Project Systems and Real Estate Overview

Shelter Mbizvo
SAP Financials Consultant

What is a Project?
According to the PMBOK Guide, First Edition, Version 1.0, June 2003:
"A project is a temporary endeavour undertaken to create a unique
product or service..."
"Temporary means that every project has a definite beginning and a
definite end date. The end is reached when the project's objectives
have been achieved, or ... cannot be met, or the need for the project no
longer exists...

Project functions

Define the purpose or product to be completed

Organize the work to be accomplished
Separate the work into smaller, manageable pieces and activities
Provide a framework on which to plan the project requirements, using both internal
and external resources
Capture actual performance data on the same framework, which can be used for
comparisons
Provide a consistent format for tracking and reporting project information for
management decision making
Provide a permanent record of project performance which can be analysed for future
performance improvements

Project process steps/phases

Establish: Create project structure

Plan Schedule and Dates Costs-Internal requirements (Labour)
Costs-External requirements (Procurement) Costs-General
requirements (Incidental)
Fund/Budget
Execute
Monitor & Control
Complete Physical Financial
Close

Operative structures in projects

Project 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

WBS

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

Network

Networks represent processes or task in a project

Essential elements of a network are:

Activities
Work Center, Duration, S&F, Resources Required
Activity elements
Relationship

WBS and Networks

Project Life-cycle

Integration

Real Estate

Modern challenges

High manual effort to ensure legal compliance

No transparent investment planning process in place
Inconsistent procurement of construction and maintenance
Projects and maintenance expenditures exceed budgets
Missed lease and sales opportunities
Inefficient process flows between involved departments
Poor cooperation with external service providers and tenants
Inconsistent reports due to multiple and inaccurate real estate data
sources

Solving Real Estate issues

Management of real estate

The dual view of master data (architectural view and usage view) lets
you easily create and manage all types of real estate objects
business entity
land, building
rental unit - rental space, rental room

Contract management

The real estate contract lets you manage all contracts related to your real estate
portfolio:
Real estate contracts of the lease-in category (such as, commercial, internal, residential)
Real estate contracts of the lease-out category (such as, commercial, internal,
residential)
General customer contracts (such as, service contracts with the tenant)
General vendor contracts (such as, maintenance contracts with a service provider)
G/L account contracts (such as, for posting reserves for service charges)
Security deposit agreements
You can assign any number of rental objects from different business entities, buildings
or company codes to any one contract. When defining conditions and other contract
terms, you can group the assigned objects together into object groups .

Space management
Space and room management takes account of unusual architectural
structures, usage considerations, as well as technical amenities and
features.
You can define spaces flexibly and rent them (extracting them from a
larger available space).

Lease-in
The credit-side view of the lease-in process lets you control cash flows
to the landlord and posting of expenses