RA & Progress analysis:

1. RA Definition & Example:

Result Analysis will give calculated revenue / Cost in the Projects. This will give WIP of the
Projects which will be taken into FI Book to consider Project Profitability.
E.g. Consider a scenarios where Project duration is 12 months & billing will happen after 3
months only. But actual Cost will incure in the projects after execution of the Projects. As per
contract, actual revenue will come into project after 3 months i.e. Billing. Hence in the first
month, there will be no actual revenue where as there will be actual cost & this will show
project as Loss. To avoid this, we can recognise revenue of the Projects based on actual cost
incurred. Whenever we will run RA, for the projects this will provide calculated revenue which
will be settled to cost object.
2.Progress Analysis for Progress monitoring
Progress Analysis Config....
1. Create Progress Version 101 with exclusive use 'Progress Analysis' and select Plan &
Actual check boxes.
2. Settings for Progress Versiona) Plan version - '0'
b) EV basis - Cost plan (active project, annual values)
c) POC weighting - Cost plan (active project, annual values)
d) Planning type - Basic dates
e) Early / Late - earliest possible
f) Both reference boxes selected
3. SKFs- Create three SKFs 10 (Non-Aggregated POC), 20 (Aggregated POC) and 30 (POC
for RA) with unit of measure '%' and selected the Key value category 'Total values'.
4. Assign these SKFs to different value categories. I created three value category 10, 20 &
30 with selection 'SKF with total values' and unit of measure '%'. Then I assigned SKF 10 to
VC 10, SKF 20 to VC 20, SKF 30 to VC 30
5. Assign measurement method as default value:
a) WBS (Plan) - Cost Proportional
b) WBS (Actual) - Cost Proportional
c) Internal Activity (Plan) - Cost Proportional
d) Internal Activity (Actual) - Degree of Processing
c) Exernal activity(Plan) - Cost Proportional
d) Exernal Activity (Actual) - Degree of Processing
6. Create progress cost element '6511100' (Secondary cost element) with Cost element
category as 61.
7. Maintain a value catagory 6511100 with Cost radio button selected and assigned the
progress cost element to the value catagory. i.e Cost element 6511100 to value catagory

6511100.
8. Maintain the assignment of cost element group. ie. assigned progress cost elemnt to cost
element group with default radio button selected. In the cost element group, select certain
cost elements which are used for project materials, project manhours, project contracts,
spares etc)
9. Run CJEN first then CNE1 and CNE5.
Also u need to maintain progress version for all ur project activities under the tab "Progress"
tab.

Progress Analysis Process

Purpose
You use progress analysis to obtain information on the state of your project and how
it is developing. This enables you to take corrective action if the project is varying
from its plan.
In the Project System, deliverables are generally planned in activities. This means
that project progress should be determined at activity level.
You can use the planned costs or the budget or the planned POC determined by the
system to represent the planned services in Project System reports.
Progress analysis supplies current data at all times while the project is running. For
more information, see Progress Analysis .

Process Flow
To enter data for progress analysis during the execution of your project, proceed as
follows:
Create your project structures.
Enter a measurement method for the WBS element, activity, or activity
element.
If you do not define a measurement method, the system determines the valid
one automatically - for example, from the default value you have defined in
customizing for the object. See Determining the Measurement Method .
Enter the planned data for the project (costs, dates, milestones, and so on).

Note that progress analysis only considers costs planned by cost element.
Enter the actual data for the project.
Determine the progress of your project.

As part of this, the system:

Determines the planned and actual POC, based on the defined rules or
estimated values
Calculates the BCWP and BCWS based on the reference factor (planned costs,
budget)
Evaluate your projects progress in the information system.
In the information system you can analyze the progress data, together with other
project key figures. This gives you an overview of how your project has progressed
over time, both planned and actual.
See Evaluating Project Progress .

Result
Progress analysis supplies you with precise information on the state of your project,
and the cost and schedule situation. You can recognize trends independently of the
costs planned and posted in CO, and can take appropriate action.

Example
The following example illustrates the importance of progress analysis for valuing your
projects progress and the resulting schedule and cost variances.
Progress Analysis Versus Plan/Actual Comparison
You expect a customer project to incur costs of $100,000. The project lasts four
periods. The planned costs are distributed evenly over these periods ($25,000 per
period). Total actual costs posted for periods 1 and 2 are $40,000.
The graphic below illustrates the plan/actual comparison, showing a favorable project
situation. The project costs seem likely to be less than the planned costs.
If you now look at the work actually done, the situation appears different.
In period 2, you run a progress analysis. The system determines the actual POC as
follows: With overall planned costs of $100,000, the BCWP is $25,000 (overall
planned costs * POC). As the actual costs at this point amount to $40,000, the BCWS
is also $40,000, meaning that there is a cost variance of $15,000. In addition to the
cost variance, the report shows that there is a time variance. The earned value of
$25,000 should have been reached at the end of period 1. This means that the
project is one period behind schedule.

Link:
http://help.sap.com/saphelp_erp60_sp/helpdata/en/63/f9bb53707db44ce1000
0000a174cb4/content.htm?
frameset=/en/b3/d90e0851e911d2a63b00104b59c1ec/frameset.ht
m
&
current_toc=/en/ca/d8b65334e6b54ce10000000a174cb4/plain.ht
m&node_id=25&show_children=false

Resources
Purpose
Use this component to plan the resources required for the work that is carried out
internally in a project. That is work that is not procured externally via purchasing.
You specify the work and the work center where this work is to be carried out in the
internally processed network activity. During scheduling the system determines
the capacity requirements for the project.
You offset these capacity requirements against the available capacities of the work
centers involved. For optimal capacity utilization, use Capacity Leveling .
In projects the most important resource is the project staf . Workforce
Planning enables you to distribute work from network activities to people, positions,
and HR organization units according to periods.
The system can determine the available capacity from the work center or the HR shift
schedule.
During project execution the capacity requirements are reduced by confirmations .

Integration
If you use workforce planning and the Time Sheet (CATS), you can specify in
Customizing for the time sheet that the system uses the work distributed to people in
workforce planning as default values for entering values in the time sheet.
For detailed information about Capacity Planning functions, refer to the Capacity
Planning (PP-CRP) component.
For information about Work Centers and the data that you have to maintain there for
capacity planning, refer to theWork Centers (PP-BD-WKC) component.

http://help.sap.com/saphelp_erp60_sp/helpdata/en/09/c4b65334e6b54ce100
00000a174cb4/content.htm

Workforce Planning
Use
Use this function to distribute work in internally processed activities of a project to
personnel resources according to periods. The personnel resources that you can
assign to activities are persons , positions , and organizational units in human
resources (HR).
You can carry out workforce planning with a project view or a work center view,
depending on your responsibilities. In reporting you can analyze workforce planning
from project, work center, and personnel resource views.
The work distributed to a person can be used as a default by the system for the Time
Sheet (CATS), when entering personal working times.
Use
Use this function to distribute work in internally processed activities of a project to

personnel resources according to periods. The personnel resources that you can
assign to activities are persons , positions , and organizational units in human
resources (HR).
You can carry out workforce planning with a project view or a work center view,
depending on your responsibilities. In reporting you can analyze workforce planning
from project, work center, and personnel resource views.
The work distributed to a person can be used as a default by the system for the Time
Sheet (CATS), when entering personal working times.
Prerequisites

Prerequisites
For workforce planning you require the HR mini-master record (infotypes 0001and
0002). In addition you need infotype 0315 for the time sheet (CATS), and infotype
007 to be able to display the availability of personnel resources.
In Customizing for the Project System , you must have defined profiles for workforce
planning in Resources . However you can change the settings for the current working
environment from those of the profile, when you call up workforce planning.
You must have also:
Assigned work centers to the internally processed activities.
Entered Formulas in the work center to determine capacity requirements.
Scheduled the activities to generate capacity requirements.
Assigned only one labor capacity to a work center.

Note

Although it is possible from Release 4.6A to distribute work to a personnel resource

that is not assigned to the relevant work center, it is particularly useful for shift
planning on a work center basis to link the work center or labor capacity with objects
in the personnel system (HR) .

Features
Project View
When you call up workforce planning in project view, you select projects, WBS
elements, or networks . The project view displays all the activities that are assigned
to the selected networks or WBS elements.
You assign personnel resources to these activities. The system proposes the
personnel resources that are assigned to the project team for the relevant WBS
element of its superior WBS element. However, you can assign personnel resources
from the work center or, if the relevant indicator has been set in the profile, other
personnel resources.
Work Center View
When you call up workforce planning in the work center view you can select work
centers , plants, or personnel resources . You can also restrict the selection of
activities by choosing Filter . In the top section of the work center view you can see
all the selected personnel resources or the personnel resources assigned to the
selected work centers. In the lower section you see the network activities that are
assigned to the work centers and that meet the filter conditions.
You can assign the displayed activities to the displayed personnel resources, the
personnel resources of the relevant work center, or if the corresponding has been
set in the profile other personnel resources.
Reporting
Reporting lets you display and evaluate workforce planning for projects, work
centers, or personnel resources. To use reporting for workforce planning, you
do not require change authorization and the objects you examine arenot locked .
Reporting is based on the ABAP List Viewer (ALV). Using standard ALV functions it is
possible in reporting to print the work distribution, to send it to another user, or to

save it in a local file, for example.

Rescheduling Distributed Work
In case you have distributed work and then the network dates change, you can
determine in Customizing for theProject System ( Dates Scheduling Specify
Parameters for Network Scheduling ) how the work that has been distributed but no
longer is within the activity dates is rescheduled. The system can:
Distribute the work in the new activity period according to the old distribution
Delete the work
Distribute the work to the start or finish of the new activity period

Capacity Leveling in the Project

System
Purpose
Use this component to compare the capacity requirements of a project with the
available capacity of the work centers assigned to the project. As a result, you can
schedule the capacity requirements optimally.
Features
You can perform capacity leveling:
In a tabular planning board, in which the available capacity and capacity
requirements are presented in a period split
In a graphic planning board that allows continuous capacity planning.
The main function of capacity leveling is the dispatching of activities . For information
about further functions, seeFunctions in Capacity Leveling .
For information about how to handle these functions in the planning boards refer
to The Tabular Planning Board orThe Graphic Planning Board .
The possible views of capacity leveling, depending on the responsibilities of the user,
are listed below.
Project View
The project manager can view capacity leveling in the Project view and see a
particular WBS hierarchy.
In the Project System the project manager can call up capacity leveling:
In the project planning board
In scheduling and structure planning. He or she can also call up the standard
overview of capacity planning in both of these transactions
Network View
The planner who is responsible for a network can call up the Order view of capacity
leveling from the capacity planning menu. The system only takes into account
activities from specific networks.
The planner can also check the availability of capacities in a network.
Work Center View
The person responsible for a work center can call up the Work center view of capacity
leveling from the capacity planning menu.
Other Views
You can call up other views specific to your company from the variable overview. You
edit and update variable overviews in Customizing.
To use views that you have entered in Customizing instead of those in the standard
system, you can change the view selection in the user parameters.

Capacity Requirement Planning

Tutorial in SAP PP
The main function of capacity planning is to check the load at Work
Center and do the capacity leveling i.e. balance the load at Work Center. It
helps to calculate the production capacity based on the requirement of
the product against the available capacity of the work center.

MRP works with infinite capacity and creates planned orders at the
Work Center at the same time since it assumes that Work Center is
available all the time. So, it creates planned orders on the same
date based on the requirements despite capacity shortages. You
can execute those orders on that Work Center in the system which
is not practically feasible in the shop floor.
The main objective of the capacity leveling includes leveling
overloads at Work Center and to achieve optimum utilization of
Work Centers.
MRP generated planned orders are converted to production orders
which determine which Work Center is to be used, and accordingly
the capacity requirements are generated on that Work Center.
Capacity leveling at production order level is used for detailed
production planning purpose. This is done through planning table
which is used to carry detailed planning of capacity requirements
over time in future.
The capacity load needs to be checked at Work Center, and if it is
overloaded, then we need to shift the orders ahead to the same
Work Center or plan it in different Work Center to eliminate any
capacity constraints.
In this tutorial- you will learn,

How to check capacity loads

How to do capacity leveling

How to check capacity loads

Capacity evaluation is used to analyze the load at Work Center, and you
can see the load % (in step 2), available capacities and the requirements.
You can also see the orders which have generated capacity requirements.
Step 1) From SAP easy access screen, open transaction CM01.

Enter your manufacturing Plant for which you want to check

capacity load.

After filling in all the fields, click

to go to the next screen.

Step 2) In this screen, the capacity situation at Work Center can be seen.

Check the capacity requirement (generated from production

orders), available capacity ( determined from Work Center master
data) and capacity load % at the Work Center.

How to do Capacity leveling

Capacity leveling is done through planning table, and you need to
dispatch the orders to the Work Center in the sequence in which they are
supposed to be processed at shop floor.
Step 1) From SAP easy access screen, open Transaction CM21

Input the plant for which you want to level capacity

After filling in all the fields, click execute button on top to go to the next
screen.
Step 2) In this screen, you can see orders pool at the bottom and Work
Center pool at the upper half of the screen in the planning table.

Check the several orders in the orders pool.

Check the list of Work Centers in Work Centers pool.

Step 3) In the same screen of planning table, select the data as given
below.

Select one order from orders pool.

Click on dispatch button to assign that order to the Work Center.

Step 4) In the same screen,

Check the dispatched order in the Work Center pool. Similarly, you
can dispatch the others orders to the Work Center pool which
would shift adjacent to the previously dispatched orders.

This is how you can do the capacity leveling.

Troubleshooting

Ensure that right control key with "capacity requirement" indicator

is placed in operation data in routing.
Ensure that in the capacity tab of the Work Center, "finite
scheduling" indicator in flagged.

The steps are as follows:

1. Define the work center -CNR1
2. Do the capacity plng for workcenter
3.Assign persons working in work center
4. Define Activity Types - KL01
5. Define Price for activity type - KP26
6. Assign activity type to workcenter - CNR2
7. Capacity planning -CM01
8.Various reports are available
a. CN50: Capacity Analysis