Project Management with SAP R/3Teaching Material for the Department ofProduction ManagementVienna University of Economics andBusiness AdministrationAndreas MildAlfred TaudesV.1.01Introduction32Basics & Keywords43Getting ready for the workshop74Case Study134.1Case description134.2Data for Project Realization145Planning the project structure155.1General155.2Implementation in SAP176Scheduling266.1General266.2Basic calculations296.3Implementation306.4The project planning board417Cost planning & Controlling477.1General477.2Implementation488Looking up the costs619Capacity Planning649.1General649.2Implementation in SAP6510Earned Value Analysis6910.1General6910.1.1Measurement techniques6910.1.2Calculation of Earned-Value and Deviation Analysis7310.1.3Aggregation7410.2Implementation7411Execution7711.1Implementation7711.1.1Confirming network activities7711.1.2Invoices7911.1.3Material8312Information System8612.1Implementation8612.1.1Cost reports8612.1.2Earned-Value Analysis9213Literature981 IntroductionThis 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.To make the continuous improvement of this script possible, please report mistakes found or ideas for further development to andreas.mildwu-wien.ac.at.2 Basics & KeywordsSAP 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 communication. AFOS (Hrsg.) SAP Arbeit, Management. Braunschweig/Wiesbaden 1996 p.59 Although R/3 is designed for complete integration, it can also be used for a couple of business areas. Computerwelt No. 13 of 13. 3. 1998, p. 20 SAP is the abbreviation for “Systeme, Anwendungen, Produkte”, the German words for “Systems, Applications, Products”. AFOS (Hrsg.) SAP Arbeit, Management. Braunschweig/Wiesbaden 1996 p. 59 Information about the company can be found at: http:/www.sap.com.Projects are tasks with special characteristics. Attributes of a project are the following issues: complexity, non-repetitivity, high risk detailed goals to be achieved time restrictions high cost and capital expenditure quality requirements often strategic significanceTo 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.A project starts out as a statement of work which is either a written description of 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 package can be defined as “a group of activities combined to be assignable to a single organizational unit.” Chase R./Aquilano N./Jacobs R. Production and Operations Management: Manufacturing and Services, p.48 The 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 packagesWBS can be structured according to object function phaseWhich 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