Project Systems

Business Process Document

Project ‘TESLA’
BPD-PS-BPML-01 - Masters

THE PERFECT PARTNER

YOU CAN RELY ON
Manifest • Mentor • Mature
 Table of Content

1 Process AS-IS Overview...................................................................................................4

1.1 FLOW CHART | SOP: 4

2 Business Process (TO-BE).............................................................................................4

2.1 To Be Process Flow Chart 4

2.2 Process Steps Role Wise 4

3 Process Pain Area and Solution Adapted...................................................................13

4 Top Management Requirement....................................................................................13
5 Process Customization................................................................................................ 13
6 Process Linkages/Integration points..........................................................................14
7 Process Gaps and Work Around.................................................................................14
8 Process improvements and Changes.........................................................................14
9 Approval.........................................................................................................................15
1 Process AS-IS Overview

1.1 FLOW CHART | SOP:

In Delta Group – Currently orders are executed with SD and PP module only. No As-Is process available in the
system with project system module.

2 Business Process (TO-BE)

We are covering following masters in the BPD:
1. Project Master Template
2. Project Structuring

What is SAP Project System

A clearly and precisely structured project is the basis for planning, executing, monitoring, progress tracking and
financial controlling of project.

Special Functions of project system in business process:

1. Project Structuring
2. Time Scheduling
3. Cost and Revenue Planning
4. Budgeting
5. Project Progress Analysis
6. Reporting

2.1 Project Master Template

TO BE flow chart
Process Steps Role Wise
Sr. Role Process Description
No
1 Planning Team Create Std Project Definition
2 Planning Team Create Std WBS
3 Planning Team Create Std Network
4 Planning Team Create Network Activities
5 Planning Team Maintain Activity Relationship
6 Planning Team Assign Std. Network to Std. WBS
7 Planning Team Save Std. Network Template
8 Planning Team Copy Project Template in Project Builder

2.2 Project Structuring in Project Builder

TO BE flow chart

Process Steps Role Wise

Sr. Role Process Description
No
1 Planning Team Create Operative project in project builder
2 Planning Team Create Project Definition
3 Planning Team Create WBS Element
4 Planning Team Create Network Activities
5 Planning Team Maintain Milestone
6 Planning Team Save the operative project
2.3 Basic Structuring

2.3.1 Std Project Definition

Project Coding Mask
In Delta the Project will have a project code for identification of the Std Project Template and operative project
which shall follow the Logic below-
Project Code Format for Std project template: - [Link]
Project Code Format for operative project : - [Link]

Project ID Coding Mask Description

TMP [Link] Std Project Template
DMP .[Link] Delta Manufacturing Project

Description Company Project Project Year Assembly Sub WBS

Type & Serial No. Assembly Code
Char 1 Char2 to 3 Char 4 to 10 Char11 to Char13 to Char 16 to
12 15 21
Delta Std Project T MP .000000 .XX .XXX .[Link]
Templates
Delta D MP .000000 .XX .XXX .[Link]
Manufacturing
Project

X represents alphanumeric character to have both numbers and alphabets in coding mask

In Delta the planning team will create the std project templates with Project ID TMP. Operative project is
required only at the time of estimation and will be created by the commercial team with Project ID DMP. The
first character 1 will represent the Company (D-Delta). The Character 2 to 3 will represent the Project type (MP-
Manufacturing Project). The Character 4 to 10 will represent the Project code (project year & serial no) followed
by a separator (.) Therefore, Project key can be a maximum of 3 characters long. For Delta, we are proposing
three characters for company & project type identification so that other characters is available for representing
Assembly, Sub Assembly & WBS element code.

Project Profile
The next step is to select the project profile- The project profile contains default values and other control
parameters such as the planning method for dates, cost & Budgets. The data entered in the project profile will
be copied into a project in its project definition and in the WBS element that can later be over written. This data
is relevant for further processing of projects and WBS element in terms of time, costs & Budgets.

On the basis of project type there are different project profiles as follows.

PROJECT PROFILE
SAP Code Description
Z1001MF DELTA 1000: Manufacturing Project

Project Definition
The framework laid down for all the objects created within a project. It contains data, such as project dates and
organizational data, binding for the entire project.

Following Organizational data has been incorporated in Delta project:

Project Profile
Org. Unit
Z1001MF
Controlling Area 1000
Company Code 1000
Plant 1001
Profit Centre 1000-110

Controlling area: It is an organizational element which is responsible for management of costs and profits.

Company Code: A ‘Company code’, in SAP represents a separate legal entity, which requires a complete set
of financial statement (Balance sheet and Income statement).

Plant: A plant is an organizational logistics unit that structures the enterprise from the perspective of production,
procurement, plant maintenance, and materials planning (MRP).

Profit Center: A profit center is an organizational unit in accounting that reflects a management-oriented
structure of the organization for the purpose of internal control.

The above Organization data shall be assigned to the project.

The values for the project definition are copied from the template or project profile when work breakdown
structure is created.

Fields that are Mandatory for Delta Project:

Field Name Description Status

Std Project Definition need to

Project Definition Mandatory
entered

Project Profile Project Profile as per type of project Mandatory

Controlling Area Controlling Area of the project Mandatory

Company Code Company code of the project Mandatory

Plant Plant of the Project Mandatory

Functional Area Functional Area Mandatory

Project Currency Currency of the Project Mandatory

Profit Centre Profit Centre Mandatory

2.3.2 Standard WBS Template

WBS :

The WBS element is a cost object which is used to organize project tasks into a hierarchy, and this hierarchy is
known as Work Breakdown Structure.

WBS is a hierarchical structure of a project showing WBS elements involved at different levels in a project.

The work, time and costs involved in the project are contained in the WBS and it is also used to plan dates,
costs and budget.

Example of STD WBS Template for Delta Manufacturing Project

Cont. Comp
Lvl WBS Element Description PE ACCT BE Plant Profit centre
Area Code
Project Level
1 X DG00 1000 1001 1000-110
TMP.000001 WBS
Casing
2 X X X DG00 1000 1001 1000-110
TMP.000001.0A Housing
Valve
3 X X DG00 1000 1001 1000-110
[Link] Assembly
2 TMP.000001.0B Casing Spool X X X DG00 1000 1001 1000-110
Valve
3 X X DG00 1000 1001 1000-110
[Link] Assembly
Tubing Spool
2 TMP.000001.0C X X X DG00 1000 1001 1000-110
Assembly
Valve
3 [Link] X X DG00 1000 1001 1000-110
Assembly
3 TMP.000001.0C.0TH Tubing Hanger X X DG00 1000 1001 1000-110
Hold down
3 TMP.000001.0C.0HS X X DG00 1000 1001 1000-110
screw
Adapter
3 TMP.000001.0C.0AS X X DG00 1000 1001 1000-110
Assembly
2 TMP.000001.0D X-mas tree X X X DG00 1000 1001 1000-110
Valve
3 [Link] X X DG00 1000 1001 1000-110
Assembly
Choke
3 TMP.000001.0D.0CH X X DG00 1000 1001 1000-110
Assembly

WBS elements may use for following functions according to operative indicator selected:

PE: Planning Element in which one can plan cost.

BE: Billing Element in which one can post customer invoices.

One can plan or post revenue only in the billing element.

Acct: Account assignment elements to which one can post actual cost and commitments.
2.3.3 Std Network

A network is a series of activities that must be performed in a specific way, specific order and within a specified
time.

The basic elements of a network include activities and relationship.

In a project, networks serve as a basis for planning, controlling, and monitoring of schedule, costs and
resources.

Example of STD Main Assembly Network for Delta Manufacturing Project:

Oper/Act Work Act
Operation short text Duration Unit Work Unit Plant
Number center Type
0010 Design/Pre-BOM DAY H 1001
0020 Design/Final-BOM DAY H 1001
0030 Drawing DAY H 1001
0040 Planning DAY H 1001
0050 Procurement DAY H 1001
0060 Routing DAY H 1001
Manufacturing -
0070 General DAY H 1001
Manufacturing -
0080 Before Cladding DAY H 1001
Manufacturing -
0090 Cladding DAY H 1001
Manufacturing - After
0100 Cladding DAY H 1001
0110 Subcontracting DAY H 1001
0120 A&T DAY H 1001
0130 Painting DAY H 1001
0140 Packing & Delivery DAY H 1001
0150 Logistic DAY H 1001
0160 Billing DAY H 1001

Example of Sub Assembly Network for Delta Manufacturing Project:

Oper/Act Work Act
Operation short text Duration Unit Work Unit Plant
Number center Type
0010 Design/Pre-BOM DAY H 1001
0020 Design/Final-BOM DAY H 1001
0030 Drawing DAY H 1001
0040 Planning DAY H 1001
0050 Procurement DAY H 1001
0060 Manufacturing DAY H 1001
0070 Subcontracting DAY H 1001
0080 A&T DAY H 1001
0090 Painting DAY H 1001
0100 Packing & Delivery DAY H 1001
0110 Logistic DAY H 1001
0120 Billing DAY H 1001

Relationship Between Activities

You use relationships to depict chronological and technical dependencies between activities. The relationship
you define determines the nature of the link between the individual activities.

 FS relationship (In Delta Finish-Start Relationship is used to map their activities.)

 An activity does not start until the preceding activity is completed.

 SS relationship
 An activity cannot start unless another activity has started.

 FF relationship
 An activity cannot be completed until another activity has been completed.

 SF relationship
 An activity cannot be completed until the activity succeeding it has started.

You can use relationships to link activities in different networks. This means, for example, that you can produce
a time schedule for the whole project, regardless of whether you are planning in an overall network or in
individual networks.

You can graphically display various activities of a project and their interdependencies in the Project System.

2.3.4 Network Activity

Activity :

An activity is a task in a Network that has a defined start and finish date. Categories of activities in SAP are
Internal, External, General costs, Service activities- Relationships are assigned between activities.

An activity in a network contains following data:

• the work center at which the activity is to be carried out
• Planned Amount of work to be completed.
• the duration of the activity
• the start and finish dates for the activity
• the resources required to carry out the activity
• texts and documents describing the activity

Internal activities, which describe the activities performed inside our company.

The Activity Type is determined from the work center. This is essential for the calculation
of the cost for an internal activity.

External activities, which describe the activities performed outside of our company.
You use an externally processed activity to specify the services that need to be provided
by other companies to complete the activity.

General Costs Activity, with which general costs, incurred during the life of the project, are
planned. Examples of these costs include travel expenses, insurance, royalties.
Service activities are also used to procure services externally. You can create service activities for services to
be performed by external resources. In contrast to external activities, service activities allow you to draw up
service specifications and enter value limits for any unplanned services.

You can access the detailed information for service activities on the External tab page. You can distinguish
between service activities and external activities here using the control key and the Service exists indicator.

2.3.5 Work center

(Refer PP-BPML-01- Master Data for brief description)

The work center master record contains data for costing internal activities. To be able to calculate planned costs
for internal activities, you need to specify the amount of work involved and the work center at which the activity
is to be carried out. Costing internal activities are accomplished by assigning the work center to a cost center
and maintaining a default activity type and costing formula in costing tab.

2.3.6 Base Planning Object

(Refer CO-BPML-05-Product Costing for brief description)

Base planning object is used for the following purpose:

To plan new products, such as materials and services, and create costing where no master data (material
master, BOM, routing) is available.
To use existing cost estimates as a reference for the planning of new products.
To simulate changes to existing products and cost estimates.
You can use an existing base planning object for the following purposes:
As a reference for a new base planning object
As a "building block" in other unit cost estimates, such as material cost estimates without quantity structure,
additive cost estimates and base planning objects.

Item Categories and data mandatory to enter

Item Category Description Fields Mandatory to Enter
B Base Planning Object Name of Base planning object, Quantity
E Internal Activity Cost Center, Activity Type, Quantity
M Material Material Number, Plant, Quantity
V Variable Item Quantity, Price, Cost Element

APPID: KKE1.
Create Base Planning Object.

2.3.7 Assign Material Components to Activity

(Refer PP-BPML-01- Master Data for brief description)

Material component can be assigned directly or using BOM to the activity. It is required to define the item
category and the procurement parameters.
In case of item category, there are two options:

For Non-Stock item (N) (No inventory Management)

You can choose the options as Purchase requisition for network.

For Stock item (Stock item)

You can choose between the options as Purchase requisition & reservation for WBS element or Reservation for
network or planned independent requirement for WBS element.

3 Process Pain Area and Solution Adapted

Pain Area Solution Adapted

Cost estimation is done using Excel outside the Standard Cost Estimate Methods available in the
system. No inbuilt functionality available for cost new system.
estimation in current system.
Feature not available in current system to track Standard Costing method with cost plan version
revisions of cost estimate. available in new system to compare and track cost
estimate revisions
Manual creation of purchase requisition to produce Automatic material requirement planning (MRP) from
and procure goods. project ensures timely procurement of material to
produce finished goods. Automatic creation of
planned orders and purchase requisitions from
project system using MRP run.
Lack of visibility on delays in production orders Standard reports in project system available to views
delays in production order.
Lack of visibility on project progress. Project Progress Analysis reports are available in
new system to track current status of project
progress.

4 Top Management Requirement.

N/A

5 Process Customization
Sr Wricef Module Description STD/Customize
No Type
1 Enhancement Project Program required to upload cost estimate Customize
System through excel sheet for unit costing.
(Refer CO-BPML-06 for details on cost
estimation program.)

6 Process Linkages/Integration points

Sr No Integration Integration Point Description

to Module
1 SD Document Type Project System is Integrated with sales inquiry by account
assigning the inquiry item to the WBS element of Project to
display sales pricing and sales quotation.
 2 PP MRP Type The system creates planned orders which may converted to
production order, and purchase requisitions for externally
procured components.

3 MM Procurement Project procurement is entirely integrated with Materials

Type Management (MM). Material master is created in MM. The
procurement type in the material master controls the decision as
to whether materials are to be produced in-house, or externally
procured.
4 CO Project Cost Even though cost planning is carried out in PS module, it uses
Planning the CO functionality of cost element planning and base planning
object.
5 CO CO Plan Versions CO versions are maintained for Unit Costing and Easy Cost
Planning.
6 CO Result Analysis Assignment of cost element for WIP and Result Analysis.

7 Process Gaps and Work Around.

N/A

8 Process improvements and Changes.

BPML Improvement Area Process Productivity Reporting
Std. Project Structure Creating project structure will give Yes Yes Yes
clear representation of the jobs to
be performed at various stages of
the project.
Std. Project Template Standard templates for the WBS Yes Yes Yes
structure and networks can be
created and copied in all projects.
This reduces the time needed to
create the project from the scratch.
Base Planning Objects Can be used as a reference for Yes Yes Yes
planning cost on WBS elements
reducing repetitive works when
creating new cost estimates.
WBS BOM We can create WBS BOM by Yes Yes Yes
copying Material BOM. We can
create different WBS BOM for
specific WBS element with single
material BOM.