Noveco SAP Solutions for ECO Presentation

7/21/2019 Noveco SAP Solutions for ECO Presentation

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Key Requirements

! Build accurate cost estimate

! Provide clear visibility of project costs, revenues, margins and cash position

! Accurate forecasting of Cost, Revenues and Margin

! Measurement and Reporting of Project Progress

! Management of project variations, customer escalations, and their seamless inproject cost forecasting, budgeting and revenue planning

! Procurement planning & execution

! Integration of subcontractors into project execution, monitoring of work perfoincorporation of this work into progress reporting.

! Accurate customer billing



SAP centric requirements

Engineering & Design

Construction Package

Structural Engineering

Drafting

Sub-contracted services

Construction worker

Construction projectCurrentBudget

OriginalEstimate

ContractValue

CostCom

ActualCosts

! SAP system to be the central place for imanagement

! SAP Projects to update and manage key !nanattributes

! Manage project procurement of materials

services and labour directly in SAP

! SAP to be the single source to report project keyMaterials



Why Noveco ?

! Estimation or Cost Planning is cumbersome and contradictory. Most SAP PS cus•

Controlling type transactions (e.g. CJR2, CJ40) to plan cost on WBS

• Network Planning, inherited in PS from PP (production planning) on network activitie

! Cost forecasting or !nancial re-planning is not functional

! No project variation management solution

! No single central place to manage your project (you must run dozen of transand report)

! No comprehensive project reports out of the box

Why do you need Noveco ePM for project Management i

SAP Project Systems (PS) functional gaps:



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!!

!!

EfficientProject

Management

Execution

MonitoringForecasting

! Reporting! Analysis! Settlement

! Estimating! Planning! Budgeting



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Procurement, Time SheetsInvoicing, Billing

Project Dates SchedulingCost & Revenue PlanningProject Builder

Dashboard reporting* Project Reporting Pro!t Take (Result Analysis)

Planningand

Execution


Progress Tracking

Reportingand

Analysis

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Project Management Lifecycle

•

Create Project Stricture

• Cost and Revenue Planning

• Dates Scheduling

• Budget approval

• Cost Distribution

!!

!!

EfficientProject

Management

Execution




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Procurement, Time SheetsInvoicing, BillingProject Dates SchedulingCost & Revenue PlanningProject Builder


Planningand

Execution


Progress Tracking

Reportingand

Analysis

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Create

Projects



Project Structures: WBS hierarchy only (no networks)

Option 1: WBS (no networks)

WBS represent project

organizational structure:•

Phases

•

Types

•

Project Activity

Example:• Design, Land Acquisition,

• Construction packages,

•

Testing and Commissioning

WBS used•

Groupingplanning

• Form (sustructure

• Cost plan

• Budget a

• Dates Sc

• Cost Collmaterials

• Cost Fore

•

Reportin

Construction Project

Construction

Building A1

Equipment Installation

C Pl WBS l



Cost Plan on WBS elements

Capital Project

Construction

Sub-Station

Manual Cost Planning on WBS elements:• Labour rates (di" erent types)

•

Materials

•

Sub-Contracted Services• Plants & Equipment

•

Overheads

Labour

Materials

Subcontract

Plant

Overheads

In this scenario WBS elements are used for•

Cost Planning

•

Cost Forecasting

• Dates scheduling

•

Cost collection (engineering, project managemen

For manual cost planning we recommend using Easy Cost Planning on WBS e

P j t WBS l t l ( ti 1)



Project: WBS elements only (option 1)

• Create project structure in SAP PS u

• WBS structure (example) can be muyour speci!c coding rules

• WBS represents packages and sub-pconstruction project

P j t St t WBS d N t k A ti iti



Project Structures: WBS and Network Activities

Construction

Building A1

Option 2: WBS & Networks

Network Activities RepresentProject tasks

Example: engineering drawings,earth moving, equipment installationetc.

WBS use

• Groupreporti

• Cost pl

• Budge

Network

• Detaile

• Dates

• Cost Co

materiaservice

• Resour

• Cost Fo

Construction ProjectWBS represent projectorganizational structure:• Phases

•

Types

• Project Activity

Project: WBS elements and Network Activities (option 2)



Project: WBS elements and Network Activities (option 2)

• WBS structure represestructure and its phase

• Network activities reprwith relationships





!!

!!

EfficientProject

Management

Execution




•

Create Project Stricture

• Cost and Revenue Planning

• Dates Scheduling

• Budget approval

• Cost Distribution

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Procurement, Time SheetsInvoicing, BillingProject Dates SchedulingCost & Revenue PlanningProject Builder


Planningand

Execution


Progress Tracking

Reportingand

Analysis

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Cost

Planning

Project Builder (SAP standard transaction CJ20N)




Easy Cost Planning

• Here is an example on how Proformed by using Easy Cost PlanStandard)

• Easy Cost Plan can be automatexternal estimating system





Select Costing Version

• Cost Estimation is saved in costing ver

• Multiple Costing versions can be creat

• In this example version N01 is used to

Easy Cost Planning in details



Easy Cost Planning in details

Easy Cost Planning allows you to plan multiple resources o( or Network Activity):

• Internal labour types

•

external services

• Material

• plant etc.

Easy Cost Planning using Planning Forms



Easy Cost Planning using Planning Forms

• You can use pre-de

estimate costs usin

• Costing lines (belowautomatically

Easy Cost Planning using Services as BOQ



Easy Cost Planning using Services as BOQ

Plan sub-contracted package on WBS element using serv

These lines (bill of quantities) will be included in purchase

Plan Revenue using Sales and Project Integration



Plan Revenue using Sales and Project Integration

Con

SalesOrder

• In this example revenue plan created from Sales Orderbilling plan

•

The billing plan can be created from project milestones

Cost and Revenue Planning options



Cost and Revenue Planning options

! In our example we planned costs using Easy Cost Planning and Planned ReveOrder – Project System integration

! You can Plan Costs in PS using other functions:

• Network planning (if you use networks)

• Cost Element Planning (CJ42, CJR2)

• Revenue Planning (CJ40)

• New planning functions based on WebDynpro available in enhp6

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Procurement, Time Sheets

Invoicing, BillingProject Dates SchedulingCost & Revenue PlanningProject Builder


Planningand

Execution


Progress Tracking

Reportingand

Analysis

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Scheduling

Schedule Project Dates using PS Planning Board or MSP



Sc edu e oject ates us g S a g oa d o S

OpenPS Microsoft P

(SAP standinterface be

PS and M

• Use SAP Project Planning Board to schedule project date

• Detailed schedule can also be created in MS Project and using standard (free) interface OPENPS4MSP

New Gantt Chart isavailable as of ECC 6.0

enhp6

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Invoicing, Billing



Planningand

Execution


Progress Tracking

Reportingand

Analysis

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CostDistribution

Project Manager Workbench: KPI view



j g

Cost and Revenue Plan by period

Current Budget = Estimate + Variations + Adjustments + Cont




Estimated At Completion = Actual Costs + Commitments + Cost To Complet




• Plan Revenue = Original Revenue + Revenue Variations

• Current Pro!t = Plan Revenue – Estimated At Completi




Cost information is broken by WBS, Value Category and Resource Types




You can choose to view costs aggregated and grouped by Value Categoryand Resource Types for selected WBS element

Noveco Project Manager Workbench can “turn o" ” cost elements from the view. This feature enables cost element frebe important for companies that created too many cost elements for the same type of work. Noveco will make sure thcost elements that belong to the same Value Category and Resource are presented as one line with summarized costi

Project Manager Workbench: Value Category view



Cost grouped by Value Categories and Resources and broken

Project Manager Workbench: Value Category by Period



Project Manager Workbench: Plan by Period



Distribute LABOUR cost




Distribute MATERIAL cost

Novecofunctiondi" erenindepen




Distribute SUBCONTRACT cost

In this WOrder t

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Invoicing, Billing



Planningand

Execution


Progress Tracking

Reportingand

Analysis

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Post ActuCostsand

PurchasiCommitm




!!

!!

EfficientProject

Management

Execution


!

Reporting! Analysis! Settlement

!

Estimating! Planning! Budgeting

•

Procurement

• Time Sheets

• Forecast update and KPI Monitoring

• Progress assessment

• Variations and issues

Project Actual Costs #ow



Time

Ex

oth

MaterialConsumption

from stock

Sub-ContractedServices

Equipment &MaterialsDirect

Project

Construction

Building A1

P ! T k (R l A l i )

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Invoicing, Billing



Planningand

Execution


Progress Tracking

Reportingand

Analysis

7 2&+8%/- 6("RecalculateForecasts




!!

!!

EfficientProject

Management

Execution


!


!


•

Procurement

• Time Sheets




Project Manager Workbench: Auto-Recalculate Forecast



• We posted Actual Costs and raised Purchasing Commit

• System automatically reduced remaining Costs To Com

• Estimated Cost At Completion did not change = Actuals

Project Manager Workbench: Recalculate Forecast automatica



•

Review costi

•

Review Purc

Project Manager Workbench: Recalculate Forecast automatica



Actual Cost of Labour posted in February, CostTo Complete reduced accordingly

Project Manager Workbench: automatic Commitment distribu



•

Purchareducescenar

• Commdistribpattern

Cost To• You ca

Project Manager Workbench: Purchasing Commitments



• View PWBS

•

View P

•

You cathat sc




•

Switch to Ch

•

Change CosEstimated A

• System reca

Completion




•

Budget De!cit = Cat Completion

• Exceptions highligBudget di" ers fro

• You can de!ne toland “red” icons

Project Manager Workbench: Review KPIs



Since EAC has changechanged as well

Project Manager Workbench: S-Curves






!!

!!

EfficientProject

Management

Execution


!


!


•

Procurement

• Time Sheets




Review Project Progress



• You can reviewell Earned V

Project Actual Progress



•

You can change Actual Progres

•

System will keep Calculated anProgress separately


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Planningand

Execution


Progress Tracking

Reportingand

Analysis

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V




!!

!!

EfficientProject

Management

Execution


!


!


•

Procurement

• Time Sheets




Project Variation

RevenuVariation a"ect on project



Revenu

Costing items

Variation a" ect on project

Project Review: KPIs including Variation



Current Budget = Original Estimate +

Plan Revenue = Original Revenue + R

Project Variation in details



•

Variation List

•

Variation history


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Planningand

Execution


Progress Tracking

Reportingand

Analysis

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ProjectReporting




•

Project Reporting

• Portfolio and Program Reporting

• Analysis

• Long Term planning and forecasting

!!

!!

EfficientProject

Management

Execution


!


!


Classic SAP Hierarchy Report



•

All Financial and Progress data is saved in SAP ECC

•

No interfaces and no custom tables are used by Noveco

Project Manager Portal









• Project Financial history is recorded

• You review project Budget, Forecast, Pro!t insince proejct was approved




•

All this information can be extracted reporting

• SAP standard extractors will be usedrequired)




•

Multiple projects can be reported via

• Project Manager can select projects tand monitor their progress

Noveco System Architecture



"

No middleware (B

"

No interfaces

"

No custom tables

"

Always real-time

"

Rich functionality

" Automatic foreca

"

Simple and intuit

"

Minimum trainin

"

Quick implement

a t e g i c

n n i n g

System Landscape including NovecoProgram PortfolioPlanning

Company StrategyPlanning



E x e c u t i o n

Transactional System

Noveco

M o n i t o r i n g ,

F o r e c a s t i n g ,

V a r i a t i o n s ,

P r o g r e s s

! Project Manager ! Automatic Foreca! Manual adjustme! Progress Analysis!

Exception and dr!

Integrated variati! Forecast history

A n a l y s i s ,

R e s o

u r c i n g

R e p o r t s

S t r a

P l a n Planning Planning

Result AnalysisPS Information

SystemResourcePlanning

EstimationBudget values

Time Sheets, InvoicesActual Costs

Sales OrdersRevenue

Purchase Orders,Commitments

!

Project Manager Workbench provides one central place to review KPIsf t t k d d t t l ti l d d ill d

ePM Project Cost Forecasting, Progress and Variation Manage



forecasts, track and update progress, execute analytical and drill down

!

Complete Cost and Work To Complete management: Automatic reductManual adjustment

!

Instant Integration with ECC transactions: PO, time sheets, invoices etc! Forecasting results are immediately available for Result Analysis, Progr

PS Reports and BI (no custom interfaces needed to native SAP reports)

!

Period Sensitive Forecasts: designed for month end forecasts in live trasystem

!

Saves project forecast history w/o need to perform version copy by the!

Project Costs Forecasts integrated with PM/CS and PP orders

! Integrates Project Variations into cost forecasting and budgeting

! No modi!cations to SAP standard core applications. No “z-tables” to kecosts, all data read/written from/to SAP standard database.

! Connects upstream (estimating, procurement, timesheets) and downstream (mo

resource allocation analytical reports) activities of project management lifecycle

Business Value of Integrated Project Forecasting in SAP



resource allocation, analytical reports) activities of project management lifecycle

! Closes the loop between execution and analysis processes providing 360 degree

information

! Replaces spreadsheets and other third party tools with centralized SAP database

! Reduces amount of e" ort required to produce project forecasts and analytical re

! Reduces number of interdependent systems and interfaces needed; reduce costmaintenance 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 e$ciency by relieving Project Managers froroutine 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

SAP Customers running Noveco ePMRawson Group

h



– rawsonhomes.net.au

– Industry: Residential construction

Powercor/CityPower

–

powercor.com.au –

Industry: Utility, Construction

Sedgman

–

sedgman.com

–

Industry: Mining Construction

TRILITY

–

trility.com.au

– Industry: Utility, Construction

Hydro Tasmania

– www.hydro.com.au

– Industry: Utility, Construction

Integrated Project Management



Costs

Forecasting

Integrated ProjectManagement in SAP

PS FI

HR

COSDPM

MM Progress

Analysis

Variation

Management



For more information visit Noveco Systems onwww.novecosystems.com

Documents

Noveco SAP Solutions for ECO Presentation