Project System Module (PS)

Presented by:

Overview
Review of Organizational Elements and Master Data Overview of Projects using the PS module and how it is integrated with other modules in the R/3 System Become familiar with the basic functions in the PS module

Organizational Areas in R/3

Sales
Sales organization Sales area Company code Business area

Accounting

Purchasing
Purc.organization Warehouse

Cost accounting

Plant Maintenance/ Service

Production

PS

Controlling area
Prof.segment

Human resources

Treasury

Planning Plant Plant Personnel area FM area

Organizational Structures: Accounting

Operating concern IDEA Controlling area 1000

Fin.mgt area 1000

Company code 1000

Company code 1000

Company code 2000

Business area 4000

Business area 6000

Business area 1000

Business area 2000

Business area 4000

Organizational Structure: Logistics

Controlling area 1000 Company code 1000 Purchasing organization 1000 Sales organization 0001 Sales path 01 Division 06 Division 08

Valuation level Plant 1200 Shipping point 0006 Shipping point 1200 Plant 1300 Storage location 0001 Storage location 0002 Storage loc.003 (WMS store)

Organizational Elements and Master Data

Operating Concern - (CO) Part of organization for which the sales market is structured in a uniform manner (product group, customer group) can contain >1 controlling area
Controlling Area - (CO) Identifies a self-contained, organizational unit within a group, for which cost accounting can be performed Company Code - (FI) Smallest organ unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting

Organizational Elements and Master Data

Division -(SD) Based on responsibility for sales or profits from salable materials or services
Plant - (LO) Within Logistics, a place where either materials are produced or goods and services are provided. Assumes variety of roles (Maintenance Plant, retail or wholesale site) Storage Location - (LO) Allows the differentiation of materials stocks within a plant Shipping Points - (SD) Fixed location that carries out shipping activities (companys mail department)

Organizational Elements and Master Data

Business Area - (FI) Represents a separate area of operations or responsibilities within an organization. Can have several Company Codes Purchasing Organization - (MM) Procures materials and services, negotiates conditions of purchase with vendors, and bear responsibilities for such transaction

Sales Organization - (SD) Sells and distributes products, negotiates terms of sales, and is responsible for these transaction
Organizational Structure is prerequisite for making correct application - specific system setting in customizing - it is the framework

Master Data

Central Functions
Classes Characteristics Object dependencies Documents

Accounting

Capital investment management

G/L account Chart of accounts Asset CI program Cost center Cost element Activity type Profit Center

Cost Acctg

Purchasing
Material Activity master Vendor Purc.info record
WBS

Treasury
Commt item
Network

Plant Maintenance/ Service Equipment

Production

Human Resources

Work center BOM PRT

Person Qualification profile

Management

Controlling Levels
Result

Controlling

Execution

Resources Time
Capital Investment Production Materials Costs Revenues

Value

Vendor Personnel

Procurement Assets

S&D
Departments

Customer

Cross-department

Project Tasks
Sales Purchasing Accounting Production

Hierarchy of tasks

Agreements

Planning and Controlling

Dates
Resources

Budget Costs

 Tasks with particular characteristics To execute a project:

Overview of Projects

Complex, unique, and involve a high degree of risk Limited duration, and cost and capital intensive Need a project-specific organizational form Must describe the project objective Structure perform the project activities you want to

Structured according to:

How it is organized Structure (WBS) using Work Breakdown The processes involved using Networks

Project System

PS

Use
- Investment - Marketing - Make-to-order production - Asset construction - Shutdown - Services - Plant maintenance -R&D - EDP projects

Functions
- Structures - Time scheduling - Project plannimg board - Cost planning - Financial data - Budget - Info system

Views
- Materials Management - Cash Management - Resources - Operating results - Controlling - Periodic processing - Configuration - Workflow - Investment Management

SD

Integration
PP
Quotation Order Billing document Plan order Production order Settlement

MM Purchase requisition Purchase order Goods receipt Invoice receipt Material issue

CO Order Surcharges Distribution Assessment Activity allocation

PM
Plant maintenance order Settlement

FI

AM Asset under construction Settlement

Invoice

Integration of Financial Data

MM FI
Purchase requisition

> 3.0

Purchase order

Down payment request Down payment

Goods issue Invoice receipt

Bank clearing

Payment

Expenditure PS Financial budget

Revenue > 3.0

Quotation
Sales order Down payment request Down payment Delivery Invoice issue Bank clearing Payment

> 3.0 SD

FI

Integration Example: Vendor Down Payment

Purchase order item

Payment Difference between invoice and down payment clearing

Down payment request

Down payment clearing Invoice checked against down payment document

Down payment

Invoice

Integration Example: Purchasing

Purchase requisition
BE

? = Invoice verification

Bid invitation

Goods receipt

Entry of quotation

Purchase order monitoring

Vendor selection

Ordering

Status/ Phase

Function Model (5)

Structuring
Concept

Structuring
Structure

Planning
Costs Dates

Approval
Budget

Execution
Actual data

Closing
Settlement

Project definition

Commitment, costs, revenues

...

Work breakdown structure

Budget Costs Dates

Release

...

Network
PP order

Confirmmation

TIME

Settlement

Settlement

...

...

Operative Structures in Projects

WBS

Network

Project definition

Operative Structures in Projects

Project definition
Defines task to carry Contains project data which is binding on the whole such as start and finish dates and organization data Project form services to be rendered in graphical Operative basis cost planning, time scheduling, and for budget allocation in projects

WBS is the model of the project

Network project reproduces the activities from the

Operative basis dates, costs andfor the planning and control of resources (personnel, machines, PRTs, materials)

Master Data
Project definition

Work breakdown structure

Responsibility-oriented organization

Network
Process-oriented organization

1:N

Budget Costs Basic dates Basic dates Organizational units

Dates

Resources
Resource costs

Project Definition
March 31 April 6

Dates Basic dates for entire project

April 7

Default values Company code Currency Settlement rule

Planning parameters For dates For costs

Organizational outline

Controlling area

Projection Definition
First Step in creating a project

Outline connecting all objects created within a project

Contains data used for the entire project Default values that are copied into the new WBS elements you create for this project

Work Breakdown Structure

Dates Basic dates Scheduled dates Actual dates Costs Planned costs Actual costs
April 7

Budget Original budget Release budget

Purchase order

Financial data Customer Vendor

Commitment Purchase requisition Purchase order

Periodic processing Surcharges Settlement

Work Breakdown Structure

Focus is on planning, analysis, description, control and monitoring costs, basic dates and budgets It forms the basis for organization and coordination in the project Shows amount of work, time required, and cost involved Operative basis for further steps Structured according to different criteria depending on level detail Tasks and Activities are describe as individual elements

Work Breakdown Structure

WBS Elements
Can be:
Tasks Partial Tasks which are subdivided further Work Packages
Start and finished dates
Text describing the work to be performed Responsible cost centers Cost centers carrying out the project

Structure of a WBS

Currency

Milestones

PS texts

Documents

Subproject

Network
Internal processing

Work Dates Costs

April 7

Scheduling

Relationships Constraints Floats Critical activities

External processing

Services Dates Costs

Controlling

Material

Earned value reports Capacity load

Purch. parts / assemblies Dates Costs, commitment

Periodic processing

Surcharges Settlement

Network
Networks represent processes or task in a project

Essential elements of a network are:

Activities
Work Center, Duration, S&F, Resources Required, Texts

Activity elements
Relationship The Network Header contains data required for the entire network

Network Question that are answered using network

information
Where are we unclear? Where are the Scheduling uncertainties? When and what amount are cost incurred? When and what quantity do resources are made available?

Relationships
FS (finish-start) FF (finish-finish)

SS (start - start)

SF (start-finish)

Network header

Structure of a Network
External processing General costs activity Documents Services PS texts Internal processing
Int. processed element Ext. processed element Gen. costs element

External processing

Milestones Internal processing Material components Production resources/tools Qualification

Relationships
Production Assembly

FS relationship

Design SS relationship

Purc.order

Purc.order

BOM

FF relationship

Design
Work scheduling

SF relationship

Acceptance

Start -up

Work Breakdown Structures and Networks

WBS
13 1000 1100 13-1 13-2 13-3 13-4 1050 1060 1140 13-1-1 13-1-2 13-2-1 13-2-2 1170 1000 1000 1080 1140 1170 1170 3000

Network

2000
1050 1030 1060 1080 3000 1100 1120 1030 1120 2000

13 Elevator 13-1 Engineering 13-1-1 Elec.parts 13-1-2 Mech.parts

13-2 Procurement 13-3 Assembly 13-2-1 Elec.parts 13-4 Insurance 13-2-2 Mech.parts

1000 Layout 1030 Engineering: Mech.parts 1050 Engineering: Elec.parts 1120 Procurement:: Car 1080 Procurement: Mech.parts

1060 Procurement::Motor 1100 Procurement: Elec. parts 1140 Assembly 2000 Acceptance 1170 Release 3000 Insurance

Planning (Cost and Dates)

Various ways of planning dates
Plan dates in the WBS, binding on any further planning
Dates in the network are determined by the system or manually Plan dates in lists, or using the various PS graphic interfaces.

Types of dates
Basic Dates - Binding basis of time schedule in the WBS elements

Forecast Dates - Expected dates for WBS elements

Planning (Cost and Dates)

Plan cost at different levels of cost planning
Structure planning (by WBS)
Plan cost without the reference to a cost element

Cost element planning (detailed planning)

Plan cost with reference to a cost element

Unit Costing
If information on sources of supply, quantities, and prices is available, you can use unit costing to produce a project cost plan

Approval (Budget)
Approval Phase
Prescribe the project funds in the form of a budget
Budget differs from the cost plan in that it is binding

Starts with defining an original budget for the WBS element Store as overall, then distribute it Release the budget in stages, prevents exceeding early

Execution (Actual data)

Actual dates and costs are confirmed
status of activity processing is documented
system checks the dates of the WBS element and set actual dates Actual cost create activity allocation Tolerance limits

Integration

Closing
Project closing
Collecting all costs
Settling the costs

Closing the structures