Project Planning for Engineering and Construction
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Project Planning for Engineering and Construction SAP Best Practices for Engineering, Construction, and Operations (India). SAP Best Practices. 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.

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Sap best practices

Project Planning for Engineering and ConstructionSAP Best Practices for Engineering, Construction, and Operations(India)

SAP Best Practices

Scenario overview 1


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).


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.

Scenario Overview – 1

Purpose and Benefits:

Scenario overview 2

Enhancement Package 4 for SAP ERP 6.0

Project manager

Devise the project schedule

Devise the construction production plan (Physical 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

Scenario Overview – 2

SAP Applications Required:

Company Roles Involved in Process Flows:

Key Process Flows Covered:

Scenario overview 3

Business context

The contractor is awarded a contract for a construction job.

This project scope is set in the contract, for which a project is created, with preliminary budget and timelines roughly developed.

A detailed project plan is developed and broadly deployed in the organization to enable delivering the job, involving engineers, project, purchasing, controlling staff.

The first version of the budget is then created as the project baseline.

Project Planning for Engineering and Construction

Devise a detailed schedule with a sequence of tasks of the work to perform

Assign work centers as task force to network sub-activities

Determine the physical output (qty + UoM) each task has to deliver

Plan the labor of Procurement, Engineering, and Preparation for concrete installation

Plan the purchase of subcontractor's services

Create construction material requirements

Release purchase requirements

Baseline time schedule calculation

Creation of project reports – Baseline

Assign this budget as the baseline and release the project for execution to start

Scenario Overview – 3

Detailed Process Description:

Process flow diagram
Process Flow Diagram

Project Planning for Engineering and Construction


Project Setup for Engineering and Construction (439)

Project Budgeting for Engineering and Construction (440)

Preliminary project plan is ready

Project Manager

Adding the Physical Output (Quantities) in the Network

Reassigning Network Sub-activities to Project

Adding Project with Network Activities from Template

Planning the Labor for Concrete Installation

Planning the Purchase of Subcontractor's Services

Planning the Automated Purchase of Construction Material

Releasing Purchase Requirements

Baseline Time Schedule Calculation

Project Reporting for Engineering and Construction (448)

Baseline - Approval and Release for Construction


Diagram Connection



Hardcopy / Document

External to SAP

Financial Actuals

Business Activity / Event

Budget Planning

Unit Process

Manual Process

Process Reference

Existing Version / Data

Sub-Process Reference

Process Decision

System Pass/Fail Decision