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.

Basic Setup in SAP

The following are the basic tools and objects needed to be set up in SAP.

• SAP-IM is used for overall program management and top-down budget control starting with the corporate budget.
• Project expenditures will be settled on a monthly basis to assets under construction (AUC) and upon capitalization to assets.
• The WBS will be set up in SAP and controlled there.
• All general cost planning and budgeting (approved cost plan) will be done on the WBS level.
• Milestones will be defined on the WBS or activity level in SAP.
• One network will be set up in SAP, with scheduling deactivated. Its activities are to be associated with key tasks (and WBS milestones, differentiated by a key) in the Primavera master schedule. Key tasks (beyond milestones) are defined as summary tasks and those that require interaction with purchasing and/or MRP.
• Work centers will be defined in SAP.
• Purchasing will be used in SAP.
• Actuals will be collected in SAP.
• Cost plan starts on WBS level (structure level).
• Cost plan refined on WBS or key activity level through association of work centers that reflect purchase orders.

The basic setup in Primavera only has certain rules:

• All scheduling is done in Primavera, which is the owner of the master schedule.
• Relationships and detailed resource assignments are defined in Primavera.
• Detailed activities are set up below LOE activities that tie to SAP activities.
• Progress is entered in Primavera.
• Resources are loaded from SAP work center records, including their standard cost rates.

On the "Our Solutions" section on this web page, you can get more details about the following aspects:

- Integration with plant maintenance, asset management, service management