Project Manufacturing
(Engineer To Order) in SAP
managed by Noveco solutions
Project Manufacturing – Engineer To Order
Characteristics of Engineer To Order (ETO)
•
The final product is always unique. It contains
standard components and assemblies
purchased or manufactured in-house as well as
customer specific assemblies.
•
There is a high degree of engineering for
customer specific requirements.
•
Cost Estimation is done based on costs of
standard assemblies, components, costs of
engineering plus cost of manufacturing of a
final product.
•
•
The final design may not be completed before
project starts.
The final cost may be different from initial
estimates due to design or engineering change
or due to manufacturing mistakes.
Made to
Customer Order
ETO
Manufacturing of
Standard
Assemblies
Purchased items
or Made to Stock
Project Manufacturing – Engineer To Order
Key requirements for Financial Control
•
•
Estimating must include:
–
cost of manufacturing of standard assemblies
–
cost of engineering & design and sub-contracted costs
–
cost of fabrication of customer specific requirements
–
risks and contingencies etc.
ETO Cost Breakdown
Manufacturing
to Customer
Order
Project Monitoring and Forecasting:
–
create detailed project cost plan from the approved
estimate
–
capture engineering costs as manufacturing project is
in progress
–
roll up manufacturing costs to project WBS at any time
during project execution
–
include engineering and design changes into project
budget, forecast and revenue plan
–
update project forecast Cost To Complete and
Estimated At Completions (EAC)
–
calculate project progress based on engineering and
manufacturing progress
Plant Stock
Engieneering
Purchased
Servcies
Purchased
Components
Manufacturing
Standard
Assemblies
Project Lifecycle Management
in SAP : Project Execution
Estimation
Reporting
Planning
Variations
Cost
Distribution
Forecasting
Execution
▾
▾
▾
•
Project Structures
•
Procurement
•
Goods & Service Receipts
•
Time Sheets
•
Vendor Invoices
•
Customer Billing
•
Payments
•
Settlement
Actual Costs & Revenues
Open Purchase Orders
Execution
Cost
Distribution
Planning
Forecasting
!
Estimation
≈
Variations
Reporting
Scheduling
•
Estimates / Bidding Process
•
Project Planning
•
Dates Scheduling (Gantt Chart)
•
Cost Distribution (time phasing)
•
Financial Forecasts
•
Change and Risk Management
•
Progress
•
Reporting
not in SAP : Project
Planning, Forecasting,
Variation Management,
Reporting etc.
ETO Project Lifecycle
Tendering and Planning phase
Estimating
Costs and
Revenues
• Respond on
customer
Tenders
• Create Estimates
from existing
templates
• Flexible
hierarchical
structure
• Price calculation
on materials,
BOMs, Product
Costing, services,
external and
internal labour
• Calculate
additions on
Risks,
Contingencies
Price Escalations
• Add Profit Margin
to calculate Sales
Contract Value
• Initiate
procurement of
long lead items
Sales
Contract
• Create Sales
Contract in SAP
from approved
Estimate
Project
Planning
• Create Project
structure
• Generate Cost &
Revenue
planning from
approved
Estimate
• Revenue Plan
generated from
Sales Contract
• Project
scheduling with
Gantt Chart
• Distribute Costs
and Revenue
along project
time line
• Simulate Project
Cash Flow
• Simulate
availability of
internal
resources (e.g.
engineers,
project managers
etc.)
Project Execution Phase
Resource
& Capacity
Planning
• Simulate
Availability of
Resources and
Capacities
• Allocate
resources to
project WBS
elements and /
or network
activities
• Allocate project
WBS elements
and / or
network
activities to
Work Centers
Procurement
Materials &
Services.
Timesheets
• MRP (Material
Requirements
Planning)
• Procurement of
materials,
equipment,
services to
Project
• Time allocation
using CATS
• Project inventory
• Vendor Invoices
• Outgoing
Payments (cash
out)
Project
Forecasting
• Calculate Costs
to Complete (CTC)
and Estimated at
Completion (EAC)
from Actual Costs
and Purchasing
Commitments
• Adjust Forecast
costs and work to
complete
• Redistribute plan
revenue based
on updated CTC
and purchase
commitments
• Progress and
Earned Value
calculation
• Forecast Project
Cash Flow
• Forecast history
• Drill down
reporting
• Run Result
Analysis (profit
recognition) at
month-end based
on the most
recent project
forecasts
Variations &
Risk
Management
Customer
Billing
• Create, Estimate
and Approve
Project
Variations
• Milestone billing
based on Sales
Contract Billing
Plan
• Automatically
update project
Budget, Cost
Forecast and
Revenue plan
from approved
variations
• Resource Related
(Cost Plus) Billing
• Assess project
risks: Threats and
Opportunities
• Simulate
Pessimistic,
Optimistic
scenario impact
on project
profitability
• Variation history
tracking
• Incoming
payments (Cash
In)
Reporting
• Operation project
reporting
• Multi-project
reporting with
graphical KPIs
• Estimate vs
Project Costs
analysis
• Dash-board
Analytics
Project Lifecycle: steps in SAP system
Tendering and Planning phase
Estimating
Costs and
Revenues
• Respond on
customer
Tenders
Sales
Contract
• Create Sales
Contract
Project
Planning
• Create Project
structure
• Create Cost Plan
• Revenue Plan
generated from
Sales Contract
Project Execution Phase
Resource
& Capacity
Planning
Procurement
Materials &
Services.
Timesheets
• MRP (Material
Requirements
Planning)
• Procurement of
materials,
equipment,
services to
Project
• Time allocation
using CATS
Project
Forecasting
• Run Result
Analysis (profit
recognition) at
month-end based
on the most
recent project
forecasts
Variations &
Risk
Management
Customer
Billing
Reporting
• Milestone billing
based on Sales
Contract Billing
Plan
• Plan vs Actual
Reports
• Resource Related
(Cost Plus) Billing
• Purchasing
Commitment
• Incoming
payments (Cash
In)
• Actual Cost Line
Items
• Actual, Plan
Contribution
Margin
• Project inventory
• Vendor Invoices
• Outgoing
Payments (cash
out)
Project System
Business Challenges
Symptoms:
•
•
You use SAP Project System as a cost collector
All planning, forecasting and reporting is done outside of your SAP system
As a result:
•
•
•
•
•
•
High use of excel spreadsheets
No information transparency
No data consistency
Lack of standardization and information accuracy
High efforts during month end process
No real time project reports available
SAP Project System + Noveco ePM
Estimation / Bid
Management
Project Structures
Scheduling & Gantt
Chart
Procurement to Project
Project Cost / Revenue
Plan & Distribution
Project Inventory &
Labour Confirmation
Customer Billing
Vendor Invoicing
Project Financial / Cost
Accounting
Cost Forecast (EAC /
CTC)
Project
System
ePM:
Extended
Project
Management
Variation & Risks
Management
Cash Flow Forecast
Progress Analysis
Settlement
Reports on Actual Costs
and Revenues
Resource & Capacity
Planning
Graphical KPI & Full
Project Reporting
Noveco complements
SAP PS with new
functionality, making it
more powerful and easy
to use.
ETO Project Lifecycle
Tendering and Planning phase
Estimating
Costs and
Revenues
• Respond on
customer
Tenders
• Create Estimates
from existing
templates
• Flexible
hierarchical
structure
• Price calculation
on materials,
BOMs, Product
Costing, services,
external and
internal labour
• Calculate
additions on
Risks,
Contingencies
Price Escalations
• Add Profit Margin
to calculate Sales
Contract Value
• Initiate
procurement of
long lead items
Sales
Contract
• Create Sales
Contract in SAP
from approved
Estimate
Project
Planning
• Create Project
structure
• Generate Cost &
Revenue
planning from
approved
Estimate
• Revenue Plan
generated from
Sales Contract
• Project
scheduling with
Gantt Chart
• Distribute Costs
and Revenue
along project
time line
• Simulate Project
Cash Flow
• Simulate
availability of
internal
resources (e.g.
engineers,
project managers
etc.)
Project Execution Phase
Resource
& Capacity
Planning
• Simulate
Availability of
Resources and
Capacities
• Allocate
resources to
project WBS
elements and /
or network
activities
• Allocate project
WBS elements
and / or
network
activities to
Work Centers
Procurement
Materials &
Services.
Timesheets
• MRP (Material
Requirements
Planning)
• Procurement of
materials,
equipment,
services to
Project
• Time allocation
using CATS
• Project inventory
• Vendor Invoices
• Outgoing
Payments (cash
out)
Project
Forecasting
• Calculate Costs
to Complete (CTC)
and Estimated at
Completion (EAC)
from Actual Costs
and Purchasing
Commitments
• Adjust Forecast
costs and work to
complete
• Redistribute plan
revenue based
on updated CTC
and purchase
commitments
• Progress and
Earned Value
calculation
• Forecast Project
Cash Flow
• Forecast history
• Drill down
reporting
• Run Result
Analysis (profit
recognition) at
month-end based
on the most
recent project
forecasts
Variations &
Risk
Management
Customer
Billing
• Create, Estimate
and Approve
Project
Variations
• Milestone billing
based on Sales
Contract Billing
Plan
• Automatically
update project
Budget, Cost
Forecast and
Revenue plan
from approved
variations
• Resource Related
(Cost Plus) Billing
• Assess project
risks: Threats and
Opportunities
• Simulate
Pessimistic,
Optimistic
scenario impact
on project
profitability
• Variation history
tracking
• Incoming
payments (Cash
In)
Reporting
• Operation project
reporting
• Multi-project
reporting with
graphical KPIs
• Estimate vs
Project Costs
analysis
• Dash-board
Analytics
Project Lifecycle: steps in SAP system
Tendering and Planning phase
Estimating
Costs and
Revenues
• Respond on
customer
Tenders
• Create Estimates
from existing
templates
Sales
Contract
• Create Sales
Contract in SAP
from approved
Estimate
• Flexible
hierarchical
structure
• Price calculation
on materials,
BOMs, Product
Costing, services,
external and
internal labour
• Calculate
additions on
Risks,
Contingencies
Price Escalations
• Add Profit Margin
to calculate Sales
Contract Value
• Initiate
procurement of
long lead items
* Managed by Noveco
Project
Planning
• Create Project
structure
• Generate Cost &
Revenue
planning from
approved
Estimate
• Revenue Plan
generated from
Sales Contract
• Project
scheduling with
Gantt Chart
• Distribute Costs
and Revenue
along project
time line
• Simulate Project
Cash Flow
• Simulate
availability of
internal
resources (e.g.
engineers,
project managers
etc.)
Project Execution Phase
Resource
& Capacity
Planning
• Simulate
Availability of
Resources and
Capacities
• Allocate
resources to
project WBS
elements and /
or network
activities
• Allocate project
WBS elements
and / or
network
activities to
Work Centers
Procurement
Materials &
Services.
Timesheets
• MRP (Material
Requirements
Planning)
• Procurement of
materials,
equipment,
services to
Project
• Time allocation
using CATS
• Project inventory
• Vendor Invoices
• Outgoing
Payments (cash
out)
Project
Forecasting
• Calculate Costs
to Complete (CTC)
and Estimated at
Completion (EAC)
from Actual Costs
and Purchasing
Commitments
• Adjust Forecast
costs and work to
complete
• Redistribute plan
revenue based
on updated CTC
and purchase
commitments
• Progress and
Earned Value
calculation
• Forecast Project
Cash Flow
• Forecast history
• Drill down
reporting
• Run Result
Analysis (profit
recognition) at
month-end based
on the most
recent project
forecasts
Variations &
Risk
Management
Customer
Billing
• Create, Estimate
and Approve
Project
Variations
• Milestone billing
based on Sales
Contract Billing
Plan
• Automatically
update project
Budget, Cost
Forecast and
Revenue plan
from approved
variations
• Resource Related
(Cost Plus) Billing
• Assess project
risks: Threats and
Opportunities
• Simulate
Pessimistic,
Optimistic
scenario impact
on project
profitability
• Variation history
tracking
• Incoming
payments (Cash
In)
Reporting
• Operation project
reporting
• Multi-project
reporting with
graphical KPIs
• Estimate vs
Project Costs
analysis
• Dash-board
Analytics
Project Lifecycle in SAP directly
Scheduling
Estimation
Planning
Reporting
✓
Cost
Distribution
Variations
Forecasting
•
•
•
•
•
•
•
•
Procurement
Goods and Service Receipts
Time Sheets
Vendor Invoices
Customer Billing
Payments
Estimates / Bidding Process
➕
Project Planning
➕
Dates Schedule (Gantt Chart)
➕
Cost Distribution (time phasing)
➕
Resource Planning
Execution
PPM
Settlement
➕
➕
With Noveco you can move the project
management lifecycle and reporting into your
SAP environment, making it excel sheet
free!!
Project Structures
in SAP : Entire Project
Management Lifecycle
BW / BO
High Level Project Capacity
Planning
➕
Financial Forecasts
➕
Change and Risk Management
➕
Cash Flow
➕
Progress, Earned Values
➕
History tracking
➕
Graphical Reporting
Cloud
Analytics
Noveco software add-on to SAP PS
Noveco is a family of seamlessly integrated software components designed to simplify SAP
standard Project System (PS) and enhance it with missing functionality such as cost and
revenue estimating, project cost and revenue forecasting, cash flow forecasting, variation
management, risk analysis, resource planning, graphical reporting
directly in SAP
Noveco enables integrated financial management of your project lifecycle directly inside
your SAP system
Execution
 Estimating
 Planning
 Budgeting
.
.
Forecasting
Efficient
Project
Management
.
.
Monitoring
 Reporting
 Analysis
 Settlement
Project Lifecycle: steps in SAP system
Tendering and Planning phase
Estimating
Costs and
Revenues
• Respond on
customer
Tenders
• Create Estimates
from existing
templates
Sales
Contract
• Create Sales
Contract in SAP
from approved
Estimate
• Flexible
hierarchical
structure
• Price calculation
on materials,
BOMs, Product
Costing, services,
external and
internal labour
• Calculate
additions on
Risks,
Contingencies
Price Escalations
• Add Profit Margin
to calculate Sales
Contract Value
• Initiate
procurement of
long lead items
* Managed by Noveco
Project
Planning
• Create Project
structure
• Generate Cost &
Revenue
planning from
approved
Estimate
• Revenue Plan
generated from
Sales Contract
• Project
scheduling with
Gantt Chart
• Distribute Costs
and Revenue
along project
time line
• Simulate Project
Cash Flow
• Simulate
availability of
internal
resources (e.g.
engineers,
project managers
etc.)
Project Execution Phase
Resource
& Capacity
Planning
• Simulate
Availability of
Resources and
Capacities
• Allocate
resources to
project WBS
elements and /
or network
activities
• Allocate project
WBS elements
and / or
network
activities to
Work Centers
Procurement
Materials &
Services.
Timesheets
• MRP (Material
Requirements
Planning)
• Procurement of
materials,
equipment,
services to
Project
• Time allocation
using CATS
• Project inventory
• Vendor Invoices
• Outgoing
Payments (cash
out)
Project
Forecasting
• Calculate Costs
to Complete (CTC)
and Estimated at
Completion (EAC)
from Actual Costs
and Purchasing
Commitments
• Adjust Forecast
costs and work to
complete
• Redistribute plan
revenue based
on updated CTC
and purchase
commitments
• Progress and
Earned Value
calculation
• Forecast Project
Cash Flow
• Forecast history
• Drill down
reporting
• Run Result
Analysis (profit
recognition) at
month-end based
on the most
recent project
forecasts
Variations &
Risk
Management
Customer
Billing
• Create, Estimate
and Approve
Project
Variations
• Milestone billing
based on Sales
Contract Billing
Plan
• Automatically
update project
Budget, Cost
Forecast and
Revenue plan
from approved
variations
• Resource Related
(Cost Plus) Billing
• Assess project
risks: Threats and
Opportunities
• Simulate
Pessimistic,
Optimistic
scenario impact
on project
profitability
• Variation history
tracking
• Incoming
payments (Cash
In)
Reporting
• Operation project
reporting
• Multi-project
reporting with
graphical KPIs
• Estimate vs
Project Costs
analysis
• Dash-board
Analytics
Integrated Project Management in SAP
* Project Portal / Reporting
* Resource Planning
Profit Take (Result Analysis)
* Noveco Applications
Advanced Analytics
Portfolio Planning (PPM)
Reporting
Analysis
Monitoring
Forecasting
Progress Tracking
* Project Manager Workbench
Planning
Execution
Variations
* Estimate: Cost & Revenue
Create Project
* Schedule Dates
Procurement, Time Sheets
Invoicing, Billing
* Project Variations
Tender Preparation: Cost and Revenue Estimation
Estimate
Configurable
BOM
Quotation
Sales
Order
Engineering &
Design
Cost Estimation:
Standard
BOM
• Preliminary Engineering & Design
• Make To Order using standard BOMs
• Configurable BOMs
• New Customer specific BOMs
• Purchased Components & Equipment
To Be
Engineered
BOM
• Long Lead Procurement items
• Stock Materials and Consumables
Delivery &
Installation
• Internal Labour, Machine, Setup Time
• Service, Sub-contract
Noveco Estimating solution in SAP
• Multi-Level Tree Hierarchy
with work packages and
sub-packages
• Version and Status Control
• BOMs are part of cost
estimation
• Fully integrated with
Project Cost and Revenue
Planning
• Easy and Flexible User
Interface
Noveco Estimating solution in SAP
Example of a Resource Package that will be
further engineered (no BOM exists yet). Its
cost roughly estimated and included in
Tender price
Noveco Estimating solution in SAP
• Example of a BOM of standard component (may be
configurable)
• It is fully costed and included into the Estimate.
• PP orders will consume exact same resources as were
estimated here
Integrated Project Management in SAP
* Project Portal / Reporting
* Resource Planning
Profit Take (Result Analysis)
* Noveco Applications
Advanced Analytics
Portfolio Planning (PPM)
Reporting
Analysis
Monitoring
Forecasting
Progress Tracking
* Project Manager Workbench
Planning
Execution
Variations
* Estimate: Cost & Revenue
Create Project
* Schedule Dates
Procurement, Time Sheets
Invoicing, Billing
* Project Variations
Typical Structure
for Manufacturing (ETO)
Projects
Project Structures for Manufacturing projects
Manufacturing Project (ETO)
Engineering & Design
Motor Kit Assembly
Electrical
Kit Assembly
Fitting & Installation
Final Assembly
Create Project Structure
Sales Order and Project Planning
Sales Order / Contract
Project
✓
Quotation
Sales
Order
• Quotation accepted by customer
• Create Sales Order or Contract
• Terms and Conditions
• Down payment plan
Project Planning:
• Revenue / Billing Plan
• Revenue Plan comes from Sales Order
• Cash Flow of Incoming Payments
• Project Structure: WBS elements,
Network Activities
• Link to Project WBS automatically
generates:
⁃ Revenue Plan
⁃ Cash Flow forecast
• Project Schedule
• Procurement Plan
Generate Cost Plan on Project
Noveco Estimate
1
Project
2
1. Create Estimate
3
4a
2. Create Project
3. Transfer to Project
4. Save Cost Plan
a. via ECP
4b
Cost Plan
(Original Estimate)
Easy Cost
Planning
b. directly
Transfer Cost Estimate to Project
“as engineered”
“as built”
Estimate
Project
Transfer Cost and
Revenue plan to Project
Benefits
✓
Estimate structure may be different
from Project Structure
✓
Labour rates and materials prices are
are up-to-date
✓
Project Structures are designed to
according its tasks and phases and not
to resemble cost structure
✓
Costing details are transferred to Project
and will be consistent with actual costs
collected on a project
✓
Compare Estimated Costs and Actual
Costs or Cost Forecast at any moment
during project execution
Transfer Cost Estimate to Project
• Transfer cost from the Estimate to Project
by drag & drop
• Transferred Costs and Revenue will be
saved as project cost and revenue plan.
• This way you can create project baseline.
Integrated Project Management in SAP
* Project Portal / Reporting
* Resource Planning
Profit Take (Result Analysis)
* Noveco Applications
Advanced Analytics
Portfolio Planning (PPM)
Reporting
Analysis
Monitoring
Forecasting
Progress Tracking
* Project Manager Workbench
Planning
Execution
Variations
* Estimate: Cost & Revenue
Create Project
* Schedule Dates
Procurement, Time Sheets
Invoicing, Billing
* Project Variations
Project Scheduling with
Noveco Fiori Gantt Chart
Before: Project Scheduling
Before project is
scheduled
Before: Project Scheduling
Set Start or Finish Dates
and click ‘Schedule’
• A full Scale Project
scheduling
functionality in SAP PS
by Noveco
• Gantt Chart with buildin scheduling, drag &
drop function
• Automatic cost
distribution based on
new dates
• Complete and
seamless integration
with Project Dates and
Cost Plan in PS
After: Project Scheduling
Dates are scheduled and
costs are automatically
distributed
Project Scheduling
• You can Drag & Drop
WBS structure
• It will move all subelements of that WBS
to new dates
Project Scheduling
As a result only WBS subelements dates have
changed
Project Scheduling
• You can Drag & Drop
Network Header
• It will move all
network activities that
are linked with
relationships to new
dates across different
WBS elements
Project Scheduling
As a result all activities
linked with relationships
rescheduled with new
dates
Project Scheduling
• You can change
duration, start or
finish dates of an
activity by dragging its
edges left or right
• New dates will be
determined for all
dependent network
activities
Project Scheduling
• New dates are
recalculated for all
dependent activities
• New dates redetermined for
corresponding
network headers and
WBS elements
After: Project Scheduling
After new dates are
recalculated costs are
re-distributed
After: Project Scheduling
Project Lifecycle: steps in SAP system
Tendering and Planning phase
Estimating
Costs and
Revenues
• Respond on
customer
Tenders
• Create Estimates
from existing
templates
Sales
Contract
• Create Sales
Contract in SAP
from approved
Estimate
• Flexible
hierarchical
structure
• Price calculation
on materials,
BOMs, Product
Costing, services,
external and
internal labour
• Calculate
additions on
Risks,
Contingencies
Price Escalations
• Add Profit Margin
to calculate Sales
Contract Value
• Initiate
procurement of
long lead items
* Managed by Noveco
Project
Planning
• Create Project
structure
• Generate Cost &
Revenue
planning from
approved
Estimate
• Revenue Plan
generated from
Sales Contract
• Project
scheduling with
Gantt Chart
• Distribute Costs
and Revenue
along project
time line
• Simulate Project
Cash Flow
• Simulate
availability of
internal
resources (e.g.
engineers,
project managers
etc.)
Project Execution Phase
Resource
& Capacity
Planning
• Simulate
Availability of
Resources and
Capacities
• Allocate
resources to
project WBS
elements and /
or network
activities
• Allocate project
WBS elements
and / or
network
activities to
Work Centers
Procurement
Materials &
Services.
Timesheets
• MRP (Material
Requirements
Planning)
• Procurement of
materials,
equipment,
services to
Project
• Time allocation
using CATS
• Project inventory
• Vendor Invoices
• Outgoing
Payments (cash
out)
Project
Forecasting
• Calculate Costs
to Complete (CTC)
and Estimated at
Completion (EAC)
from Actual Costs
and Purchasing
Commitments
• Adjust Forecast
costs and work to
complete
• Redistribute plan
revenue based
on updated CTC
and purchase
commitments
• Progress and
Earned Value
calculation
• Forecast Project
Cash Flow
• Forecast history
• Drill down
reporting
• Run Result
Analysis (profit
recognition) at
month-end based
on the most
recent project
forecasts
Variations &
Risk
Management
Customer
Billing
• Create, Estimate
and Approve
Project
Variations
• Milestone billing
based on Sales
Contract Billing
Plan
• Automatically
update project
Budget, Cost
Forecast and
Revenue plan
from approved
variations
• Resource Related
(Cost Plus) Billing
• Assess project
risks: Threats and
Opportunities
• Simulate
Pessimistic,
Optimistic
scenario impact
on project
profitability
• Variation history
tracking
• Incoming
payments (Cash
In)
Reporting
• Operation project
reporting
• Multi-project
reporting with
graphical KPIs
• Estimate vs
Project Costs
analysis
• Dash-board
Analytics
Integrated Project Management in SAP
* Project Portal / Reporting
* Capacity Planning
Profit Take (Result Analysis)
* Noveco Applications
Advanced Analytics
Portfolio Planning (PPM)
Reporting
Analysis
Monitoring
Forecasting
Progress Tracking
* Project Manager Workbench
Planning
Execution
Variations
* Estimate: Cost & Revenue
Create Project
* Schedule Dates
Procurement, Time Sheets
Invoicing, Billing
* Project Variations
Capacity Evaluation on Work Centers
Projects
Work Centers
WC Hierarchy
Welding
Assembly
Paint
March
April
May
June
July
August
September
October
Cross Project Capacity Planning on Work Centers
• Check Work Centers Available
Capacity before committing
delivery date
• Cross Project High level
planning and capacity
evaluation
• Does not require PP orders
capacity loading
Work Centers
Resource Planning
• Resource Planning is performed directly in
SAP PS using the most up-to-date
information about project resource
requirements
• Available hours are read from person’s SAP
HR Work schedule taking into account
normal hours, planned holidays, existing
allocations.
• Cost Plan on a project defines required
resources (e.g. Engineer, Draftsman, Project
Manager), which are related to persons
default activity type defined in HR master
record
• Project WBS or NWA resource requirements
can be shifted (if their requirements are not
committed) to periods with available
resources
• Resources can be allocated as individual
persons or as a group of resources (Position
or even an entire Work Center can be
allocated)
• Resources from multiple Work Centers can
be allocated to project items
• A custom list of available resources can be
created by each user
• Friendly graphical user interface designed
to simplify the resource allocation process
Resource Planning with Fiori App
• Fiori Tabular Resource Planning
functionality available
• The same functionality as in WinGui
version
Resource Planning with
Noveco Fiori Gantt Chart
Resource Planning with Fiori App with Gantt Chart
Set filter to show
required resources only
• Fiori Resource Planning in
Gantt Chart View
• Combines Gantt Chart
scheduling and tabular
Resource allocation
functionality
• Project elements can be
dragged and dropped along
the time line to simulate
resource availability
Resource Planning with Fiori App with Gantt Chart
Drag & Drop available
resources to project
elements
Only Project Managers
appear in the Resource view
Resource Planning with Fiori App with Gantt Chart
Resource Planning with Fiori App with Gantt Chart
Set filter to show
DESIGNERs only
Resource Planning with Fiori App with Gantt Chart
Resource Planning with Fiori App with Gantt Chart
Resource Planning with Fiori App with Gantt Chart
Resource Planning with Fiori App with Gantt Chart
Resource Planning with Fiori App with Gantt Chart
Project Lifecycle: steps in SAP system
Tendering and Planning phase
Estimating
Costs and
Revenues
• Respond on
customer
Tenders
• Create Estimates
from existing
templates
Sales
Contract
• Create Sales
Contract in SAP
from approved
Estimate
• Flexible
hierarchical
structure
• Price calculation
on materials,
BOMs, Product
Costing, services,
external and
internal labour
• Calculate
additions on
Risks,
Contingencies
Price Escalations
• Add Profit Margin
to calculate Sales
Contract Value
• Initiate
procurement of
long lead items
* Managed by Noveco
Project
Planning
• Create Project
structure
• Generate Cost &
Revenue
planning from
approved
Estimate
• Revenue Plan
generated from
Sales Contract
• Project
scheduling with
Gantt Chart
• Distribute Costs
and Revenue
along project
time line
• Simulate Project
Cash Flow
• Simulate
availability of
internal
resources (e.g.
engineers,
project managers
etc.)
Project Execution Phase
Resource
& Capacity
Planning
• Simulate
Availability of
Resources and
Capacities
• Allocate
resources to
project WBS
elements and /
or network
activities
• Allocate project
WBS elements
and / or
network
activities to
Work Centers
Procurement
Materials &
Services.
Timesheets
• MRP (Material
Requirements
Planning)
• Procurement of
materials,
equipment,
services to
Project
• Time allocation
using CATS
• Project inventory
• Vendor Invoices
• Outgoing
Payments (cash
out)
Project
Forecasting
• Calculate Costs
to Complete (CTC)
and Estimated at
Completion (EAC)
from Actual Costs
and Purchasing
Commitments
• Adjust Forecast
costs and work to
complete
• Redistribute plan
revenue based
on updated CTC
and purchase
commitments
• Progress and
Earned Value
calculation
• Forecast Project
Cash Flow
• Forecast history
• Drill down
reporting
• Run Result
Analysis (profit
recognition) at
month-end based
on the most
recent project
forecasts
Variations &
Risk
Management
Customer
Billing
• Create, Estimate
and Approve
Project
Variations
• Milestone billing
based on Sales
Contract Billing
Plan
• Automatically
update project
Budget, Cost
Forecast and
Revenue plan
from approved
variations
• Resource Related
(Cost Plus) Billing
• Assess project
risks: Threats and
Opportunities
• Simulate
Pessimistic,
Optimistic
scenario impact
on project
profitability
• Variation history
tracking
• Incoming
payments (Cash
In)
Reporting
• Operation project
reporting
• Multi-project
reporting with
graphical KPIs
• Estimate vs
Project Costs
analysis
• Dash-board
Analytics
Integrated Project Management in SAP
* Project Portal / Reporting
* Resource Planning
Profit Take (Result Analysis)
* Noveco Applications
Advanced Analytics
Portfolio Planning (PPM)
Reporting
Analysis
Monitoring
Forecasting
Progress Tracking
* Project Manager Workbench
Planning
Execution
Variations
* Estimate: Cost & Revenue
Create Project
* Schedule Dates
Procurement, Time Sheets
Invoicing, Billing
* Project Variations
Project Execution: MRP, Procurement, Actual Costs
Time Sheets
Record Hours
Engineering & Design
CAD modeling
Purchase Order
Sub-Contract
Direct Procurement of Services
$
Electrical Sub-Assembly
Materials Requirements Planning
→ Requirements Quantity
→ Requirements Dates
Mechanical Sub-Assembly
Final Assembly
Pass Material Requirements to MRP
← Stock Reservations
← Purchase Requisitions
← Production Orders
Execution of Production Orders
• Assign Purchase Orders directly to
Production Orders
• Post Order confirmations
Purchase Order
Equipment
Services
Components
Work Confirmation
Hours
Hours
Hours
Stock / Inventory
EA
Kilograms
Meters
• Issue materials from stock
• Project actual costs and purchase
commitments are posted
Integrated Project Management in SAP
* Project Portal / Reporting
* Resource Planning
Profit Take (Result Analysis)
* Noveco Applications
Advanced Analytics
Portfolio Planning (PPM)
Reporting
Analysis
Monitoring
Forecasting
Progress Tracking
* Project Manager Workbench
Planning
Execution
Variations
* Estimate: Cost & Revenue
Create Project
* Schedule Dates
Procurement, Time Sheets
Invoicing, Billing
* Project Variations
Project Manager Workbench
• Automatically re-calculates cost to
complete (CTC) and Estimated at
Completion (EAC) from actual costs
and PO commitments posted to PP
orders at any time
• Recalculates and updates Project
Progress
• Manual and Automatic distribution
of Budget, CTC and Purchasing
Commitments
• Manual adjustment of CTC and EAC
• Full forecast history tracking
• Supports monthly review cycle using
planning period concept
• Drill-down into transactional data:
commitments, actual line items etc.
• Variation & Risk Management
• Cash Flow Forecast
• Workbench uses PS info-system to
read and write and resides directly
in SAP
• No BW, BI-IP etc. is required
• No interfaces, no data transfer
Update Project Forecast
• Actual Costs and PO commitments
rolled up to WBS from Production
Orders
• Recalculate project Costs to
Complete (CTC) and Estimated at
Completion (EAC) from PP orders
• Manually update (if needed) cost and
work to complete
• Drill down to source documents
• Real time integration
Distribute Remaining Cost To Complete
Manually or automatically distribute:
• Cost To Complete
• Current Budget
• Plan Revenue
• PO Commitments
Calculate Project Progress
• Project Progress is
automatically recalculated
• PP orders progress is
automatically included into
project overall progress
Project Cash Flow report
• Project Cash Flow report
calculates and presents:
• Cash In from Sales Order
billing plan, invoices, down
payments etc.
• Cash Out from Purchase
Order commitments,
invoices, down payments,
remained CTC etc.
Project Manager Workbench
• Graphical presentation of
project KPIs
• Configurable layout
• Up to 20 graphs available
Integrated Project Management in SAP
* Project Portal / Reporting
* Resource Planning
Profit Take (Result Analysis)
* Noveco Applications
Advanced Analytics
Portfolio Planning (PPM)
Reporting
Analysis
Monitoring
Forecasting
Progress Tracking
* Project Manager Workbench
Planning
Execution
Variations
* Estimate: Cost & Revenue
Create Project
* Schedule Dates
Procurement, Time Sheets
Invoicing, Billing
* Project Variations
(multi-) Project reporting
Multiple Project Reporting
with graphical view
directly from ECC or S4 (no
BW or other reporting
tools needed)
Noveco Application in SAP UI5 / Fiori
Fiori Tiles: Launchpad
Project Manager Workbench (Fiori version)
Project Manager Workbench (Fiori version)
Project Manager Workbench (Fiori version)
Project Manager Workbench (Fiori version)
Project Manager Workbench (Fiori version)
Project Manager Workbench (Fiori version)
Project Manager Workbench (Fiori version)
Project Manager Workbench (Fiori version)
Project Manager Workbench (Fiori version)
Project Manager Workbench (Fiori version)
Project Manager Workbench (Fiori version)
Summary
•
With Noveco solutions you can now effectively control your ETO project
manufacturing and engineering processes directly in SAP Project System
•
The Original Project Cost Plan is always accurate, since it is based on
Product Costing.
•
The system automatically recalculates Cost and Work To Complete from
actual costs posted to network activities and PP orders.
•
You can adjust project Forecast Costs at any time, if necessary.
•
The system calculates Project progress by taking production progress
into account.
•
You can Drill Down into source documents.
•
Run operational reports directly from SAP PS.
Strategic
Planning
System Landscape including Noveco
Analysis,
Resourcing
Reports
Program &
Portfolio
Planning
Result Analysis
Resource
Planning
PS Information
System
●
●
●
●
●
●
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Monitoring,
Forecasting,
Variations,
Progress
Execution
Estimation
Budget values
Company
Reporting
Advanced
Analytics
Time Sheets, Invoices
Actual Costs
Sales Orders
Revenue
Transactional System
Project Manager Workbench
Automatic Forecasting
Manual adjustment of CTC or Work TC
Progress Analysis
Exception and drill down reporting
Integrated variations into cost forecast
Forecast history
Purchase Orders,
Commitments
Variations
S
A
P
E
C
C
/
S
4
Noveco: Estimation, Forecasting, Progress and Variation Management
●
Full scale Estimating solution in SAP PS. Create estimates before project is created / approved in
SAP
●
Project Manager Workbench provides one central place to review KPIs, update forecasts, track
and update progress, execute analytical and drill down reports
●
Complete Cost and Work To Complete management: Automatic reduction and Manual
adjustment
●
Instant Integration with ECC transactions: PO, time sheets, invoices etc.
●
Forecasting results are immediately available for Result Analysis, Progress Analysis, PS Reports
and BI (no custom interfaces needed to native SAP reports)
●
Period Sensitive Forecasts: designed for month end forecasts in live transactional system
●
Saves project forecast history w/o need to perform version copy by the user
●
Project Costs Forecasts integrated with PM/CS and PP orders
●
Integrates Project Variations into cost forecasting and budgeting
●
No modifications to SAP standard core applications. No “z-tables” to keep forecasts costs, all
data read/written from/to SAP standard database.
Business Value of Integrated Project Forecasting in SAP
●
Connects upstream (estimating, procurement, timesheets) and downstream (monitoring,
resource allocation, analytical reports) activities of project management lifecycle
●
Closes the loop between execution and analysis processes providing 360 degree flow of
information
●
Replaces spreadsheets and other third party tools with centralized SAP database
●
Reduces amount of effort required to produce project forecasts and analytical reports
●
Reduces number of interdependent systems and interfaces needed; reduce costs of
maintenance and support of systems other then SAP
●
Decreases potential for errors of data entry and manipulation
●
Improves quality, transparency and accuracy of data
●
Allows potential savings and process efficiency by relieving Project Managers from performing
routine transactional and administrative activities.
●
Integrates Resource (personnel) Planning into project planning and forecasting
●
Determine realistic project progress
●
Unleashes the true power of integrated SAP system
Our Customers
For more information visit Noveco Systems on
www.novecosystems.com