Business scenario to implement SAP PPM
SAP PPM is the SAP component designed to manage corporate project portfolios.
There are various business cases where corporate projects can be managed based on their specific content.
We can categorize the different
Portfolios based on project content:
New Product Development Portfolio
IT Governance Portfolio
Engineering & Construction Portfolio
Sales & Commercial Portfolio
Public Sector Portfolio
Moreover, SAP PPM allows for the simultaneous management of multiple portfolios while keeping them independent from each other.
We are Fourteen TEC, one of the most qualified SAP partners in Italy in the implementation of SAP Portfolio and Product Management.
We have implemented SAP PPM in various processes for large multinational companies in the Discrete Manufacturing, Automotive, Process, and CPG sectors.
New Product Development Portfolio (or NPD) on SAP PPM
The Portfolio dedicated to New Product Development manages a set of projects for creating new products in R&D (Research and Development) or ETO (Engineer-to-Order).
In this type of Portfolio, the main activities include:
Evaluation of the Idea or Concept in the initial phase.
Definition of the Planned Budget and comparison with the Actual Costs.
Monitoring the phases of Design, Production, and Market Launch.
The Portfolio is highly accurate in project evaluation, with the definition of technical feasibility, assessment of commercial success probability, associated risks, and metrics.
If the evaluation is positive, detailed operational project definition proceeds, including the definition of activities up to market launch (R&D) or customer site installation (ETO).
During the Design, Production, and Launch phases, activities, involved company roles with corresponding resource staffing, checklists, and project milestones are defined.
In this type of Portfolio, as in the Engineering & Construction portfolio, integration with the PS/CO accounting module is extensively used, allowing calculation of all project costs and comparing them with the planned budget.
This enables the Portfolio Manager or company Board to assess projects as a whole and keep the budget objectives under control.
Portfolio IT Governance on SAP PPM
The Portfolio dedicated to ICT Governance manages all projects that can involve:
Procurement and maintenance of hardware or software.
Implementation, rollout, and maintenance of new applications.
In this type of Portfolio, it is also possible to define correlations between various projects to execute implementation Programs.
Managing Programs enables comprehensive analysis for multi-project management.
In ICT projects, it is common for activities to be assigned to carefully chosen resources based on their skills. Additionally, it is crucial to continuously monitor the critical path and dependencies among these activities in these projects.
Portfolio Engineering & Construction on SAP PPM
In Engineering & Construction projects, usually, all activities are defined and subcontracted to suppliers, and it is crucial for the project to be as accurate as possible in terms of costs and timelines.
The main activities carried out in this type of Portfolio are:
Definition of financial planning with budget approval.
Definition of all contracts and suppliers.
Definition of project phases, activities, and checklists.
Creation of snapshots to maintain a historical record of project changes.
The Portfolio, therefore, focuses primarily on cost management, defining and monitoring all execution phases, along with all related documentation.
Projects in the Engineering & Construction Portfolio are highly complex, which is why they are subject to extensions and modifications during the course of the work. These changes can be recorded through the creation of snapshots. Alternatively, it is possible to define project simulations to assess the effects of project changes in advance.
Portfolio Sales & Commerciale in SAP PPM
The Sales & Commercial Portfolio primarily focuses on gathering customer requests by the Commercial team.
Gathering all customer specifications, including necessary documentation.
Conducting an initial phase of approval and capacity verification for production.
Monitoring all production phases through decision points.
Defining all checklists required for production and market launch or product installation at the customer's site.
This type of portfolio is centered around management by the Board and Commercial team to assess and monitor business opportunities, quantifying the portfolio's value by business lines or geographic areas.
Facilitate Project Management: Key Points of SAP PPM
Depending on the type of Portfolio, it is possible to use and configure various functionalities of SAP PPM. In general, its strengths include:
Different types of usable Portfolios.
Implementation of multiple independent types of Portfolios.
Management of KPIs and questionnaires for project evaluation.
Documentation management.
Integration with other SAP objects such as orders, recipes, and bills of materials.
Possibility of having phases with approval and approvers.
Financial management and integration with accounting.
Management of activities and dependencies, and monitoring of the project's critical path.
Management and assignment of activities to internal or external resources.
Multi-project visualization.
Creation of project versions or snapshots
Fourteen TEC is a SAP Supply Chain consultancy specializing in PPM and PLM products and processes, operating throughout Europe and worldwide.
For over 10 years, Fourteen TEC has been focused on improving the efficiency, innovation and productivity of companies and multinationals, offering various solutions tailored to the customer, whatever their sector of activity.
You can contact us and schedule a meeting with one of our consultants.
