of projects succeed • 31% of projects fail• 52% of projects are challenged

Due to cost and/or schedule performance• $78 billion dollars total project waste(against $250 billion in project spending) (Standish Chaos Report 2007)

“The major cause of project failure is not the specifics of what went wrong, but rather the lack of procedures, methodology and standards for managing the project.”

Can I tax this project waste

There will be no

tax on waste

under my watch

TAMS Integrated Solutions Map ©

BI Program (Reporting Suite) – Crystal, Xcelsius, Bex,

Business Warehouse

SAP PPM – RPM & cProjects

Estimating Software:

RIBHard DollarDatabuild

Other

Primavera MS Project

SAP Enterprise Project Connection


SAP Sourcing

Management)

SAP Sourcing (Contract Lifecycle

Management)

SAP ECC6

QM

SAP ECC6SD,MM,AAPP, FI, CO,

QM

SAP ECC6 EAM

SAP ECC6 IM

SAP ECC6 PS, MRS

PortfolioPortfolio

Project Management

Project Management

WarehouseWarehouse

Planning /AnalyticsPlanning /Analytics

StrategyStrategy

ReportReport

SAP Strategy ManagementSAP Strategy Management

BPCBPC GRCGRC PCMPCM SASAM

obility & ECM

& Visual Business

Project Portfolio ManagementStrategic Objectives

New ProjectsStrategic Planning

Program / Project

Planning

Project Portfolio Management

Project Management

Post Audit / Close

Unapproved

CancelledIn-Progress ProjectsOn-Hold Projects

Portfolio ScreeningProject Scoring

Portfolio RankingPortfolio

SimulationOut of Capacity

Complete

ANNUAL

Quarterly

Monthly

PortfolioMonitor

Pre-Assessment / Risk Analysis

Approved andnot Resourced

In-Progress ProjectsOn-Hold Projects

Screened

Approved

Unapproved

Review and Update

SSM

BPCPCM

PPMIM

PScProjects

CLMEPCECM

EAM

Agenda

About Us






Mobility

Questions

Organisational Structure

Controlling Area

Brisbane Perth

Management Management Project Dev Coal

Internal Orders PM / CS Orders Sales Orders

1:Many

WBS / NetworkActivities

Client

TAMS TAMSSouth Africa

TAMSHawaii

Company Code

Profit Centres

Cost Centres

Detailed ActivitiesCOST OBJECTS

Accountability Built into SAP

ControllingOverhead Management and Profitability

Project Portfolio ManagementProject Performance

Plant Maintenance / OperationsEquipment and Operational Performance

Functional Location

Equipment 1 Equipment 2

PM / CS Orders

PM / CS Orders

Personnel are responsible for costs and revenues assigned to above objects within organisation

13

Accountability

• Accountability is mandatory and must be built into the system– Challenge individuals and groups– Measure activities against detailed plans and critique performance– Ensure responsibility is only for costs in one’s control– Empower continuous improvement

• Too often personnel perceive accountability in the negative– Individuals are often brought to account for poor performance outside of

their control– Ensure a rewards mechanism is built into the system– Positive results and visible recognition drives improvement

The Basic SAP Design Lesson

• The GL account / cost element describes the type of expense– Not one GL for all projects– Not two sets of accounts – one

for operating and one for capital– Not 5 cost elements for

consultants because they have different rates and you wish to forecast them

• The cost object describes the activity being undertaken

• Taxi fares• Accommodation• Entertainment

– Incurred on a project

= Equals one activity

• Disbursements

Agenda

About Us






Mobility

Questions



Business Warehouse




OtherSAP ECC6 IM

SAP ECC6 PS, MRS

PortfolioPortfolio

Project Management

Project Management

WarehouseWarehouse


StrategyStrategy

ReportReport


BPCBPC

IM v PPM (RPM) - Comparison

Requirement PPM (RPM) Standard

IMStandard

Portfolio Structure YES YES

Project Requests YES YES

Detailed Stage Gate Control YES NO

Scoring YES NO

What if Analysis - Simulation YES NO

Multiple plan versions one screen YES NO

Budget distribution NO YES

Key Components of the Integrated Solution

Requirement Standard SAP Enhanced Solution

IM Integration NO YES

Supports Estimating Integration NO YES

Supports Scheduling Integration YES YES

Supports Integrated Contract Management

YES YES

Supports Excel Integration With Drilldown

NO YES

Supports integrated Resource Management

NO YES

Other Products

• The core integration that provides the fundamentals of the business process is missing when other products are used

• This needs to be BUILT• The vendor will tell you they have the connectors

– The initial implementation cost may appear cheaper – The long term integration costs of third party products will far outweigh the

original cost if SAP had been selected• Can the program of work be delivered• Integration with SAP PS / cProjects• Integration with resource management• Integration with Business Objects reporting

– This principle does not apply to all aspects of the Roadmap• Example – SAP Sourcing v Other Third Party Solutions

Agenda

About Us






Mobility

Questions



Business Warehouse




OtherSAP ECC6 IM

SAP ECC6 PS, MRS

PortfolioPortfolio

Project Management

Project Management

WarehouseWarehouse


StrategyStrategy

ReportReport


BPCBPC

Estimating Integration

Improve costing, Identify Contract Opportunities, Simulation, Analyse, Assess

Planned Costs, ResourcesSchedule, Capacity

Planned Costs, Resources, Schedule, Capacity, Procurement Plan, Contracts, Forecasts

5DHard

Dollar

RIB

StandardDatabuild

TimberlineATADOther

At the project management level integration has been developed

EstimatePricesVendorsProcurement plan ????

What is the Process After Integration

• Execution of procurement plan• Forecasting

– Where is this undertaken?– Are the actuals transferred back to the estimating solution?– How does this incorporate the under / over recovery of overheads strategy

– Refer the enhancements SAP is doing round planning

Agenda

About Us






Mobility

Questions




Primavera MS Project



SAP ECC6 EAMSAP ECC6 PS

PortfolioPortfolio

Project Management

Project Management

WarehouseWarehouse


StrategyStrategy

ReportReport

Scheduling Tool IntegrationPortfolio Management

DefineStrategyDefine

StrategyIdentify

OpportunitiesIdentify

OpportunitiesCreate and Approve

BudgetsCreate and Approve

Budgets

Project ManagementStructure Project

Plan Resources, CostAssign Budget

Plan Resources, CostAssign Budget

Procure Materials and Services

Procure Materials and Services

Collect Actuals

Monitor Portfolio

Monitor Project

Analyse Risk and Rank OpportunitiesAnalyse Risk and

Rank Opportunities

Scheduling toolEstablish

Master Schedule Structure

Detailed

Planning

Detailed Activity List

and Resource Planning

Scheduling,

Levelling

Scheduling, Resource

Allocation, and Levelling

Status and Progress Updating

Tracking and Monitoring


Initiate Project


• Business Process Alignment is critical

• Technical “out of the box” implementations are recommended initially

• Recommended approach by SAP is “onsite” resourcing

Other Options

• Some clients have successfully used web services or used other in house built solutions to undertake integration– There are success and war stories

• Open PS and other products on web are utilised for MS Project / Server integration

• The cost of implementation should decrease for EPC and the functionality will increase

Agenda

About Us






Mobility

Questions

Mobility

MOBILITY IS NOT IN THE

FUTURE,

IT IS NOW

Eliminating the Transactions - Mobility

Company 1 Company 2

• Timesheet captured• Sent automatically to project

manager• Project manager approves• Creates time and progress

entries in company 1• Creates liability and payment

entries company 2

Work List View: Activities Assigned to the User

Left pane

Shows activity summary with key details starts and finish dates and % complete

Activity grouping

Simple this week and next week grouping. Users can create “favourite” activities

Work views

Assigned activities can be viewed in a work list or map display (next page)

Planned / actual

Grey rows display the planned hours for each activity. White rows show the actuals which can be edited directly

Map View: Activities Assigned to the User

Mapped activities

Displays applicable activities on a map

Activity Detail

Resources summary pane

Activity summary pane changes to resource summary for the specific activity selected

Resource detail

View and edit the details of the resource consumed against the activity

Activity detail

View additional details about the activity. Update status and % complete

In the Field Vs Back OfficeTraffic light colour coding gives an instant view of state of affairs

Clutter of backend view is removed for focused action

Smart phones have prepared users for this system interface

Out in the field

Back at the office – SAP Project Systems

Simplified View for Field StaffSimplified view for task orientated field staff

Intuitive “App”-like environment, virtually no training needed

Real-time time sheeting is now possible

Back at the office – SAP Timesheets

Out in the field

Agenda

About Us






Mobility

Questions

Key Points to Take Home

•…Define the 5 year vision for your organisation– Each component of the roadmap should be undertaken as a separate

project– Only take “bite size” chunks– The accounting / costing framework underpins the entire functional

solution

– Use experienced consultants with proven business experience

– Your executive will understand the concepts !!!!

Slide 39

SAP PS Books by Kieron Dowling

Mastering the Project Builder in SAP: Using SAP's Project Builder

SAP® Project System Handbook

Visit www.tamsconsulting.com.au to order and find out more

Slide 40

My Name

My Company

[email protected]

+61 2 9900 1234

Documents

A Detailed Review of the PPM Solutions Roadmap