SAP Project System (PS) is a robust module designed to manage complex projects by enabling detailed planning, execution, and monitoring. One of the core strengths of SAP PS lies in its flexible and hierarchical project structuring capabilities, allowing organizations to model projects in a way that reflects their unique business requirements.
While the basic project structure consists of simple elements like Project Definition, Work Breakdown Structure (WBS), and Networks, advanced project structures take this a step further—incorporating complex hierarchies, relationships, and integration scenarios that cater to large-scale and multifaceted projects.
This article explores advanced project structuring concepts within SAP PS, key features, and best practices to help organizations optimize project management.
- Project Definition: The top-level element that represents the overall project.
- Work Breakdown Structure (WBS): Hierarchical breakdown of project deliverables into manageable components.
- Networks and Activities: Activities represent tasks and are grouped within networks, which define dependencies and scheduling logic.
Advanced project structures involve extending and optimizing the basic PS hierarchy by:
- Using multi-level WBS hierarchies for detailed planning.
- Incorporating multiple networks and interdependent activities.
- Integrating milestones and internal orders.
- Utilizing reference projects and project templates for reuse.
- Applying multiple account assignments and settlement rules.
- Leveraging project versions and project revisions for change management.
- Projects can be structured into numerous nested levels, providing granular control.
- Each WBS element can represent a deliverable, phase, or work package.
- Allows for detailed cost and revenue planning, progress tracking, and reporting at each level.
¶ 2. Network and Activity Complexities
- Multiple networks within a project enable parallel task management.
- Activities can be linked via dependencies (e.g., finish-to-start, start-to-start).
- Activities can include milestones for tracking significant events.
- Enables detailed resource planning and scheduling using integration with SAP Capacity Planning.
¶ 3. Use of Reference Projects and Templates
- Reference projects are pre-defined project structures that can be copied to create new projects.
- Templates ensure consistency and reduce setup time for recurring project types.
- Helps enforce best practices and standardization across projects.
¶ 4. Account Assignment and Budgeting Flexibility
- WBS elements and network activities serve as account assignment objects for procurement, time confirmations, and cost postings.
- Supports multiple currencies, funding sources, and budget profiles.
- Enables sophisticated budget control and commitment management.
¶ 5. Project Versions and Revisions
- Enables maintaining different versions of a project structure (e.g., planned vs. actual).
- Supports scenario planning, “what-if” analysis, and change control.
- Tracks changes over time, facilitating audit trails and approvals.
- Materials Management (MM): Procurement linked to WBS or activities.
- Financial Accounting (FI): Cost postings and settlement.
- Controlling (CO): Budget management and internal orders.
- Plant Maintenance (PM) & Sales & Distribution (SD): For project-related maintenance and billing.
- Enhanced Project Visibility: Detailed breakdowns allow stakeholders to track progress and costs with precision.
- Improved Resource Allocation: Granular activities and dependencies optimize scheduling and resource utilization.
- Standardization: Use of templates and reference projects ensures consistency across multiple projects.
- Better Change Management: Versioning helps manage project changes effectively without losing historical data.
- Tighter Budget Control: Advanced budgeting and commitment management improve financial discipline.
- Start with a clear project breakdown: Define deliverables and milestones upfront.
- Use templates wisely: Standardize but allow flexibility for unique project requirements.
- Leverage network dependencies: Model realistic task sequences and parallel activities.
- Maintain proper documentation: Track changes and approvals using versions and revisions.
- Integrate with procurement and finance early: Align project execution with material and cost flows.
- Train users: Ensure team members understand complex structures and tools for effective usage.
Advanced project structures in SAP PS empower organizations to handle the complexities of large and dynamic projects. By utilizing multi-level WBS hierarchies, multiple networks, reference projects, and sophisticated budgeting and control mechanisms, SAP PS facilitates detailed planning, execution, and monitoring. Mastering these advanced concepts is essential for project managers and SAP consultants seeking to deliver projects efficiently while maintaining strong cost control and compliance.