Scenario Overview:: Equipment Construction Management

Scenario Overview:
U71: Equipment
Construction Management
U71: Equipment Construction
Management
Plan yearly investment structure, and edit yearly investment planning

according to investment structure
Manage appropriation request process and supply project information
in this phase
Plan, manage and control structures, schedules, costs and resources
Support of real-time engineering collaboration with partners
To offer logistical and financial control mechanism
Project analysis and evaluation
 SAP AG 2006
Equipment Construction Management
Utilities
Industrial Machinery
Machinery & Components
and Equipment Value Chain 4
U71
E71 O v eSummary
r v i e w Content
Content
Equipment
Management
Construction
 Project managemant cycle

- Investment Planning and Budgeting
- Appropriation Request
- Project Structure
- Project Cash Management
- Project Cost Planning and Bugdet Control
- Project Date Planning
- Material Procurement and Service Outage
- Project Claim
- Project Progress
- Project Analysis and Evaluation
 SAP AG 2006
Organizational Structure – SAP Best Practices for Utilities
Operating
BPIN
Concern
Controlling
Area BP01
Company BP01 BP0X

Code BP Power BP Electric Power
Generation Company Company
Plant BP03
BP01 BP0X
Storage
BP Power Generation BP Electric Power
Plant Plant
Storage
0001 BP01 BP02
0002 0003 0001 0002
Location
Planner Group YU1 Y01 YU2 2 YU1 YU2 2
 SAP AG 2006
U71: Equipment Construction Management
Component View (1)
Cfolder SAP R/3 BW
Planning Investment Program Structure
Budgeting Investment Program Structure
Approving Investment Program Structure
Creating Appropriation Request
Approving Appropriation Request
Maintaining Project Structure
Exchanging Documents
with Partners
Budgeting Project
Maintaining Project Activities
Scheduling Project Activities
Running MRP for Project
Procuring Project Materials
 SAP AG 2006
Component View (2)
Cfolder SAP R/3 BW
Reciving/Issuing Project Materials
Procuring External Service
Confiming Project Activities
Calculating Project Progress
Managing Project Claim
Settling Project Cost
Project Information
Analysis
 SAP AG 2006
Business Benefits
Project Life Cycle Management

Via IM and PS components, you can manage all phases in project life
cycle, such as feasibility research, appropriation request, primary design, detail
design, project execution, project final accounting, etc.
Effective Project Cost Control
You can control the whole yearly investment costs of an enterprise or corporate
group and manage all the captial investment based on IM; and you also can
control the costs of a project based on PS.
 Progress Tracking
Closely monitor the progress of projects and the activities involved in
the project. The number of purchase orders made and the respective number
of materials issued and delivered is tracked in the system.
Effective project analysis
Progress analysis is use to determine planned/actual project progress values,
and to compare them. In the projects, it enables to identify
cost and schedule variances early and take appropriate action before
breakdown.
 SAP AG 2006
Construction Life-Cycle – 4 Phases and 8 major Steps
Top Down and 1

Bottom Up
Investment
Investment Planning 2 Specification and Design
Management and Budgeting
PreliminaryCollaborative
Project Engineering
Design Project Management
Service Management 1 Budgeting
7 3 Detail Design
Project 8 Collaborative Engineering
4 Execution Settlement Project Management
2 Specify
Service Contract
Progress Confirmation & Design
Payment Run
Supplier
4 Selection
6
Equipment
3 Scheduling
Procurement Supplier Base Analysis
Project Stock Management Contract Management
Project MRP
Network Activity Structuring
5 Scheduling
Project
Scheduling
 SAP AG 2006
Investment Planning and Budgeting
 SAP AG 2006
Project Structure
 SAP AG 2006
Project Classification
Project Summarization
Report according to
project classification
Project Characteristics
 SAP AG 2006
Cfolder: Info Exchange with Designer and Supplier
Owner Partner
Project Call up of the

Structure cFolders
structure
Info call up of Primary Design

updated data
 SAP AG 2006
Budget Control
If the actual and commitment

values exceed specified
Availability tolerance limits, the system
reacts with one of the following
actions:
Budget provides 250.000

Assigned value
120.000 80.000
! Warning
Project -
100.000 100.000
responsible
50.000 50.000 Warning + Email
Budget-
overrun
Purchase Orders Error

order 20,000
100,000
Purchase Funds PP CO
Actual costs PM
requisition reservation
30,000 PS
20,000 30,000
 SAP AG
 SAP AG 2006
Project Cash Management
Via project cash management, project can solve the following questions:
 When must I pay?
 What must I pay for?
 How much money must I pay?
 Which project must pay out money?
 SAP AG 2006

Scenario Overview:: Equipment Construction Management

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Scenario Overview:

Plan yearly investment structure, and edit yearly investment planning

 Project managemant cycle

Company BP01 BP0X

Planner Group YU1 Y01 YU2 2 YU1 YU2 2

Planning Investment Program Structure

Budgeting Investment Program Structure

Approving Investment Program Structure

Creating Appropriation Request

Approving Appropriation Request

Maintaining Project Structure

Maintaining Project Activities

Scheduling Project Activities

Running MRP for Project

Procuring Project Materials

Reciving/Issuing Project Materials

Procuring External Service

Confiming Project Activities

Calculating Project Progress

Managing Project Claim

Settling Project Cost

Project Life Cycle Management

Top Down and 1

Service Management 1 Budgeting

Project Call up of the

Info call up of Primary Design

If the actual and commitment

Budget provides 250.000

Purchase Orders Error

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