Project Management Solutions For Engineering and Enhanced by Noveco ePM

Project Management Solutions
for Engineering and

Construction projects in SAP PS
enhanced by Noveco ePM
Key Requirements
l Build accurate cost estimate

l Provide clear visibility of project costs, revenues, margins and cash position
l Accurate forecasting of Cost, Revenues and Margin
l Measurement and Reporting of Project Progress
l Management of project variations, customer escalations, and their seamless integration with
project cost forecasting, budgeting and revenue planning
l Procurement planning & execution
l Integration of subcontractors into project execution, monitoring of work performed and the
incorporation of this work into progress reporting.
l Accurate customer billing
SAP centric requirements
Original Current Contract Actual Costs To Estimate At

Construction project
Estimate Budget Value Costs Complete Completion
Engineering & Design

l SAP system to be the central place for integrated project
Drafting management
Structural Engineering
l SAP Projects to update and manage key nancial and progress
attributes
Construction Package l Manage project procurement of materials, sub-contracted
Sub-contracted services services and labour directly in SAP
Materials
l SAP to be the single source to report project key nancial values
Construction worker
Why Noveco ?
Why do you need Noveco ePM for project Management in SAP?
SAP Project Systems (PS) functional gaps:

l Estimation or Cost Planning is cumbersome and contradictory. Most SAP PS customers use:
Controlling type transactions (e.g. CJR2, CJ40) to plan cost on WBS
Network Planning, inherited in PS from PP (production planning) on network activities
l Cost forecasting or nancial re-planning is not functional
l No project variation management solution
l No single central place to manage your project (you must run dozen of transactions to monitor
and report)
l No comprehensive project reports out of the box
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 Efficient l Reporting

l Planning . Project . l Analysis
l Budgeting .
Management
.
l Settlement
Forecasting Monitoring
Business Challenges
PS (Project System) is one of

Accounting the most integrated modules
(FI) and in SAP ERP
Controlling
Human
(CO)
Materials
Management

Resources and Noveco ePM enhances SAP
(HR) Procurement
(MM) Capacity
Project System enabling
SAP PS
Time Sheets
(CATS) + and Resource integrated project
Planning
Sales
Noveco ePM management directly in SAP
Production
and customer Planning ECC
billing (PP)
(SD) Plant
Maintenance,
Customer You will not need any other
Service
(PM/CS)
tools like excel, BI, BO etc. to
manage your project
lifecycle in SAP.
Integrated Project Management in SAP * Noveco Applications
* Project Reporting Prot Take (Result Analysis) Dashboard reporting Portfolio Planning
Reporting
and
Analysis
Monitoring
Forecasting * Project Manager Workbench
Progress Tracking
Planning
and
Execution
Project Builder Cost & Revenue Planning Project Dates Scheduling Procurement, Time Sheets * Project Variation Management
Invoicing, Billing
Project Management Lifecycle
Execution

l Budgeting .
Management
.
l Settlement
Forecasting
Monitoring
Create Project Stricture

Cost and Revenue Planning
Dates Scheduling
Budget approval
Cost Distribution
Reporting
and
Analysis
Monitoring
Progress Tracking
Create
Projects
Planning
and
Execution
Invoicing, Billing
Project Structures: WBS hierarchy only (no networks)
Option 1: WBS (no networks)
WBS represent project WBS used for:

Construction Project
organizational structure: Grouping project activities for
Phases planning and reporting
Types Form (sub)packages within
Project Activity structure
Cost planning (see next slides)
Construction Budget allocation
Example:
Design, Land Acquisition, Dates Scheduling
Construction packages, Building A1 Cost Collection (e.g. labour,
Testing and Commissioning materials, equipment, services)
Equipment Installation Cost Forecasting

Reporting
Cost Plan on WBS elements
Capital Project In this scenario WBS elements are used for
Cost Planning
Cost Forecasting
Dates scheduling
Construction Cost collection (engineering, project management etc.)
Sub-Station
Manual Cost Planning on WBS elements:

Labour rates (dierent types)
Materials
Labour
Materials
Sub-Contracted Services
Subcontract Plants & Equipment
Plant
Overheads
Overheads
For manual cost planning we recommend using Easy Cost Planning on WBS elements
Project: WBS elements only (option 1)
Create project structure in SAP PS using Project Builder
WBS structure (example) can be multi-level and represent
your specic coding rules
WBS represents packages and sub-packages of your
construction project
Project Structures: WBS and Network Activities
Option 2: WBS & Networks
WBS represent project Construction Project WBS used for:

organizational structure:
Grouping project activities for
Phases reporting
Types
Cost planning (see next slides)
Project Activity
Budget allocation
Construction
Building A1
Network Activities Represent Networks used for:

Project tasks Detailed Cost Planning
Dates scheduling
Example: engineering drawings, Cost Collection (e.g. labour,
earth moving, equipment installation materials, equipment,
etc. services)
Resource planning
Cost Forecasting
Project: WBS elements and Network Activities (option 2)
WBS structure represents project organizational

structure and its phases
Network activities represent project tasks, linked
with relationships
Execution

l Budgeting .
Management
.
l Settlement
Forecasting
Monitoring
Create Project Stricture

Cost and Revenue Planning
Dates Scheduling
Budget approval
Cost Distribution
Reporting
and
Analysis
Monitoring
Progress Tracking
Cost
Planning
Planning
and
Execution
Invoicing, Billing
Project Builder (SAP standard transaction CJ20N)
Easy Cost Planning
Here is an example on how Project Cost plan can be

formed by using Easy Cost Planning functionality (SAP
Standard)
Easy Cost Plan can be automatically generated from
external estimating system
Project Builder (SAP standard transaction CJ20N)
Select Costing Version
Cost Estimation is saved in costing versions

Multiple Costing versions can be created.
In this example version N01 is used to keep the Original Budget
Easy Cost Planning in details
Easy Cost Planning allows you to plan multiple resources on one WBS
( or Network Activity):
Internal labour types
external services
Material
plant etc.
Easy Cost Planning using Planning Forms
You can use pre-dened planning forms to

estimate costs using input parameters
Costing lines (below) are generated
automatically
Easy Cost Planning using Services as BOQ
Plan sub-contracted package on WBS element using services

These lines (bill of quantities) will be included in purchase order
Plan Revenue using Sales and Project Integration
Construction project
Sales
Order
Engineering & Design
Drafting
Structural Engineering
Construction
Construction worker
Materials / Equipment
Sub-contracted services
In this example revenue plan created from Sales Order

billing plan
The billing plan can be created from project milestones
Cost and Revenue Planning options
l In our example we planned costs using Easy Cost Planning and Planned Revenue using Sales
Order Project System integration
l You can Plan Costs in PS using other functions:
Network planning (if you use networks)
Cost Element Planning (CJ42, CJR2)
Revenue Planning (CJ40)
New planning functions based on WebDynpro available in enhp6
Reporting
and
Analysis
Monitoring
Progress Tracking
Scheduling
Planning
and
Execution
Invoicing, Billing
Schedule Project Dates using PS Planning Board or MSP
OpenPS for
Microsoft Project
(SAP standard
interface between
PS and MSP)
New Gantt Chart is Use SAP Project Planning Board to schedule project dates
available as of ECC 6.0 Detailed schedule can also be created in MS Project and synchronized with SAP PS
enhp6
using standard (free) interface OPENPS4MSP
Reporting
and
Analysis
Monitoring
Forecasting
Cost * Project Manager Workbench
Progress Tracking
Distribution
Planning
and
Execution
Invoicing, Billing
Project Manager Workbench: KPI view
Current Budget = Estimate + Variations + Adjustments + Contingency
Cost and Revenue Plan by period

Estimated At Completion = Actual Costs + Commitments + Cost To Complete
Plan Revenue = Original Revenue + Revenue Variations

Current Prot = Plan Revenue Estimated At Completion
Cost information is broken by WBS, Value Category and Resource Types

You can choose to view costs aggregated and grouped by Value Category
and Resource Types for selected WBS element
Noveco Project Manager Workbench can turn o cost elements from the view. This feature enables cost element free forecasting, which can
be important for companies that created too many cost elements for the same type of work. Noveco will make sure that all lines from dierent
cost elements that belong to the same Value Category and Resource are presented as one line with summarized costing information
Project Manager Workbench: Value Category view
Cost grouped by Value Categories and Resources and broken down by period
Project Manager Workbench: Value Category by Period
Project Manager Workbench: Plan by Period
Distribute LABOUR cost

Distribute MATERIAL cost
Noveco manual distribution

function allows you distribute
dierent type of cost
independently from each other
Distribute SUBCONTRACT cost
In this WBS you expect Purchase

Order to be raised
Reporting
and
Analysis
* Project Manager Workbench

Monitoring
Forecasting Post Actual
Progress Tracking Costs
and
Purchasing
Commitments
Planning
and
Execution
Invoicing, Billing
Execution

l Budgeting .
Management
.
l Settlement
Procurement
Time Sheets
Forecast update and KPI Monitoring
Progress assessment
Variations and issues
Project Actual Costs ow
Project
Time sheets
Construction
Building A1
Expenses
&
other costs
Sub-
Contracted Equipment &
Services Materials
Direct Material
Consumption
from stock
Reporting
and
Analysis
Monitoring
Forecasting
Recalculate * Project Manager Workbench
Progress Tracking
Forecasts
Planning
and
Execution
Invoicing, Billing
Execution

l Budgeting .
Management
.
l Settlement
Procurement
Time Sheets
Progress assessment
Project Manager Workbench: Auto-Recalculate Forecast
We posted Actual Costs and raised Purchasing Commitments

System automatically reduced remaining Costs To Complete
Estimated Cost At Completion did not change = Actuals + Commitments + CTC
Project Manager Workbench: Recalculate Forecast automatically
Review costing details

Review Purchase Order
Project Manager Workbench: Recalculate Forecast automatically
Actual Cost of Labour posted in February, Cost

To Complete reduced accordingly
Project Manager Workbench: automatic Commitment distribution
Purchase Order Commitments

reduced Cost To Complete (in this
scenario to zero)
Commitments were automatically
distributed using the same
pattern as previously distributed
Cost To Complete
You can change it if you like
Project Manager Workbench: Purchasing Commitments
View PO commitment value per

WBS
View Purchase Order List
You can drill down to PO from
that screen
Switch to Change mode

Change Cost and Work To Complete or
Estimated At Completion
System recalculates Estimated Cost At
Completion (EAC) and Budget Decit
Budget Decit = Current Budget Estimated

at Completion
Exceptions highlight WBS elements where
Budget diers from EAC
You can dene tolerance limits for green
and red icons
Project Manager Workbench: Review KPIs
Since EAC has changed, the Current Prot has

changed as well
Project Manager Workbench: S-Curves
Execution

l Budgeting .
Management
.
l Settlement
Procurement
Time Sheets
Progress assessment
Review Project Progress
You can review Plan and Actual POC as

well Earned Values (BCWS and BCWP)
Project Actual Progress
You can change Actual Progress

System will keep Calculated and Actual
Progress separately
Reporting
and
Analysis
Monitoring
Progress Tracking
Create
Project
Variation
Planning
and
Execution
Invoicing, Billing
Execution

l Budgeting .
Management
.
l Settlement
Procurement
Time Sheets
Progress assessment
Project Variation
Variation aect on project Revenue item
Costing items
Project Review: KPIs including Variation
Current Budget = Original Estimate + Cost Variations
Plan Revenue = Original Revenue + Revenue Variations

Project Variation in details
Variation List
Variation history
Reporting
and
Analysis
Project
Reporting Monitoring
Progress Tracking
Planning
and
Execution
Invoicing, Billing
Execution

l Budgeting .
Management
.
l Settlement
Forecasting
Monitoring
Project Reporting
Portfolio and Program Reporting
Analysis
Long Term planning and forecasting
Classic SAP Hierarchy Report
All Financial and Progress data is saved in SAP ECC

No interfaces and no custom tables are used by Noveco
Project Manager Portal
Project Financial history is recorded

You review project Budget, Forecast, Prot in each month
since proejct was approved
All this information can be extracted to BI/BW for further

reporting
SAP standard extractors will be used (no programming is
required)
Multiple projects can be reported via Portal

Project Manager can select projects that he is responsible for
and monitor their progress
Noveco System Architecture
No middleware (BI, BO etc.)

No interfaces
No custom tables
Always real-time
Rich functionality
Automatic forecasting
Simple and intuitive interface
Minimum training
Quick implementation
System Landscape including Noveco
Strategic
Planning
Program Portfolio Company Strategy
Planning Planning
Resourcing
Analysis,
Reports
PS Information Resource Business

Result Analysis
System Planning
Intelligence
Project Manager Workbench

Automatic Forecasting
Forecasting,
Monitoring,
Variations,
Manual adjustment of CTC or Work TC

Progress
Progress Analysis
Noveco Exception and drill down reporting
Integrated variations into cost forecast
Forecast history
Execution
Estimation Time Sheets, Invoices Sales Orders Purchase Orders, Variations

Budget values Actual Costs Revenue Commitments
Transactional System
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
Complete Cost and Work To Complete management: Automatic reduction and
Manual adjustment
Instant Integration with ECC transactions: PO, time sheets, invoices etc.
Forecasting results are immediately available for Result Analysis, Progress Analysis,
PS Reports and BI (no custom interfaces needed to native SAP reports)
Period Sensitive Forecasts: designed for month end forecasts in live transactional
system
Saves project forecast history w/o need to perform version copy by the user
Project Costs Forecasts integrated with PM/CS and PP orders
Integrates Project Variations into cost forecasting and budgeting
No modications 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
Closes the loop between execution and analysis processes providing 360 degree ow of
information
Replaces spreadsheets and other third party tools with centralized SAP database
Reduces amount of eort required to produce project forecasts and analytical reports
Reduces number of interdependent systems and interfaces needed; reduce costs of
maintenance and support of systems other then SAP
Decreases potential for errors of data entry and manipulation
Improves quality, transparency and accuracy of data
Allows potential savings and process eciency by relieving Project Managers from performing
routine transactional and administrative activities.
Integrates Resource (personnel) Planning into project planning and forecasting
Determine realistic project progress
Unleashes the true power of integrated SAP system
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
Hydro Tasmania
www.hydro.com.au
Integrated Project Management
Project
MM HR Costs Progress Variation Manager
Forecasting Analysis Management
PM PS FI Workbench
SD CO
Integrated Project
Management in SAP
For more information visit Noveco Systems on
www.novecosystems.com

Project Management Solutions For Engineering and Enhanced by Noveco ePM

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Project Management Solutions

for Engineering and

l Build accurate cost estimate

Original Current Contract Actual Costs To Estimate At

Engineering & Design

Why do you need Noveco ePM for project Management in SAP?

SAP Project Systems (PS) functional gaps:

Noveco ePM is a family of seamlessly integrated software components designed to

l Estimating Efficient l Reporting

PS (Project System) is one of

l Estimating Efficient l Reporting

Create Project Stricture

Option 1: WBS (no networks)

WBS represent project WBS used for:

Equipment Installation Cost Forecasting

Manual Cost Planning on WBS elements:

WBS represent project Construction Project WBS used for:

Network Activities Represent Networks used for:

WBS structure represents project organizational

l Estimating Efficient l Reporting

Create Project Stricture

Easy Cost Planning

Here is an example on how Project Cost plan can be

Select Costing Version

Cost Estimation is saved in costing versions

You can use pre-dened planning forms to

Plan sub-contracted package on WBS element using services

In this example revenue plan created from Sales Order

Cost and Revenue Plan by period

Plan Revenue = Original Revenue + Revenue Variations

Cost information is broken by WBS, Value Category and Resource Types

Distribute LABOUR cost

Distribute MATERIAL cost

Noveco manual distribution

Distribute SUBCONTRACT cost

In this WBS you expect Purchase

* Project Manager Workbench

l Estimating Efficient l Reporting

l Estimating Efficient l Reporting

We posted Actual Costs and raised Purchasing Commitments

Review costing details

Actual Cost of Labour posted in February, Cost

Purchase Order Commitments

View PO commitment value per

Switch to Change mode

Budget Decit = Current Budget Estimated

Since EAC has changed, the Current Prot has

l Estimating Efficient l Reporting

You can review Plan and Actual POC as

You can change Actual Progress

l Estimating Efficient l Reporting

Current Budget = Original Estimate + Cost Variations

Plan Revenue = Original Revenue + Revenue Variations

l Estimating Efficient l Reporting

All Financial and Progress data is saved in SAP ECC

Project Financial history is recorded

All this information can be extracted to BI/BW for further

Multiple projects can be reported via Portal

No middleware (BI, BO etc.)

PS Information Resource Business

Project Manager Workbench

Manual adjustment of CTC or Work TC

Estimation Time Sheets, Invoices Sales Orders Purchase Orders, Variations