SAP-Centric Projects
In Charge and In Control
| The Product Owner's Perspective for Integrated Capital Projects |
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| Written by Berthold Kastel | |||||
Page 1 of 3 This document looks at one possible use of SAP in combination with Primavera, to manage capital investment projects. It describes a typical process as it may look like from the perspective of an owner wanting to build a new asset, e.g. a power plant, mining facility or oil refinery. Underlying Assumptions
The general assumptions for this scenario are simple. The asset owner uses SAP (enterprise layer) while the general contractor (GC) uses Primavera (project layer). The GC itself is an internal project management office (PMO) that works closely with a major third party engineering and construction company (ENC).
To stay simple we make an assumption that the layer of subcontractors will not directly need to be managed by the asset owner. In our example this is achieved by contractually obligating the GC to handle all transactions with contractors through their systems. There only will be one source of billing. The asset owner wants to have strong project control, expressed in budgetary and cost supervision and review of progress, and key milestones.
Commitments and actuals need to be handled by SAP as they are part of the companies core business processes. Resources will be a combination of internal resources and contractors provided by the GC and the GC's contractors. External resources will be handled through the asset owner's SAP system.
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