SAP Project Systems Manual

Training Manual

Version: PS-01

Project Management in SAP-Project System

Joint Training Program by

SZABIST & Compulogic

June, 2011

Instructor: Salman Hassan Qaiser, PMP®, ITIL®

Project Management in SAP-Project System Page 2

SAP Project System

SAP PS is a project management tool that provides you with support in all phases of the project. Due to the high level of integration between SAP Project System and other SAP application components, such as Procurement and Logistics execution, SAP Financials, and SAP Human Capital Management, SAP Project System ensures that the necessary business processes are handled quickly and efficiently. SAP PS provides structures that you can use to model and organize projects flexibly. You can plan and monitor dates, costs, revenues, budgets, resources, materials, and so on, in these structures using the relevant tools and reports from SAP PS. 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 to 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 only one work breakdown structure or one network. However, you can also represent a project using a work breakdown structure an done 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, and 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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Project Structures

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.

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 workbreak down 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 Management in SAP-Project System Page 4 project planning board to create and change the project definition and work breakdown structure. You can edit projects in tabular or graphical mode.

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 work list 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 work list to store frequently-used projects, networks, and WBS elements on a user-specific basis. The work list 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 use the work area to edit the individual project elements. You can navigate

Project Management in SAP-Project System Page 5 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.

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.

Task 1: 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 without texiting the Project Builder.

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

Project Management in SAP-Project System Page 6 (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).

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 sub treeE-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 Investment Project, 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 Assembly

underneath 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 levels1 and 2 allow costs to be planned. In the hierarchy graphic, create a new WBS element with the identificationE-99##-4 and 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.

Solution: Task no 1

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.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 explanatory dialog box, and confirm this with Enter. In the next dialog box for user-specific options, set the number of hierarchy levels

Project Management in SAP-Project System Page 7 1.b) To create a project, choose Create 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, right-click 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. Choose Intermediate Save to save your project. The icon for this is found in the second toolbar on the far right.

Project Management in SAP-Project System Page 9 2. a) You are still in the Project Builder. If you have saved your project by choosing Intermediate Save, the project is still open for processing. If required, switch from display mode to change mode. To do this, Choose Display/Change Button . If you have saved your project by choosing Intermediate Save, skip the following paragraph.

If you have saved your project by choosing save button , you have exited project processing. Your project is now 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 Δ. Enter the following data in the table if the system does not enter it by default (to set the operative indicators, scroll to the right in the table):

Level WBS element

Description Plan Act

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.

Project Management in SAP-Project System Page 11 3. A ) Project E-99## is still open in the Project Builder. Select WBS element (not the project definition) Δ 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:

Field Names Values

Below E-1001-2

With Root X

Right X

Without Activities X!!!

Confirm your entries with Include. A sub tree containing WBS elements for procurement is assigned to WBS element E-99##.

Project Management in SAP-Project System Page 12 3.b) To derive the structure from the numbers of the WBS elements, choose

Project → Derive Structure → Execute. In the structure, select the WBS element E-99##-2 Procurement and, on the detail screen of the WBS element, choose the Basic Data tab page and enter the person responsible ##. Select the Investment Project 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

Project Management in SAP-Project System Page 13 4.a ) Your project E-99## is still open in the Project Builder. Use Drag&Drop to drag a WBS Element from the templates area (under Individual Objects) to theWBS element E-99## Elevator Gr## at the top of the hierarchy. Enter the following data on the detail screen of the WBS element:

Project Management in SAP-Project System Page 14

Field Name Value

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.

4.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:

Field Name Value

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.

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.

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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

Project Management in SAP-Project System Page 17 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 result 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 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.

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, and incoming invoices).

Project Management in SAP-Project System Page 18

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.

Task 2: 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 identificationT-200##

and description Turbine Gr ##. Use the standard projectT-20001 as 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 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 1400 for 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 10hours’ 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 6000Service.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 1000and 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 and135,000 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.

Solution Task 2:

1.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.

Project Management in SAP-Project System Page 19 To create a project using a template, choose Create Copy Project.

Enter the following data in the dialog box:

Field Name Values

Project Definition T-200##

Description TURBINE GR ##

Start Today’s date

Finish Today + 1year

Project Profile Turbine Model group 1 Template Std, Proj def T-2001

Leave other fields as ther are

The With Activities indicator should be set. Confirm your entries and confirm any warning messages relating to the project finish date with Enter. Save your project.

Project Management in SAP-Project System Page 20 2. 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 T-200## Turbine Gr##.

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 templates area and double-click External Processing (under Individual Objects → Activity). Enter the following data on the detail screen of the activity:

Project Management in SAP-Project System Page 21

Field Name Values

Activity 1400

Text (without caption) Engineering of Rotating Blades

Info Record 5500000093

Leave other fields as they are

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 displayed in the structure below WBS element T-200##.1 Engineering and Design.

Project Management in SAP-Project System Page 22 2.b) In the structure, select WBS element T-200##.1 Engineering and Design again. To create an internal processing activity for this WBS element, go to the templates area and double-click Internal Processing. Enter the following data on the detail screen of the activity:

Project Management in SAP-Project System Page 23

Field Name Values

Activity 1500

Text (without caption) Quality Check on Rotating Blades

Work Centre 2400

Work 10 hrs

Normal Duration 2 Day

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

Project Management in SAP-Project System Page 24 2.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 templates area and double-click Costs. Enter the following data on the detail screen of the activity:

Field Name Values

Activity 6000

Project Management in SAP-Project System Page 25

Amount 4000 Euro

Leave other fields as they are

Confirm your entries with Enter. The activity is displayed in the structure below 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 mouse button down, drag it to T-200##.5 Assembly Processing.

Project Management in SAP-Project System Page 26 3.a) Project T-200## Turbine Gr01 is still open in the Project Builder. You have 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.

Project Management in SAP-Project System Page 27 3.b) To branch to the network graphic, choose Network Graphic. In the network graphic, choose Settings → View and then Complete View. If necessary, select the appropriate view for the activities. To do so, choose Activities and, in the dialog box that appears, select small 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. If necessary, adjust the complete graph. To do so, choose Adjust... Then confirm the option Adjust Complete Graph with Enter.

Project Management in SAP-Project System Page 28 3.c) To plan material costs, call up the detail screen of activity 3000 Preliminary Orders. To do so, double-click activity 3000 in the network graphic. Choose Assignments and enter

150,000 in the Material Planning field. To return to the network graphic, choose Back. Repeat this procedure to plan 135,000 euro for activity 3100 Material Procurement Plant

Components.

To exit the network graphic, choose Back. If necessary, confirm the prompt asking you if you want to save the node items by choosing Yes. To save the changes you have made to project T-200## choose Save.

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Project Planning Board

The project planning board is a tool in SAP Project System (SAP PS) that enables you to process the entire project structure (WBS elements, activities, and the different objects assigned to them. Objects in the Project Planning Board.)in an integrated environment. The project planning board is based onan interactive SAP Gantt chart. The Gantt chart comprises a table and diagram area, and shows not only the hierarchical structure of your project but also the corresponding situation with regard to dates. By choosing different points on the project planning board, you can call up detail screens for objects or change the field selection and time settings. When you click the right-hand mouse button, all the functions available at the cursor position are displayed. When using the project planning board, you can display or hide specific objects (activities, relationships ,or milestones), as well as use different filter, sort, or grouping functions. You ca configure the project planning board in such a way that it only displays what you need.

You can use the project planning board to create and edit the project definition, WBS elements, activities, relationships, milestones, material components, documents, and PS texts. The project planning board is also particularly useful for planning dates and resources (work, external processing), as well as determining and planning costs using activities.

Project Management in SAP-Project System Page 31 In projects without networks, dates can be planned manually for the WBS elements (basic dates). For example, you can use the project planning board to plan basic dates for the WBS elements simply by dragging your mouse. Using structure planning, you can plan these dates in a table in the Project Builder in the detailed data for the WBS elements. To reduce the time and effort involved in planning, a range of functions are available to support WBS date planning. Basic dates, for instance, can be extrapolated from lower- to higher-level WBS elements, or passed on from higher- to lower-level WBS elements. You can check the consistency of date planning within the WBS structure .In the execution phase, you can also enter actual dates in the project planning board by dragging your mouse, and then compare them directly with the planned basic dates.

Scheduling

In projects with networks, you can carry out scheduling to automatically derive the activity dates and WBS element dates. The scheduling parameters determine how scheduling is carried out. Networks are always scheduled forwards and backwards. The scheduling type in the scheduling parameters specifies the direction in which you begin scheduling. The system determines the earliest dates of the activities by means of forward scheduling, and the latest dates by means of backward scheduling. The difference between the earliest and the latest dates o an activity are referred to as floats. Floats can be zero or negative, which means that the activity in question is “critical” Using the project planning board you can, for example, select WBS elements and schedule the activities assigned to them. The dates of the assigned activities are summarized to determine the scheduled dates of the WBS elements (thin time bars in the project planning board) and can be copied as planned basic dates. The dates scheduled in the work breakdown structure can then be extrapolated within the project structure. In the implementation guide, you can configure the appropriate scheduling parameters or use predefined scheduling scenarios.

Project Management in SAP-Project System Page 32 You can use the project planning board to change these settings for a particular project.

Business Example

Plan basic dates for the individual WBS elements manually for investment projectE-99##. In customer project T-200##, planned dates are determined automatically by scheduling the activities, and they are displayed in aggregated form in the WBS elements.

Task 3: Planning Basic Dates for WBS Elements.

Project E-99##

Use the project planning board to manually plan basic dates for the WBS elements in project E-99##.

1. Change project E-99## in the project planning board. In the diagram area of the project planning board, plan feasible basic dates for all the WBS elements (apart from E-99## Elevator Gr##, E-99##-1 Engineering, andE-99##-2 Procurement) by dragging the time bars using your mouse. The entire project should last around 6 months. Determine the dates of the higher-level WBS elements using the Extrapolate Dates function. Save your changes.

2. Optional: The procurement phase of project E-99## has to be postponed by10 days. In the project planning board, shift the planned dates for the entire sub tree of WBS element E-99##-2 Procurement (and also the lower-level WBS elements) by 10 days. The assembly and acceptance phases also have to be postponed by 5 days as a result

Project Management in SAP-Project System Page 33 of the procurement phase being postponed. Use the cursor to shift the time bars for WBS elements E-99##-3 Assembly and E-99##-4Acceptance accordingly.

Task Solution:

1. a)

Project Management in SAP-Project System Page 34 b) To determine the basic dates for the higher-level WBS elements, choose Edit → Reconcile/Check Dates → Extrapolate Dates.

To save your date planning, choose Save. If you have made any changes to the layout of the project planning board, the system prompts you to save these changes. In this case, confirm that you want to save the user-dependent data by choosing Yes.

Project Management in SAP-Project System Page 35 2. a) Determine the new end date for the level-1 WBS element E-99## Elevator Gr ## by

extrapolating the basic dates. Save the modified date planning for your project.

Task 4: Scheduling. Project T-200##

Use the scheduling function to plan dates for the activities and WBS elements of project T-200## in the project planning board.

1. Now plan dates for project T-200##. To do so, open the project in the project planning board and display all the dependent objects. Extend the duration of activity 1000 (Engineering of Drawing/Calculation/Design) to 25 days. Also take a look at the fields

relevant to scheduling in the detailed screen for the activity. Determine the dates of all the objects using the Schedule function. The scheduling parameters are set in such a way that the basic dates for the WBS elements to which the activities are assigned are also determined automatically.

To determine the basic dates for the level-1WBS element as well, extrapolate the dates in the project structure afterwards. Save your date planning data and return to the SAP menu.

Solution Task 4:

1 .a) Open project T-200## in the project planning board by double-clicking T-200## Turbine Gr## in the worklist. To display all the dependent objects (including the project milestones, for example), select all objects by choosing Select All and then Show All Dependent Objects. Choose activity 1000 (Engineering of Drawing/Calculation/Design). In the detail screen, note the fields Normal Duration, Factory Cal.ID, Work Center, and Control Key on the Internal tab page. All these fields are relevant for scheduling. Increase the value in the Normal Duration field to 25 days. Call up the Dates tab page. In the lower part of the

Project Management in SAP-Project System Page 36 detail screen, you can see the earliest and latest dates defined for the activity. In the upper part, you can define constraints to fix dates for activities. To return to the project planning board, choose Back.

Project Management in SAP-Project System Page 37

Resource Planning

You use activities in a network to plan the resources required for a project. Project System distinguishes between the following resources: Internally-processed activities define the work to be carried out by machines or persons. You can evaluate the capacities of the various work centers involved, reschedule these capacities as necessary, and distribute work among employees.

You can use externally-processed activities to define which services are required by other companies. External processing is carried out by the Purchasing department. Service activities are also used to procure services externally. Unlike externally-processed activities, this activity type enables you to define service specifications and value limits for unplanned services rendered by the service provider. Service processing (including entry and acceptance of services performed) is also carried out by the Purchasing department.

Project Management in SAP-Project System Page 38

Internal Processing

Internally-processed activities are used as a basis for planning work carried out within the company. You must enter work data for an activity so that the system can plan capacities for a project and calculate costs for activities. You need to specify the amount of work involved and the work center that is to perform the work. Work is the output to be provided by machines or personnel in order to complete an activity. A work center is the place where an activity is carried out or work output is produced. Work centers contain data for costing activities. Work centers also contain the scheduling and capacity data required for scheduling and capacity planning. You can determine how much of the work center capacity is used for the activities (in the project planning board too, for example). If necessary, you can use the project planning board or the graphical/tabular capacity planning table to level capacities. You can also distribute the work among employees.

When you confirm activities during the project execution phase, you consume capacity requirements and enter actual dates and costs. When you distribute work among employees, you assign persons to activities. To distribute work, you can set up project teams and select HR organizational units, positions, or persons. You can also schedule the personnel who are assigned to the work center for the activity. A project and work center view is available to help you distribute work among the employees In both views, you can quickly and easily assign persons to activities and access various data (for example, the availability of the person from Human Resources, the total work planned for that person, or the activity data).

Project Management in SAP-Project System Page 39

External Processing

Service procurement via Purchasing is mapped in networks by means of the activity types external processing and service. If you commission an engineering office to design a machine, for example, you can create an externally-processed activity (or externally-processed element). When you create an activity such asthis, a purchase requisition is also created that is processed further in Purchasing. You can use data from Purchasing for external processing (a purchasing info record, for example, that contains prices and delivery times for external processing).

A service activity triggers a similar purchasing process, but can also contain a hierarchy of planned services to be purchased, and value limits for unplanned services. The goods receipt. for services involves two steps: entering the service and accepting the service. Control keys are used to define externally-processed activities and service activities (as well as other activity types).

Business Example

In customer project T-200##, you will use activities to plan resources. In the case of internally-processed activities, capacity requirements are generated for the assigned work centers. These requirements can be evaluated and, if necessary, leveled. You distribute planned work to individual employees. Purchase requisitions are generated and passed on to the Purchasing department via externally-processed activities.

Task 5: Internal Processing.

Project T-200##

For the internally-processed activities in project T-200##, check the capacity load utilization for the assigned work centers. Distribute the planned work for an activity to different employees. This distribution can be used when you come to record the activities carried out by the employees as a default value for the Cross-Application Time Sheet.

1. Change activity 1200 Engineering of Case in project T-200## in the project planning board. The activity is now to be processed by employees assigned to work center 2700.

Activate the capacity requirements for your project for the assigned work centers and carry out scheduling again. Use the capacity overview on the project planning board to check the situation with regard to capacity for the assigned work centers. Display the capacity load utilization in this overview in a histogram and then call up an explanatory legend. Save the project.

2. Use the project view for the distribution of work to employees and profile1302 to assign

persons for activity 1200 Engineering of Case in projectT-200##. To do this, choose

person 1920+## from the list of proposed persons (for exercise group 01: 1921; for ## = 02: the person with personnel number 1922 and so on). Display the availability of the person you assigned too. Schedule a total of 60 hours for the activity in the planned period (you may have to scroll the table to the right). Save the work distribution data and return to the SAP menu.

Project Management in SAP-Project System Page 40

Solution Task 5:

1. a.)

Back. To activate the capacity requirements for your project for the assigned work centers, choose Select All and then Edit → Functions → Activate Capacities. Then reschedule your project by choosing Schedule.

Project Management in SAP-Project System Page 41 1. b) Call up the capacity overview in the project planning board to analyze the situation with regard to capacities at the work centers. To do so, choose Capacity Overview. An overview window is displayed in the lower part of the screen.

To display the capacity load utilization as a histogram, select a work center (if possible, one with a red bar) on the left of the capacity overview and choose Load as Histogram from the context menu (right-click). To display a legend for the capacity overview, choose Display Legend from the context menu. Close the legend and save your changes by choosing Save. Exit the project planning board by choosing Back.

Project Management in SAP-Project System Page 43 2.

a)

Planning → Project View. Enter the following data on the selection screen and then choose Execute.

Field Name

Value

Project

T-200##

Profile

1302

The Workforce Planning: Project View is now displayed. To create the assignment, select activity 1200 Engineering of Case on the left in the table and choose Create Assignment (bottom left).

To save your work distribution data, choose Save. To return to the SAP menu, choose Back.

Project Management in SAP-Project System Page 46

Task 6: External Processing

Project T-200##

Check the externally-processed activity data in project T-200##. Generate a purchase requisition from this activity.

Project Management in SAP-Project System Page 47 1. To procure an external service, you created activity 1400 (Engineering of Rotating Blades) in project T-200## as an externally-processed activity. External processing data was copied from purchasing info record 5500000093. In the project planning board, check which vendor has been proposed for the procurement. Change the activity in such a way that the associated purchase requisition is generated when you save the project. Save your project and return to the SAP menu.

2. Optional: Use Purchase Requisitions for Project in the information system of Project System to display a list of purchase requisitions for projectT-200##. Then return to the

SAP menu.

Solution Task 6

1. A) Open project T-200## in the project planning board. To do so, choose Project System

→ Project → Project Planning Board → Change Project and double-click project T-200## Turbine Gr ## in the work list.

To call up the detail screen for activity 1400 (Engineering of Rotating Blades, double-click the activity. External processing is to be carried out by vendor 1000. With the current settings, the purchase requisition for this activity would be generated when the activity is released. To ensure that the purchase requisition is generated as soon as you save the project, set Res./Purc.Req. to Immediately. Return to the overview of the project planning board by choosing Back and save your changes by choosing Save. Exit the project planning board by choosing Back.

Project Management in SAP-Project System Page 48 2. A) To start the report, choose Project System → Information System →Material →

Purchase Requisitions → For Project. On the selection screen, enter project T-200##

in the Project field and choose Execute. The list contains data for the purchase requisition you created earlier. Further purchase requisitions have not yet been created for your project. Exit the report by choosing Back (twice).

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Materials in Projects

Materials establish the link between SAP Project System and Sales and Distribution (SD), Materials Management (MM), and Production Planning and Control (PP). A suitable material in a sales document item, for example, can be used to generate project structures automatically (assembly processing). Material requirements in projects form the basis for procurement,

Project Management in SAP-Project System Page 50 whether the material is produced in-house (production) or procured externally (purchasing).By assigning materials to activities, you can plan the necessary material requirements for a project. A distinction is made between stock items and non-stock items. The item category stock item is used for materials that are kept in stock (warehouse stock, project stock, or sales order stock). A reservation is created for stock items. Independent requirements (requirements for finished products, salable assemblies, trading goods, and spare parts) trigger requirements planning. To cover the requirements, you have to determine order quantities and dates, as well as schedule the corresponding procurement elements. The procurement element for requirements planning is a planned order and, for external procurement, a purchase requisition. In addition, the dependent requirements for materials produced in-house (in other words, the quantity of components required to manufacture a finished product or assembly) are determined by exploding the bill of material.

Planned orders are created at each BOM level to cover requirements when a material shortage occurs. Once quantities and dates have been planned in requirements planning, these planned procurement elements are converted to exact procurement elements: for production, this is the production order and, for external procurement, the purchase order.

The non-stock item category is used for components that are not procured via warehouse stock, project stock, or sales order stock, but are instead procured directly by means of the network activity. Purchase requisitions for Purchasing are created for these components directly. When the goods are received, they are posted to the activity rather than placed into stock. And non-stock items cannot be managed as project stock or sales order stock.

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Transferring BOMs

In projects with low material requirements, you can assign individual material components to the network activities. You can also assign a material with a BOM to an activity and then explode it step by step.

The BOM transfer function makes it easier for you to assign material components in one or more BOMs to network activities. When you assign material components using the BOM transfer function, the system uses the Reference Point field in the BOM items and activities to establish a logical connection between the individual BOM items and the network activities. In contrast to when you assign individual components manually, you can update subsequent changes to the BOM automatically in the network activity. The BOM transfer function is particularly useful for engineering projects involving BOMs that are created during the course of the project or changed frequently. When the BOM is transferred, assignments are made on a project-specific basis and may also be made for different project networks simultaneously. You can assign individual components, individual BOM assemblies, or a multi-level BOM. You can assign components manually without reference points when transferring BOMs.

Business Example

You want to plan material requirements in customer project T-200##. The engineering and design department uses CAD systems to map the product structure in the form of bills of material (BOMs). You activate procurement of the material by assigning material components to project network activities. The materials are assigned automatically by means of the BOM transfer function.

Task 7: BOM Transfer

Project T-200##

Use the BOM transfer tool to assign BOM items to activities for project T-200##(via the common reference points). Use the component overview in the project planning board to check that the BOM items have been properly assigned and the planned requirements dates.

1. Call up the BOM Transfer tool in the Project System menu. Select projectT-200## and

the BOM for material T-20000 in plant 1300 with usage3 (Universal). Use profile 1300 for the selection. Use these selection parameters to transfer the bill of material.

Save the assignments and return to the SAP menu.

2. Open project T-200## in the project planning board and check that the material components have been assigned properly in the Component Overview. Choose the General Data and Procurement Parameters tab pages in the detail screen for component T-20210. Then exit the project planning board.

3. Optional: Open project T-200## in the Project Builder. Call up the overview of all the assigned components and the detail screen for component T-20600.To which activity is this component assigned? Then exit the Project Builder.

Project Management in SAP-Project System Page 52

Solution Task 7:

1. A)

In the initial screen, enter the following selection criteria:

Field Name

Value

Project Definition T-200##

Profile

1300

Material T-20000

Plant

1300

BOM Usage

3

To start the transfer, choose Execute. In the results overview, you will see the components of the (multilevel) BOM that were assigned to the activities in your project because they had the same reference points. The components are assigned when you save your data. Choose Save, and exit the BOM transfer by choosing Back.

Project Management in SAP-Project System Page 53

2.

→ Project → Project Planning Board → Change Project and double-click project T-200## Turbine G r## in the work list.

To check the assignment of the material components, choose Select All and then Component Overview in the project planning board. The overview screen displays the assigned components along with their requirements dates.

Project Management in SAP-Project System Page 54 In the detail screen, call up the General Data tab page. The system not only displays the requirements date for the component but also the reservation number. Call up the Procurement Parameters tab page. In addition to data from the component material master, this tab page displays important data about the quantity and value flow (account assignment categories, special stock indicator, and consumption posting indicator, for example). Exit the detail screen for the component and the project planning board

Project Management in SAP-Project System Page 55

3.

→ Project Builder. To open project T-200##, double-click project T-200## Turbine Gr## in the work list. If necessary, expand the structure so that the assigned material components are also displayed in the Project Builder structure. To display a list of all the material components that have been assigned to your network, choose the network header in the structure and then choose Component Overview. The system displays a list of all the assigned components. To display details for component T-20600, select the row for material T-20600 in the overview and choose General. The detail screen is displayed and the components are highlighted in the structure. Material T-20600 is assigned to activity 4000. Exit the project and the Project Builder by choosing Back and Exit.

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Cost Planning

You can plan costs for a project in SAP Project System (SAP PS) using two different methods:

 Manual cost planning in the work breakdown structure

 Cost planning using activities (network costing) Manual planning in the WBS involves:

 Overall planning: The most basic form of cost planning, where the costs for WBS elements are entered manually. You can break down your figures by fiscal year if you wish.

 Detailed planning of primary costs and activity inputs: This type of planning is based on cost elements and periods.

 Unit costing: For each WBS element, you use a scheme for entering quantities (materials, internal activities, external activities, variable items ,and so on). This type of planning is cost element-based.

 Easy Cost Planning: Easy Cost Planning is a user-friendly method for performing cost element-based cost planning by means of a quantity structure. You can then use Execution Services to enter commitment and actual data relating to the planned costs. In addition to manual planning in the WBS, you can assign different types of order (internal orders or maintenance orders, for example) to WBS elements that are flagged as account assignment elements. This assignment can then be used to display the planned costs of the orders for the project. You can also assign activities to WBS elements and plan costs using these activities. The benefit of this planning method is that it can be copied to a new project and, if parts of the project are moved, cost planning is moved automatically along with the activities. In addition, planning by means of network activities is cost element and period based.

Easy Cost Planning is a user-friendly tool that enables you to plan costs for WBS elements. You can access Easy Cost Planning for projects from the Project Builder. You choose a WBS element from the structure and then create costing items for this WBS element. Cost planning by means of Easy Cost Planning is cost element based. The cost planning periods are determined from the basic start date of the WBS element. To enter costing items, you can also use planning forms (see Fig. Easy Cost Planning). When you do this, characteristics (e.g. work in hours) are valuated (e.g. with 100). The characteristic values from the planning form are linked to quantities, values, or actions in the costing items (in Fig. Easy Cost Planning., for example, to the quantity of an internal activity).Once you have transferred the values, the costing items appear under the relevant WBS elements in the structure.

Easy Cost Planning can be used as a simple preliminary costing for projects. The pre-planned costs are then replaced, for instance by a quantity structure of networks/activities. You can also use Easy Cost Planning to create planned data for the project execution phase. In this case, you can then use Execution Services to enter commitment and actual costs for the planned costs. In Customizing, you define the plan version in which values planned by Easy Cost Planning are stored.

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Revenue Planning

The following methods can be used to plan revenues in your project: Manual revenue planning (structure-oriented, or on the basis of revenue elements). The latter of the two is revenue element and period based. Revenue planning using PS billing plans. This type of planning is revenue element and period based.

Revenue planning using SD documents (sales order items or even quotation items). This type of planning is revenue element and period based. The Sales Order and Billing Plan.

Diagram illustrates how revenues are planned with SD documents.

The customer has placed an order for project T-200##. You have agreed a sales price of 880,000 euro with the customer. Partial payments are due once production (activity 4000) and assemblies (activity 5000) are complete. You enter this information in the system by defining billing milestones for the activities.

You then create a sales order in the system and a billing plan for the item. You copy the billing milestones for activities 4000 and 5000 to the billing plan. You assign the sales order item to the billing element of the project. This assignment forms the basis for planning revenues in your project .In the project execution phase, the locks for the individual items in the billing plan are lifted automatically when activities 4000 and 5000 are confirmed. After a billing run, actual project revenues can also be updated in this way automatically.

Business Example

You will plan costs manually for investment project E-99## using Easy Cost Planning. To facilitate the planning process, planning forms are used that have already been maintained in the system. For customer project T-200##, the costs are planned using the quantity structure for the activities. The quotation is created on the basis of the project cost planning data. This involves rearranging the planned costs according to cost element or activity type and copying them to the quotation as items.

The customer accepts your quotation. In SD, a sales order is then created and assigned to project T-200##. In a billing plan for the order item, you store the dates on which payment is due from the customer. You can evaluate the values in the order as planned project revenue.

Task 8: Easy Cost Planning

Project E-99##

Plan costs for WBS elements at level 2 of investment project E-99##. To do so, use Easy Cost Planning and, if necessary, planning forms maintained in the system.

1. Open project E-99## in the Project Builder. Call up Easy Cost Planning and create a cost estimate using the proposed costing variant .Display the item view. Plan costs for WBS elements E-99##-1 Engineering,E-99##-2 Procurement, and E-99##-3 Assembly. To do so, select the relevant WBS element in the costing structure and choose a suitable planning form(for example, display the list of all the planning forms and choose the appropriate planning form for elevators: ZPS101, ZPS102, or ZPS103).For Engineering (WBS element E-99##-1), use the planning form to plan costs for 100

Project Management in SAP-Project System Page 59 plan procurement costs for an elevator with a labor capacity 10, elevator location USA,

and elevator cabin walls made of Metal. For WBS element E-99##-3, use the planning

form to plan costs for 120assembly hours. A planning form does not exist in the system

for Acceptance (WBS elementE-99##-4). For this WBS element, plan two items in the item view manually .Use item category E (internal activity) to plan costs for an activity

input of10 hours from cost center (resource) 4295 for activity type 1463. Plan material

costs (item category M) for 10 pieces of the material (resource)B-1000 (Office Material

- Folders) from plant 1000. Copy the items to your cost estimate. Then return to the

Project Builder and save your cost planning data.

2.

which is based on the planned costs, in the Project System information system to analyze the costs that you have planned for projectE-99##. Expand the data according

to value categories and period/year. Then exit the report.

Solution Task 8:

1. A)

To go to Easy Cost Planning, choose Easy Cost Planning. Confirm the data in the following dialog box by choosing Create Cost Estimate.

Project Management in SAP-Project System Page 60 1. B) Select WBS element E-99##-1 (Engineering) in the costing structure and choose

Choose Planning Form. To display a list of all the planning forms, choose Start Search. In the list, select costing model ZPS101 Elevator: Engineering and confirm your selection with Copy. Then enter the following characteristic values in the planning form:

Project Management in SAP-Project System Page 61

Field Name Value

Internal Labor Hours 100 Additional Costs (Euros): 6.700

Choose Copy. In the costing structure on the left, various items are displayed under the WBS element along with the different planned values. Detailed data for the individual items is displayed in the item view in the bottom right of the screen.

Project Management in SAP-Project System Page 62 1. C) Following the same procedure as before, create a cost estimate for WBS element

E-99##-2 (Procurement). Select the WBS element in the costing structure and choose planning form ZPS102 Elevator: Procurement. Then enter the following characteristic values in the planning form:

Field Name Value

Labor Capacity 10

Elevator Location USA

Elevator Cabin Walls Metal Choose Copy.

Project Management in SAP-Project System Page 64 1. D) Following the same procedure as before, create a cost estimate for WBS element

E-99##-3 (Assembly). Select the WBS element in the costing structure and choose planning form ZPS103 Elevator: Assembly.

Then enter the following characteristic value in the planning form:

Field Name Value

Assembly hours 120

Project Management in SAP-Project System Page 65 E) A predefined planning form does not exist for WBS element E-99##-4 (Acceptance). To plan costs for Acceptance, select the WBS element in the costing structure and choose Append Row on the right in the item view (if necessary, display by choosing Show/Hide Item View) . Enter the following data in the two empty rows in the item view:

Item Category Resource Plant/Activity type Quantity

E 4295 1463 10

M B-1000 1000 10

Confirm your entries with Enter and then choose Confirm. Exit Easy Cost Planning and save the changes you have made to your project by choosing Back and Save. To exit the project Builder, choose Exit.

Project Management in SAP-Project System Page 66 2. A) To start the hierarchy report, choose Project System → Information System → Financials → Costs → Plan-Based → Hierarchical → Plan/Actual/Commitment/Rem.Plan/Assigned. Enter E-99## in the Project field on the

selection screen and choose Execute. The planned costs are displayed sorted according to the individual WBS elements. To carry out an analysis according to value categories,

Project Management in SAP-Project System Page 67 choose Value Category on the left in the navigation panel. To expand the display according to periods, choose Period/Year in the navigation panel. To exit the report, choose Back and confirm the dialog box with Yes.