SAP PPM Solution in Detail

7/27/2019 SAP PPM Solution in Detail

1/20

In a competitive market-place, you cant afford to

waste resources on projectsthat may or may not producemeasurable improvementto your business or yourbottom line. Thats why moreand more companies areturning to enterprise soft-

ware from SAP. By combin-ing the portfolio, resource,and project managementfunctionality of complemen-tary SAP applications intoa single solution, you canalign your portfolio withcorporate strategy, adhere

to schedules and budgets,optimize resources, andassess progress and riskat an early stage. This docu-ment outlines the functionsand advantages of such asolution and demonstratesits use.

PORTFOLIO, RESOURCE, ANDPROJECT MANAGEMENTEXPLORING THE BENEFITS OF A SOLUTION BUILT

ON COMPLEMENTARY SAP APPLICATIONS

SAP Solution in DetailSAP Product Lifecycle Management


2/20


3/20

4 Comprehensive Solution fromComplementary Applications

6 SAP RPM6 Optimizing Portfolio

Management

8 Offering CompleteTransparency

9 cProjects and cFolders10 Providing a Broad Range of

Project Management Functions13 Team Collaboration: The Key

to Success

14 SAP ERP: Project SystemFunctionality

14 Managing Project Phases

16 Automotive Industry

17 Professional Services Industry

18 IT Industry

19 An Efficient SAP Solution

CONTENT


4/20

To meet the long-term goals and short-term objectivesthat keep your company competitive, you need tomanage portfolios, projects, and operations holisticallyand efficiently. This kind of management typically in-

volves five basic activities: strategic planning, resourceand schedule planning, cost and profitability planningand control, and the information transparency that en-ables management oversight. A solution that combinescomplementary SAP applications and componentssupports better execution of each of these activities: Strategic planning

Prioritize, plan, and execute activities aligned to

corporate strategy and quickly provide the resourcesneeded to meet your objectives Resource and schedule planning

Plan and track activities more precisely to improvespeed of execution and achieve faster time to market

Cost and profitability planning and controlPlan and monitor budgets and resources and maximizefinancial returns; support both portfolio and projectdecision-making processes; minimize risk, redundancy,and bottlenecks through better resource planning andallocation

Information transparency

Enable management oversight; support overalldecision-making processes

COMPREHENSIVE SOLUTION FROMCOMPLEMENTARY APPLICATIONSCLARIFYING PORTFOLIO STRATEGY,STREAMLINING PROJECT OPERATIONS

4 SAP Solution in Detail SAP Product Lifecycle Management


5/20

Whether you are lookingto manage IT, consulting,and development projectsor run complex, long-term

engineering and productionprojects, SAP can help forexample, with comprehen-sive functions for accessingproject cost-controlling dataaround the clock and moni-toring production processesefficiently. By combining

complementary SAP soft-ware applications, you canbuild an efficient solutionfor portfolio, resource, andproject management. Andbecause this software isclosely integrated with thelogistics and accountingcomponents of the SAPERP application, it providesimmediate access to thedata you need.

To be effective, your solution should bebased on three key SAP applicationsthat provide complementary functions: SAP Resource and Portfolio Manage-

ment (SAP RPM) application Collaboration Projects (cProjects)

application, which incorporates theCollaboration Folders (cFolders)application

SAP ERP application, and in particu-lar, its project system component

These applications work well witheach other as well as with other SAPapplications such as the SAP ProductLifecycle Management application.

SAP RPM is the core applicationused for managing large portfolios

of projects and for directly managingresources within the context of eachproject. It enables you to align activities,resources, and budgets with businesspriorities, which results in better use oflimited resources, timely monitoring ofperformance, improved resource fore-casting, avoidance of bottlenecks, andmore-informed decision making. Toooften, information on resource availabil-ity is so obsolete it becomes meaning-less. By using SAP RPM to leverageyour core HR system, you can reduce

the administration of resource data andimprove its accuracy.cProjects helps you manage projectoperations throughout the entire prod-uct development process, enablingstrong project management functional-ity as well as extensive team-orientedcollaboration. It is particularly usefulin managing phase-based projects.Through predefined templates basedon industry best practices, it delivers

highly specialized support for productdevelopment, professional services,

Six Sigma, IT, and other projectscenarios. It supports structuring,scheduling, and visualization; strategicdirection setting; and operative plan-ning and execution. And it lets youcollaborate with a variety of internal

and external groups (incorporatingcFolders for external collaboration)to improve efficiency in different areas.By collaborating with the procurementgroup, for example, you can drivedown supplier costs.

SAP ERP covers the controlling andlogistics functions of project manage-ment through tight integration of itsproject system component with com-ponents related to sales and distribu-

tion, materials management, produc-tion, plant maintenance, and financialaccounting and controlling. It alsooffers unparalleled transparency andcontrol. This helps you better managecomplex projects where detailed costaccountability is a major requirement.

In addition, the three applicationsjust outlined combine seamlessly withSAP Product Lifecycle Management toprovide you with a full life-cycle solutionfor product development. This solution

incorporates information from SAPand non-SAP software as well as froma range of project management, HR,financial, and time-recording software.As a result, you can monitor and coor-dinate all activities in your enterpriseand make the most of limited, con-strained resources regardless of wherethey originate. And you can bettertransfer information compiled duringproduct development to minimize therework associated with downstream

activities related to specification devel-opment and compliance.

5SAP Solution in Detail SAP Product Lifecycle Management


6/20

SAP RPMBALANCING YOUR ENTERPRISE PORTFOLIO

SAP RPM gives you an overview ofyour entire project portfolio, allowingyou to monitor the progress of all youractivities for both projects and opera-tions. Its sophisticated portfolio man-agement functions let you identify and

prioritize worthwhile initiatives, projects,and project proposals; set priorities;select the most suitable employees orcontractors for each project; and moni-tor and coordinate project activities.Because SAP RPM works well withSAP and non-SAP project scheduling,HR, and financial systems, it enablesyou to manage all aspects of yourportfolio while leveraging your existingIT investment.

With the help of SAP RPM, you canminimize project risk and combine laborand financial resources optimally. Youcan also analyze and keep track ofchanging requirements, metrics, timeschedules, and personnel resources.As a result, you can accelerate imple-mentation timelines, keep budgetsunder control, and keep team membersbetter informed.

SAP RPM is one of several applica-tions from SAP that are built on an

enterprise service-oriented architecturebased on the SAP NetWeaver technol-ogy platform. As a result, it betterenables you to connect existing soft-ware to new, cross-functional process-es. This boosts the flexibility of yourenterprise, enabling it to react morequickly to changes in the market.

Optimizing Portfolio Management

SAP RPM updates you on all ongoingand planned activities, keeps costsunder control, helps you select theright people for new roles, and lets

you perform a variety of activities,including the following: Portfolio Management

Strategic buckets: Define flexible,multilevel portfolio hierarchies thatreflect the decision-making, bud-geting, and resourcing structureof your enterprise

Decision support: Identify andmonitor key decision-making crite-ria and trend it across the com-

plete portfolio life cycle to identifyoperations and projects not meet-ing expectations or service levels

Dashboards and status: View thestatus of all initiatives, projects,proposals, operational services,and other portfolio objects in anitem dashboard (see Figure 1)and monitor key indicators suchas budget, schedule, staffing, netpresent value, anticipated benefits,and risk across the entire portfoliolife cycle

Financial planning: Use granularfinancial planning measures todisplay and monitor costs andbenefits along a time axis acrossdifferent cost and benefit elements,comparing estimated valuesagainst baseline plan, forecast,and actual values

Annual and long-range financialplanning: Eliminate the complexityand inefficiencies associated withspreadsheets by rolling plans from

the bottom up and distributing

resources and budget from the topdown, across the different entitiesthat encompass your organization

Annual and long-range resourceplanning: Identify long-rangeresource demand, which enables

you to estimate prospective head-count, measure it against youravailable resources, identify poten-tial bottlenecks or shortfalls, andtransform your workforce to meetthe needs of the future

Sophisticated analytics: Aggre-gate operational data that feedssophisticated analytics, which youcan use to visualize opportunity,risk, and performance issuesacross your portfolio

Questionnaires and risk assess-ment: Evaluate quantitative and

SAP RPM lets youalign activities, re-sources, and budgets

with business priori-ties, which results inbetter use of limitedresources, timely mon-itoring of performance,improved resourceforecasting, avoidanceof bottlenecks,and more informeddecision making.



7/20

qualitative soft indicators, such as

risk or feasibility, via questionnairesand available data; use question-naires to make qualitative data lessambiguous and feed scoring mod-els so that you can better evaluateyour portfolio and compare differ-ent initiatives that are competingfor the same resources

Prioritization and alignment:Compare quantitative and qualita-tive metrics in evaluation modelsand display projects, proposals,

and baseline services in ranked

lists based on one or more scoring

models; plot results to clearlyidentify initiatives that look mostpromising

Gate and portfolio reviews: Pre-pare and carry out portfolio andgate reviews (Note: These can beroutine or spontaneous; they sup-port decision making on, for exam-ple, whether a project should beadded to the portfolio, terminated,or postponed and what resourcesand budget may have to be pulled

to support this new initiative.)

What-if analysis: Copy your

current portfolio into a virtualoffline scenario in which you canintroduce and evaluate the impactof new budget and headcountconstraints, increased materialcosts (for example, for steel oroil), revised revenue targets, orother potential critical changes sothat you are in a better positionto make informed decisions

Figure 1: Item Dashboard in the SAP Resource and Portfolio Management Application



8/20

Resource capacity management Leverage reliable resource data

including employee availabilityand qualifications by integratingemployee data directly from yourHR software (SAP or non-SAP)

Use the analytical tools providedin SAP RPM to forecast resourcebottlenecks, highlight neededresource types, and compareavailable resources against thoserequired

Identify future staffing needs andtake appropriate action

Plan long-term resources for theentire portfolio along a time axisand allocate them on the basisof the capacities and qualifications

needed (Note: You can reusethese plans at a later stage foroperational resource planning incProjects.)

Leverage a user-friendly, cross-project service staffing table orfast-entry screen

Plan and monitor the allocation ofresources using various reports onresource requirement, assignment,and availability

Portfolio performance and

program monitoring Leverage data from underlying

software systems (includingproject management, idea manage-ment, HR, and financials) andincorporate it in a portfolio cockpitthat provides a clear overviewof status, resourcing, work orrevenue pipeline, and plannedversus actual costs

Gain transparency into upcomingwork and costs over time by rolling

up the work breakdown structure

(WBS) data from underlyingprojects

View status and drill down intounderlying details on projectsor service areas directly fromthe portfolio dashboard, and then

update selected metrics directlyfrom the dashboard and synchro-nize changes

Set up a virtual collaboration roomin which project members, stake-holders, and team members canmaintain threaded discussions inchat rooms; work together ondocuments; and view project calen-dars, status of risks, or other issues

Send notifications to team membersand stakeholders when information

is updated or changes are made

Offering Complete Transparency

Without transparency and enforceablegovernance, projects and operationsmay be executed inconsistently or,worse, incorrectly. SAP RPM providesyou with clear, comprehensive, andup-to-date information on your entireportfolio and supporting resources,enabling your enterprise to achievethe following advantages:

Accelerate time to market fornew productsFor product development organiza-tions, you can streamline the captureand assessment of new productconcepts, assign the necessaryresources to only the most appealingprojects, expedite and enrich thegate-review process, and coordinatedownstream launch and supply chainactivities, removing obstacles and

speeding products to market.

Optimize your portfolioBring your portfolio in line with corpo-rate objectives. Direct resources andbudget to key corporate directivesand fund or staff only those initiativesthat score high against these priori-

ties. SAP RPM provides support formultiple scoring models, enablingdiscreet groups to prioritize withintheir domain. For initiatives thatbenefit multiple organizations, youcan view the priority of an initiativeacross different organizations.

Identify risk early onDifferent kinds of risks and issuesrelated to technical, commercial,resource, or budget concerns can

be created and monitored throughoutthe complete project life cycle. Asprojects progress, you can visualizetrends on risks and other issues,highlighting which initiatives needmore analysis or, possibly, need tobe eliminated.

Reduce administration Preparation typically required for

regular portfolio, project, and pro-gram management office reviewscan be drastically reduced when

stakeholders, managers, projectleaders, and team members all havefingertip access to the data theyneed. Whether you want to supporta gate meeting or decide on fundingfor a new proposal, SAP RPMrolls up and readily accesses andproduces needed information fromsource systems, empowering youto make well-informed decisions.



9/20

cPROJECTS AND cFOLDERSFOCUSING ON EFFECTIVE PROJECT MANAGEMENTAND COLLABORATION

customers. cProjects helps you dealefficiently with the difficulties youencounter in executing IT and technol-ogy projects, developing products andsoftware, providing professional ser-vices, or initiating other time-critical,

gated projects.

SAP provides cProjects for collabora-tive project management and cFoldersfor design collaboration. cProjectshelps you standardize and improveproject management execution andreduce associated administrative andsystem costs by providing robustproject management functions thatcan be deployed independently orintegrated into base systems, including

HR and financials. As part of abroader portfolio management offering,cProjects allows you to structureyour projects into discreet phases sothat, well in advance of their completionor launch, you can leverage phase-acceptance checklists or qualitygates to identify issues, risks,and obstacles at an early stage. Byfacilitating the communication of thiscritical information to stakeholdersand partners, you enable moreinformed go-versus-hold decisions.

The cFolders application helps youimprove the consistency of your datawhen communicating with external part-ners, and this consistency acceleratesproject implementation. For example,you can set up collaboration teamsto exchange documents, materialdata, and product structures overthe Internet securely. Both cFoldersand cProjects are compatible withthe document management system

in SAP ERP.

cProjects is a Web-based, flexible,and intuitive project managementapplication that is specifically gearedtoward development, consultancy, andIT projects. It can also map qualityimprovement projects which use

methodologies such as Six Sigma.One key advantage of cProjects is thatit works well with the SAP ERP func-tions for accounting, HR, customerrelationship management, supplierrelationship management, product datamanagement, and sales-order process-ing. In addition, you can link yourproject structures in cProjects withexisting work breakdown structuresin SAP ERP (specifically, the projectsystem component), which allows you

to better plan your costs and expendi-tures, avoid resource bottlenecks,analyze projects, and settle relatedcosts. Used in this way, cProjectssupplements SAP ERP by providingmore flexible project managementfunctions.

cProjects allowseveryone in the project

chain to have all rele-vant information athand and to integrateall components asrequired, even acrossgeographic divides.

Project managers know the story well:costs are spiraling, suitably skilledemployees are unavailable, and com-munication among team membersis poor. Against this backdrop, youwant to implement new processmethods and procedures and run yourprojects with rigorous standards so

you can meet the expectations of your



10/20

Team collaboration cFolders lets you cooperate with

external partners by exchangingdifferent objects and documents. Forexample, by integrating the back-endof cFolders with SAP ERP, you can

transfer revised bills of materialdirectly to SAP ERP. You can alsoset up a virtual collaboration roomfor various components of a project a place where project members canexchange information.

Project status reports With cProjects, you can collate

project data into status reports,compiled as interactive Adobe PDFforms. The forms can either be

generated by cProjects or used toupdate project data in cProjects. Youcan store the forms in cProjects orthe document management systemin SAP ERP or have cProjectsworkflow sent automatically to teammembers via e-mail.

Document management

You can save project-related docu-ments, such as CAD drawings orminutes of meetings, directly incProjects, in cFolders, or in the docu-ment management system, wherethey are available for collaborativework. In meetings, cFolders enablesyour team to work together on docu-ments, display changes on screen,and create different document ver-sions. A uniform WebDAV-enabledinterface allows you to connectWebDAV clients to the document

repository.

Project versions With cProjects, you can use project

templates to create project versionsfor operational projects. And youcan take snapshots and displaysimulations of how specific changesimpact an operational project.

Comprehensive authorizationfunctions

At the project and document levels,you can use cProjects to assign

To meet the long-termgoals and short-term

objectives thatkeep your companycompetitive, you needto manage portfolios,projects, and opera-tions holistically andefficiently.

Providing a Broad Range ofProject Management Functions

As an operational project managementapplication, cProjects covers the entirerange of project management activities

from planning to implementation toproject closeout. You can also seam-lessly orchestrate portfolio planning(top-down and bottom-up) processesby integrating it with SAP RPM. Thisallows you, for example, to manageyour high-level resource demand bydistributing resources to operationalprojects. In doing so, you can meet theneeds of your entire project and port-folio management processes, fromindividual projects to the more granular

portfolio and from period planningthrough project conceptualization andsuccessful implementation.

To manage projects, you rely on thefollowing key functions of cProjectsand cFolders:

Project structuring(Note: Project structuring incProjects is shown in Figure 2.)

The cProjects function: Lets you compile tasks and check-

lists for all project phases or useproject and project checklist tem-plates to standardize procedures

Allows you to plan deadlines foryour tasks, link them with relation-ships, and use a number of methodsto calculate your project deadlines

Includes an interactive Ganttdiagram, which represents projectplans graphically so that you cancheck whether all required activitieshave been carried out before you

release the current phase and moveon to the next



11/20

additional authorizations for individualusers, user groups, and organiza-

tional units.

Multiproject management Project tasks often rely on other

activities. With cProjects, you canmap these cross-project dependen-cies in your project structure.

Project overview and evaluations cProjects contains a user-friendly

project dashboard, which providesyou with clear, personalized access

to your projects. You can viewthe status of your projects at a

glance before you start processing.Powered by SAP NetWeaver,

cProjects also provides you withcomprehensive reports and evalua-tions, both in the SAP NetWeaverBusiness Intelligence componentand in cProjects itself.

Portfolio management Because cProjects is integrated

with SAP RPM, it provides you witha clear overview of all your projectsand key figures, allowing you tomonitor and prioritize your projects

quickly.

Figure 2: Project Structure in the cProjects Application

Integrated resource management To ensure project success, it is

vital that you allocate and use yourresources optimally. In cProjects,you can search for project memberswith the required profile and assigna suitably qualified employee to aspecific role. And you can draw ondata that is directly linked with busi-ness partners and the qualificationscatalog of the SAP ERP HumanCapital Management (SAP ERPHCM) solution. Business partneravailability (indicating a persons

absence because of medical leave,vacation, part-time schedule, and



12/20

so forth) is another very useful pieceof HR data you can access viacProjects. You can also use cProjectsto assign external resources to your

project, via its connection to the SAPSupplier Relationship Managementapplication for services procurement.A separate component, the workforcedeployment tool, offers resourcemanagers additional functions thatsupport planning and the assignmentof staff to multilevel projects.

Alignment with accounting cProjects is closely aligned with the

SAP ERP Financials solution. You can

assign project tasks in cProjects to

different account assignment objects,such as internal orders or WBSelements in the project system, toprovide detailed, hierarchical cost-

controlling functions. And you cancall up planned or actual comparisonsfor your costs at any stage.

Assignment of staff to multilevelprojectsMultilevel controlling enables youto build flexible relationships betweencProjects tasks and their relatedaccounting objects. Thus you canstructure the cProjects tasks underproject management considerations

and at the same time use a different

structure such as the projectsystem component to fulfill youraccounting and controlling require-ments, as shown in Figure 3.

Integration with SAP Customer

Relationship ManagementThe project management functionsin cProjects work well with theopportunity management functionsin the SAP Customer RelationshipManagement application, whichprovides support during the projectacquisition phase.

Integration with time managementand SAP Travel ManagementYou can record time spent on project

tasks quickly using either cross-application time sheets or Duet soft-ware (which enables you to recordtime directly in your MicrosoftOutlook calendar). BecausecProjects is directly connected withSAP ERP HCM, you can incorporateany recorded time inputs into yourproject for evaluation and thenpost them to the relevant account-assignment object. The same appliesto travel expenses in the SAP TravelManagement application.

Ability to leverage SAP NetWeaverPortalcProjects leverages the SAPNetWeaver Portal component. SAPprovides additional predefined self-services for the portal, allowing casualusers in particular to access cProjectsdata quickly. SAP NetWeaver Portalleverages the latest industry stand-ards to enable maximum interoper-ability between SAP applications and

other portal-based applications.

Project Manager

cProjects for ProjectPlanning and Execution

Work Breakdown Structurefor Project Controlling

Annual Audit 2005for Client XYZ

Project Accountant

cProjects 4.00 SAP ERP 6.0

Preliminary Audit

Main Audit andDebriefing

Preliminary Audit: Define Audit Scope Preliminary Audit

Main Audit:

Main Audit

Debriefing:

Debrief Client

Project Header

Project and Engagement Service DeliveryProject Management

AccountA

ssignmentManager(n:1relationship)

Annual Audit 2005Billing Element

Figure 3: Multilevel Controlling: Relationship Between cProjects and the Project SystemComponent

12 SAP Solution in Detail SAP Product Lifecycle Management12


13/20

Detailed progress trackingAs soon as a project has kicked off,you can confirm activities, compilechecklists, and release individualproject phases. This means you cansee at a glance how much work

remains to be carried out. You canalso take advantage of results-analysis methods used by establishedauditors. cProjects provides 15valuation methods such as workin progress and percentage of com-pletion as standard. You can modifythese methods at a later stage tosuit your specific requirements.

Efficient use of resourcesYou assign employees at the righttime to the right place (and from the

right pool), enabling them to achievetheir full potential. You also enableemployees to apply for vacant projectroles, which can increase theirmorale.

Implementation of best practicesUsing cProjects as a cross-enterpriseproject management tool allows youto implement process methods inline with industry standards such asthose from the International Stan-dards Organization ISO 9001 andISO/TS 16949 and pursue a uni-

form project approach. cProjects is aflexible application and can incorpo-rate continued process improvementto create the optimal process.

Team Collaboration:The Key to Success

cProjects enables you to steer andimplement your projects efficientlyacross enterprise boundaries so you

can react quickly to market require-ments and realize the followingbenefits: Increased execution speed and

lower costsThe project templates in cProjectsenable you to standardize projectexecution processes and optimizetasks. This speeds up implementa-tion and reduces administrativeburden, saving you time.

Integration of information from

a wide variety of areascProjects provides seamless align-ment with a wide range of SAPsolutions in particular, SAP ERPfunctions for logistics, accounting,and HR. All internal project membershave rapid access to information thatis relevant to them, such as customerinformation, financial data, andproject evaluations.

Improved cooperation with partnerscFolders allows you to exchange in-formation with external partners easily

and efficiently using the Internet.This means that all parties involvedhave the same level of knowledge,which boosts transparency.

Identification of problems atan early stagecProjects collects key informationfrom different software systemsand automatically sends notificationsshould critical metrics related tocosts, scheduling, and resourceallocation exceed predefined

variances.



14/20

SAP ERP lets you track and accesscertain aspects of project manage-ment, such as controlling, by efficientlymonitoring overhead costs, invest-ments, engineering, and productionprojects. For example, if you want to

plan, implement, and evaluate a com-plex project, the relevant processes callfor in-depth integration with accounting,purchasing, sales, and production data.SAP ERP helps you manage the projectthrough its entire life cycle, from settingup a structure, to drawing up detailedplans, to implementing and completingthe project.

You can use WBS, networks, andmilestones in SAP ERP to structure

the project and determine its timeschedule. These tools help you plandeadlines, resources, documents,and materials as well as project costsand revenue.

To guide you through project implemen-tation, SAP ERP provides a numberof functions for production, externalprocurement of materials and services,billing, and cost and activity allocation.It also lets you record confirmations using time sheets, for example and

analyze progress. And it provides abudget management function to helpyou prevent overspending before itactually occurs.

How does this benefit your enterprise?By allowing you to plan, monitor, andsteer project costs and revenue as wellas optimize project cash flow. As aresult, you can better manage timeschedules and materials and optimizeuse of your labor and machinery.

Managing Project Phases

SAP ERP contains a wide variety offunctions you can use to meet thespecific needs of your enterprise anddeal optimally with the different phases

in a project. The following list highlightsseveral of these functions:Time scheduling

Manually plan and monitordeadlines

Automatically identify deadlinesand floats on the basis ofplanned activities and interrelatedschedules

Resource planning Determine the internal resources

required (for labor, production, and

assembly, for example) and analyzeavailability Optimize these resources using

capacity leveling Allocate planned tasks to people,

positions, or HR organizationalunits for exact periods

Plan required external procurementand trigger corresponding purchas-ing processes

Material planning Plan, steer, and monitor the prompt

procurement and use of materials

Use procurement processes inpurchasing or materials planning

Project controlling Choose different cost- and

revenue-planning options Allocate budgets hierarchically

for relevant projects and monitoruse of allotted funds

Compare costs and revenue ona fixed basis to determine the out-come of a project (profit and loss)at an early stage; plan and analyze

project-related payments

By using SAP RPMas a single source ofinformation for yourIT system, you can

optimize synergiesacross the enterprise,focus on specificanalytical results, andthen prioritize theseresults accordingly.

Integrate data with controlling,investment management, and salescomponents (for example, bytransferring targeted values fromsales orders to correspondingprojects)

Progress tracking Assess project status and measure

progress by analyzing actual data(costs, deadlines, and capacities)and comparing it with targeted data

Draw up forecasts of projectprogress as far as projectcompletion based on key datesand rescheduled deadlines

Monitor and steer projects usingstandard procedures such asprogress analysis, milestone-trend

analysis, and cost forecasting Use the progress analysis work-bench as a single point of accessfor analyzing project status andrecording the degree of processing

SAP ERP: PROJECT SYSTEM FUNCTIONALITYPLANNING AND CONTROLLING PROJECTSEFFICIENTLY



15/20

Project evaluation Evaluate individual projects, project

parts, or several projects together Carry out standard, routine

evaluations and draw up reportson special issues

Format and analyze up-to-dateproject data from different view-points in a transparent andcomprehensive manner

(Note: Project evaluation is describedin Figure 4.)

SAP ERP, with its project systemfunctionality, also lets you carry outthe following activities: Access all project-related documents

such as CAD drawings, pixel graph-

ics, and contracts using documentmanagement system functions Document the status of project

tasks using confirmations, and usethese confirmations to forecastfuture progress

Identify deviations from project plans,determine responsibility, and planfollow-on costs and activities usingclaims management functions

Use simulation versions to replicateand save changes to a project with-out impacting day-to-day business

Make versions of projects at a partic-ular stage, or use project versions todocument the status of a project ata particular time or when a specificaction is carried out

Transfer material components froma bill of materials or from the productstructure of the integrated productand process engineering function tothe project system component; usethe open catalog interface from SAPto assign materials from internal or

external Internet catalogs to projects

You can modify the powerful andcomprehensive project managementsoftware in SAP ERP to meet yourindividual company needs and achieve

the following:Structure projects clearly

Through WBS, you can structureyour projects into hierarchies anddefine their organizational setup.And you can use networks to mapcomplex procedures and interrelatedschedules of individual tasks.

Optimize use of resourcesYou can determine requirements ofinternal and external resources sothat you can plan available internal

capacities flexibly and efficiently.

Optimize materials managementBy planning and monitoring materialrequirements and procurement costs,you can procure required materials

on time and within budget.Incorporate project costs into

enterprise controllingBecause the project system compo-nent is compatible with componentsfor controlling, accounting, materialsmanagement, and sales and distri-bution, you can incorporate projectcosts into enterprise controlling.The cash management functionallows you to plan and monitor theflow of payments on a project-specific

basis.

Figure 4: Managing Projects in the Project System Component



16/20

AUTOMOTIVE INDUSTRYMANAGING NEW PRODUCTDEVELOPMENT PROJECTS

Companies in a variety of industriesmust manage projects and portfoliosboth strategically and operationally.Car manufacturers, in particular, faceever-increasing pressures to reducetime in the product development pro-

cess, improve vehicle quality, and drivethe independent development of com-ponents. SAP ERP and cProjects allowmanufacturers to accelerate develop-ment projects, helping them reducecosts and improve cooperation withpartners.

Component suppliers also play anincreasingly significant role in automo-tive industry development. Manufactur-ers demand not only that suppliers

complete components on time but alsothat they adhere to standards suchas ISO/TS 16949 and keep spiralingcosts under control. Using cProjects,manufacturers can map advancedproduct quality planning measures,generate a phase-oriented processmodel, monitor their project costs,and exchange data efficiently withsuppliers and customers.

Car manufacturers use increasinglycomplex repetitive development pro-

cesses. SAP ERP can help expeditethem, since it is closely interlinked withproduction, procurement, and capacityrequirements planning.

In many companies, it is often difficultto pinpoint who is doing what andwhen. Thanks to the WBS in theproject system component, this is nolonger a problem. Manufacturers canorganize projects hierarchically in dif fer-ent parts (for example, for developing

gearboxes or interiors) and then decide

whether to use internal or externalresources for implementation. By com-paring target and actual data, they cankeep a steady eye on how the projectis progressing.

The phase-oriented process modelavailable in cProjects identifies cleartasks, checklists, and responsibilities.Using cProjects and cFolders, manag-ers in automotive plants can work incollaborative teams to exchange projectplans, engineering and design docu-ments, and bills of material with otherenterprises. This helps them improvethe consistency of their product dataand accelerate project activities. Allparties involved in the exchange have

the same level of knowledge, whichincreases transparency and optimizesquality. As every manufacturer knows,recall campaigns are expensive anddamage a brands image. To avoid themand keep projects on track, all partiesinvolved must work together construc-tively, even if they are scattered acrossthe globe. cProjects allows everyone inthe project chain to have all relevantinformation at hand and to integrate allcomponents as required, even acrossgeographic divides.

cProjects complements the functionscarried out via the project system com-ponent. It carries out operationalproject planning tasks in the develop-ment process while SAP ERP dealswith project controlling. For more com-plex production processes that requirein-depth integration with logistics, man-ufacturers can implement the SAPERP software on its own to achieve thecomprehensive range of functions

needed for successful implementation.



17/20

PROFESSIONAL SERVICES INDUSTRYMANAGING FIXED-PRICE PROJECTS

Today, consulting projects are increas-ingly implemented on a fixed-pricebasis. This means that consultingcompanies must calculate the exactinputs required for a project, cost-efficiently assign staff to handle them,

and effectively implement activities.They also need to keep tabs on projectcontrolling, optimize cooperation withpartners, and identify business oppor-tunities at an early stage.

The user-friendly interface of cProjectsincorporates the functions consultingfirms need to meet these challenges.In the acquisition phase of a consultingproject, company managers can usethe sales and marketing tools in

cProjects to record the needs of exist-ing and potential customers and offerservices on their companys owninitiative. They can also align cProjectswith SAP Customer RelationshipManagement to ensure that projectplanning is coordinated with the salesprocess. cProjects helps them carryout costing tasks and revenue planning.For example, it lets them calculatetravel expenses to the project locationand determine whether it is more cost-effective to assign internal or external

employees. cProjects also enablesmanagers to draw up realistic quota-tions that incorporate their experiencefrom previous projects and basedon the close alignment of cProjectswith SAP ERP generate quotationsautomatically.

During the project planning phase,cProjects allows a consulting organiza-tion to select consultants based onqualifications, availability, and costs,

ensuring the organization always

assigns the consultants most suitedto the task. With cProjects, companymanagers get an up-to-date overviewof their employees workload andqualifications. In addition, they caneasily define a project structure by

specifying phases, milestones, andtasks and assigning people to beresponsible for these project elements.Via cProjects, consultants can confirmtheir activities throughout the courseof the project, providing a transparentoverview of progress and of remainingwork from the point of view of botha project manager and a projectcontroller.

In cProjects, a consulting firm can

define project standards and recordmethods. In this way, it can standardizeproject management procedures,accelerating project implementationand reducing costs.

The firm can also ensure that a projectadheres to required quality standards.cFolders allows improved collaborationwith external partners, enabling all par-ties to create, change, and exchangedata especially to exchange product-related data as technical documents

and bills of material.

Because cProjects integrates withSAP ERP, it allows a consulting firm toautomatically transfer information oncost trends to accounting. This simpli-fies project controlling and enablesthe firm to settle accounts quickly andprecisely. In addition, it ensures theproject-assessment methods usedcomply with external auditing standards.Consulting firms can use cProjects

in the services sector worldwide.

SAP RPM, too, is often used for strate-gic planning in consulting firms. Itenables consultants to develop long-term plans for business areas andprojects. These strategic revenue plansand resource plans are defined in SAPRPM, and actual projects are then cre-ated in cProjects and tracked againstthe firms portfolio.

For example, consulting companiesmust be able to pinpoint the currentstatus of each project in their entireproject portfolio. The project dashboardin SAP RPM contains a traffic-light iconthat displays the status of a projectand informs the project manager if thestatus becomes critical. This allows amanager to react quickly and prioritizeactivities as required.



18/20

IT INDUSTRYMANAGING AN IT PROJECT PORTFOLIO

Establishing a birds-eye view of yourIT portfolio gives your enterprise astrategic edge: it helps you identifyconflicting project objectives andensures that all IT projects target yourcorporate objectives. Because SAP

RPM is also closely aligned with SAPERP HCM, you can staff assignmentsoptimally, based on employees qualifi-cations, availability, and experience.Enterprise resource managementfunctions help you coordinate person-nel planning and select employees onthe basis of their suitability to a role.

Your IT managers must create a scopefor investment. The more cost-cuttingpotential they achieve, the easier it will

be for them to generate valuable funds.They need an enterprise solution thatis aligned with financials and HR forproject and portfolio management one that helps identify costs and theirtriggers, enabling you to combat over-spending and tap cost-cutting opportu-nities early.

IT plays a strategic role in all enter-prises, underpinning far more than justoperational business processes suchas financial accounting and controlling.Today, IT systems are also used toimplement corporate strategies and

map innovative processes.

Comprehensive IT portfolio manage-ment is critical to a companys suc-cess, but many companies yours maybe one find it difficult to keep track ofhow IT projects are being implemented.Some opt to use several solutions tomanage their IT projects and opera-tions, making it difficult to establishwhich system provides the most accu-rate and precise data. By using SAP

RPM as a single source of informationfor your IT system, you can optimizesynergies across the enterprise, focuson specific analytical results, thenprioritize these results accordingly.

SAP RPM includes an operationalproject management component,cProjects. It can also be used tointegrate information from other projectmanagement software (for example,the project system component in SAPERP, Microsoft Project, or other soft-

ware). This allows you to continuouslymonitor your entire portfolio andrecognize particularly promising oppor-tunities. Moreover, it optimizes thetransparency of partner implemen-tations, which is a crucial advantagegiven that IT activities are often carriedout by third parties, require large-scaleinvestment, and by their very natureare difficult to monitor.

Establishing a birds-eye view of your port-

folio gives your enter-prise a strategic edge:it allows you to identifyconflicting projectobjectives and ensurethat all IT projectstarget your corporateobjectives.



19/20

Building a solution for strategic andoperational project and portfolio man-agement on compatible SAP softwarefunctions and applications lets youconstantly monitor the status of yourproject activities, pinpoint at a glance

the resources assigned to projects, andprioritize analytical results as required,in line with corporate strategy. Yoursolution gives you the fundamental andreliable information required for plan-ning and decision making and ensuresthat your project portfolio is constantlygeared toward corporate objectives.And because the software is based onthe SAP NetWeaver technology plat-form, it can be easily combined withother complementary SAP applications

and solutions for example, SAP ERP,SAP Customer Relationship Manage-ment, and SAP Supplier RelationshipManagement as well as with solu-tions developed by other softwareproviders.

For more information on managingprojects and portfolios via comple-mentary SAP applications, go towww.sap.com/solutions/business-suite/plm/resource-and-portfolio-management-software/index.epx.

Or send an e-mail viawww.sap.com/contactsap.

Because your soft-ware for project andportfolio management

is based on SAPNetWeaver, it caneasily be integrated

with other SAP appli-cations and solutionsas well as with solu-tions developed byother softwareproviders.

AN EFFICIENT SAP SOLUTIONLAYING THE FOUNDATION FORSUCCESSFUL PORTFOLIOS



20/20

QUICK FACTS www.sap.com/contactsap

50 079 142 (08/04)2008 by SAP AG.

All rights res erved. SAP, R/3, xApps, xApp, SAP N etWeaver,Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and otherSAP products and services mentioned herein as well as theirrespective logos are trademarks or registered trademarks of SAP AGin Germany and in several other countries all over the world. Allother product and service names mentioned are the trademarks oftheir respective companies. Data contained in this document servesinformational purposes only. National product specifications may vary.

These materials are subject to change without notice. These materialsare provided by SAP AG and its affi liated companies (SAP Group)for informational purposes only, without representation or warranty ofany kind, and SAP Group shall not be liable for errors or omissions withrespect to the materials. The only warranties for SAP Group productsand services are those that are set forth in the express warrantystatements accompanying such products and services, if any. Nothingherein should be construed as constituting an additional warranty.

SummaryIs your organization in sync with your overall corporate strategy? Are you running projectsand operations efficiently? Why not leverage new and existing SAP software to build a solu-tion for portfolio and project management? By basing your solution on complementary SAPapplications and functions, you can keep your activities in line with corporate objectives,prioritize and monitor project activities, and gain quick access to the resources and informa-tion you need to complete these activities as scheduled.

Challenges Keep execution aligned with corporate strategy Prioritize activities based on their contribution to the companys bottom line Optimize dont waste precious resources Adhere to budgets and schedules Assess progress and risks

Supported Business Processes and Software Functions Cost control Provide access to project cost-controlling data 24x7 Project monitoring Track production processes efficiently; send critical alerts when

necessary Transparency Access the data you need when you need it to enable better decision

making

Business Benefits Lower costs Improved resource efficiency Better internal and external collaboration Improved monitoring of project or service status and portfolio performance Alignment of activities, resources, and budgets with business priorities

For More InformationCall your SAP representative or visit us online atwww.sap.com/solutions/business-suite/plm/index.epx.

SAP PPM Solution in Detail

Documents

Transcript of SAP PPM Solution in Detail