Project Management with SAP R3(1), Informatyka, SAP

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SAP R/3 - Project System
Project Management with SAP R/3
Teaching Material for the Department of
Production Management
Vienna University of Economics and
Business Administration
Andreas Mild
Alfred Taudes
V.1.0
Page 1
SAP R/3 - Project System
1 Introduction .......................................................................................................................3
2 Basics & Keywords ............................................................................................................4
3 Getting ready for the workshop .........................................................................................7
4 Case Study........................................................................................................................ 13
4.1 Case description .............................................................................................................13
4.2 Data for Project Realization ...........................................................................................14
5 Planning the project structure ........................................................................................ 15
5.1 General ..........................................................................................................................15
5.2 Implementation in SAP..................................................................................................17
6 Scheduling ....................................................................................................................... 26
6.1 General ..........................................................................................................................26
6.2 Basic calculations ...........................................................................................................29
6.3 Implementation..............................................................................................................30
6.4 The project planning board............................................................................................41
7 Cost planning & Controlling ........................................................................................... 47
7.1 General ..........................................................................................................................47
7.2 Implementation..............................................................................................................48
8 Looking up the costs........................................................................................................ 61
9 Capacity Planning ........................................................................................................... 64
9.1 General ..........................................................................................................................64
9.2 Implementation in SAP..................................................................................................65
10 Earned Value Analysis.................................................................................................... 69
10.1 General ......................................................................................................................69
10.1.1 Measurement techniques ............................................................................................................................. 69
10.1.2 Calculation of Earned-Value and Deviation Analysis ............................................................................ 73
10.1.3 Aggregation................................................................................................................................................... 74
10.2 Implementation..........................................................................................................74
11 Execution ......................................................................................................................... 77
11.1 Implementation..........................................................................................................77
11.1.1 Confirming network activities .................................................................................................................... 77
11.1.2 Invoices ........................................................................................................................................................... 79
11.1.3 Material........................................................................................................................................................... 83
12 Information System ......................................................................................................... 86
12.1 Implementation..........................................................................................................86
12.1.1 Cost reports .................................................................................................................................................... 86
12.1.2 Earned-Value Analysis ................................................................................................................................ 92
13 Literature ......................................................................................................................... 98
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SAP R/3 - Project System
1 I
NTR ODUCTION
This script serves as a basis for the workshop "Project Management with SAP R/3". This
workshop is part of a series of SAP-related workshops which are held by the Department of
Production Management of the Vienna University of Economics and Business
Administration, headed by Prof. Dr. Alfred Taudes. The workshop was developed by Andreas
Mild.
The
goal
of this Project Management Workshop is that, after having attended it, each student
should be familiar with the theoretical backgrounds and be able to plan and control a project.
The project manager has the task of ensuring that the project is executed efficiently, on time,
and within the budget - which he/she achieves by making certain that the required resources
and funds are available when needed. Every student should then be able to put his/her SAP
knowledge into action.
To make the continuous improvement of this script possible, please report mistakes found or
ideas for further development to
andreas.mild@wu-wien.ac.at
.
Page 3
SAP R/3 - Project System
2 B
AS IC S
&
K
EY WORDS
SAP R/3 is an
integrated and industry-independent standard software
which covers,
integrates
and connects
all functional areas in a business
. SAP AG defines integration as
"defined communication".
1
Although R/3 is designed for complete integration, it can also be
used for a couple of business areas.
2
SAP is the abbreviation for
“Systeme, Anwendungen, Produkte”,
the German words for
“Systems, Applications, Products”.
3
Information about the company can be found at:
.
Projects are tasks with special characteristics. Attributes of a project are the following issues:

complexity, non-repetitivity, high risk

detailed goals to be achieved

time restrictions

high cost and capital expenditure

quality requirements

often strategic significance
To be able to plan, monitor, control, and carry out a project as a whole, the
project goals
must be precisely described
and the activities to be performed have to be structured.
A project can be described as follows:

according to how it is organized, i.e. by explaining the project structure,

according to the processes involved.
A project
starts
out as a
statement of work
which is either a
written description
of the
objectives to be achieved and the desired rough schedule like start and end dates. In the
description one could include also performance metrics and budget constraints.
A project is further subdivided into meaningful pieces, referred to as
tasks
. Tasks take usually
less than a few months. The task can be further subdivided into
subtasks
.
A
work package
can be defined as “a group of activities combined to be assignable to a
single organizational unit.”
4
The project tasks, subtasks, and work packages are brought into a hierarchy by defining
a
work breakdown structure
.
The individual elements represent activities within the work breakdown structure and are
called work breakdown structure elements (
WBS elements
).
WBS elements can be:
1
AFOS (Hrsg.) SAP Arbeit, Management. Braunschweig/Wiesbaden 1996 p.59
2
Computerwelt No. 13 of 13. 3. 1998, p. 20
3
AFOS (Hrsg.) SAP Arbeit, Management. Bra unschweig/Wiesbaden 1996 p. 59
4
Chase R./Aquilano N./Jacobs R. Production and Operations Management: Manufacturing
and Services, p.48
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SAP R/3 - Project System

tasks

partial tasks which are subdivided further

work packages
WBS can be structured according to

object

function

phase
Which kind of structuring is used depends on the focus of the project. Objects orientation is
often used, if the main part of the project is a physical object like a power plant. Functional
organisation is preferred, if many different parts of an organisation or many organisations are
involved.
In practice, all three kinds of structuring are used within one WBS.
“Project Management can be defined as
planning, directing, and controlling resources
(people, equipment, material
) to meet the technical, cost and time constraints of the
project
.”
5
The primary reason why projects fail is insufficient effort in the planning phase.
6
Project Management thus is considered as very important.
The SAP Project System enables close and constant monitoring of all aspects of a project by
having constant access to data in all the departments involved.
Project management can be subdivided into project planning, i.e. the task which will be
undertaken before the project starts, and project controlling during the implementation of the
project.Planning must include:

organization – service

process – dates

costs

capacity
There are many possible project goals such as, for example, to realize a positive net present
value, to achieve a high imputed interest, to minimize costs, to cover costs, to maximize gross
profit, or simply to finish as early as possible. However, it is importa nt, that goals are defined
operationally, thait is when it is possible to measure to which extent the goal has been
achieved.
The project manager breaks the project down into a
set of activities
. Then he also defines the
relationships
among these activities. The outcome is a guideline regarding the activities that
can be performed in parallel and those that have to be done in a sequential order. This task is
done via planning by network.
Now, there are activities that require
capacities and resources
like personnel and material.
Such resources are limited and these requirements have to be considered in order to be able to
develop a feasible, sound plan. Information from other modules as e.g. the material planning
module is required.
5
Chase R./Aquilano N./Jacobs R. Production and Operations Management: Manufacturing
and Services, p.48
6
Chase R./Aquilano N./Jacobs R. Production and Operations Management: Manufacturing
and Services p. 69
Page 5
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