Project  Manager  Workbench   and  Cost  Forecasting  Solutions   in  SAP  ERP  

Business  Challenges   You have implemented SAP Project System, Or You are planning to implement SAP Project System… However,  you  ...  

•  •  •  •  • 

Struggle  creating  project  plan  or  initial  cost  estimate   Cannot  manage  monthly  forecasts   Cannot  manage  project  variations  in  seamless  integration  with  budgeting,  revenue   and  cost  forecasts   Cannot  find  one  single  place  where  project  manager  can  monitor,  update  and   report  on  their  projects.     Cannot  produce  comprehensive  reports  out  of  SAP  standard  Project  System  

Business  Challenges   As  a  result  …  

•  • 

High  use  of  excel  spread  sheets   Use  of  third-party  planning  tools  integrated  with  PS  

•  •  •  •  • 

Project  System  becomes  a  cost  collector   No  information  transparency  and  consistency   Lack  of  standardization  of  project  delivery   Poor  project  governance   Undermined  Benefits  of  integrated  system  

Business  Challenges   •  PS  (Project  System)  is  one  of  

Human   Resources     (HR)   Time  Sheets   (CATS)   Sales   and  customer   billing   (SD)  

Accounting   (FI)  and   Controlling   (CO)  

SAP  PS     +     Noveco  ePM   Plant   Maintenance,   Customer   Service   (PM/CS)  

Materials     Management   and   Procurement   (MM)  

Production   Planning   (PP)  

 

the  most  integrated  modules   in  SAP  ERP    

•  Noveco  ePM  enhances  SAP   Capacity     and  Resource   Planning  

Project  System  enabling   integrated  project   management  directly  in  SAP   ECC  

•  You  will  not  need  any  other  

tools  like  excel,  BI,  BO  etc.  to   manage  your  project   lifecycle  in  SAP.  

Why  Noveco  ePM   Noveco  ePM  is  a  family  of  seamlessly  integrated  software  components  designed  to   complement  and  enhance  SAP's  standard  Project  System  (PS)  functionality,  with  a   focus  on  easy  project  planning,  forecasting,  variation  management  and  reporting   directly  in  SAP  ECC     Noveco  ePM  enables  management  of  your  project  lifecycle  directly inside  your  ERP   system  (no  other  tools  needed)   Execution

l  Estimating l  Planning l  Budgeting

Efficient Project Management

.  

.  

Forecasting

.  

.  

Monitoring

l  Reporting l  Analysis l  Settlement

Project Management Lifecycle Run by Noveco Run by SAP or other software

Project Initiation

•  Estimating: Costs and Revenues (under development ) •  Project Structure & Planning •  Budget Approval •  Start/Finish Dates Scheduling •  Plan Cost Distribution

Efficient Project Management

•  Purchase Orders / Contracts •  Time Sheets •  Invoicing & Billing •  Variations Execution

•  Final Settlement •  Project Close

Monitoring & Forecasting

Project Close Out

•  Settlement •  Result Analysis/Profit Take •  Period Close

Period Closing

•  KPIs Review •  Cost / Margin Forecast •  Resource Planning •  Progress Analysis •  Materials and Procurement forecast

Reporting

•  Operational •  Dash Board •  Programs/Portfolio •  Analytical

Integrated  Project  Management  in  SAP   * Project Reporting

Profit Take (Result Analysis)

*  Noveco  Applications   Dashboard reporting

Portfolio Planning

Reporting and Analysis

Monitoring Forecasting Progress Tracking

*  Project  Manager  Workbench  

Planning and Execution Project Builder

Cost & Revenue Planning

Project Dates Scheduling

Procurement, Time Sheets Invoicing, Billing

* Project Variation Management

Project  Manager  Workbench:  Integrated  Financial  Information  

Noveco Project Manager Workbench provides simple and clear environment to review (and manage) your project KPIs directly in your SAP ERP system

Project  Manager  Workbench:  Integrated  Financial  Information   Automa)cally  Recalculate   Es)mate  Cost  at   Comple)on,  Costs  to   Complete  and  Project   Progress  

Workbench provides new user experience in PS: •  Combines several transactions in one screen •  • 

User friendly UI and Intuitive navigation Display, Change, Refresh and drill down into details

• 

Automatic recalculation of Cost To Complete

•  • 

Review and update project progress Instant and Real-time integration with ERP (no interfaces, no extractors…)

If  required,  manually   change  Cost  (and  Work)  to   complete,  Actual  Progress   Manually  Distribute  Cost  To   Complete  and   Commitments     Automa)cally  record   changes  in  a  change  log  

Automa)cally  record   forecast  history  

Save  Changes  directly  in   ERP  

Noveco  ePM  Project  Management  Workbench     Project Management Workbench key functions: •  Management of Project Cost To Complete (automatic recalculation and manual adjustment)

–  Cost To Complete is project remaining costs spread over project remaining duration –  Estimated Cost At Completion ( or Final Forecast Cost ) is calculated as Actual Cost + Commitments + Cost To Complete

–  Cost To Complete is always distributed in the future

•  Variations and Issues management in seamless integration with Budgeting and Forecasting •  Built-in Easy Project Progress and Earned Value Analysis

•  One central place to review and manage your project with drill down reports •  Graphs to represent project KPIs •  Project forecast history tracking (automatic function)

Project  Manager  Workbench  Overview   Interface and Navigation Functionality Reports Integration

Project  Manager  Workbench:  Integrated  Financial  Information  

Aggregated view of Key Performance Indicators for entire project or selected project element

Project  Manager  Workbench:  Integrated  Financial  Information   Es)mated  Cost  at   Comple)on    =  Actual  Costs  +   Commitments  +  Cost  To   Complete  

Current  Budget   including  Varia)ons  

Cost  To  Complete  

Original  Cost  Es)mate  

Budget    Deficit  =    Current  Budget  –  Es)mated  at   Comple)on   If  “+”    it  is  under    the    budget     If  “-­‐”      it  is  over  the  budget  

Project  Manager  Workbench:  Integrated  Financial  Information  

Current  Revenue  Plan   including  Rev.   Varia)ons    

Original  Profit  Margin.  %  

Original  Revenue  Plan  

Forecast  Profit  Margin.  %  

Project  Manager  Workbench:  List view

Detailed cost breakdown

You can review and change Forecast Costs in a list view without having to navigate to project element in the tree

Project  Manager  Workbench

Aggregate all values by Cost Element, Resource and Value category to the selected WBS or entire project

Project  Manager  Workbench  

Detailed cost breakdown

Financial information is grouped by:

Value  Category  

Resource  Type  

Cost  Element  

Cost  Element  Grouping  –  Presented  by  Workbench   Value  Categories  

Resource  Type  

Cost  Elements  

Engineering & Design Designer Structural Designer System Designer

Engineer Civil Engineer

Labour

Structural Engineer

Fitter Constr. Labour Materials

Value Categories in SAP are assigned to Cost Elements or Cost Element groups. Noveco ePM introduced “Resource” that allows you to split Value Category into smaller sub-groups For example, Value Category “LABOUR” can be broken down into resources: - Construction Labour - Electricians - Fitters - Testers - etc. Each Resource can be assigned to multiple cost elements.

Project  Manager  Workbench  

Financial information is grouped by:

Value  Category  

Resource  Type  

You can turn off Cost Elements in Noveco configuration. All financial information is grouped by Value Categories and Resource Names

Project  Manager  Workbench:  Exception  indicators  

Exception icons indicate where Estimated Cost at Completion (EAC) is over or under Current Budget

Project  Manager  Workbench:  Plan  by  Period  

Plan by Period (view and change): •  Current Budget •  Cost To Complete •  Actuals •  Commitments •  Revenue

Project  Manager  Workbench:  Detailed  line  items  by  period  

Period breakdown view as line items

Display  by  Value  Category  by  Period  

Cost breakdown view by Value Category and Resource by Period

View all key figures by period:

Display  by  Value  Category  by  Period  

Cost breakdown view by Value Category and Resource by Period

View Cost To Complete by Value Category by period:

Display  Cumulative  Values    

Display cumulative values and s-curves of KPI for entire project or selected project element

Display cumulative values and S-curves of the KPI for selected project element In this example, the top WBS is selected, so aggregated information from all sub-elements is presented

Project  Manager  Workbench:  Cost  Element  View  

View open purchasing commitments for selected project element and its subelements. You can drill down to purchase order details by double-clicking on the order line item

Project Variations

Display Project variations

Project  Manager  Workbench  Overview   Interface and Navigation Functionality Supported Project Structures Period Specific Forecasting Cost To Complete management Progress Analysis Variation Management Forecast History Reports Integration

Option  1:  WBS  for  Cost  Planning,  Execution  and  Forecasting   Construction  project  

Engineering  &  Design   Drafting Structural Engineering

Construction   Construction worker Materials Sub-contracted services

•  WBS Hierarchy only (w/o Network Activities) •  WBS used for cost planning, budgeting, cost forecasting •  Actual costs, time confirmation and Purchasing Commitments posted to WBS elements •  Cost To Complete are calculated and manually updated on WBS elements - WBS element - Costing line item

Option  2:  WBS  as  Planning  Element  for  Cost  Planning  and  Forecasting   Construction project Drafting Structural Engineering Construction worker Materials Sub-contracted services

Engineering

Construction

•  WBS marked as Planning element used for cost planning, budgeting, cost forecasting. •  Actual costs, time confirmation and Purchasing Commitments posted to sub-WBS •  You can also post actual costs to NWA, PM/CS orders as well if they are part of the structure (see options 3, 5 and 6 ) •  Actuals and commitments are rolled up to Planning WBS element. Cost To Complete are calculated on Planning WBS •  Using this structure you can plan and execute work packages w/o need to plan each sub-package

- WBS element - Costing line item

Option  3:  WBS  for  Cost  Planning  and  Forecasting;  NWA  for  Execution   Construction project

Engineering & Design Drafting Structural Engineering

Design Drafting Engineering

•  WBS and Network structure •  WBS used for cost planning, budgeting, cost forecasting •  Network Activities used for scheduling, resource planning, collecting actual costs, procurement •  Actuals and commitments are rolled up to Planning WBS element. Cost To Complete are calculated on Planning WBS

- WBS element - Network activity - Costing line item

Option  4:  NWA  for  Planning,  Execution  and  Forecasting   Construction project

Engineering & Design

Drafting

Engineering

Construction Earth moving Construction

•  WBS and Network structure •  Network Activities used for cost planning, budgeting, cost forecasting •  Network Activities used for scheduling, resource planning, collecting actual costs, procurement, time confirmation •  Cost To Complete are calculated and manually updated on Network Activities

- WBS element - Network activity - Costing line item

Option  5:  NWA  for  Cost  Planning  and  Forecasting,  Orders  for  Execution   Construction project

Engineering & Design

Drafting

Engineering

Construction Earth moving Construction

•  WBS, Network and PM/CS Order structure •  Network Activities used for scheduling, cost planning, budgeting, cost forecasting •  Network Activities and PM/CS orders resource planning, collecting actual costs, procurement, time confirmation •  Cost To Complete are calculated and manually updated on Network Activities

- WBS element - Network activity - Work Order - Costing line item

Option 6: WBS for Cost Planning and Forecasting, Orders for Execution Maintenance Project

Pump Maintenance Engineering

Electrical

Engineering

Electrical works

Mechanical works

•  WBS and PM/CS Order structure •  WBS used for cost planning, budgeting, cost forecasting •  PM/CS orders resource planning, collecting actual costs, procurement, time confirmation •  Cost To Complete are calculated and manually updated on WBS

- WBS element - Work Order - Costing line item

Project  Manager  Workbench  Overview   Interface and Navigation Functionality Supported Project Structures Period Specific Forecasting Cost To Complete management Progress Analysis Variation Management Forecast History Reports Integration

Period  Sensitive  Cost  Forecasts  

Planning Period: •  Project planning period enables periodic cost forecasting, where automatic changes to cost to complete can be protected from actual cost life to date, thus keeping forecast costs fixed for specific planning period. •  This allows project managers to complete their forecasts for a specified month end while being in the first week of a next month, with no impact to project cost to complete from actual costs and purchasing commitments made in the new (next) month •  Once cost to complete are manually adjusted project can be rolled over to the next month, so project forecasts can be recalculated taking latest values

Periodic  (Monthly)  Cost  Forecasting   •  Actual CostME – actual costs at Month End December 2013 •  Actual Cost TD – actual costs life To Date Cost Forecasts are usually prepared in a first week of a new month. However Actual Costs and Purchasing Commitments might change within first few days of a new month

$, Actual Cost

Noveco Workbench cumulates Actual Costs and Commitments from project start date to the current month end planning period (e.g. December 2013) and recalculates Cost To Complete

Costs to Complete = EAC – Actual Costs ME – Commitments ME

Actual Cost TD Actual Cost ME

This way you can “freeze” forecast from actual costs posted in the new period

December

Today

January

Time

Period  Roll  Over   $, Actual Cost

December

T

January

Today

Forecast History – can’t change

January

CTC

Commit

Actual TD

CTC

Today

•  Actual Cost TD – actual costs life To Date Once forecast is completed and all reports are produced you can roll project over to the next month Latest Actual costs and Purchasing commitments will be taken into recalculation of project CTC

EAC

December

Commit

Actual ME

EAC

$, Actual Cost

Actual TD

CTC

Commit

Actual  ME  

EAC

•  Actual CostME – actual costs at Month End December 2013

T

Project  Manager  Workbench  Overview   Interface and Navigation Functionality Supported Project Structures Period Specific Forecasting Cost To Complete management Progress Analysis Variation Management Forecast History Reports Integration

EAC

CTC

Initial step: Copy Estimates to Project Cost To Complete This step is done once only

Estimate

Project Forecasting: Cost To Complete Lifecycle Initially Cost To Complete are generated from Estimates Since at the beginning Actual Cost and Commitments equal 0, EAC = CTC according to the formula:

Copy Estimate to Cost To Complete

EAC CTC

On-going: Automatically reduce Cost To Complete from Actual Costs and Purchasing Commitments

Estimate

EAC = CTC + Actuals + Commitments

As Project progresses Actual Costs and Purchase Commitment increase CTC is automatically reduced by the Workbench, using formula:

On-going: Manually Change CTC, recalculate EAC and save new EAC for monthly snapshot for history reporting

EAC CTC

Estimate

CTC = EAC – ( Actuals + Commitments)

User can manually change CTC after it was recalculated by the Workbench EAC is automatically recalculated using formula:

EAC = CTC + Actuals + Commitments

Cost To Complete Management: Initial Step Initial step: Copy Estimates to Project Cost To Complete This step is done once only

On-going: Automatically reduce Cost To Complete from Actual Costs and Purchasing Commitments

On-going: Manually Change CTC, recalculate EAC and save new EAC for monthly snapshot for history reporting

In this example, Estimates were copied to Cost To Complete No Actual costs or Purchasing Commitments were posted Note: Current Budget is calculated as Estimate + Variations

Cost To Complete Management: Auto-recalculation of CTC Initial step: Copy Estimates to Project Cost To Complete This step is done once only

On-going: Automatically reduce Cost To Complete from Actual Costs and Purchasing Commitments

On-going: Manually Change CTC, recalculate EAC and save new EAC for monthly snapshot for history reporting

In this example, Actual Costs and Purchasing Commitment were posted Project Manager Workbench re-calculated Cost To Complete automatically using formula CTC = EAC – ( Actual Costs + Commitments) On large projects automatic reduction of Cost To Complete saves Project Manager’s time!!

Cost To Complete Management: Manual adjustment of CTC Initial step: Copy Estimates to Project Cost To Complete This step is done once only

On-going: Automatically reduce Cost To Complete from Actual Costs and Purchasing Commitments

On-going: Manually Change CTC, recalculate EAC and save new EAC for monthly snapshot for history reporting

When small variations occur you need to manually adjust Cost and Work To Complete In this example, we increased Work To Complete for Construction Labour and the value of Concrete Mix required. This change pushed Cost To Complete up. All manual changes are recorded in a change log Project Manager Workbench re-calculated Estimated at Completion using formula EAC = CTC + Actual Costs + Commitments

Cost Planning: Actual Costs and Forecasts

Costs To Complete are always distributed forward from today’s date into the future CTC values cannot be saved in the past periods This makes Cost To Complete management different from Cost Planning

Past

$

Today Date

Actual Costs Feb-12

Mar-12

Apr-12

May-12

Mar-12

Apr-12

May-12

T

Apr-12

May-12

T

Future

$

Cost To Complete Feb-12

Mar-12

Apr-12

May-12

Mar-12

Cost To Complete: manual distribution Manually Distribute -  Cost to Complete -  Current Budget -  PO Commitments You can choose Value Category or Resource Type or even individual Cost Element. This way you can distribute different type of costs using different patterns

Graphs and values in the table are updated immediately as you type

Cost To Complete: Manual Distribution In this example we distribute Labour Budget and Cost To Complete different to other cost You can type percentage (%) or Values ($) to distribute

Purchasing Commitments: Manual Distribution You can distribute Purchasing commitments according to material or service delivery schedule

Display Cumulative Values as S-Curve Report

Display cumulative values as s-curves for selected Network Activity , WBS or entire project

Project  Manager  Workbench  Overview   Interface and Navigation Functionality Supported Project Structures Period Specific Forecasting Cost To Complete management Progress Analysis Variation Management Forecast History Reports Integration

Progress Analysis You can track Plan POC, Calculated POC and adjust Actual POC. Earned Values are calculated automatically.

Plan POC calculated by the system from distributed plan values Actual POC initially copied from calculated POC and changed manually Calculated POC calculated by the system from actual values

Project  Manager  Workbench  Overview   Interface and Navigation Functionality Supported Project Structures Period Specific Forecasting Cost To Complete management Progress Analysis Variation Management Forecast History Reports Integration

Project Variations

You can see project variation history

See List of all Variations and drill down to variation document

Project Variations You can create different types of Variations: Budget Variations, Adjustments and Contingency Variations Variation can have Revenue and Costing items and can be assigned to several project elements (WBS or network activities) Upon approval it automatically update budget, revenue and forecasts

Project  Manager  Workbench  Overview   Interface and Navigation Functionality Supported Project Structures Period Specific Forecasting Cost To Complete management Progress Analysis Variation Management Forecast History Reports Integration

Project Financials Monthly Snapshot Forecast history tracking is fully automatic it does not require version copy

Noveco: Project Forecast History Tracking

Project Forecast History is recorded for each financial period This is done automatically and does not require additional steps (e.g. copy into a special version to keep snapshot for forecast history reports) In this example, both Project Budget and Estimated Cost Completion changed in August 2013. You can view the change and see what project elements (WBS or Network Activities) have changed and why

Project  Manager  Workbench  Overview   Interface and Navigation Functionality Reports Integration

Project Report: Example

SAP Project Hierarchy reports can be tailored to view project financial information produced by Noveco ePM. In this example, you can compare current Estimated Cost At Completion (EAC) vs. EAC from any other months in a past. Noveco ePM delivers comprehensive reports (see next slide)…

Project Manager Workbench: Problem Focused Navigation

You can run context dependent reports by selecting project element from the tree and clicking these buttons

Project Manager Portal Inside SAP ERP Noveco ePM Portal presents all projects assigned to a project manager – 

Personalized project selection is created, saved and “remembered” by the system

Projects exceptions and Key Performance Indicators are displayed against each project Graphical representation of project KPIs –  – 

For all project portfolio Selected project(s), WBS or network activity

Drill down to key business transactions: –  Project Builder, Project Manager Workbench, reports, line items

Did you know? :

•  • 

That you don’t need BW/BI system to run comprehensive reports like this one above? PS info-system has been designed to hold all related project information. BW cubes simply mirror PS info-system inside BI

Project Manager Portal Inside ECC Displays cumulative values of: - Budget, Estimated costs

at Completion (EAC), Cost To Complete (CTC), Revenues, Actual costs, Commitments

Values are presented By entire portfolio (group of projects) or by selected project or WBS

Project Manager Portal Inside ECC Displays historical trends from the beginning of the portfolio (or project)

– 

Budget, Estimated costs at Completion (EAC), Cost To Complete (CTC), Revenues, Profit Margin

You can see how your portfolio or a project evolved over time Values are presented by entire portfolio (group of projects) or by selected project or WBS

Project Manager Portal Inside ECC Review your Budget, Cost To Complete and Estimated Cost at Completion by Value Categories by Period

Project  Manager  Workbench  Overview   Interface and Navigation Functionality Reports Integration

Noveco System Architecture

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No middleware (BI, BO etc.)

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No interfaces

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No custom tables

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Always real-time

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Rich functionality

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Automatic forecasting

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Simple and intuitive interface

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Minimum training

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Quick implementation

Integrated  Project  Management  in  SAP   * Project Reporting

Profit Take (Result Analysis)

*  Noveco  Applications   Dashboard reporting

Portfolio Planning

Reporting and Analysis

Monitoring Forecasting Progress Tracking

*  Project  Manager  Workbench  

Planning and Execution Project Builder

Cost & Revenue Planning

Project Dates Scheduling

Procurement, Time Sheets Invoicing, Billing

* Project Variation Management

Result Analysis

Monitoring, Forecasting, Variations, Progress

Execution

Company Strategy Planning

Program Portfolio Planning

Analysis, Resourcing Reports

Strategic Planning

System Landscape including Noveco

Noveco

Estimation Budget values

Time Sheets, Invoices Actual Costs

Resource Planning

PS Information System

Sales Orders Revenue

Transactional System

●  ●  ●  ●  ●  ●  ● 

Business Intelligence

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

ePM Project Cost Forecasting, Progress and Variation Management ● 

Project Manager Workbench provides one central place to review KPIs, update forecasts, track and update progress, execute analytical and drill down reports

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Complete Cost and Work To Complete management: Automatic reduction and Manual adjustment

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Instant Integration with ECC transactions: PO, time sheets, invoices etc.

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Forecasting results are immediately available for Result Analysis, Progress Analysis, PS Reports and BI (no custom interfaces needed to native SAP reports)

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Period Sensitive Forecasts: designed for month end forecasts in live transactional system

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

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Project Costs Forecasts integrated with PM/CS and PP orders

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Integrates Project Variations into cost forecasting and budgeting

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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

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Closes the loop between execution and analysis processes providing 360 degree flow of information

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Replaces spreadsheets and other third party tools with centralized SAP database

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Reduces amount of effort required to produce project forecasts and analytical reports

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Reduces number of interdependent systems and interfaces needed; reduce costs of maintenance and support of systems other then SAP

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Decreases potential for errors of data entry and manipulation

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Improves quality, transparency and accuracy of data

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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

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Determine realistic project progress

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Unleashes the true power of integrated SAP system

Integrated Project Management

MM HR PM

PS

SD

FI

Costs Forecasting

Progress Analysis

CO

Integrated Project Management in SAP

Variation Management

Project Manager Workbench

SAP Customers running Noveco ePM Rawson Group –  rawsonhomes.net.au –  Industry: Residential construction Powercor/CityPower –  powercor.com.au –  Industry: Utility, Construction Sedgman –  sedgman.com –  Industry: Mining Construction TRILITY –  trility.com.au –  Industry: Utility, Construction Hydro Tasmania –  www.hydro.com.au –  Industry: Utility, Construction

For more information visit Noveco Systems on www.novecosystems.com