PLM SIG 25 March 2010

SAP PPM in Practise

Presentation Johan Steenkamp Project Management Specialist Lonmin

PLM SIG 25 March 2010

SAP PPM in Practise

Johan Steenkamp Lonmin Platinum Mining Industry

BCom (Inf)
PMP 12 years experience

PLM SIG 25 March 2010

Content
Section Contents
01 02 03 04 05 Why PPM? PPM Overview Challenges faced SAP Functionality mapping Conclusion

PLM SIG 25 March 2010

Why PPM?

Audit finding? Following the latest trend? Chaos in the environment? Legal requirement?

Instruction from the CEO?

On the verge of being fired?

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Why PPM?

We are good at pushing solutions at problems we do not understand

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PPM Overview
Focus
Enterprise Portfolio Management Strategic Alignment Investment Risk Management Investment pipeline Capacity Management Project Pipeline Interactions Changes Capacity Management

Elements
Assets Money Other Resources Decisions

Portfolio Management

Project and Portfolio Mangement

Projects Money Resources Decisions

Application Portfolio Management

Effort Value Capacity Management

Applications/ operations Time

Related projects Program Management Other work Optimization Relationships Opportunities Threats

Individual projects Sub projects Deliverables Time, cost, scope and quality Work Resources Constraints

Project Management

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PPM Overview
Strategic Objectives

Enterprise Portfolio Management

Application/Operations Portfolio

Project Portfolio

Programme Management and Executoin Operational Work Project Management and Execution

PLM SIG 25 March 2010

Challenges
Enterprise portfolio Management Recognition of the function Formal function Position of function within the organization Understanding of the difference between the disciplines Risk

Decision models
Constraints/Opportunities Value realization Flexibility Phases/Stage Gates Governance

PLM SIG 25 March 2010

Challenges
Program Management Project pipeline Relationships Constraints Resources

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Challenges
Project Management Timeline Scope Resources Governance documentation Keeping everything together

One version of the truth

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Challenges (Resources)

Portfolio Manager

Program Manager

Project Manager

Project Administrator

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Challenges (Resources)

CA, CFO| Strategic thinker with investment background Previous Project Manager| Trained Program Manager

Portfolio Manager

Program Manager

Project Manager

Anyone (least busy person)| Trained project Manager

Project Administrator

Secretary| An individual with good administrative skills and a project background

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Pitfalls
Pitching PPM in the wrong place in the organization Confusion around roles and responsibilities Wrong people involved Misalignment to strategic objectives Not understanding the environment Selecting the wrong tools

Applying the right tools wrong

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Critical Success Factors

Value drivers Why am I doing this? How will a measure success? Process Roles and responsibilities Resources Apply correct tools Apply tools correctly

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SAP Functionality Mapping

Suite of Products RPM SAP Project Systems (PS) cProjects BW or BO

PLM SIG 25 March 2010

SAP Functionality Mapping

Focus of Products RPM Portfolio(s) Decision models Initiative pipeline Capacity Management Benefits tracking Stage gate control Program Management SAP Project Systems (PS) CBS (Cost breakdown structure) Estimating Budget Control

PLM SIG 25 March 2010

SAP Functionality Mapping

Focus of Products cProjects Checklist (input into stage gate approval) Scheduling Assignments (input into capacity management) Tracking

Documentation
Skills search

PLM SIG 25 March 2010

SAP Functionality Mapping

Capital Funds Management and Allocation

SAP IM

Portfolio Management and Planning

SAP RPM

Programme Management and Planning

SAP PS MS Projects EPM

Operational Project Management

SAP cProjects

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SAP Functionality Mapping

SAP Enterprise Portal

SAP RPM Strategic Portfolio Managment

Item Lifecycle Management Capacity Planning and Management Financial Planning Reviews and Scoring Dashboards (Monitoring) Governance Approval

SAP BW/BO PPM Reporting

Dashboards Standard RPM Reports Standard cProject Reports Standard PS reports

External Project Management Tools

MS Projects Primavera

SAP cProjects Operational Project Management

Project Planning and Scheduling Operational Resource Management Tracking Document Management Governance Collaboration

SAP HCM Human Resources

Internal Resources

SAP PS WBS Financials and Costing

WBS Breakdown Budget Control Expense Accounting Workflow Forecasting Capital and Operational

SAP IM
Capital Funds Managment

SAP FI
Financial Accounting Asset Accounting

SAP CO
Cost Accounting

SAP MM
Procurement

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Conclusion
Can SAP Suite of PPM products address my PPM Needs? Most definitely YES!

PLM SIG 25 March 2010

Conclusion
IM/IT Strategy Integration Scalability Flexibility Involve the correct resources Build

Support
Strategic Alignment Support the strategic objectives Build with the end in mind