Project Cost Planning, Forecasting

and Reporting Solutions in SAP

enhanced by Noveco ePM 3.0

Business Challenges
Why Noveco ePM?
Solution Overview

Business Challenges
Symptoms:

Your Project System is a cost collector, not a planning-reporting

system
All planning, forecasting and reporting functions outside of SAP ERP

As a result:

You use fragmented and disconnected tools that are not

integrated with ERP system
High use of excel spreadsheets
Project Managers and Project Controllers make decisions that are
based on inaccurate or outdated data
Inaccurate Project Forecasting, leading to incorrect reports,
overspending, wrong prot recognition
No integrated system to record variations and issues
No information transparency and consistency
Lack of standardization of project delivery

Business Challenges
What are your options:

Continue using excel spreadsheets

Search for a third-party non-SAP product, integrate it
with SAP ECC
Follow your PS consultant recommendations to develop
complex solution in BI or BPC
Implement complex and expensive SAP CPM tool based
on BI-IP platform
Implement Noveco ePM solution in your SAP ERP system
(no BW, BI, BI-IP, BO or BPC are required)

Business Challenges
Why Noveco ePM?
Solution Overview

Why Noveco ePM

Noveco ePM is a family of seamlessly integrated software components designed to
complement and enhance SAP's standard Project System (PS) functionality, with a
focus on easy project planning, forecasting, variation management and reporting
directly in SAP ECC

Noveco ePM enables management of your project lifecycle directly inside your ERP
system (no other tools needed)
Execution

l Estimating
l Planning
l Budgeting

Efficient
Project
Management

Forecasting

Monitoring

l Reporting
l Analysis
l Settlement

Program and Project Management

Initiation

Short term

Long Term

Strategic & Operational Portfolio Management

Planning

Balancing

Execution

Monitoring

Business
Intelligence

Project management
Planning

Execution

Monitoring

Forecasting

Corporate Services
Financials &
Controlling

Project
Accounting

Procurement
Time recording

Human
Resources

Reporting:
Financials &
Resources on
Portfolio,
Program and
Project level

Program and Project Management

Program and Portfolio

Management

Initiation

Short term

Long Term

Strategic & Operational Portfolio Management

Planning

Balancing

Execution

Monitoring

Business
Intelligence

Project management

Project
Monitoring
Execution
Management

Planning

Forecasting

Corporate Services
Financials &
Controlling

Project
Accounting

Procurement
Time recording

Human
Resources

Reporting:
Financials &
Resources on
Portfolio,
Program and
Project level

Program and Project Management

Management
+ Project Management =

Initiation

Balancing

Planning

Execution

Monitoring

Business
Intelligence

Portfolio and Project

Management
Project
Forecasting
Monitoring
Planning
Execution
Management
(PPM)
Short term

Long Term

Strategic & Operational Portfolio Management

Program
and Portfolio
Program
and Portfolio
Management

Project management

Corporate Services
Financials &
Controlling

Project
Accounting

Procurement
Time recording

Human
Resources

Reporting:
Financials &
Resources on
Portfolio,
Program and
Project level

Program and Project Management

Initiation

Short term

Long Term

Strategic & Operational Portfolio Management

Planning

Balancing

Noveco ePM enables

Project Management
Execution
Monitoring
process
in your SAP
ERP system

Business
Intelligence

Project management
Planning

Execution

Monitoring

Forecasting

Corporate Services
Financials &
Controlling

Project
Accounting

Procurement
Time recording

Human
Resources

Reporting:
Financials &
Resources on
Portfolio,
Program and
Project level

Business Challenges
PS (Project System) is one of

Human
Resources
(HR)
Time Sheets
(CATS)
Sales
and customer
billing
(SD)

Accounting
(FI) and
Controlling
(CO)

SAP PS
+
Noveco ePM
Plant
Maintenance,
Customer
Service
(PM/CS)

Materials
Management
and
Procurement
(MM)

Production
Planning
(PP)

the most integrated modules

in SAP ERP

Noveco ePM enhances SAP

Capacity
and Resource
Planning

Project System enabling

integrated project
management directly in SAP
ECC

You will not need any other

tools like excel, BI, BO etc. to

manage your project
lifecycle in SAP.

Business Challenges
Why Noveco ePM?
Solution Overview
Create Project, Schedule Dates and Distribute Costs
Project Manager Workbench
Project Progress
Variations and Issues
Project Manager Portal

Project Management Lifecycle

Execution

l Estimating
l Planning
l Budgeting

Efficient
Project
Management

Forecasting

Create Project Stricture

Dates Scheduling
Cost and Revenue Planning
Budget approval
Cost Distribution

l Reporting
l Analysis
l Settlement

Monitoring

Create Project Structure, Schedule Dates

1. Create project using Project Builder

2. Schedule dates using Planning Board

Easy Cost Planning

is a simple way to plan cost on WBS or Network Activities

Easy Cost Planning is one

screen transaction where you

can view, enter and change
project plan costs

Plan: Labour, Materials, Plant,

Sub-contracts etc. in one screen

You can create cost plan on

multiple costing versions

When you change cost plan

values the total values updated

immediately

With ECP you can create cost plan on WBS or network activities
You can generate cost plan in ECP from external estimating
systems
Cost plan can be created using form-templates

Cost Planning with distribution

Network Costing

Cost Plan
Version: N03

Version: N01

or

Version: N02

Version: 000

Easy Cost Planning

SAP Project Planning Board MS Project ( Primavera)

Dates Plan

Automatic or Manual distribution of planned costs

Plan Cost
Distribution

Feb-15

Mar-15

Apr-15

Jun-15

Jul-15

Aug-15

Sept-15

Version: N02

Version: N03

Version: N01

Cost Plan

Version: 000

Cost Planning: Budget Approval

Cost Plan created (via Easy Cost Planning or Network Costing etc.)
Selected plan cost version is copied to Original Budget version and
locked for changes.
Original Budget values are copied to Forecast version to generate initial
Cost To Complete.
Forecast version represents project rolling forecasts and will be
managed by Noveco ePM

Approve
Original Budget

Original Budget

(locked for changes)

Version: BDG

Feb-15

Mar-15

Apr-15

Jun-15

Jul-15

Aug-15

Sept-15

Create Initial
Forecasts

Forecast To Complete

(will be managed by Noveco)

Version: FST

Feb-15

Mar-15

Apr-15

Jun-15

Jul-15

Aug-15

Sept-15

Revenue Planning

Version: 002

Version: 003

Revenue Plan

Version: 001

Version: 000

Create revenue Planning using SAP standard revenue planning

functions:
Detailed Planning
Sales Order with Billing Plan
WBS Revenue Planning with Billing Plan

Enter
Revenue Plan
By Period

Original Revenue Plan

(locked for changes)

Version: BDG

Feb-15

Mar-15

Apr-15

Jun-15

Jul-15

Aug-15

Sept-15

Business Challenges
Why Noveco ePM?
Solution Overview
Create Project, Schedule Dates and Distribute Costs
Project Manager Workbench
Project Progress
Variations and Issues
Project Manager Portal

Noveco ePM Workbench

Noveco Project Manager

workbench provides one
single integrated
environment to manage your
project directly in SAP ERP
There is no BW/BI, IP is
required
No Interfaces, no z-tables, no
external data storages etc.
All information is read from
and written to SAP ERP
directly

Project Manager Workbench: Plan by Period

You you can distribute your

cost plan manually be
period:

Current Budget
Cost To Complete
Purchasing Commitments

Project Manager Workbench: Plan by Period

You you can distribute

dierent cost types using
dierent pattern

Integrated Project Management in SAP

* Project Portal / Reporting

Prot Take (Result Analysis)

* Noveco Applications
Dashboard reporting

Portfolio Planning

Reporting
and
Analysis

Monitoring
Forecasting
Progress Tracking

* Project Manager Workbench

Planning
and
Execution
Project Builder

Cost & Revenue Planning

Project Dates Scheduling

Procurement, Time Sheets

Invoicing, Billing

* Project Variation Management

Project Management Lifecycle

Execution

l Estimating
l Planning
l Budgeting

Efficient
Project
Management

Forecasting

Procurement
Time Sheets
Progress assessment
KPI Monitoring
Forecasting (nancial re-planning)
Variations and issues

l Reporting
l Analysis
l Settlement

Monitoring

Project Actual Costs flow

Project

Time sheets

Expenses
&
other costs
SubContracted
Services

Equipment &
Materials
Direct

Material
Consumption
from stock

Project Manager Workbench: automatic recalculation of forecasts

Open Project

Automatically
recalculate Cost to
Complete
Calculate
Overheads on Cost
To Complete
Distribute Cost To
Complete
including OH
Recalculate
Estimated Cost at
Completion
Display
information on
integrated screen

By clicking Refresh Cost To Complete is

automatically reduced from actual costs and
commitments
Immediate and real-time integration with SAP
ERP

Manually change
Cost To Complete

Save Changes

Project Manager Workbench: integrated costing information

On a single click go to the actual line

items report from the workbench

View list of purchase orders with their remaining

commitment value. You can drill down to PO item details

Project Manager Workbench: integrated costing information

Although Cost To Complete is automatically

adjusted, you can manually change it if required

Noveco ePM Workbench:

Navigate to the top WBS to view aggregated

information.
Current Prot Margin reduced, because
Estimated at Completion increased

Project KPIs grouped by Cost Groups (Value Category)

Costing information is aggregated are grouped
for the selected project object:
By Value Category
Resource Type
Cost Element

Cost Grouping: Value Category, Resource Type

Value Categories

Resource Type

Cost Elements

Engineering &
Design

Designer
Structural Designer
System Designer

Engineer
Civil Engineer

Labour

Structural Engineer

Fitter
Constr.
Labour
Materials

View by Value Category: total and by period

Built-in report by Value Category
Graphs plots main cost KPIs by Period
Pie chart of Value Categories: Current Budget
vs. Estimated at Completion

View by Resource Type: totals and by period

Graphs plots Cost To Complete by Value
Category or Resource Type by Period
Pie chart of Resource Types: Current Budget
vs. Estimated at Completion

Business Challenges
Why Noveco ePM?
Solution Overview
Create Project, Schedule Dates and Distribute Costs
Project Manager Workbench
Project Progress
Variations and Issues
Project Manager Portal

Project Progress

Progress by Period for

selected project element

Overall Progress Data

Project Progress: change Actual POC

You can change Actual POC. So system can track:

Plan POC (calculated based on plan data)
Calculated POC (calculated based on actual data)
Actual POC (initially copied from Calculated POC and updated by user)

Business Challenges
Why Noveco ePM?
Solution Overview
Create Project, Schedule Dates and Distribute Costs
Project Manager Workbench
Project Progress
Variations and Issues
Project Manager Portal

Project Variations

You can view project variations in KPI tab as a

summary and in the project tree

Project Variations

Project Current Budget = Original Estimate + Variations

Project Variations

Drill down to variation

document

Review Variation history

Project Variations: cost variation example

Project Variation: revenue and cost variation example

You can Plan Costs and Revenue Variations within one Variation document
Plan Variation Protability
Assign Costs and Revenue plan to dierent project WBS or Network activities
Status Control to automatically update project Revenue, Budget and Forecast

Business Challenges
Why Noveco ePM?
Solution Overview
Create Project, Schedule Dates and Distribute Costs
Project Manager Workbench
Project Progress
Variations and Issues
Project Manager Portal

Project Management Lifecycle

Execution

l Estimating
l Planning
l Budgeting

Efficient
Project
Management

Forecasting

Project Reporting
Portfolio and Program Reporting
Analysis
Long Term planning and forecasting

l Reporting
l Analysis
l Settlement

Monitoring

Project Report: Example

SAP Project Hierarchy reports
can be tailored to view project
nancial information produced
by Noveco ePM.
All information from the
Workbench is stored in SAP
standard info system and can
be extracted to BW/BI and
other reporting tools using
standard extactors
Noveco ePM delivers
comprehensive reports (see
next slide)

Project Manager Portal Inside SAP ERP

Noveco ePM Portal presents all projects
assigned to a project manager

Personalized project selection is created,

saved and remembered by the system

Projects exceptions and Key Performance

Indicators are displayed against each
project
Graphical representation of project KPIs

For all project portfolio

Selected project(s), WBS or network activity

Drill down to key business transactions:

Project Builder, Project Manager
Workbench, reports, line items

Did you know? :

That you dont need BW/BI system to run comprehensive reports like this one above?
PS info-system has been designed to hold all related project information. BW cubes simply
mirror PS info-system inside BI

Project Manager Portal Inside ECC

Displays cumulative
values of:
- Budget, Estimated costs

at Completion (EAC), Cost

To Complete (CTC),
Revenues, Actual costs,
Commitments

Values are presented

By entire portfolio
(group of projects) or
by selected project or
WBS

Project Manager Portal Inside ECC

Displays historical
trends from the
beginning of the
portfolio (or project)

Budget, Estimated
costs at
Completion (EAC),
Cost To Complete
(CTC), Revenues,
Prot Margin

You can see how

your portfolio or a
project evolved over
time
Values are presented
by entire portfolio
(group of projects) or
by selected project
or WBS

Project Manager Portal Inside ECC

Review your
Budget, Cost To
Complete and
Estimated Cost at
Completion by
Value Categories
by Period

Company

Program and
Portfolio
Management

Integrated
Project
Management

Corporate Services and

day-to-day business operations

Strategy
analysis

Projects Execution

Detailed project
management
information produced
and managed in SA
ERP provides a solid
foundation for
analytical program
reports in PPM or IM

Set Strategy

Integrated Company view

Noveco System Architecture

No middleware (BI, BO etc.)

No interfaces

No custom tables

Always real-time

Rich functionality

Automatic forecasting

Simple and intuitive interface

Minimum training

Quick implementation

Integrated Project Management in SAP

* Project Portal / Reporting

Prot Take (Result Analysis)

* Noveco Applications
Dashboard reporting

Portfolio Planning

Reporting
and
Analysis

Monitoring
Forecasting
Progress Tracking

* Project Manager Workbench

Planning
and
Execution
Project Builder

Cost & Revenue Planning

Project Dates Scheduling

Procurement, Time Sheets

Invoicing, Billing

* Project Variation Management

Result Analysis

Monitoring,
Forecasting,
Variations,
Progress

Execution

Company Strategy
Planning

Program Portfolio
Planning

Analysis,
Resourcing
Reports

Strategic
Planning

System Landscape including Noveco

Noveco

Estimation
Budget values

Time Sheets, Invoices

Actual Costs

Resource
Planning

PS Information
System

Sales Orders
Revenue

Transactional System

Business
Intelligence

Project Manager Workbench

Automatic Forecasting
Manual adjustment of CTC or Work TC
Progress Analysis
Exception and drill down reporting
Integrated variations into cost forecast
Forecast history

Purchase Orders,
Commitments

Variations

ePM Project Cost Forecasting, Progress and Variation Management

Project Manager Workbench provides one central place to review KPIs, update
forecasts, track and update progress, execute analytical and drill down reports

Complete Cost and Work To Complete management: Automatic reduction and

Manual adjustment

Instant Integration with ECC transactions: PO, time sheets, invoices etc.

Forecasting results are immediately available for Result Analysis, Progress Analysis,
PS Reports and BI (no custom interfaces needed to native SAP reports)

Period Sensitive Forecasts: designed for month end forecasts in live transactional
system

Saves project forecast history w/o need to perform version copy by the user

Project Costs Forecasts integrated with PM/CS and PP orders

Integrates Project Variations into cost forecasting and budgeting

No modications to SAP standard core applications. No z-tables to keep forecasts

costs, all data read/written from/to SAP standard database.

Business Value of Integrated Project Forecasting in SAP

Connects upstream (estimating, procurement, timesheets) and downstream (monitoring,

resource allocation, analytical reports) activities of project management lifecycle

Closes the loop between execution and analysis processesproviding 360 degree ow of
information

Replaces spreadsheets and other third party tools with centralized SAP database

Reduces amount of eort required to produce project forecasts and analytical reports

Reduces number of interdependent systems and interfaces needed; reduce costs of

maintenance and support of systems other then SAP

Decreases potential for errors of data entry and manipulation

Improves quality, transparency and accuracy of data

Allows potential savings and process eciency by relieving Project Managers from performing
routine transactional and administrative activities.

Integrates Resource (personnel) Planning into project planning and forecasting

Determine realistic project progress

Unleashes the true power of integrated SAP system

SAP Customers running Noveco ePM

Rawson Group
rawsonhomes.net.au
Industry: Residential construction
Powercor/CityPower
powercor.com.au
Industry: Utility, Construction
Sedgman
sedgman.com
Industry: Mining Construction
TRILITY
trility.com.au
Industry: Utility, Construction
Hydro Tasmania
www.hydro.com.au
Industry: Utility, Construction

Integrated Project Management

MM HR
PM

PS

SD

FI

Costs
Forecasting

Progress
Analysis

CO

Integrated Project
Management in SAP

Variation
Management

Project
Manager
Workbench

For more information visit Noveco Systems on

www.novecosystems.com