SAP PS - Overview

Project System is one of the key modules of SAP to perform project and portfolio management. It helps you to manage the project life cycle starting from structuring to planning, execution, until the project completion. Project system is closely integrated with other SAP modules like logistics, material management, Sales and Distribution, Plant Maintenance, and Production planning module.

It enables organizations to manage all SAP projects- large and small-scale projects efficiently. The Project Manager has a task to ensure that these projects are executed within budget and time and to ensure that resources are allocated to the project as per the requirement.

Before a project is initiated, it is required that project goal is clearly defined and the activities be structured.

The integration between SAP Project System PS with SAP ERP R/3 application modules allows you to design, plan, and execute the projects as part of your normal project procedure. Hence, Project System module has the constant data access to all the departments involved in the project.

Classification of Projects

As per budget, projects can be categorized in the following categories −

  • External Financed Projects − This includes the projects which are sponsored by clients and are executed to meet the client requirements. These projects are called customer projects and project goal is aligned to meet the customer demand.

  • Internal Financed Projects − This includes project related to capital investment or overhead cost projects.

You can also categorize projects according to the list of activities and project structure or on the basis of individual activities −

  • Using Work breakdown structure WBS.
  • Using individual activities as per work packages.

In Project System, Work Breakdown structure and network diagram can be used to structure the project either in hierarchical order or in using network techniques. You can define key milestones and documents that allow you to monitor the progress of project and helps you to define key interest of individuals.

Project Structure can be defined either manually or based on templates. You can also create the Project structures using sales documents automatically.

In the following diagram, you can see the sample project structure that is created hierarchically using Work Breakdown structure.

Classification of Projects

Project System – Process Flow

In Project System, each process has a defined set of tasks to be performed. These tasks are known as process flow in Project Lifecycle.

When a project request is received, a project is created and it has to undergo the following steps in project process flow/lifecycle.

Following are the key steps involved in Project process flow −

  • Create Templates/WBS
  • Create Project
  • Project Planning
  • Budgeting and Release
  • Project Implementation
  • Project Completion

Here is a diagrammatic representation of the process flow of SAP PS −

Process Flow