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NLNG Connect Project SAP Business Process Design Document

PD CAPEX Projects

NLNG Connect Project

Business Blueprint Document


PD CAPEX Projects
May 2014

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Contents

1 Document Purpose 13

2 Background 14

3 PD CAPEX Projects Business Scenario Overview 15

3.1 Scenario Overview 15

3.2 Solution Offering - Portfolio and Project Management Overview 16

3.2.1 SAP Portfolio and Project Management (PPM) 16

3.2.2 SAP Project Systems (PS) 17

3.3 System Solution Overview 18

3.4 Key Objects in SAP PPM/PS 19

3.4.1 Portfolio 20

3.4.2 Portfolio Buckets 20

3.4.3 Portfolio Items 20

3.4.4 Item Decision points 20

3.4.5 Portfolio Initiatives 20

3.4.6 Questionnaires and Scoring Models 20

3.4.7 Reviews 21

3.4.8 Versions 21

3.4.9 Project Definition 21

3.4.10 Work Breakdown Structure (WBS) 21

3.4.11 Network 21

3.4.12 Network Activity 21

3.4.13 Work Center 22

3.4.14 Activity Type 22

4 Project Initiation/Screening Process 23

4.1 Business Process Requirements 24

4.2 Business Process Description 25

4.2.1 Process Characteristics Table 26

4.3 Business Process Flow Diagrams 27

4.3.1 Project Initiation / Screening Process Identify phase 27

4.4 Process Step Detailed Requirements and Solution 28

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4.4.1 Project Initiation / Screening Process Identify phase 28

4.4.2 Process Requirement Table 33

4.5 Locations where this Business Process is performed 36

4.6 Operational Decisions or Logic within the Process 36

4.7 SOX and Legal Considerations and Company Specific Policies 36

4.8 Reference to Key Process Changes and Process KPIs 36

4.8.1 Key Process Changes 36

4.8.2 Process KPIs 37

4.9 Integration Points 37

4.10 Potential Future Process Improvements 38

4.11 Organization Structure Considerations 38

4.12 Master Data Considerations 38

4.13 System Configuration Considerations 38

4.13.1 Portfolio Type 38

4.13.2 Portfolio Item type 39

4.13.3 Change Process 40

4.13.4 Portfolio Item Numbering 40

4.13.5 Portfolio Item Categories and Technology Type 41

4.13.6 Portfolio Item Area, Location 42

4.13.7 Portfolio Item Status 42

4.13.8 Item Decision Point Status 43

4.13.9 Questionnaires and Scoring Models: 43

4.13.10 Portfolio Item Priority 45

4.13.11 Customer Defined Fields 46

4.14 Workflow 48

4.15 Reports 49

4.16 Interfaces 49

4.17 Data Conversion 49

4.18 Enhancements 49

4.19 Output (e.g. Forms) 49

4.20 SOA (Service Oriented Architecture) 49

4.21 Third Party Solution 50

4.22 Authorizations 50

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4.23 Change Impact Summary 50

4.24 Training Requirements 53

4.25 Testing Requirements 53

4.26 Control Requirements 54

5 Initial Planning and IID Approval Process 55

5.1 Business Process Requirements 55

5.2 Business Process Description 56

5.2.1 Initial Planning Process 56

5.2.2 IID Approval Process 57

5.2.3 Process Characteristics Table 57

5.3 Business Process Flow Diagrams 59

5.3.1 Initial Planning Process Assess and Select phase 59

5.3.2 IID Approval Process 60

5.4 Process Step Detailed Requirements and Solution 61

5.4.1 Initial Planning Process 61

5.4.2 IID Approval process 65

5.4.3 Process Requirement Table 68

5.5 Locations where this Business Process is performed 69

5.6 Operational Decisions or Logic within the Process 70

5.7 SOX and Legal Considerations and Company Specific Policies 70

5.8 Reference to Key Process Changes and Process KPIs 70

5.8.1 Key process changes 70

5.8.2 Process KPIs 70

5.9 Integration Points 71

5.10 Potential Future Process Improvements 71

5.11 Organization Structure Considerations 71

5.12 Master Data Considerations 72

5.13 System Configuration Considerations 72

5.13.1 Financial Views / Financial Category / Financial Category Group 72

5.13.2 Capacity Views / Capacity Category / Capacity Category Group 73

5.14 Workflow 76

5.15 Reports 77

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5.16 Interfaces 77

5.17 Data Conversion 77

5.18 Enhancements 77

5.19 Output (e.g. Forms) 77

5.20 SOA (Service Oriented Architecture) 78

5.21 Third Party Solution 78

5.22 Authorizations 78

5.23 Change Impact Summary 79

5.24 Training Requirements 80

5.25 Testing Requirements 80

5.26 Control Requirements 80

6 Detailed Planning Process 82

6.1 Business Process Requirements 82

6.2 Business Process Description 82

6.2.1 Process Characteristics Table 83

6.3 Business Process Flow Diagrams 85

6.3.1 Detailed Planning Process Define Phase 85

6.4 Process Step Detailed Requirements and Solution 86

6.4.1 Detailed Planning Process Define Phase 86

6.4.2 Process Requirement Table 90

6.5 Locations where this Business Process is performed 92

6.6 Operational Decisions or Logic within the Process 92

6.7 SOX and Legal Considerations and Company Specific Policies 92

6.8 Reference to Key Process Changes and Process KPIs 92

6.8.1 Key Process Changes 92

6.8.2 Process KPIs 93

6.9 Integration Points 93

6.10 Potential Future Process Improvements 93

6.11 Organization Structure Considerations 94

6.12 Master Data Considerations 94

6.13 System Configuration Considerations 94

6.14 Workflow 94

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6.15 Reports 95

6.16 Interfaces 95

6.17 Data Conversion 95

6.18 Enhancements 95

6.19 Output (e.g. Forms) 95

6.20 SOA (Service Oriented Architecture) 95

6.21 Third Party Solution 96

6.22 Authorizations 96

6.23 Change Impact Summary 96

6.24 Training Requirements 98

6.25 Testing Requirements 98

6.26 Control Requirements 98

7 Portfolio Ranking Process 99

7.1 Business Process Requirements 99

7.2 Business Process Description 99

7.2.1 Process Characteristics Table 100

7.3 Business Process Flow Diagrams 101

7.3.1 Portfolio Ranking Process 101

7.4 Process Step Detailed Requirements and Solution 102

7.4.1 Portfolio Ranking Process 102

7.4.2 Process Requirement Table 103

7.5 Locations where this Business Process is performed 104

7.6 Operational Decisions or Logic within the Process 105

7.7 SOX and Legal Considerations and Company Specific Policies 105

7.8 Reference to Key Process Changes and Process KPIs 105

7.8.1 Key Process Changes 105

7.8.2 Process KPIs 105

7.9 Integration Points 105

7.10 Potential Future Process Improvements 106

7.11 Organization Structure Considerations 106

7.12 Master Data Considerations 106

7.13 System Configuration Considerations 106

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7.13.1 Reviews 106

7.13.2 What if scenarios 107

7.14 Workflow 107

7.15 Reports 107

7.16 Interfaces 108

7.17 Data Conversion 108

7.18 Enhancements 108

7.19 Output (e.g. Forms) 108

7.20 SOA (Service Oriented Architecture) 108

7.21 Third Party Solution 108

7.22 Authorizations 109

7.23 Change Impact Summary 109

7.24 Training Requirements 110

7.25 Testing Requirements 110

7.26 Control Requirements 110

8 Annual Budget Preparation and Approval Process 111

8.1 Business Process Requirements 111

8.2 Business Process Description 112

8.2.1 Process Characteristics Table 113

8.3 Business Process Flow Diagrams 114

8.3.1 Annual Budget Preparation and Approval process 114

8.4 Process Step Detailed Requirements and Solution 115

8.4.1 Annual Budget Preparation and Approval process 115

8.4.2 Process Requirement Table 118

8.5 Locations where this Business Process is performed 120

8.6 Operational Decisions or Logic within the Process 120

8.7 SOX and Legal Considerations and Company Specific Policies 120

8.8 Reference to Key Process Changes and Process KPIs 121

8.8.1 Key Process Changes 121

8.8.2 Process KPIs 121

8.9 Integration Points 122

8.10 Potential Future Process Improvements 122

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8.11 Organization Structure Considerations 122

8.12 Master Data Considerations 122

8.13 System Configuration Considerations 123

8.13.1 Financial Views / Financial Category / Financial Category Group 123

8.14 Workflow 123

8.15 Reports 123

8.16 Interfaces 123

8.17 Data Conversion 124

8.18 Enhancements 124

8.19 Output (e.g. Forms) 124

8.20 SOA (Service Oriented Architecture) 124

8.21 Third Party Solution 124

8.22 Authorizations 124

8.23 Change Impact Summary 125

8.24 Training Requirements 126

8.25 Testing Requirements 126

8.26 Control Requirements 127

9 Project Execution and Monitoring Process 128

9.1 Business Process Requirements 128

9.2 Business Process Description 130

9.2.1 Project Execution and Monitoring Process 130

9.2.2 Project Procurement and Contracting Process 130

9.2.3 Project Time Writing Process 131

9.2.4 Period End Processing Process 131

9.2.5 WBS / Project Closing Process 132

9.2.6 Process Characteristics Table 132

9.3 Business Process Flow Diagrams 135

9.3.1 Project Execution and Monitoring Process 135

9.3.2 Project Procurement and Contracting Process 136

9.3.3 Project Time writing Process 137

9.3.4 Period End Processing Process 138

9.3.5 WBS / Project Closing Process 139

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9.4 Process Step Detailed Requirements and Solution 140

9.4.1 Project Execution and Monitoring Process 140

9.4.2 Project Procurement and Contracting Process 146

9.4.3 Project Time Writing Process 157

9.4.4 Period End Processing Process 159

9.4.5 WBS / Project Closing Process 162

9.4.6 Process Requirement Table 165

9.5 Locations where this Business Process is performed 168

9.6 Operational Decisions or Logic within the Process 168

9.7 SOX and Legal Considerations and Company Specific Policies 169

9.8 Reference to Key Process Changes and Process KPIs 169

9.8.1 Key Process Changes 169

9.8.2 Process KPIs 169

9.9 Integration Points 170

9.10 Potential Future Process Improvements 170

9.11 Organization Structure Considerations 170

9.12 Master Data Considerations 171

9.13 System Configuration Considerations 171

9.13.1 Project Coding Mask 171

9.13.2 Project Profile 172

9.13.3 Network Profile 174

9.13.4 Network Type 176

9.13.5 Parameters for Network Scheduling 177

9.13.6 Planning Profile 179

9.13.7 Budget Profile 180

9.14 Workflow 181

9.15 Reports 181

9.16 Interfaces 181

9.17 Data Conversion 182

9.18 Enhancements 182

9.19 Output (e.g. Forms) 182

9.20 SOA (Service Oriented Architecture) 182

9.21 Third Party Solution 182

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9.22 Authorizations 183

9.23 Change Impact Summary 183

9.24 Training Requirements 186

9.25 Testing Requirements 186

9.26 Control Requirements 187

10 Project Change Request Management Process 189

10.1 Business Process Requirements 189

10.2 Business Process Description 189

10.2.1 Project Change Request Management Process (Cost Impact) 189

10.2.2 Additional Appropriation Approval Process 190

10.2.3 Process Characteristics Table 190

10.3 Business Process Flow Diagrams 192

10.3.1 Project Change Request Management Process (Cost Impact) 192

10.3.2 Additional Appropriation Approval Process 193

10.4 Process Step Detailed Requirements and Solution 194

10.4.1 Project Change Request Management Process (Cost Impact) 194

10.4.2 Additional Appropriation Approval Process 198

10.4.3 Process Requirement Table 201

10.5 Locations where this Business Process is performed 202

10.6 Operational Decisions or Logic within the Process 202

10.7 SOX and Legal Considerations and Company Specific Policies 202

10.8 Reference to Key Process Changes and Process KPIs 203

10.8.1 Key Process Changes 203

10.8.2 Process KPIs 203

10.9 Integration Points 203

10.10 Potential Future Process Improvements 203

10.11 Organization Structure Considerations 203

10.12 Master Data Considerations 204

10.13 System Configuration Considerations 204

10.14 Workflow 204

10.15 Reports 205

10.16 Interfaces 205

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10.17 Data Conversion 205

10.18 Enhancements 205

10.19 Output (e.g. Forms) 205

10.20 SOA (Service Oriented Architecture) 205

10.21 Third Party Solution 205

10.22 Authorizations 206

10.23 Change Impact Summary 206

10.24 Training Requirements 207

10.25 Testing Requirements 207

10.26 Control Requirements 208

11 Appendix A: Master Data Considerations 209

11.1 Standard Portfolio Structure 209

11.2 Alternative Portfolio Hierarchy 210

11.3 Standard Work Breakdown Structure 210

12 Appendix B: Key Business Reports Inventory 213

13 Appendix C: List of Data Conversion Objects 218

14 Appendix D: List of Enhancements 221

15 Appendix E: PPM/PS Authorization Framework 230

15.1 PPM Authorization Framework Definition 230

15.2 PS Authorization Framework Definition 230

15.2.1 PS Authorization Framework 231

16 Appendix F: Training Requirements 233

17 Appendix G: Table of Acronyms, Abbreviations and Terms 234

18 Appendix H: Glossary of Terms 237

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1 Document Purpose

The purpose of this document is to clearly define the proposed SAP Business Process Design for all processes
associated with the Initiation, Planning, Execution, Monitoring and Close-Out of PD CAPEX Projects in Nigeria
LNG Limited. This Business Process Design document clearly outlines how the SAP Project Management
modules in scope of this implementation (i.e. SAP Portfolio and Project Management (PPM) and SAP Project
Systems (PS) modules) have been integrated with other SAP and non-SAP applications to support the delivery
of PD CAPEX projects in line with stated business requirements.

This document has been prepared by NLNG Subject Matter Experts (SMEs) and consultants from the
consulting partner (Serve Consulting) as documentation of the outcomes and agreements reached at the
various SAP Business Blueprint workshops held with nominated representatives of the PP Business. The
document is structured in a way that explains the business requirements for each process and then goes
ahead to describe how the SAP solution will be configured to ensure that the stated business requirements
are catered for.

The document will be signed off by the Business Process Owners as evidence of the Project Delivery
Departments ownership of their future Business Processes in SAP. The document will also form the basis of
the configuration and development of the SAP PPM/PS system for PD CAPEX projects during system
realization.

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2 Background

The purpose of this section is to provide the overall context of the NLNG Connect Project and the Business
Blueprint phase.

NLNG is implementing SAP to eliminate limitations in her work processes which make the organization
operate less efficiently. Some key benefits expected from the implementation include:
Provision of a single data repository for consistency and fact based decision-making
Provision of real time access to information
Operating with industry best practices

The NLNG Connect project is being implemented in line with the ASAP methodology and will be delivered
across the following phases:

Project Preparation;

Business Blueprint;

Realization

Final Preparation;

Go-live and Support.

This document is a major deliverable of the Business Blueprint Phase and will provide a comprehensive
definition of agreed business requirements, the To-Be business process design and the proposed SAP
PPM/PS design that addresses the business requirements. It is a crucial document as it defines the scope of
what will be delivered by this project.

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3 PD CAPEX Projects Business Scenario Overview

3.1 Scenario Overview

Capital Projects managed within the Production Division in NLNG are identified, developed, executed and
handed over to the Asset Owner in line with guidelines outline in the NLNG Project Management Manual
(PMM).

The NLNG Project Management System clearly defines the overall approach to the delivery of capital projects
in NLNG. This also forms the basis for the implementation of a Portfolio and Project management tool for
NLNG.

The implementation of SAP Portfolio and Project Management (PMM) and SAP Project Systems (PS) modules
will complement the NLNG Project Management System by providing a platform to strengthen and reinforce
the requirements of the process. It will provide the required controls and drive consistency in the way
projects are executes across the Production Division.

The PD CAPEX Portfolio of projects includes projects across the following categories:

i.) Infrastructure Projects (Industrial Area, Residential Area, and Community)


ii. Plant Projects (Process, Utilities, Off sites, Electrical, Instrumentation & Control)
iii. Pipeline & GTS Projects

Figure 3.1 Opportunity Realisation Process

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The NLNG Project Management System (PMS) operates a decision driven, stage-gated process for maturing
opportunities into projects. Projects are matured across phases with a Decision Gate (DG) at the end of each
phase. At the Decision Gate, a Decision review Board (DRB) reviews the project and makes a decision to stop.
Hold, recycle or proceed to the next phase of the project. The various roadmaps for project execution in
NLNG are shown in the figure below.

Figure 3.2 NLNG PMS Project Roadmaps

3.2 Solution Offering - Portfolio and Project Management Overview

The SAP solution offering for Portfolio Management and Project Execution within NLNG consists of two
primary modules. They are:
SAP Portfolio and Project Management (PPM) and
SAP Project Systems (PS)
The overall solution landscape however includes interfaces to other SAP and non-SAP functional modules
which provide connections to other business functions that support the delivery of capital projects or that
are required for effective functioning of the entire SAP solution. Section 3.3 provides details on the additional
modules and the interface to SAP PPM/PS.

3.2.1 SAP Portfolio and Project Management (PPM)

SAP Portfolio and Project Management (PPM) will support the strategic management of the PD CAPEX
Project Portfolio to provide decision support that will enable NLNG implement the right mix of projects with

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the highest benefit to the organization. SAP PPM will enable capturing all project proposals, assessing those
projects against strategic objectives, grouping them logically in the right buckets, prioritizing them, approving
them and continuously monitoring/controlling the portfolio of projects. SAP PPM will also support project
governance by providing the platform to ensure that consistent standards are applied in the implementation
of projects across the Production Division. PPM will additionally give improved visibility to project
performance and enhanced dashboard views, reports etc
The SAP PPM module will support Portfolio and Projects Management for PD CAPEX projects in the following
ways:
Provide a centralized repository for all current and potential Projects across the business.
Enable the business to prioritize Projects across the entire Portfolio using Questionnaires and scoring
models
Support the annual budgeting process by providing required information for budget preparation and
linkage to the SAP Business Planning and Consolidation (BPC) module.
Improve the management of stage gate controls by ensuring all mandatory deliverables for a phase
are satisfactorily completed before proceeding to the next phase.
Improve project governance through system based approvals.
Ensure standardization of processes across the business for all Project phases.
Enhance portfolio reporting functionality for PD CAPEX projects

3.2.2 SAP Project Systems (PS)

SAP Project Systems (PS) on the other hand, is a mature system solution based in the ERP Central
Components (ECC). Its strength lies in its seamless integration with Finance and Controlling (FICO), Materials
Management (MM) and Human Capital Management (HCM). With SAP PS, you can create and structure
projects, plan and monitor project financials, perform time scheduling, manage materials and logistics, assign
activities to resources as well as report on project status as required for flawless project execution and sound
project controls. With SAP PS, project reporting is real time and data duplication is eliminated as each area of
the business can access the same version of data.

Portfolio and Project Management Module integrates strongly with SAP Project Systems (PS) Module. All
SAP PS Projects will be initiated in SAP PPM Module and shall be subsequently managed within SAP PS
module during project execution. Financial and capacity data from the PS projects continually roll up to PPM
to enable aggregated reporting at the bucket and portfolio levels in PPM.

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3.3 System Solution Overview

The diagram in this section provides an overview of the overall system solution design to be implemented for
Projects Delivery and Portfolio Management in NLNG. It highlights automated linkages between the PPM/PS
module (s) and other SAP modules as would be implemented on this project.

Figure 3 - SAP System Solution Overview for Portfolio and Project Management

Some high level descriptions of the functions of the respective modules in the solution design is detailed
below:
SAP Portfolio and Project Management - New project ideas will be initiated, planned, ranked and
approved in the SAP PPM module and ongoing monitoring/controlling of project performance at
various levels in the portfolio structure will also be performed in PPM. PPM will also support project
governance by handling system based approvals, stage gate controls and Item lifecycle management.
SAP Project Systems - SAP Project Systems will support the execution of projects. It will link
effectively to modules in FICO and MM to ensure that activities like raising commitments (i.e. PRs,
POs etc.), receipt of goods and services and payment of invoices are effectively executed.
SAP SRM/MM/CLM - The SAP MM/SRM/CLM modules will be the primary SAP tools used for the
management of procurement, contracting, inventory and warehousing functions in NLNG. Projects
rely heavily on efficient procurement and contracting systems for effective delivery. Project related
purchasing in SAP will be initiated from the SAP Project Systems module and purchase requisitions

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from SAP PS will be made available in SAP MM for further processing by the Procurement team. The
SAP Supplier Relationship Management (SRM) module will be for facilitating the bidding process,
selecting the appropriate sources of supply etc while the Contract Lifecycle Management (CLM) will
be used to manage contracts in SAP. SAP SRM and CLM will not be directly linked to the PS/PPM
system.
SAP HCM - Personnel Master records, Business Partners, HR Organization structures etc are defined
in SAP Human Capital Management (HCM) module. SAP HCM linkage to the PPM/PS modules
facilitates activating workflow notifications in PPM and assigning resources to PPM / PS objects.
SAP CO - SAP Controlling module contains cost centers. Internal labor costs (cost center / activity
type) are maintained in CO module which is utilized in SAP Project Systems module. In order to settle
project costs to appropriate cost centers, settlement rules are maintained with cost centers for
appropriate WBS Elements.
SAP FI - SAP Finance module is designed to integrate (through master data assignment) with Asset
Accounting. In order to settle project costs to appropriate Assets, settlement rules are maintained
for appropriate WBS Elements. Payment of invoices for goods and services received in SAP will be
managed in SAP FI.
SAP BI/BW/BO - These modules provides an extraction layer which extracts data out of the SAP
database, transform the data and make it available for enhanced reporting and analytics.
SAP Business Planning and Consolidation (BPC) - Business Planning and Consolidation helps in
consolidation of data and will be used companywide for Budget preparation (OPEX and CAPEX
budgeting). Its link with SAP PPM will be used to extract aggregated information from individual
projects as required for the preparation of the annual budget.
SAP GRC It is planned to use the SAP Governance, Risk, and Compliance (GRC) module to manage
Segregation of Duties (SODs) and Access control to the various SAP Modules.

3.4 Key Objects in SAP PPM/PS

This section provides a succinct generic description of key objects in SAP PPM and PS that will be referred to
in further detail within this document. These brief descriptions provide readers who are not familiar with
these SAP modules with some background information on key objects that are further discussed in this
document.

PPM Objects

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3.4.1 Portfolio

A portfolio consists of a standard hierarchy of buckets which is managed independently in an organizations


project planning process. The buckets contain portfolio items which can be proposals or projects.

3.4.2 Portfolio Buckets

A Bucket is a container for portfolio items. A bucket can contain multiple portfolio items or other buckets. A
bucket and an item cannot co-exist in the same bucket. Items must be created at the lowest-level bucket.

3.4.3 Portfolio Items

The portfolio item is a generic object that is managed within a portfolio and these objects can be projects,
proposals or concepts etc. The portfolio Item type determines the stage gates through which a portfolio item
passes.

3.4.4 Item Decision points

Decision points of an item are used to subdivide a portfolio item into the individual stages/phases it passes
through. The decision points of a portfolio item run in a defined sequence.

3.4.5 Portfolio Initiatives

A Portfolio Initiative can have one or more individual portfolio items linked to it and is used to aggregate
information and data for control, analysis and reporting of related and dependent portfolio items which
collectively deliver a particular scope.

3.4.6 Questionnaires and Scoring Models

A questionnaire is used to define quantitative scores for qualitative objects. Questionnaires are designed
with questions and answers and have weights assigned to each answer thereby computing a score for the
questionnaire when the answers are populated.

Scoring Models are used to combine the outputs of questionnaires with other qualitative attributes of the
item to generate a score. Questionnaires and Scoring models are used extensively in project prioritization
and ranking.

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3.4.7 Reviews

A review is a collection of portfolio objects that are grouped together at a specific time to compare certain
parameters of those objects in one view.

3.4.8 Versions

A version is a snapshot or picture of an object (e.g. a portfolio Item or Initiative) taken at a specific point in
time. Item versions contain all details/fields/information in Item at that point in time in a manner that cannot
be edited.

PS Objects

3.4.9 Project Definition

Project Definition is a binding framework for all elements created within the structure of a project in SAP PS.
It is the header of the project which establishes the identity of the project and contains default and control
values for the project structure.

3.4.10 Work Breakdown Structure (WBS)

The work breakdown structure (WBS) is a model of the project that organizes the project scope into a
hierarchy. It comprises of hierarchically structured elements that enable top-down/bottom-up scenarios for
planning and executing the project.

3.4.11 Network

A network represents the flow of a project or of activities within a project. Networks contain a list of
activities to be processed in order to achieve the project objectives and can be used for planning, scheduling,
controlling and monitoring of project dates and progress.

3.4.12 Network Activity

Network activities break down the project into executable tasks and each activity can have duration,
resources and costs assigned to it. Initiation of the material procurement and service call offs can be initiated
using network activities. Internal Activities and Service Activities are used extensively in this document.

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Internal Activities
Using internally processed activities, you can plan and execute work that is produced by resources
that are internal to an organization. This kind of activity does not trigger any form of commitment to
external parties (i.e. POs) nor trigger any requests related to external support outside company.
Material components can be assigned to internal activities to trigger purchase requisitions for these
Items.

Service Activities
Using service activities, you determine which services are required from external parties/companies
to carry out a project. The development of service activities triggers the procurement process and
facilitates engaging external parties to carry out the works.

3.4.13 Work Center

A work center is a group of people or machines who performs a specific kind of work in an organization. The
work center has an available capacity and the activities performed at or by the work center are valuated by
charge rates, which are determined by cost centers and activity types.

3.4.14 Activity Type

Activity types are required for internal activity allocation and can serve as tracing factors for costs and a
channel of getting a particular skill set/ skill level. Activity types are also used to assign a rate to a work
center.

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4 Project Initiation/Screening Process

The Project Initiation/screening process documents how the SAP system will support the registration and
progression of opportunities in the Identify phase until sufficient definition is achieved to enable the Decision
Review Board (DRB) make a decision at Decision Gate 1 (DG1) to cancel, place on hold or continue with the
opportunity. The process also captures how key decisions made at the meeting (i.e. roadmap selection,
decisions to hold or cancel the project etc) are reflected in the SAP system.
Opportunities which could eventually mature into projects are identified in the Identify Phase of the project
where basic deliverables of the phase are put together for presentation to the Governance Board (DRB) for
approval to progress with the proposal.
Figure 4.1 below shows the Project Initiation process for CAPEX projects as defined in the NLNG Project
Management Manual (PMM). After an opportunity is identified and initial screening has been completed by
the Project Initiators Line Manager, a Project Development Engineer is assigned to the project. At this point,
the project proposal will be created in the SAP system to ensure that all proposals are tracked in the system.
Project proposals that emanate from the Asset Reference Plan (ARP) or from management directives are also
registered in SAP PPM as soon as they are identified.

Figure 4.1 Project Initiation Workflow (Ref: NLNG Project Management Manual)

The Project Initiator works with the Project Development Engineer to develop the cost estimate, project
schedule and Project Initiation Note (PIN). When all deliverables are completed and reviewed by the Project

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Assurance Engineer, the proposal is presented to the DRB for approval. Proposals that are approved by the
DRB will progress to the Assess phase for further development while cancelled proposals are kept in an
inactive tab in SAP PPM for future reference.
The SAP PPM tool will provide information on all opportunities considered at the DRB meeting and will
provide a repository for all approved and unapproved proposals.

4.1 Business Process Requirements

Business Process Requirements for this process include:


Business Process Requirements - Project Initiation/Screening process
Allow registration and storage of details on new opportunities and project proposals in the SAP system.
Assign a unique auto-generated proposal number to every proposal item in the SAP system.
Assign a unique sequential auto-generated project number to every proposal approved to become a
project at DG1.
Provide information on both the project number and the proposal number in each item to allow for
easy traceability of the proposals that resulted in a project.
Provide storage fields for various project stakeholders (e.g. Project Initiator, Project Engineer etc) to
ensure that this information is readily available for reporting purposes.
Provide a unique MOC number (in line with the NLNG MOC numbering system) for each project to
support compliance with the NLNG MOC process.
Provide fields for storage of NLNG PMS CAPEX Project classification data such as Project CAPEX range,
project risk, delivery mode (multi or single discipline), project complexity etc
Support selection of the appropriate roadmap for a project in the SAP system on approval of a proposal
by the DRB at DG1. Each roadmap (i.e. roadmaps 1, 2, 3 or 4) should default the corresponding phases
and decision gates as defined in the NLNG Project Management Manual (PMM).
Support provision of an audit trail to all changes in data in the portfolio item.
Provide ability to upload and store documents and URL links in the SAP system.
Provide the ability to check-in, check-out and store versions of documents in the SAP system.
Keep an automatic snapshot or version of the project during major events/changes to the item such as
during gate approvals or when switching roadmaps.
Provide a field that displays information automatically updated information on the project (decision)
status (i.e. forecast, firm, authorized, authorized/committed).

Support tracking of stage gate approvals in the SAP system.

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4.2 Business Process Description

Once a Project Initiator identifies an opportunity, he/she presents it to his/her Line Manager for initial
screening. Once the project is screened by the Line Manager, a Project Development Engineer is assigned to
the project; and basic details of the opportunity are forwarded to the Project Assurance Engineer for creation
of a proposal in the SAP system. Basic details required to create the proposal Item in SAP PPM i.e. project
name, project description, project initiators name and department, project end date etc. are entered into
the system by the Project Assurance Engineer and saved.

A proposal ID number is automatically generated and assigned to the proposal and additional details such as
classification information and NLNG PMS details are populated in the Item as they become available.
Authorizations are also assigned to the relevant parties (i.e. Project Development Engineer) by the Project
Assurance Engineer to enable them either view or make changes to the item as required.

Once a type 0 cost estimate is prepared for the proposal, the cost estimate financial view in PPM is
updated with the estimate. The cost estimate value will be phased annually over the duration of the project
to always give an annual forecast view of the overall cost estimate.

Planned Decision point dates (i.e. Identify phase end date) and Item finish dates are also updated in the
system from the level 1 project schedule.

Relevant project prioritization criteria like NPV and RAM are updated in the system to give the project
priority status. The values of these parameters combined in a predefined scoring model to indicate the
priority of a project. When all Identify phase deliverables are checked and certified okay, the Project
Assurance Engineer then sets the decision point status to Ready for DG1 gate review and then the proposal
can be scheduled for review by the DRB.

The DRB reviews the proposal and decides if the proposal is approved or not. If the Item was not approved
by the DRB, the proposal will either be cancelled, placed on hold or reworked. Irrespective of the
decision here, all relevant documents are uploaded in the SAP system for reference purposes. For
cancelled and on-hold decisions, the item status is set to cancelled and on-hold respectively and this
action immediately moves the item to the Inactive proposals tab on the Item dashboard. For items that are
to be recycled, the item status remains in created status and the Project Development Engineer revises the
relevant deliverables in line with DRB comments and re-presents the project again to the DRB for
consideration.

If the project is approved, the Project Assurance Engineer selects the appropriate roadmap for the project
based on the decision made by the DRB. This is done using the Change Process function in SAP PPM. After

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change process the item status is automatically set to screened and a project snapshot/version is
automatically created.

Relevant documentation (i.e. MoM, PIN etc) are uploaded in SAP PPM for reference purposes. A SAP PS
project is then created automatically from PPM to enable project execution and detailed planning commence
as required. The decision point status for decision point DG 1 is then completed by the Project Assurance
Engineer to complete the Identify Phase of the project.

4.2.1 Process Characteristics Table

The Process characteristics table for the Portfolio/Project Initiation process is shown below:
Process Characteristics - Project Initiation/Screening process
Process Trigger Project proposal/opportunity that has been screened by Line Manager.
Basic details of project proposal (Name, description, Initiators name etc.)
Type 0 Cost Estimate
Process Input
Level 1 project schedule.
Project Initiation Note (PIN).
At the end of this process, the output can be either of the following:
An approved proposal or project with status is set to screened,
Process Output appropriate roadmap selected and decision gate DG1 completed.
A proposal placed on hold with status set to On Hold
A proposal that is not approved with status set to cancelled.
Process Owner Project Delivery Manager (PP)
Process Volumes Each project proposal undergoes this process independently.
Process Frequencies Dependent on how frequently new opportunities or proposals are initiated

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4.3 Business Process Flow Diagrams


4.3.1 Project Initiation / Screening Process Identify phase
Project Initiation / Screening Process (Identify Phase)

Rework

180 View
200 Upload MoM, 220 Update
Automatically 210 Create PS
10 Create Proposal Item PIN and all relevant Decision Point
270 Revise relevant created Item project from PPM
in PPM (Item Status documents in PPM status to Completed
deliverables in line Version (optional)
created)
with DRB comments

00 Minutes of
190
(Project Assurance Engineer)

Meeting, PIN 260 Set Item Status


etc to Cancelled
Line Manager
PPM Administrator

initial screening/
approval

170 Check that Item Cancelled


100 Set Decision
20 Update Proposal Status is changed
Point Status to
Item with additional from created to
Ready for DG1 gate
information Screened
review
250 Cancelled or
Rework

30 Assign 90 Populate Ranking 160 Change process


Authorizations to criteria (Questionnaire to select 240 Upload MoM,
Minutes of
240 Set Item Status appropriate
Proposal Item (FED answers/RAM/NPV Meeting, PIN 230 PIN and all relevant
Engr, Prjt Initiator) etc) to On Hold roadmap (Item documents in PPM
etc
type)

50 Update Cost
Type 0 Cost Estimate Financial
40
Project Development Engineer

Estimate view with Project


Estimate

70 Update Planned 80 Update Item No


Decision Date from Finish Date from On Hold
project schedule project schedule

Level 1
project 60
schedule

Roadmap
150 Decision by
DRB
120
DRB

110 Review Proposal 130 Was IID 140 IID


Proposal Item at Approved/Not Approved requested for the Yes Approval
DG1 review meeting Approved/On next phase? process
Hold?

Not Approved

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4.4 Process Step Detailed Requirements and Solution

4.4.1 Project Initiation / Screening Process Identify phase

The processes are explained in the table below.


Process Steps
ID Type Name Description
00 Start Line Manager initial This is an input to the creation of proposals in SAP PPM. A
event screening/approval line manager has given the approval for a proposal to
proceed after initial screening of the opportunity.
10 SAP Create Proposal Item in The input to this step is an opportunity approved by the
PPM (Item Status Originators Line Manager to progress in the Identify
created) phase for consideration by the DRB at the DG1 review
meeting.
A Portfolio Item is created by selecting the suitable bucket
from the portfolio structure and by selecting the suitable
portfolio Item type. The Project Assurance Engineer is
accountable for creation of proposal "Items" in PPM.
The output of this step is a proposal item that is created
and saved, with an item status of created.
20 SAP Update Proposal Item The input to this step is the Proposal Item with status
with additional Created.
information Update the Proposal Item with the following additional
information:
Project CAPEX Range,
Complexity,
Risk,
Assurance Level
Scaling,
Delivery Mode
Project Development Engineer
Area
Location etc

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Process Steps
ID Type Name Description
The Project Assurance Engineer is responsible for
updating the information.

30 SAP Assign Authorizations to Authorizations are assigned to the Project Development


Proposal Item (Project Engineer, Project Initiator (if required) and any other
Development Engr, Prjt stakeholders that require access to the project. Project
Initiator) Assurance Engineer is responsible for assigning these
authorizations.
The output from this step is the Proposal Item updated
with the assigned authorizations.
40 Manual Type 0 Cost Estimate The Project Development Engineer will obtain the Type 0
Cost Estimate from the Cost Engineer ready for input into
SAP.
50 SAP Update Cost Estimate The Cost Estimate financial view on the Financial Planning
Financial view with screen of the Item is updated by the Project Development
Project Estimate Engineer for each year that the item is planned to run for.
This can also be done on the Financial Planning Dashboard
where a selected number of items can be maintained
simultaneously.
60 Manual Level 1 project schedule The level 1 project schedule will be obtained from the
Project planners by the Project Development Engineer
ready for input into SAP.
70 SAP Update Planned The Level 1 project schedule will be used to update the
Decision Date from planned decision date on the DG1 decision point. The
project schedule Project Development Engineer will be responsible for this
activity.
80 SAP Update Item Finish Date The Level 1 project schedule will be used to update the
from project schedule planned finish date on the Item. Project Development
Engineer will be responsible for this activity.
90 SAP Populate Ranking The input to this step will be information on the RAM

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Process Steps
ID Type Name Description
criteria (Questionnaire score and NPV of the project.
answers/RAM/NPV etc) The Project Assurance Engineer will populate
questionnaire answers for RAM and the NPV value for the
project. Based on the questionnaire answers, the RAM
score for the project will be generated. A preconfigured
scoring model will be used to generate the weighted
project score based on the RAM and NPV. The system will
automatically calculate the Project Score once the
Questionnaire answers for RAM and the NPV value are
updated.
Project Assurance Engineer will be responsible for
updating the questionnaire answers. The output from this
step will be the item updated with the calculated project
score.
100 SAP Set Decision Point The input to this step is the proposal item ready for
Status to Ready for submission to the DRB with all the required information
DG1 gate review completed.
Set the Decision Point status to Ready for DG1 gate
review and save the decision point. This indicates that
the Item is now ready for DG1 review and approval. This
change of Item status will be carried out by Project
Assurance Engineer.
110 Manual Review Proposal Item The DRB deliberates on the proposal at a DRB meeting
at DG1 review meeting and either takes a decision that the proposal should
progress to the next phase or be put On-Hold or
Cancelled.
120 Manual Proposal The DRB may approve, cancel or place a proposed project
Approved/Cancelled/On On Hold. This step reflects the various decisions that
Hold? may be reached at the DRB meeting.

130 Manual Was IID requested for Initial Investment is often required where funding is
the next phase? needed for Front End development activities, Long lead

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Process Steps
ID Type Name Description
materials etc. If a request for IID was made then the
output of this box will be a Yes, if not the output will be
a No.
140 SAP IID Approval process This sub process is executed where IID is required for the
next phase. Details of the IID Approval process can be
found in the Initial Planning / IID Approval process
(chapter 5 of this document).
150 Manual Roadmap Decision by A decision is made by the DRB at the DG1 review meeting
DRB on the appropriate roadmap for the project. From a SAP
PPM viewpoint, this roadmap decision should not be
changed later in the items life cycle. However, if it is
decided later that a different roadmap is required, the
item must be cancelled and a new item created with the
new roadmap.
160 SAP Change process to The Project Assurance Engineer will execute the change
select appropriate process function in SAP PPM to select the appropriate
roadmap (Item type) roadmap. Based on the Roadmap Decision in the DG1
meeting, the Project Assurance Engineer will select one of
the following Item types which are related to the NLNG
PMS Roadmaps:-

1.) Roadmap 1
2.) Roadmap 2
3.) Roadmap 3
4.) Roadmap 4

The output of this step is the item that has now been
changed to reflect the correct decision points based on
the chosen roadmap as well as the item status which is
changed from Created to Screened. The status change
indicates that the item is no longer an active proposal

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Process Steps
ID Type Name Description
but an active item.

170 SAP Check that Item Status Once change process is executed, the status of the Item
is changed from should automatically change to Screened. Project
Created to Assurance Engineer will confirm in the system that the
Screened status has changed to screened.
180 SAP View Automatically During change process, the system will generate a version
created Item Version of the Item and save it for future reference purposes. This
(optional) can be accessed under the miscellaneous tab of the Item.
190 Manual Minutes of Meeting, The Project Assurance Engineer will prepare the Minutes
PIN etc of Meeting and provide the updated PIN as signed by the
DRB for upload into SAP PPM.
200 SAP Upload MoM, PIN and The input to this step is the MoM and other documents /
all relevant documents livelink URLs to be uploaded in SAP PPM.
in PPM The Project Assurance Engineer will upload the Minutes of
Meeting and all other relevant documents to the Item
under the Documents and Notes tab.
210 SAP Create PS project from Carrying out this step indicates that the project is ready to
PPM be transferred to SAP PS where the project execution can
commence.
The Project Assurance Engineer will mark the create
project checkbox and select the PS Project template on
the item and save. Upon saving, a PS Project will be
created automatically and linked to the Item.
The output of this step will be the item linked to the
project definition in PS and the item updated with the
item phases linked to the PS project phase WBS elements.
220 SAP Update Decision Point Once the Identify phase is completed, the Project
status to Completed Assurance Engineer will change the status of the Decision
Point DG1 to completed and save. This step in the
system relates to the completion of the Identify phase.

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Process Steps
ID Type Name Description
The output is the item updated with the decision point
DG1 status to indicate that the Identify phase is complete.
The decision point is greyed out and further editing
cannot take place on it.
230 Manual Minutes of Meeting, The Project Assurance Engineer will prepare the Minutes
PIN etc of Meeting for upload into SAP PPM.
240 SAP Upload MoM, PIN and The input to this step is the MoM and other documents /
all relevant documents live link URLs to be uploaded in SAP PPM.
in PPM The Project Assurance Engineer will upload the Minutes of
Meeting and all other relevant documents to the Item
under the Documents and Notes tab.
250 Manual Cancelled or Rework Decision on whether the Item should be cancelled or
reworked. The decision would have been taken by the
DRB in the DG1 review meeting.
260 SAP Set Item Status to The input to this step is a decision made by DRB at DG1 to
Cancelled cancel the proposal.
Based on the decision from the DG1 meeting, the Project
Assurance Engineer will set the Item status to Cancelled
and save.
The output of this step is the item updated with status
cancelled.

4.4.2 Process Requirement Table

The table below shows a mapping of the proposed solution to the business requirements and indicates any
GAPs that may require developments.

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Process Requirement Table


ID Requirement Solution Gap GAP Action
1 Allow registration and storage of All new opportunities/ No Gaps No Action
details on new opportunities and potential projects can be Identified needed
project proposals in the SAP system. registered as proposals in the
SAP system.
2 Assign a unique auto-generated All proposals to adopt a Gap Enhancement
proposal number to every proposal sequential proposal
item in the SAP system. numbering system.
3 Assign a unique sequential auto- On change process, projects Gap Enhancement
generated project number to every approved at DG1 will be
proposal approved to become a assigned a new sequential
project at DG1. project number.

4 Provide information on both the When project number is Gap Enhancement


project number and the proposal assigned during change
number in each item to allow for easy process, proposal no is copied
traceability of the proposals that to a customer defined field for
resulted in a project. traceability.
5. Provide storage fields for various Customer defined fields to be Gap Enhancement
project stakeholders (e.g. Project created to store the required
Initiator, Project Engineer etc) to information.
ensure that this information is readily
available for reporting purposes.
6. Provide a unique MOC number (in line MOC Number field to be Gap Enhancement
with the NLNG MOC numbering created and logic
system) for each project to support implemented for auto
compliance with the NLNG MOC generation of MOC Numbers
process.

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7. Provide fields for storage of NLNG PMS Customer defined fields to be Gap Enhancement
CAPEX Project classification data such created to store the required
as Project CAPEX range, project risk, information.
delivery mode (multi or single
discipline), project complexity etc
8. Support selection of the appropriate The standard change No Gaps No Action
roadmap for a project in the SAP process functionality in SAP Identified needed
system on approval of a proposal by PPM will be used to cover this
the DRB at DG1. Each roadmap (i.e. requirement.
roadmap 1, roadmap 2, roadmap 3 or
roadmap 4) should default the
corresponding phases and decision
gates as defined in the NLNG Project
Management Manual (PMM).
9. Support provision of an audit trail to The change documents No Gaps No Action
all changes in data in the portfolio function will be activated to Identified needed
item cater for this requirement.
10. Provide ability to upload and store Standard document/URL links No Gaps No Action
documents and URL links in the SAP will use the standard Identified needed
system document storage abilities in
PPM
11. Provide the ability to check-in, check- Standard document No Gaps No Action
out and store versions of project management functionality in Identified needed
documentation in the SAP system. SAP PPM covers this
requirement
12 Keep an automatic snapshot or version Automatic snapshots to be Gap Enhancement
of the project during major created for each Item just
events/change to the item such as before DGs are completed
during gate approvals or switching
when roadmap.

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Provide a storage field to hold Customer defined fields to be Gap Enhancement


automatically updated information on created to store the required
the project (decision) status (i.e. information and logic to
forecast, firm, authorized, automatically populate Project
authorized/committed). status will be implemented.

4.5 Locations where this Business Process is performed

This process will be applicable in locations where PD CAPEX projects are currently implemented. Major
locations include:
Locations
Location Country Function Number of Users Point of Contact
Bonny Island Nigeria PP TBD Project Services Unit (PPS)
Port Harcourt Nigeria PP TBD Project Services Unit (PPS)
Abuja Nigeria PP TBD Project Services Unit (PPS)
London Nigeria PP TBD Project Services Unit (PPS)

4.6 Operational Decisions or Logic within the Process

A proposal should not have Appropriation (i.e. IID or FID) assigned to it. The proposal must be
approved by DRB at the DG1 review meeting and a roadmap should be selected for the project
before IID/FID approval workflows can be triggered for the project.

4.7 SOX and Legal Considerations and Company Specific Policies

This section is not applicable to this process

4.8 Reference to Key Process Changes and Process KPIs

4.8.1 Key Process Changes

Key process changes relating to this process include:

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All identified opportunities or project proposals will now be created and tracked in a central project
repository.

Proposals will have a proposal ID number which changes automatically to a Project ID number once
the proposal is approved and a roadmap is selected for it in SAP PPM.

Relevant stakeholders will have access to the central project database in SAP but possible activities
for each person will be controlled via authorizations.

Documents can be uploaded into SAP directly as attachments or via Livelink URLs thereby integrating
the information repository and the document repository for projects.

Project versions are stored during roadmap change and when decision gate DG1 is completed. This
supports easy access to historic project information.

All changes made to values on portfolio items are recorded on a change documents tab thus allowing
auditability of all changes made to an item.

4.8.2 Process KPIs

KPI(s) to be measured in this process include:

Number of proposals registered in SAP monthly/quarterly/annually per bucket and for the entire
portfolio.

Percentage of opportunities that become screened projects monthly/quarterly/annually per bucket


and for the entire portfolio.

Average duration spent in Identify phase for project proposals.

4.9 Integration Points

The following are points of integration with other SAP modules:

Reports via SAP Business Intelligence (BI)/Business Warehouse (BW) modules.

Interface with SAP Business Planning and Consolidation (BPC) for extraction and consolidation of
annual budget values.

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4.10 Potential Future Process Improvements

No potential future improvements identified for this process

4.11 Organization Structure Considerations

The organizational structure in SAP is an enterprise structure that reflects the way organization units are
grouped for legal, reporting or other specific business-related reasons or purposes. The SAP Portfolio and
Project Management and Project Systems module does not have its own organization structure but it uses
organization elements from other SAP Modules like SAP FICO (Finance and Controlling), SAP HCM (Human
Capital Management) and SAP MM (Materials Management).
PD CAPEX projects shall use following Organization elements:
Organizational Elements Value Description
Controlling Area NLNG Nigeria LNG Group
Company Code NLNG Nigeria LNG Limited
Plant P001 Production Plant
Profit Centre NLNG NLNG Ltd - Corporate
Business Area 0001 Business Area 0001
Functional Area 3001 CAPEX
Purchasing Organization CP01 Central Purchasing
Project Currency USD United States Dollar

4.12 Master Data Considerations

Please refer to Appendix A of this document for Master Data considerations relating to this process.

4.13 System Configuration Considerations

4.13.1 Portfolio Type

PD CAPEX projects will be managed as a portfolio of projects in the SAP system. There will be separate
portfolios to manage other projects like IMT projects. A portfolio type which influences parameters like
financial and capacity planning for the PD CAPEX portfolio will be created. The following Portfolio Type will
be used for PD CAPEX projects.

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Portfolio Type Portfolio Type Description


ZNLNGPD NLNG PD Portfolio type

4.13.2 Portfolio Item type

Portfolio item types indicate the different types of portfolio items within a portfolio. The item type is used to
determine the various decision gates that the project goes through. Each project roadmap defined in the
NLNG Project Management System (PMS) will be defined as an item type in SAP PPM and this will determine
the relevant decision gates the item will pass through. In addition to the four Item types for the ORP
roadmaps, two additional item types will be created. One item type will be used to capture proposals in the
identify phase at which time there is no definite information on the roadmap the item will adopt eventually
while the second item will be used to create a plant change item which will be used to hold the contingency
amount approved annually for the PD CAPEX Portfolio. The Item types to be configured for PD CAPEX
projects include the following:
Item Type Item Type Description Decision Point Decision Point Description
ZPD001 PD Capex Proposal ZPDDG1 DG1

ZPD002 PD Roadmap 1 ZPDDG1 DG1


ZPDDG4 DG4
ZPDDG5 DG5

ZPD003 PD Roadmap 2 ZPDDG1 DG1


ZPDDG3 DG3
ZPDDG4 DG4
ZPDDG5 DG5

ZPD004 PD Roadmap 3 ZPDDG1 DG1


ZPDDG2 DG2
ZPDDG3 DG3
ZPDDG4 DG4
ZPDDG5 DG5

ZPD005 PD Roadmap 4 ZPDDG1 DG1

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Item Type Item Type Description Decision Point Decision Point Description
ZPDDG2 DG2
ZPDDG3 DG3
ZPDDG4 DG4
ZPDDG5 DG5

ZPDPMB Plant Change ZPDDG1 DG1

4.13.3 Change Process

Every Item will be created as a proposal (Item type ZPD001) with only one decision point (DG1) in the SAP
system. At the end of the first decision point (DG1), if the proposal is approved, a decision is also taken on
which roadmap the project would adopt. The change process functionality in SAP PPM will be used to
switch item types from the proposal type to the appropriate item type based on the selected roadmap. The
table below shows the possible Item types that can be switched to. Once the switch is completed, the
decision points corresponding to the Item type (as listed in the table in section 4.13.2) are displayed.

Initial Item type Item types that can be switched to


ZPD001 - PD Capex Proposal ZPD002 - PD Roadmap 1 Project
ZPD003 - PD Roadmap 2 Project
ZPD004 - PD Roadmap 3 Project
ZPD005 - PD Roadmap 4 Project

4.13.4 Portfolio Item Numbering

When an opportunity or proposal is created in SAP PPM, it is created with PD CAPEX proposal item type. The
numbering format for proposals/projects to be used is a generic numbering/coding structure for various
project types in NLNG (i.e. IT projects and PD CAPEX projects).

The numbering format is PXXYYnnn


Legend
P - Proposal
XX Proposal type (i.e. IT for IMT Projects and PD for PD CAPEX projects)

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YY Year e.g. 13 (for 2013), 14 (for 2014) etc.


nnn Proposal Serial number e.g. 001-999

For example PPD14005 will be the fifth proposal created for PD CAPEX projects in the year 2014 while
PIT14010 will be the tenth proposal created for an IT proposal in the year 2014.

For PD CAPEX projects, after the proposal has been approved by DRB and a roadmap is selected in the
system (change process function in PPM), the numbering format changes. This ensures that a sequential
numbering logic is retained for all proposals/opportunities that are approved to become projects.

The numbering format for approved projects is CXXYYnnn


Legend
C CAPEX project
XX Project type (i.e. IT for IMT Projects and PD for PD CAPEX projects)
YY Year e.g. 13 (for 2013), 14 (for 2014) etc.
nnn Project Serial number e.g. 001-999

For example CPD14001 will be the first PD CAPEX proposal approved to be a project in the year 2014.

4.13.5 Portfolio Item Categories and Technology Type

Portfolio Item Categories are standard classification fields at PPM Item level and these fields are used for
information and extracting appropriate reports.

The following categories will be configured for NLNG.

The PD CAPEX category will be defaulted for PD CAPEX projects and will determine the Areas and Locations
visible to end users.
Ref No Category
1 PD CAPEX
2 IMT

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4.13.6 Portfolio Item Area, Location

Portfolio Item Area and Location fields are standard fields at PPM Item Level. These fields shall be used for
extracting various reports based on location/area as appropriate. These values are not limited to a specific
portfolio in the SAP system so values displayed in the list will not be specific to PD CAPEX projects.
The following tabulated field values shall be configured in SAP PPM/PS for Area and location.
Ref. No Location ID Area ID
1 Bonny Industrial Area (IA)
2 Bonny Residential Area (RA)
3 Bonny IA and RA
4 Bonny Plant - Area A
5 Bonny Plant - Area B
6 Bonny Plant - Area C
7 Bonny Plant - Area D
8 Bonny Plant - Area E
9 Bonny Plant - Multiple Areas
10 Bonny Community - Bonny/Finima
11 PHC Head Office (HO)
12 PHC ISB and OSB
13 PHC Heliconia Park
14 PHC GTS Communities
15 London London Office (LOF)
16 Lagos Lagos Transit Office (LAG)
17 Abuja Abuja Office (ABJ)
18 All Locations All Locations

4.13.7 Portfolio Item Status

Portfolio Item status is used to define the current status of an item. These statuses can be used to identify
the last major event that has occurred on that item which can be useful for reporting purposes. The statuses
and the corresponding next possible statuses to be configured for PD CAPEX projects are shown in the table
below:

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4.13.8 Item Decision Point Status

Item decision point status defines the status of an item decision point. It has been agreed to configure the
following Item decision point status for the Project Initiation phase.
Decision Point In Progress Ready for DG1 Approval Complete
In Progress X
Ready for DG1 Approval X X
Complete

4.13.9 Questionnaires and Scoring Models:

A Questionnaire will be setup in SAP PPM to reflect the questions in the NLNG RAM. The questionnaire will
consist of six question groups representing the risk categories in the RAM (i.e. People, Asset/Production,

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Environment, Reputation, Community Relation and Security). Each question group will have questions for
probability and severity and options based on the values for increasing probability and increasing severity.
Authorized users will populate answers to the RAM questionnaire in SAP and then the system automatically
computes the RAM score (i.e 5B, 2C etc) and the RAM (i.e. Negligible, Low, Medium and High) for the project.

NLNG RISK ASSESSMENT MATRIX

CONSEQUENCES INCREASING PROBABILITY (Likelihood)


A B C D E
Category
1 2 3 4 5

Has happened in
Has happened at
Never heard of in the LNG Industry or Has happened
Community Heard of in the Oil NLNG or once per
People Asset / Production Environment Reputation Security the Oil & Gas more than once per more than once
Relation & Gas Industry year in the LNG
Industry year in the Oil & per year in NLNG
Industry
Gas Industry

No injury or health
0 effect
No damage No effect No impact No impact No impact 0A 0B 0C 0D 0E
INCREASING SEVERITY

Incidental problem
Slight damage Slight effect
Slight injury or health Slight impact (Eg. with community
1 effect (FAC, MTC)
(10k$ & no disruption (within fence, no
public awareness) relations resolved
Slight 1A 1B 1C 1D 1E
to operation) exceedance)
with compensation

Minor effect
Minor injury or health Minor damage Limited impact
(temporary Re-instatement of no
2 effect (LTI 4 days or (10k$ - 100k$ & brief
containment. Slight
(Eg. local / public
go areas
Minor 2A 2B 2C 2D 2E
less, RWC) disruption) media)
exceedance)

Moderate effect Several days of


Major injury or health Moderate damage (recoverable Considerable impact blockade of local
3 effect (LTI, PPD >4 (0.1 - 1.0M$ & partial environmental loss / (Eg. region / state / facilities, rivers, water Moderate 3A 3B 3C 3D 3E
days) shutdown) repeated public media) pump station or gas
exceedance) supply station)

Major effect
Severe damage to
Permanent Total Major damage (severe damage Major Impact
water supply or gas
4 Disability (PTD) or up (1.0 - 10.0M$ & recoverable / (Eg. extensive
station reported in
Significant 4A 4B 4C 4D 4E
to 3 fatalities partial operation loss) extended adverse media)
Nigerian media
exceedance)

Massive effect
Extensive damage Massive impact Impossible to operate
(widespread chronic
5 More than 3 fatalities (>10M$ & substantial
effects / constant
(Eg. extensive without major military Extensive 5A 5B 5C 5D 5E
operation loss) adverse media) support
high exceedance)

The following scores are assigned to each RAM level for computation of the Project score.
RAM Score
Negligible 25
Low 50
Medium 75
High 100

A field is provided to hold the numerical value for the NPV of each Item. The NPV value ranges and
corresponding scores are shown in the table below:

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NPV Value Range NPV Value Range


Currency Score
(Lower Range) (Upper Range)
0 1 USD 0
2 100,000.00 USD 25
100,001.00 1,000,000.00 USD 50
1,000,001.00 10,000,000.00 USD 75
10,000,001.00 99,999,999.000 USD 100

The relative weightings between the RAM score and NPV ranges are shown in the table below
Parameter Weighting
RAM 60%
NPV 40%

The Project Score will be computed with the following formula:


Project Score = (RAM Score*0.6) + (NPV Score*0.4)

4.13.10 Portfolio Item Priority

Portfolio Item priority is a standard field at PPM Item level which defines the overall priority of a proposal or
project. A combination of the RAM score and NPV for the Item generates a project score which is used to
automatically update the priority based on predefined logic.

Configured priorities and corresponding project scores for PD CAPEX projects are listed below.

Ref. No Portfolio Item Priority Project Score (Upper Range) Project Score (Lower Range)
1 Very High 100 81
2 High 80 61
3 Medium 60 41
4 Low 40 21
5 Very Low 20 1

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4.13.11 Customer Defined Fields

Customer defined fields in PPM are additional fields to the standard PPM fields which are used to hold data
that is specific to NLNG and/or the NLNG Project Management System (PMS). These fields make additional
information available in the SAP system which can be reported on to give a more tailor-made portfolio
management solution to NLNG.

Additional fields identified as required for PD CAPEX projects include:

Ref. No PPM CDF Field Name Description


CDF_01 Originators Name The name of the individual originating the Portfolio Item. The field will
be manually populated.
CDF_02 Originating The Department of the individual originating the Portfolio Item. The
Department field will be automatically populated after selection of the appropriate
Ref Indicator.
CDF_03 Project Engineer The name of the Project Engineer for the Project, this will be manually
populated from a search help/list which is linked to the SAP HCM
Database.
CDF_04 Business Opportunity The name of the Business Opportunity Manager for the Project, this
Manager will be manually populated from a search help/list which is linked to
the SAP HCM Database.
CDF_05 Project Status This field is used to capture the status of the project as required for
decision making during the annual budget approval process. The
available values for selection will be:-
- Forecast
- Firm
- Authorized
- Authorized/Committed
This field will be automatically populated based on the predefined logic
computed from the current status of the project. The logic to be used is
as follows:
Forecast Item is still in Identify phase and is yet to gain approval at
DG1.
Firm Item has gained approval at DG1 and a roadmap has been

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Ref. No PPM CDF Field Name Description


selected for the Item via change process function.
Authorized Appropriation (i.e. IID or FID) has been approved for the
project and the Authorized Appropriation field has been automatically
populated via a workflow approval.
Authorized/Committed Commitment and/or actual costs have rolled
back into PPM from PS for the project.
CDF_06 MOC Number The Management of Change (MOC) Number is used for tracking
changes that are introduced by CAPEX projects within the wider
framework of NLNGs Management of Change procedure. The MOC
procedure requires each project to have an MOC Number which is
specified in a predefined format (e.g. 14/MOC/PDR/003P).
The MOC Number field will be automatically derived from the proposal
ID and Type of Change field when the item is created. There will
remain a one to one mapping between Proposal ID and MOC number
for each Portfolio Item.
CDF_07 MOC Type Possible options will be This is a manually selected field that indicates if
a change is a temporary or permanent change.
CDF_08 Proposal ID Once Change process transaction is triggered and the Portfolio Item ID
is created. The corresponding Proposal ID is automatically populated in
this field and greyed out. This ensures there is a permanent linkage
between the Item ID and the Proposal ID.
CDF_09 Financial Approval This field shows the status of financial approval once a financial
Status approval workflow is triggered. This field will be automatically
populated and greyed out.
CDF_10 Approved When a financial approval workflow (i.e. for IID Approval and for FID
Appropriation Approval) is triggered and approved, the approved appropriation is
automatically populated into this field. This field will be greyed out and
not editable.
CDF_11 Approved FID This field is only populated after FID is approved via the financial
approval workflow. It will be automatically populated and greyed out.
It keeps information on the Approved FID for reporting purposes.
CDF_12 RAM Questionnaire This field is basically used to hold the questionnaire that contains

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Ref. No PPM CDF Field Name Description


relevant questions required for generating the RAM score for a project.
The field will maintain the values 000 at all times.
CDF_13 RAM Score This field will capture the RAM score of a project (i.e. 5C, 2E) based on
the updates made to the RAM Questionnaire. This field will be greyed
out and not editable.
CDF_14 RAM This field captures the RAM (i.e. High, Medium, Low, and Negligible) of
a project based on the RAM score. This field will be greyed out and not
editable.
CDF_15 NPV This field will capture the Net Present Value (NPV) of a project. The
field is open for manual entry and PPM Administrators will be able to
input NPV values into this field.
CDF_16 Project Score This field captures the Final Project score based on the Questionnaires
for RAM and NPV and the Scoring Model selected at the Bucket level.
Based on this score the priority of the Item will be updated.
CDF_17 Project CAPEX Range This field contains a dropdown list of possible options of CAPEX ranges
for a project.
CDF_18 Risk This field contains a dropdown list of possible options for the risk of a
project. Options are Low, Medium and High.
CDF_19 Complexity This field contains a dropdown list of possible options for the perceived
complexity of a project. Options are Low, Medium and High.
CDF_20 Assurance Level This field contains a dropdown list of possible options of assurance
Scaling levels for a project. The options are Premium Assurance, Focused
Assurance or Self Assurance.
CDF_21 Delivery Mode This field contains a dropdown list of possible options for the delivery
mode of a project. Options are single discipline or multi discipline.

4.14 Workflow

No custom workflows are required for this process.

Standard PPM notifications will apply when there are changes to the Item status and Decision point statuses.

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4.15 Reports

Please refer to Appendix B for a full list of reports for this implementation.

4.16 Interfaces

No interfaces are required for this process


Interfaces
S/N Description Interface Applications Frequency/ Owner
Method Volumes
1 N/A N/A N/A N/A N/A

4.17 Data Conversion

Please refer to Appendix C of this document for details on data conversion objects for the entire solution.

Please note that historical data for Closed Out and Cancelled projects will not be migrated to SAP.

4.18 Enhancements

Please refer to Appendix D of this document for details on Enhancements to the standard solution required
to meet the stated business requirements for this solution.

4.19 Output (e.g. Forms)

The following form(s) can be automatically generated from SAP PPM in pdf format.
Output/Forms
ID Description Data Object Output Type Frequency Volumes Owner
(Form, EDI, etc)
1 Project Details Item Financial details, Form As required At least PP
(Fact sheet) dates, general Item one per
details, Decision point project
details etc.

4.20 SOA (Service Oriented Architecture)

Service Oriented Architecture (SOA) is not applicable to this process

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4.21 Third Party Solution

The third party tools or applications required in this process include:


Third Party Solution
ID Description Interface/Required, Development Owner
01 Livelink Livelink is NLNGs current Electronic Document Management System IMT
(EDMS). No development is required to interface this tool with SAP.
Documents that reside in Livelink can however be accessed from SAP
PPM by Checking-in document URLs from Livelink into SAP PPM.
02 DCAF tool The DCAF tool is used to generate the Project Controls and PP
Assurance Plan for each project phase. No interface with the SAP
system is required but information on the deliverables per phase
from the PCAP is required to perform certain step in the SAP system.
03 OAP tool The Opportunity Assurance Plan (OAP) tool is used to drive the First PP
Contact Meeting agenda as the attendees are required to populate a
series of input sheets used to construct the OAP. No interface with
the SAP system is required.

4.22 Authorizations

Please refer to Appendix E for the detailed authorization framework for the entire PPM/PS solution for PD
CAPEX projects.

4.23 Change Impact Summary

Change impact summary for this process is summarized in the table below:

Organizational Change Impact

Change Old Way New Way Positive impacts to Negative impacts


Impact Company or to to Company or
Summary individual roles to individual
roles

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Organizational Change Impact

Change Old Way New Way Positive impacts to Negative impacts


Impact Company or to to Company or
Summary individual roles to individual
roles
Proposals/potential All identified Full visibility into the Nil
projects are captured proposals once funnel of potential
in the Microsoft approved by the projects even before
Access CAPEX Originators Line they are ready for
Database after Manager are captured review at DG1.
relevant deliverables in SAP PPM. Details of
are ready, just before the proposal are
the proposal proceeds continuously refined
to the DRB approval in the system as
for DG1 approval. deliverables are
completed.
Project Development When proposals are Sequential Nil
Request (PDR) registered in the numbering of
numbers are assigned system, they are approved projects
manually to proposals automatically assigned improves project
when they are being sequential proposal numbering logic.
registered in the numbers. A separate Automatic
CAPEX database. sequential project assignment of
Where proposals are number which stays proposal IDs and
not approved to with the project project IDs reduce
progress to projects at forever is assigned manual effort or
DG1, gaps are automatically to the tendency for human
observed in the project during error.
sequential numbering roadmap selection if
of projects. the proposal is
approved by the DRB
at DG1.

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Organizational Change Impact

Change Old Way New Way Positive impacts to Negative impacts


Impact Company or to to Company or
Summary individual roles to individual
roles
Project information is Based on roles and Faster access to Nil
stored in the authorizations, information
Microsoft Access different roles (i.e. improves efficiency
CAPEX database and Project Development and speed of
only the Project Engineer, Project decision making.
Services Administrator Engineer etc) will have
has access to update access either to view
and extract only or edit certain
information from the portions of the
database. projects.
Project documents are The use of Omnicom Improved access to Movement of
stored in Livelink and for document storage documents improves documents or
Omnicom while will be discontinued. efficiency in changing of
project information is Documents will be document Livelink structure
stored in the CAPEX uploaded in SAP either management and may lead to
database. There is no directly as reduces time dysfunctional
direct link between attachments or as associated with links in the SAP
the information Livelink URLs. searching for system.
repository and the documents.
document repository.
The CAPEX database Snapshot versions of Availability of Nil
does not keep history portfolio items enable historic information
of information at storing of historic enables projects gain
different phases of the information (such as insight from project
project. When new cost estimates, key history, perform
data is available, personnel assigned to project trend
existing data is the project etc). The analysis and support
overwritten without system is automated the lessons
any means of keeping to keep snapshots learned process.

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Organizational Change Impact

Change Old Way New Way Positive impacts to Negative impacts


Impact Company or to to Company or
Summary individual roles to individual
roles
the old data for versions each time a
reference purposes. Decision Gate is
approved or when a
financial workflow is
approved.
The CAPEX database All changes made to Increased user trust Nil
does not indicate values on portfolio in the information
which user has made items are recorded on from the SAP
changes to certain a change documents database. Full
fields or information. tab thus allowing traceability and
This makes it auditability of all auditability of all
impossible to identify changes made to an project information.
who has made item.
changes to critical
information in the
database.

4.24 Training Requirements

Details of the training requirements for the SAP PPM/PS solution for PD CAPEX projects are provided in
appendix F of this document.

4.25 Testing Requirements

The following test cases will need to be tested during the various testing cycles of the project:
Testing
ID Describe Test Required
01 Create Portfolio
02 Create Bucket

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Testing
03 Create Proposal Item
04 Update and classify proposal Items
05 Assign Authorizations
06 Update planned decision point dates
07. Populate Ranking Criteria (RAM Questionnaires and NPV values)
08. Update proposal financial view Cost Estimate
09. Select Project Roadmap - Change Process
10. Display automatically created item version/snapshot
11. Upload documents in PPM
12. Enter Notes in PPM
13. Change Item status
14. Create PS Project from PPM
15. Change Decision Point Status
16. Display Decision Point status notification

4.26 Control Requirements

The controls needed for this process include the following:


Control Requirements
ID Describe Control Requirements
01 A PS project cannot be created for a proposal. Proposals must be approved to become projects
before a PS project is created.
02 A version should be created automatically when a proposal is being converted to a project to keep
history of details of the proposal.
03 Changes to key project details should be auditable and the identity of the users who made those
changes should be available.

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5 Initial Planning and IID Approval Process

This section consists of two processes that are typically in sequence after proposals are approved by DRB to
become projects at DG1. The Initial Planning process represents a series of steps that need to occur in SAP or
that have impact on steps that need to happen in SAP as projects are matured through the Assess and Select
phases of the project roadmap. By implication, projects being implemented on roadmap 1 will not execute
this process as they dont go through the Assess and Select phases. The Initial planning process includes a
link to the Project Execution and Monitoring process to enable procurement of long lead materials, placing
call off contracts of Design Engineering services or other services, allowing for time writing etc

The IID (Initial Investment Decision) Approval process on the other hand is a process that is executed
whenever Initial Appropriation is required. Initial investment or IID is usually required for procurement of
long lead materials, to carry out feasibility studies, basic engineering/design or to provide for internal man-
hour costs that are captured via time writing. The IID Approval process will need to be executed at the
appropriate decision gate i.e. DG1, DG2 and DG3 to ensure that funds are available in SAP for the next phase
of the project. The IID Approval process can be linked from the Initial Planning process as well as the
Project/Portfolio Initiation process.

5.1 Business Process Requirements

Business Process Requirements for this process include:


Business Process Requirements - Initial Planning process
Support the availability of the latest project cost estimate at each project phase in the SAP system and
enable aggregation of this value to bucket and portfolio levels to provide a clear view of the latest site
estimate per project, bucket, portfolio etc
Provide a system that supports capacity/resource planning at project level and aggregating this
information to the bucket and portfolio levels to provide a clear view of the portfolio resource/capacity
status.
Support classification of projects in line with the strategic objectives they support to enable tracking of
contribution of capital projects to various strategic objectives.
Ensure effective governance and controls mechanism to manage decision gate approvals.

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Business Process Requirements - IID Approval Process


Support a structured mechanism for requesting Initial Appropriation (or IID) at any pre DG4 (or pre FID)
decision gate.
Ensure all IID decision options such as approved, rework and not approved are adequately
catered for in the IID approval process.
Support easy tracking of annual budget consumption (in comparison with actual expenditure) to
provide adequate soft controls for approved annual budget.

5.2 Business Process Description

5.2.1 Initial Planning Process

In the Assess and Select phases of the project, emphasis is placed on demonstrating technical and economic
feasibility of the project, developing feasible options and selecting the optimal solution amongst other key
activities. At the start of the process, the Project Assurance Engineer updates the Item with the revised RAM
score (if required) and this may be the output of the opportunity framing workshop, lessons learned
workshops or risk management activities. A resource plan for the next phase of the project (or for the rest of
the project) may also keyed into the capacity planning screen of the SAP system by the Project Development
Engineer. Revised cost estimates (type 1 for Assess phase and type 2 for Select phase) are recorded in the
Cost Estimate financial view in PPM and planned decision dates for the next phases are updated from the
project schedule. Relevant project deliverables as per the approved PCAP are uploaded as documents
attachments or live link URLs in PPM. In parallel to all these steps is the Project execution and monitoring
process which enables Project Engineers perform detailed cost planning, procure goods and services and
performing time writing etc. (details of the steps that occur during the Project Execution and Monitoring
process are detailed out in chapter 9).

Once all deliverables are checked and confirmed by the Project Assurance Engineer, the decision point status
is set to Ready for DG2/DG3 gate review. The project is then scheduled for a DRB Governance review
meeting where a decision is made to approve, not approve or put the project On Hold. Where IID is
required, the IID Approval process is followed to ensure that Initial Appropriation approved by the DRB is
embedded within the project in PPM and can be transferred to PS where the funds can be spent. The Project
Assurance Engineer then uploads all relevant documents in PPM and then changes the decision point status
to completed.

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5.2.2 IID Approval Process

Where IID is required, the Project Development Engineer ensures that the required IID amount is maintained
in the Requested Appropriation financial view. The Project Development Engineer then notifies the Project
Assurance Engineer who sets the Item status to For IID Approval to trigger a workflow to the approval
party responsible for ensuring that appropriation requests in the SAP system are in line with DRB approvals.
The Workflow Approver confirms that the requested amount is in line with the approval given by the DRB
and actions the workflow accordingly. The workflow can be approved, set to rework or not approved. If the
workflow is approved, the Authorized Appropriation field is automatically populated with the amount
approved in the workflow. This budget is then transferred to PS and distributed from the level 1 WBS to the
level 2 WBS (phase and contingency) where it can be spent.

5.2.3 Process Characteristics Table

The Process characteristics table for the Initial Planning process is shown below:
Process Characteristics - Initial Planning Process
Process Trigger Completion of decision gate DG1 (Identify phase) or DG2 (Assess phase).
Opportunity Framing Workshop
Risk Management
Project Resource Plan
Process Input Project Controls and Assurance Plan
Assess/Select phase forms
Type 1/Type 2 cost estimate
Level 1/Level 2 project schedule
At the end of this process, the output can be either of the following:
Project completion of decision gate DG2 or DG3.
Process Output
A project placed on hold with status set to On Hold
A project that is cancelled with status set to Cancelled.
Process Owner Project Delivery Manager (PP)
Process Volumes Each project proposal undergoes this process independently.
Process Frequencies Dependent on the number of times projects go through Assess and Select phase.

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Process Characteristics IID Approval Process


Process Trigger Need for Initial Appropriation (IID) Approval
Process Input Requested Appropriation Amount
Process Output Approved IID transferred to SAP PS or unapproved IID request.
Process Owner Project Delivery Manager (PP)
Process Volumes Each project proposal undergoes this process independently.
Process Frequencies Dependent on the number of times IID is requested.

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5.3 Business Process Flow Diagrams


5.3.1 Initial Planning Process Assess and Select phase
Initial Planning Process (Assess/Select Phase)

10 Start Assess/
Select Phase

Project 50 Forecast
40
Resource Plan resource capacity
Project Development Engineer

70 Update Cost
Type 1 / Type 2 Estimate Financial
60
Cost Estimate view with revised
Project Estimate
120 Project
Execution &
Monitoring
90 Update Planned
Level 1 / Level 2 80 Decision Date from
project schedule project schedule

Relevant Project 110 Upload relevant


deliverables per 100 Documents/Livelink
approved PCAP URLs in PPM
210 Revise relevant
deliverables in line
with DRB comments

Rework

20 Update Item
with RAM Score
(Project Assurance Engineer)

260 Update Decision


130 Set Decision
PPM Administrator

190 Point status to


Opportunity 200 Set Item Status
Point Status to Cancelled or Cancelled Completed
30 Framing/Risk to Cancelled
Ready for DG2/ Rework
Management
DG3 gate review

Completed
Minutes of
meeting etc 250 Upload MoM Completed
160 Set Item Status 180 Upload MoM No and all relevant 240 Minutes of
to On Hold 170 and all relevant documents in PPM meeting etc
documents in PPM

On Hold

150
140 Review 220 Was IID 230 IID
DRB

Project Approved/
Project at DG2/ Not Approved requested for the Yes Approval
Not Approved/On
DG3 review meeting next phase? process
Hold

Approved

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5.3.2 IID Approval Process

IID Approval Process


PPM Administrator
(Project Assurance
Engineer)

30 Set Item Status 70 Check that Item 110 Confirm that


90 Re-Submit the
10 Start to For IID status is Item status is
Workflow 140 End
Approval automatically set to automatically set to
Screened IID Approved
Project Development

20 Ensure required IID


80 Revise relevant
amount is maintained in
Engineer

deliverables in line
the Requested Not Approved 100 Confirm that iID
with DRB comments
Appropriation financial value is automatically
view populated in the
Authorized
Appropriation field

Dispatched
workflow
(Project Assurance Engineer)
Appropriation Approver

Rework
60
IID request
Approved/Rework /Not Approved
Approved

50 Confirm that
workflow amount is
in line with DRB
approval
Project Development

120 Transfer 130 Distribute budget


appropriation / from level 1 WBS to
Budget from PPM to relevant phase and
SAP PS contingency
Engineer

IID Approval
DRB

Decisions by 40
DRB

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5.4 Process Step Detailed Requirements and Solution

5.4.1 Initial Planning Process

The processes are explained in the table below.


Process Steps
ID Type Name Description
10 Start event Start Assess/Select Once the previous phase is complete, the next phase
Phase (Assess or Select) based on the ORP Roadmap is started.
20 SAP Update Item with RAM The inputs for this step are
Score - Opportunity Framing
- Risk Management activities

The RAM score is computed by using the NLNG RAM


matrix to:
Identify the severity of the consequences of risks
Identify the probability of occurrence of these
consequences

The NLNG RAM matrix has been replicated in the PPM


system in the form of a questionnaire. The Project
Assurance Engineer will update the RAM questionnaire in
SAP PPM and the corresponding RAM score and RAM
level are displayed.

The output of this step is the item updated with the


appropriate RAM score.
30 Manual Opportunity The opportunity framing workshop and other risk
Framing/Risk management activities form essential input into revising
Management the Risk Assessment Matrix (RAM) for the opportunity.
40 Manual Project Resource Plan The Project Development Engineer with support from
relevant disciplines makes an estimate of the resource
requirements required to deliver the next phase of the

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Process Steps
ID Type Name Description
project and a high level estimate of the requirements for
the entire project.
50 SAP Forecast resource The input for this step is
capacity (optional) - High level Project Resource Plan
The Project Development Engineer will update the
Capacity Planning view of the Item with the high level
plan of resource requirement for the Item. The capacity
planning is done for different capacity categories/groups.
60 Manual Type 1 / Type 2 Cost At the end of each project phase prior to gaining FID
Estimate approval at DG4, the cost estimate for delivering the
entire project is revised and fine-tuned based on the level
of detail available at the time. A Type 1 estimate is
required at the end of Assess phase while a Type 2
estimate is required at the end of Select phase.
70 SAP Update Cost Estimate The input for this step is
Financial view with - Type 1 / Type 2 Cost Estimate
revised Project Estimate The Project Development Engineer will update the Cost
Estimate financial view with the revised estimate values
for each year the item is planned to run for. This can also
be done in the Financial Planning Dashboard where the
cost estimates of a selected number of items can be
edited simultaneously. The Cost Estimate which is phased
yearly is used during the Annual Budget preparation cycle
to propose the Annual Budget figures for approval.
The output of this step is the Item updated with the
revised Project estimate in Cost Estimate financial view.
80 Manual Level 1 / Level 2 project Project schedules are prepared at the end of each phase
schedule (just like the cost estimate) to give an indication of the
anticipated end date for the project at that time. A level
1 schedule is required at the end of Assess phase while a
level 2 schedule is required at the end of Select phase.

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Process Steps
ID Type Name Description
90 SAP Update Planned The input for this step is
Decision Date from - Level 1 / Level 2 project schedule
project schedule The Project Development Engineer will update the
planned decision date on the Decision Point based on
dates obtained from the high level project schedule.
The output of this step is the item with the decision
points updated with the updated Planned Decision Dates.
100 Manual Relevant Project The Project Controls and Assurance Plan (PCAP) is
deliverables per generated using the DCAF tool and it contains all relevant
approved PCAP deliverables the project is expected to produce in that
current phase.
110 SAP Upload relevant The inputs for this step are
Documents/ Livelink - Relevant project deliverables as defined in the
URLs in PPM approved PCAP for the item
When all deliverables for the phase are completed, the
Project Development Engineer will upload the relevant
documents and the Livelink URLs under the Documents
And Notes tab of the Portfolio Item.
120 SAP Project Execution & Refer to chapter 9 for full details on the Project Execution
Monitoring and Monitoring process.

130 SAP Set Decision Point The inputs for this step is
Status to Ready for - Item updated with RAM score, capacity plan, cost
DG2/DG3 gate review estimate, decision gate planned decision dates,
deliverable documents and Livelink URLs and
ready for submission for DG2/DG3 approval

This Project Assurance Engineer reviews the relevant


deliverables and if ok, he/she sets the Decision Point
(DG2/DG3) status to Ready for DG2/DG3 gate review
and saves the decision point. This indicates that the Item
is now ready for DG2/DG3 review and approval.

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Process Steps
ID Type Name Description
140 Manual Review Project at The DRB deliberates on the proposal at a DRB meeting
DG2/DG3 review and either takes a decision that the proposal should
meeting progress to the next phase or be put On-Hold or
Cancelled.
150 Manual Project Approved / The DRB may approve, cancel or place a proposed project
Cancelled / On Hold? On Hold. This step reflects the various decisions that
may be reached at the DRB meeting.
160 SAP Set Item Status to On The Project Assurance Engineer sets the Item status to
Hold On Hold and saves the item. This indicates that the
Item is kept On Hold by DRB at the DG2/DG3 review
meeting.
170 Manual Completed Minutes of The Project Assurance Engineer will prepare the Minutes
meeting etc of Meeting for upload into SAP PPM.
180 SAP Upload MoM and all The Project Assurance Engineer will upload the MoM and
relevant documents in other relevant documents under the Document and
PPM Notes tab of the Item.
190 N/A Cancelled or Rework Decision of whether the Item should be cancelled or
reworked. The decision is taken by the DRB in the
DG2/DG3 review meeting.
200 SAP Set Item Status to The Project Assurance Engineer sets the Item status to
Cancelled cancelled and saves the item. This indicates that the
Item was cancelled by DRB at the DG2/DG3 review
meeting and will not be reconsidered any time in future.
210 Manual/SAP Revise relevant The Project Development Engineer will revise the
deliverables in line with relevant deliverables in line with the DRB Comments.
DRB comments This can be a manual or SAP step depending on the
comments from the DRB.
220 Manual Was IID requested for Initial Investment is often required where funding is
the next phase? needed for Front End development activities, Long lead
materials etc. If a request for IID was made then the
output of this box will be a Yes, if not the output will be

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Process Steps
ID Type Name Description
a No.

230 SAP IID Approval process This sub process is executed where IID is required for the
next phase. Details of the IID Approval process can be
found in the Initial Planning / IID Approval process
(chapter 5 of this document).
240 Manual Completed Minutes of The Project Assurance Engineer will prepare the Minutes
meeting etc of Meeting for upload into SAP PPM.
250 SAP Upload MoM and all The input to this step is the MoM and other documents /
relevant documents in livelink URLs to be uploaded in SAP PPM.
PPM The Project Assurance Engineer will upload the Minutes
of Meeting and all other relevant documents to the Item
under the Documents and Notes tab.
260 SAP Update Decision Point Once the Assess/Select phases are completed, the
status to Completed Project Assurance Engineer will change the status of the
Decision Point DG2/DG3 to completed and save.
The output is the item updated with the decision point
DG2/DG3 status to indicate that the Identify phase is
complete. The decision point is greyed out and further
editing cannot take place on it.

5.4.2 IID Approval process

The processes are explained in the table below.


Process Steps
ID Type Name Description
10 Start Start IID Approval The start of the IID Approval process is triggered if the
event Process project needs IID for the next phase of the project.

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Process Steps
ID Type Name Description
20 SAP Ensure required IID The Project Development Engineer will ensure that the
amount is required IID amount has been maintained in the Requested
maintained in the Appropriation Financial view of Item Financial Planning.
Requested
Appropriation
financial view
30 SAP Set Item Status to The Project Assurance Engineer sets the Item status to For
For IID Approval IID Approval and saves the Item. This step indicates that
the project is now ready to go through the IID approval
process based on the amount maintained in the Requested
Appropriation financial view.
40 Manual IID Approval Decisions made by the DRB concerning the request for IID
Decisions by DRB Approval made by the Project Engineer forms the basis for
Workflow Approver to either approve or reject the Financial
Approval workflow in PPM.
50 SAP Confirm that The input for this step is
workflow amount is - IID Approval decision for the project by DRB at the
in line with DRB review meeting
approval The Workflow Approver checks in the Work Item that the IID
amount mentioned in the workflow is in line with the DRB
approval.
60 SAP Approved/Rework The input to this step is
/Not Approved - Decision by the DRB (Approve, Not Approve or
Rework IID Request)
The Workflow Approver (Project Assurance Engineer) will
either Approve or Not Approve the workflow based on the
decision from the DRB during the review meeting. The
rework route indicates that some deliverables need to be
revised before the workflow is resubmitted for
consideration.

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Process Steps
ID Type Name Description
70 SAP Check that Item The Project Assurance Engineer will check that the Item
status is Status is reverted back to the Screened status since the IID
automatically set to request was rejected.
Screened
80 Manual/ Revise relevant The input for this step is
SAP deliverables in line - Item was sent for Rework based on the decision by
with DRB comments DRB
The Project Development Engineer will revise the relevant
deliverables in line with the DRB Comments. This can be a
manual or SAP step based on the comments from the DRB.
The Project Engineer after completing the updates based on
DRB Comments will re-submit the Workflow for Approval.
90 SAP Re-Submit the The input for this step is
Workflow - Item ready for IID approval with updated changes
based on DRB comments
The Project Assurance Engineer will Re-Submit the
Workflow for the IID approval since all the updates from the
DRB are now complete.
100 SAP Confirm that IID The Project Engineer will check that the IID value approved
value is during the DG2/DG3 meeting is populated in the Authorized
automatically Appropriation field under the Financial Information tab on
populated in the the Item.
Authorized
Appropriation field
110 SAP Confirm that Item The Project Assurance Engineer will check that the Item
status is status is automatically set to FID Approved as the workflow
automatically set to is now approved.
IID Approved
120 SAP Transfer The Project Engineer will transfer the approved IID from SAP
appropriation / PPM to SAP PS using the functionality Transfer to SAP ERP
Budget from PPM on the financial planning of Item.

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Process Steps
ID Type Name Description
to SAP PS The output of this step is the SAP PS project being updated
with overall budget in transaction CJ30.

130 SAP Distribute budget Inputs to this process are the target WBS element and the
from level 1 WBS to amounts that must be distributed to each.
relevant phase and The Project Development Engineer distributes approved
contingency budget from the level 1 WBS element to the relevant phase
and contingency WBS elements.
The output of this step is budget being available at phase
WBS level
140 End Event End This indicates the completion of the IID Approval Process.

5.4.3 Process Requirement Table

The table below shows a mapping of the proposed solution to the business requirements and indicates any
GAPs that may require developments.

Process Requirement Table


ID Requirement Solution Gap GAP Action
1 Support the availability of the latest Standard financial views No Gaps No Action
project cost estimate at each project will be configured to Identified needed
phase in the SAP system and enable include the cost estimate
aggregation of this value to bucket view. Standard report will
and portfolio levels to provide a clear be scheduled to roll up all
view of the latest site estimate per values from Item to
project, bucket portfolio etc bucket.
2 Provide a system that supports Standard capacity No Gaps No Action
capacity/resource planning at project planning function will be Identified needed
level and aggregating this information used to meet this
to the bucket and portfolio levels to requirement. Standard
provide a clear view of the portfolio report will be scheduled

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resource/capacity status. to roll up all values from


Item to bucket.
3 Support classification of projects in Classification Hierarchies No Gaps No Action
line with the strategic objectives they will be setup in line with Identified needed
support to enable tracking of NLNG strategic objectives
contribution of capital projects to to meet this requirement.
various strategic objectives
4 Ensure effective governance and Standard Decision gate No Gaps No Action
controls mechanism to manage controls with appropriate Identified needed
decision gate approvals authorizations will be
setup to meet this
requirement.
5 Support a structured mechanism for Workflow development Gap Workflow
requesting Initial Appropriation (or will be used for IID development
IID) at any pre DG4 (or pre FID)
Approval process
decision gate.
6 Ensure all IID decision scenarios such The various decision Gap Workflow
as approved, approved with scenarios will be development
comments and not approved are
accommodated within
adequately catered for in the
workflow design. the workflow
development
7 Support easy tracking of annual An enhancement is Gap Enhancement
budget consumption (in comparison required to meet this
with actual expenditure) to provide
requirement
adequate soft controls for annual
budget.

5.5 Locations where this Business Process is performed

This process will be applicable in locations where PD CAPEX projects are currently implemented. Major
locations include:
Locations
Location Country Function Number of Users Point of Contact
Bonny Island Nigeria PP TBD Project Services Unit (PPS)
Port Harcourt Nigeria PP TBD Project Services Unit (PPS)
Abuja Nigeria PP TBD Project Services Unit (PPS)

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Locations
Location Country Function Number of Users Point of Contact
London Nigeria PP TBD Project Services Unit (PPS)

5.6 Operational Decisions or Logic within the Process

Overall budget (i.e. approved appropriation like IID or FID) cannot be transferred to SAP PS for
expenditure until annual budget is approved and assigned (either originally approved annual budget
or via budget virement) to the project in PPM.

Workflow approvers should only approve financial approval workflows after a DRB meeting where
such approvals have been granted. Signed hard copy approval documents shall be uploaded in SAP
PPM as evidence of DRBs approval prior to workflow approval in the system.

5.7 SOX and Legal Considerations and Company Specific Policies

This section is not applicable to this process

5.8 Reference to Key Process Changes and Process KPIs

5.8.1 Key process changes

Key process changes relating to this process include:

Going forward, cost estimates will be maintained with an annual forecast breakdown i.e. the
estimate will be split into yearly budget forecast over the planned duration of the project.

Streamlined process of gaining IID approvals via a financial approval workflow reduces dependence
paper based approvals and improves auditability of financial approvals.

Classification Hierarchies enable classification of projects in line with strategic company objectives to
track how various projects in the portfolio contribute to strategic objectives.

5.8.2 Process KPIs

KPI(s) to be measured in this process include:

Percentage of projects that get IID approval first time (without rejection or rework)

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Average duration spent by projects in the Assess/Select phases

Average time lag between IID approval by DRB in a governance meeting and when workflow is
approved by the responsible workflow approver.

Budget Performance

Schedule performance

5.9 Integration Points

The following are points of integration with other SAP modules:

Reports via SAP Business Intelligence (BI)/Business Warehouse (BW) modules.

Interface with SAP Business Planning and Consolidation (BPC) for extraction and consolidation of
annual budget values.

Management of user roles and segregation of duties (SOD) using SAP GRC Access control.

5.10 Potential Future Process Improvements

Automation of Budget transfer to SAP PS on approval of the IID/FID workflow may be considered in
the future as organizational maturity grows in the use of SAP PPM/PS.

5.11 Organization Structure Considerations

The organizational structure in SAP is an enterprise structure that reflects the way organization units are
grouped for legal, reporting or other specific business-related reasons or purposes. The SAP Portfolio and
Project Management and Project Systems module does not have its own organization structure but it uses
organization elements from other SAP Modules like SAP FICO (Finance and Controlling), SAP HCM (Human
Capital Management) and SAP MM (Materials Management). PD CAPEX projects shall use following
Organization elements:
Organizational Elements Value Description
Controlling Area NLNG Nigeria LNG Group
Company Code NLNG Nigeria LNG Limited
Plant P001 Production Plant

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Organizational Elements Value Description


Profit Centre NLNG NLNG Ltd - Corporate
Business Area 0001 Business Area 0001
Functional Area 3001 CAPEX
Purchasing Organization CP01 Central Purchasing
Project Currency USD United States Dollar

5.12 Master Data Considerations

Please refer to Appendix A of this document for Master Data considerations relating to this process.

5.13 System Configuration Considerations

5.13.1 Financial Views / Financial Category / Financial Category Group

Financial views/Financial category/Financial Category groups for PD CAPEX projects are based on Cost
element groupings. Financial Category group in PPM will also be in alignment with Project System Value
Categories which are assigned to respective cost element groups as defined by the FICO team.
Financial values for the views can be:
Entered Manually
Rolled up from Items
Populated based on Integration from Enterprise Core Component (ECC)
Populated based on Integration from Business Planning and Consolidation (BPC)

Financial Views, Financial Categories and Financial Category Groups for Buckets, Items and Initiatives are
tabulated as below:

Serial Financial View Financial Financial Initiative Item Level Bucket


No. Description Category Category Group level level
1 Target Annual Target Annual Target Annual None None Manual
Budget Budget Budget
2 Approved Annual Approved Approved Rollup BPC Rollup
Budget Annual Budget Annual Budget
3 Cost Estimate Cost Estimate Cost Estimate Roll up Manual Rollup

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Serial Financial View Financial Financial Initiative Item Level Bucket


No. Description Category Category Group level level
4 Requested Requested Requested Rollup Manual Rollup
Appropriation Appropriation Appropriation
5 Requested Requested Requested Rollup Manual Rollup
Additional Additional Additional
Appropriation Appropriation Appropriation
6 Actual Costs Actual Costs Materials & Rollup ECC Rollup
Equipment
Permits and Rollup ECC Rollup
Licenses
Services Rollup ECC Rollup
Indirect Costs Rollup ECC Rollup
Manpower Rollup ECC Rollup
7 Commitment Commitment Materials & Rollup ECC Rollup
Costs Costs Equipment
Permits and Rollup ECC Rollup
Licenses
Services Rollup ECC Rollup
Indirect Costs Rollup ECC Rollup
Materials & Rollup ECC Rollup
Equipment

5.13.2 Capacity Views / Capacity Category / Capacity Category Group

Capacity Views, Capacity Categories and Capacity Category Groups for Buckets, Items and Initiatives are
tabulated as shown below:

Serial Capacity View Capacity category Capacity Category Initiative Item Bucket
No. Description Group level Level level
1 Planned Project Engineering Project Engineer Rollup Manual Rollup
Demands Project Engineering Front End Development Rollup Manual Rollup
Engineer
Project Assurance Project Assurance Rollup Manual Rollup

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Serial Capacity View Capacity category Capacity Category Initiative Item Bucket
No. Description Group level Level level
Engineer
Project Assurance Project Schedule Rollup Manual Rollup
Control Engineer
Project Assurance QA / QC Engineer Rollup Manual Rollup
Project Assurance HSE Engineer Rollup Manual Rollup
Project Support Cost Engineer Rollup Manual Rollup
Project Support Cost Estimator Rollup Manual Rollup
Project Support Risk Management Rollup Manual Rollup
Engineer
Project Support Buyer Rollup Manual Rollup
Project Support Project Planner Rollup Manual Rollup
Project Support Project Services Rollup Manual Rollup
Engineer
Design Management Design Coordinator Rollup Manual Rollup
Design Management Design Coordinator Rollup Manual Rollup
Construction Construction Engineer Rollup Manual Rollup
Management
Construction Construction Supervisor Rollup Manual Rollup
Management
Discipline Engineer Instrumentation Rollup Manual Rollup
Engineer
Discipline Engineer Electrical Engineer Rollup Manual Rollup
Discipline Engineer Rotating Equipment Rollup Manual Rollup
Engineer
Discipline Engineer Inspection Engineer Rollup Manual Rollup
Discipline Engineer Civil Engineer Rollup Manual Rollup
2 Forecast Project Engineering Project Engineer Rollup ECC Rollup
demands Project Engineering Front End Development Rollup ECC Rollup
Engineer
Project Assurance Project Assurance Rollup ECC Rollup
Engineer

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Serial Capacity View Capacity category Capacity Category Initiative Item Bucket
No. Description Group level Level level
Project Assurance Project Schedule Rollup ECC Rollup
Control Engineer
Project Assurance QA / QC Engineer Rollup ECC Rollup
Project Assurance HSE Engineer Rollup ECC Rollup
Project Support Cost Engineer Rollup ECC Rollup
Project Support Cost Estimator Rollup ECC Rollup
Project Support Risk Management Rollup ECC Rollup
Engineer
Project Support Buyer Rollup ECC Rollup
Project Support Project Planner Rollup ECC Rollup
Project Support Project Services Rollup ECC Rollup
Engineer
Design Management Design Coordinator Rollup ECC Rollup
Design Management Design Coordinator Rollup ECC Rollup
Construction Construction Engineer Rollup ECC Rollup
Management
Construction Construction Supervisor Rollup ECC Rollup
Management
Discipline Engineer Instrumentation Rollup ECC Rollup
Engineer
Discipline Engineer Electrical Engineer Rollup ECC Rollup
Discipline Engineer Rotating Equipment Rollup ECC Rollup
Engineer
Discipline Engineer Inspection Engineer Rollup ECC Rollup

Discipline Engineer Civil Engineer Rollup ECC Rollup


3 Actual Project Engineering Project Engineer Rollup ECC Rollup
demands Project Engineering Front End Development Rollup ECC Rollup
Engineer
Project Assurance Project Assurance Rollup ECC Rollup
Engineer

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Serial Capacity View Capacity category Capacity Category Initiative Item Bucket
No. Description Group level Level level
Project Assurance Project Schedule Rollup ECC Rollup
Control Engineer
Project Assurance QA / QC Engineer Rollup ECC Rollup
Project Assurance HSE Engineer Rollup ECC Rollup
Project Support Cost Engineer Rollup ECC Rollup
Project Support Cost Estimator Rollup ECC Rollup
Project Support Risk Management Rollup ECC Rollup
Engineer
Project Support Buyer Rollup ECC Rollup
Project Support Project Planner Rollup ECC Rollup
Project Support Project Services Rollup ECC Rollup
Engineer
Design Management Design Coordinator Rollup ECC Rollup
Design Management Design Coordinator Rollup ECC Rollup
Construction Construction Engineer Rollup ECC Rollup
Management
Construction Construction Supervisor Rollup ECC Rollup
Management
Discipline Engineer Instrumentation Rollup ECC Rollup
Engineer
Discipline Engineer Electrical Engineer Rollup ECC Rollup
Discipline Engineer Rotating Equipment Rollup ECC Rollup
Engineer
Discipline Engineer Inspection Engineer Rollup ECC Rollup
Discipline Engineer Civil Engineer Rollup ECC Rollup

5.14 Workflow

The following custom workflow is required for the IID Approval process:
Workflow
ID Description Data Object Engaged Parties Owner

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Z_PD_ IID_APPRVL IID Financial Approval Workflow Item Status Project Engineer, PP
for PD CAPEX projects Project Assurance
Engineer,
Workflow Approver

Standard PPM notifications will apply when there are changes to the Item status and Decision point statuses.

5.15 Reports

Please refer to Appendix B for a full list of reports for this implementation.

5.16 Interfaces

No interfaces are required for this process


Interfaces
S/N Description Interface Applications Frequency/ Owner
Method Volumes
1 N/A N/A N/A N/A N/A

5.17 Data Conversion

Please refer to Appendix C of this document for details on data conversion objects for the entire solution.

Please note that historical data for Closed Out and Cancelled projects will not be migrated to SAP.

5.18 Enhancements

Please refer to Appendix D of this document for details on Enhancements to the standard solution required
to meet the stated business requirements for this solution.

5.19 Output (e.g. Forms)

The following form(s) can be automatically generated from SAP PPM in pdf format.
Output/Forms
ID Description Data Object Output Type Frequency Volumes Owner
(Form, EDI, etc)
1 Project Details Item Financial details, Form As required At least PP

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Output/Forms
ID Description Data Object Output Type Frequency Volumes Owner
(Form, EDI, etc)
(Fact sheet) dates, general Item one per
details, Decision point project
details etc.

5.20 SOA (Service Oriented Architecture)

Service Oriented Architecture (SOA) is not applicable to this process

5.21 Third Party Solution

The third party tools or applications required in this process include:


Third Party Solution
ID Description Interface/Required, Development Owner
01 Livelink Livelink is NLNGs current Electronic Document Management System IMT
(EDMS). No development is required to interface this tool with SAP.
Documents that reside in Livelink can however be accessed from SAP
PPM by Checking-in document URLs from Livelink into SAP PPM.
02 DCAF tool The DCAF tool is used to generate the Project Controls and PP
Assurance Plan for each project phase. No interface with the SAP
system is required but information on the deliverables per phase
from the PCAP is required to perform certain steps in the SAP
system.
03 OAP tool The Opportunity Assurance Plan (OAP) tool is used to drive the First PP
Contact Meeting agenda as the attendees are required to populate a
series of input sheets used to construct the OAP. No interface with
the SAP system is required.

5.22 Authorizations

Please refer to Appendix E for the detailed authorization framework for the entire PPM/PS solution for PD
CAPEX projects.

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5.23 Change Impact Summary

Change impact summary for this process is summarized in the table below:

Organizational Change Impact

Change Old Way New Way Positive impacts to Negative


Impact Company or to impacts to
Summary individual roles Company or to
individual roles
Project Engineers are In the SAP system, Improved process Nil
not required to present Project Engineers will efficiency as no
cost estimates for have to enter the separate annual
projects in an annual overall cost estimate budget forecast is
cost split form until the with an annual split of required during
time for annual budget how the overall cost will annual budgeting.
preparation. be spent over the life of Presents opportunity
the project. for Cost Engineers to
provide cost estimate
in annual splits.
IID is approved via a IID is approved by an Improved Nil
manual signoff by the authorized person via a transparency in
authorized person(s) in financial workflow financial approvals.
the project governance based on the decisions Improved controls as
forum. made by the DRB. IID cannot be assigned
to a project without a
workflow approval.
No formal system exists The contribution of Better insight into Nil
for tracking the projects to strategic strategic alignment of
contributions of various objectives like projects. More reliable
projects in the portfolio compliance with information for
to strategic objectives. statutory requirements, executive decision
ensuring asset integrity making.
etc will be tracked using
classification hierarchies
in SAP PPM.

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5.24 Training Requirements

Details of the training requirements for the SAP PPM/PS solution for PD CAPEX projects are provided in
appendix F of this document.

5.25 Testing Requirements

The following test cases will need to be tested during the various testing cycles of the project:
Testing
ID Describe Test Required
01 Revise RAM score (Update RAM questionnaires)
02 Update project priority score
03 Assign project classification (For classification hierarchies)
04 Update Item capacity view with planned capacity demand
05 Update Item financial view with project cost estimate
06 Update Item and Decision Point dates
07 Upload documents in PPM
08 Trigger IID request workflow
09 Approve or Reject Financial Approval Workflow
10 Check automatic item status change on Workflow approval/Rejection
11 Check Financial Information- Authorized Appropriation population
12 Transfer approved appropriation from PPM to PS
13 Distribute budget from level 1 WBS to phase and contingency
14 Change Decision Point Status to completed
15 Display automatically created item version/snapshot
16 Display Decision Point status notification

5.26 Control Requirements

The controls needed for this process are:

Control Requirements
ID Describe Control Requirements
01 The authorized appropriation field should not be editable. These fields should be populated via the

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Control Requirements
financial approval workflow only.
02 After transferring approved appropriation from PPM to PS level 1 WBS, the amount should be
distributed to the appropriate level 2 WBS with a clear split between baseline budget and
contingency budget.

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6 Detailed Planning Process

In the detailed planning phase, projects are matured to a point where they are ready to obtain Final
Investment Decision (FID) after which the project goes into full execution. This process depicts the SAP steps
and relevant manual activities that happen in the Define phase. Based on the NLNG PMS roadmaps, the
Define phase is a mandatory phase for all projects to go through.

The detailed planning process includes a link to the Project Execution and Monitoring process to enable
procurement of long lead materials, placing call off contracts of Design Engineering services or other
services, allowing for time writing etc. The process also includes the process of requesting and gaining
approval for the Final Investment Decision (FID) amount for the project.

6.1 Business Process Requirements

The Business Process Requirements for this process include:


Business Process Requirements Detailed Planning process
Provide a system to enable tracking and comparing project cost estimate changes across various
phases (i.e. type 1, type 2, type 3 cost estimates etc) until FID is finally approved.
Provide a controlled process for requesting and approving FID amount in the SAP system
Support tracking of project execution costs like commitment costs and actual values to financial views
and enable aggregation to bucket and portfolio levels thereby enabling comparison of planned, budget,
commitment costs and actual costs at bucket and portfolio levels.
Provide a robust authorization management system that controls which users can view only or change
project information in the SAP system.
Ability to eliminate the wait time for account code creation and enable quick availability of IID/FID for
spend once approved by DRB.

6.2 Business Process Description

At the start of the process, the Project Engineer updates the Item with the revised RAM score which may be
the output of lessons learned workshops or other risk management activities. A resource plan for the
execute phase of the project may also be keyed into the capacity planning screen of the SAP system. Revised
cost estimates (type 3) are recorded in the Cost Estimate financial view in PPM. Planned decision dates for
the Execute phase are updated from the level 3 project schedule and the Project Premise document / other

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key documents are completed and uploaded as document attachments or live link URLs in PPM. The Project
Engineer is also responsible to make sure that the required FID amount for the project is maintained in the
Requested Appropriation Financial view. In parallel to all these steps is the Project execution and monitoring
process which enables Project Engineers to perform detailed cost planning, procure goods and services and
performing time writing etc. (details of the steps that occur during the Project Execution and Monitoring
process are detailed out in chapter 9).

Once all deliverables are checked and confirmed by the Project Assurance Engineer, the decision point status
is set to Ready for DG4 gate review and the Item status is set to For FID Approval. A workflow is triggered
for FID approval at this stage. The project is then scheduled for a DRB Governance review meeting where a
decision is made to approve, not approve or put the project On Hold. The DRB also makes a decision on the
requested FID amount and if the FID request is not approved, the workflow will be rejected by the Workflow
Approver. If the FID was approved with comments or the DRB requested some rework, the Workflow
Approver will approve the workflow only after the comments have been addressed. In case where the FID
was approved without comments, the workflow is approved and the Authorized Appropriation amount is
populated in the SAP PPM system and the Item status is also updated to FID Approved. The Project Engineer
then transfers the Approved Appropriation from SAP PPM to SAP PS system. The Project Assurance Engineer
then uploads all relevant documents in PPM and then changes the decision point status to completed.

6.2.1 Process Characteristics Table

The Process characteristics tables for the Detailed Planning process are shown below:

Detailed Planning Process - Setup

Process Characteristics - Initial Planning Process


Process Trigger Completion of decision gate DG3 (Select phase).
Risk Management
Project Resource Plan
Project Controls and Assurance Plan
Process Input Type 3 cost estimate
Level 3 project schedule
Project Execution Strategy
Completed Project Premise document

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Process Characteristics - Initial Planning Process


At the end of this process, the output can be either of the following:
Project completion of decision gate DG4 with Final Investment Decision
Process Output (FID) amount approved for the project.
A project placed on hold with status set to On Hold
A project that is cancelled with status set to Cancelled.
Process Owner Project Delivery Manager (PP)
Process Volumes Each project proposal undergoes this process independently.
Process Frequencies Dependent on the number of times projects go through the Define phase.

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6.3 Business Process Flow Diagrams


6.3.1 Detailed Planning Process Define Phase
Detailed Planning Process (Define Phase)

120 Project
Execution &
Monitoring

Project
Type 3 Cost Level 3 project Completed
Resource 40 60 80 100
Project Engineer

Estimate schedule Project Premise


Plan
document

130 Ensure required FID


70 Update Cost 110 Upload relevant
50 Forecast 90 Update Planned amount is maintained in
10 Start Define Estimate Financial Documents in PPM
resource capacity Decision Date from the Requested
Phase view with revised (Project Premise
(optional) project schedule Appropriation financial
Project Estimate Document etc)
view

220 Revise relevant 320 Confirm that FID value


300 Revise relevant
deliverables in line is automatically populated
deliverables in line
with DRB comments in the Authorized
with DRB comments
Appropriation field

140 Set Decision 310 Re-Submit the


150 Set Item Status
30 Update Item Point Status to Workflow
to For FID 380 Update Decision
with RAM Score Ready for DG4 gate
Approval Rework Point status to
review
Completed
(Project Assurance Engineer)

250
PPM Administrator

210 Set Item DRB Portfolio


20
Status to review
Cancelled 240 Set DP status to meetings
Risk In progress
Management Minutes of
Cancelled
Meeting,
etc 330 Confirm that
200 370 Upload MoM Completed
Item status is
180 Cancelled Or and all relevant 360 Minutes of
Rework automatically set to
Rework documents in PPM meeting etc
FID Approved
290 Check that Item
230 Set Item Status status is automatically
to On Hold set to previous status (i.e. Approved
Dispatched 190 Upload MoM Screened/IID Approved
workflow and all relevant
documents in PPM
Project Engineer

340 Transfer 350 Distribute


appropriation / budget to relevant
Budget from PPM to phase and
On Hold SAP PS contingency
Not Approved
Appropriation Approver
(Project Assurance

270 Confirm that 280


Engineer)

workflow amount is FID request


Not Approved Approved/Rework /Not
in line with DRB
approval Approved

Approved

170 FID Approval


Project Approved/ Decisions by 260
DRB

160 Review Not Approved/On


Project at DG4 DRB
Hold?
review meeting

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6.4 Process Step Detailed Requirements and Solution

6.4.1 Detailed Planning Process Define Phase

The processes are explained in the table below.


Process Steps
ID Type Name Description
10 Start Start Define Phase The input for this step is the completion of the previous
event phase. Once the previous phase is complete, the Define
phase of the project starts.
20 Manual Risk Management Various risk management activities that may provide
insight into an updated RAM Score for a project/
opportunity take place during this project phase. Such
activities may include risk register development/update,
risk management plan update, risk management
workshops etc
30 SAP Update Item with RAM The Project Assurance Engineer will update the details
Score related to Risk Assessment Matrix (RAM) in the RAM
questionnaire in the SAP system. Based on the data
provided, the project RAM Score will be automatically
updated in the system.
40 Manual Project Resource Plan The Project Engineer with support from relevant disciplines
makes an estimate of the resource requirements required
to deliver the next phase of the project and a high level
estimate of the requirements for the entire project.
50 SAP Forecast resource The input for this step is the project resource plan.
capacity (optional) The Project Engineer will update the Capacity Planning
view of the item with the revised forecast of resource
requirement for the item.
60 Manual Type 3 Cost Estimate At the end of each project prior to gaining FID approval at
DG4, the cost estimate for delivering the entire project is
revised and fine-tuned based on the level of detail
available at the time. A Type 3 estimate is required at the
end of Define phase and this estimate is required to be at

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Process Steps
ID Type Name Description
the right level of detail to enable executives make a Final
Investment Decision (FID) for the project.
70 SAP Update Cost Estimate The input for this step is type 3 cost estimate.
Financial view with The Project Engineer will update the Cost Estimate
revised Project Estimate financial view with the revised estimate values for the
planned project duration. This can also be done on the
Financial Planning Dashboard where a selected number of
items can be maintained simultaneously.
80 Manual Level 3 project schedule Project schedules are prepared at the end of each phase
(just like the cost estimates) to give an indication of the
anticipated end date for the project at that time. A level 3
project schedule is required at the end of Define phase and
this schedule is usually locked down as a baseline against
which Project delivery schedule performance is tracked.
90 SAP Update Planned The Project Engineer will update the planned decision date
Decision Date from on the Decision Point DG4 based on the Project schedule
project schedule and save the decision point.
100 Manual Completed Project The Project Premise document (PPD) clearly documents
Premise document the premise for the project i.e. sets out clearly the
premises, objectives and economics for the project.
110 SAP Upload relevant The Project Engineer will upload the relevant documents
Documents in PPM (Project Premise document etc.) under the Documents And
(Project Premise Notes tab on the Portfolio Item.
Document etc)
120 SAP Project Execution & Refer to chapter 9 for full details on the Project Execution
Monitoring and Monitoring process.

130 SAP Ensure required FID The Project Engineer in preparation for FID approval will
amount is maintained in ensure that the required FID amount has been maintained
the Requested in the Requested Appropriation Financial view of Item
Appropriation financial Financial Planning.
view
140 SAP Set Decision Point Set the Decision Point (DG4) status to Ready for DG4 gate

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Process Steps
ID Type Name Description
Status to Ready for review and save the decision point. This indicates that the
DG4 gate review Item is now ready for DG4 review and approval. This
activity will be carried out by Project Assurance Engineer
150 SAP Set Item Status to For Set the Item status to For FID Approval and save the
FID Approval Item. This step indicates that the project is now ready to go
through the FID approval process based on the amount
maintained in Requested Appropriation financial view. This
activity will be carried out by Project Assurance Engineer.
160 Manual Review Project at The DRB deliberates on the proposal at a DRB meeting and
DG4 review meeting either takes a decision that the proposal should progress to
the next phase or be put On-Hold or Cancelled.
170 Manual Project Approved / Not The DRB may approve, cancel or place a proposed project
Approved / On Hold? On Hold. This step reflects the various decisions that may
be reached at the DRB meeting.

180 Manual Minutes of Meeting etc The Project Assurance Engineer will prepare the Minutes of
Meeting for upload into SAP PPM.

190 SAP Upload MoM and all The Project Assurance Engineer uploads the MoM and
relevant documents in other relevant documents under the Document and Notes
PPM tab of the Item.
200 N/A Cancelled Or Rework This step is to route the flow to Cancelled or Rework
210 SAP Set Item Status to The Item status is set to Cancelled and the Item is saved.
Cancelled This indicates that the Item was Cancelled by DRB at the
DG4 review meeting and will not be reconsidered any time
in future. This step is carried out by Project Assurance
Engineer.
220 Manual/ Revise relevant The Project Engineer will revise the relevant deliverables in
SAP deliverables in line with line with the DRB Comments. This can be a manual or SAP
DRB comments step based on the comments from the DRB.
230 SAP Set Item Status to On Set the Item status to On Hold and save the item. This
Hold indicates that the Item was kept On Hold by DRB at the
DG4 review meeting and will be reconsidered in future.
This activity will be carried out by the Project Assurance

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Process Steps
ID Type Name Description
Engineer.

240 SAP Set DP status to In The Decision point status for a project placed on hold is
progress changed from Ready for DG4 approval back to In
progress since it has been reviewed at the DRB meeting.
250 Manual DRB Portfolio review An input into sending a project that has been on hold
meetings back to DRB for consideration would be the outcome of
the DRB portfolio review meetings. At these meetings, the
statuses of projects are reviewed and decisions to progress
with projects that are on hold can be made.
260 Manual FID Approval Decisions Decisions made by the DRB concerning the request for FID
by DRB Approval made by the Project Engineer forms the basis for
Workflow Approvers to either approve or reject the
Financial Approval workflow in PPM.
270 SAP Confirm that workflow The workflow approver checks in the Work Item that the
amount is in line with FID amount mentioned in the workflow is in line with the
DRB approval DRB approval.
280 SAP FID request Approved / Based on the decision by DRB the Workflow Approver will
Rework / Not Approved either Approve or Not Approve the FID approval workflow.
290 SAP Check that Item status The Project Assurance Engineer checks that the item status
is automatically set to has been set to the previous status (IID Approved or
previous status (i.e. Screened).
Screened/IID
Approved
300 Manual/ Revise relevant The Project Engineer will revise the relevant deliverables in
SAP deliverables in line with line with the DRB Comments. This can be a manual or SAP
DRB comments step based on the comments from the DRB.
310 SAP Re-Submit the The Project Assurance Engineer will re-submit the
Workflow Workflow for the FID approval since all the updates from
the DRB are now complete.
320 SAP Confirm that FID value The Project Engineer will check that the FID value
is automatically approved during the DG4 meeting is populated in the
populated in the Authorized Appropriation field under the Financial

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Process Steps
ID Type Name Description
Authorized Information on Item.
Appropriation field
330 SAP Confirm that Item The Project Assurance Engineer will check that the Item
status is automatically status is automatically set to FID Approved as the workflow
set to FID Approved is now approved.
340 SAP Transfer appropriation / The Project Engineer will transfer the FID from SAP PPM to
Budget from PPM to SAP PS using the Transfer to SAP ERP functionality on the
SAP PS financial planning of Item.
The output of this step is SAP PS project with Overall
budget updated in transaction CJ30.
350 SAP Distribute budget from Inputs to this process are the target WBS element and the
level 1 WBS to relevant amounts that must be distributed to each.
phase and contingency The Project Development Engineer distributes approved
budget from the level 1 WBS element to the relevant
phase and contingency WBS elements.
The output of this step is budget being available at phase
WBS level.
360 Manual Completed Minutes of The Project Assurance Engineer will prepare the Minutes of
meeting etc Meeting for upload into SAP PPM.
370 SAP Upload MoM and all The Project Assurance Engineer will upload the MoM and
relevant documents in other relevant documents under the Document and Notes
PPM tab of the Item.
380 SAP Update Decision Point The Decision Point DG4 status is set to completed and
status to Completed saved by the Project Assurance Engineer. This indicates
that the Item was approved by DRB at the DG4 review
meeting and the Define phase is completed and the
project can progress to the execute phase.

6.4.2 Process Requirement Table

The table below shows a mapping of the proposed solution to the business requirements and indicates any
GAPs that may require developments.

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Process Requirement Table


ID Requirement Solution Gap GAP Action
1 Provide a system to enable tracking Automatic snapshots taken at Gap Enhancement
and comparing project cost the completion of every
estimate changes across various decision gate will store
phases (i.e. type 1, type 2, type 3 information on the cost
cost estimates etc) until FID is estimate at that phase. Creation
finally approved. of automatic snapshots at every
phase will require a
development
2 Provide a controlled process for Workflow development will be Gap Workflow
requesting and approving FID used for FID Approval process development
amount in the SAP system
3 Support tracking of project Financial views will be No Gaps No Action
execution costs like commitment configured to include values Identified needed
costs and actual values to financial rolled up from SAP PS (i.e.
views and enable aggregation to commitments, actuals etc)
bucket and portfolio levels thereby Standard report will be
enabling comparison of planned, scheduled to roll up all values
budget, commitment costs and from Item to bucket.
actual costs at bucket and portfolio
levels.
4 Provide a robust authorization Standard ACLs in PPM will be No Gaps No Action
management system that controls used to control authorizations. Identified needed
which users can view only or
change project information in the
SAP system.
5. Ability to eliminate the wait time WBS structure in SAP PS will be No Gaps No Action
for account code creation and used as cost objects thereby Identified needed
enable quick availability of IID/FID eliminating the need for
for spend once approved by DRB account code creation.

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6.5 Locations where this Business Process is performed

This process will be applicable in locations where PD CAPEX projects are currently implemented. Major
locations include:
Locations
Location Country Function Number of Users Point of Contact
Bonny Island Nigeria PP TBD Project Services Unit (PPS)
Port Harcourt Nigeria PP TBD Project Services Unit (PPS)
Abuja Nigeria PP TBD Project Services Unit (PPS)
London Nigeria PP TBD Project Services Unit (PPS)

6.6 Operational Decisions or Logic within the Process

Overall budget (i.e. approved appropriation like IID or FID) should not be transferred to SAP PS for
expenditure until annual budget is approved and assigned (either originally approved annual budget
or via budget virement) to the project in PPM.

Workflow approvers should only approve financial approval workflows after a DRB meeting where
such approvals have been granted. Signed hard copy approval documents shall be uploaded in SAP
PPM as evidence of DRBs approval prior to workflow approval in the system.

6.7 SOX and Legal Considerations and Company Specific Policies

This section is not applicable to this process

6.8 Reference to Key Process Changes and Process KPIs

6.8.1 Key Process Changes

Key process changes relating to this process include:

The process for requesting and gaining FID Approval is now system based giving visibility and
transparency to the entire process.

Long wait for creation of account codes after FID approval is eliminated. Budget can be transferred
to PS for expenditure once it is approved.

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Easy access to project information (i.e. budget, cost, approvals, etc) is greatly improved reporting
capabilities at project, bucket and portfolio levels.

Alerts and notifications are available to inform and warn Project Engineers when annual and overall
budget falls below set threshold limits.

6.8.2 Process KPIs

Percentage of projects that get FID approval first time (without rejection or rework)

Front End Loading (FEL) Duration at DG3 or DG4 versus approved FEL Duration (schedule
performance)

Number of projects reaching DG4 within +- x months of planned DG4

Average time lag between FID approval by DRB in a governance meeting and when workflow is
approved by the responsible workflow approver.

Budget Performance

Percentage milestones achieved

6.9 Integration Points

This process will have an integration point with the modules stated below.

Reports via SAP Business Intelligence (BI)/Business Warehouse (BW) modules.

Interface with SAP Business Planning and Consolidation (BPC) for extraction and consolidation of
annual budget values.

Management of user roles and segregation of duties (SOD) using SAP GRC Access control.

6.10 Potential Future Process Improvements

Automation of Budget transfer to SAP PS on approval for IID/FID workflow may be considered in the
future as organizational maturity grows in the use of SAP PPM/PS.

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6.11 Organization Structure Considerations

The organizational structure in SAP is an enterprise structure that reflects the way organization units are
grouped for legal, reporting or other specific business-related reasons or purposes. The SAP Portfolio and
Project Management and Project Systems module does not have its own organization structure but it uses
organization elements from other SAP Modules like SAP FICO (Finance and Controlling), SAP HCM (Human
Capital Management) and SAP MM (Materials Management).
PD CAPEX projects shall use following Organization elements:
Organizational Elements Value Description
Controlling Area NLNG Nigeria LNG Group
Company Code NLNG Nigeria LNG Limited
Plant P001 Production Plant
Profit Centre NLNG NLNG Ltd - Corporate
Business Area 0001 Business Area 0001
Functional Area 3001 CAPEX
Purchasing Organization CP01 Central Purchasing
Project Currency USD United States Dollar

6.12 Master Data Considerations

Please refer to Appendix A of this document for Master Data considerations relating to this process.

6.13 System Configuration Considerations

System configuration considerations related to this process are covered in section 5.13 of this document.
Refer to section 5.13 for further information.

6.14 Workflow

The following custom workflow is required for the FID Approval process:
Workflow
ID Description Data Object Engaged Parties Owner
Z_PD_ FID_APPRVL FID Financial Approval Item Status Project Engineer, PP
Workflow for PD CAPEX Project Assurance
projects Engineer, Workflow
Approver

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Standard PPM notifications will apply when there are changes to the Item status and Decision point statuses.

6.15 Reports

Please refer to Appendix B for a full list of reports for this implementation.

6.16 Interfaces

No interfaces are required for this process


Interfaces
S/N Description Interface Applications Frequency/ Owner
Method Volumes
1 N/A N/A N/A N/A N/A

6.17 Data Conversion

Please refer to Appendix C of this document for details on data conversion objects for the entire solution.

Please note that historical data for Closed Out and Cancelled projects will not be migrated to SAP.

6.18 Enhancements

Please refer to Appendix D of this document for details on Enhancements to the standard solution required
to meet the stated business requirements for this solution.

6.19 Output (e.g. Forms)

The following form(s) can be automatically generated from SAP PPM in pdf format.
Output/Forms
ID Description Data Object Output Type Frequency Volumes Owner
(Form, EDI, etc)
1 Project Details Item Financial details, Form As required At least PP
(Fact sheet) dates, general Item one per
details, Decision point project
details etc.

6.20 SOA (Service Oriented Architecture)

Service Oriented Architecture (SOA) is not applicable to this process

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6.21 Third Party Solution

The third party tools or applications required in this process include:


Third Party Solution
ID Description Interface/Required, Development Owner
01 Livelink Livelink is NLNGs current Electronic Document Management System IMT
(EDMS). No development is required to interface this tool with SAP.
Documents that reside in Livelink can however be accessed from SAP
PPM by Checking-in document URLs from Livelink into SAP PPM.
02 DCAF tool The DCAF tool is used to generate the Project Controls and PP
Assurance Plan for each project phase. No interface with the SAP
system is required but information on the deliverables per phase
from the PCAP is required to perform certain step in the SAP system.
03 OAP tool The Opportunity Assurance Plan (OAP) tool is used to drive the First PP
Contact Meeting agenda as the attendees are required to populate a
series of input sheets used to construct the OAP. No interface with
the SAP system is required.

6.22 Authorizations

Please refer to Appendix E for the detailed authorization framework for the entire PPM/PS solution for PD
CAPEX projects.

6.23 Change Impact Summary

Change impact summary for this process is summarized in the table below:

Organizational Change Impact

Change Old Way New Way Positive impacts to Negative


Impact Company or to impacts to
Summary individual roles Company or to
individual roles
FID is approved via FID is approved by an Improved Nil
manual signoffs by the authorized person via a transparency in
authorized approval financial workflow in financial approvals.
authorities. SAP PPM based on the Improved controls as
decisions made by the IID cannot be assigned

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Organizational Change Impact

Change Old Way New Way Positive impacts to Negative


Impact Company or to impacts to
Summary individual roles Company or to
individual roles
DRB. to a project without a
workflow approval.
After FID approval, Once an FID approval Elimination of delays Nil
there is an additional request workflow is associated with
wait period for the approved, the PPM Item account creation
creation of account automatically gets the means projects can be
codes by finance approved amount delivered faster.
before budget is assigned to its Reduction in manual
loaded and available Authorized effort in account code
to be spent. Appropriation field. The creation allows for
funds can be more effective use of
transferred to SAP PS manpower resources
and spent immediately. in NLNG.
The PS WBS Elements
are the account codes
to which costs are
charged.
Excel spreadsheets are Portfolio reporting is Easy access to Nil
used to aggregate available based on valuable reports
information for portfolio provides stakeholders
portfolio reporting hierarchy/structure in with information on
(i.e. CAPEX PPM. Cost reports etc bucket/portfolio
subgroups). This can be aggregated performance.
requires a lot of easily for various Less manual effort
manual effort and buckets or at portfolio required in generating
results are prone to level. portfolio reports.
human error.

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6.24 Training Requirements

Details of the training requirements for the SAP PPM/PS solution for PD CAPEX projects are provided in
appendix F of this document.

6.25 Testing Requirements

The following test cases will need to be tested during the various testing cycles of the project:
Testing
ID Describe Test Required

01 Derive RAM score for project

02 Update planned capacity demand

03 Update financial view with project cost estimate

04 Update Item and Decision Point dates

05 Check in documents and URLs

06 Check automatically created Item versions

07 Trigger and approve FID request workflow

08 Transfer approved appropriation from PPM to PS

6.26 Control Requirements

The controls needed for this process are:


Control Requirements
ID Describe Control Requirements
01 Authorized Appropriation and approved FID fields should not be editable. These fields should be
populated via the financial approval workflow only.
02 Approved IID/FID should not be transferred to SAP PS for spending if annual budget has not been
assigned to the Item.
03 After transferring approved appropriation from PPM to PS level 1 WBS, the amount should be
distributed to the appropriate level 2 WBS with a clear split between baseline budget and
contingency budget.

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7 Portfolio Ranking Process

The process of ranking projects in the PD CAPEX portfolio is important to ensure that projects with the
highest value to the NLNG are identified and given the right support required to ensure NLNG obtains
maximum business benefit from its CAPEX investments. The need to prioritize and rank projects often
stems from the necessity to manage limited resources (e.g. financial or manpower resources) that is
required for delivery of CAPEX projects. It is therefore important to evaluate projects in the portfolio using
certain parameters which define value for NLNG and then compare the projects against each other in a
structured way to identify projects of highest benefit to NLNG.

SAP PPM will support PD CAPEX projects to rank and prioritize projects in the portfolio by providing a
structured way for comparing projects within the portfolio based on a combination of various predefined
ranking parameters. This process if well applied will aid in ensuring that the projects with the highest
benefit to the NLNG business are being implemented.

7.1 Business Process Requirements

Business Process Requirements for this process include:


Business Process Requirements - Portfolio Ranking Process
Provide a system for computing the Risk Assessment Matrix (RAM) score of a project within the SAP
system to thereby providing essential information required for determining project priority from within
the system.
Make provision for capturing computed NPV values for projects within the SAP system
Allow for computation of a project ranking score by combining multiple project ranking criteria (i.e.
RAM, NPV etc) with different weightings.
Provide an overview of resource demand and availability alongside project ranking information as
required for effective decision making.

7.2 Business Process Description

As part of the Project Initiation and Initial planning processes it is expected that Project Assurance Engineers
will have updated information on the Risk Assessment (RAM) Score and the Net Present value (NPV) for all
projects. The combination of these two scores gives an indication of the priority of the project. The Project
priority field is automatically updated from the overall project score that results from the combination of
these two scores.

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At the start of the Portfolio ranking session, the Project Assurance Engineer creates a review and populates
detailed information about the review as required. The items to be ranked are selected and added to the
review. The Project Assurance Engineer then clicks on the score board button to open the scoreboard and
selects the appropriate scoring model to be used to evaluate the projects. The scoreboard is then sorted by
overall project score from the highest to the lowest to display the ranked list of projects with rankings from
the highest to the lowest. A pdf version of the ranked list is generated using the print version function
and this document can be uploaded in the Documents and Notes area of the review for reference
purposes. A report on available capacity versus the planned/forecast demand is generated alongside the
ranked list of projects and this information is presented to the DRB for decision making purposes. The report
indicates the planned resource capacity status within the portfolio (or for the selected items in the review)
versus the available or target capacity. This information then forms a basis for decision making by the DRB on
approval of additional items into the funnel vis--vis the available capacity to implement those projects.

7.2.1 Process Characteristics Table

The Process characteristics table for the Portfolio/Project Initiation process is shown below:
Process Characteristics - Portfolio Ranking Process
Process Trigger Time for Portfolio ranking exercise.
List of projects or buckets to be ranked with appropriate ranking criteria
maintained on each of the projects.
Process Input
Planned resource demands maintained at Item level and available
resource capacities maintained at bucket level.
Process Output At the end of this process, the output is a list of ranked projects.
Process Owner Project Delivery Manager (PP)
Depends on the number of portfolio items selected to be part of the ranking
Process Volumes
exercise.
Process Frequencies It is proposed to run this process quarterly or bi-annually

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7.3 Business Process Flow Diagrams


7.3.1 Portfolio Ranking Process
Portfolio Ranking Process

30 Populate
40 Assign
detailed
10 Start 20 Create a review authorizations to
information about
the review
the review
(Project Assurance Engineer)
PPM Administrator

70 Select 80 Sort projects by


50 Add Items to be 60 Open scoreboard
appropriate scoring project score (from
ranked to the to view project
model to display highest to lowest)
review scores
project scores to lowest

100 Run dashboard 110 Provide


90 Print Version to
reports to display information on
generate a PDF
capacity status (Available project scoring and
version of the
capacity vs Planned/ capacity status to DRB
ranked list
Forecast demand) for decision support

120 Confirm project


DRB

ranking. Make
decisions based on
project ranking

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7.4 Process Step Detailed Requirements and Solution

7.4.1 Portfolio Ranking Process

The processes are explained in the table below.


Process Steps
ID Type Name Description
10 Start Start This step signifies the start of the Ranking process for
event Projects.
20 SAP Create a review The Project Assurance Engineer will create a review in SAP
PPM for the Bucket which is relevant for the Portfolio Ranking
Process and Save.
30 SAP Populate detailed The Project Assurance Engineer will update the details about
information the review in the Description field of the Review and Save.
about the review
40 SAP Assign The Project Assurance Engineer assigns read or write
authorizations to Authorizations to relevant users who have need to access the
the review review. This is done in the Authorizations sub tab under
Miscellaneous tab of the review.
50 SAP Add Items to be The Project Assurance Engineer then includes all portfolio
ranked to the items that are to be ranked into the Review.
review
60 SAP Open scoreboard The Project Assurance Engineer will navigate to the Items tab
to view project on the Review and click Scoreboard button to Open the
scores Scoreboard of the Items.
70 SAP Select The Project Assurance Engineer will then select the
appropriate appropriate scoring model in the Scoring Model dropdown
scoring model to based on the Ranking criteria. This will display the Project
display project Total Score for individual Items based on the Scoring Model
scores selected.

80 SAP Sort projects by The Items are then sorted from high to low based on the total
project score Score in the scoreboard. This displays the items in order of
(from highest to decreasing project score and provides a ranked project list

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Process Steps
ID Type Name Description
lowest) from highest ranked project to the lowest ranked project in
the process.
90 SAP Print Version to The Print Version button on the scoreboard dashboard is
generate a PDF clicked to generate a PDF version of the ranked list of Items
version of the based on the total score column of the items. This pdf version
ranked list of the ranked list can be uploaded as a document in PPM for
future reference purposes.
100 SAP Run dashboard The Project Assurance Engineer will run a report which
reports to display displays the Available Capacity vs Planned/Forecast demand
capacity status for various capacity groups in the portfolio. This report
(Available provides the status of the capacity and identifies resources
capacity vs for which there is spare capacity and those for which there
Planned/Forecast are constraints in available capacity.
demand)
110 Manual Provide The Project Assurance Engineer will provide the ranked list of
information on items and the report for Available Capacity vs Planned/
project scoring Forecast demand to the DRB for review and decision making.
and capacity
status to DRB for
decision support
120 Manual Confirm project The DRB reviews the ranked list of projects generated from
ranking. Make the SAP system and confirms that the projects with the higher
decisions based rankings are indeed the most important projects to the
on project ranking business. This list also gives useful insight required for
decision making by executives. For example, decisions can be
made on what projects to place on hold or around resource
allocation to projects to ensure optimal delivery of projects
with the highest benefit to the business.

7.4.2 Process Requirement Table

The table below shows a mapping of the proposed solution to the business requirements and indicates any
GAPs that may require developments.

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Process Requirement Table


ID Requirement Solution Gap GAP Action
1 Provide a system for computing Questionnaires based on the Gap Enhancement
the Risk Assessment Matrix (RAM) questions in the NLNG RAM
score of a project within the SAP will be used to compute
system to thereby providing RAM score. A development
essential information required for will be required to display
determining project priority from the score correctly.
within the system.
2 Make provision for capturing Standard NPV field in the No Gaps No Action
calculated NPV values for projects PPM system will be used to Identified needed
within the SAP system capture this information.
3 Allow for computation of a Scoring models will be setup No Gaps No Action
project ranking score by to combine various ranking Identified needed
combining multiple project criteria to give a project
ranking criteria with different score.
weightings.
4 Support ranking of projects in Different questionnaires and No Gaps No Action
specific buckets separately from scoring models can be Identified needed
the others i.e. separate ranking assigned to different
parameters for community buckets. Reviews can be
projects created for different
selection of projects as may
be required.
5 Provide an overview of resource BCV charts / BI/BW reports Gap Report
demand and availability alongside can be used to view resource
project ranking information as capacity demand and
required for effective decision availability when required
making.

7.5 Locations where this Business Process is performed

This process will be applicable in locations where PD CAPEX projects are currently implemented. Major
locations include:

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Locations
Location Country Function Number of Users Point of Contact
Bonny Island Nigeria PP TBD Project Services Unit (PPS)
Port Harcourt Nigeria PP TBD Project Services Unit (PPS)
Abuja Nigeria PP TBD Project Services Unit (PPS)
London Nigeria PP TBD Project Services Unit (PPS)

7.6 Operational Decisions or Logic within the Process

This section is not applicable to this process

7.7 SOX and Legal Considerations and Company Specific Policies

This section is not applicable to this process

7.8 Reference to Key Process Changes and Process KPIs

7.8.1 Key Process Changes

Key process changes relating to this process include:

Ranking of projects no longer done on spreadsheets but will be done in the SAP system using ranking
criteria maintained in SAP.

Improved visibility into the ranking criteria and the ranking process by all stakeholders.

7.8.2 Process KPIs

KPI(s) to be measured in this process include:

Percentage of projects in the portfolio that are placed on hold due to unavailable capacity.

7.9 Integration Points

The following are points of integration with other SAP modules:

Reports via SAP Business Intelligence (BI)/Business Warehouse (BW) modules.

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7.10 Potential Future Process Improvements

Development of a full scale ranking scoreboard for ranking and prioritization of projects with linkage
to proposal approval, annual budget planning and determination of optimum selection of projects in
line with funding or resource constraints.

7.11 Organization Structure Considerations

The organizational structure in SAP is an enterprise structure that reflects the way organization units are
grouped for legal, reporting or other specific business-related reasons or purposes. The SAP Portfolio and
Project Management and Project Systems module does not have its own organization structure but it uses
organization elements from other SAP Modules like SAP FICO (Finance and Controlling), SAP HCM (Human
Capital Management) and SAP MM (Materials Management).
PD CAPEX projects shall use following Organization elements:
Organizational Elements Value Description
Controlling Area NLNG Nigeria LNG Group
Company Code NLNG Nigeria LNG Limited
Plant P001 Production Plant
Profit Centre NLNG NLNG Ltd - Corporate
Business Area 0001 Business Area 0001
Functional Area 3001 CAPEX
Purchasing Organization CP01 Central Purchasing
Project Currency USD United States Dollar

7.12 Master Data Considerations

Please refer to Appendix A of this document for Master Data considerations relating to this process.

7.13 System Configuration Considerations

7.13.1 Reviews

When a review is created and saved, it will auto generate a review ID with a defined number range. Number
ranges are required to make sure that the objects created in the system are in a particular format. This
format makes it easier to identify details about that object such as year, object type and sequential number.

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The Reviews created in the system are in REV13005 (REVYYXXX) format.


Legend
REV Object Type e.g. Review
YY Year e.g. 13 (for 2013), 14 (for 2014) etc.
XXX Review Serial number e.g. 001-999

For example: REV13005


REV refers to the Review created for in NLNG (Includes both IMT & PD)
13 refers to the Year 2013
005 refers to the fifth review created for 2013.

7.13.2 What if scenarios

It was decided to use the standard settings for the What-if Scenarios.
The standard settings for scenario type and scenario classification are shown in the tables below:-
Scenario Type Name
0001 Yearly Financial Planning
0002 Yearly Capacity Planning
0003 Yearly Review Planning
0004 Quarterly Review Planning

Scenario Classification Name


0001 Planning Scenario
0002 Reference Scenario
0003 Review Scenario

7.14 Workflow

No custom workflows are required for this process.

Standard PPM notifications will apply when there are changes to the Item status and Decision point statuses.

7.15 Reports

Please refer to Appendix B for a full list of reports for this implementation.

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7.16 Interfaces

No interfaces are required for this process


Interfaces
S/N Description Interface Applications Frequency/ Owner
Method Volumes
1 N/A N/A N/A N/A N/A

7.17 Data Conversion

Please refer to Appendix C of this document for details on data conversion objects for the entire solution.

Please note that historical data for Closed Out and Cancelled projects will not be migrated to SAP.

7.18 Enhancements

Please refer to Appendix D of this document for details on Enhancements to the standard solution required
to meet the stated business requirements for this solution.

7.19 Output (e.g. Forms)

No forms are required for this process


Output/Forms
ID Description Data Object Output Type Frequency Volumes Owner
(Form, EDI, etc)
1 N/A N/A N/A N/A N/A N/A

7.20 SOA (Service Oriented Architecture)

Service Oriented Architecture (SOA) is not applicable to this process

7.21 Third Party Solution

The third party tools or applications required in this process include:


Third Party Solution
ID Description Interface/Required, Development Owner
01 Livelink Livelink is NLNGs current Electronic Document Management System IMT
(EDMS). No development is required to interface this tool with SAP.

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Third Party Solution


ID Description Interface/Required, Development Owner
Documents that reside in Livelink can however be accessed from SAP
PPM by Checking-in document URLs from Livelink into SAP PPM.

7.22 Authorizations

Please refer to Appendix E for the detailed authorization framework for the entire PPM/PS solution for PD
CAPEX projects.

7.23 Change Impact Summary

Change impact summary for this process is summarized in the table below:

Organizational Change Impact

Change Impact Old Way New Way Positive impacts to Negative impacts
Summary Company or to to Company or
individual roles to individual
roles
Ranking and Ranking and More transparent Nil
prioritization of prioritization will be and efficient
projects in the done in SAP PPM using project ranking
portfolio is done a combination of process.
using spreadsheets. values maintained for
the NPV and RAM in
portfolio Items.
No capacity reports Reports on available Improved decision Nil
exist to support capacity versus making abilities on
decision making planned/forecast project ranking.
during portfolio capacities can be
ranking. generated in SAP PPM
to provide required
information for
decision making.

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7.24 Training Requirements

Details of the training requirements for the SAP PPM/PS solution for PD CAPEX projects are provided in
appendix F of this document.

7.25 Testing Requirements

The following test cases will need to be tested during the various testing cycles of the project:
Testing
ID Describe Test Required

01 Create Review

02 Assign authorizations to a review

03 Add portfolio items to a review

04 Use scoring models to display scoreboard for selected Items

05 Print version

06 View dashboard report to display portfolio capacity status

7.26 Control Requirements

The controls needed for this process are:


Control Requirements
ID Describe Control Requirements
01 There are no control requirements for this process.

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8 Annual Budget Preparation and Approval Process

The NLNG business undergoes an annual budget preparation cycle starting May every year and during this
period, CAPEX and OPEX budgets are prepared for the entire organization. The preparation of CAPEX budget
for PD projects in the As-Is process involves a very manual process that utilizes excel spreadsheets for the
consolidation of the annual budget proposal. At the start of the budget preparation cycle, the budget focal
person in the Project Services team sends out a notification to Project Engineers to update their budget
forecast values on an excel spreadsheet. The various responses from Project Engineers are then collated and
consolidated manually to provide the overall CAPEX budget proposal for the entire portfolio of projects.
This consolidated proposal goes through various review cycles before presentation to the Board of Directors
for final approval. Approved annual budget figures are loaded into SUN by the Finance team.
The new annual budget preparation and approval process in SAP will streamline the process by reducing
manual handling of proposed budget figures via exchange of excel spreadsheets. It will provide an integrated
platform where Project Engineers can maintain their budget forecast values and the budget focal persons /
Section Heads can extract those values for review via a financial planning dashboard. After reviews are
completed, budget values are transferred to BPC for consolidation with budget proposals from other parts of
the business and for onward submission for Board approval. Approved annual values are then posted back
from BPC to PPM as annual budget for the year.

8.1 Business Process Requirements

Business Process Requirements for this process include:


Business Process Requirements - Annual Budget Preparation and Approval Process
Provide a platform where Project Engineers can directly enter budget forecast values for the Project
Assurance Team to extract and consolidate thereby eliminating use of excel spreadsheets for PD CAPEX
budget collation.
Provide a means for seamless transfer of the 5 year annual budget forecast values for the entire
portfolio of projects to Finance during the annual budget preparation cycle.
Provide a system that ensures efficient transfer of approved annual budget back to each project/item
in PPM from Finance after Board Approval.
Provide a financial dashboard where annual budget forecasts for multiple projects can be edited
quickly in one view.
Allow for assignment of substitute Project Engineers to projects so that substitutes can update forecast
values as required when the Project Engineer is away.

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Business Process Requirements - Annual Budget Preparation and Approval Process


Provide warnings and alerts to Persons Responsible when annual budget reaches certain threshold
limits.
Provide a system that supports virement of annual budget from one project to another with a
validation that ensures that the overall annual budget assigned by the board cannot be exceeded.

8.2 Business Process Description

At the start of the Budget preparation cycle, the Budget preparation focal person in the Project Assurance
team sends an email out to all Project Development Engineers/Project Engineers asking them to ensure their
budget forecast values in PPM are updated. The Project Assurance Engineer also notifies them of the cutoff
date and time the data maintained in the system will be extracted for review.

The Project Development Engineers/Project Engineers will log into the PPM system and update their budget
values via the financial planning screen. Updated values should sum up to the latest cost estimate/FID for
that project. Section heads will be able to review the budget proposals for their sections in the financial
dashboard and make changes where required. All changes made by authorized persons in the financial
dashboard will also be effected on the respective Items. When all changes are made, the Project Assurance
Engineer extracts the figures for all Items in the Portfolio for consolidation and review before the proposal
goes for the departmental budget challenge session. Where changes need to be effected as a result of the
budget challenge session, the changes can be made in the financial dashboard or in the respective item by
the Project Engineer, his Section Head or any person authorized to make changes to financial information on
the project. Similar approach is followed for the PD and MD challenge sessions until all changes are made
and then the budget values are extracted to BPC by the Finance team for consolidation with budget figures in
other parts of the business and in preparation for the Board Finance Advisory Committee (FAC) budget
challenge session. Any updates requested by FAC are attended to and then the budget proposal is issued to
the Board for review and approval.

When the board approves the budget for the year, the approved values sit in BPC and need to be transferred
to PPM. At the appropriate time, the Finance focal person runs a report to transfer the approved budget
values to the Annual Budget financial view of each respective Item in PPM. It should be noted that these
values in BPC are stored in BW (Business Warehouse) and there is a time lag within which the values are
saved in BPC and when they are available for transfer to PPM. This will usually take around 24hrs. The
Section Heads then maintain the target annual budget at their respective buckets while Project Engineers
check to confirm that the right annual budget value is transferred to their Projects.

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8.2.1 Process Characteristics Table

The Process characteristics table for the Portfolio/Project Initiation process is shown below:
Process Characteristics - Annual Budget Preparation and Approval Process
Process Trigger Commencement of companywide budget preparation process.
Process Input Budget phasing information for all projects by Project Engineers
At the end of this process, the output will be budget figures approved in BPC and
Process Output
transferred to each portfolio item in PPM.
Process Owner Project Delivery Manager (PP)
This depends on the total number of projects that are relevant for budgeting in
Process Volumes
the project portfolio.
Process Frequencies This process is executed once a year

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8.3 Business Process Flow Diagrams


8.3.1 Annual Budget Preparation and Approval process
Annual Budget Preparation/Approval Process

90 Facilitate 100 110 Facilitate PD 120


(Project Assurance Engineer)

10 Start Budget Departmental challenge Need to adjust Division / MD Budget Need to adjust
No
preparation cycle sessions to review planned budget challenge to review planned budget
PPM Administrator

budget proposal figures? budget proposal figures?


230 End

Yes

130 Inform Section


20 Notify Project 60 Check/Review Heads to make changes
Leaders of cutoff date Budget forecast figures to proposed budget
for extraction on budget across the PD CAPEX figures
forecast from PPM Portfolio

Yes
PPM Administrator
(Project Assurance

220 Check that


Annual Budget
Engineer)

30 Ensure that budget No 80 Confirm that budget value is correctly


phasing figures are values are automatically populated at the
updated in the Cost updated in the respective Item
Estimate financial view Items (optional)
No
Lead Project Engineer
(Section Heads)

40 Review budget 70 Change budget 120 Change budget 140 Change budget 180 Change budget 210 Maintain Target
50 Need to forecast values directly
forecast figures per forecast values directly forecast values directly forecast values directly Annual Budget -
adjust planned Yes in financial planning
bucket in financial in financial planning in financial planning in financial planning Board at Bucket
budget figures? dashboard
planning dashboard dashboard dashboard dashboard level

Yes
Finance/BPC

150 Extract 5 year 160 Coordinate FAC 190 Issue Budget 200 Run report to
170 Need
budget forecast meeting/budget for NLNG Board transfer budget
to adjust planned No
values to BPC for all challenge to review review and from BPC back to
budget figures?
projects budget proposal approval items in PPM

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8.4 Process Step Detailed Requirements and Solution

8.4.1 Annual Budget Preparation and Approval process

The processes are explained in the table below.


Process Steps
ID Type Name Description
10 Start Start Budget The start point for the annual budget preparation and
event preparation cycle approval process is the commencement of the annual
budget preparation cycle. This cycle usually kicks off as early
as May every year to give sufficient time for preparation and
review of the budget list before the cutoff date.
20 Manual Notify Project The Project Assurance Engineer notifies all Project Engineers
Leaders of cutoff / Leaders of the cutoff date for review and update of their
date for extraction annual budget forecast values in PPM. On the cutoff date,
on budget forecast an extract of these values is taken for consolidation to give a
from PPM budget list for PD CAPEX projects.

30 SAP Ensure that budget The Project Development Engineer / Project Engineer will
phasing figures are ensure that the Cost Estimate financial view on their Items is
updated in the updated with the most recent values the wish to present for
Cost Estimate approval.
financial view
40 SAP Review budget When Project Engineers have reviewed and updated their
forecast figures per annual budget forecasts, the Project Delivery Section Heads
bucket in financial will then review the budget forecast figures for their
dashboard respective buckets using the financial dashboard.
50 Manual Need to adjust Based on the review of the annual budget forecast values,
planned budget the Project Delivery Section Heads make a decision if the
figures? budget forecast values need to be adjusted or not. The
output of this step is a decision to revise or not to revise the
annual budget forecast values for the Items.

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Process Steps
ID Type Name Description
60 SAP Check/Review The Project Assurance Engineer reviews the budget
Budget forecast submission for all the Delivery groups for completeness and
figures across the correctness in preparation for the various budget challenge
PD CAPEX Portfolio sessions.
planned budget
figures?
70 SAP Change budget Where required, the Project Delivery Section Heads will
forecast values change the budget forecast values (Cost Estimate view) in
directly in financial the Financial Planning Dashboard for multiple Items and
planning Save. This will update the values in the financial view of
dashboard. individual items.
80 SAP Confirm that The Project Engineer will confirm in the financial planning
budget values are screen that the changes to the forecasted budget values are
automatically correctly updated for their respective items.
updated in the
respective Items
(optional)
90 Manual Facilitate The Project Assurance Engineer facilitates the departmental
Departmental budget challenge session where the Departmental Manager
challenge sessions and the Section Heads carry out a review of the proposed
to review budget budget submission.
proposal.
100 Manual Need to adjust Based on the review of the annual budget forecast values at
planned budget the Departmental challenge session, is there a need to
figures? adjust budget forecast values or not? The output of this step
is a decision to revise or not to revise the annual budget
forecast values for the Items.
110 Manual Facilitate PD The Project Assurance Engineer coordinates putting
Division / MD together the CAPEX budget proposal for the PD Division/MD
Budget challenge budget challenge sessions where further review of the
to review budget proposal is carried out.
proposal

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Process Steps
ID Type Name Description
120 Manual Need to adjust Based on the review of the annual budget forecast values at
planned budget the PD Division/MD budget challenge session, is there a
figures? need to adjust budget forecast values or not? The output of
this step is a decision to revise or not to revise the annual
budget forecast values for the Items.
130 Manual Inform Section In line with the outcome of the PD Division/ MD challenge
Heads to make sessions, the Project Assurance Engineer informs the Project
changes to Delivery Section Heads about any required changes to the
proposed budget budget submissions of their sections.
figures
140 SAP Change budget The Project Delivery Section Heads will change the budget
forecast values forecast values (Cost Estimate view) in the Financial Planning
directly in financial Dashboard for multiple Items and Save. This will update the
planning values in the financial view of individual items.
dashboard
150 SAP Extract 5 year Five year budget forecast values maintained in the individual
budget forecast projects in SAP PPM system are extracted to SAP BPC where
values to BPC for the Finance team can consolidate the values with other
all projects projects in the portfolio.
The output of this step is forecast budget values available in
BPC for further reviews and approval.
160 Manual Coordinate FAC The Finance team coordinates the FAC budget challenge
meeting/budget sessions where further review of the budget proposal is
challenge to review carried out.
budget proposal
170 Manual Need to adjust Based on the review of the budget proposal at the FAC
planned budget budget challenge session, is there a need to adjust budget
figures? forecast values or not? The output of this step is a decision
to revise or not to revise the annual budget forecast values
for the Items.

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Process Steps
ID Type Name Description
180 SAP Change budget The Project Delivery Section Heads will change the budget
forecast values forecast values (Cost Estimate view) in the Financial Planning
directly in financial Dashboard for multiple Items and Save. This will update the
planning values in the financial view of individual items.
dashboard The output of this step is the items with updated budget
forecast values.
190 Manual Issue Budget for After all reviews are made based on the input from FAC
NLNG Board review (Financial Advisory Committee), the budget proposal is
and approval ready for issue to the NLNG Board of Directors for final
approval.
200 SAP Run report to After the annual budget is approved by the board, the
transfer budget Finance/BPC team will ensure that the Budget values are
from BPC back to updated in SAP BW system. The Finance team will then run
items in PPM the Budget Upload report which will update the Approved
Annual Budget for individual items from BPC to SAP PPM.
210 SAP Maintain Target The Project Delivery Section Heads will maintain the Target
Annual Budget - Annual Budget Board based on the values approved by
Board at Bucket Board.
level
220 SAP Check that Annual Project Engineers / Project Development Engineers can
Budget value is check in the financial planning that the Approved Annual
correctly populated Budget financial view is correctly populated with the budget
at the Item values approved by board.
230 End Event End This is the end of the Annual Budget Approval process.

8.4.2 Process Requirement Table

The table below shows a mapping of the proposed solution to the business requirements and indicates any
GAPs that may require developments.

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Process Requirement Table


ID Requirement Solution Gap GAP Action
1 Provide a platform where Project The Cost estimate financial view No Gaps No Action
Engineers can directly enter budget will be setup to hold annual Identified needed
forecast values for the Project budget forecasts of the cost
Assurance Engineers to extract estimates. Project Assurance
thereby eliminating use of excel Engineers will be able to
spreadsheets for PD CAPEX budget view/extract aggregated
collation forecast values at bucket level
2 Provide a means of seamless Interface will be built to transfer Gap Interface
transfer of the 5 year annual budget forecast values from SAP
budget forecast values for the PPM to SAP BPC for
entire portfolio of projects to consolidation by Finance in
Finance during the annual budget preparation for approval
preparation cycle
3 Provide a system that ensures PPM BPC interface will also Gap Interface
efficient transfer of annual budget facilitate transfer of approved
back to each project/item in PPM annual budget from BPC to PPM
from Finance after Board Approval.
4 Provide a financial dashboard A financial planning dashboard Gap Enhancement
where annual budget forecasts for will be developed to support
multiple projects can be edited quick editing budget forecasts
quickly in one view. for multiple projects in one view
5 Allow for assignment of substitute A Portfolio administrator can No Gaps No Action
Project Engineers to projects so assign substitutes as required to Identified needed
that substitutes can update cover for a Project Leader who
forecast values as required when is unavailable.
the Project Engineer is away.
6 Provide warnings and alerts to Traffic lights and notifications Gap Enhancement
Persons Responsible when annual will be developed to meet this
budget reaches certain threshold requirement
limits

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7 Provide a system that supports A budget virement application Gap Enhancement


virement of annual budget from will be developed within PPM to
one project to another with a support budget virements in
validation that ensures that the PPM.
overall annual budget assigned by
the board cannot be exceeded.

8.5 Locations where this Business Process is performed

This process will be applicable in locations where PD CAPEX projects are currently implemented. Major
locations include:
Locations
Location Country Function Number of Users Point of Contact
Bonny Island Nigeria PP TBD Project Services Unit (PPS)
Port Harcourt Nigeria PP TBD Project Services Unit (PPS)
Abuja Nigeria PP TBD Project Services Unit (PPS)
London Nigeria PP TBD Project Services Unit (PPS)

8.6 Operational Decisions or Logic within the Process

Total Budget assigned to projects in the portfolio must not exceed the total annual value approved
by the NLNG Board. Virement of budget between projects may be carried out where required within
the limit of the overall annual budget approved by the Board.

Sum of annual budget forecast values for a project must equal the latest cost estimate for the
project.

Total spend (actuals) for a year must not exceed the annual budget value approved by the Board for
that year.

Budget virement must only affect annual budget phasing and should not add to or deduct from
the approved IID/FID.

8.7 SOX and Legal Considerations and Company Specific Policies

This section is not applicable to this process

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8.8 Reference to Key Process Changes and Process KPIs

8.8.1 Key Process Changes

Key process changes relating to this process include:

Project cost estimates will now be maintained in an annual breakdown view in SAP and this will also
serve as the annual budget forecast for the project.

Five year annual budget forecast values will no longer be prepared using excel spreadsheets and
collated manually by the Project Service Engineers. Project Engineers will log onto the system to
maintain budget forecast values which are also centrally available to the Project Assurance Engineers
for consolidation.

More streamlined, system based way to carry out budget virements between projects.

Project Delivery Section Heads and other authorized persons will be able to plan and/or review
budget forecasts for their sections using a financial planning dashboard.

Alerts notify the Project Engineer early on that he has hit the preset threshold limit so he can take
action to prevent overruns to annual budget.

8.8.2 Process KPIs

KPI(s) to be measured in this process include:

Annual Budget Performance KPI (percentage of approved annual budget spent) to be measured
cumulatively across periods. KPI should be measurable for the entire portfolio, per bucket, per
classification hierarchy and per project.

Percentage change in original approved annual budget (addition or subtraction) due to virements.
KPI should be measurable for the entire portfolio, per bucket, per classification hierarchy and per
project.

Number of approved budget virements and overall financial value of all virements implemented
monthly and annually.

Percentage of total annual budget assigned to each bucket and/or classification Hierarchy.

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8.9 Integration Points

The following are points of integration with other SAP modules:

Reports via SAP Business Intelligence (BI)/Business Warehouse (BW) modules.

Interface with SAP Business Planning and Consolidation (BPC) for extraction and consolidation of
annual budget values.

8.10 Potential Future Process Improvements

No potential future improvements identified for this process.

8.11 Organization Structure Considerations

The organizational structure in SAP is an enterprise structure that reflects the way organization units are
grouped for legal, reporting or other specific business-related reasons or purposes. The SAP Portfolio and
Project Management and Project Systems module does not have its own organization structure but it uses
organization elements from other SAP Modules like SAP FICO (Finance and Controlling), SAP HCM (Human
Capital Management) and SAP MM (Materials Management).
PD CAPEX projects shall use following Organization elements:
Organizational Elements Value Description
Controlling Area NLNG Nigeria LNG Group
Company Code NLNG Nigeria LNG Limited
Plant P001 Production Plant
Profit Centre NLNG NLNG Ltd - Corporate
Business Area 0001 Business Area 0001
Functional Area 3001 CAPEX
Purchasing Organization CP01 Central Purchasing
Project Currency USD United States Dollar

8.12 Master Data Considerations

Please refer to Appendix A of this document for Master Data considerations relating to this process.

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8.13 System Configuration Considerations

8.13.1 Financial Views / Financial Category / Financial Category Group

Please refer to section 5.13.1 for details on Financial Views, Categories and Category Groups configured to
support this process.

8.14 Workflow

No custom workflows are required for this process.

The following custom notifications and alerts will be setup for this process:

Annual Budget threshold notification

Mail notifications will be sent to person responsible of a bucket when actual expenditure gets to 98%
of annual budget values in that bucket.

Budget virement notification

Mail notifications will be sent to persons responsible for approving virements once a virement
request is made.

Mail notifications will be sent to responsible Project Engineers once a virement is approved.

8.15 Reports

Please refer to Appendix B for a full list of reports for this implementation.

8.16 Interfaces

A bi directional interface between SAP PPM and SAP BPC is required to transfer annual budget forecast
values to BPC and return approved annual budget value to PPM. The table below shows details of the
required interface:
Interfaces
S/N Description Interface Method Applications Frequency/ Volumes Owner
1 Mass Budget N/A SAP PPM and Depends on the no of FNC and PP
Distribution SAP BPC projects that require
annual budgets

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8.17 Data Conversion

Please refer to Appendix C of this document for details on data conversion objects for the entire solution.

Please note that historical data for Closed Out and Cancelled projects will not be migrated to SAP.

8.18 Enhancements

Please refer to Appendix D of this document for details on Enhancements to the standard solution required
to meet the stated business requirements for this solution.

8.19 Output (e.g. Forms)

No forms are required for this process


Output/Forms
ID Description Data Object Output Type Frequency Volumes Owner
(Form, EDI, etc)
1 N/A N/A N/A N/A N/A N/A

8.20 SOA (Service Oriented Architecture)

Service Oriented Architecture (SOA) is not applicable to this process

8.21 Third Party Solution

The third party tools or applications required in this process include:


Third Party Solution
ID Description Interface/Required, Development Owner
01 Livelink Livelink is NLNGs current Electronic Document Management System IMT
(EDMS). No development is required to interface this tool with SAP.
Documents that reside in Livelink can however be accessed from SAP
PPM by Checking-in document URLs from Livelink into SAP PPM.

8.22 Authorizations

Please refer to Appendix E for the detailed authorization framework for the entire PPM/PS solution for PD
CAPEX projects.

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8.23 Change Impact Summary

Change impact summary for this process is summarized in the table below:

Organizational Change Impact

Change Impact Old Way New Way Positive Negative impacts


Summary impacts to to Company or to
Company or to individual roles
individual roles
Five year budget Project Engineers More efficient Nil
forecast values are will log into projects process
prepared in MS Excel in SAP PPM for requiring less
by respective Project which they have manual effort in
Engineers and sent to authorization and collating
the Project Services maintain budget spreadsheets.
team for consolidation. forecast values. The process is
Project Assurance less prone to
Engineers will be error.
able to extract and
consolidate forecast
values across the
entire portfolio.
No alerts or Project Engineers More proactive Nil
notifications are will receive warnings management of
available to warn or notifications when potential over
Project Engineers they have spent 90% expenditure
against possible over of their approved leading to a
expenditure of annual budget. This reduction in
approved annual will help alert the cases of annual
budget. Exception Project Engineer budget overrun.
reports are sent timely who can then
retroactively to correct take relevant steps
overruns in annual to avoid exceeding
budget. the approved annual
budget.

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Organizational Change Impact

Change Impact Old Way New Way Positive Negative impacts


Summary impacts to to Company or to
Company or to individual roles
individual roles
Movement of annual Project Engineers Faster virement Nil
budget from the can request a process with
portfolio contingency virement directly on less approval
fund (PE plant change the Portfolio Item steps. Process is
bucket) or from one and then it goes to transparent and
project to another the person all transactions
project requires responsible for the can be audited
completion of a portfolio for in the system.
budget management approval. The
form and obtaining virement is effected
multiple signatures once approval is
after which the request granted and finance
is sent to finance for is notified of the
implementation. change. A validation
is put in place to
ensure that the total
annual budget
approved by the
Board cannot be
exceeded.

8.24 Training Requirements

Details of the training requirements for the SAP PPM/PS solution for PD CAPEX projects are provided in
appendix F of this document.

8.25 Testing Requirements

The following test cases will need to be tested during the various testing cycles of the project:
Testing
ID Describe Test Required

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Testing
01 Update annual budget forecast in cost estimate financial view
02 Review and change planning figures in the financial dashboard
03 Extract five year budget forecasts from PPM to BPC
04 Run report to transfer Annual Budget approved by the Board from BPC to PPM
05 View annual budget alerts in PPM
06 Request budget virement at Item
07 Approve budget virement

8.26 Control Requirements

The controls needed for this process are:


Control Requirements
ID Describe Control Requirements
01 Annual budget fields in PPM should not be editable. Annual budget fields should only be populated
automatically from BPC or via the budget virement application in PPM.
02 Soft budget control should be provided for control of annual budget in PPM. An alert should be
provided to indicate that actual costs accumulated have reached stipulated threshold limits. Traffic
light icons should be green when actuals<75% of budget; yellow when actuals is between 75 and
95% of budget and red when actuals>95% of budget.
03 It should be impossible to transfer overall budget from PPM to SAP PS when no annual budget has
been assigned to that project.

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9 Project Execution and Monitoring Process

The Project Execution and Monitoring Process includes a range of sub-processes that enable Project
Engineers carry out all relevant steps required to enable spending approved project funds (or budget) to
realize the scope and objectives of the project. The Project Execution and Monitoring process include links to
sub processes such as the Project Procurement/Contracting process, Periodic Processing process, Project
Change Request Management process and Project Time Writing process.
The start of project execution in PS is ensuring that the right PS project structure is in place. Levels 1 to 4 of
the WBS structure is automatically created by the operative template from SAP PS while level 5 WBS
Elements are added at the appropriate nodes by the Project Engineer based on the scope of the project.
Project Engineers then begin to procure materials and services required to deliver project scope under the
appropriate level 5 WBS Node. Project activities using in-house resources are planned and then confirmed
via timesheets. Required month end activities are carried out as planned and where additional funding is
required to the approved baseline funds, the Project Change Request Management process is executed to
gain approval to either use the contingency or for additional appropriation.
The SAP PS system will be interfaced with the Primavera planning and scheduling tool to ensure that Basic
and Forecast dates in SAP PS are informed by the WBS dates of detailed activities in Primavera P6. All
throughout the project execution period, there are numerous reports that can be viewed to gain insight on
the status of the project. These execution processes are continuously executed until the project is ready for
startup (RFSU) or ready for use (RFU). At this point, the project status is set to technically complete (TECO)
and the WBS/Project closing process is executed to formally close the project.
Detailed business process and process step descriptions for the execution process and associated sub
processes are contained in various sections within this chapter.

9.1 Business Process Requirements

Business Process Requirements for this process include:


Business Process Requirements - Project Execution and Monitoring Process
Support integration of cost plans and schedules using the Work Breakdown Structure (WBS).
Support effective cost planning and setting of baseline costs for WBS Elements to enable tracking of
costs against the approved baseline.
Allow for indicators on WBS Elements to separate CAPEX Elements from OPEX Elements
Enable integration of SAP PS and Primavera P6 to allow for transfer of scheduled WBS dates from
Primavera to SAP.

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Business Process Requirements - Project Execution and Monitoring Process


Allow for tracking WBS Elements that are technically complete or Ready for startup/use.

Business Process Requirements - Project Procurement and Contracting Process


Support procurement of materials, contracting of services and development of new contracts for
various project activities as required for effective project delivery.
Support automatic budget checks on overall budget (IID or FID) while raising commitments or posting
actual costs to the project.
Ensure that all purchase requisitions are vetted by the Project Engineer responsible for the project
before it proceeds for further approval.
Ensure all purchase requisitions/purchase orders are approved in line with NLNGs Delegated financial
authority (DFA) matrix before it proceeds to the buyer for purchase order processing.
Give Project Engineers improved visibility into delivery dates for materials ordered for projects.

Business Process Requirements - Project Time Writing Process


Provide a system for planning and actual confirmation of internal man-hours for the various resources
to be used on a project.
Provide a system that supports capturing on internal manpower costs spent on projects via effective
time writing.
Allow for Project Engineers to vet and approve all timesheets for time booked on their respective
projects.
Provide for various average rates based on staff job band to be used in computing internal man-hour
costs for projects.

Business Process Requirements Period End Processing Process


Support proper capturing of all project costs at the end of each period before month end reports are
generated

Business Process Requirements WBS/Project Closing Process


Provide a system to properly close out WBSs and projects when they are competed

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9.2 Business Process Description

9.2.1 Project Execution and Monitoring Process

A PS project created from PPM can either be a roadmap 1, 2, 3 or 4 project depending on the approval given
by the DRB for the project. The Project Engineer checks that the correct project structure is automatically
created in PS from PPM based on the selected project roadmap in PPM.
The Project Engineer starts planning the work packages to be placed on the project by developing a
Hardware/Function/Discipline Matrix. Deliverables WBS Elements are then identified by taking into
considerations the Phase Deliverables, Project Roadmap, Historical Information, Costing/Schedule
Information, Procurement Strategy and Lesson Learned from past projects. The approved deliverable WBS
Elements will be loaded into SAP after approval by the Project Engineers Section Head. The Project Engineer
determines the CAPEX and the OPEX deliverables and creates them in SAP below the correct Functions/
Discipline in the PS project structure. The Project Engineer also adds Scope of Work (SOW) line items and
costing in a planning version. The project structure is also transferred to Primavera for detailed schedule
development.
In Primavera, the Project Planner adds detail activities to Deliverable WBS Elements, assigns resources to
activities, schedule the project and determine WBS start and finish dates and transfer these dates back to
SAP which updates the WBS Elements dates in SAP.
Different processes can start taking place such as the Procurement and Contracting process, Periodic
processing process, Project change request management process, Project Reporting and Project Time writing
process. These processes occur continuously through the life cycle of the project.
When the project or work package is Ready for Start Up (RFSU) or Ready for Use (RFU), the Project
Engineer sets the WBS to Technically Complete (TECO) in the system and if the project or work package is
ready for Closure, the Project Engineer performs the WBS/Project Closing Process.

9.2.2 Project Procurement and Contracting Process

Project Procurement is either Material or Service procurement. If a material is to be procured, the Project
Engineer creates an Internal Activity, assigns the Material component to the Internal Activity and then
releases the Network or Activity. If the material is a stock material, a reservation can be created to obtain it
from the warehouse.
Purchase Requisitions require approval based on the NLNG DFA and are sent to responsible approval parties
via a workflow. If approved by the DFA, the Purchase Requisition is processed to a Purchase Order by the
Buyer. Once the material(s) have been delivered, the Discipline Engineer does the physical inspection and

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certifies it okay and then a goods receipt is done in SAP. This action indicates that the goods have been
received, posts the actual costs of the goods to the project WBS and indicates that the invoice for the goods
can be processed. Finance then processes and pays he invoice for the received items.
For service procurement, the Project Engineer can either call off an existing contract or set up a new
contract. For call off contracts, the Project Engineer adds service activities to the deliverable WBS Elements
populates relevant details and triggers a purchase requisition for the service which goes through the DFA
approval workflows.
When the service is received, the Project Engineer performs a service entry /acceptance after the Purchase
order has been raised. Finance also processes the vendor invoice and effects payment.
For new contracts, service activities are used to trigger a request to the contracting team to develop a new
contract. When the contract is developed and loaded in the system, it can be called off as explained for call
off contracts above.

9.2.3 Project Time Writing Process

Project Time Writing Process commences when the Project Engineer creates an internal activity with work
centre assigned under appropriate WBS element and he releases Networks/Activities. Once the
Networks/Activities are released, they are available in the Cross Application Timesheet (CATS) worklist of the
assigned persons for capture time.
Time Writers/Timesheet Administrators/Project Engineers log into CATS and manually capture the monthly
time sheets. Further, these timesheets are released for approval by the Project Engineer. If Project Engineer
rejects the timesheet, then the Time Writers/Timesheet Administrators corrects the rejected time records
and releases for approval. Once the timesheet is approved, it is automatically transferred to SAP PS. The
Project Engineer checks the internal activity for confirmations in SAP PS and the reports are used to confirm
the actual cost postings to the project and this completes the time writing process.

9.2.4 Period End Processing Process

Period end processing commences from the finance team they post the outstanding journals for the month.
The Project Engineer ensures all working hours are captured and released. The Project Engineer ensures all
timesheet are approved and checks that all the approved hours are transferred to Project System. Project
Engineer updates quarterly cost forecast in forecast version.

Finance team ensures all SOW line items and settlement rules are correct and perform monthly settlement
to AUC, assets and cost centres and relevant reports are executed to view monthly cost information.

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9.2.5 WBS / Project Closing Process

To commence WBS element closure, the Project Engineer has to approve and confirm phase/WBS
timesheets, Close all WBS/ phase procurement. Finance will post final journals for the phase/WBS Element
and Perform final settlement on the phase/ WBS Element. Then the Project Engineer set the Deliverable WBS
elements /Phase status to Closed. This process prevents any posting on the WBS element/phase once it is
closed.
If the Project requires a Close-out, the Project Engineer approves any outstanding timesheets, close all
procurement. The finance team posts final journals for the project, perform final settlement and perform
final capitalization.
The Project Engineer set the Project definition status to Closed and run final reports.

9.2.6 Process Characteristics Table

The Process characteristics tables for the Project Execution process are shown below:

Project Execution and Monitoring Process


Process Characteristics - Project Execution and Monitoring Process
Process Trigger Need to spend project budget to realize phase or project objectives
Project Controls and Assurance Plan
Hardware/function/discipline matrix
Project Roadmap
Process Input Historical Information
Costing / schedule Information
Procurement strategy
Lessons Learned
Process Output Technically complete and Closed Deliverable Work package or WBS
Process Owner Projects Delivery Manager (PP)
Process Volumes Each project is executed independently
Process Frequencies Depends on the number of projects in execution

Project Procurement and Contracting Process


Process Characteristics - Project Procurement and Contracting Process
Need to procure materials, develop new contracts or call-off from an existing
Process Trigger
contract.

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Process Characteristics - Project Procurement and Contracting Process


Procurement and contracting strategy/plan;
Process Input IID/FID Approval
Bill of Materials / Material take-off list
Goods receipt and Invoice payment for direct charge materials
Process Output Service acceptance and invoice payments for services
Goods issue from stock for stock Items
Process Owner Contracts and Procurement Manager (CPM)
Process Volumes Depends on the number of materials/services procured.
Process Frequencies Depends on the number of times goods and services need to be procured.

Project Time Writing Process


Process Characteristics - Project Time Writing Process
Need to confirm internal activities on a project
Process Trigger
Time for monthly periodic processing activity
Process Input Details of man-hours worked within the period under consideration.
Approved man-hours posted back to the project to capture time
Process Output
confirmations and actual man-hour costs
Process Owner Project Delivery Manager (PP)
Process Volumes Depends on the number of timesheets processed.
Process Frequencies Ad hoc (can be run as required) but must be executed at the end of every month.

Period End Processing Process


Process Characteristics - Period End Processing Process
Process Trigger Time for month end closure activities.

Details of man-hours worked within the period under consideration.


Process Input
Outstanding direct invoices/costs for projects
Process Output Period End processing completed
Process Owner Project Delivery Manager (PP) / Finance Control Manager (FNC)
Process Volumes Each project executes this process independently.
Process Frequencies Monthly. This process is executed at the end of every month.

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WBS/Project Closing Process


Process Characteristics - WBS/Project Closing Process
Process Trigger Need to complete and close a phase or a project
Outstanding timesheets for the phase/project
Process Input Outstanding direct invoices/costs for the phase/project
All open procurement items (materials/contracts) for the phase/project
Process Output Closed project/phase
Process Owner Project Delivery Manager (PP)
Process Volumes Each project executes this process independently.
Process Frequencies Adhoc. Whenever a project / phase needs to be closed.

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9.3 Business Process Flow Diagrams
9.3.1 Project Execution and Monitoring Process
Project Execution and Monitoring

10 PS Project created
from PPM
370 WBS/
380 End Project Closing
Process
30 Check proj def and
80 Determine
20 Large/Major WBS with Identify, 170
Yes Hardware / Function / Yes
Project? Assess, Select, Define Is the WBS
Discipline Matrix
and Execute phases Element CAPEX/
OPEX? 360
No CAPEX OPEX
Is WBS/project
ready for
50 Check proj def and 320 Is 330 Project closure?
40 Medium WBS with Identify, additional funding Change
Yes
Project? Select, Define and to baseline cost Request Mgt
Execute phases reqd? process
180 Create CAPEX 190 Create OPEX
WBS elements WBS elements
No 350 Set WBS/
below correct below correct
Project Status to
Function/Discipline Function/Discipline
310 Project Technically
70 Check proj def Procurement/ Complete (TECO)
60 Minor and WBS with Contracting
Yes
Project Engineer

Project? Identify, Define and process


Execute phases Yes

340
300 Periodic
Is WBS/project
Processing
Phase Deliverables 90 Identify Deliverable technically
100 process
(from the DCAF) WBS Elements complete?
200 Add Scope of
Project Work (SOW) line
110 Items and costing in
Roadmap
planning version 290 Project
Reporting (Run
Historical relevant reports)
120
Information

Costing/Schedule
130 210 Transfer Project 270 Update SOW line
Information 280 Project
WBS to Primavera Items and costing and
Time Writing
(Create Primavera save costing baseline
Process
Procurement 140 project) after approval
Strategy

Lessons
150
Learned
No
260
Update WBS
element dates in
SAP from Primavera
(Section Head)
Lead Project
Engineer

160 Approve
Deliverable WBS
Elements to be loaded
into SAP
Project Planner

220 Add detail 230 Assign 250 Schedule project


activities with resources to and determine WBS 240 Manage project
relationships to activities in start and finish dates resources in
WBS in Primavera Primavera in Primavera Primavera

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9.3.2 Project Procurement and Contracting Process


Project Procurement/Contracting Process

320 Add service 330 Enter purchasing


10 Commence 350 420 Contracts &
activities to document / Outline
procurement Existing contract 340 Select services Release networks / Procurement
Deliverable WBS Agreement
process Activities complete
Elements (existing contract)

No
No
Yes
Project Materials Coordinator

220 230 Add Service activity 250 Check that PR


20 Material or
Call-off existing that specifies new 240 Release for new contract is
service Service New contract
contract or setup contract details to networks / Activities automatically
procurement?
new contract? Deliverable WBS Element created

Material

30 Create internal 70 Check that 360


activity (with 60 Material Stock reservation is Check that PR (Call-
Stock
DUMMY workcentre or Non-stock? automatically off) is automatically
and activity type ) created created

Non Stock

40 Assign material 100 Check that PR is


50 Release
components to automatically
networks / Activities
internal activities created
Project Development
Engineer /Project

160 Monitor 310 TECO WBS at


120 Delete Material 180 Have goods 90 Run relevant
Engineer

110 Vet Purchase procurement 260 Vet Purchase 270 Delete appropriate time 370 Vet Purchase 410 Perform Service
No component from No been delivered and No reports
Requisition? delivery status Requisition? PR to free up Requisition? Entry / Acceptance
Internal Activity inspected?
(PROMAN) commitment

Yes Yes
Yes Yes
Yes No

Yes 280 Release 300 Contract 380 Release


400 Release
Purchase Approved by Purchase
Approver

No Purchase Order?
Requisition? tender board? Requisition?
DFA

130 Release 150


Purchase Release Purchase
Requisition? Order?
Yes No
No
Yes
CPM (Buyer /

390 Process
Yes 170 Expedite 80 Post goods issue 290 Progress PR to
Contracts
Engineer)

140 Process 190 Perform goods purchase requisition


procurement to to the project (only develop new
purchase requisition receipt to create Purchase
ensure delivery for stock Items) contract
to create Purchase order
dates are met
order
Payable)
Finance
(Accts

200 Invoice 210 Invoice


verification payment

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9.3.3 Project Time writing Process


Project Time Writing Process

10 Commence time
Project Development Engineer / Project Engineer

writing process

20 Add internal
activities with work 130 Time writing
centre/work info to process completed
appropriate WBS

Yes

90 Check internal
30 Release 70 Approve activity
Networks/ Activities Not Approved timesheets? confirmations in
SAP PS

Approved

80 Transfer 100 View reports to 110


(Project Engineers)

40 Complete 60 Release
50 Capture monthly approved hours to confirm actual cost Were actual
manual monthly timesheets for
Time Writers

timesheets SAP PS postings to the costs correctly


timesheets approval
(automatically) project posted

No
Administrator

120 Run transaction


PS

COFC to repost
actual costs

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9.3.4 Period End Processing Process

Period End Processing


Project Development Engineer /

40 60
Ensure all Update quarterly 90 100
Project Engineer

timesheets are cost forecast in Month-end Period end


approved forecast version Reporting complete

30 No
Engineer

50
Project

Ensure all working


Check that all
hours (timesheets)
approved hours are
are captured and
transferred to PS
released

10
Commence period
end closing

70 80
Finance

Ensure all SOW line Perform monthly


items and settlement to AUC,
settlement rules are Assets and Cost
20 correct Centres
Post any
outstanding
journals for the
month

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9.3.5 WBS / Project Closing Process

WBS /Project Closing Process


Project Development Engineer / Project Engineer

10
80
Commence WBS 170
WBS Element closed 160
Element closure Project Close
Run Final reports
complete

70
Set Deliverable WBS 150
element in phase Close project
status to Closed

No

90 140
100
20 30 60 Approve any Set all WBS
Close procurement
Approve and Close all WBS Project Close-out Yes outstanding timesheets Elements to status
on all relevant WBS
confirm WBS Element required? on all relevant WBS Closed
Elements
Element timesheets procurement Elements

110 120
Finance

50 130
40 Post final journals to Perform final
Perform final Perform final
Post final journals all relevant WBS settlement in all
settlements capitalisation
Elements WBS elements

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9.4 Process Step Detailed Requirements and Solution


9.4.1 Project Execution and Monitoring Process

The processes are explained in the table below.


Process Steps
ID Type Transacti Name Description
on Code
10 Start N/A PS Project created The project has been transferred from PPM. This is the last
event from PPM step in the identify phase.
20 Manual N/A Large/Major This refers to the NLNG PMS roadmap for Large and Major
Project (Roadmap 3 projects which include the following phases Identify,
and 4) Assess, Select, Define and Execute
30 SAP CJ20N Check project Check that the project has been created correctly for the
definition and WBS chosen roadmap/item type.
with Assess, Select,
Define and Execute
phases
40 Manual N/A Medium Project This refers to the NLNG PMS roadmap for medium projects
(Roadmap 2) which include the following phases Identify, Define and
Execute
50 SAP CJ20N Check proj def and Check that the project has been created correctly for the
WBS with Select, chosen roadmap/item type.
Define and Execute
phases
60 Manual N/A Minor Project This refers to the NLNG PMS roadmap Medium projects
(Roadmap 1) which include the following phases Identify, Select,
Define and Execute
70 SAP CJ20N Check project Check that the project has been created correctly for the
definition and WBS chosen roadmap/item type.
with Define and
Execute phases
80 Manual N/A Determine This is a matrix which breaks down the project work scope
Hardware / by the key Hardware Items to be delivered by the project
Function / (e.g. turbine, transformer etc); functions (e.g.
Discipline Matrix procurement, construction and commissioning etc) and

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Process Steps
ID Type Transacti Name Description
on Code
discipline (e.g. Electrical, Civil, Mechanical etc)
90 Manual N/A Identify Deliverable The inputs are:
WBS Elements Project PIN and scope of work
Phase deliverables from DCAF
Project roadmap
Historical information on similar projects
Costing and schedule information from estimate
and level 1 schedule
The project procurement strategy
Lessons learned from similar projects
The process is to determine the optimal grouping of the
packages of work taking the above mentioned inputs into
consideration and determining the level of controls that
will be established as well as grouping OPEX and CAPEX
costs separately.
The output is the CAPEX and OPEX Deliverable WBS
elements for the current phase and also the function and
discipline to which the work packages belong. This is
indicated on the Hardware / Function / Discipline matrix.
100 Manual N/A Phase Deliverables Phase deliverables are obtained from the PCAP which is
generated by the DCAF tool.
110 Manual N/A Project Roadmap This refers to the NLNG PMS roadmaps i.e. Minor,
Medium, Major and Large projects
120 Manual N/A Historical Information based on previous similar projects executed
Information
130 Manual N/A Costing/Schedule Information from the cost estimate and project schedule
Information for the project.
140 Manual N/A Procurement The procurement and contracting strategy for the project
Strategy
150 Manual N/A Lessons Learned Lessons learned log

160 Manual N/A Approve The work packages are approved and the output is the set

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Process Steps
ID Type Transacti Name Description
on Code
Deliverable WBS of approved CAPEX and OPEX Deliverable WBS elements
Elements to be that can be maintained in PS.
loaded into SAP
170 Manual N/A Is the WBS Element This step is a decision box to route CAPEX and OPEX WBS
CAPEX/OPEX Elements separately.
180 SAP CJ20N Create CAPEX WBS The input is the approved CAPEX Deliverable WBS element
elements below mapped in the Hardware / Function / Discipline matrix to
correct be created under a specific phase/function/discipline
Function/Discipline branch of the project WBS.
Create the WBS by selecting the CAPEX WBS template
from the worklist in CJ20N. This copies in the correct type
of settlement rule, sets the user status to indicate to the
project accountant that the settlement rule requires
maintenance and validates that the Asset ID mapping can
be done on this WBS element. The CAPEX Deliverable WBS
element is indicated by using the first customer field tick
box appropriately named in the title field as CAPEX
Deliverable.
The output of this step is the completed CAPEX Deliverable
WBS element with Created status.
190 SAP CJ20N Create OPEX WBS The input is the approved OPEX Deliverable WBS element
elements below mapped in the Hardware / Function / Discipline matrix to
correct be created under a specific phase/function/discipline
Function/Discipline branch of the project WBS.
Create the WBS by selecting the OPEX WBS template from
the worklist in CJ20N. This copies in the correct type of
settlement rule, sets the user status to indicate to the
project accountant that the settlement rule requires
maintenance and validates that no Asset ID mapping can
be done on this WBS element. The OPEX Deliverable WBS
element is indicated by using the second customer field
tick box appropriately named in the title field as OPEX

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Process Steps
ID Type Transacti Name Description
on Code
Deliverable.
The output of this step is the completed OPEX Deliverable
WBS element with Created status.

200 SAP CJ20N Add Scope of Work The input to this step is the set of Deliverable WBS
(SOW) line Items elements created for the current phase.
and costing in Add the Easy Cost Planning content to the project
planning version structure by selecting the ECP function radio button and
then the ECP version which must be maintained.
Select to display line items. Add the scope of work line
items to the appropriate Deliverable WBS element. The
line items can be either a cost item or an activity type
item.
The output is the project WBS populated with the SOW
line items and associated costing.
210 SAP /SEPC/XF Transfer Project The input to this step is the project ready for transfer and
ER_PROJE WBS to Primavera creation in Primavera.
CT (Create Primavera Transfer the project to Primavera. The project is created in
project) Primavera with the complete WBS to Deliverable WBS
elements. This is the lowest level of the project WBS that
is transferred to Primavera. The project is transferred and
created in the Primavera EPS bucket indicated by the
customer field on the PS project top level WBS element
that is populated with the PPM Bucket ID.
The output of this step is the project created in Primavera
in the correct EPS bucket with the correct WBS structure.
220 Primavera N/A Add detail activities With the WBS structure up to level 5 work packages
with relationship to transferred into Primavera from SAP, the Project Planner
WBS in Primavera now details out all tasks/activities required to complete
each work package under the respective level 5 WBS.
Relationships and durations are assigned to the activities
in Primavera to ensure that reliable planned start and
finish dates are computed for the various work packages.

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Process Steps
ID Type Transacti Name Description
on Code
Lower level WBS Elements may be created in Primavera to
aid with further breakdown of the project for easy of
planning. These lower level WBS Elements are however
not carried back to SAP.
230 Primavera N/A Assign resources to Assignment of roles and resources to tasks/activities is
activities in managed in Primavera.
Primavera
240 Primavera N/A Manage Project The Project Planner continuously updates and manages
Resources in the project schedule in Primavera
Primavera
250 Primavera N/A Schedule project When detailed activities, durations, relationships and
and determine resource assignments are populated in Primavera, the
WBS start and project is scheduled to compute the WBS start and finish
finish dates in dates in Primavera. Where lower level WBS Elements have
Primavera been created below the level 5 work package, the dates
rollup to the level 5 WBS for transfer back to SAP PS.
260 SAP /SEPC/XF Update WBS Transfer Deliverable WBS element dates from Primavera
ER_PROJE element dates in to SAP PS.
CT SAP from Transfer Deliverable WBS element percentage completion
Primavera from Primavera to SAP PS SKF on Deliverable WBS
element.
Manually transfer updated planned hours in Primavera to
planning in SAP PS.
270 SAP CJ20N Update SOW line Update Easy Cost Planning line items.
Items and costing
and save costing
baseline
280 SAP N/A Project Time Refer process flow and detailed step description for this
Writing Process process in sections 9.3.3 and 9.4.3
290 SAP Reports Project Reporting Execute SAP PS reporting transactions to see various
(Run relevant reports that give insight on the status of the project
reports)

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Process Steps
ID Type Transacti Name Description
on Code
300 SAP N/A Periodic Processing Refer process flow and detailed step description for this
process process in sections 9.3.4 and 9.4.4

310 SAP N/A Project Refer process flow and detailed step description for this
Procurement/Contr process in sections 9.3.2 and 9.4.2
acting process
320 Manual N/A Is additional Budget is distributed in SAP PS with a split between the
Funding to baseline baseline amount (loaded on the phase) and the
cost required? contingency amount. This decision box determines if
additional funds are required to the baseline amount
loaded on the phase as this determines if the change
request process needs to be executed.
330 SAP N/A Project Change Refer process flow and detailed step description for this
Request process in chapter 10 of this document
Management
process
340 SAP CJ20N Is WBS/project Is the work package ready for start-up (RFSU) or ready for
technically use (RFU)?
complete?
350 SAP CJ20N Set WBS/Project Set the status of the WBS to Technically Complete (TECO)
Status to or set the status of the project definition to Technically
Technically Complete (TECO).
Complete (TECO)
360 SAP CJ20N Is WBS/project Check status of Deliverable WBS/complete project
ready for closure? compared to actual status
370 SAP CJ20N WBS/Project Refer process flow and detailed step description for this
Closing Process process in sections 9.3.5 and 9.4.5

380 Manual N/A End End of the process

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9.4.2 Project Procurement and Contracting Process

The processes are explained in the table below.


Process Steps
ID Type Transacti Name Description
on Code
10 Start N/A Commence This process commences If a Material is planned to be
event Procurement bought or a Service is planned to be purchased on the
Process project.
20 Manual N/A Material or Service Is it a Material or Service that is planned on the project?
Procurement?
30 SAP CJ20N (Material) The input to this step is determining that materials are
Create an Internal going to be procured and under which deliverable WBS
Activity (with element the materials will be procured.
DUMMY activity An Internal activity is created with no cost value (using a
and WorkCentre DUMMY activity type and WorkCentre) and it is assigned
info) to the identified deliverable WBS element. The Material
components are maintained on the internal activity.
It is important to note that the network is the grouping
element for purchase requisitions. This means that when
the network activities that belong to the network are
released, it will all create one purchase requisition with
each of the assigned materials being a line item on the
purchase requisition.
The best practice is therefore to create one network that
contains all the network activities with assigned materials
for one procurement package. If there are changes
identified on the procurement package, care must be
taken how the changes are applied to the network
activities because the procurement process might have
already run its course. If a change is then applied, the
purchase requisition will be changed and the release
strategy re-initiated and the procurement process
restarted. An alternative to this could be to raise a
separate purchase requisition by creating a separate

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Process Steps
ID Type Transacti Name Description
on Code
network with its activities.
The output is an Internal activity assigned to a network
and to a Deliverable WBS element.

40 SAP CJ20N Assign Material The input to this step is the Internal activity assigned to a
Components to deliverable WBS element.
Internal activities Material components with material masters are selected
and assigned to the Internal Activity. The material master
contains default values for the material as defined by the
purchasing team. If the material master does not yet
exists, the request must be made to the purchasing team
to create the material master for the specific material.
The material must be identified as either being from stock
Item Category L or not from stock Item Category N.
It will only under exceptional circumstance be from stock
that is the situation where a material is urgently required
and it cannot wait for the lead time on the purchase of the
material.
When the material is assigned to the internal activity, the
requirement date is default as the finish date of the
activity. This date is inherited from the Deliverable WBS
element basic finish date which is updated from
Primavera. This date must be adjusted either by setting it
as a manual date or by entering an offset of minus the
number of days before the finish date.
The other values that must be maintained are the
following:
General tab:
Adjust requirements date as detailed above
Recipient
Unloading point

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ID Type Transacti Name Description
on Code
Purch Data tab
Required Qty / UOM
Requisitioner
Purch Group
Purch Org
The output of this process is the Internal activity with all
the material components assigned and the material
components correctly classified as from stock or non-stock
to generate a material reservation or Purchase Requisition
50 SAP CJ20N Release The input to this process is the Internal Activity with all the
networks/Activities material components correctly assigned to it.
The best practice is to release at the work package level or
at the network level due to the network defining the
purchase requisition grouping. Releasing the network or
activity allows for Purchase Requisition line item to be
created for the material components with Item Category
N and a reservation line item for the material
components with item category L. Each of the line items
will belong to either a purchase requisition or reservation
defined by the network header.
The source of supply for the material components will be
default from CPM if it is available. If a source of supply is
not available, then the purchase requisition will be routed
for sourcing.
The output of this process is the Purchase Requisition and
reservations with line items
60 Manual N/A Material Stock or The decision dictates if a reservation (for stock) or a
Non-stock? purchase requisition (for non-stock), is created from the
planned material components on the network activities.
70 SAP CJ20N (For Stock )Check The Input of this process is the released network activities
that reservation is with L Item Category material assigned to it and the
automatically reservations created from it.

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ID Type Transacti Name Description
on Code
created If the Item Category of the Material chosen is L, stock
Material, a reservation is automatically created. The
material is reserved in inventory to fulfill the requirement
for the project.
The output of this process is the checked and verified
stock reservation.
80 SAP MIGO Post Goods issue to The input of this process is the Reservation for a Material
project (only for component.
Stock items) This step is only performed for stock material components.
The Material if exist in project stock is issued and posted
to the project on the defined network. The cost of the
material is charged back to the project.
The output of this process is the material component issue
to the project against the reservation. This concludes the
procurement cycle for stock items.
90 SAP Various Run Relevant Relevant reports exist in SAP that gives the status or
Reports impact of the procurement or contracting process.
100 SAP CJ20N (For Non Stock) The Input of this process is the released network activities
Check that PR is with N Item Category material assigned to it and the
automatically Purchase Requisitions created from it.
created If the Item Category of the Material chosen is N, Non-
stock Material, a purchase requisition is automatically
created.
The output of this process is the checked and verified
purchase requisition.
110 SAP ME54N Vet Purchase Project Engineers will be required to check and vet all
Requisition purchase requisitions raised against their projects.
120 SAP CJ20N (No) Delete If a purchase requisition is not approved, the material
Material component attached to the internal activity should be
component from deleted to ensure that budget is not tied down by that
internal activity material.

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ID Type Transacti Name Description
on Code
130 SAP ME54N (Yes) Release All purchase requisitions go through a release or approval
Purchase process based on NLNG DFA. Approval for purchase
Requisition requisitions is done by the appropriate persons with the
right DFA.
140 SAP ME21N Process Purchase The approved purchase requisition is the input of this
requisition to process. This process is only relevant to non-stock material
create Purchase components.
Order There are two scenarios that can happen:
The material has a source of supply contract
The material does not have a source of supply
contract.
In the case of the material that has a source of supply, the
vendor is maintained and the purchase order created
accordingly. In the case of the source of supply not
defined, the purchase requisition is passed to SRM for
sourcing. The process is completed in the SRM and ends
when the purchase order is created.
The end result in both scenarios is that the Purchase Order
is created for the chosen vendor to supply the material(s).
Each distinct material or material/network activity
combination is on its own separate line item on the
purchase order.
The output of this process is the purchase order that is
created for the material. The purchase order contains the
material availability date for each of the line items on the
order.
150 SAP ME54N Release Purchase All purchase orders go through a release or approval
Order process based on NLNG DFA. Approval for purchase orders
is done by the appropriate persons with the right DFA.
160 SAP PROMAN Monitor The input of this process is the Purchase Order for the
procurement material components.
delivery status This process is only relevant for non-stock material

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ID Type Transacti Name Description
on Code
(PROMAN) components. The delivery dates and statuses of the
purchase order line items are monitored and expedited
against the dates of the network activities to which they
are assigned.
170 Manual N/A Expedite Input- The alerts from PROMAN, the purchase order line
procurement to item material availability dates, the rescheduled dates on
ensure delivery the network activity to which the purchase order line
dates are met items are assigned.
This process is only relevant for non-stock material
components.
The network activity dates are derived from the work
package (Deliverable WBS element) dates to which the
network activity is assigned. These dates are in turn
updated from the Primavera schedule. The dates that are
initially used to determine the required delivery date for
the material were based on the Deliverable WBS element
basic start and finish dates. When rescheduling takes
place, the forecast dates are updated on the Deliverable
WBS element and these dates update the network activity
dates to form the new monitoring baseline. The Project
Engineer tries to accelerate the procurement process or
makes sure the goods delivery dates are met by constantly
interacting with the Buyer /Contract Engineers on the
status of delivery.
If the delivery dates cannot be accelerated, the project
engineer updates the project schedule in Primavera to
identify the impact on the overall project and come up
with a workable plan. This will then update all the forecast
dates which will then be used for the continuing
monitoring.
The output of this step is the date adherence between the
project plan and the procurement delivery performance.

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ID Type Transacti Name Description
on Code
Once the material is delivered, a Goods receipt is done on
the system and the monitoring stopped.
180 Manual N/A Have goods been Once the Material(s) has been delivered to site, the
delivered? Discipline Engineer does the physical inspection and
certifies the material okay and a Goods receipt transaction
is performed in SAP.
190 SAP MIGO Perform Goods The input of this process is the Purchase Order for the
Receipt materials requested and the physical delivery of the
materials to the project site.
This step is only performed for non-stock material
components.
A goods receipt onto the project is done on the system
once the material is received at the project site and
certified okay by the discipline engineer. The material is
not received into any stock and is managed manually at
the project site.
Once the Discipline Engineer certifies the Material okay,
the material is posted to the project by doing a Goods
Receipt transaction In the system by the Project Engineer.
The output of this process is performing an invoice
verification exercise for the Vendor Invoice
200 SAP MIRO Invoice Verification The input of this process is performing a Goods receipt in
the system.
This process is only valid for non-stock material
components. Invoice Verification is a process of initiating
payment for a vendor. The vendor is paid according to the
value or amount in the Goods receipt posted
The invoice payment is the output of this process.
210 SAP F110 Invoice Payment The input of this process is the Invoice verification
Invoice payment to the vendor is done once the invoice
verification exercise has been completed.
Output- This completes the procurement cycle for a non-

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ID Type Transacti Name Description
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stock Material Component.
220 Manual Manual (Service) Call off Procurement of services can either occur through a call off
existing contract or from existing contract or creating a New contract where
set up new sourcing of vendors will occur and drawing up a new
contract? contractual agreement.
230 SAP CJ20N (New Contract) The input of this process is if a need to create a new
Add service activity contract.
that specifies new A service activity is assigned to the relevant work package
contract details to (or deliverable WBS element) which forms part of that
Deliverable WBS packages scope of work.
Element The service to be procured is specified in the long text of
the external activity.
The output of this process is the external activity which is
released through the network or external activity release
to create a Purchase requisition.
240 SAP CJ20N Release network The input of this process is to create a service activity and
/Activities assign it to a Deliverable WBS Element and the
specification of the services to be procured on the activity.
Releasing the network or activity allows for Purchase
Requisition document to be created for the external
activity from a PS screen
The output process is to check that the Purchase
requisition is automatically created.
250 SAP CJ20N Check that PR for The input of this process is the release of the network
new contract is activities.
automatically A Purchase Requisition for the new contract is
created automatically created when either the network or the
service activity is released.
The output of this process is to progress the Purchase
Requisition with a long text description of the required
services, to develop a new contract.

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ID Type Transacti Name Description
on Code
260 SAP ME54N Vet Purchase Project Engineers will be required to check and vet all
Requisition purchase requisitions raised against their projects.
270 SAP CJ20N Delete Purchase If a purchase requisition is not approved, the service
Requisition activity should be deleted to ensure that budget is not tied
down.
280 SAP ME54N Release Purchase All purchase requisitions go through a release or approval
Requisition process based on NLNG DFA. Approval for purchase
requisitions is done by the appropriate persons with the
right DFA.
290 SAP Various Progress PR to The input of this process is create a Purchase requisition
develop new for a new contract to be created
contract the Purchase requisition created will be progressed in the
SRM system to create a new contract
The output of this process is the approval of the contract
300 SAP N/A Contract Approved The input of this process is the creation of the contract
by tender Board The contract will be taken to the tender board for
approval.
310 SAP CJ20N TECO WBS at Completing a WBS frees up any commitments tied to that
appropriate time to WBS Element.
free up
commitment
320 SAP CJ20N Add Service The input of this process is if a call off contract exists and
Activities to the requirement for the service matches that contracts
Deliverable WBS services.
Elements The service activity will create a purchase requisition that
will be converted into a call off purchase order against the
contract. A Service activity is assigned to either a CAPEX or
OPEX Deliverable WBS element work package.
The dates for the service delivery (when it should start)
will be defined by the network start date that is inherited
from the Deliverable WBS element basic start date. The
Deliverable WBS element dates are updated from

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ID Type Transacti Name Description
on Code
Primavera. The dates for the deliverables can be adjusted
on the network activity by changing the planned delivery
time.
The output of this process is the service activity on which
the service procurement will take place to enter
purchasing document /outline agreement in the service
specification screen on the Project builder transaction
330 SAP CJ20N Enter purchasing The input of this process is the service activity assigned to
document/ Outline a Deliverable WBS Element
Agreement The purchasing document/ outline agreement are created
(Existing Contract) by the purchasing department
The services needed from the contract are chosen from
the outline agreement list. The output is the service
activity maintained with the relevant contract.
340 SAP CJ20N Select Services The service activity maintained with the relevant
procurement document/ outline agreement is the input of
this process
Services will be selected from a list of services that exist in
the contract/ outline agreement. All services also can be
needed to execute the project. The required quantities of
the services are maintained on the service activity.
After the services have been selected, the network
activities need to be released to create a Purchase
requisition which forms the output of the process.
350 SAP CJ20N Release The input of this process is to create a service activity and
network/Activities assign it to a Deliverable WBS Element and select the
relevant services from the contract are selected
Releasing the network or activity allows for Purchase
Requisition document to be created for the service activity
from a PS screen.
The output process is to check that the Purchase
requisition is automatically created.

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ID Type Transacti Name Description
on Code
360 SAP CJ20N Check that PR (Call The Input of this process is the release of the network
off) is automatically activities
created A Purchase Requisition is automatically created when
either the network or the Service activity is Released.
The output of this process is the approval of the Purchase
Requisition by the appropriate DFAs.
370 SAP ME54N Vet Purchase Project Engineers will be required to check and vet all
Requisition? purchase requisitions raised against their projects.
380 SAP ME54N Release Purchase All purchase requisitions go through a release or approval
Requisition process based on NLNG DFA. Approval for purchase
requisitions is done by the appropriate persons with the
right DFA.
390 SAP ME21N Process purchase The approved purchase requisition is the input of this
requisition to process.
create Purchase The Purchase Order is created for the chosen vendor to
Order render the service
Service entry/ acceptance is done on the system once the
service is completed.
400 SAP ME29N Release Purchase All purchase orders go through a release or approval
Order process based on NLNG DFA. Approval for purchase orders
is done by the appropriate persons with the right DFA.
410 SAP ML81N Perform Service The input of this process is to create a service activity
Entry/Acceptance Once services rendered is satisfactory, the project
engineer does the Service entry/acceptance transaction
Invoice verification transaction done by finance is the
output of the process

420 Contracts and Process completed


Procurement
Completes

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9.4.3 Project Time Writing Process

The processes are explained in the table below.


Process Steps
ID Type Transacti Name Description
on Code
10 SAP N/A Commence Time The time writing process commences
Writing Process
20 SAP CJ20N Add internal The input to this step is determining that internal labour is
activities with work required and the CAPEX or OPEX Deliverable WBS element
centre /work info on which the internal labour will be used.
to appropriate WBS An Internal activity is created with no cost value and it is
assigned to the CAPEX or OPEX Deliverable WBS element
identified above.
The Work Centre, number of hours and duration is
maintained on the internal activity.
The work centre defines the resource level and discipline
that is planned to work on the activity.
The start and finish dates for the activity are defined by
the network to which the activity belongs and the start
and finish dates of the network are defined by the
Deliverable WBS to which the network is assigned. The
start and finish dates of the deliverable WBS element are
updated from Primavera.
The output is an Internal activity assigned to a network
and to a Deliverable WBS element with dates, work-
center, work and activity type defined.
30 SAP CJ20N Release internal The input to this process step is the network internal
activity activity that is ready to be released.
The activity is released to enable the assignment to appear
on the worklist of the resources that are assigned to the
work centre. The time for these resources can now be
captured in SAP against the correct activity.
The output of the process step is the entries in the worklist
on the CATS timesheet of all the resources assigned to

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ID Type Transacti Name Description
on Code
activities via their work centre assignment.
40 Manual N/A Complete manual All the resources that must book time to projects complete
monthly a timesheet detailing on which project was worked on
timesheets each day of the month for how many hours.
50 SAP CAT2 Capture monthly The input to this process step is the manual timesheets
timesheet completed by the project team members.
The manual timesheets are captured in SAP by employee
number for a specific month. The project is selected from
the work list, copied to the entry area en the daily hours
completed.
The output of this process step is the recorded time
records per employee, per project, per day for the month.
60 SAP CAT2 Release timesheet The input to this process step is the timesheets captured
records for in the system.
Approvals The entered time is selected and released.
The output of this process step is the released recorded
time records per employee, per project, per day for the
month ready for approval.
70 SAP CATS_APP Approve timesheet The input to this process step is the released time records
R from the timesheets.
The approvers check the time records and either approves
or rejects the times entered. Each record can be
individually approved or rejected. If the time record is
rejected, the employee is informed.
The output of this process step is the approved or rejected
timesheet records.
80 SAP CAT5 (Approved) The input to this step is the approved timesheet records.
Transfer approved The batch program setup to run regularly (multiple times
hours to SAP PS per day) transfers the approved time records to PS and
(Automatically) posts it against the correct project element. The posting
process uses the number of hours, activity type and the
employee master cost centre record to calculate the cost

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Process Steps
ID Type Transacti Name Description
on Code
rate and the total cost of the posting.
The post processing transactions are run regularly to check
if any problems occurred during the posting process and to
fix such problems.
The output of this step is the posted confirmations on the
project element.
90 SAP CN30 Check internal The input to this step is the timesheet confirmations to PS.
activity Project Engineers check that the transferred timesheets
confirmations in create activity confirmations in SAP PS.
SAP PS The output of this step is the corrected confirmed activity.
100 SAP CJI3, cost View reports to The input to this step is the timesheet confirmations to PS.
reports confirm actual cost Run the required reports to make sure that the costs
postings to the associated with time writing are correctly posted back to
project PS.
The output of this step is the confirmed cost postings
110 Manual N/A Were actual costs This identifies if there were any errors in cost posting back
correctly posted to PS
120 SAP COFC Run Transaction This transaction is executed to fix any problems in actual
COFC to repost cost postings to the project as a result of time sheet
actual costs transfer.
The output of this step is the corrected confirmed activity.
130 Manual Time writing This marks the end of the time writing process
process completed

9.4.4 Period End Processing Process

The processes are explained in the table below.


Process Steps
ID Type Transacti Name Description
on Code
10 Start N/A Commence Period Start of the Period end closing process

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ID Type Transacti Name Description
on Code
event end closing
20 SAP FB50 Post any The input for this process is the scheduled month-end.
Outstanding Period end closing starts from the finance posting any
journals for the outstanding journals for the month.
month The output is that all costs have been posted to the WBS.
30 SAP CAT2 Ensure all working The input is all the timesheets for the project.
hours (timesheets) Time writing Administrator ensures all working hours are
are captured and captured and released.
released The output is the captured and released time records for
the project for the past month.
40 SAP CATS_APP Ensure all The input is the captured time records on the project.
R timesheets are Project Engineer will ensure all the timesheets are
approved approved.
The approved time records and the rejected time records
that are corrected and resubmitted and then approved.
50 SAP CAT5, Check that all The input to this step is the approved timesheet records.
CN30, approved hours are The batch program setup to run regularly (multiple times
COFC transferred to PS per day) transfers the approved time records to PS and
posts it against the correct project element. The posting
process uses the number of hours, activity type and the
employee master cost centre record to calculate the cost
rate and the total cost of the posting.
The post processing transactions are run regularly to check
if any problems occurred during the posting process and to
fix such problems.
The output of this step is the posted confirmations on the
project element.
60 SAP CJR2 Update quarterly The input to the step is the previous forecast version (Fnn-
cost forecast in 1), the updated baseline (ECP) cost and the actual cost.
forecast version The project engineer now updates the cost flow forecast
version (Fnn) with the input information.
The output is the updated forecast cost flow for the

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Process Steps
ID Type Transacti Name Description
on Code
financial period.

70 SAP CJ20N Ensure all SOW line The input is the project WBS and the user statuses on each
items and of the Deliverable WBS elements and the Phase WBS
settlement rules elements.
correct The user status AF Accountant Flag, on the WBS
indicates that the accountant has to maintain the
settlement rule. After the project accountant maintained
the settlement rule, the user must set the flag to NR
normal processing to indicate that the WBS has been
maintained.
Finance must ensure that the settlement rule on the OPEX
Deliverable WBS elements settle to the correct cost
centre(s) and that the CAPEX Deliverable WBS element
settles to the parent phase WBS element.
Finance must ensure that the currently executed phase
WBS element settles to the correct AUC. Finance must
ensure that the Phase WBS element settles in the right
values to the assets when the asset must be capitalized.
This means that the asset must be created and added to
the settlement rules of the Phase WBS element with the
correct phase values for the asset maintained on the rule.
Finance has to ensure that all SOW line items are correctly
assigned to the Deliverable WBS element ito OPEX and
CAPEX. A specific Deliverable WBS element is marked as
either OPEX or CAPEX in the user fields. The OPEX
Deliverable WBS element is settled to a cost centre while
the CAPEX Deliverable WBS element is settled to the Phase
WBS element from where it is either settled to an AUC or
finally capitalized.
The output of this step is a 100% correct WBS wrt its
financial accounting integration.

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Process Steps
ID Type Transacti Name Description
on Code
80 SAP CJ88 Perform monthly The input to this step is the correct WBS.
settlement to AUC, Finance will perform the monthly settlement run to the
Asset and Cost Phase WBS elements, AUC, Assets and cost centers. The
centers run must allow partial capitalization to make provision for
assets being delivered at different times during project
execution.
The output of this step is the costs settled to either cost
centres, AUCs or Financial assets.
90 SAP SAP Month-end The input to this step is the month-end processing:
Project Reporting Project Engineer will perform the month end reporting
Reports The output is the month-end financial and logistics reports
for the project(s).
100 Manual N/A Period end End of the Period end closing process
complete

9.4.5 WBS / Project Closing Process


The processes are explained in the table below.
Process Steps
ID Type Transacti Name Description
on Code
10 Start N/A Commence WBS Start WBS closing process
event closure
20 SAP CAT2, Approve and The input is the captured time records on the phase of the
CAT5, confirm phase/ project.
CN30, WBS timesheets Project Engineer will ensure all the timesheets are
COFC approved.
The approved time records and the rejected time records
that are corrected and resubmitted and then approved.
The approved time records are transferred automatically
to PS. The checks are done to ensure that there were no

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Process Steps
ID Type Transacti Name Description
on Code
residual errors in the transfer and that all the
confirmations are successful on the PS WBS side.
The output of this process is the cost confirmed on the PS
project.
30 SAP CJ20N Close all phase/ The input of this process is all the assigned values created
WBS procurement by procurement such as the Purchase requisitions and the
Purchase Orders.
All procurement done for the WBS or phase needs to be
closed before the project engineer can close the phase or
WBS Element.
The output of this process is to close the WBS elements or
phase.
40 SAP FB50 Post final journals The input of this process is the posting of actuals done on
a project.
For the project engineer to be able to close a WBS
element/ phase, finance has to post journal to net off
accounts.
The output of this process is that the project is ready for
final settlement and capitalisation.
50 SAP CJ88 Perform final The input of this process is the periodic settlement done
settlements monthly.
A final settlement has to be carried out on the WBS
element /phase to move values to Assets and cost centres.
There should be no residual expenses on the project.
The output of this process is a fully settled project with no
values left on any AUC.
60 Manual N/A Project Close-Out Is the project ready for final close-out?
required?
70 SAP CJ20N Set deliverable The input of this process is the closure of all phase/ WBS
WBS elements in element procurement process, approval of all timesheet
phase status to and final posting of financial transactions
Closed If all the above is done, the project engineer set the

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Process Steps
ID Type Transacti Name Description
on Code
deliverable WBS elements in the phase status to Closed.
Once this is done, no posting can be done on the WBS
elements /phase.
80 Manual N/A WBS Closed The WBS is closed and no further transactions can be
posted on it.
90 SAP CAT2, Approve any The input is the captured time records on the project.
CAT5, outstanding Project Engineer will ensure all the timesheets are
CN30, timesheets on all approved.
COFC relevant WBS The approved time records and the rejected time records
Elements that are corrected and resubmitted and then approved.
The approved time records are transferred automatically
to PS. The checks are done to ensure that there were no
residual errors in the transfer and that all the
confirmations are successful on the PS WBS side.
The output of this process is the cost confirmed on the PS
project.
100 SAP CJ20N Close all The input of this process is all the assigned values created
procurement on all by procurement such as the Purchase requisitions and the
relevant WBS Purchase Orders.
Elements All procurement done for the project needs to be closed
before the project engineer can close the project.
The output of this process is to close the project.
110 SAP FB50 Post final journals The input of this process is the posting of actuals done on
to all relevant WBS a project.
Elements For the project engineer to be able to close a project,
finance has to post journal to net off all accounts.
The output of this process is to perform final settlement
on the project.

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Process Steps
ID Type Transacti Name Description
on Code
120 SAP CJ88 Perform final The input of this process is the periodic settlement done
settlements in all monthly.
WBS Elements A final settlement has to be carried out on the project to
move values to Asset under construction.
The output of this process is to close the WBS elements or
phase.
130 SAP AIAB or Perform final The input of this process is the periodic settlement done
AIAU capitalization monthly.
A final settlement has to be carried out on the WBS
element /phase to move values to Assets and cost centres.
There should be no residual expenses on the project.
The output of this process is a fully settled project with no
values left on any AUC
140 SAP CJ20N Set all the WBS The input of this process is the closure of all phase/ WBS
elements to status element procurement process, approval of all timesheet
Closed and final posting of financial transactions.

150 SAP CJ20N Close the Project If all the above is done, the project engineer set the
project definition status to Closed. Once this is done, no
posting can be done on the project.
160 SAP Various Run final reports Reports are executed to display various status of the
project
170 Manual N/A Project Close The closure of the project is complete and no further
complete transactions can be carried out on it.

9.4.6 Process Requirement Table

The table below shows a mapping of the proposed solution to the business requirements and indicates any
GAPs that may require developments.

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Process Requirement Table


ID Requirement Solution Gap GAP Action
1 Support integration of cost plans Standard PS functionality No Gaps No Action
and schedules using the Work supports the use of WBS for Identified needed
Breakdown Structure (WBS). planning and executing projects.
2 Support effective cost planning Easy cost planning and No Gaps No Action
and setting of baseline costs for detailed cost element Identified needed
WBS Elements to enable tracking planning will be setup.
of costs against the approved
baseline.
3 Allow for indicators on WBS Indicators will be included on No Gaps No Action
Elements to separate CAPEX the user fields tab to hold this Identified needed
Elements from OPEX Elements. additional field

4 Enable integration of SAP PS and SAP EPC tool will implemented Gap Interface
Primavera P6 to allow for to interface P6 with SAP.
transfer of scheduled WBS dates
from Primavera to SAP.
5. Allow for tracking WBS Elements The status TECO will be used No Gaps No Action
that are technically complete or to indicate that a project is Identified needed
Ready for startup/use. ready for startup/use.
6 Support procurement of Procurement functions are fully No Gaps No Action
materials, contracting of services integrated into the SAP PS Identified needed
and development of new solution by standard.
contracts for various project
activities as required for
effective project delivery.
7 Support automatic budget Availability control in SAP PS will No Gaps No Action
checks on overall budget (IID or check for budget before Identified needed
FID) while raising commitments commitments or actual costs
or posting actual costs to the are posted to the project.
project.

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Process Requirement Table


ID Requirement Solution Gap GAP Action
8 Ensure that all purchase Am enhancement will be Gap Enhancement
requisitions are vetted by the implemented to meet this
Project Engineer responsible for requirement.
the project before it proceeds
for further approval.
9 Ensure all purchase The right approval levels for PRs No Gaps No Action
requisitions/purchase orders are and POs based on NLNG DFA Identified needed
approved in line with NLNGs will be been setup in SAP.
Delegated financial authority
(DFA) matrix before it proceeds
to the buyer for purchase order
processing.
10 Give Project Engineers improved PROMAN will be activated to No Gaps No Action
visibility into delivery dates for meet this requirement. Identified needed
materials ordered for projects.
11 Provide a system for planning Standard use of Internal No Gaps No Action
and actual confirmation of activities in SAP PS suffices for Identified needed
internal man-hours for the planning manhours.
various resources to be used on
a project.
12 Provide a system that supports Timesheets in SAP will be setup No Gaps No Action
capturing on internal manpower to meet this requirement. Identified needed
costs spent on projects via
effective time writing.
13 Allow for Project Engineers to Standard timesheet approval No Gaps No Action
vet and approve all timesheets functionality will be setup. Identified needed
for time booked on their
respective projects.
14 Provide for various average rates Activity types will be maintained No Gaps No Action
based on staff job band to be to allow o Identified needed
used in computing internal man-
hour costs for projects.

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Process Requirement Table


ID Requirement Solution Gap GAP Action
15 Support proper capturing of all Standard SAP functionality. No Gaps No Action
project costs at the end of each Business process must ensure Identified needed
period before month end reports that users perform necessary
are generated steps at month end.
16 Provide a system to properly Standard SAP functionality. No Gaps No Action
close out WBSs and projects Business process must ensure Identified needed
when they are competed that users perform necessary
steps when the WBS/Project is
ready for closure.

9.5 Locations where this Business Process is performed

This process will be applicable in locations where PD CAPEX projects are currently implemented. Major
locations include:
Locations
Location Country Function Number of Users Point of Contact
Bonny Island Nigeria PP TBD Project Services Unit (PPS)
Port Harcourt Nigeria PP TBD Project Services Unit (PPS)
Abuja Nigeria PP TBD Project Services Unit (PPS)
London Nigeria PP TBD Project Services Unit (PPS)

9.6 Operational Decisions or Logic within the Process

Project Engineers should view and vet all purchase requisitions that are raised on their projects first
and afterward standard DFA approval for purchase requisitions based on the Project Engineers
organization hierarchy (as opposed to the requestors hierarchy should apply).

All purchase requisitions and purchase orders have to be approved in line with NLNGs Delegate
Financial Authority (DFA) Matrix.

Purchase requisitions raised by persons other than the responsible Project Engineer for a project
should not be approved by authorized DFA approvers in the organization structure of the requestor
but by authorized DFA approvers in the organization structure of the Project Engineer.

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9.7 SOX and Legal Considerations and Company Specific Policies

This section is applicable to this process

9.8 Reference to Key Process Changes and Process KPIs

9.8.1 Key Process Changes

Key process changes relating to this process include:

Projects are now to be planned and executed using a Work Breakdown Structure which is derived
from a Hardware Function Discipline matrix for the project phase.

Approved IID and/or FID will be loaded and tracked against the project phase the budget was
approved for.

Approved baseline budget will be loaded on the project phase while approved contingency will be
loaded on the contingency WBS. A formal process will be in place to gain approval for the use of
contingency funds.

Individuals/resource groups who spend significant hours in planning, supporting or executing capital
projects will be required to maintain timesheets for hours spent on various projects.

Requests to procure material components, services (call off contracts) or to develop new contracts
will all be done in SAP via the Project Builder screen.

Project Engineers will be required to vet and approve all purchase requisitions raised against their
projects before such PRs proceed for further approvals based on DFA.

Budget checks happen automatically when raising commitments or posting actual costs against the
project budget in SAP PS. This will eliminate the need for manual budget checks by cost controllers.

Improved visibility on delivery dates for materials ordered for project use. Project Engineers can
track delivery and get alerted promptly when proposed delivery dates fall outside predefined
thresholds.

9.8.2 Process KPIs

KPI(s) to be measured in this process include:

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Budget Performance

Budget Performance : Cost Variance

% of projects with final costs within +-10% of appreciation

Percentage milestones achieved

Schedule performance

Project Delivery (RFU/RFSU)

9.9 Integration Points

The following are points of integration with other SAP modules:

Reports via SAP Business Intelligence (BI)/Business Warehouse (BW) modules.

Interface with SAP Business Planning and Consolidation (BPC) for extraction and consolidation of
annual budget values.

Management of user roles and segregation of duties (SOD) using SAP GRC Access control.

SAP Materials Management (MM)

SAP Financial and Controlling (FICO)

SAP Human Capital Management (HCM)

9.10 Potential Future Process Improvements

Consider the use of project stock to ensure proper tracking and logistical control of materials
procured for projects use. This will require the implementation of a lean warehouse by the PP/CPM
as a minimum before implementation of the process improvement.

9.11 Organization Structure Considerations

The organizational structure in SAP is an enterprise structure that reflects the way organization units are
grouped for legal, reporting or other specific business-related reasons or purposes. The SAP Portfolio and
Project Management and Project Systems module does not have its own organization structure but it uses
organization elements from other SAP Modules like SAP FICO (Finance and Controlling), SAP HCM (Human
Capital Management) and SAP MM (Materials Management).

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PD CAPEX projects shall use following Organization elements:


Organizational Elements Value Description
Controlling Area NLNG Nigeria LNG Group
Company Code NLNG Nigeria LNG Limited
Plant P001 Production Plant
Profit Centre NLNG NLNG Ltd - Corporate
Business Area 0001 Business Area 0001
Functional Area 3001 CAPEX
Purchasing Organization CP01 Central Purchasing
Project Currency USD United States Dollar

9.12 Master Data Considerations

Please refer to Appendix A of this document for Master Data considerations relating to this process.

9.13 System Configuration Considerations

9.13.1 Project Coding Mask

The project coding mask determines the coding convention for Project definition IDs and WBS IDs in SAP PS.
The format of the coding mask for all projects shall be: C-XX.00.000.XX.XX.XX.XX
Legend
Element Description
C The range represents CAPEX projects, both IMT and PD CAPEX.
-XX The first group of digits is used to identify the type of project, IT or PD
.00 This portion of the mask is used to represent the year of project registration
.000 This portion of the mask is used to represent a sequential number for the project
.XX This grouping represents the phase
.XX This grouping represents the function
.XX This grouping represents the discipline
.XX This group represents the Deliverable WBS

In section 4.13.4 of this document, the numbering logic for proposals and projects in SAP PPM was explained.
The project number assigned to an item in PPM after change process will be retained in the PS coding mask
for the project when a PS project is created for that Item.

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For example when an Item with a project ID CIT14005 creates a PS project, the project code for the PS
project definition will be C-IT.14.005.

9.13.2 Project Profile

The Project profile collects together a number of key profiles and settings which control the way the project
works within the scope of PS functionality.

The project profile configured for PD CAPEX projects is shown below:


Project Profile Description
ZPD001 PD Project Profile

The basic settings to be maintained for the project profile are captured in the tables below:
Basic Data Screen:
Parameter Value Description
Project Type 90 The project type is default to CAPEX.
Field key CAPEX WBS user fields (field key) CAPEX. This controls the user fields on
the WBS elements.
Version Profile NLNG001 The profile for a project version stipulates which objects will
appear in the project version, such as WBS elements, activities,
PRT, or costs.
Simulation profile ZNLNG001 This functionality is not used
Display options 1 Determines how WBS elements are displayed on the screen:
1 = based on the project number
2 = based on the short text
3 = based on the description
Level of detail 10 Determines the number of levels to be exploded in the hierarchical
structure.
Partner Determination ZPDC This setup the partner tab with the expected roles of Project
Procedure Engineer which is used to support the project based release
strategy for purchase requisitions.
All account assigned Blank This indicator will be ticked off otherwise every WBS element
elements becomes an account assignment element.
For PD CAPEX projects, only certain WBS elements are set as
account assignment elements and this is done through the

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Parameter Value Description


operational templates of the projects.
Only one root Ticked on This indicator will be ticked on to ensure that there is only one
WBS element at the top level (i.e. level 1)
Transfer to project Blank This indicator will be ticked off to prevent project definition
definition being created each time a WBS element is created.
Change documents Blank This indicator will be ticked off so that the system does not
create a change document for all changes to basic data in the WBS
structure (WBS elements and Project definitions)
Project summarization Ticked on This switch determines how project summarization occurs
via master data Ticked on = via master data characteristics
Ticked off = via classifications
SAP recommendation is to use master data characteristics.
iPPE Relationship with Blank This indicator refers to Integrated Product and Process Engineering,
a Project which is not applicable for NLNG Projects.

Validation screen:
Parameter Value Description
Project Def. Blank No validation on the project definition level
WBS Elements ZWBS001 The validation ZWBS001 is set to be done automatically. The
validation rules contain aspects such as ensuring that the level 5
WBS elements are either CAPEX or OPEX Deliverable WBS elements.
The validation also ensures that the CAPEX and OPEX Deliverable
WBS elements are correctly setup.
Autom Validation Tick on See above

Project Stock screen:


Parameter Value Description
Stock radio buttons Tick off The project stock option is not switched on.
Automatic Blank This functionality is not implemented for PD CAPEX projects
requirements
grouping

Status Management screen:


Parameter Value Description

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Parameter Value Description


Project definition The user statuses are not managed at the project definition level
status profile
WBS status profile ZPDWBS1 See the detail description at the WBS status profile configuration
section
Change Documents Tick on You use this indicator to determine whether change documents are
indicator created for the status of a project definition and WBS elements. If
this indicator is set in the project profile, the system sets the
indicator in all WBS elements assigned to a new project from the
project definition. Changes to the project profile have no influence
on existing projects.

9.13.3 Network Profile

The network profile contains default values which control the presentation of network objects (headers,
activities and elements, relationships, material components).

The values entered in the network profile are copied into the header, activities, and activity elements when
creating an operative network.

The network profile to be configured for PD CAPEX projects is shown below:


Network Profile Description
ZPD001 N/work prof. activity acct. assignment

The basic settings to be maintained for the network profile are captured in the tables below:

Network Parameters:
Parameter Value Description
Plant P001 The Network type is linked to the plant to which PD CAPEX procurement
Network type ZPD is linked. The plant is defined as part of the Enterprise Structure in the
SAP system.
Planner group Blank Planner group key identifies the group responsible for maintaining task
lists for a Production order for a particular plant. None are defined for
PD CAPEX projects in plant P001.
MRP controller group P01 Group defined to be responsible for MRP planning for a plant.

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Parameter Value Description


Select P01 to be selected for plant P001
Relationship view 3 This setting controls the sequence of displaying activity relationships on
the Relationships overview screen of network activities. 3 (mixed) is to
be selected.
Level of detail Blank This indicator sets the number of networks that can be linked with
relationships when using the MPX interface (a data exchange file format
for exchanging data with MS Project. This is not required for PD CAPEX
projects.
Number increment for Blank This determines the incremental value for numbering items in the
Components component overview screen.
Number increment for 0010 This specifies an incremental value for increasing the number of an
Activities activity within a network.
Check WBS dates W This key determines whether the activity dates lie within the
basic dates of the parent WBS element.
The warning given in event of a deviation allows the user the
option to change dates before saving
Overview variant Blank Leave blank, the variant is relevant for PP order inspection plans, or PM
maintenance task lists
Procurement The procurement indicator.
Field key Blank To be left blank
Version profile Blank To be left blank
Standard text key Blank Key which identifies a text that is frequently used to describe an activity.
Reservation/Requisition 1 Setting this indicator to 1 is set as a safety indicator that forces the
indicator Project Engineer to specifically set the Purchase Req/Reservation
indicator on the network activity before it is created.
Calculate Capacity Ticked When ticked on, this indicator specifies that capacity requirements are
requirements on calculated when the activity is saved.
Align Finish date Ticked If ticked on, this indicator specifies whether components should be
on staged for the scheduled finish date of the activity. If ticked off, the
components will be staged for the scheduled start date of the activity.
Entry tool Blank Leave blank, functionality not required.
Project summarization Blank If ticked on, network activities will be taken into account in Project
summarization. Leave the indicator off since summarization is not

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Parameter Value Description


applicable for PD CAPEX projects
Project summary Ticked This indicator is left on at SAP recommendation, to stipulate that
Master Data on summarization (if it is eventually applied) is via master data
characteristics. Classification will not be supported by SAP in the medium
term
iPPE Relationship with a Blank This refers to Integrated Product and Process Engineering, which is not
Project applicable for PD CAPEX at this point. Leave the indicator off.

9.13.4 Network Type

The network type contains information for controlling and managing networks. In the SAP System, the
network is a special form of order which has a structure in common with production (PP) and maintenance
(PM) orders. The network type determines a number of attributes and characteristics which are explained in
detail in the tables below.

Header:
Parameter Value Description
Plant P001 After a Network type has been configured, it must be assigned to
Network type ZPD the organizational unit Plant. Plant for Production Division is P001
and Network type ZPD will be setup for PD CAPEX projects.

Network type parameters:


Parameter Value Description
Strategy 02 The strategy will be to generate settlement rule to WBS element to
which the network belongs.
Default Rule PSP For CO settlement, the distribution rules are generated
automatically.
The default rule here determines how the distribution rule is
structured for the network. These default rules are predefined by
SAP.
PSP WBS elements will be selected from the drop down list, to
settle the networks to their WBS element parent.
Reduction strategy Blank No reduction strategies have been defined because the scheduling

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Parameter Value Description


is not done in the network. Scheduling will be done in Primavera P6
which will be interfaced with SAP PS.
Costing Variant ZPS02 These variants contain all the parameters for costing, and they
Planned determine the costing types, valuation variants, and date controls
Costing Variant Actual ZPS03 used in costing.
SAP standard default value PS02 and PS03 will be maintained.
Plan Cost Calculation Determine Use this default SAP value, so that planned costs are calculated
plan Costs automatically when a network is saved.
Workflow for PO Blank The workflow triggers for changes
changes
Activity Account Ticked on For the account assignment is carried out at activity level, and not at
Assignment the network header. This is also the default value.
Net Order Price Blank Leave blank if this indicator is set, then there can be no change in
the net price when the PR is converted to a PO.
Collective Requisition Ticked on Group one PR for a network. PRs are raised at network level

9.13.5 Parameters for Network Scheduling

Scheduling parameters are required to control how dates are determined when Networks are scheduled.
The basic parameters to be maintained for the Network scheduling are captured in the tables below:

Adjust scheduling screen:


Parameter Value Description
Adjust Dates Do not adjust basic These settings determine how the basic dates are adjusted during
in lead time dates, dep. reqmts a scheduling run. The SAP standard setting is maintained.
scheduling to operation dates

Scheduling Control Screen (Detailed scheduling):


Parameter Value Description
Scheduling Forwards Starting with the basic start date, the system calculates forwards
Type in time, then backwards from the forecast finish date or the
defined basic finish date.

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Parameter Value Description


This double process determines the earliest and the latest start
and finish dates for activities.
Start in the Blank Leave this field blank, so that the system automatically
Past overrides the scheduling type (previous field) and uses
"today" scheduling when the start date has been passed
and scheduling is triggered.
Automatic Tick On Tick this box on to cause networks to be automatically
Scheduling scheduled on saving.
If this indicator is off, the network gets a system status
"Dates not current" (NTUP) when changes affecting
scheduling are made and saved.
Automatic log Blank Keep this indicator blank so that the scheduling log is only
displayed when an error occurs during the scheduling run
Scheduling Blank Leave this field blank; NLNG PD CAPEX planning does not take
with breaks account of work break times.
Shift order Blank If selected, this indicator prevents actual dates being taken into
account in scheduling after an activity is partially confirmed and
the basic dates have changed.
Latest Staging Blank Keep this indicator blank so that materials requirements date is set
Date to the earliest finish date of the activity.

Scheduling Screen
Parameter Value Description
Scheduling Type Forwards See Parameters for Network scheduling - Scheduling Control
Start in the Past blank Screen (Detailed scheduling) for details.
Scheduling method WBS determines With this setting set to WBS determines dates, the earliest start
dates date of the activities (or in the case of backwards scheduling the
latest finish date) is determined by the basic dates of the WBS
elements to which the activities are assigned.
If set to Network determines dates, then the earliest start date of
the activities (or for backwards scheduling the latest finish date) is
determined by the basic dates of the network header.

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Parameter Value Description


Adjust basic date Tick on If ticked on, this indicator causes scheduled dates
determined in scheduling based on activities (bottom up
scenario) to be transferred to the basic dates of the WBS
element.
Automatic log blank See parameters for network scheduling
Shift order blank
Automatic Tick on
scheduling
Latest staging Tick on

9.13.6 Planning Profile

A Planning Profile is required in order to do Hierarchy cost planning for projects. The Planning profile is
assigned to the project profile.
Planning profile for PD CAPEX projects will be:
Planning Profile Description
ZPD001 PD Planning Profile

The following settings will be maintained for the Planning profile:


Manual Planning screen:
Parameter Value Description
Bottom-up planning Blank The indicator will be set to blank to avoid automatically
totaling up and thus overwriting any amount for the L1 WBS
element assigned by PPM.
Planning elements Tick on The indicator will be ticked on to ensure that planning can
only be done on WBS element in CJ40 when its planning
operative indicator is ticked on. Fields for WBS elements
with the planning indicator off are greyed out in CJ40

Time Frame screen


Parameter Value Description
Past 3 These values determine the number of years into the past
Future 5 or the future that planning can be done for, from the

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Parameter Value Description


Start blank project start year.
The Start indicator is left blank to ensure that the planning
start year is the same as the project start year.
Total values Ticked on With both of these indicators ticked on, both overall
Annual values Ticked on planning and annual planning fields become available in
CJ40

9.13.7 Budget Profile

The Budget profile enables budgeting and controls how availability control works in project budgets. The
following Budget profile will be configured for PD CAPEX projects.

Budget Profile Description


ZPD001 PD Budget Profile

Parameters to be set in this profile include:

Time Frame, Investment management screens:

Parameter Value Description


Past 3 These values determine the number of years into
Future 5 the past or the future that planning can be done for,
Start blank from the project start year
The Start indicator is left blank to ensure that the
planning start year is the same as the project start
year.
Total values Tick on With both of these indicators ticked on, both overall
Annual values Tick on planning and annual planning fields will be available in CJ30
Program type budget blank Since SAP Investment Management is not used at NLNG,
leave blank to ensure that WBS elements can receive
budget assignments from PPM.

Availability Control Screen:

Parameter Value Description


Activation Type 1 Select Automatic activation from the drop down list. Refer
to the relevant Functional specification documentation

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Parameter Value Description


defining how AVAC is automated at project creation.
Usage blank Leave blank
Overall Tick on This combination of Overall and Releases indicators triggers
Releases availability control for Annual Released budget.
Object currency blank This requirement is defined by the FICO Team.

Availability Control / Tolerance limits:

Availability control ensures that budgeted amounts assigned to WBS elements are not exceeded.
Transactions that will cause a budget to be exceeded are prevented from being executed. These tolerance
limits for availability control are used to identify budget overruns in a project at an early stage so that
appropriate steps to manage the budget can be taken. The following shall apply for PD CAPEX projects:

Budget Availability Control (AVAC) will be automatically activated for projects on creation.
Budget Availability check shall be activated for overall budget values.

Budget tolerance limits set for all transaction groups in the budget profile are shown in the table below:
Tolerance Limit Action
At 80% Budget consumption A warning message is triggered indicating that the budget will soon
be exhausted.
At 90% Budget consumption A warning message is triggered with a workflow message to the
person responsible for the project.
At 100% Budget consumption Error message is triggered preventing further budget consumption

9.14 Workflow

No custom workflows are applicable to this process.

9.15 Reports

Please refer to Appendix B for a full list of reports for this implementation.

9.16 Interfaces

Following external interface with SAP Project Systems module is required for this process:

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Interfaces
S/N Description Interface Applications Frequency/ Volumes Owner
Method
1 Enterprise Primavera P6 SAP BAPI Enterprise Project Monthly scheduled batch PP
SAP PS Connection (EPC) runs and Ad-hoc transfers
as required.

9.17 Data Conversion

Please refer to Appendix C of this document for details on data conversion objects for the entire solution.

Please note that historical data for Closed Out and Cancelled projects will not be migrated to SAP.

9.18 Enhancements

Please refer to Appendix D of this document for details on Enhancements to the standard solution required
to meet the stated business requirements for this solution.

9.19 Output (e.g. Forms)

No forms are required for this process


Output/Forms
ID Description Data Object Output Type Frequency Volumes Owner
(Form, EDI, etc)
1 N/A N/A N/A N/A N/A N/A

9.20 SOA (Service Oriented Architecture)

Service Oriented Architecture (SOA) is not applicable to this process

9.21 Third Party Solution

The third party tools or applications required in this process include:


Third Party Solution
ID Description Interface/Required, Development Owner
01 Livelink Livelink is NLNGs current Electronic Document Management System IMT
(EDMS). No development is required to interface this tool with SAP.

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Third Party Solution


ID Description Interface/Required, Development Owner
Documents that reside in Livelink can however be accessed from SAP
PPM by Checking-in document URLs from Livelink into SAP PPM.
02 DCAF tool The DCAF tool is used to generate the Project Controls and PP
Assurance Plan for each project phase. No interface with the SAP
system is required but information on the deliverables per phase
from the PCAP is required to perform certain step in the SAP system.
03 OAP tool The Opportunity Assurance Plan (OAP) tool is used to drive the First PP
Contact Meeting agenda as the attendees are required to populate a
series of input sheets used to construct the OAP. No interface with
the SAP system is required.

9.22 Authorizations

Please refer to Appendix E for the detailed authorization framework for the entire PPM/PS solution for PD
CAPEX projects.

9.23 Change Impact Summary

Change impact summary for this process is summarized in the table below:

Organizational Change Impact

Change Impact Old Way New Way Positive impacts to Negative


Summary Company or to impacts to
individual roles Company or
to individual
roles
Projects are not Projects will be Increased efficiency Nil
executed with a planned and executed in management of
detailed standard using a Work projects by linking
work breakdown Breakdown Structure project cost and
structure that that incorporates cost schedule via a
supports a linkage breakdown structure project structure.
between project cost and schedule
and schedule. information.

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Organizational Change Impact

Change Impact Old Way New Way Positive impacts to Negative


Summary Company or to impacts to
individual roles Company or
to individual
roles
Approved IID/FID is Approved IID and/or Improved budget Nil
loaded on the top FID will be loaded and management
node of the project tracked per project indicates clear
and is not tracked per phase. It will also be project expenditure
project phase. possible to track per project phase.
overall budget at the
top node of the
project.
No accurate way of Individuals/resource Improved accuracy Nil
capturing man-hours groups who spend in capture of man-
spent on projects for significant hours in hour costs for
time writing planning, supporting projects.
purposes. Arbitrary or executing capital
allocation of time projects will be
writing costs to required to maintain
projects. timesheets for hours
spent on various
projects.
Material requisitions, Requests to procure More efficient Nil
call off contracts and material components, Project
stock reservations are services (call off management.
raised in PACER at the contracts) or to Provision of a
moment. develop new contracts centralized platform
will all be done within for managing all
the PS project Project Execution
structure in SAP. activities aids Project
Engineers in
improving their
ability to manage
projects.

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Organizational Change Impact

Change Impact Old Way New Way Positive impacts to Negative


Summary Company or to impacts to
individual roles Company or
to individual
roles
Project Purchase Project Engineers will Better budget Nil
requisitions raised by be required to vet and control by Project
third parties do not approve all purchase Engineers.
come to the project requisitions raised
Engineers for against their projects
approval. before such PRs
proceed for further
approvals based on
DFA.
Manual budget Budget checks happen Faster project Nil
checks and budget automatically when execution leads due
clearance by finance raising commitments to reductions in
leads to delays in or posting actual costs layers of manual
procurement against the project controls in our
activities. budget in SAP PS. This current processes.
will eliminate the need
for manual budget
checks by cost
controllers.
Manual tracking of Improved visibility on Improved visibility Nil
procurement items delivery dates for on delivery dates
on order. materials ordered for enable Project
project use. Project Engineers better
Engineers can track track material
delivery and get delivery dates.
alerted promptly
when proposed
delivery dates fall
outside predefined
thresholds.

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9.24 Training Requirements

Details of the training requirements for the SAP PPM/PS solution for PD CAPEX projects are provided in
appendix F of this document.

9.25 Testing Requirements

Below are some key processes to be tested during the various testing cycles.
Testing
ID Describe Test Required
1 Create Work Package WBS
2 Run Budget Line Item Reports
3 Perform Easy Cost Planning
4 View Easy Cost Planning version report
5 Create settlement rules on WBS Elements
6 Create Internal Processing Activity for manpower requirements
7 Assign work center and work
8 Release the Internal Activity
9 Perform time entry in CATS
10 Release time entered in CATS
11 Approve released time in CATS
12 Transfer approved time to PS (Auto - 10mins interval)
13 Verify transfer of actual postings on the activity (CJI3)
14 Run COFC to review actual posting errors (if required)
15 Create Service Activity- Call off
16 Create Purchase Requisition
17 Run report to view created Purchase requisition
18 Run Budget Commitment Report
19 Create Service Activity- new contracts
20 Create Purchase Requisition
21 Run report to view created Purchase requisition
22 Create an Internal Activity for material procurement (non-stock)
23 Assign material components
24 Create a Purchase Requisition
25 Run report to view created Purchase requisition

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Testing
26 Run a budget Commitment Report
27 Create an Internal Activity for material procurement (outline agreement)
28 Assign material components
29 Create a Purchase Requisition
30 Run report to view created Purchase requisition
31 Run a budget Commitment Report
32 Run report to view created Material and Service Purchase Orders
33 Create Service entry
34 Accept service entry
35 Run a budget commitment actual report
36 Check approval and transfer of all period time entries
37 Check service acceptance completion for all period service entries
38 Perform direct FI Posting to WBS
39 Run a budget commitment actual report
40 Perform Settlements from WBS Level 2 to AuC
41 Perform Settlements from WBS Level 2 to Cost Centre
42 Perform Settlements from OPEX WBS Level 5 to Cost Centre
43 Create Project versions
44 Check approval and transfer of all time entries
45 Verify that all Purchase Orders (Material & Service) are closed
46 Verify that all FI Postings are completed
47 Perform individual WBS settlement
48 Perform Collective WBS settlements

9.26 Control Requirements

The controls needed for this process are:


Control Requirements
ID Describe Control Requirements
01 All Purchase requisitions are to be vetted by Project Engineers before proceeding to the relevant
approval parties based on DFA.
02 Purchase requisitions should not be created immediately Network activities are released. They should
be released deliberately by the Project Engineer when the PRs are ready to be created.

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03 It should be impossible to exceed the approved FID (or overall budget) for projects in SAP.
04 All timesheets must be approved by the responsible Project Engineer before the corresponding costs
of the timesheet is transferred to hit the project budget.

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10 Project Change Request Management Process

While project execution is in progress, there may be additional scope or unforeseen circumstances that lead
to additional costs which may mean that additional funds are required to the approved baseline funds for the
project. In some cases, the additional costs can be accommodated within the approved contingency amount
for the project whilst in other cases; additional appropriation is required from the responsible governance
forum. The Project Change Request Management process is designed to cater for either scenario to ensure
that projects that require additional funding to baseline approved costs have a structured process for
requesting, approving and managing the change. Projects that require additional funding will execute the
additional appropriation approval process to get the additional funding required into the project contingency
from where it can be distributed to the required phase. The change request management process only caters
for changes that have an impact on the approved baseline costs of the project. Changes to schedule baseline
will be managed outside SAP in Primavera P6.

10.1 Business Process Requirements

Business Process Requirements for this process include:


Business Process Requirements Project Change Request Management Process
Allow for effective tracking of change requests that have a cost impact in the SAP system.
Support a controlled and traceable process for loading and disbursement of contingency funds
approved for a project.

Business Process Requirements Additional Appropriation Approval Process


Ensure an effective process for requesting and approving additional appropriation on projects.

10.2 Business Process Description

10.2.1 Project Change Request Management Process (Cost Impact)

The change request management process is required when there is need for additional funds to baseline
cost. The Project Engineer determines and justifies the need for additional funds. The Cost Engineer
estimates the cost impact of the change and the Project Engineer checks to see if the additional cost is within
approved contingency or not. If the additional cost is within the approved contingency, he follows the
process for making use of his project contingency. If the additional cost is not with in the approved
contingency, a request for additional appropriation has to be made.

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Where the change requires a new scope which is not covered by the existing deliverable WBS Elements, a
new level 5 WBS will be created. Costing baselines in easy cost planning will be updated for the respective
WBS and a budget transfer document number will be maintained to link the budget movement from
contingency to phase to this change request.

10.2.2 Additional Appropriation Approval Process

Additional appropriation approval process requires the Project Engineer to maintain the required additional
amount in the Requested additional Appropriation financial view. Once amount is maintained, the Project
Assurance Engineer sets the item status to For Additional Appropriation Approved. As soon as the item
status is changed and saved a workflow is dispatched to the Workflow Approver and the proposal proceeds
to the DRB for review at the governance review meeting. The additional appropriation may be approved or
not approved in the governance meeting. If approved, the Workflow Approver confirms that the workflow
amount is in line with the DRB approval and approves the workflow else the workflow is rejected or sent
back to the Project Engineer to revise relevant deliverables in line with DRB comments.
Once the workflow is approved the Project Engineer confirms that the new total appropriation value is
automatically populated in the authorized appropriation field. The Project Assurance Engineer confirms that
item status is automatically set to Additional Appropriation Approved. The Project Engineer transfers
approved appropriation from PPM to PS and moves the additional appropriation from level 1 WBS to
contingency WBS. The funds can then be moved to the appropriate phase for project execution.

10.2.3 Process Characteristics Table

The Process characteristics table for this process is shown below:


Process Characteristics - Project Change Request Management process
Process Trigger Need for additional funds to approved baseline funds
Details of project change request or scope change
Process Input
Cost estimate for additional funding required
Approved change request with required additional funding distributed to
Process Output the appropriate project phase
Unapproved Change request
Process Owner Project Delivery Manager (PP)
Process Volumes Each project undergoes this process independently.
Process Frequencies Adhoc. Dependent on how often projects require additional funds

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Process Characteristics - Additional Appropriation Approval Process


Process Trigger Need for additional appropriation on a project
Process Input Cost estimate for additional funding required
Approved additional appropriation request with additional funds
Process Output transferred to SAP PS and distributed into the project contingency.
Unapproved additional appropriation request
Process Owner Project Delivery Manager (PP)
Process Volumes Each project undergoes this process independently.
Process Frequencies Adhoc. Dependent on how often projects require additional appropriation.

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10.3 Business Process Flow Diagrams


10.3.1 Project Change Request Management Process (Cost Impact)

Change Request Management Process (Cost Impact)

100 Identify
10 Need for 130 Maintain
appropriate 120 Update costing
additional funds to budget transfer
deliverable WBS for baseline version
baseline cost document
additional scope
Project Development Engineer / Project Engineer

Project cost forecasts;


Budget vs commitment/ Additional scope
actuals reports

30

90 Was
20 Determine need 60 Additional
justification 110 Create new 140 Move budget
and justification for Appropriation 150 Change Request
based on a new scope New scope deliverable WBS from contingency to
additional funds Approval implemented
or additional Element phase WBS element
Process
scope?

No

50
Is additional cost 70 Make request for
Yes
within approved use of contingency
contingency?
Cost Engineer

40 Estimate cost
impact of the
change
Engineer
Project

80 Approve request
to use contingency
funds

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10.3.2 Additional Appropriation Approval Process

Additional Appropriation Approval Process


PPM Administrator
(Project Assurance
Engineer)

160 Confirm that Item


30 Set Item Status 90 Confirm that 140 Re-Submit the status is automatically
to For Additional Item status is Workflow set to Additional
10 Start
Appropriation automatically set to 190 End
Appropriation Approved
Approval FID Approved
Project Development
Engineer / Project

20 Ensure that required


Engineer

70 Revise relevant 150 Confirm that new total


additional amount is
deliverables in line Appropriation value is
maintained in the Requested 130 Revise relevant
with DRB comments automatically populated in
Additional Appropriation deliverables in line
financial view the Authorized
with DRB comments
Appropriation field
(Section Head/
Lead Project

Supervisor)
Engineer

170 Transfer 180 Move additional


approved appropriation from
To be Reworked
Dispatched appropriation from level 1 WBS to
workflow Rework PPM to SAP PS Contingency WBS

Approved
(Project Assurance
Appropriation

Engineer)
Approver

100 Confirm that


60 Is proposal
80 Reject Financial workflow amount is 120 Approved or
Rejected or to be Rejected
Approval Workflow in line with DRB Rework?
Reworked?
approval
DRB / Change Mgt Panel

Not Approved
Change proposal
Approval Decisions 110
by DRB
50
40 Review Additional Additional
Appropriation request Appropriation
Approved
at Governance review Approved/Not
meeting Approved?

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10.4 Process Step Detailed Requirements and Solution

10.4.1Project Change Request Management Process (Cost Impact)

The processes are explained in the table below.


Process Steps
ID Type Transaction Name Description
Code
00 Start Business Additional The Change request Management Process starts
event Funds from the need for the additional funds to baseline
requirement cost.
10 Manual N/A Determine need The input to this step is the project cost forecast,
and justification the contingency left on the project, the budget vs
for additional actual cost, etc. The Project Engineer identifies the
funds scope change and registers it
The output of this step is the identified scope
change impact that will require funding.
20 Manual N/A Estimate cost The Cost Engineer estimates the cost impact of the
impact of the change.
change
30 Manual N/A Is additional The input to this step is the scope change and its
cost within cost impact.
approved Project Engineer is responsible to determine if the
contingency? additional cost is within approved contingency.
The output is either the request to apply
contingency to the baseline or to apply for
additional funding if the contingency is exhausted.
40 Manual N/A Additional If Project Engineer finds the Additional Cost is not
Appropriation within the approved contingency then the
Approval additional appropriation approval process should
Process be executed.
The output of this process if approval is obtained is
that the additional funds are made available in the

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Process Steps
ID Type Transaction Name Description
Code
project contingency. This means that the rest of
the process to move budget from contingency
must still be followed to obtain approval and then
to transfer budget from contingency to the
baseline.
60 Manual N/A Make request The input is the additional cost is within the scope
for use of of the contingency.
contingency If Project Engineer finds the Additional Cost is
within the approved contingency he will make a
request to use the contingency.
The output is the request to use contingency.
70 Manual N/A Approve The input is the request to use contingency.
request to use The request for use of the contingency funds is
contingency approved by the authorized person. The approved
funds change number for the budget movement is
registered.
The output is approval to use the budget and a
change approval number.
80 Manual N/A New scope or Project Engineer will define if the change is a new
additional scope or an additional scope
scope?
90 SAP CJ20N Identify The input is the scope change and it is identified as
appropriate additional scope on an existing work package.
deliverable WBS The project engineer identifies the existing work
for additional package to which the scope must be added and
scope add the scope as follows:
The Easy Cost Plan for the Deliverable WBS
element is updated with the additional line items.
The additional scope is added as a network activity
of the appropriate type i.e. internal activity if it is

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Process Steps
ID Type Transaction Name Description
Code
additional internal labour, internal activity with
material components if it is additional materials or
an additional service activity if it is an additional
service. If these elements are added after the
procurement of the original scope has already
started, it must be determined if the addition is
part of the original scope package and be included
in the original network or is it a completely
separate additional scope that will be procured
independently. The requisitions emanating from
this change will require release approval of the
originally approved requisition and the additional
change if it is part of the original scope work
package, or it will be approved on its own if it is a
separate work package. This is achieved by either
adding it into the existing network or in its own
network.
The output is the Deliverable WBS element
updated with the additional line items on the Easy
Cost Plan and the network activities that contain
the executable additional scope.
100 SAP CJ20N Create new The input is the scope change and it is identified as
deliverable WBS new scope on the baseline.
Element The project engineer defines the new work
package that must be added and add the scope as
follows:
Add the Deliverable WBS element onto the
appropriate Discipline in the project WBS.
The Easy Cost Plan for the Deliverable WBS
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Process Steps
ID Type Transaction Name Description
Code
obtained from the cost estimate for the change.
The new scope is added as a network activity of the
appropriate type i.e. internal activity if it is
additional internal labour, internal activity with
material components if it is additional materials or
an additional service activity if it is an additional
service. The rest of the process follows the normal
procurement or time writing process.
The output is the new Deliverable WBS element
created with the additional line items on the Easy
Cost Plan and the network activities that contain
the executable additional scope.
110 SAP CJR2 Update costing The input to the step is the updated baseline (ECP)
baseline version cost for new the deliverable WBS element.
The project engineer now updates the cost flow
baseline version with the change.
The output is the updated baseline cost flow for
the new or updated Deliverable WBS.
120 SAP CJ34 Maintain The budget transfer document is maintained
budget transfer integrated with the budget shift transaction. The
document document can be edited afterwards.
130 SAP CJ34 Move budget The input is the request to use contingency.
from The Section Head will approve request to use
contingency to contingency Funds. The approved change number
phase WBS is maintained on the document created by the
element budget movement.
The output is the contingency budget moved to the
baseline and available to raise commitments and
the document generated by the movement.
140 Manual N/A Change Request The budget is in the baseline and can be used to

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Process Steps
ID Type Transaction Name Description
Code
implemented raise commitments or confirm internal manhours
against.

10.4.2 Additional Appropriation Approval Process

Process Steps
ID Type Transaction Name Description
Code
00 Start Change Ensure that The input is the item on which the additional FID is
event Financial required required, the additional amount and the annual
Planning additional distribution of the amount.
view of amount is Project Engineer should ensure that required
Item maintained in additional amount is maintained in the Requested
the Requested Additional Appropriation Financial view.
Additional The output is the updated item with Requested
Appropriation Additional Appropriation Financial view.
financial view
10 SAP Change Set Item Status The input is the item maintained with the correct
item to For additional amount. The Project Assurance Engineer
Additional should set the item status to For Additional
Appropriation Appropriation Approval
Approval The output is the workflow that is started for the
Additional Appropriation Approval.
20 Manual N/A Review DRB/Change Management panel reviews the
Additional Additional Appropriation Request at governance
Appropriation review meeting.
request at
Governance
review meeting

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Process Steps
ID Type Transaction Name Description
Code
30 SAP Workflow Additional DRB/Change management Panel are responsible
Appropriation for Additional Appropriation decide to
Approved/Not Approved/Not Approve the Additional
Approved? Appropriation Request.
40 SAP Workflow Is proposal Workflow approver will Reject Financial Approval
Rejected or to Workflow
be Reworked?
40 SAP Workflow Reject Financial Workflow approver will Reject Financial Approval
Approval Workflow
Workflow
50 SAP Workflow Revise relevant Workflow approver will send back originator To
deliverables in Rework The item status will be reset. Project
line with DRB Engineer will revise relevant deliverables in line
comments with DRB comments.
The output will be the revised Item Additional
Appropriation Request.
70 SAP Change Set Item Status The input is the item has been updated and is
item to For ready to be submitted to the DRB again.
Additional Project Assurance Engineer should set the item
Appropriation status to For Additional Appropriation Approval
Approval to re-launch the approval workflow
The output is the approval workflow started on the
item.
80 SAP Workflow Confirm that The input is the DRB approval of the Additional
workflow Appropriation Request
amount is in line If the workflow is approved (DRB approved with or
with DRB without comments), the Workflow Approver will
approval confirm that workflow amount is in line with DRB
Approval.
The output is the routing of the workflow for

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Process Steps
ID Type Transaction Name Description
Code
rework or approval of the Approved Appropriation
Amount.
90 SAP Workflow Approved or Workflow Approver will Approve or send back for
Rework? Rework
100 SAP Workflow Revise relevant The input is that the item has been approved with
deliverables in comments and these must be incorporated with
line with DRB rework.
comments Workflow Approver will send back for Rework.
Project Engineer will revise the relevant
deliverables in line with DRB comments
The output is the item reworked with the
comments from the DRB.
110 SAP Workflow Re-Submit the The input to this step will be the reworked item.
Workflow The workflow will be resubmitted for approval.
The output will be the resubmitted workflow.
120 SAP Workflow Confirm that The input to this step is that the Workflow
new total Approver approves the Workflow
Appropriation Project Engineer will confirm that new total
value is Appropriation value is automatically populated in
automatically the Authorized Appropriation Field.
populated in the The output is that Authorized Appropriation
Authorized amount reflects the correct approved amount.
Appropriation
field
140 SAP Portfolio Confirm that The input to this step is that the workflow updated
Item Item status is the item status automatically.
automatically The Project Assurance Engineer will confirm that
set to item status is automatically set to Additional
Additional Appropriation Approved
Appropriation The output is the correct item status.

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Process Steps
ID Type Transaction Name Description
Code
Approved
150 SAP Item Transfer The input to this step is that the Authorized
Financial approved Appropriation is correct and the amount can be
Planning appropriation transferred to the PS project.
from PPM to The budget is transferred to SAP PS with CJ30 for
SAP PS the Overall and the Annual amounts, which will
overwrite the current original budget on the top
level WBS element of the project WBS.
The output will be the PS project updated with the
correct PS original budget reflecting the approved
Appropriation Request amount both in Overall as
well as Annual values.
160 SAP CJ30 Move additional Project Engineer will move the additional
appropriation appropriation from level 1 WBS to Contingency
from level 1 WBS.
WBS to
Contingency
WBS

10.4.3 Process Requirement Table

The table below shows a mapping of the proposed solution to the business requirements and indicates
any GAPs that may require developments.

Process Requirement Table


ID Requirement Solution Gap GAP Action
1 Allow for effective tracking of Movement of funds from No Gaps No Action
change requests that have a contingency to phase WBS Identified needed
cost impact in the SAP system. generates traceable accounting
documents in the system

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2 Support a controlled and Business process must ensure No Gaps No Action


traceable process for loading that stipulated processes are Identified needed
and disbursement of followed and approvals are
contingency funds approved obtained. Only authorized
for a project. persons can effect the
disbursement of contingency
funds in the SAP system
3 Ensure an effective process for Additional appropriation can only Gap Workflow
requesting and approving be obtained by entering funds in
additional appropriation on the requested appropriation
projects. financial view in PPM and then
triggering an approval workflow

10.5 Locations where this Business Process is performed

This process will be applicable in locations where PD CAPEX projects are currently implemented. Major
locations include:
Locations
Location Country Function Number of Users Point of Contact
Bonny Island Nigeria PP TBD Project Services Unit (PPS)
Port Harcourt Nigeria PP TBD Project Services Unit (PPS)
Abuja Nigeria PP TBD Project Services Unit (PPS)
London Nigeria PP TBD Project Services Unit (PPS)

10.6 Operational Decisions or Logic within the Process

All approved additional appropriation should be brought into the project as additional
contingency and then distributed to the appropriate phase WBS to keep proper track of the
original approved baseline and additional funding.

10.7 SOX and Legal Considerations and Company Specific Policies

This section is not applicable to this process

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10.8 Reference to Key Process Changes and Process KPIs

10.8.1Key Process Changes

Key process changes relating to this process include:

Original baseline budget and contingency budget will be loaded separately for tracking purposes.

A formal process is required to gain approval for the use of contingency budget approved for a
project.

10.8.2Process KPIs

KPI(s) to be measured in this process include:

Number of approved change requests for each project

Budget Performance

10.9 Integration Points

The following are points of integration with other SAP modules:

Reports via SAP Business Intelligence (BI)/Business Warehouse (BW) modules.

Management of user roles and segregation of duties (SOD) using SAP GRC Access control.

Financial and Controlling (FICO)

10.10 Potential Future Process Improvements

Consider implementing the claims/notifications system in SAP PS for requesting additional


funding due to a change request

10.11 Organization Structure Considerations

The organizational structure in SAP is an enterprise structure that reflects the way organization units are
grouped for legal, reporting or other specific business-related reasons or purposes. The SAP Portfolio and
Project Management and Project Systems module does not have its own organization structure but it

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uses organization elements from other SAP Modules like SAP FICO (Finance and Controlling), SAP HCM
(Human Capital Management) and SAP MM (Materials Management).
PD CAPEX projects shall use following Organization elements:
Organizational Elements Value Description
Controlling Area NLNG Nigeria LNG Group
Company Code NLNG Nigeria LNG Limited
Plant P001 Production Plant
Profit Centre NLNG NLNG Ltd - Corporate
Business Area 0001 Business Area 0001
Functional Area 3001 CAPEX
Purchasing Organization CP01 Central Purchasing
Project Currency USD United States Dollar

10.12 Master Data Considerations

Please refer to Appendix A of this document for Master Data considerations relating to this process.

10.13 System Configuration Considerations

System configuration requirements relating to this process have been covered in previous sections. See
section 5.13.1 for PPM financial views and section 9.13 for PS related configuration.

10.14 Workflow

The following custom workflow is required for the Additional Appropriation Approval process:
Workflow
ID Description Data Object Engaged Parties Owner
Z_PD_AD_APP_APPRVL Additional Appropriation Item Status Project Engineer, PP
Financial Approval Project Assurance
Workflow for PD CAPEX Engineer, Workflow
projects Approver

Standard PPM notifications will apply when there are changes to the Item status and Decision point
statuses.

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10.15 Reports

Please refer to Appendix B for a full list of reports for this implementation.

10.16 Interfaces

No interfaces are required for this process


Interfaces
S/N Description Interface Applications Frequency/ Owner
Method Volumes
1 N/A N/A N/A N/A N/A

10.17 Data Conversion

Please refer to Appendix C of this document for details on data conversion objects for the entire solution.

Please note that historical data for Closed Out and Cancelled projects will not be migrated to SAP.

10.18 Enhancements

Please refer to Appendix D of this document for details on Enhancements to the standard solution
required to meet the stated business requirements for this solution.

10.19 Output (e.g. Forms)

No forms are required for this process


Output/Forms
ID Description Data Object Output Type Frequency Volumes Owner
(Form, EDI, etc)
1 N/A N/A N/A N/A N/A N/A

10.20 SOA (Service Oriented Architecture)

Service Oriented Architecture (SOA) is not applicable to this process

10.21 Third Party Solution

The third party tools or applications required in this process include:

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Third Party Solution


ID Description Interface/Required, Development Owner
01 Livelink Livelink is NLNGs current Electronic Document Management IMT
System (EDMS). No development is required to interface this tool
with SAP. Documents that reside in Livelink can however be
accessed from SAP PPM by Checking-in document URLs from
Livelink into SAP PPM.
02 DCAF tool The DCAF tool is used to generate the Project Controls and PP
Assurance Plan for each project phase. No interface with the SAP
system is required but information on the deliverables per phase
from the PCAP is required to perform certain step in the SAP
system.
03 OAP tool The Opportunity Assurance Plan (OAP) tool is used to drive the PP
First Contact Meeting agenda as the attendees are required to
populate a series of input sheets used to construct the OAP. No
interface with the SAP system is required.

10.22 Authorizations

Please refer to Appendix E for the detailed authorization framework for the entire PPM/PS solution for PD
CAPEX projects.

10.23 Change Impact Summary

Change impact summary for this process is summarized in the table below:

Organizational Change Impact

Change Old Way New Way Positive impacts to Negative


Impact Company or to impacts to
Summary individual roles Company or
to individual
roles
On approval of IID/FID, In the new WBS Better management Nil
the total approved structure for projects, of contingency
amount (baseline plus the baseline budget is funds would

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Organizational Change Impact

Change Old Way New Way Positive impacts to Negative


Impact Company or to impacts to
Summary individual roles Company or
to individual
roles
contingency) is loaded loaded on the improve budget
on the project account corresponding phase management for
and is available for while the contingency projects and
spend immediately. amount is loaded potentially reduce
separately on a budget overruns.
contingency WBS.
No formal process of A formal process of Structured process
approving the use of requesting and for approval of
contingency funds is in approving the use of project contingency
place. contingency funds will improves visibility
be in place. There will into the use of
be traceability on contingency and
approved original general improves
baseline amount and budget
additional management for
contingency projects in NLNG.
consumed per project
phase.

10.24 Training Requirements

Details of the training requirements for the SAP PPM/PS solution for PD CAPEX projects are provided in
appendix F of this document.

10.25 Testing Requirements

Below are processes to be tested during the various testing cycles.


Testing
ID Describe Test Required

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Testing
01 Create new deliverable WBS Element

02 Update costing baseline version

03 Move budget from contingency to phase WBS element

04 Update Financial Planning (Requested Additional Appropriation)

05 Additional Appropriation Workflow

06 Transfer approved appropriation from PPM to SAP PS

07 Move additional appropriation from level 1 WBS to Contingency WBS

10.26 Control Requirements

The controls needed for this process are:


Control Requirements
ID Describe Control Requirements
01 Additional appropriation which exceeds the total IID/FID originally approved must be approved by
the appropriate governance body and the funds approved via SAP PPM before transfer to PS
02 Contingency WBS will not be account assigned. To utilize the projects contingency, the required
amount must be moved from the contingency WBS to the required phase WBS.
03 Baseline budget approved and approved contingency should be kept separately in level 2 WBS in
SAP PS. A formal process will be adopted to move contingency funds into the project phase for
expenditure.

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11 Appendix A: Master Data Considerations

11.1 Standard Portfolio Structure

The proposed portfolio structure for PD CAPEX Projects is shown below:

PD CAPEX
Portfolio Portfolio Level

PD CAPEX
Bucket level 1
Projects

Infrastructure Pipeline/GTS Bucket


Plant Projects
Projects Projects Level 2

Plant Projects Plant Projects Infrastructure Infrastructure


GTS 1 Projects
Process Electrical Projects - IA Projects - PH

Infrastructure
Plant Projects Plant Projects Infrastructure Bucket
Projects - GTS 6 Projects
Utilities Offsites Projects - RA Level 3
Community

Plant Projects Infrastructure Condensate


Instrumentation Projects - Marine Handling Projects

Figure 11.1 SAP Portfolio Structure PD CAPEX projects

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11.2 Alternative Portfolio Hierarchy

The proposed classification hierarchy structure for PD CAPEX Projects is shown below:
This structure will be used to track the contribution of project in the portfolio to NLNG strategic
objectives.
PD CAPEX
Projects -
Classification
Hierarchy

License to Operate Business Opportunity

Statutory Incremental
HSE
requirements Production

Other safety
Asset Integrity
improvements

Staff value Sustainable


proposition Development

Figure 11.2 Alternative Portfolio Hierarchy PD CAPEX projects

11.3 Standard Work Breakdown Structure

The work breakdown structure for PD CAPEX projects consist of five levels as defined below:
Level 1 WBS Project

Level 2 WBS Phases


Identify
Assess
Select
Define
Execute

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Level 3 WBS Functions


Project Management
Engineering and Design
Procure
Construction and Commissioning

Level 4 WBS Disciplines


Civil
Mechanical
Electrical
Instrumentation and Control

Level 5 WBS Deliverable WBS Elements (Added by the Project Engineer based on project scope)

Project

Phase Contingency

Function 1 Function 2

Discipline 1 Discipline 2 Discipline 3

WBS WBS
WBS Expense
Deliverable 1 Deliverable 2

Figure 11.3 Work Breakdown structure for PD CAPEX projects

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The full WBS structure is illustrated in a tabular form below:

Level 1 WBS Level 2 WBS Level 3 WBS Level 4 WBS Level 5 WBS
Project Identify
Assess Project Management Project Management
Engineering and Design Civil
Mechanical
Electrical
Instrumentation and Control
Procure Civil
Mechanical
Electrical
Instrumentation and Control
Construction and Commissioning Civil
Mechanical
Electrical
Instrumentation and Control
Select Project Management Project Management
Engineering and Design Civil
Mechanical
Electrical
Instrumentation and Control
Procure Civil
Mechanical
Electrical
Instrumentation and Control
Construction and Commissioning Civil
Mechanical
Electrical
Instrumentation and Control
Define Project Management Project Management
Engineering and Design Civil
Mechanical
Electrical
Instrumentation and Control
Procure Civil
Mechanical
Electrical
Instrumentation and Control
Construction and Commissioning Civil
Mechanical
Electrical
Instrumentation and Control
Execute Project Management Project Management
Engineering and Design Civil
Mechanical
Electrical
Instrumentation and Control
Procure Civil
Mechanical
Electrical
Instrumentation and Control
Construction and Commissioning Civil
Mechanical
Electrical
Instrumentation and Control

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12 Appendix B: Key Business Reports Inventory

12.1 Bespoke Business Report Requirements List

The following list of reports will be considered by the SAP PPM/PS team for possible development. It
should be noted that it may not be possible to build some of these reports in SAP and this will be
communicated to the PP team.
Reports
Data
Ref No Description SAP Report Type Relevant KPI Owner
Element
PD_PPM BI/BW Dashboard Estimate Growth,
Pre-DG3 One Pager Report TBD PP
PS_001 Report Schedule, HSSE
PD_PPM BI/BW Dashboard Cost, Schedule,
Post-DG3 One Pager Report TBD PP
PS_002 Report HSSE

In addition to the list of reports above, consideration will be given to the development of reports that
measure the KPIs in the table below (as adopted from appendix 6 of the NLNG PMM). It should be noted
that the development of reports will not be possible where the data required for the reports is not stored
in the SAP system. The PP team will be notified where reports cannot be built for the KPIs.

Project KPIs (Measure Project Portfolio performance)


KPI Focus Area Description Definition Timing
HSE-1 Competitiveness TRCF TRCF for Projects YTD Post DG4

HSE-2 Competitiveness First Aid Rate Nr of First Aid Cases / Post DG4
10.000 Construction
hours
Cost- 1 Predictability Budget Performance VOWD (Actual Pre- and Post
Expenditure) DG4
/Planned expenditure
Cost- 2 Predictability Budget Performance : CV = Earned Value Pre- and Post
Cost Variance (EV) Actual Cost DG4
(AC)

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Project KPIs (Measure Project Portfolio performance)


KPI Focus Area Description Definition Timing
Cost- 3 Predictability % of projects with Projects with final costs Post DG4
final costs within +- within +-10% of FID
10% of appreciation Cost Estimate/Total
number of projects
Schedule-1 Competitiveness % schedule driven % Schedule Driven Pre- and Post
projects Projects/Total Number DG4
of Projects
Schedule-2 Predictability % Projects on time Number of Projects Post DG4
post DG4 within x months of FID
target (Execution

Schedule-3 Predictability Nr of projects h d l of


Number )/ Projects
l Pre-DG4
reaching DG4 within x months of
within +- x months target for reaching

Quality-1 Competitiveness Front End Loading FEL/Duration at DG3 Pre-DG4


Duration or DG4 vs. approved
FEL Duration
Quality-2 Competitiveness Customer % Projects that meet Post DG4
satisfaction expectations as per
customer quality

12.2 Required PS Report List

Standard PS reports
S/N Transaction Code Report Name
Structures
1 CJ08 Display Project Definition
2 CJ13 Display WBS Element
3 CN42N Overview: Project Definitions
4 CN43N Overview: WBS Elements
5 CN46N Overview: Networks
6 CN47N Overview: Activities/Elements

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Standard PS reports
S/N Transaction Code Report Name
7 CN53N Overview: Milestones
8 CJ2C Display project planning board
9 CJ93 Display Standard WBS
10 CN23 Display Network
11 CJ22 Display Basic Dates
12 CJ24 Display Forecast Dates
13 CJ26 Display Actual Dates
14 CJ41 Display Project Plan
15 CJ03 Display Work Breakdown Structure
16 CN28 Display Network Confirmations
Cost Planned Based Report Hierarchical
17 S_ALR_87013532 Plan/Actual/Variance
18 S_ALR_87013533 Plan/Actual/Commitment/Remaining Planned/Assigned
19 S_ALR_87013534 Plan 1/Plan 2/Actual/Commitments
20 S_ALR_87013535 Actual in CO Area/Object/Transaction Currency
21 S_ALR_87013536 Plan/Actual/Down Payment as Expense
22 S_ALR_87013537 Commitment Detail
23 S_ALR_87013538 Project Version Comparison: Actual/Plan
24 S_ALR_87013539 Project Version Comparison: Plan
25 S_ALR_87013540 Forecast
26 S_ALR_87013541 Project Interest: Plan/Actual
27 S_ALR_87100185 Actual Costs for Each Month (Current Fiscal Year)
28 S_ALR_87100186 Planned Costs for Each Month (Current Fiscal Year)
29 S_ALR_87100187 Commitments for Each Month (Current Fiscal Year)
30 S_ALR_87100188 Cumulated Actual Costs
31 S_ALR_87100190 Plan/Actual/Variance for Each Project and Person
Responsible
Cost Plan based Report by Cost Element
32 S_ALR_87013542 Actual/Commitment/Total/Plan in CO Area Currency
33 S_ALR_87013543 Actual/Plan/Variance Absolute/Variance %
34 S_ALR_87013544 Actual/Plan Comparison: Periods

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Standard PS reports
S/N Transaction Code Report Name
35 S_ALR_87013545 Period Comparison Actual
36 S_ALR_87013546 Commitments: Period comparison
37 S_ALR_87013547 Period Comparison Plan
38 S_ALR_87013548 Statistical Key Figures/Periods
Budget / Cost-Related Reports
39 S_ALR_87013556 Funds Overview
40 S_ALR_87013557 Budget/Actual/Variance
41 S_ALR_87013558 Budget/Actual/Commitmt/Rem.Plan/Assg
42 S_ALR_87013560 Budget updates
43 CJ31 Display Project Original Budget
44 CJ3B Display Budget Document
Line Item Reports
45 CJI3 Actual Costs/Revenues
46 CJI5 Commitments
47 CJI4 Plan Costs/Revenues
48 CJI8 Budget
49 CJID Line Item Settlement
Progress Analysis Report
50 CN48N Confirmations
51 ACOMPXPD Progress Tracking Evaluations
52 CNE5 Structure Overview
53 S_ALR_87015124 Project Hierarchy
54 S_ALR_87015125 Details
55 ACOMPXPD Progress Tracking Evaluations
Material Report
56 CN52N Material Components
57 MD04 Stock/Requirements
58 MB25 Reservations
59 ME5J Purchase Requisition For Project
60 ME5K Purchase Requisition For Account Assignment
61 ME2J Purchase Order For Project

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Standard PS reports
S/N Transaction Code Report Name
62 ME2K Purchase Order For Account Assignment
63 MBBS Display valuated special stock
64 MD04 Display Stock/Requirements Situation
Overview Reports
65 CN42N Project Definitions
66 CN43N WBS Elements
67 CN46N Networks
68 CN47N Activities
Resources Reports
69 CN50N Overview: Capacity Requirements
70 CNR3 Display Work Center
71 CAT3 Time Sheet: Display Times
72 CMP9 Workforce Planning Report

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13 Appendix C: List of Data Conversion Objects

The table below shows the full list of Data conversion objects required for PD CAPEX projects
Conversions*
ID Conversion Source Conversion Method # of Objects to be Owner
Object converted
1 Portfolio and Excel This will be manually TBD PP
bucket Spreadsheet created.
structure
2 Item per bucket Excel These will be created using TBD PP
Spreadsheet the upload program to
create the proposals.
3 Current phase Excel spread This is used to determine to TBD PP
sheet which Decision Gate the
item must be processed
manually and in which level
2 WBS in SAP PS the
opening balance actual
costs will be loaded and the
open purchase orders be
account assigned.
4 Approved Excel spread These values will be loaded TBD PP
Appropriation sheet when the item proposals
are created in step 2.
5 Financial Excel spread These values will be loaded TBD PP
Planning values sheet using programs but is not
Cost Estimate critical for go live and can
be done as part of the post
go-live addition of the
planning to the projects
6 Capacity Excel spread These values will be loaded TBD PP
Category Group sheet using programs but is not
Values critical for go live and can

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Conversions*
ID Conversion Source Conversion Method # of Objects to be Owner
Object converted
be done as activity of the
post go-live addition of the
planning to the projects
7 PS Projects Excel Project Definitions / WBS TBD PP
Spreadsheet with the L1 to L5 WBS
Elements and network
activities shall be created
from PPM items when the
items are transferred with
the manual process of item
change processing.
8 Project Budget Excel Approved Appropriation TBD PP
Spreadsheet Amounts loaded when the
items are created in PPM,
will be further transferred
through the manual
processing of the transfer
to PS from PPM Item so
that values can be seen in
transaction CJ30.
Overall Budget values
should further be cascaded
down to L2 WBS Elements
in PS
9 Project Budget Excel Annual Budget to be loaded TBD PP
Redistribution Spreadsheet in PPM item via BPC which
(within PS will be further transferred
module) to PS from PPM Item so
that values can be seen in
transaction CJ30.

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Conversions*
ID Conversion Source Conversion Method # of Objects to be Owner
Object converted
10 Project Easy Excel The Easy Cost Planning for TBD PP
Cost Plan value Spreadsheet the PS Projects will be done
as an activity of the post
go-live addition of the
planning to the projects
11 Project PACER Open Project Purchase TBD PP
Purchase Requisitions shall be
Requisitions created using programs and
assigned to appropriate
WBS Elements / Network
Activities
12 Purchase PACER Open Project Purchase TBD PP
Orders Orders shall be created
using programs and
assigned to appropriate
WBS Elements / Network
Activities
13 Project Actual SUN SYSTEMS Actual costs be posted to TBD PP
costs appropriate Level 5
Deliverable WBS Element
as a financial posting

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14 Appendix D: List of Enhancements

The table below shows the full list of Enhancements to the standard SAP system to be implemented for
the PPM/PS scope for PD CAPEX projects.
Enhancements
ID GAP ID Data Functional Gap Alternative Reason Owner
Object SAP
Standard
1 P1_PPMPS_GAP_107 Portfolio Populating the N/A Functional PP
(PROPOSAL ID should Item appropriate CDF Gap solution
be filled in custom field with the Proposal is not
during Change Process) ID after Change available as
Process standard in
PPM 5.0
2 P1_PPMPS_GAP_108 Portfolio Sequential Portfolio Manual Functional PP
(Automatic Sequential Item/Proj Item numbering entry of Gap solution
Numbering of Portfolio ect with reference to Portfolio is not
Items. Will now include systems PS project Coding Item available as
change of Item ID mask project standard in
during change Process numbers PPM 5.0
to match the PS coding
mask)
3 P1_PPMPS_GAP_136 Portfolio Changes for Traffic N/A Functional PP
(Changes for Traffic Item Lights Gap solution
Lights) is not
available as
standard in
PPM 5.0
4 P1_PPMPS_GAP_138 Portfolio Customer Defined N/A Functional PP
(Customer Defined Item Fields for PPM Gap solution
Fields for PPM Items) Items is not
available as
standard in

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Enhancements
ID GAP ID Data Functional Gap Alternative Reason Owner
Object SAP
Standard
PPM 5.0
5 P1_PPMPS_GAP_139 Portfolio Automatic update N/A Functional PP
(Automatic update for Item for the Item Priority Gap solution
the Item Priority field) field is not
available as
standard in
PPM 5.0
6 P1_PPMPS_GAP_141 Portfolio Active Items tab N/A Standard SAP PP
(Active Proposals tab Item should not show PPM system
contents) Dashboar the Proposals treats
d proposals as
items
7 P1_PPMPS_GAP_142 Portfolio Dates Functional PP
(Date Synchronization Item/Proj Synchronization Gap solution
across PPM/PS ect between PPM/PS is not
modules) Systems modules available as
standard in
PPM 5.0
8 P1_PPMPS_GAP_143 Portfolio Stake holders N/A A search help PP
(Originator's Item Details does not
Department List have the
selection) option to
provide
search help
for HCM
related fields
on the Item
screen.
9 P1_PPMPS_GAP_144 Portfolio Automatic Linkage N/A In Standard PP
(Automatic Linkage of Item of Item & PS Project SAP PPM

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Enhancements
ID GAP ID Data Functional Gap Alternative Reason Owner
Object SAP
Standard
Item & PS Project Definition system the
Definition) object link
creation
between
Item & PS is a
manual
process

10 P1_PPMPS_GAP_145 Portfolio Annual Budget N/A Functional PP


(Budget Notification for Bucket Consumption Gap solution
Bucket) Notification at is not
Bucket available as
standard in
PPM 5.0
11 P1_PPMPS_GAP_146 Reviews Sequential Manual Functional PP
(Sequential Numbering Numbering for entry of Gap solution
for Reviews) Reviews Review is not
numbers available as
standard in
PPM 5.0
12 P1_PPMPS_GAP_149 Portfolio Hide tabs on Item N/A Functional PP
(Hide tabs on Item Item objects Gap solution
objects) is not
available as
standard in
PPM 5.0
13 P1_PPMPS_GAP_152 Portfolio The Approved N/A The overall PP
(Overall Budget Item/Proj Appropriation Budget
Updation from PPM to ect should be approved
PS) Systems transferred to should be

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Enhancements
ID GAP ID Data Functional Gap Alternative Reason Owner
Object SAP
Standard
Project System transferred
from PPM to Project
System
14 P1_PPMPS_GAP_153 Portfolio Whenever a N/A Functional PP
(Auto Version Creation Item decision point is Gap solution
on DP complete) completed, a is not
portfolio item available as
version is to be standard in
created with a PPM 5.0
specific naming
convention
15 P1_PPMPS_GAP_154 Project Automate T-code N/A Since the PP
(Automate CJBN) Systems CJBN to activate step is
Availability Control manual, the
user has to
remember to
execute the
transaction
every time a
PS project is
created
16 P1_PPMPS_GAP_155 Project Lock L1 WBS N/A To stop the PP
(Lock L1 WBS Element Systems element budget Budget
in Budget Transaction) entry field for changes in
Annual and Overall PS. Any
values in budget
Transactions CJ30, changes
CJ37 & CJ38 should come
from PPM
17 P1_PPMPS_GAP_157 Portfolio Change of Financial N/A Functional PP

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Enhancements
ID GAP ID Data Functional Gap Alternative Reason Owner
Object SAP
Standard
(Restrict Financial Item Planning in PPM is Gap solution
Planning based on Role) to be restricted is not
based on the PFCG available as
role standard in
PPM 5.0
18 P1_PPMPS_GAP_159 Portfolio Mass Budget N/A Functional PP
(Mass Budget Bucket Distribution Gap solution
Distribution) is not
available as
standard in
PPM 5.0
19 P1_PPMPS_GAP_160 Initiative Hide Initiative Tabs N/A SAP PPM PP
(Hide Initiative Tabs) standard
customising
does not
provide the
option to
hide the
Classification
Hierarchy
table.
20 P1_PPMPS_GAP_161 Initiative Auto population of N/A Functional PP
(Auto population of initiative start dates Gap solution
initiative start dates) is not
available as
standard in
PPM 5.0
21 P1_PPMPS_GAP_162 Portfolio Re-baselining of N/A SAP PPM PP
(Re-baselining of Item Planned Dates standard
Planned Dates) customising

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Enhancements
ID GAP ID Data Functional Gap Alternative Reason Owner
Object SAP
Standard
does not
provide the
option to
make the
fields read
only based
on the status
22 P1_PPMPS_GAP_163 CATS CATS Worklist N/A SAP provides PP
(CATS Work list should should display the the
display the Project Project Details information
Details) along with the of the
Activity Activity and
information. Activity type
in the CATS
worklist by
standard but
details of the
Project
Information
23 P1_PPMPS_GAP_164 Bucket & Virement Implement Functional PP
( Virement ) Portfolio functionality should Virement in Gap solution
Item be implemented for SAP BPC is not
Item and Bucket available as
person responsible standard in
should be able to PPM 5.0
approve it
24 P1_PPMPS_GAP_165 PPM Dashboard for Maintain Functional PP
( Financial Planning ranking the Projects financial Gap solution
Dashboard ) and adjusting the planning is not
Financial Values for values available as

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Enhancements
ID GAP ID Data Functional Gap Alternative Reason Owner
Object SAP
Standard
multiple items in individually standard in
single screen PPM 5.0
25 P1_PPMPS_GAP_166 PPM Firefighter role will N/A Functional PP
( Firefighter Role have special Gap solution
changes ) privilege such as is not
deletion of objects, available as
revert to previous standard in
DP and execute all PPM 5.0
automatic
processing
manually as well
26 P1_PPMPS_GAP_167 Portfolio Actual finish date of N/A Functional PP
( Auto population of Item last DP should be Gap solution
Item actual finish ) populated as Item is not
Actual Finish date available as
standard in
PPM 5.0
27 P1_PPMPS_GAP_169 Portfolio The Approved N/A Functional PP
( Clear Annual Budget Item Annual Budget in Gap solution
for Previous years ) the Financial is not
Planning of Item available as
should be cleared standard in
for the previous PPM 5.0
years when budget
is uploaded from
SAP BPC
28 P1_PPMPS_GAP_170 ( PPM Create new BCV N/A The queries PP
BCV ) queries and views which we
for Financial data want to
create is not

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Enhancements
ID GAP ID Data Functional Gap Alternative Reason Owner
Object SAP
Standard
available in
standard list
of queries
29 P1_PPMPS_GAP_172 Portfolio MOC number and Populate Functional PP
( Auto Population of Item the Project Status the fields Gap solution
MOC Number and Fields should be manually is not
Project Status ) auto populated available as
standard in
PPM 5.0
30 P1_PPMPS_GAP_174 Portfolio Originating N/A Functional PP
( Originators details Item Department and Gap solution
grey out at DP close ) Originators Name is not
should grey out on available as
first DP close standard in
PPM 5.0
31 P1_PPMPS_GAP_175 Portfolio The Item status Set the Functional PP
( Release Item on PS Item should be set to status Gap solution
Project Creation ) Released on PS manually to is not
Project creation Released available as
after PS standard in
Project PPM 5.0
creation
32 P1_PPMPS_GAP_176 Portfolio Questionnaires Check the Functional PP
( Questionnaires to Item should be Questionnai Gap solution
mandatory before populated before res is not
Change Process ) Change Process manually available as
before standard in
Change PPM 5.0
Process
33 P1_PPMPS_GAP_177 Portfolio Calculate the RAM Develop Functional PP

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Enhancements
ID GAP ID Data Functional Gap Alternative Reason Owner
Object SAP
Standard
( RAM ) Item value and ID of the RAM in Gap solution
cell from Xcelcius is not
Questionnaire available as
standard in
PPM 5.0
34 P1_PPMPS_GAP_178 PS Mapping between N/A Solution not PP
(Asset Assignment the Work Packages available in
Enhancement & Report and the Standard SAP
) Deliverables to PS
support the
Capitalization

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15 Appendix E: PPM/PS Authorization Framework

15.1 PPM Authorization Framework Definition

Control of authorizations in PPM will be implemented using the Access Control List (ACL) functionality in
SAP PPM. Access control lists (ACLs) in Portfolio Management are used to define authorizations at object
level.
Project Assurance Engineers create proposals in the SAP system and will always have Admin authorization
on projects. They will be able to assign authorizations to other users also.

PPM Administrators (Project Assurance Engineers) will be able to do the following: -


- Create objects under buckets (Items, Initiatives, etc ).
- Assign authorizations to Project Engineers
- Update on the Item attributes
- Creation of PS Projects via template
- Change Process to select Roadmap
- Workflow Approval for IID/FID
- Update Decision Point attributes

Project Engineers will have access to:-


- Update Financial Planning
- Transfer the Approved Overall Budget to PS Project
- Update Planned Decision Date on Decision Point
- Planned Finish Date on Item

15.2 PS Authorization Framework Definition

The requirement for access control to the system functionality can be met by using several methods and
functionalities in the SAP PS module.
This section describes the high level functional design of the authorization framework that will be used to
deliver the required access control in SAP PS.

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15.2.1 PS Authorization Framework

The field control on the project definition and WBS elements will be done in three levels namely:
Configuration
The project profile will default certain values in the system on the project definition and WBS
element objects. The project profile is shown in the diagram. The PS Consultant will be
responsible for this level and will be the only role that has access to the SPRO transaction.

Field control
The field control will be configured as influenced by the project profile and will limit the fields
that are default from the project profile to Display and the rest of the fields to Input. The PS
Administrator will be responsible for this level and the will be the only role that has access to the
CJ20N transaction without any screen variant constraints.

Transaction and screen variant


One customer transactions will be developed as transaction variants namely:
ZCJ20N. The users (normal and administrative) will be responsible for this level and will only be
able to access the system with the roles with the Z-transactions mentioned above.

User Statuses
The following user statuses will be developed:

S/N ID Description Auto set Constraints Allowed From To Comment Authorisation


by (Forbidden)
1 TEMP Template no Initial Assignment 1 5 This is the initial PS
delete order/WBS status when a WBS Administrator
Change WBS element is created. can reset and
number This limits any set
Change changes to the WBS
structure hierarchy from level
1 to level 4.
2 AF Accountant Settleme Change WBS 2 4 This status is set Project
Flag nt Rule number automatically on the Accountant
mainten CAPEX/OPEX can reset and
ance Deliverable WBS set
element when a
Deliverable WBS
element is added at
level 5 in the
structure due to the
settlement rule that
is preset on the WBS
element template.

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Change This status is used in


structur the structure report
e CN43N to identify all
the WBS elements
Maintai that require
n settlement rule
settlem maintenance by the
ent rule Project Accountant.
3 NR Normal Change WBS 2 3 This is the status that Project
number the Project Accountant
Accountant must set can reset and
the CAPEX/OPEX set
Deliverable WBS
element after the
settlement rule was
maintained.
Maintain This removes the
settlement Accountant Flag
rule status and indicates
that the settlement
rule maintenance has
been completed.

4 TMP1 Templ after Assignment 2 5 This is the status that Project


AF order/WBS the Project Accountant
Accountant must set can reset and
the WBS elements set
from Level 2 down to
Level 4 after the
settlement rules
were maintained.
Change WBS This removes the
number Accountant Flag
Change status that is
structure automatically set
when the settlement
rules are maintained
and returns the WBS
to its initial condition
- same as TEMP.
5 UC Unconstraint Change 1 5 This status is used by PS
WBS the PS Administrator Administrator
number to open the can reset and
Change Operative project set
structur template structure
e for maintenance. This
status is set to do the
maintenance and
reset to TEMP after
completion of the
maintenance.

Timesheet entry profiles


The timesheet entry profiles have a specific authorization object that limits the user to use only the
timesheet entry profile assigned in a role with the specific authorization object.

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16 Appendix F: Training Requirements

The following categories of staff will be trained on this process:

Super Users Super Users will be expected to demonstrate sound knowledge of executing this
business process in the SAP system. They will also be involved in providing first line support to end
users post go live. Super users are expected to understand the overall solution end to end and will be
trained on the entire solution. Super users will be part of the following activities which are expected
to increase their knowledge of the solution:
- Business Blueprint workshops
- Primavera Interface workshops
- User Acceptance Testing

Super users will be trained in a one week super user boot camp on the entire PPM/PS solutions as
designed for PD CAPEX projects. Training requirements for super users will include the following:

- Basic SAP Overview and Navigation


- Detailed end-to-end process overview training for all business processes
- Detailed Role based training for required business processes
- Troubleshooting knowledge to resolve end user issues relating to this process

End Users End Users will be trained to ensure that they can effectively carry out their roles in the
system post SAP implementation. Training requirements for end users will include the following:
- Basic SAP Overview and Navigation
- Basic end-to-end process overview training for required business processes
- Detailed Role based training for required business processes

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17 Appendix G: Table of Acronyms, Abbreviations and Terms

Acronym Full Meaning


ABAP Advance Business Application Programming
ACL Access Control List
ARP Asset Reference Plan
ASAP Accelerated SAP
AUC Asset Under Construction
BAPI Business Application Programming Interface
BCP Business Continuity Plan
BI Business Intelligence
BO Business Object
BO Business Opportunity
BPC SAP Business Planning and Consolidation
BW Business Warehouse
CAPEX Capital Expenditure
CATS Cross Application Time Sheet
CLM Contract Lifecycle Management
CLSD Closed
CO Controlling
CRTD Created
DCAF Discipline Controls and Assurance Framework
DFA Delegated Financial Authority
DMS Document Management System
ECC ERP Central Component
ECP Easy Cost Planning
ERP Enterprise Resource Planning
FAC Financial Advisory Committee
FEL Front End Loading
FICO Finance and Controlling
FID Final Investment Decision
GRC Governance, Risk, and Compliance

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HCM Human Capital Management


HO Head Office
IA Infrastructure Area
IID Initial Investment Decision
IMT Information Management & Technology
ISB Integrated Support Base
KPI Key Performance Indicator
LOF London Office
LSMW Legacy System Migration Workbench
LTO License to Operate
MD Managing Director
MM Materials Management
MOM Minutes of Meeting
N/A Not Applicable
NLNG Nigeria Liquefied Natural Gas
NPV Net Present Value
NWBC Net Weaver Business client
OPEX Operational Expenditure
ORP Opportunity Realization Process
OSB Operational Support Base
PCAP Project Controls and Assurance Plan
PD Production Division
PM Project Management
PM Plant Maintenance
PMS Project Management System
PO Purchase Order
PPM Portfolio and Project Management
PR Purchase Requisition
PS Project Systems
RA Residential Area
REL Release
RIC Reliability and Integrity Committee

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SAP ERP Software Application (Systems Applications and Products in Data Processing)
SKF Statistical Key Figure
SME Subject Matter Expert
SOA Service Oriented Architecture
SOD Segregation of Duties
SOW Statement of Work
SRM Supplier Relationship Management
TECO Technically Complete
WBS Work Breakdown Structure
WIP Work In Progress

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18 Appendix H: Glossary of Terms

Account Assignment Element


An element in a work breakdown structure (WBS) to which actual and commitment postings can be made.

Activity
An activity is a task in a network that has a defined start and finish. An activity can be divided into activity elements.
Categories of activities in the Project System are: Internal Activities, External Activities, General costs Activities and
Service Activities.

Asset
An asset is defined as any building, land and/or equipment that qualify as a capital item. An asset is placed in service
and depreciated monthly. As projects build assets, the AUCs will be replaced with final assets and the WBS status
changed to TECO (technically complete).

Asset under Construction (AUC)


Fixed Assets that are in the process of construction / being completed.

Bucket
A Bucket is a container for portfolio items. A bucket can contain multiple portfolio items or other buckets. A bucket and
an item cannot co-exist in the same bucket. Items must be created at the lowest-level bucket. The overall structure of
the portfolio is reflected in the portfolio structure of buckets and the budget for each bucket is managed separately.

Budget Availability Control (BAC)


Availability control is used to check consumable budget (budget or releases) against consumed amounts (commitment
or actual postings) within a budget process. If budget consumption reaches one of the tolerance limits specified in
customizing, this can trigger system activities for example, additional postings can be prevented.

Budget Update
A change made to the original budget in the form of budget supplements, returns and/or transfers.

Capacity Planning
High level, long term strategic planning for capacities, such as personnel, required at Item, Bucket or Portfolio levels.

Capitalization of Assets

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An accounting procedure that is required when an asset produced in-house is completed. The acquisition and
production costs that are collected on the Asset under Construction are transferred to a fixed asset.

Cross Application Time Sheets (CATS)


A SAP tool used to confirm actual time of an employee on specific tasks executed within a project

Checklist
A list of items (mandatory or optional) that must be completed before a project/project phase can be completed.

Checklist Item
A part of a checklist that represents an important requirement that has to be completed as part of a project or project
phase.

Confirmation
Confirmation is the final or partial documentation of the state of processing for an activity. A confirmation is used to
record the work center where the activity was performed, the person who performed the activity, and the actual time
to perform the activity.

Commitment
A commitment is a contractual or scheduled commitment that is not yet reflected in Financial Accounting but that will
lead to actual expenditures in the future. Commitment management gives an early recording and analysis of such
commitments for their cost and financial effects.

Cost Planning
This is the process of estimating the costs to be incurred for elements of a Work Breakdown Structure.

Decision Point
Decision points denote the phases through which portfolio items pass. Each decision point can have several
configurable status values such as Not Active, In Preparation, In Progress, For Review, Approved etc

External Activity
External activities are used as a basis for planning activities that are external to the organization. These activities trigger
purchase requisitions which are further processed in MM purchasing.

Goods Receipt
This is a term from Inventory Management denoting a physical inward movement of goods or materials from a
company, usually with reference to a purchase order or production order.

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Internal Activity
Internal activities are used as a basis for planning work carried out within the organization using internal resources (i.e.
people or machines). These activities are tied to a work center and an activity type rate.

Network
Networks describe the chronological sequence of and dependencies between events and activities in a project.

Portfolio Item
A Portfolio Item is a generic object that is managed within a portfolio. Each portfolio item is assigned to at least one
bucket and must be created only at the lowest level bucket. Portfolio items are ideas, project proposals etc

Portfolio Item Status


An indicator representing decisions made about a portfolio item. Example values of the portfolio item status are
"Approved" and "Rejected".

Project Definition
This is the same as the top level WBS element and is the header of the project. It is therefore a binding framework for
all elements created within the project structure. It contains default and control values for the project structure.

Project Phase
A Project phase is a clearly defined period of time within a project or initiative. In SAP Project Management, a phase
begins with the release and ends with the approval.

Project Settlement
This is the process where the actual costs incurred for a WBS element, network, or activity are allocated, in whole or in
part, to one or more receivers.

Purchase Order
A Purchase Order is a request or instruction from a purchasing organization to a vendor (external supplier) to deliver a
quantity of material or render a service at a certain point in time.

Purchase Requisition
A Purchase requisition is a request or an instruction to purchasing to procure a quantity of a material or service so that
it is available at a certain point in time.

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Questionnaire
A service used to define qualitative rankings based on a scoring worksheet. Scoring worksheets are based on a variety of
qualitative questions, subjective evaluations, and scoring such as for strategic fit analysis and risk analysis to populate
any other portfolio item attribute.

Relationships
Link between activities within a network that establishes their sequence in time

Reservation
A reservation is a request to material requirements planning to keep a material ready for issue at a future date. This
ensures that the material is available when required.

Service Activity
A service activity is used to procure services externally. Service activities differ from external processing activities in that
they enable you to define service specifications and value limits (by referring to an existing contract) rendered by the
service provider.

Scoring model
A method used to maximize the value of a portfolio against one or more business objectives. The result is a ranked list
of portfolio items or initiatives that can be used for making decisions in a portfolio review.

Work Breakdown Structure


A hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the
basis for the organization and coordination of a project. A WBS consists of WBS elements and the WBS elements
describe tasks or subtasks in the project to be performed within a defined time period.

WBS Element
A WBS Element is a structure element of the Work Breakdown Structure. It describes a concrete or a partial task that
can be further sub divided.

Work Center
A work center is a group of people, a machine or an individual who performs work. Data stored in a Work Center can be
used for work scheduling, costing and capacity planning.

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