PLM200

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PLM200

Business Processes in Project

Management

Date Training Center Instructors Education Website

Participant Handbook

Course Version: 2006 Q2 Course Duration: 3 Day(s) Material Number: 50077984

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No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. Additionally this publication and its contents are provided solely for your use, this publication and its contents may not be rented, transferred or sold without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

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About This Handbook

This handbook is intended to complement the instructor-led presentation of this course, and serve as a source of reference. It is not suitable for self-study.

Typographic Conventions

American English is the standard used in this handbook. The following typographic conventions are also used.

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Also used for cross-references to other documentation both internal (in this documentation) and external (in other locations, such as SAPNet).

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you enter in the system exactly as they appear in the documentation.

<Example text> Variable user entry. Pointed brackets indicate that you

replace these words and characters with appropriate entries.

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Icons in Body Text

The following icons are used in this handbook.

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For more information, tips, or background Note or further explanation of previous point Exception or caution

Procedures

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Course Overview

SAP Project System supports comprehensive functions for planning, controlling, and organizing all the activities carried out during the course of a project. It helps you manage your project structures, dates, costs, and resources throughout the entire project lifecycle. Course PLM200 provides you with an overview of the functions in SAP Project System.

Target Audience

This course is intended for the following audiences: • Project managers

• Project team members • Consultants

Course Prerequisites

Required Knowledge

• Knowledge of navigating SAP systems • Basic knowledge of project management

Recommended Knowledge

• Completion of another SAP course, such as AC040 on business processes in Management Accounting, or SCM500 on external procurement processes

Course Goals

This course will prepare you to:

• Discuss the basic functions of SAP Project System for structuring, planning, executing, and monitoring projects

Course Objectives

After completing this course, you will be able to:

• Use work breakdown structures, activities, and networks to structure projects • Discuss aspects of planning dates, resources, materials, costs, and revenues

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• Name the functions used for budgeting

• Explain aspects and processes used for executing projects

• Explain various period-end closing activities in Project Management • Use reporting options for monitoring project data

SAP Software Component Information

The information in this course pertains to the following SAP Software Components and releases:

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Unit 1

Introduction

Unit Overview

This unit describes the general characteristics and structures of projects. It introduces two business examples that will be used throughout the course to explain and demonstrate the functions of SAP Project System (SAP PS).

Unit Objectives

After completing this unit, you will be able to: • Explain the characteristics of projects

• Differentiate between the main tasks of SAP PS, cProjects, and SAP xApp Resource and Portfolio Management (SAP xRPM)

• Name the two structures used in SAP PS

• Describe the project examples used in this course

Unit Contents

Lesson: Introduction ... 2 Exercise 1: Preparations (to be carried out by instructor)... 11

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Lesson: Introduction

Lesson Overview

This lesson gives you a brief overview of the characteristics and phases typical to a project, and of the SAP tools that are available specially for program and project management. It introduces networks and work breakdown structures, which are used in SAP Project System (SAP PS) for mapping projects. Both of these structures, as well as basic functions and processes of SAP PS, are described in this course using two sample projects. The business examples for these two projects are introduced in this lesson.

Lesson Objectives

After completing this lesson, you will be able to: • Explain the characteristics of projects

Business Example

Two typical projects are used in this course to illustrate the functions of SAP PS. “Elevator E-99##” is a typical investment project and is an example of a project that is mapped using only a work breakdown structure. “Turbine System T-200##” is a sales project and is used to explain activities and networks. More information on these two example projects is provided in this lesson.

Introduction

Both large-scale projects, such as constructing a factory, and smaller projects, such as organizing a trade fair, require the numerous activities involved to be planned, controlled and monitored precisely, systematically, and efficiently. Professional project management is becoming an increasingly important factor for boosting the competitive strength of companies, and not just for those whose success is based on project-oriented business processes. A “project” is an undertaking that a company carries out, characterized by the uniqueness of its general conditions and constraints. These conditions include the objectives of the project, the time frame for executing it, as well as financial and capacity-related restrictions. Projects usually involve cross-departmental and highly complex business processes, the results of which must

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often yield an extremely high level of quality. Projects are often cost-intensive, time-consuming, and of strategic importance; as a result, they can also represent a risk for the company.

Figure 1: Project Characteristics

The term “project” is not specific to a particular industry sector and can involve various aspects such as research and development projects, investment measures, make-to-order production, and more extensive maintenance tasks. Projects are normally given an appropriate structure to allow dates, resources, costs, budgets and payments to be planned, controlled, and monitored transparently. Hierarchies are often used for evaluating aggregated data, allocating budgets, and defining responsibilities. Project-specific organizational forms are usually created for projects that are integrated in an enterprise's business processes. These organizational forms are in a position central to the user departments involved so that all the tasks that occur when the project is executed can be properly controlled.

SAP Project System

SAP PS is a project management tool that assists you throughout all the phases of your project. Through the high level of integration between SAP PS and other SAP functions, such as Logistics, Accounting, and Human Resources, SAP PS ensures that

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the necessary business processes are handled quickly and efficiently. SAP PS provides structures that allow you to map projects flexibly and with the appropriate structures. Using suitable tools and reports in SAP PS, you can plan and monitor dates, costs, revenues, budgets, resources, materials, and so on, for these structures.

SAP PS is a component of both mySAP Enterprise Resource Planning (mySAP ERP) and mySAP Product Lifecycle Management (mySAP PLM).

In addition to SAP PS, additional SAP functions for achieving efficient program and project management at a company are provided with Collaboration Projects (cProjects) and SAP xApp Resource and Portfolio Management (SAP xRPM). cProjectscan be used independently of SAP PS, but also in combination with SAP PS, for efficient project management. cProjects is a web-based, flexible, and easy-to-learn project management tool tailored to suit the requirements of development, consulting, and IT projects. In addition to the functions offered by cProjects for structuring, planning, and implementing projects, different integration scenarios such as Collaboration Folders (cFolders) or SAP systems can also be used.

SAP xRPMis used for the strategic management of entire project portfolios. To this end, data from different project management tools, for example Microsoft Project (Client and Server), cProjects, or SAP PS can be consolidated with controlling data from mySAP ERP Financials and monitored uniformly with special dashboards and SAP Business Information Warehouse analysis functions in an Enterprise Portal. The merging of data from different project management tools in SAP xRPM facilitates uniform, system-wide resource planning of all projects.

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Figure 2: Program Management and Project Management

The two structures provided by SAP PS for mapping projects are work breakdown structures and networks. You use a work breakdown structure to organize a project in the form of a hierarchy, and so map the structure of the project. Networks, on the other hand, are used to represent the individual project activities together with their temporal and logical relationships, in other words, the flow of the project. You can map a project using just one work breakdown structure or one network. However, you can also illustrate a project using a work breakdown structure and one or more networks in order to use the characteristics of both structures together. Work breakdown structures consist of work breakdown structure elements (WBS elements) that are arranged at various levels to produce a hierarchical model of the project activities to be carried out. Each individual WBS element can act as a controlling object in which you can plan and monitor costs, revenues, payments, budgets, and dates. A network represents the flow of a project. The individual tasks in the project are mapped as activities in a network. The temporal and logical dependencies between the various activities can be represented as links, also known as relationships. Activities form the operative basis for planning and controlling dates, costs, and resources (personnel, machinery, materials). When activities are assigned to WBS elements, the dates and costs defined in the individual activities are totaled up (aggregated) at the WBS level, and can be evaluated. Activity funds already assigned are checked against the budgets of the WBS elements.

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Figure 3: Structures

Two example projects explain how you can use the two structures, work breakdown structure and network, when you are managing projects with SAP PS. The various functions they support are also described.

Business Examples

The project with the ID E-99## (## stands for the number of the group a course participant belongs to) is an example of an investment or cost project that can be mapped with just a work breakdown structure, that is, without networks or activities. You use the work breakdown structure in this business example to plan and monitor the project for constructing an elevator in your company. Cost-related aspects are particularly important while the project is being executed.

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Figure 4: Investment Project E-99##

The following steps are carried out in this course for project E-99##: 1. Create a suitable work breakdown structure using the Project Builder

2. Plan basic dates manually for WBS elements using the project planning board 3. Plan costs manually for the WBS elements using Easy Cost Planning

4. Budget WBS elements

5. Enter actual dates during the project execution phase

6. Assign various documents for WBS elements using Execution Services for updating commitment costs and actual costs

7. Calculate overhead costs and carry out settlement to assets under construction in Asset Accounting using the Schedule Manager

Project Builder, project planning board, Easy Cost Planning, Execution Services, and Schedule Manager are tools in the SAP system that are used here to perform the various steps. In addition to these tools, this course introduces you to a range of reports and information systems that you can use to evaluate the project data during the various project phases.

Project T-200## is used in this course as an example of a sales project that is mapped in the SAP system with a work breakdown structure and a network. The starting point for creating and executing the project in this business example is a customer inquiry and, later on, a sales order for constructing a turbine system. In addition to Controlling-related aspects for developing and constructing the turbine system, it is also important to consider a number of logistical requirements (on-time material procurement, availability of capacity). The network acts as a quantity structure for planning dates, costs, resources, and material requirements automatically.

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The following steps are carried out in this course for project T-200##: 1. Create a customer inquiry in Sales and Distribution

2. Create a project (work breakdown structure and network) using standard structures

3. Plan dates using scheduling 4. Plan resources

• Plan capacity requirements

• Distribute work among the workforce • Plan the external procurement of services 5. Plan materials by transferring bills of material 6. Plan costs using network costing

7. Create sales pricing data

• Create a quotation based on a project cost plan • Plan revenues for the project

8. Create a sales order with a billing plan in Sales and Distribution

9. Enter confirmations (in particular, using the cross-application time sheet: CATS) 10. Purchase materials and services

11. Document variances using claims 12. Post revenues using milestone billing

13. Calculate overhead costs, carry out a results analysis and settle the results analysis values to the profitability segment

In this business example too, you will use suitable reports to track planned and actual data (dates, resources, costs, revenues, and payments) that is written to the network activities. By assigning the activities to WBS elements, you can aggregate activity data at work breakdown structure level and evaluate it.

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Figure 6: Phases in a Project

A high degree of precision is required when planning and coordinating large and complex projects. When planning the flow of a project, you will schedule deadlines and dates, make resources available, and assign funds. SAP PS gives you the support you need throughout all phases of the project.

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Exercise 1: Preparations (to be carried out

by instructor)

Exercise Objectives

After completing this exercise, you will be able to:

• Make the system settings required for the course (instructor only)

Business Example

Original IDES data is used for structuring, planning and executing the example projects. You also need to implement a number of additional individual settings in the SAP system.

Task 1: Preparations (to be carried out by instructor)

Check the parameters in the user master data and the settings in the SAP system that are required for performing the demonstrations and exercises.

1. Check the user master records for the course participants. They should contain suitable parameters and fixed values.

2. In Customizing for Project System, set the Adjust Basic Dates indicator in the

130000000001 IDES Scheduling Forward profile for WBS scheduling.

3. PS Cash Management must be activated in company code 1000 to ensure that the payment data is updated. Check this setting in Customizing for Project System. 4. To carry out period-end closing using the Schedule Manager, you have to

maintain a prefix number for the SAP system (transaction OOW4).

Check workflow Customizing using transaction SWU3, and if necessary perform automatic workflow Customizing.

In the TVARV table, you have to enter suitable values for parameters PS_PERIOD and PS_YEAR (transaction SM31). Make the appropriate settings in the system.

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Task 2: Language Settings (to be carried out by

instructor; only for courses not held in German)

German is set as the original language for master data in the IDES systems. For

courses held in other languages, the master data short texts need to be switched to those languages.

Hint: The example shows the texts being converted to English (EN). No

changes need to be made for courses held in German.

1. Set the short texts for standard networks and standard projects to EN using transaction YILA. Use text pools ZT-TRAIN-PS-01, ZT-TRAIN-PS-02 and ZT-TRAINING-PS-03.

2. Set the language for vendor 1000 to the required language (in our example, English). Use transaction XK02 to change the vendor data.

3. Set the language for customer 1600 to the required language (in our example, English). Use transaction XD02 to change the customer data.

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Solution 1: Preparations (to be carried out

by instructor)

Task 1: Preparations (to be carried out by instructor)

Check the parameters in the user master data and the settings in the SAP system that are required for performing the demonstrations and exercises.

1. Check the user master records for the course participants. They should contain suitable parameters and fixed values.

a) Check the parameters for the participants using transaction SU01. The following parameters should be maintained:

Parameter Value Text

BUK 1000 Company Code

CAC 1000 Controlling Area PDB 130000000000 Profile for logical

database PSJ PFL YIDES_130000 Profile for project

information system

WRK 1300 Plant

b) Set suitable fixed values for: • Decimal places

• Date format

• Time zone

2. In Customizing for Project System, set the Adjust Basic Dates indicator in the

130000000001 IDES Scheduling Forward profile for WBS scheduling.

a) In Customizing for Project System, choose SAP Customizing

Implementation Guide → Project System → Dates → Date Planning in WBS → Define Parameters for WBS Scheduling . Then display the details

of the 130000000001 IDES Scheduling Forward profile. Set the Adjust

Basic Dates indicator and save your changes.

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3. PS Cash Management must be activated in company code 1000 to ensure that the payment data is updated. Check this setting in Customizing for Project System. a) In Customizing for Project System, choose SAP Customizing

Implementation Guide → Project System → Payments → Activate Project Cash Management in Company Code. The following setting is required:

CoCd FMA Actv.

1000 1000 x

4. To carry out period-end closing using the Schedule Manager, you have to maintain a prefix number for the SAP system (transaction OOW4).

Check workflow Customizing using transaction SWU3, and if necessary perform automatic workflow Customizing.

In the TVARV table, you have to enter suitable values for parameters PS_PERIOD and PS_YEAR (transaction SM31). Make the appropriate settings in the system. a) Call up transaction OOW4. Check whether the table contains the training

system and your client. If necessary, enter a new line with any number you like (###, for example 865) and your system and client number. Save the data as a local object.

b) Check the standard settings for the workflow. To do so, call up transaction SWU3. You may need to perform automatic Customizing.

c) Call up transaction SM31 for maintaining tables. Enter table TVARV on the selection screen. Call up the screen for maintaining the data. Change the parameter values in accordance with the following table and save your changes.

Name Value

PS_PERIOD Current month

PS_YEAR Current year

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Task 2: Language Settings (to be carried out by

instructor; only for courses not held in German)

German is set as the original language for master data in the IDES systems. For

courses held in other languages, the master data short texts need to be switched to those languages.

Hint: The example shows the texts being converted to English (EN). No

changes need to be made for courses held in German.

1. Set the short texts for standard networks and standard projects to EN using transaction YILA. Use text pools ZT-TRAIN-PS-01, ZT-TRAIN-PS-02 and ZT-TRAINING-PS-03.

a) Call up transaction YILA. If necessary, confirm the dialog box with the message on the language switch. Enter the following data in the lower section of the screen (Selection: Textpool):

Field Value

Target Language EN

Text Pool ZT-TRAIN-PS-01

Select Update Short Texts.

Update the texts in text pools ZT-TRAIN-PS-02 and ZT-TRAINING-PS-03 in the same way.

2. Set the language for vendor 1000 to the required language (in our example, English). Use transaction XK02 to change the vendor data.

a) Call up transaction XK02. Enter the following data on the initial screen:

Field Value

Vendor 1000

Company Code 1000

Purchasing Organization 1000

Address x

Confirm your entries with Enter. In the Language field, choose English

and save your changes.

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3. Set the language for customer 1600 to the required language (in our example, English). Use transaction XD02 to change the customer data.

a) Call up transaction XD02. Enter the following data on the initial screen:

Field Value Customer 1600 Company Code 1000 Sales organization 1000 Distribution channel 10 Division 00

Confirm your entries with Enter. On the Address tab page, go to the Language field, choose English, and save your changes.

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Lesson Summary

You should now be able to:

• Explain the characteristics of projects

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Unit Summary

• Explain the characteristics of projects

Related Information

• For more information about mySAP PLM, see the SAP Service Marketplace at service.sap.com/plm.

• For information about mySAP ERP, see the SAP Service Marketplace at service.sap.com/erp.

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Unit 2

Project Structures

Unit Overview

The first step in planning a project involves creating the structural framework for all the necessary activities and processes and representing their actual structures and flows. SAP Project System provides two basic elements for mapping the structures of projects, namely work breakdown structures and networks. These structures form the basis for all further steps involved in planning and executing the project. This unit describes how projects are structured using work breakdown structures and networks.

Unit Objectives

After completing this unit, you will be able to:

• Describe the tasks and structure of work breakdown structures

• Use the Project Builder and hierarchy graphic to maintain work breakdown structures

• Describe the tasks and structure of networks

• Use the Project Builder and network graphic to maintain networks • Assign PS texts, documents, and milestones

• Use the mass change function • Name the functions of Open PS

Unit Contents

Lesson: Work Breakdown Structure... 22 Exercise 2: Work Breakdown Structure ... 29 Lesson: Activities and Networks ... 38 Exercise 3: Activities and Networks ... 43 Lesson: Milestones, Documents, and Tools... 52 Exercise 4: Milestones, Documents, and Mass Change ... 57

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Lesson: Work Breakdown Structure

Lesson Overview

Project E-99## is used as an example in this lesson to describe the structure and tasks of work breakdown structures. It also introduces you to the Project Builder, a tool that is ideally suited to structuring projects.

Lesson Objectives

After completing this lesson, you will be able to:

Business Example

You need a suitable work breakdown structure in order to plan and then execute investment project “Elevator E-99##” in your company. You create this work breakdown structure using the Project Builder.

Structure and Function of Work Breakdown Structures

A work breakdown structure is a model of a project, and shows the project activities to be carried out as a hierarchical structure. The various work packages in the project are described in individual work breakdown structure elements (WBS elements). You can further divide these elements at various levels until you reach the level of detail you require. The WBS elements are the objects that are actually used for planning and updating actual data. The focus here is on planning, controlling, and analyzing costs, basic dates, and budgets. Because the work breakdown structure is structured hierarchically, the data can be summarized and displayed for the corresponding higher-level WBS elements. When you create a work breakdown structure, you also have to create a project definition. The project definition is a framework for all the objects created within a project. The project definition contains data that affects the entire project (for example, start and finish dates, organizational data, and planning parameters). It contains default values that can be passed on to the WBS elements. The controlling area, which you specify when you create a project definition, is unique for the entire project. You specify it once you have created the project. You define organizational units such as company code, business area, profit center, and plant for each WBS element. You can use the Project Builder or the project planning board to create and change the project definition and work breakdown structure. You can edit projects in tabular or graphical mode.

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Figure 7: Structure of Project E-99##

The work breakdown structure (WBS) forms the basis for all subsequent planning tasks in the project. The focus here is on planning, analyzing, describing, controlling, and monitoring costs, basic dates, and the budget. Costs, dates, and payments are often planned using activities that are assigned to WBS elements. The “Tasks of the Work Breakdown Structure” figure shows the various functions that a work breakdown structure can perform during a project.

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Figure 8: Tasks of the Work Breakdown Structure

Creating a Work Breakdown Structure

There are various ways of creating and editing a work breakdown structure. The Project Builder is a clearly-structured tool in SAP Project System (SAP PS) that is extremely user-friendly and allows projects to be edited quickly and efficiently. You can use the Project Builder to maintain any object in SAP PS, except for the assignment of production resources and tools (PRT). Context-sensitive menus, Drag&Drop, and the option of defining your own worklist and set of templates help you edit your projects more easily. The Project Builder consists of a window divided into three areas: the structure overview is in the top left of the window, the worklist in the bottom left, and on the right is an area of displaying and editing data. The structure contains the selected project data of the current project with its hierarchical relationships. You use the worklist to store frequently-used projects, networks, and WBS elements on a user-specific basis. The worklist always displays a list of the last five projects edited. The templates are used as a set of proposals while a project is being edited from which you can incorporate new elements in the project and integrate copy templates. The work area displays a detail view of the selected object in the structure and allows you to access the overviews of lower-level objects directly. You

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use the work area to edit the individual project elements. You can navigate between the various views (detail views and overviews), graphics, and project planning board quickly and efficiently in the Project Builder in order to maintain the structures.

Figure 9: Project Builder

You use operative indicators to define the characteristics of a WBS element, and to specify what tasks the WBS element will assume during project execution:

• WBS elements for which you want to plan costs are flagged as planning elements. • WBS elements to which you want to post actual costs are flagged as account

assignment elements.

• WBS elements where you want to plan or post revenues are flagged as billing elements.

Each WBS element is assigned its own company code. Since different company codes can be assigned to the various WBS elements in a project, this means that it is possible to process projects across companies. You can assign profit centers, business areas, persons responsible, partners (internal and external), and cost centers responsible for the project to WBS elements. These assignments are used mainly for reporting purposes (see unit entitled “Reporting”). For example, this data allows you to analyze a large number of projects together by business area and person responsible using project summarization. You can also analyze the project key figures of several projects in your cost center hierarchy or profit center hierarchy. When documents are assigned, the business area and profit center are derived from the corresponding WBS element. This information can be used later for reporting by business area or in

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Profit Center Accounting. You can generate cost-center-based settlement rules for costs projects. You can specify in the system that an e-mail should be sent to the person responsible for the project entered in a WBS element if the budget is exceeded. You can also use SAP Partner Processing to assign customers, vendors, personnel numbers, system users, work centers, shipping points, HR organizational units, and other objects to WBS elements. When you do so, the system conducts checks against existing SAP master data.

Figure 10: Operative Indicators and Organizational Data

The “Maintenance Options” diagram shows different ways of creating and extending work breakdown structures. You can use the Project Builder to create and change WBS elements. You can do this on detail screens or in the list of WBS elements. You can use the hierarchy graphic to change WBS elements (by double-clicking them). You can also create new WBS elements, and insert these in the hierarchy (connect mode). In addition to maintaining projects manually in the Project Builder or using the hierarchy graphic (1, 2), you can also use existing project structures or standard projects as templates to copy from. When you create a new WBS, you can use an existing WBS, a section of the project hierarchy, or a standard WBS as a template to copy from. You can also incorporate WBS elements from other projects or from a

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standard WBS in an existing WBS (3, 4). Other transactions are available in addition to the Project Builder, for example the project planning board for creating and editing a WBS.

Figure 11: Maintenance Options

You can analyze and edit the structure of the WBS in the hierarchy graphic. For example, you can create new WBS elements or cut and paste subtrees from the hierarchy. You can call up the hierarchy graphic in various functions of Project System (for example, in the Project Builder or project planning board, in cost planning, scheduling, budget management, or in the information system).

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Exercise 2: Work Breakdown Structure

Exercise Objectives

• Create and edit work breakdown structures using the Project Builder

Business Example

You are planning the construction of an elevator for your company. In order to plan and then execute and monitor this investment project, you create a suitable work breakdown structure using the Project Builder.

Hint: In the following exercises, ## indicates your group number (## = 01,

02, and so on).

Task: Project E-99##

Create a project E-99## in the Project Builder. Get to know the various ways of creating and editing work breakdown structures in the Project Builder.

1. In the Project System menu, start the Project Builder transaction and set the necessary options so that you can see all 99 hierarchy levels of a project. Create a project with the identification E-99## and description Elevator

Gr##in the Project Builder. Use Investment Projects as the project profile. In

the basic data for the project definition, enter the number ## for the person responsible.

Use your right mouse button in the structure header to change the order in which

Identification and Name are displayed. Save your project.

2. Open project E-99## Elevator Gr## in the Project Builder. So far, you have only created a project definition. In the WBS Element Overview, create WBS elements with the identifications (and descriptions) E-99## (Elevator

Gr##), E-99##-1 (Engineering), E-99##-1-1 (Electrical Engineering) and E-99##-1-2 (Mechanical Engineering). To

avoid making any mistakes when entering your data, use the @ entry aid. The account assignment element operative indicator (Acct column) is to be set for all WBS elements. Flag WBS elements E-99## and E-99##-1 as planning elements as well (Plan column).

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3. Create further WBS elements for your project E-99## in the Project Builder using a template to copy from. In this way, you can put the experience gained from past projects to use in your current project. In the structure underneath

WBS element E-99##, insert further WBS elements. Use the context menu in

the structure (right-hand mouse button) to do this and not the template area. Use the subtree E-1001-2 of a standard work breakdown structure to copy from. WBS element E-1001-2 (root) is also to be inserted underneath WBS element E-99## and to the right of WBS elements that have already been assigned. Make sure that you do not insert any activities.

Next derive the hierarchical structure of your work breakdown structure from the numbers of the WBS elements.

Finally, adjust the data of the new WBS elements to the requirements of your current project. To do this, assign the person responsible ##, project type

Capital Investment, and investment profile 1000 to all new WBS

elements.

4. Use Drag&Drop to create a new WBS element E-99##-3 with the name

Assemblyunderneath WBS element E-99## Elevator Gr##. Set the operative

indicators of the new WBS element in such a way that you can plan costs and post them to this WBS element later on.

Analyze the hierarchical structure and operative indicators of the WBS elements in your project in the hierarchy graphic. If necessary, set the operative indicators in such a way that only the WBS elements at levels 1 and 2 allow costs to be planned.

In the hierarchy graphic, create a new WBS element with the identification

E-99##-4and the name Acceptance. Assign this WBS element underneath

WBS element E-99## in connect mode. In the hierarchy graphic, set the

Planning Element operative indicator for the new WBS element.

Then save your project.

5. Optional: Answer the following questions on project E-99##:

Which controlling area is project E-99## assigned to?

How many levels make up the work breakdown structure of project E-99##? For which WBS elements can you plan revenues?

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Solution 2: Work Breakdown Structure

Task: Project E-99##

Create a project E-99## in the Project Builder. Get to know the various ways of creating and editing work breakdown structures in the Project Builder.

1. In the Project System menu, start the Project Builder transaction and set the necessary options so that you can see all 99 hierarchy levels of a project. Create a project with the identification E-99## and description Elevator

Gr##in the Project Builder. Use Investment Projects as the project profile. In

the basic data for the project definition, enter the number ## for the person responsible.

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Use your right mouse button in the structure header to change the order in which

Identification and Name are displayed. Save your project.

a) In the SAP menu, go to the Project System folder and open the Project Builder. Choose SAP Menu → Accounting → Project System → Project

→ Project Builder.

If you are opening the Project Builder for the first time, two dialog boxes appear. Set the Skip this in future indicator in the first dialog box and confirm this with Enter. In the next dialog box for user-specific options,

set the number of hierarchy levels displayed for a project to 99 and confirm this with Enter.

Hint: You can change the user-specific options in the Project

Builder whenever you need to. To do so, choose Settings →

Options in the Project Builder menu bar.

b) To create a project, choose Create and Project. Enter the following data

for the project definition:

Field Name Values

Project Definition E-99##

Text (without caption) Elevator Gr##

Project Profile Investment Projects

Confirm your entries with Enter. The project definition is shown

in the structure.

Position your cursor on the header of the structure. To change the display sequence, rightclick and choose Display Sequence → Identification

-Name.

On the Basic Data tab page of the project definition, enter ## for the person responsible and confirm your entry with Enter.

Save your project.

2. Open project E-99## Elevator Gr## in the Project Builder. So far, you have only created a project definition. In the WBS Element Overview, create WBS elements with the identifications (and descriptions) E-99## (Elevator

Gr##), E-99##-1 (Engineering), E-99##-1-1 (Electrical Engineering) and E-99##-1-2 (Mechanical Engineering). To

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avoid making any mistakes when entering your data, use the @ entry aid. The account assignment element operative indicator (Acct column) is to be set for all WBS elements. Flag WBS elements E-99## and E-99##-1 as planning elements as well (Plan column).

a) You are still in the Project Builder. The project you created earlier is displayed in the worklist under Last Projects Processed. To open your project, double-click project E-99## Elevator Gr##. Switch from the detail data of the project definition to the WBS Element Overview . Enter the following data in the table (to set the operative indicators, scroll to the right in the table):

Level WBS Element Description Plan Acct

1 @ Elevator Gr## x x 1 @1 Engineering x x 1 @11 Electrical Engineering x 1 @12 Mechanical Engineering x

To create the WBS elements, choose Enter. The WBS elements are now

displayed underneath the project definition in the structure.

3. Create further WBS elements for your project E-99## in the Project Builder using a template to copy from. In this way, you can put the experience gained from past projects to use in your current project. In the structure underneath

WBS element E-99##, insert further WBS elements. Use the context menu in

the structure (right-hand mouse button) to do this and not the template area. Use the subtree E-1001-2 of a standard work breakdown structure to copy from. WBS element E-1001-2 (root) is also to be inserted underneath WBS element E-99## and to the right of WBS elements that have already been assigned. Make sure that you do not insert any activities.

Next derive the hierarchical structure of your work breakdown structure from the numbers of the WBS elements.

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Finally, adjust the data of the new WBS elements to the requirements of your current project. To do this, assign the person responsible ##, project type

Capital Investment, and investment profile 1000 to all new WBS

elements.

a) Project E-99## is still open in the Project Builder. Select WBS element (not the project definition) E-99## Elevator Gr## in the structure. To include WBS elements, right-click and choose Include → WBS Elements.

A dialog box then appears. Choose Standard WBS and enter the following data:

Below E-1001-2

With Root x

Right x

Without Activities x!!!

Confirm your entries with Include. A subtree containing WBS elements

for procurement is assigned to WBS element E-99##.

b) To derive the structure from the numbers of the WBS elements, choose

Project → Derive Structure → Execute.

In the structure, select WBS element E-99##-2 Procurement and, on the

detail screen of the WBS element, go to the Basic Data tab page, enter ## as the person responsible, and choose Capital Investment as the project type. Next, on the Control tab page, enter a value of 1000 in the

Investment Profile field. Assign the person responsible ##, project type

Investment Project, and investment profile 1000 to WBS elements

E-99##-2-1, E-99##-2-2, and E-99##-2-3 in the same way.

4. Use Drag&Drop to create a new WBS element E-99##-3 with the name

Assemblyunderneath WBS element E-99## Elevator Gr##. Set the operative

indicators of the new WBS element in such a way that you can plan costs and post them to this WBS element later on.

Analyze the hierarchical structure and operative indicators of the WBS elements in your project in the hierarchy graphic. If necessary, set the operative indicators in such a way that only the WBS elements at levels 1 and 2 allow costs to be planned.

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In the hierarchy graphic, create a new WBS element with the identification

E-99##-4and the name Acceptance. Assign this WBS element underneath

WBS element E-99## in connect mode. In the hierarchy graphic, set the

Planning Element operative indicator for the new WBS element.

Then save your project.

a) Project E-99## is still open in the Project Builder. Use Drag&Drop to drag a WBS Element from the template area (under Individual Objects) to

WBS element E-99## Elevator Gr## at the top of the hierarchy. Enter

the following data on the detail screen of the WBS element:

WBS Element E-99##-3

Text (without caption) Assembly

Planning Element x

Confirm your entries with Enter. The WBS element is displayed

in the structure.

b) To call up the hierarchy graphic, choose Hierarchy Graphic. Since

you do not want to plan costs for level-3 WBS elements E-99##-2-1,

E-99##-2-2 and E-99##-2-3, deselect the Planning Element operative

indicator for these WBS elements. To do this, double-click the Plan field in the hierarchy graphic. The WBS elements are then no longer flagged as planning elements.

To create a new WBS element, choose Create. An input area appears

underneath the display area. Select the WBS element in this input area (click it once). The shape of the cursor changes (box-shaped). Click a free space in the display area. A dialog box appears with the detail screen of the new WBS element. Enter the following data:

WBS Element E-99##-4

Text (without caption) Acceptance

Confirm your entries with Back. The new WBS element is displayed in

the display area at level 1.

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To start connect mode, choose Connect. The shape of the cursor

changes (pencil). Keeping your finger down on the left-hand mouse button, draw a line from E-99## to E-99##-4. To deactivate connect mode, click a free space in the display area.

If you have not yet set the Planning Element operative indicator on the detail screen of WBS element E-99##-4, double-click the appropriate Plan field of the WBS element in the display area. The operative indicator is now set.

To save the changes you have made to your project, choose Back and Save.

5. Optional: Answer the following questions on project E-99##:

Which controlling area is project E-99## assigned to?

How many levels make up the work breakdown structure of project E-99##? For which WBS elements can you plan revenues?

a) To answer the questions, open project E-99## in the Project Builder. To open the project, double-click project E-99## Elevator Gr## in the

worklist.

You specify the controlling area on the Basic Data tab page of the project definition when you create the project. In your project, the value 1000 (CO Europe) is entered in the CO Area field in the project definition. The value was entered as a default value in the project profile.

The work breakdown structure comprises three levels. You can see these in the structure on the left of the Project Builder or in the hierarchy graphic. The number of levels is also indicated in the tabular WBS element overview in the Level column.

Project E-99## is a pure cost project. This means that none of the WBS elements in your project is flagged as a billing element. You cannot, therefore, plan revenues for any WBS element.

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Lesson Summary

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Lesson: Activities and Networks

Lesson Overview

This lesson looks at the structure and function of networks. The tasks performed by the various activities in a network are described using project T-200## as an example.

Lesson Objectives

After completing this lesson, you will be able to: • Describe the tasks and structure of networks

• Use the Project Builder and network graphic to maintain networks

Business Example

A customer inquiry regarding the construction of a turbine system is entered in the Sales & Distribution department of your company. To create a quotation for this inquiry, you create a project called “Turbine System T-200##” using a suitable template to copy from. You then adapt the network to the specific requirements of the project.

Structure and Function of Networks

Networks map the flow of the project. The focus here is on describing, planning, controlling, and analyzing costs, scheduled dates, resources, and material

requirements. The basic elements that go to make up a network include activities and relationships that describe the tasks and temporal dependencies between the various tasks in a project. SAP Project System supports the following activity categories: • Internal processing: for capacities to be staged in your own company

• External processing: for tasks to be assigned externally

• Service activities: for procuring external services

• Costs: for planning additional primary costs

Activities are linked to each other by means of relationships - this results in a causal and temporal activity sequence. In this way, networks form a quantity structure for planning dates (automatically via scheduling), costs (automatically via costing), resources (internal activities and external services), and for planning material requirements (by means of assigned components). You can create activities and maintain the data for them in the Project Builder and project planning board, for example. In the Project Builder, you create activities for WBS elements. This means that the activities are assigned to the WBS elements in question. It also means that

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the planned and actual data for the activities (dates, costs, payment data) can be aggregated at WBS element level. A network always includes a network header that contains the control data and default values for the entire network.

Figure 13: Structure of Project T-200##

You use the activities in the network to plan the labor, capacities, materials, tools, and services you require to carry out various tasks in your project. By assigning milestones to activities, you can document events that are particularly important for the progress of the project and reference their respective dates in billing or invoicing plans, for example. During the project execution phase, commitment and actual costs are updated automatically to the network activities as a result of various business transactions (for example, confirmations, ordering processes, goods issues, incoming invoices). Key functions of networks and activities are shown in the “Tasks of the Network” diagram.

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Figure 14: Tasks of the Network

Creating Networks

The following diagram illustrates the various ways in which networks and activities can be created and edited.

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Figure 15: Maintenance Options

In addition to maintaining data manually and in the network graphic (1, 2), you can also use existing operative structures or standard structures as templates to copy from. When you create activities, you can use a standard network or an existing network as a template to copy from (3). You can also incorporate standard networks in an existing network (4). Using the Project Builder or the project planning board, you can copy a standard project or existing operative project (including all of its activities) to a new project structure (5).

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Figure 16: Network Structure Graphic

All of the functions you need to create or change a network are available in the network graphic (the functions for inserting activities or relationships, for example). You can access the network graphic from various functions in Project System (the Project Builder, project planning board, or the information system, for example). The cycle analysis is a function that you can only perform in the network graphic. A cycle is a closed sequence of relationships and activities ("closed" means that, when you start out from an activity, you end up back at the same activity, by way of relationships). If the activity-relationship-activity path is cyclical, you will not be able to schedule the network. Cycle analysis is a tool that enables you to detect cyclical relationships, and correct them.

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Exercise 3: Activities and Networks

Exercise Objectives

• Create projects in the Project Builder using a template • Edit networks in the Project Builder

Business Example

You want to create a project for constructing a turbine system. The planned data from this project will be used later to create a quotation. To put the experience gained from past projects to use and to enable these projects to be compared more easily, use standard structures as templates when you create your project. Then adapt the operative structures to the specific requirements of the current project.

Hint: In the following exercises, ## indicates your group number (## = 01,

02, and so on).

Task: Project T-200##

Create a project called T-200## in the Project Builder. Get to know the various ways of editing networks in the Project Builder.

1. In the Project Builder, use a template to create a project with the identification

T-200##and description Turbine Gr##. Use the standard project T-20001as a template and Turbine Model Group 1 as the project profile.

Make sure that any assigned activities are also copied. The start date for your project is today. The provisional, estimated finish date is one year later. Save project T-200##.

2. Open project T-200## Turbine Gr## in the Project Builder. Assign WBS element

T-200##.1 Engineering and Design the following three activities:

Some of the engineering work for the rotating blades of the turbine is to be outsourced to an engineering company. Create an externally processed activity

1400for this with the description Engineering of Rotating Blades.

Use purchasing info record 5500000093.

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Employees in your company are to perform a quality check on the outsourced engineering work. Create an internally processed activity 1500 for this with the description Quality Check on Rotating Blades. Plan 10 hours work at work center 2400 and a duration of 2 days for performing the check. Use costs activity 6000 with the description Service to plan additional costs amounting to 4,000 euro for cost element 466000.

Assign this new costs activity 6000 Service using Drag&Drop to WBS element

T-200##.5 Assembly Processing.

3. You have not yet created any temporal relationships between the activities you created previously and other activities in your network. Create the following relationships:

In the Relationship Overview of the Project Builder, first create an FS

relationship from activity 5000 Assembly and Test Run to activity 6000 Service. Then call up the network graphic and select the appropriate view. Choose just the display area, for example, and select the appropriate view for the activities. In connect mode, create FS relationships between activities 1000 and 1400,

1400 and 1500, as well as 1500 and 4000.

Plan material costs for components that you will not assign to the activities until later on. On the Assignments tab page, enter 150,000 euro and 135,000 euro as material planning values in activities 3000 Preliminary Orders and 3100

Material Procurement Plant Components.

Save the changes you have made to the project.

4. Optional: Answer the following questions on the network and activities in

your project T-200##:

Which number is entered in your network for the MRP controller responsible? In which internally processed activity in your project has a work center not been maintained?

Which purchasing group is responsible for purchasing the external service that you planned using activity 1400 Engineering of Rotating Blades?

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Solution 3: Activities and Networks

Task: Project T-200##

Create a project called T-200## in the Project Builder. Get to know the various ways of editing networks in the Project Builder.

1. In the Project Builder, use a template to create a project with the identification

T-200##and description Turbine Gr##. Use the standard project T-20001as a template and Turbine Model Group 1 as the project profile.

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Make sure that any assigned activities are also copied. The start date for your project is today. The provisional, estimated finish date is one year later. Save project T-200##.

a) In the SAP menu, go to the Project System folder and open the Project Builder. Choose SAP Menu → Logistics → Project System → Project

→ Project Builder.

To create a project using a template, choose Create and Copy Project.

Enter the following data in the dialog box:

Project Definition T-200##

Description Turbine Gr##

Start Today’s date

Finish Date Today + 1 year

Project Profile Turbine Model Group 1 Template Std. proj. def. T-20001

Leave other fields as they are

The With Activities indicator should be set. Confirm your entries and any warnings that appear regarding the finish date with Enter.

Hint: In the structure, you can now see various objects that were

copied from the standard project: • Project definition

• WBS elements

• Network header (with the provisional number, for example, %00000000001)

• Activities • Milestone Save your project.

2. Open project T-200## Turbine Gr## in the Project Builder. Assign WBS element

T-200##.1 Engineering and Design the following three activities:

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Some of the engineering work for the rotating blades of the turbine is to be outsourced to an engineering company. Create an externally processed activity

1400for this with the description Engineering of Rotating Blades.

Use purchasing info record 5500000093.

Employees in your company are to perform a quality check on the outsourced engineering work. Create an internally processed activity 1500 for this with the description Quality Check on Rotating Blades. Plan 10 hours work at work center 2400 and a duration of 2 days for performing the check. Use costs activity 6000 with the description Service to plan additional costs amounting to 4,000 euro for cost element 466000.

Assign this new costs activity 6000 Service using Drag&Drop to WBS element

T-200##.5 Assembly Processing.

a) You are still in the Project Builder. The project you created earlier is displayed in the worklist under Last Projects Processed. To open your project, double-click T-200## Turbine Gr##.

Hint: If the system does not display all levels, fully expand the

structure . To avoid having to carry out this step, you can enter a suitable value in the Project Builder options for the number of hierarchy levels to be displayed (Settings → Options).

In the structure, select WBS element T-200##.1 Engineering and Design. To create an externally-processed activity for this WBS element,

go to the template area and double-click External Processing (under Individual Objects → Activity). Enter the following data on the detail

screen of the activity:

Activity 1400

Text (without caption) Engineering of Rotating Blades

Info Record 5500000093

Choose Enter to confirm your entries and to confirm that purchasing data should be copied from the purchasing info record. The activity is created and is displayed in the structure underneath WBS element T-200##.1 Engineering and Design.

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b) In the structure, select WBS element T-200##.1 Engineering and Design again. To create an internally-processed activity for this WBS

element, go to the template area and double-click Internal Processing. Enter the following data on the detail screen of the activity:

Activity 1500

Text (without caption) Quality Check on Rotating Blades

Work Center 2400

Work 10HR

Normal Duration 2DAY

Leave other fields as they are Confirm your entries with Enter.

c) In the structure, select WBS element T-200##.1 Engineering and Design again. To create a costs activity for this WBS element, go to the

template area and double-click Costs. Enter the following data on the

detail screen of the activity:

Activity 6000

Text (without caption) Service

Amount 4,000 EUR

Confirm your entries with Enter. The activity is displayed in the

structure underneath WBS element T-200##.1 Engineering and Design.

To assign the costs activity to WBS element T-200##.5 Assembly

Processing, select activity 6000 Service in the structure, and holding the

left-hand mouse button down, drag it to WBS element T-200##.5 Assembly

Processing.

3. You have not yet created any temporal relationships between the activities you created previously and other activities in your network. Create the following relationships:

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In the Relationship Overview of the Project Builder, first create an FS

relationship from activity 5000 Assembly and Test Run to activity 6000 Service. Then call up the network graphic and select the appropriate view. Choose just the display area, for example, and select the appropriate view for the activities. In connect mode, create FS relationships between activities 1000 and 1400,

1400 and 1500, as well as 1500 and 4000.

Plan material costs for components that you will not assign to the activities until later on. On the Assignments tab page, enter 150,000 euro and 135,000 euro as material planning values in activities 3000 Preliminary Orders and 3100

Material Procurement Plant Components.

Save the changes you have made to the project.

a) Project T-200## Turbine Gr01 is still open in the Project Builder. You have already selected activity 6000 Service in the structure. To create

a relationship for activity 5000 Assembly and Test Run in tabular mode, choose Relationship Overview. In the Activity Selection area, select

activity Assembly and Test Run and choose Create Relationship.

Hint: You can restrict the number of activities listed in Activity

Selection by entering suitable criteria, such as activity number or

activity short text. Alternatively, you can enter the activity number directly in the list of relationships and create the relationship in this way.

The activity number appears in the list of relationships. The Scs (successor) indicator is not set. This means that activity 5000 Assembly and Test Run is the predecessor of activity 6000 Service. FS (finish-start) is entered as the type of relationship.

b) To call up the network graphic, choose Network Graphic. In the network

graphic, choose Settings → View → Complete View. If necessary, select the appropriate view for the activities. To do so, choose Activities... and

then small in the dialog box for the activity display.

To create relationships in graphical mode, choose Connect. The shape

of the cursor changes (pencil). Holding the left-hand mouse button down, draw a line from the end of activity 1000 (predecessor) to the start of activity 1400 (successor). An FS relationship is then created between activities 1000 and 1400. Repeat this procedure to create FS relationships between activities 1400 and 1500 and 1500 and 4000. You can deactivate connect code by clicking a free space in the display area.