Project Management with SAP R/3 Teaching Material for the Department of Production Management ViennaUniversity of Economics and Business Administration Andreas Mild Alfred Taudes V.1.0 1 Introduction . 42 Basics & Keywords . 53 Getting ready for the workshop . 10 4 Case Study . 19 4.1 Case description . 19 4.2 Data for Project Realization . 23 5 Planning the project structure . 24 5.1 General . 24 5.2 Implementation in SAP . 27 6 Scheduling . 40 6.1 General . 40 6.2 Basic calculations . 48 3 / 145 6.3 Implementation . 52 6.4 The project planning board . 65 7 Cost planning & Controlling . 72 7.1 General . 72 7.2 Implementation . 75 8 Looking up the costs . 91 9 Capacity Planning . 95 9.1 General . 95 9.2 Implementation in SAP . 98 10 Earned Value Analysis . 103 10.1 General. 103 10.1.1 Measurement techniques . 105 10.1.2 Calculation of Earned-Value and Deviation Analysis . 111 10.1.3 Aggregation . 112 10.2 Implementation . 114 11 Execution . 116 11.1 Implementation . 117 11.1.1 Confirming network activities . 117 11.1.2 Invoices . 120 11.1.3 Material . 125 12 Information System . 128 12.1 Implementation . 130 12.1.1 Cost reports . 130 12.1.2 Earned-Value Analysis . 137 13 Literature . 144 1INTRODUCTIONThis script serves as a basis for the workshop Project Management with SAP R/3. This workshop is part of a series of SAP-related workshops which are held by the Department of Production Management of the Vienna University of Economics and Business Administration, headed by Prof. Dr. Alfred Taudes. The workshop was developed by Andreas Mild. The goal of this Project Management Workshop is that, after having attended it, each student should be familiar with the theoretical backgrounds and be able to plan and control a project. The project manager has the task of ensuring that the project is executed efficiently, on time, and within the budget - which he/she achieves by making certain that the required resources and funds are available when needed. Every student should then be able to put his/her SAP knowledge into action. 5 / 145 To make the continuous improvement of this script possible, please report mistakes found or ideas for further development to andreas.mildwu-wien.ac.at. 2BASICS& KEYWORD SSAP R/3 is an integrated and industry-independent standard software which covers, integrates and connects all functional areas in a business. SAP AG defines integration as defined munication.1Although R/3 is designed for plete integration, it can also be used for a couple of business areas.2SAP is the abbreviation for“ Systeme, Anwendungen, Produkte”, the German words for “ Systems, Applications, Products”.3Information about the pany can be found at: .sap. 1AFOS (Hrsg.) SAP Arbeit, Management. Braunschweig/Wiesbaden 1996 p.59 2puterwelt No. 13 of 13. 3. 1998, p. 20 3AFOS (Hrsg.) SAP Arbeit, Management. Braunschweig/Wiesbaden 1996 p. 59 Projects are tasks with special characteristics. Attributes of a project are the following issues: ?plexity, non-repetitivity, high risk ?detailed goals to be achieved ?time restrictions ?high cost and capital expenditure ?quality requirements ?often strategic significance To be able to plan, monitor, control, and carry out a project as a whole, the project goals must be precisely described and the activities to be performed have to be structured. A project can be described as follows: ?according to how it is organized, i.e. by explaining the project structure, ?according to the processes involved. 7 / 145 A project starts out as a statement of workwhich is either a written descriptionof the objectives to be achieved and the desired rough schedule like start and end dates. In the description one could include also performance metrics and budget constraints. A project is further subdivided into meaningful pieces, referred to as tasks . Tasks take usually less than a few months. The task can be further subdivided into subtasks . A work packagecan be defined as “ a group of activities bined to be assignable to a single organizational unit.” 4The project tasks, subtasks, and work packages are brought into a hierarchy by defining a work breakdown structure. The individual elements represent activities within the work breakdown structure and are called work breakdown structure elements (WBS elements ). WBS elements can be: ?tasks ?partial tasks which are subdivided further ?work packages WBS can be structured according to ?object ?function 4Chase R./Aquilano N./Jacobs R. Production and Operations Management: Manufacturing and Services, p.48 ?phase Which kind of structuring is used depends on the focus of the project. Objects orientation is often used, if the main part of the project is a physical object like a power plant. Functional organisation is preferred, if many different parts of an organisation or many organisations are involved. In practice, all three kinds of structuring are used within one WBS. “ Project Management can be defined as planning, directing, and controlling resources (peop