Sap erp 6.08 global bike

Who Knows SAP Project Management Case Study (Please Read Instructions Before Replying)

CASE STUDY

Product

SAP ERP 6.08 Global Bike

Level

Beginner

Focus

Project Management

Authors

Martin Wassmann Bret Wagner Stefan Weidner

Version

3.0

Last Update

July 2016

MOTIVATION

In the Project Management it will be create a simple cost project, which will plan and control the development of an ultra light racing bike. The project will be structures using a work breakdown structure (WBS) and network activities. In the Execution phase we will post actual dates and actual costs on activities and WBS elements.

PREREQUISITES

Before you use this case study, you should be familiar with navigation in the SAP system.

NOTES

This case study uses the Global Bike (GBI) data set, which has exclusively been created for SAP UA global curricula.

Project Management (PS) Case Study

This case study explains the project management process in detail and

thus fosters a thorough understanding of each process step and

underlying SAP functionality.

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CASE STUDY

Process Overview

Learning Objective Understand and execute an integrated project planning.

Scenario To edit a complete project planning process, you will take different

roles in GBI, e.g. Production Supervisor and Cost Accountant. Overall, you

will be working in the Project Management (PS) and Financial Accounting (FI) departments.

Employees involved Jun Lee ( Production Supervisor)

Jermain Kumins (Shop Floor Worker 1)

Silvia Cassano (Accounts Payable Specialist)

Jamie Shamblin (Cost Accountant)

Time 140 Min.

At the beginning of your project you assign WBS elements, activities and milestones at Project

Builder. Also you assign milestones to your project.

In the last few steps, you create creditor invoice for your business partner, who acts as an

intermediary for the test driver and you have to pay for the entire project.

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CASE STUDY

Table of Contents

Step 1: Create Project ................................................................................................................ 4

Step 2: Change Project ............................................................................................................... 8

Step 3: Create Relationships.................................................................................................... 10

Step 4: Assign milestones ........................................................................................................ 13

Step 5: Release of Project ........................................................................................................ 15

Step 6: Reporting using cost element report........................................................................... 16

Step 7: Analyze Project Structure ........................................................................................... 18

Step 8: Further scheduling of Project ..................................................................................... 20

Step 9: Post activity confirmations ......................................................................................... 22

Step 10: Create single confirmation ........................................................................................ 24

Step 11: Display actual cost reporting .................................................................................... 25

Step 12: Create creditor invoice .............................................................................................. 27

Step 13: Display costs .............................................................................................................. 28

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Step 1: Create Project

Task Create a new project.

Short Description Use the SAP Easy Access Menu to create a new project.

Name (Position) Jun Lee

Time 15 min

This is the Project structure of cost project P/20##, which consists of WBS

elements, activities, and milestones.

We will use the project builder to create a project “Development of

Ultralight Bike”. The project consists of a work breakdown structure and

network activities.

To create a project, follow the menu path:

Logistics ► Project System ► Project ► Project Builder

Add this transaction as a Favorite, then process this transaction.

Menu path

This will produce the following screen. Confirm the popup Project Builder:

Options using the enter icon.

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In the popup Project Builder: User-specific options enter for Hierarchy

levels 99 and select Preview last project. Leave other fields as they are.

Confirm your entries by using the continue icon.

99

To create the project P/2###, select Create and choose Project.

In the screen Project builder enter in the field Project Def. P/2###.

Remember to replace ### with your three-digit number, e.g. 003 if your number

is 003. For Text (unlabeled) enter Development of Ultralight Bike ### (I) and

select in Project Profile Cost projects (Europe). Confirm your entries by

using the continue icon.

P/2### Development of

Ultralight Bike ###(I)

Cost projects (Europe)

Click on the WBS Element Overview icon to create new WBS elements.

Fill in the following data in the Project Builder screen. Please notice that the

system will deduce the project number from the entry. Special characters

such as double quotes can be configured in the SAP customizing menu.

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WBS element Description PE Acct

" Development of Ultralight Bike  

" 1 Engineering  

" 2 Prototype  

" 3 Testing  

" 4 Small series production  

" 5 Release to mass production  

Confirm your entries by using the continue icon.

Hint Operative indicators such as the above (”PE” and ”Acct”) control,

whether the WBS elements can be used for cost planning and cost account

purposes.

Remark the hierarchy graphic can be used to edit the project as well. Please

note, that the derivation of WBS element structure has determined the

hierarchy from the number of the WBS elements. Naturally this works only

for numbers, which reflect a hierarchical order and are customized by a so

called number mask.

To derive the WBS structure the number of the WBS elements choose in the

pull down menu Project ► Derive structure ► Execute. Go to the tab

Responsibilities to assign responsible cost centers to all WBS elements.

Assign responsible cost centers to all WBS elements. Therefore select the

Tab Responsibilities and enter the following data.

WBS element Resp.cost cntr

P/2### EURD1000

P/2###-1 EURD1000

P/2###-2 EURD1000

P/2###-3 EUQM1000

P/2###-4 EUPR1000

P/2###-5 EUQM1000

Confirm your entries.

Use the hierarchy graphic to display your project structure. Use the

”Hierarchy graphic” icon.

Hint The hierarchy graphic can be used to edit the project as well. Please

note, that the derivation of WBS element structure has determined the

hierarchy from the number of the WBS elements. Naturally this works only

for numbers, which reflect a hierarchical order and are customized by a so

called number mask.

To return to the Project Builder use the Back icon. Save your project with

.

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Return to the Easy Access Menu by using the Back icon.

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Step 2: Change Project

Task Change the project.

Short Description Use the SAP Easy Access Menu to change the project

form the task above.

Name (Position) Jermain Kumins

Time 10 min

The project P/20## will be enhanced by network activities (thereby detailing

the information of the WBS elements). Activities describe the process flow

of the project. You can plan dates, resources and costs through network

activities as well.

To change a project, follow the menu path:

Logistics ► Project System ► Project ► Project Builder

Menu path

Click at . In the Open Project screen enter in Project Definition P/2###

and choose .

P/2###

Use the Overview icon. Choose the Activity Overview icon. Enter

the following data:

Activity Description Normal dura- tion in days

Work in hours Work center

0010 General concept 10 80 DVLP1000

0020 Engineering of carbon frame 5 40 DVLP1000

0030 Engineering of steering fork 2 20 DVLP1000

0040 Purchasing of components 1 5 PROC1000 0050 Production of carbon frame 2 30 ASSY1000

0060 Production of steering fork 1 10 ASSY1000

0070 Prototype assembly 8 60 ASSY1000

0080 Wind channel test 1 8 INSP1000

0090 Stiffness test 1 6 INSP1000

0100 Testing acceleration dynamics 1 5 INSP1000

0110 Testing steering precision 1 8 INSP1000 0120 Small series production 10 100 ASSY1000

0130 Final test (internal) 5 50 INSP1000

0140 Release to mass production 1 3 INSP1000

Confirm your entries by pressing Enter or pressing .

In the Branch to the activity overview of external activities create more

activities. To do so use the Ext Processing tab. In the Activity field enter

0045 and activate the Service Field and enter Outsourcing gear in Description. Confirm your entries by pressing Enter.

0045

Outsourcing gear

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In the Service Specification: Ext. Specs f. Task List Maintain screen enter in

the first line 10, in the field short text Engineering, choose for Quant. 1, for

Unit EA and in Gross price 2000.

In the second line enter 20, for the short text enter Ext. production, choose 1

for Quant., EA for Unit and enter Gross price 3000.

10

Engineering 1

EA 2000

20 Ext. production

1

EA 3000

Confirm your entries with Enter or . Go back to the Project Builder:

Project P/2### screen by pressing once .

On the Prim. Costs Tab enter f or Activity 0135, enter Performance test by

professional drivers in Description, for Amount 10000 and 741000 for

Cost Elem.

0135

Performance test by professional drivers

10000 741000

Confirm your entries, by pressing Enter. Use the Save icon to save your

entries, confirm any messages.

Return to the Easy Access Menu by using the Back icon.

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Step 3: Create Relationships

Task Create the relationship structure.

Short Description Use the SAP Easy Access Menu to create the relationship

structure.

Name (Position) Jermain Kumins

Time 15 min

So far the activities are all assigned to the top WBS element. In addition

there are no relationships between activities, i.e. activities so far begin all to

the same time. This will be changed now.

To create the relationships, follow the menu path:

Logistics ► Project System ► Project ► Project Builder

Menu path

Click at . In the Open Project screen enter in Project Definition P/2###

and choose .

P/2###

In the structure tree in the left side, double click on Development of

Ultralight Bike . Press the Activity

Overview Icon.

Enter the following values:

Activity WBS Element

0010 P/2###

0020 P/2###-1

0030 P/2###-1

0040 P/2###-2

0050 P/2###-2

0060 P/2###-2

0070 P/2###-2

0080 P/2###-3

0090 P/2###-3

0100 P/2###-3

0110 P/2###-3

0120 P/2###-4

0130 P/2###-5

0140 P/2###-5

Confirm your entries with

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Hint In the following we create the relationship structure as shown in the

screen below. You can do this in the network graphic. In practice network

graphic is not a good way to edit networks with more than about 10

activities, as you lose the overview.

Furthermore network graphic is possible only for SAPGUI (for Windows).

For this reason we edit relationships in a tabular way (which is the

productive way for large networks).

The Graphic shows the network for development of ultra light racing bike.

The following example will show to enter the relationships between

activities 10, 20 and 50. Please use the same procedure to create all

relationships of the image above.

As you can see in the image above as well as in the snippet below, activity

number 20 is the successor of activity number 10. In addition activity

number 50 is the successor of number 20. Please keep in mind that only

direct relationships between two activities will be created. For example, no

relationship between activity 10 and 50 will be entered.

Click on your activity 10 in the structure tree on the left side

. Use the Relationship

Overview button.

Since we only care about the activities 10, 20 and 50 we will only enter 20

and mark it as successor by selecting the Scs flag. However, please keep in

mind that you are supposed to create the relationships to 30, 40 and 45 in the

same way later on.

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Confirm your entries by pressing enter.

Please open the relationship overview for activity 20 as you did for activity

10. In this screen you can see that activity 10 was automatically added as a

predecessor (flag Scs isn’t selected).

Please enter activity 50 as successor of activity 20 and confirm your entries

by pressing enter.

You may open the relationship overview of activity 50 to verify that activity

20 was added as predecessor.

Now populate each activity with its successors (like stated on the network

plan above) in the same manner. Please make sure to select Scs for each

direct successor of the actual activity.

Check the result of your work in the network graphic. For this click on .

Use the Save icon to save your entries. Return to the Easy Access Menu

by using the Back icon.

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Step 4: Assign milestones

Task Assign milestones to activities.

Short Description Use the SAP Easy Access Menu to assign milestones to

activities.

Name (Position) Jermain Kumins

Time 10 min

In the following we assign texts (e.g. a functional specification) to the

project. We assign milestones to activities, in order to indicate important

project stages.

To create the relationships, follow the menu path:

Logistics ► Project System ► Project ► Project Builder

Menu path

Click at . In the Open Project screen enter in Project Definition P/2###

and choose .

P/2###

Open your project again by double click on P/2### Place your cursor on the

top WBS element (yellow triangle) P/2### in the project structure. Use the

“PS Text Overview” icon. Choose for ST 01, for Description enter PH-

###-1 and for TT choose EN.

01 PH-###

1 EN

Confirm your entries with Enter or . Edit any text you wish and click on

Enter. Use the Back icon to return to the project builder main view.

Hint Important project stages can be indicated and described by project

milestones. Milestones are assigned either to WBS elements or to activities

of the project and fulfill information and documentation purposes, but can

trigger business processes such as progress reporting or milestone billing in

the case of sales projects. In the following we create three milestones,

assigned to activities 0070, 0120, and 0140.

To assign a milestone to activity 0070 place your cursor on

activity 0070 at the

structure tee on the left side. Use the .Milestone Overview icon. For

Usage please enter 00004 and by Description enter Completion: prototype.

Confirm your entries with .

00004

Completion: prototype

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Go to the milestone detail data. For this click on Completion: prototype.

Complete the milestone data there. In the field Usage enter 00004.In Trend

analysis, Progress analysis and Offset to fin enter X. Leave other fields as

they are and confirm your entries with Enter.

00004 X

Now assign two other milestones to activities 0120 and 0140 analogously.

Make sure not to assign these milestones to the same activity 0070 or, worse,

to change the milestone which you just created. Finally you should be able to

display three milestones in the structure tree on the left side.

To do so, use the following data:

For the activities 0120 enter for Usage 00005 and in Description enter

Completion: small series. For Trend analysis, Progress analysis and

Offset to fin. enter X.

00005 Completion: small series

X

For the activities 0140 enter for Usage 00006 and in Description enter

Completion: release. For Trend analysis, Progress analysis and Offset to

fin. enter X.

00006 Completion: release

X

Use the Save icon to save your entries. Confirm the Information Pop-up

and return to the Easy Access Menu by using the Back icon.

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Step 5: Release of Project

Task Release of the Project.

Short Description Use the SAP Easy Access Menu to release the project.

Name (Position) Jun Lee

Time 5 min

The project will be released. The release of the WBS elements and / or

activities of the project are a precondition for the posting of actuals, in the

execution phase of the project. In productive environments and for large

projects, only those elements will be released which are to be executed in the

near future. The release of higher-level WBS elements will also release

subordinate WBS elements and / or assigned activities. In the exercises we

release the project definition, thereby releasing all WBS elements and

activities of the project.

To release the project, follow the menu path:

Logistics ► Project System ► Project ► Project Builder

Menu path

Click at . In the Open Project screen enter in Project Definition P/2###

and choose . Choose Menu Edit ►Status ► Release to release your

project.

P/2###

Use the Save icon to save your entries.

Confirm the Information Pop-up and return to the Easy Access Menu by

using the Back icon.

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CASE STUDY

Step 6: Reporting using cost element report

Task Reporting using cost element report.

Short Description Use the SAP Easy Access Menu to report by using cost

element report.

Name (Position) Silvia Cassano

Time 10 min

By structuring the project using network activities, you have built a quantity

structure with internal and external services, which can be calculated and

will lead to planned costs. When releasing the activities, they are

automatically calculated. From now on, planned costs can be evaluated

specific to controlling periods (normally months) and specific to calculate

elements. The evaluation can be done on a specific activity, but also

aggregated to WBS elements and the whole project.

To report, follow the menu path:

Logistics ► Project System ► Information System ► Financials ►

Costs ► Plan-Based ► By Cost Element ►

Actual/Commitment/Total/Plan in CO Area Currency

Menu path

Add also this transaction to your favorites menu and go into the transaction

afterwards.

If required, enter in database GL01000 and confirm.

GL01000

Enter in the selection screen for Project P/2###, in the Controlling Area

choose EU00, for Plan Version 0. Enter the current year for From fiscal

year and in To fiscal year enter the next year. By From period enter 1 and in

to period enter 12. Please delete all other field entries.

P/2###

EU00 0

current year

next year 1

12

The project will usually last until the next year (corresponding to the

network activity durations and their relationships). Since a part of planned

costs will be assigned to the next year, you would only show a part of the

costs when selecting only the current year. Use the Execute icon.

Where do the planned costs result from, which are displayed in the report?

_____________________________________________________

What is the reason for the ”commitments” value?

_____________________________________________________

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Hint For the network activities you specified work centers and the amount of

work (in units of hours). As for the primary cost activities you entered the

costs directly. These costs are determined by network costing and will be

displayed as aggregated costs for WBS elements and for the project

definition. The servicing activity resulted in a purchase requisition for the

purchasing department, which is displayed as commitment (value type,

which displays a future obligation)

Follow the path: Settings ► Options. Then, select the “Expert Mode”

indicator (X). Use the continue icon.

Return to the Easy Access Menu by using the Back icon. Confirm that

you want to exit the report and leave the transaction with clicking the

Back icon without saving.

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Step 7: Analyze Project Structure

Task Analyze the project structure.

Short Description Use the SAP Easy Access Menu to analyze the project

structure.

Name (Position) Jermain Kumins

Time 5 min

Using the structure information system you can analyze the project structure

as well as dates, costs and revenues (plan and actuals) of one or many

projects. The structure information system does not only display data, but

you can edit the project from there or post activity confirmations.

To analyze the project structure, follow the menu path:

Logistics ► Project System ► Information System ► Structures ►

Structure Overview

Menu path

If required, enter in the PS Info Profile filed GL01000 and confirm with

Enter.

GL01000

In the selection screen enter for Project P/2### and leave the other fields as

they are. Use the Execute icon for the report.

P/2###

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Please notice that you can analyze the project structure as well as dates and

costs (plan, actual) using this report. You can always refresh the report , in

order to show changed data.

Please write down the network number which is the one in front of your

activity numbers.

________________

Leave this transaction using the Back icon without saving the report and

click on .

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Step 8: Further scheduling of Project

Task Further scheduling of the Project.

Short Description Use the SAP Easy Access Menu for further scheduling of

the project.

Name (Position) Jun Lee

Time 10 min

In the following we use the project planning board to plan the project P/20##

further. The project planning board is an interactive Gantt chart, which is

particularly useful for the planning of dates and resources. In our project,

dates have been already planned by the scheduling of network activities.

Network scheduling works in principle using the durations of the activities

and their relationships. The scheduled dates of the activities are aggregated

to the WBS elements (to which the activities are directly assigned). They can

be further aggregated within the work breakdown structure (i.e. to the higher

level / top level WBS elements).

To change your project using the project planning board, follow the menu

path:

Logistics ► Project System ► Project ► Project Planning Board ►

Change Project

Menu path

Enter for Project def. P/2###, choose for Plan. board GBI-PS: Bikes and for

w. activities X.

. P/2###

GBI-PS: Bikes

X

Open your project with the button.

You can use Drag and Drop to move the separation between tabulator and

graphical area to the right. Use the Adapt graphic area icon.

Note If the columns ID and Description are not shown please press Field

selection .

In the new screen select Identification and Description on the right table

and press to move them to the selected fields on the left hand site.

Afterwards confirm your selection by clicking . Back in the Project:

Change screen scroll to the right hand site to see the columns.

To decrease the planned costs and make the duration of the activity flexible

double click on activity 0135.

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Change the Amount in 8000 and for Flexible X. Leave the other fields as

they are. Use the Back icon. The changed costs will be displayed in the

planning board after performing network costing.

8000

X

Use the select all icon. Use the schedule icon. Use the calculate

icon. Confirm the Pop-up with Yes.

Hint Because of the indicator ”flexible” the duration of activity 0135 has

been fit to the duration of activity 0130, since both activities are ”parallel”

and activity 0130 has a longer duration. The planned costs of activity 0135

have decreased to 8 000 and are equally distributed over the (flexible)

duration of the activity.

Double click at activity 0010. Change the normal duration into 15 days. On

the Dates tab.

15

Hint In the lower section of the detail screen you see the earliest and latest

dates (start, finish) of the activity, which are the result of network

scheduling. The upper section of the detail screen can be used to edit

restrictions, in order to fix activities in schedule.

Return to the overview of the planning board. Use the Back icon.

Although the system adjusts the length of the time bar of activity 0010 in the

Gantt chart, the dates of the whole project are no longer up to date: the

longer duration of activity 0010 will affect the dates of its successors.

Therefore the project will be scheduled again, to determine the dates of

activities and WBS elements new. Schedule the project again.

To do so, use the select all icon, than use the schedule icon. Follow

the menu path: Edit ► Reconcile dates ► Extrapolate dates

If required select “Basic dates”.

Use the Save icon to save your entries. Confirm the Information Pop-up

and return to the Easy Access Menu by using the Back icon.

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Step 9: Post activity confirmations

Task Post activity confirmations for your project.

Short Description Use the SAP Easy Access Menu to post activity

confirmations for your project

Name (Position) Jamie Shamblin

Time 10 min

In the execution phase we post actuals (actual dates, actual costs, material

movements, capacity discharges) to the project. A prerequisite for the

posting of actuals is always the release of the concerning project object. We

have already released the entire project.

To post activity confirmations, follow the menu path:

Logistics ► Project System ► Project ► Project Planning Board ►

Change project

Menu path

This will produce the following screen:

If you receive an Pop-up please confirm the upcoming message with

.

Enter for Project def. P/2###, choose for Plan. board GBI-PS: Bikes and for

w. activities X. Open your project with the button.

P/2### GBI-PS: Bikes

X

Select activity 0010 on the left side. Use the Confirm activity icon.

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In the detail screen of the confirmation, use for the filed Actual: Start

today’s date, for Actual: Finish today’s date plus 3 weeks and enter for

Actual: Work 95. Leave the other field as they are.

today’s date today’s date plus 3

weeks 95

Use the Back icon to return to the overview of the project planning board.

Confirm any warning message. Use the select all icon. Use the

schedule icon.

Use the Save icon to save your entries and return to the Easy Access

Menu by using the Back icon.

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Step 10: Create single confirmation

Task Create a single confirmation.

Short Description Use the SAP Easy Access Menu to create a single

confirmation.

Name (Position) Jermain Kumins

Time 5 min

Follow the menu path:

Logistics ► Project System ► Information System ► Structures ►

Structure Overview

If required, enter in the PS Info Profile filed GL01000 and confirm with

Enter. In the selection screen enter for Project P/2### and leave the other

fields as they are.

Menu path

GL01000

P/2###

Use the Execute icon for the report. Use the deselect all icon. Select

activity 0020 on the left side.

To create a single confirmation for activity 0020 follow the path.

Menu Extras/environment ► Confirm ► Individual confirmation

In the detail screen of the confirmation, please enter for Actual: Start as

scheduled earliest start, for Actual: Finish as scheduled earliest finish and

for Actual: Work enter 42 instead of 40.

as scheduled earliest

start as scheduled earliest finish

42

Save your confirmation with the icon and return to the structure

information system. Refresh your data there . Leave the transaction

without saving.

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CASE STUDY

Step 11: Display actual cost reporting

Task Display the actual cost reporting.

Short Description Use the SAP Easy Access Menu to display the actual cost

reporting.

Name (Position) Silvia Cassano

Time 5 min

The actual costs will be analyzed using the cost element report.

To report, follow the menu path:

Logistics ► Project System ► Information System ► Financials ►

Costs ► Plan-Based ► By Cost Element ►

Actual/Commitment/Total/Plan in CO Area Currency

Menu path

If required, enter in database GL01000 and confirm.

GL01000

Enter in the selection screen for Project P/2###, in the Controlling Area

choose EU00, for Plan Version 0. Enter the current year for From fiscal

year and in To fiscal year enter the next year. By From period enter 1 and in

to period enter 12. Please delete all other field entries. Ex