Project Setup for Engineering and Construction

SAP Best Practices for Engineering, Construction, and Operations

SAP Best Practices

Scenario Overview 1
Purpose and Benefits:
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

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Scenario Overview 2
SAP Applications Required:
Required

Enhancement Package 4 for SAP ERP 6.0 Project manager

Company roles involved in process flows

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Scenario Overview 3i
Detailed Process Description:
Scenario heading

Project structure setup

Business context

The contractor has prepared a quote or got the winning bid for a construction project. It is necessary to translate the construction service (the what) into a process oriented perspective for management purposes (the how and when and how much).

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Scenario Overview 3ii

Detailed Process Description:
Scenario heading

Project structure setup

Relevant business scenarios and processes

An accounting view is necessary for the contractor to execute and control a work plan when rendering construction services.

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Process Flow Diagram

Project Structure Setup

Legend

Symbol

Description

Usage Comments
Role band contains tasks common to that role.

Symbol

Description

Usage Comments

<Function>

Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role. The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario. External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.

Diagram Connection

To next / From last Diagram: Leads to the next / previous page of the Diagram

Flow chart continues on the next / previous page

Hardcopy / Document: Identifies a printed document, report, or form

External to SAP

Hardcopy / Document

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario. Flow line (dashed): Line indicates flow to infrequentlyused or conditional tasks in a scenario. Line can also lead to documents involved in the process flow.

Connects two tasks in a scenario process or a non-step event

Financial Actuals: Indicates a financial posting document

Financial Actuals

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Business Activity / Event

Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario

Does not correspond to a task step in the document

Budget Planning: Indicates a budget planning document

Budget Planning
Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario Corresponds to a task step in the document Manual Process: Covers a task that is manually done Process Reference: If the scenario references another scenario in total, put the scenario number and name here. Corresponds to a task step in the document

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Unit Process

Process Reference

Manual Proces s

Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow. Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines

SubProcess Reference

Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here

Corresponds to a task step in the document

Existing Version / Data

Existing Version / Data: This block covers data that feeds in from an external process

Proces s Decisio n

Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.

Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution

System Pass/F ail Decisio n

System Pass / Fail Decision: This block covers an automatic decision made by the software

Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.

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Appendix

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Components of a project structure WBS, network, milestones

SAP Project structure:

A hierarchical layered frame used to represent the project, such as the physical structure, phases, areas, work packages. Aimed to primarily report time and cost. Network of activities following the CPM method (critical path method) for scheduling. Constructors use networks to plan and control the flow of operations. SAP expands the project structure concept by integrating into co-related other business processes, like estimation, budgeting, procurement, labor, equipment, contract management, etc.

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Project structure

WBS
Work brekdown Structure

Activities (tasks)
Process oriented

1:N

Assignment activityWBS
13-1

Construction services Typical breakdown of self performers

Power Generator Electrical Work Cable Laying Cable Locknuts Electrician Transformer 11Kv $31,300
100 m $213/m $21,300 100 m $200/m $20,000 20 pc 10 H $15/pc $100/H $300 $1,000

01.1.1.70 100 m2 Laying cables 15.20

Service Index Quantity Unit of Measure Description Unit Price

1 AU ...

10,000 $10,000 ... ...

...
Mechanical ...

$50,000
1EA 50000 50000

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