Download
sap best practices for engineering construction and operations v1 604 in n.
Skip this Video
Loading SlideShow in 5 Seconds..
SAP Best Practices for Engineering Construction and Operations V1.604 (IN) PowerPoint Presentation
Download Presentation
SAP Best Practices for Engineering Construction and Operations V1.604 (IN)

SAP Best Practices for Engineering Construction and Operations V1.604 (IN)

193 Vues Download Presentation
Télécharger la présentation

SAP Best Practices for Engineering Construction and Operations V1.604 (IN)

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. SAP Best Practices for Engineering Construction and Operations V1.604 (IN) SAP Best Practices

  2. SAP Best Practices for Engineering Construction and Operations was developed for small and midsize companies to implement a solution quickly and easily. The focus of this solution is primarily on construction companies that perform a subsantial portion of the project work using their own workforce. Functionalities The SAP Best Practices for Engineering Construction and Operations V1.604 (IN) package supports your business in the following areas : Project Management Equipment and Tools Management Procurement Accounting Controlling Analytics General Information

  3. SAP Best Practices for Engineering Construction and Operations V1.604 (IN)Solution Scope Project Management Accounting Procurement Analytics Cross Functions Contract Billing Equipment and Tools management Black = Baseline ScenariosBlue = Engineering Construction and Operations

  4. SAP Best Practices for Engineering Construction and Operations V1.604 (IN)provides the following industry-specificscenarios: 439 Project Setup for Engineering and Construction 440 Project Budgeting for Engineering and Construction 441 Project Planning for Engineering and Construction 442 RFQs for Project-based Procurement 443 Purchase Orders for Project-based Procurement 444 Equipment & Tools Management for Construction 445 Project Forecasting & Earned Value Management 446 Revenue Recognition for Projects 447 Contract Billing for Engineering and Construction 448 Project Reporting for Engineering and Construction 449 Time Entry for Construction 756 Tender Process for Engineering and Construction Industry-Specific Scenarios

  5. Purpose A project structure can be a set of work packages with reference to the physical object and construction disciplines into which the contractor organizes the work to perform, mostly for accounting and time control purposes, and is designed for project control and execution. It connects with the project owner needs reflected in a quote or awarded contract. It provides cost and resources spread in a time perspective. Benefits The project structure provides an organized view into manageable sections and disciplines, which makes it possible to control all dimensions of a project, such as costs, milestones, dates, resources. Key process flows covered Take the needs of the client from the quote or awarded contract. Take the original estimate for an assessment on the scope of services. Devise a project framework following a Work Breakdown Structure approach Devise tasks and milestones just enough to represent the relevant project steps 439 Project Setup for Engineering and Construction Purpose and Benefits:

  6. Purpose The project estimate, calculated when preparing the quote to the client, is essential to create the preliminary project budget and major timelines. It has now to be embedded into the project structure, having in mind the need of connecting the client needs with the construction view. It’s typical that estimates are performed in a 3rd party solution or spreadsheets. The preliminary budget provides the cost view and equally quantifies the scope of work (physical output or production) and the necessary resources to be consumed in performing such production. Benefits The preliminary budget structure can be built mirroring the originating external estimate, which makes it easier for planning engineers to achieve the task of connecting the client world to the construction world in a first step. Estimators and engineers work together, resulting in teamwork delivering a reconcilable, reliable preliminary budget. Key process flows covered Create and assign a cost version to be used as the preliminary budget (version E01) Import or re-key an external estimate master data into a project cost version Deploy the items from the estimate within the project structure (WBS and network), for resources (material, labor, equipment, lump sum items) for each line item with their respective unit costs 440 Project Budgeting for Engineering and Construction Purpose and Benefits:

  7. Purpose A detailed project plan is put in place to commit resources, funding and the corporate staff, with the ultimate goal of delivering the project. The project plan can be comprised of schedule, work plan (hours), construction equipment, purchase plan (construction material, equipment), budget (cost plan) and the production plan (construction physical output). Benefits A project plan is a solid, detailed management framework. It brings in elements to control execution and forecasting, enabling the contractor to steer the project, thus creating conditions to deliver on-time and on-budget Numerous mechanisms to plan, simulate, execute, control, and forecast resources, costs and time can be applied to the project plan, bringing superior ability to maneuver the project to be delivered on budget and on time. Key process flows covered Devise the project schedule Devise the work plan Devise the production plan (construction output) Determine purchase requirements and create the purchase plan Assign costs to the schedule and purchase plans Compare preliminary budget to the new budget, adjust, release the project plan 441 Project Planning for Engineering and Construction Purpose and Benefits:

  8. Purpose : This scenario describes the typical processes used In the construction industry to solicit, obtain, and compare supplier pricing information to select the appropriate supplier for the material or subcontracted service to be procured. Benefits Standardizing RFP process Transparent selection of the right supplier Easy collaboration with suppliers Key process flows covered The process starts with the definition of the required materials and subcontracted services for a specific project. The definition of the quotation criteria's and the bidding packages are the next steps, followed by a selection of suppliers for the relevant quotation utilizing price comparison report. The quotation will be compared, after the decision for the relevant suppliers the purchase orders / subcontractor orders are defined. The RFQ process is to a certain extent an optional process: It is also possible to purchase materials & subcontractor services ad hoc by converting a purchase requisition into a PO directly without the RFQ process (example: purchasing of low value materials or equipment) 442 RFQs for Project-based Procurement Purpose and Benefits:

  9. Purpose This scenario describes the typical processes used In the construction industry to solicit, obtain, and compare supplier pricing information to select the appropriate supplier for the material or subcontracted service to be procured. Benefits Standardizing RFP process Transparent selection of the right supplier Easy collaboration with suppliers Key process flows covered The process starts with the definition of the required materials and subcontracted services for a specific project. The definition of the quotation criteria's and the bidding packages are the next steps, followed by a selection of suppliers for the relevant quotation utilizing price comparison report. The quotation will be compared, after the decision for the relevant suppliers the purchase orders / subcontractor orders are defined. The RFQ process is to a certain extent an optional process: It is also possible to purchase materials & subcontractor services ad hoc by converting a purchase requisition into a PO directly without the RFQ process (example: purchasing of low value materials or equipment) 442 RFQs for Project-based Procurement Purpose and Benefits:

  10. Purpose This scenario describes the typical processes used in the construction industry to generate and process purchase orders (PO’s). These PO’s are used to procure materials, subcontracted services with retentions and equipments with the aspect of progress tracking. Benefits Transparent view of created outstanding orders, commitments and delivery Standardized invoice handling by using retentions Progress tracking option based on PO’s for equipments Key process flows covered Transforming purchase requisitions (PR’s) into purchase orders (PO’s)for materials, subcontracted services and equipments, create PO’s directly without using master records, define delivery commitments, create goods receipt and service entry. Invoice receiving and handling from suppliers with progress tracking and quality tracking. Handle retentions for the subcontracted services. 443 Purchase Orders for Project-based Procurement Purpose and Benefits:

  11. Purpose Addresses the unique requirements of self performing construction companies, building contractors and equipment distributors by handling the industry-specific business processes such as equipment planning, -processing, -settlement and evaluation of resources (equipment and materials) including performance measurement. Benefits Improve the availability and tracking of equipment Manage the increasing administrative workload Reduce handling and administration cost Introduce most flexible prices and account determination Optimize equipment utilization Improve the visibility of profitability, TCO and return on asset and equipment Key process flows covered Timebased Equipment Process Timebased Equipment Process including 3rd Party Rental Equipment Performance Based Equipment Process Non-Consumable Material Process Consumable Material Process 444 Equipment and Tools Management Purpose and Benefits:

  12. Purpose Earned Value Management is used to evaluate current project performance. Earned value management is a method to accurately determine a project’s health in terms of cost and schedule progress against the plan. Project Forecast is used to evaluate based on the past performance of the project the future course of the project. It provides insights how current productivity, for example, will impact the project’s final results and is used to indicate areas of concerns. Benefits Both processes provide project insights which are essential for the management to control the future course of the project. Key process flows covered Determine the planned and actual POC, based on defined rules and POCs estimated manually or automatically Determine Earned Value and other KPIs like productivity, cost performance index, and scheduling performance index Project Forecasting Process prerequisites Posting of project actual cost and quantities like time Enter Network confirmations 445 Project Forecasting & Earned Value Management

  13. Purpose In industries such as engineering and construction, it can take months or years to finish an entire project. Therefore, it is essential to recognize revenue against the time spent, cost incurred, or milestones achieved. Results Analysis (RA) is a sophisticated tool within the Controlling module that computes the cost of sales, WIP inventory and the reserves for unrealized revenue or surplus revenue. It uses percentage of completion based upon planned costs and revenue to calculate the values. Key process flows covered Execute Results Analysis Perform Settlement Project Reporting for revenue posting and related KPI’s Prerequisites Essential master and organizational data was created in your ERP system in the implementation phase, such as the data that reflects the organizational structure of your company and master data that suits its operational focus, for example, master data for materials, vendors, and customers. The pre-requisite for executing results analysis is that an appropriate RA key has been assigned to the top level WBS element during the setup of the project. 446 Revenue Recognition for Projects

  14. Purpose This scenario covers the three primary contract billing processes used by the engineering construction and operations industries, the first is Lump-Sum Contract with Milestone Billing, the second is Bill of Services – Unit Price Contract with Service Entry Sheet and third is Cost Plus and Time and Material Billing (RRB) Benefits Project Management Contract Management Milestone Billing according to performance of defined Milestones Key process flows covered Lump-Sum Contract with Milestone Billing Bill of Services – Unit Price Contract with Service Entry Sheet Cost Plus and Time and Material Billing (RRB) 447 Contract Billing for Engineering and Construction Purpose and Benefits:

  15. Purpose Show basic reports for a project manager / project controller in a construction environment. Custom reports developed using Report Painter tool. Standard delivered project financial reports. Benefits View of cost, revenue, cash flow, earned value, installed quantities, recognized revenue, project forecast, budget as out of the box reporting capabilities Key process flows covered Project Budget (Project Overview) Report – Orginal Budget, Changes, Current Budget, Actual Cost, Commitment, Forecast as main KPI Project Progress & Productivity Report – PoC, EVA, Budgeted and Installed Quantities, Productivity, Actual Cost as main KPI 448 Project Reporting for Engineering and Construction Purpose and Benefits:

  16. Purpose Record working hours for employees, installed quantities. Transfer hours and derived cost to project. Assign prevailing wages against employee and the working hours. Maintain employee information as new hires come onboard or employees leave the company. Maintain the company organization structure – maintain organizational units, jobs and positions. Benefits Hours and quantities (as statistical key figures) can be entered in an easy to use UI Hours and Quantities can be transferred to the project as base for cost, productivity and progress reporting Key process flows covered Entry of Time and Quantities installed for one person Timesheet approval process Time and Material Project - Transfer to Costing Object (Projects, FI/CO) Maintenance of employee mini master records Maintenance of the company organizational structure 449 Time Entry for Construction Purpose and Benefits:

  17. 756 Tender Process For Engineering and Construction Purpose and Benefits: • Purpose • This scenario describes the tender processing in a standard EC&O environment. • SAP functionalities of Sales & Distribution (SD) and of Project System (PS) are used to control the complete process, from customer inquiry to the handover to project construction (described in the scenario 447, Contract Billing). • Benefits • Deep integration to the project structuring and calculation allows for a consistent controlling of all steps and values • Copy functionalities – e.g. from inquiry to quotation – are facilitating compliance with the process rules • Document management – feasibility study document, drawings are linked to WBS element • Easy cost planning is used to estimate project cost roughly for quotation • Key process flows covered • Creation of inquiry with linkage to project • Easy Cost Planning • Creation of quotation with reference to the inquiry • Integration to the project system including calculation costing and scheduling functionalities • Assignment of technical documents