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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
Connected
Project
Management in
the Oil, Gas &
Chemicals
Industry
Defining
the digital future of
capital projects
2. - 2 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
Executive Summary 3
Challenges In The Oil, Gas & Chemicals Industry 4
Capital Project Management Overview
What Is Capital Project Management?
What Are Some Of The Leading Practice Reports and Dashboards?
What Value Would An Organization Derive From An Implementation?
How Does An Organization Decide Which Technology Platform To Use?
5
6
10
13
14
How Can SAP Help?
Power Of SAP S4/HANA To Enable Capital Project Management
Solution Suite
Customer Successes
16
17
23
24
Final Thoughts 27
TABLE OF CONTENTS
3. - 3 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
EXECUTIVE SUMMARY
The Digital Project Revolution
Oil, Gas & Chemicals is a capital intensive industry that has as a fundamental business requirement to increase project
profitability for all capital projects. Why? Most companies are experiencing:
1. Increasing shareholder expectations and compliance requirements
2. A higher than acceptable rate of project budget overruns, delays, and even project failures
3. Increasing project complexity and shortening of delivery dates for projects
4. An increasing level of fragmented process and data management
The most effective approach to achieving this requirement of increased project profitability is by gaining improved insight
and control and optimized process efficiency within each of the capital projects and across the investment portfolio.
This approach also drives a reduction in project risk through improved transparency and data consistency. As a result, each
capital project team is able to achieve better quality and faster response times enabled via enhanced process
standardization and flexibility.
SAP is committed to partnering with its customers as they transform into digital Oil, Gas & Chemical companies by helping:
1. Reimagine business models to find new revenue and profit sources by offering innovative approaches to addressing
market challenges
2. Reimagine business processes and use digital technology to optimize business outcomes by converging information and
operational technologies
3. Reimagine the role and structure of the workforce to support future business by incorporating wearable technology, 3D
printers, and geospatial technologies
Our vision is to help the Oil, Gas & Chemicals industry digitally transform in order to drive profitable growth, build customer
intimacy and grow talent. This document offers our point of view on how Capital Project management must be
implemented, how SAP can help and some of the leading practices we have seen.
MonitoringStrategy
Project
Proposal
Project
Planning
Procurement Execution1 2 3 4 5
Enterprise Project Portfolio Management Process
Technology Platform
Project Management
4. - 4 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
CHALLENGES IN THE OIL, GAS & CHEMICALS INDUSTRY
The New Normal
There are 5 major trends that we see in the Oil, Gas & Chemicals industry when it comes to Capital projects:
LABOR SHORTAGE
There is a greater need for reallocation of work, that
considers staffing/sourcing solutions for point or
transactional skills thereby releasing scarce talent. This
requires a change in operating model related to contingent
labor management enabling the active management of the
contractor workforce.
EVOLVING CONTRACTING MODELS
Contracting models that vary depending on scope,
location, local content, resource availability (operator and
contractor), financing etc. and the use of service
intermediaries to support vendor management, contract
management and claims management.
GLOBAL PURCHASING POWER
High in-country labor costs, skill availability, in-country
fabrication capacity and complex technologies have seen a
movement towards offshore fabrication and modular
development. This manifests itself in the development of
an international purchasing organization, low cost country
sourcing strategies and distributed development teams.
DATA CONSISTENCY
Common applications that enable migration of staff
between projects and a common application, technical and
data architecture supports portfolio and project reporting
and decision making. Integration ensures less process
handoffs and improves data integrity.
FACT BASED DECISION MAKING
Tools and decision support centers that enable the
visualization of project data for timely decision making and
the use of analytics to understand leading and lagging
indicators. This capability is enabled through the common
toolset and associated data model.
5. - 5 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
REIMAGINING
What is Capital Project Management?
“To manage their projects, oil, gas and chemicals project professionals
today typically use their own spreadsheet-based, custom-developed
applications; these fragmented solutions are not connected to
corporate systems. As a consequence, project managers often find it
difficult to get up-to-date and real-time information on projects, detect
project risks, and obtain the current project status. In addition, they
tend to spend a great deal of time manually consolidating data from
different sources – or be forced to make high-risk decisions based on
inaccurate or outdated data.”
Ken Evans, Vice President Oil and Gas Industry Business Unit, SAP
- 5 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
6. - 6 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
CAPITAL PROJECT MANAGEMENT OVERVIEW
What Is Capital Project Management?
We define Project management as the application of
processes, methods, knowledge, skills and experience
to achieve the project objectives. Capital Project
Management is the foundation on which Business
Strategy and Portfolio management sit on.
Our definition breaks Capital Project Management down
into six interdependent capabilities namely:
1. Project Planning and Execution which is defined as
the guiding principles that an organization uses to
plan, forecast and execute projects while remaining
focused on program goals, addressing appropriate
risks and fulfilling stakeholder requirements.
2. Resource Management which is defined as
anticipating and capturing resource demand,
Sourcing and
Procurement
Human
Resources
Project Planning and Execution
Engineering
Management
Resource
Management
Contract
Management
Procurement
Analytics
Supplier
Management
Invoice and
Payables
Management
Operational
Purchasing
Workforce
Planning
Career and
Talent
Management
Scope
Management
Schedule
Management
Quality
Management
Governance
Communication
Management
Cost
Management
Risk
Management
Time
Management
Simulation and
Analysis
Engineering
Data
Management
Engineering
Design
Resource Supply
and Demand
Forecast
Resource
Assignments
Contractor
Labor
Management
Capital Project Management
Change
Management
Project
Closeout
Enterprise
Stage Gate
Management
Finance and
Accounting
Knowledge
Management
Reporting and
Visualization
assigning the right skilled resources to the right projects and augmenting the project with contractors should there be a
shortage of employees.
2. Engineering Management which is defined as the application of engineering principles for the effective planning and
efficient operations of managing a project, manufacturing or industrial operations.
3. Sourcing and Procurement which is defined as an approach to supply chain management that formalizes the way
information is gathered and used so that an organization can leverage its consolidated purchasing power to find the best
possible values in the marketplace.
4. Human Resources which is defined as the continual process used to align the needs and priorities of the organization
with those of its workforce while also maintaining and managing the talent pool.
5. Enterprise which is defined as all the activities that support the management of capital projects from Knowledge
Management to Collaboration to Financial Management and Reporting.
7. - 7 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
CAPITAL PROJECT MANAGEMENT OVERVIEW
What Is Capital Project Management?
Each capability contains specific disciplines that need to be mastered. For each of the six capabilities, there are multiple sub-
capabilities that make up the process map that support the end to end Enterprise Project Portfolio Management Process as
defined by SAP.
Sub-Capability Description
Governance
Defined as the processes, tools and activities that identifies how one can ensure
decision making and delivery management are focused on achieving program goals in a
consistent manner, addressing appropriate risks while fulfilling stakeholder
requirements.
Scope Management
Defined as all of the services to be provided as a program. Identifies the deliverables,
and estimates the risks while establishing clear achievable objectives.
Schedule management
Defined as the process of developing, maintaining and communicating schedules for
time and resource.
Cost Management
Defined as the processes, tools and activities involved in identifying the program's
financial sources and resources, integrating the budget of individual program
components, estimating and developing the overall budget for the program and
controlling the costs so that the program can be completed within the approved budget.
Change Management
Defined as the process of requesting, determining attainability, planning and
implementing changes to a project (engineering or project change request).
Time Management
Defined as the process of capturing actual time spent on an activity that is captured in
the project plan. This allows one to track actuals vs. forecasts for time spent on
completing an activity.
Risk Management
Defined as the processes, tools and activities that aids in identifying, evaluating, and
responding to program risks that are either through internal or external factors.
Quality Management
Defined as the processes, tools and activities of the performing organization that
determine quality policies, objectives and responsibilities so that the program will
satisfy the needs for which it was undertaken.
Communication Management
Defined as the processes, tools and activities for ensuring timely and appropriate
generation, collection, distribution, storage, retrieval and ultimate disposition of
program information.
Project Closeout
Defined as the process or activities associated with finalizing the hand off of
the project deliverables to the business team and completing the administrative aspects
of closing the project.
Capability – Project Planning and Execution
8. - 8 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
CAPITAL PROJECT MANAGEMENT OVERVIEW
What Is Capital Project Management?
Sub-Capability Description
Resource Supply and Demand
Forecast
Defined as the process of forecasting the resources required to execute a project,
comparing demand against available resources and identifying the resource gaps.
Resource Assignments Defined as the process of assigning named resources to a project.
Contractor Labor Management
Defined as the process of identifying and managing the contractors that are required to
execute a project.
Capability – Resource Management
Sub-Capability Description
Engineering Data Management Defined as administration of documents or data related to engineering applications.
Engineering Design Defined as the process of devising a process unit to meet desired needs.
Simulation and
Analysis
Defined as the usage of simulation tools that are used for the design, development,
analysis and optimization of technical processes such as refineries, chemical plants,
power stations, complex manufacturing operations, and similar technical functions.
Capability – Engineering Management
Sub-Capability Description
Operational Purchasing
Defined as the activity of supporting the operational purchaser holistically across all
buying activities such as finding an appropriate source of supply, processing purchase
requisitions, and creating and processing purchase orders.
Contract Management
Defined as the automated and manual processes for source assignments to operational
demands, by using source lists and purchase information records.
Capability – Sourcing and Procurement
9. - 9 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
CAPITAL PROJECT MANAGEMENT OVERVIEW
What Is Capital Project Management?
Sub-Capability Description
Invoice and Payables
Management
Defined as the process to create supplier invoices with or without reference to a
purchase order; view and instantly correct inaccurate supplier invoices.
Supplier Management
Defined as the process to classify and manage suppliers using attributes and master
data along with the continuous activity of supplier development.
Procurement Analytics
Defined as the ability of an organization to generate real-time insights into supplier
spend, evaluations and scores, and contracts while instantly spotting and addressing
gaps in suppliers’ performance in order to prevent the loss of business opportunities.
Capability – Sourcing and Procurement (continued)
Sub-Capability Description
Workforce Planning
Defined as the continual process used to align the needs and priorities of the
organization with those of its workforce to ensure it can meet legislative, regulatory,
service, production requirements and organizational objectives.
Career and Talent
Management
Defined as the process of using strategic human resource planning to improve business
value and to make it possible for organizations to reach their goals.
Capability – Human Resources
Sub-Capability Description
Stage Gate Management
Defined as a phase-gate model, also referred to as a stage-gate process in which a
project is divided into stages or phases, separated by gates.
Finance and Accounting
Defined as the field of accounting concerned with the summary, analysis and reporting
of financial transactions pertaining to a business.
Knowledge Management
Defined as the process of creating, sharing, using and managing the knowledge and
information of an organization.
Reporting and Visualization
Defined as the reports and views that will enhance visibility of project status, thus
allowing teams to be aware of areas within the project that are on or off track.
Capability – Enterprise
10. - 10 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
CAPITAL PROJECT MANAGEMENT OVERVIEW
What Are Some Of The Leading Practice Reports and Dashboards?
Capital Projects can be evaluated countless ways, but companies experience diminishing returns when criterias are
redundant and overly complex. The main goal of these reports is to enable decision making with relevant and timely
information.
Some of the leading practice reports that have been used by companies are:
Reports Description
Project Status Report
Allows decision makers to see how a project is progressing
throughout the different stages of a capital project.
Scope Management
Change Order Status – Identify number of change orders
requested for the project.
Change Order Impact – Identify costs of change orders
requested for the project.
Schedule Management
Allows decision makers to see how a project is progressing
throughout the major activities namely engineering,
procurement and construction.
11. - 11 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
CAPITAL PROJECT MANAGEMENT OVERVIEW
What Are Some Of The Leading Practice Reports and Dashboards?
Reports Description
Cost Performance Index
A measure of the efficiency of expenses spent on a project.
Cost performance index (CPI) is the ratio of earned value
(EV) over actual costs (AC); therefore, CPI is equal to EV
divided by AC.
Schedule Performance index
Schedule performance index (SPI) is the ratio of the earned
value (EV) to the planned value (PV). If the SPI is less than
one, it indicates that the project is potentially behind
schedule to-date whereas an SPI greater than one,
indicates the project is running ahead of schedule.
Estimate at Completion (EAC)
Estimate at Completion (EAC) forecasts the total effort,
from start to finish, to complete a task, and deliver the
project based on actual performance to date and project
team estimates.
Estimate To Complete (ETC)
Estimate to Complete (ETC) is the remaining work of the
project.
12. - 12 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
CAPITAL PROJECT MANAGEMENT OVERVIEW
What Are Some Of The Leading Practice Reports and Dashboards?
Reports Description
Engineering Progress
This indicator gives evidence of the progress of engineering
activities of a project taking into consideration the ratio
between the number of project released deliverables and
the related total number of deliverables to be released (e.g.
isometrics, P&IDs, etc.)
Material Availability
Highlights how current supply meets current & forecasted
demand by commodity code. Formula - ((Available Supply
- (Current + Forecasted demand) )/ Available Supply)*100
Quality Management:
Indicator on the percentage or number of non-conformities
opened by internal and external audit.
Safety
Number of days without lost time incident.
13. - 13 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
CAPITAL PROJECT MANAGEMENT OVERVIEW
What Value Would An Organization Derive From An Implementation?
By implementing Capital Project management; an organization can realize quantifiable value across the following areas:
Value Driver
(Source – SAP Performance Benchmarking)
Estimated Improvement Ranges
Low High
Improved capital project proposal approval rate 5% 10%
Increased revenue through faster completion of projects 10% 20%
Reduced project cost overruns 20% 30%
Reduced capital projects management cost 20% 30%
Reduced billable revenue from change requests that is
rejected by clients
20% 30%
Improve user compliance and ease namely Guided End-User
buying
5% 10%
Increase sourcing savings – better unit price reduction 10% 15%
Improve Transactional Procurement FTE Productivity 15% 20%
Improve Invoice Receipt and Processing FTE Productivity 15% 20%
Improved supplier compliance 5% 10%
Improve days payable outstanding 2 days 5 days
Reduce cost by improving contingent labor spend under
compliance
10% 15%
Improve statement of work (SoW) project cost savings
through better rate negotiation
10% 15%
Reduce Accounts Payable Error Reduction 5% 6%
Increase Sourcing Savings by Enhanced Supplier Visibility 10% 15%
14. - 14 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
CAPITAL PROJECT MANAGEMENT OVERVIEW
How Does An Organization Decide Which Technology Platform To Use?
Organizations should take a holistic approach when deciding on which technology platform to use. Requirements need to be
looked at from two broad categories:
1. Functional and
2. Technical
For Functional requirements; there are six categories on which a technology platform need to be assessed on:
Functional requirement category Key question(s) to be ask
1. Project Planning & Execution
How well does the technology platform support the
management of scope, costs, schedule and change
management components with respect to executing a
project? How well does the tool represent and track
(hierarchical) interdependencies? How well does the tool
tie a project back to Portfolio strategy?
2. Resource Management
How well does the technology platform support resource
forecasting, allocation and time tracking?
3. Engineering Management
How well does the technology platform support
management of engineering information such as P&IDs,
CAD models and simulation calculations?
4. Sourcing and Procurement
How well does the technology platform allow an
organization to source and procure assets globally?
5. Human Resources
How well does the technology platform support the talent
management and career development of employees
assigned to a project?
6. Enterprise Functions
How well does the technology platform support the
integration with other business functions such as finance
and accounting?
15. - 15 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
CAPITAL PROJECT MANAGEMENT OVERVIEW
How Does An Organization Decide Which Technology Platform To Use?
For Technical requirements; there are six categories on which a technology platform need to be assessed on:
Technical requirement category Key question(s) to be ask
1. Reporting
How well does the technology platform support the
customization of personal and customized dashboards,
charts and diagrams, custom reports and report
templates, searching and filtering functionalities, save
customised reports, multiple export formats, e-mail alerts,
KPI and financial reporting?
2. Accessibility & Security
How well does the technology platform enable access
restrictions and flexibility of security concept, accessibility
via web and support of single sign on?
3. Localization & Languages
How well does the technology platform enable the usage of
multiple currencies, multiple regional calendars, multiple
region support and calculation of exchange rate effects?
4. External Interfaces
How well does the technology platform integrate with
other project management tools such as MS Project,
Oracle Primavera, Outlook / LDAP integration, export to
common desktop applications, integration with common
financial applications, common help desk applications,
common requirements management tools, and web-
portals for publication?
5. Modularity & Adaptability
How easy is it configure and/or customize the technology
platform?
6. Document Management
How easy is it for the technology platform to store and
archive documents, workflow integration and standard
interface to document management systems?
16. - 16 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
IMPLEMENTING
“While a high percentage of project profitability is determined at the
bid stage, around half of all projects are not delivered to plan ‒ in
fact, on average, twenty percent of project value is at risk.”
Chakib Bouhdary, Chief Transformation Officer, SAP
- 16 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
17. - 17 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
HOW CAN SAP HELP?
Power Of SAP S4/HANA To Enable Capital Project Management
SAP is positioned to help Oil, Gas & Chemical companies in managing capital projects through our HANA platform. The
following use case highlights how SAP can take a project from Planning to Execution using the Enterprise Project Portfolio
Management Process:
MonitoringStrategy
Project
Proposal
Project
Planning
Procurement Execution1 2 3 4 5
Enterprise Project Portfolio Management Process
Process Stage /
Use Case Step
User Interface
S4/HANA Suite /
Solution Capabilities
Identify
Opportunities
Submit project proposals
Follow simplified process with decision
points / gates
Enter basic project data
Enter expected timeframe & costs
Add attachments
Send for review
Create a Project
Structure the project with
WBS elements
Networks
Network activities
Milestones
Progress tracking events
Schedule activities
Versions and Simulations
SAP Enterprise Project Connection
allows customers to integrate with 3rd
party tools such as MS Project, Oracle
Primavera thereby preventing the
need to duplicate efforts
Strategy
Project
Proposal
Project Proposal
Project Process
SAP S/4HANA
RESEARCH &
DEVELOPMENT
SAP S/4HANA
RESEARCH &
DEVELOPMENT
Create Project
Project Plan
18. - 18 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
Power Of SAP S4/HANA To Enable Capital Project Management
Process Stage /
Use Case Step
User Interface
S4/HANA Suite /
Solution Capabilities
Conduct Financial
Planning at Project
and Portfolio Level
High-level financial and capacity
planning
Roll-up planning on bucket level
Flexible planning periods
Distribution functions
Embedded analytics
ERP integration
Plan Resource
Requirements and
Costs
Plan project costs and resource demand
Using flexible excel based user
interface
Maintain versioning
Transfer to operative project
Conduct forecasting
ERP Integration
Direct creation of project from
portfolio item
Synchronize attributes and status
between portfolio item / project and
portfolio item decision point / WBS
elements or network activities
Enhanced financial and capacity data
integration including financial
download options
MonitoringStrategy
Project
Proposal
Project
Planning
Procurement Execution1 2 3 4 5
Enterprise Project Portfolio Management Process
Project
Planning
Project
Planning
Project Level Financial Planning
Portfolio Level Financial Planning
Financial Planning
HOW CAN SAP HELP?
SAP S/4HANA
RESEARCH &
DEVELOPMENT
SAP S/4HANA
RESEARCH &
DEVELOPMENT
SAP S/4HANA
FINANCE
Project
Planning
SAP S/4HANA
FINANCE
Resource Management
19. - 19 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
Process Stage /
Use Case Step
User Interface
S4/HANA Suite /
Solution Capabilities
Review Material
Shortage
Review project material requirements
Review material shortage
Enter material order
Analytics and
Insights
Check budget overview
Check average supplier delivery
performance
Review detail report
Select Supplier
Choose best supplier
Complete material order entry
Power Of SAP S4/HANA To Enable Capital Project Management
MonitoringStrategy
Project
Proposal
Project
Planning
Procurement Execution1 2 3 4 5
Enterprise Project Portfolio Management Process
Procurement
Procurement
Procurement
Material Order Review
Review Shortages
Select Supplier
HOW CAN SAP HELP?
SAP S/4HANA
SOURCING &
PROCUREMENT
SAP S/4HANA
SOURCING &
PROCUREMENT
SAP S/4HANA
SOURCING &
PROCUREMENT
20. - 20 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
Process Stage /
Use Case Step
User Interface
S4/HANA Suite /
Solution Capabilities
Execute Change
Requests and
Identify Issues
Using S4/HANA Workflow and Analytics
Identify project issues
Create and execute project changes
Conduct cost impact assessment
Identify Risks
Using S4/HANA Workflow and Analytics
Identify risks
Conduct financial impact of risk
Conduct risk scoring
Review and agree on risk mitigation
approach
Engineering
Management
Central platform enabling systems
engineering and mechatronics
Engineers single user interface
Create bill of materials
Central access point to all data
Platform for integrating design tools
MCAD/ECAD. Multi-CAD PMI Support
Technical data package (TDP)
publishing
Visual work instructions and
procedures
Power Of SAP S4/HANA To Enable Capital Project Management
Execution
Execution
Execution
HOW CAN SAP HELP?
MonitoringStrategy
Project
Proposal
Project
Planning
Procurement Execution1 2 3 4 5
Enterprise Project Portfolio Management Process
Create Change Requests
Issue Management
Risk Management by Project
SAP S/4HANA
RESEARCH &
DEVELOPMENT
SAP S/4HANA
RESEARCH &
DEVELOPMENT
SAP S/4HANA
RESEARCH &
DEVELOPMENT
Manage Engineering Drawings
21. - 21 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
Process Stage /
Use Case Step
User Interface
S4/HANA Suite /
Solution Capabilities
Review and
Confirm
Contingent Labor
Using SAP Fieldglass
Create, distribute and interview
candidates
Create and activate work order
Contractors submit time and
expenses; organization pays and
exports to accounts payable
Onboard, Train
and Retain Capital
Project Skilled
Workforce
Using SAP SuccessFactors manage
Employee through one tool
Create and track performance goals
and compensation
Hire, onboard and retain talent
Provide a platform for learning
Conduct workforce planning and
analytics
Submit and
Review Travel and
Expenses
Using SAP Concur manage
Travel – book anytime, anywhere on
convenient web and mobile
applications
Expense – get visibility from receipt
capture to reimbursement. Manage
expenses anytime, anywhere
Invoice – Validate spend before
it happens. Capture all spend
via paper and electronic invoices. Pay
vendors on your schedule. Maximize
supplier savings
Power Of SAP S4/HANA To Enable Capital Project Management
Execution
Execution
Execution
HOW CAN SAP HELP?
MonitoringStrategy
Project
Proposal
Project
Planning
Procurement Execution1 2 3 4 5
Enterprise Project Portfolio Management Process
SAP S/4HANA
HUMAN RESOURCES
SAP S/4HANA
SOURCING &
PROCUREMENT
SAP S/4HANA
SOURCING &
PROCUREMENT
Book Travel
Claim Expenses and Pay Invoice
Manage Employees
Review Labor Shortage
22. - 22 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
Process Stage /
Use Case Step
User Interface
S4/HANA Suite /
Solution Capabilities
Monitor Individual
Project
Using S4/HANA Workflow and Analytics
Compare planned, forecasted and
actual values
Review individual projects and view
detailed project information
Drilldown into financial documents
Conduct milestone trend analysis
Monitor Portfolio
of Projects
Monitor portfolio of projects
Using dashboards and KPIs
Set alerts for budget, schedule,
staffing, risk etc.
Review planned vs. actuals
Aggregate information on various
portfolio levels
Reporting layout can be designed by
business user
Monitor Projects
at a Company’s
Board Of Directors
Level
Monitor portfolio of projects at Board
level using SAP’s Digital Boardroom
application
One experience and one view of your
business
Use Board of Directors agenda topics
to view reports and gain insights real-
time
Power Of SAP S4/HANA To Enable Capital Project Management
MonitoringStrategy
Project
Proposal
Project
Planning
Procurement Execution1 2 3 4 5
Enterprise Project Portfolio Management Process
HOW CAN SAP HELP?
Monitoring
Monitoring
Monitoring
Fiori based Project dashboard
Portfolio Review
Digital Boardoom
SAP S/4HANA
RESEARCH &
DEVELOPMENT
SAP S/4HANA
RESEARCH &
DEVELOPMENT
SAP S/4HANA
ENTERPRISE
MANAGEMENT
23. - 23 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
HOW CAN SAP HELP?
Solution Suite
The above use case highlights how SAP’s S4/HANA solution suite utilizes the digital core to:
SAP S4/HANA is able to the execute on the above by using our solution offerings that touches on every aspect of an
organization’s line of business:
Immediate
Business
Empower users doing business with insights to act in the moment – anywhere,
anytime
Intelligent and
Smart Business
Provide an user with predictive suggestions and simulations based on pattern and
analysis to deliver the right information, product, service or action at the right time
Improved
Data Quality
Provide an user with data that is enriched by digital capabilities and IoT (Internet of
Things)
Integrated and
Connected Business
Allow an organization to be fully connected to the consumer, customers, suppliers
and workforce
SAP Solutions for
Capital Project Management
Key –
SAP S/4HANA
MARKETING AND
COMMERCE
SAP S/4HANA
HUMAN RESOURCES
SAP S/4HANA
MANUFACTURING
SAP S/4HANA
SUPPLY CHAIN
SAP S/4HANA
SALES
SAP S/4HANA
FINANCE
SAP S/4HANA
SERVICE
SAP S/4HANA
SOURCING &
PROCUREMENT
SAP S/4HANA
ASSET
MANAGEMENT
SAP S/4HANA
RESEARCH &
DEVELOPMENT
TheDigitalCore
TheDigitalCore
Enterprise Management
Streamlined
Procure to Pay
Accelerated Plan to
Product
Optimized Order
to Cash
Enhanced
Request to
Service
HR
Connectivity
Core Finance
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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
HOW CAN SAP HELP?
Customer Successes
Dow's diversified industry-leading
portfolio of specialty chemical,
advanced materials, agrosciences
and plastics businesses delivers a
broad range of technology-based
products and solutions to
customers in approximately 160
countries and in high growth
sectors such as electronics, water,
energy, coatings and agriculture.
Integrated SAP Project System
and Primavera
Delivered tailored configuration
with only 200 service hours
Legacy customer of solution –
co-development effort that
forms the basis of the existing
out of the box routine
maintenance and STO solution.
Participated in EPC 2.0
customer Validation and Ramp-
up
GenOn Energy, Inc. (NYSE: GEN) is
one of the largest competitive
generators of wholesale electricity
in the United States. With power
generation facilities located in key
regions of the country and a
generation portfolio of
approximately 22,000 megawatts,
GenOn is helping meet the nation’s
electricity needs.
Integrated SAP Project System
and Primavera to support
Routine Plant Maintenance and
Turnaround
Legacy customer of solution that
migrated to the SAP Enterprise
Project Connection 2.0 , as well
as enhancing workflows to
support additional Plants.
Participated in Ramp Up and is
now live on SAP Enterprise
Project Connection 2.0 as of
September 2012.
BCHydro operates 31 hydroelectric
facilities and three thermal
generating plants, totaling 12,000
megawatts (MW) of installed
generating capacity. Our
hydroelectric facilities provide over
95 per cent of the total electricity
we generate and are located
throughout the Peace, Columbia
and Coastal regions of B.C. Our
three thermal generating plants
provide the remaining electricity
generation.
Integrated SAP Project System
and Primavera
Legacy customer of solution that
migrated to the SAP Enterprise
Project Connection 2.0 platform,
as well as enhancing kflows to
support additional Business
scenarios.
Solution working in production 4
months from contract signature
“Between F2008 and 2012, BC Hydro’s investment in capital projects is planned to grow by 84%.
Accompanying this growth is increasing project complexity, project interdependence and increased reporting
requirements to stakeholders. Confero from *SOALogix was chosen after proven out of the box capability and
we were able to move to production within four months after contract signature.”
Bryan Baker
Project Owner
BCHydro
“
* SOALogix acquired by SAP in December, 2009
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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
HOW CAN SAP HELP?
Customer Successes
IESA is a leader in the Construction
of Oil and Gas assets. Its objective
was to simplify, centralize and
collaboratively master the complex
project of six vessels. It undertook
the construction of six floating
production, storage and offloading
vehicles and turned to SAP for a
solution to meet the objectives
while complying with international
regulations for complex, ultra deep
offshore oil and gas production.
Implementation of a 3D HTML5
application and integration with
ERP backend within 5 months
Visual context for a
heterogeneous IT Landscape
Better collaboration between the
EPC areas by visualizing
engineering and business data in
3D
CS Energy is a Queensland
Government owned energy provider
with a unique mix of technology and
an innovative approach, powered by
experienced, skilled and talented
people.
Integrated SAP Project System
and Primavera
Delivered tailored configuration
in support of Capital Project
management
Transfield Services is an
operations, maintenance and
construction services business,
operating globally in the resources,
energy, industrial, infrastructure,
property and defense sectors.
Integrated SAP Project System
and Primavera
Partner delivered tailored
configuration in support of
service delivery business.
“I transferred all of my GCN3 outage orders from SAP to Primavera. I
transferred 234 work orders with a total of 328 operations. SAP
Enterprise Project Connection (EPC) streamlined processing and saved
me at least a good 2 days of data entry in Primavera.”
Chad Hufnagel
Maintenance Services Planner
RRI Energy, Inc.
“
“Having a seamless interface that was scalable, supportable with future Primavera upgrades and readily re-
configurable as infrastructure, applications and business workflows evolved was crucial in selecting
SOALogix* as our partner.”
John Long
System Analyst Global Refining, Pascagoula MS
Chevron Corporation
“
* SOALogix acquired by SAP in December, 2009
26. - 26 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
TRANSFORMING
Final Thoughts
“Today’s employees and consumers are networked and on the
move. Great products alone are no longer enough to earn their
loyalty. Businesses have to provide a next-generation experience,
tailored completely to the individual. SAP is driven by a relentless
passion to help our customers innovate to win. We deliver the
industry solutions and the real-time platform for enterprises to
run like never before.”
Bill McDermott, Chief Executive Officer, SAP
- 26 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
27. - 27 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
FINAL THOUGHTS
In summary, implementing SAP’s S4/HANA Capital Project Management solution allows an organization to:
1. Provide visibility into the decision making process while ensuring alignment to corporate strategy
2. Provide for one central project repository
3. Replace disconnected solutions through a consolidated work environment thereby reducing total cost of ownership
4. Ensure that project and portfolio Management is integrated into other business processes (Finance, Procurement,
Human Resources, Sourcing and Procurement and Engineering Management) in the ERP as part of the solution
5. Help establish project governance and control projects from idea to project execution to operations and
6. Streamline the reporting generation process and improve data quality by eliminating manual steps through a real time
reporting environment
SAP’s vision is to help the world run better and improve people’s lives. We remain focused on the success of our customers
as they are at the heart of our ambitions. We recommend that companies that are strongly considering implementing
Capital project management to engage with us by leveraging our Value Engineering approach to identify use cases, build a
business case for change and execute on a proof of concept to see how SAP can help organizations provide greater
shareholder value on current of future capital investments.
National Oil Companies
Oil Field Services
Midstream & Refining Downstream & Retailing
Integrated Majors
Exploration & Production
The Oil, Gas & Chemicals Industry repeatedly chooses SAP as their strategic partner.
28. - 28 -
SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved
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Authors:
Ashwin Menon
Industry Value Advisor Expert
Ashwin.menon01@sap.com
Adam Duran
Solutions Management – Enterprise Portfolio and Project
Management and 3D Visual Enterprise
adam.duran@sap.com