Sap best practices for engineering construction and operations v1 604 us l.jpg
This presentation is the property of its rightful owner.
Sponsored Links
1 / 16

SAP Best Practices for Engineering Construction and Operations V1.604 (US) PowerPoint PPT Presentation


  • 283 Views
  • Uploaded on
  • Presentation posted in: General

SAP Best Practices for Engineering Construction and Operations V1.604 (US). SAP Best Practices. SAP Best Practices for Engineering Construction and Operations was developed for small and midsize companies to implement a solution quickly and easily.

Download Presentation

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

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Sap best practices for engineering construction and operations v1 604 us l.jpg

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

SAP Best Practices


General information l.jpg

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 (US) package supports your business in the following areas :

Project Management

Equipment and Tools Management

Procurement

Accounting

Controlling

Analytics

General Information


Slide3 l.jpg

SAP Best Practices for Engineering Construction and Operations V1.604 (US)Solution Scope

Project Management

Accounting

Procurement

Analytics

Controlling

Equipment and Tools management

Black = Baseline ScenariosBlue = Engineering Construction and Operations


Industry specific scenarios l.jpg

SAP Best Practices for Engineering Construction and Operations V1.604 (US)provides the following industry-specificscenarios:

439Project Setup for Engineering and Construction

440Project Budgeting for Engineering and Construction

441Project Planning for Engineering and Construction

442RFQs for Project-based Procurement

443Purchase Orders for Project-based Procurement

444Equipment & Tools Management for Construction

445Project Forecasting & Earned Value Management

446Revenue Recognition for Projects

447Contract Billing for Engineering and Construction

448Project Reporting for Engineering and Construction

449Time Entry for Construction

Industry-Specific Scenarios


439 project setup for engineering and construction l.jpg

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:


440 project budgeting for engineering and construction l.jpg

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:


441 project planning for engineering and construction l.jpg

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:


442 rfqs for project based procurement l.jpg

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:


442 rfqs for project based procurement9 l.jpg

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:


443 purchase orders for project based procurement l.jpg

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:


444 equipment and tools management l.jpg

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:


445 project forecasting earned value management l.jpg

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


446 revenue recognition for projects l.jpg

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


447 contract billing for engineering and construction l.jpg

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:


448 project reporting for engineering and construction l.jpg

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:


449 time entry for construction l.jpg

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:


  • Login