2 Business Blueprint PS 1 0 Updated One

PROJECT SYSTEM
Business Blueprint
Submitted to
Druk Green Power Corporation

and
Druk Holding & Investments
By
Wipro Ltd.
27/10/2010
Version 0.9
eGreen – PS Business Blueprint
DOCUMENT APPROVALS
Prepared By:
(Mr.Benarji Prasad)
…………………………. ………
Wipro Lead Consultant Date
Reviewed By:
(Ms. Tashi Lhamo)
………………………… ………
Core Team Member Date
Reviewed By:
(Mr. Chador Tenzin)
………………………… ………
Core Team Member Date
Reviewed By:
(Mr. Karma Gyamtsho)
………………………… ………
Core Team Lead Date
Reviewed By:
(Mr. Rajneesh Sharma)
Wipro Ltd. Page 2 of 79

© Wipro Limited, 2010, All Rights Reserved.
This document is proprietary to Wipro Infotech, a division of Wipro Limited.
You may not modify, copy, reproduce, republish, upload, post, transmit or distribute any material from this document, in any
form or by any means, nor may you modify or create derivative works based on the text of any file, or any part thereof for
public, private or commercial use, without prior written permission from Wipro Limited.
………………………… ………
Wipro Project Lead Date
Reviewed By:
(Mr. Balaji Srinivasamurthy)
………………………… ………
Wipro Project Manager Date
Reviewed By:
(Mr. Jambay Tshering)
……………………… ………
Druk Green Power Corporation Date
Project Manager
Approved By:
(Dorji P. Phuntshok)
………………………… ………
Druk Green Power Corporation Date
Business Process Owner

DOCUMENT INFORMATION
Project Name Document Name Document Location
e-green PS Business Blueprint Document Server
DOCUMENT HISTORY
Version Document Date Authors Reviewed BY Change Control

Name
0.8 Business 15.08.2010 Benarji Prasad COE/ Core COE
Blueprint team review recommendations
0.9 Business 27.08.2010 Benarji Prasad Core team/
Blueprint PMs Acronyms

TABLE OF CONTENTS
1 EXECUTIVE SUMMARY............................................................................11
1.1 BACKGROUND......................................................................................11
1.2 BUSINESS BLUEPRINT OVERVIEW............................................................11
1.3 PROJECT SYSTEM.................................................................................12
1.4 INTEGRATION.......................................................................................13
1.4.1. Financial Accounting:.....................................................................................13
1.4.2. Controlling:.................................................................................................13
1.4.3. Investment Management (IM):..........................................................................14
1.4.4. Asset Accounting:.........................................................................................14
1.4.5. Material Management:...................................................................................14
2 ORGANISATION STRUCTURE....................................................................16
2.1 Client:..................................................................................................16
2.2 Controlling Area:.....................................................................................16
2.3 Company code:......................................................................................17
2.4 Profit Centre:.........................................................................................17
2.5 Cost Centre:..........................................................................................17
2.6 Plant:..................................................................................................17
2.7 Storage Location:....................................................................................18
2.8 Personnel Area:......................................................................................19
3 MASTER DATA......................................................................................20
3.1 Project Definition:....................................................................................20
3.2 Work Breakdown Structure (WBS):...............................................................20
3.3 Network and Activities:..............................................................................22
3.4 Milestones:...........................................................................................23
3.5 Work Centre:.........................................................................................23
3.6 Document Info Record (DIR):......................................................................23
3.7 PS Texts:..............................................................................................23
3.8 Material Master:......................................................................................24
3.9 Service Master:......................................................................................24
3.10 Activity Type:.........................................................................................24
3.11 Cost element:........................................................................................24
3.12 G/L Account:..........................................................................................24
4 BUSINESS PROCESS..............................................................................25
4.1 Project Initiation & Structure.......................................................................25
4.1.1 Purpose of Creating Project Structure:...................................................................26
4.1.2 Master Data:..................................................................................................27
4.1.3 Solution in SAP:..............................................................................................27
4.1.4 Standard Project:.............................................................................................34
4.1.5 Simulation Version:..........................................................................................35
4.1.6 Project Versions:.............................................................................................36
4.1.7 Project Status:................................................................................................36
4.1.8 Key Integration Touch Points:..............................................................................37

4.1.9 Description of Improvements:..............................................................................40

4.1.10 Process controls:..........................................................................................41
4.1.11 Description of Functional Deficits /Gaps:.............................................................41
4.1.12 Approaches to Covering of Functional Deficits /Gaps:..............................................41
4.2 Date Planning........................................................................................42
4.2.1 Master Data:..................................................................................................42
4.2.2 Solution in SAP:..............................................................................................42
4.2.5 Process controls:.............................................................................................45
4.2.6 Description of Functional Deficits /Gaps..................................................................45
4.2.7 Approaches to Covering of Functional Deficits /Gaps:.................................................45
4.3 Planning of Resources and Material..............................................................46
4.3.1 Master Data:..................................................................................................46
4.3.2 Solution in SAP:..............................................................................................46
4.3.6 Description of Functional Deficits /Gaps:.................................................................50
4.4 Planning of Cost.....................................................................................51
4.4.1 Purpose:.......................................................................................................51
4.4.2 Master Data:..................................................................................................51
4.4.3 Solution in SAP:..............................................................................................51
4.5 Budgeting.............................................................................................55
4.5.1 Purpose:.......................................................................................................55
4.5.2 Master Data...................................................................................................56
4.5.3 Solution in SAP:..............................................................................................56
4.5.5 Improvements.................................................................................................59
4.6 Procurement..........................................................................................61
4.6.1 Purpose:.......................................................................................................61
4.6.2 Master Data:..................................................................................................61
4.6.3 Solution in SAP:..............................................................................................61
4.6.6 Process Controls:............................................................................................64
4.7 Project Execution....................................................................................66

4.7.1 Purpose:.......................................................................................................66
4.7.2 Master Data:..................................................................................................66
4.7.3 Solution in SAP:..............................................................................................66
4.7.7 Functional Deficits /Gaps:...................................................................................72
4.7.8 Approaches to Fill the Functional Deficits /Gaps:.......................................................73
4.8 Period end Closing..................................................................................74
4.8.1 Master Data:..................................................................................................74
4.8.2 Solution in SAP:..............................................................................................74
4.8.7 Approaches to Covering of Functional Deficits /Gaps..................................................78
5 INTERFACES........................................................................................79
5.1 Open PS:.............................................................................................79
5.1.1 Purpose:.......................................................................................................79
5.1.2 Process:.......................................................................................................79
5.2 Primavera:............................................................................................82
5.2.1 Purpose:.......................................................................................................82
5.2.2 Solution:.......................................................................................................82
6 STANDARD INFORMATION SYSTEM............................................................83
ANNEXURES...............................................................................................86
6.1 Annexure 1 – Key Data Structure.................................................................86
6.2 Annexure 2 – Business Process Master List....................................................87
6.3 Annexure 3 – Consolidate FRICE Objects.......................................................87
6.4 Annexure 4 – Business Processes...........................................................87

Acronyms
Acronyms Description
AM Asset Management
AR Appropriation Request
AUC Asset Under construction
BBP Business Blueprint
BCWP Budgeted Costs of Work Performed
BCWS Budgeted Costs of Work Scheduled
CATS Cross Application Time Sheets
CDM Clean Development Mechanism
CO Controlling
CLSD Closed
CPI Cost performance index
CSBP Current State Business Process
CTM Core Team Members
CV Cost Variance
DoE Department of Energy
DoP Delegation of Power
DGPC Druk Green Power Corporation Ltd.,
DHI Druk Holding & Investments
DHPC Dagachhu Hydropower Corporation
DMS Document Management System
DPR Detailed Project Report

EAC Expected Cost Calculation
ECC ERP Central Component
ERP Enterprise Resource planning
FI Finance
FIAA Finance Asset Accounting
FICO Finance & Controlling
FRICE Forms, Reports, Interfaces, conversions and Enhancements
FS Feasibility Study
FSBP Future State Business Process
FXA Fixed Assets
GL General Ledger
HCM Human Capital Management
IM Investment Management
MM Material Management
MRP Material Requirement Planning
MTA Milestone Trend Analysis
NEC National Environment Commission
O&M Operations & Maintenance
PA Personnel Area
PO Purchase Order
POC Percentage of completion
PR Purchase Requisition

PS Project System
PP Production Planning
PSMP Power System Master Plan
RS Reconnaissance Study
R&M Renovation & Modernization
SAP Systems, Applications and Products in data processing
SD Sales & Distribution
SV Schedule variance
TECO Technically Completed
WBS Work Breakdown Structure

1 EXECUTIVE SUMMARY
1.1 BACKGROUND
Druk Green Power Corporation Limited (DGPC) was incorporated under the Companies Act of the Kingdom
of Bhutan on 1st January 2008 through a merger of the erstwhile Basochhu, Chhukha, and Kurichhu Hydro
Power Corporations. Further, DGPC took over the Tala Hydropower Plant from the Tala Hydroelectric Project
Authority on 1st April 2009. Meanwhile, DGPC also started the construction of the 114 MW Dagachhu
Hydroelectric Project. Today DGPC is one of the largest corporate bodies in Bhutan contributing to 20% of the
GDP and 45% of the direct revenues to the Royal Government of Bhutan.
Amongst its many mandates, the two major missions of DGPC are “to effectively and efficiently manage
hydropower plants”, which was the traditional role of the erstwhile Hydro Power Corporations, and now more
importantly “to take a lead role in accelerating hydropower development in the Kingdom by developing new
hydropower projects independently, through joint ventures, or through any other arrangement with domestic
and international partners”. Considering these mandates and especially with the plans of the Royal
Government of Bhutan to develop an additional generation capacity of 10,000 MW by 2020, DGPC is set to
grow in leaps and bounds within this decade itself.
Given its present size and the expected huge growth and expansion in the size and scale of its operations
over the next decade, the already diverse and complex business processes and operations will become even
more demanding and arduous. Implementation of SAP ERP Solutions is one of the initiatives that DGPC has
taken up to address these and run the power plants more efficiently. The SAP implementation project has
been initiated with effect from 15th May 2010 with the following vision and mission and objectives.
Vision: To transform and leverage business processes of DGPC and Druk Holdings and Investments through
the use of SAP’s best practice.
Mission: To implement SAP ECC 6.0 project in time with minimum customization through co-operation of all;
by giving prominence to larger objectives and to avail benefits of integration and industry best practice.
Objectives:
 The primary objectives of the Project are as follows:

 Integrate all business process across the organization, under single SAP platform with minimum
interfaces.
 Elimination of duplication of activities across business processes by capturing data at source point.
 Develop central and secured MIS for better analysis of operations and decision-making process.
 Develop history of various types of data for statistical analysis and decision-making systems
 Adopt best business practices, taking advantage of SAP best practices.
 Common understanding and methodology of work, for majority of the processes, within various
departments, plants, units.
 Form basic infrastructure of communication and networking for adoption of advanced business
software - SAP.

1.2 BUSINESS BLUEPRINT OVERVIEW
The following activities have been covered in the business blueprint phase:
 FSBP process definitions and identification with reference to CSBP processes files are attached in
Table 1.
 FSBP discussion with core team members along with changes in existing Organization structure,
standard reports available in SAP.
 Incorporation of any comments by the reviewers wherever justified and applicable.
Table 1: Attachments of CSBP Business Processes Mapping with FSBP

S. Description
Attachments
No.
Hydropower projects
1 2_BP_FSBP_PS_Hydr 2_BP_FSBP_PS_Hydr
o_0.8.xls o_0.9.vsd
Infrastructure projects
2 2_BP_FSBP_PS_Infra 2_BP_FSBP_PS_Infra
_0.8.xlsx _0.9.vsd
Renovation & Modernization

3 2_BP_FSBP_PS_R&M 2_BP_FSBP_PS_R&M
_0.9.xls _0.9.vsd
Druk Holdings & Investment

4 2_BP_FSBP_PS_DHI_ 2_BP_FSBP_PS_DHI_
0.8.xls 0.8.vsd
The objectives of this document are:
1. To identify and document the proposed SAP Business processes based on FSBP discussions.
2. Brief about the module’s standard functionalities, its integration with other modules, master data
requirements and relevant organization structure.
3. Have one comprehensive document with reference to capturing of Gaps and FRICE requirements.

1.3 PROJECT SYSTEM
In DGPC/ DHI, Project System module shall be used for mapping the business processes for Project Initiation
& Structuring, Project Planning, Project Budgeting, Project oriented Procurement, Project Execution, Transfer
of Actual cost to CWIP and Project Closure.
It is sub divided into:
 Organization Structure
 Master Data
 Project Structure
 Date Planning
 Planning of Resource & Material
 Planning of Cost
 Project Oriented Procurement
 Project Execution
 Project Closure
1.4 INTEGRATION
The Project System module is fully integrated with other modules of SAP R/3. Considering the specific
requirements of the organization, the integration takes place among modules. The continuous exchange of
information with other application areas in the R/3 System ensures a real time database. Fully integrated
processing helps to optimize the project execution within the company.
The broad level integration areas with SAP Project System are:
1.4.1 Financial Accounting:
 Vendor down payment
 Invoice verification
 Vendor payment
 G/L
 Asset Accounting
 Direct postings

For example, the cost of a material and an external service must be posted to the respective WBS/
Network Activity to track the project cost.
1.4.2 Controlling:
The SAP CO (Controlling) Module provides supporting information to the Management for the purpose of
planning, reporting, as well as monitoring the operations of the businesses. Management can take
decision with the levels of information provided by this module.
Some of the components of the CO (Controlling) Module are as follows:
 Cost Element Accounting

 Cost Center Accounting
 Internal Orders
 Activity-Based Costing
For example, the cost of internal task/activity is done automatically with the data maintained in activity
type; whereas for external activity, the costing will be done automatically through the price maintained in
material/ service master.
1.4.3 Investment Management (IM):
SAP IM is a tool designed to enable program management in SAP. Program Management is the process
of defining a hierarchy above all the projects with the purpose of planning & controlling costs, including
project appropriation management and budget authorizations. Besides PS, the modules which are
strongly integrated with IM are Controlling (CO) and Asset Management (AM) modules.
Investment Program: It is a component of IM and it represents the planned or budgeted costs for the
capital investments (or other projects) of an enterprise or corporate group in the form of a hierarchical
structure. We can define the hierarchical structure in accordance to organizational needs. It is not
dependent on organizational units in the SAP R/3 System (such as, profit centers, plants, and so on).
Following concepts are part of Investment Program:
 Investment Measure: An individual investment which needs cost and financial accounting are
handled through internal orders, projects and maintenance orders with the help of investment
measure.
 Appropriation Request: It is used for planning and approval phase of investments.
1.4.4 Asset Accounting:
The Asset Accounting (FI-AA) component is used for managing and supervising fixed assets with the SAP
R/3 System. In SAP R/3 Financial Accounting, it serves as a subsidiary ledger to the FI General Ledger,
providing detailed information on transactions involving fixed assets.
 Asset under construction: Fixed Asset
 Settlement

For example, a periodic settlement is done for WBS to move the cost from WBS to AUC (Asset under
Construction). The project and WBS are closed technically and the final settlement is done during the
capitalization of fixed asset.
1.4.5 Material Management:
In addition to Material and service master, vendor master is also used for project’s procurement
transactions. The broad levels of integration with material management are:
 Purchase requisition
 Purchase order
 Good receipt
 Invoice receipt
 Material issue
Human Capital Management: Employee master data will be used for workforce planning for project
activities.

2 ORGANISATION STRUCTURE
The Project System module has no organizational structure of its own but it uses the organizational structure
defined in financial accounting and Logistics modules.
While defining the project process (during project creation), we can default the Company Code, and Plant
which can be changed and assigned as and when required in the work breakdown structure. However, the
company code cannot be changed once the cost planning, budgeting or actual values are posted to that
particular project.
Creation of Project and WBS Elements will be done by the authorized person. Any changes in Project and
WBS Elements which can be adding, deleting and releasing of all or individual WBS element can be done by
authorized person only.
Following are the organizational structures of other modules on which SAP PS is dependent on:
2.1 Client:
The client is the highest hierarchical level in the SAP system. The specifications that are configured or data
that are entered at client level are valid for all company codes and for all other organizational structures, such
as sales organization and purchase organization. Consequently, these specifications are to be entered only
once. Central maintenance ensures standardized data storage. For example, Customer addresses are stored
at client level so that all company codes can access the data. Different functional areas also use these data,
like customer’s address for sending out an order confirmation as well as for printing a dunning notice
(reminder letter).
Each client is a self-contained unit with separate master records and a complete set of tables. A client key is
used in all master records, which ensures that they are stored against the client. A user master record must
be created with access authorizations. While logging on the system each user must specify a client key. The
code of the client for DGPC and DHI defined in the system is shown in table 2.
Table 2: The Code of the Client

Client Code
Druk Green Power Corporation DHI1
Druk Holding & Investments DHI1
2.2 Controlling Area:
An Organizational Unit within which management accounting is performed. Many company codes can be
assigned to the same Controlling Area as long as they share common Chart of Accounts and Fiscal year
variant.
The codes of the Controlling Area which are defined in FI/CO module are shown in table 3 and the project
system uses the same structure for the project processes.

Table 3: The Code of the Controlling Area

Company Code
Druk Green Power Corporation DP01
Druk Holding & Investments DI01
2.3 Company code:
A Company Code is the central organizational unit in Financial Accounting in SAP system. It is the smallest
organizational unit of external accounting for which a complete, self-contained set of accounts can be created.
A complete set of financial statements includes the balance sheet, income statements and statement of cash
flows. All transactions that would form the complete set of accounts should be posted and evaluated at the
company code level.
All transactions in SAP which has a financial impact are posted to a company code. This will ensure that data
used to generate financial statements is complete.
All Management Information System (MIS) reporting in finance for a legal entity also is derived from company
code dimension. The codes of the company which are defined in FI/CO module are shown in table 4 and the
project system uses the same structure for the project processes.
Table 4: The Code of the Company

Company Code
Druk Green Power Corporation DG01
Dagachhu Hydropower Corporation DH01
Druk Holding & Investments DI01
2.4 Profit Centre:
A Profit Centre is a management-oriented organizational unit used for internal controlling and reporting
purposes. It allows analyzing areas of responsibility by revenues generated and costs incurred, treating them
as ‘companies within the company’.
2.5 Cost Centre:
A Cost Centre is a management-oriented organisational unit used for internal controlling and reporting
purposes. In business, a cost centre is a division that adds to the cost of an organization thereby giving
overview of its profit.
2.6 Plant:
It is an organizational unit, which subdivides an enterprise according to production, procurement,

maintenance, and materials planning aspects.
In case of DGPC, the power generating Plant and Corporate Office would be treated as Plants in SAP.
Similarly for DHI, corporate office will be treated as Plant. The codes of the plant which are defined in

Materials Management module are shown in table 5 and the project system uses the same structure for
the project processes.
Table 5: The Code of the Plant
Plant Code
Druk Green Power Corporation DG01
Basochhu BS01
Chhukha CH01
Kurichhu KU01
Tala TA01
Dagachhu DA01
Druk Holding & Investments DH01
2.7 Storage Location:
Storage location is a place where stock is physically kept within a Plant and is the lowest organizational
unit within the Material Management module. Each inventory holder in DGPC is defined as a storage
location in addition to physical locations.
Extracted Organizational structure for projects of DGPC is as shown in Figure 2.1.
Controlling Area
DP01
Druk Green Power Corporation
Company Code Company Code

DG01 DH01
Druk Green Power Corporation Dagachhu Hydropower Corporation
Plant Plant Plant Plant Plant Plant

DG01 BS01 CH01 KU01 TA01 DA01
DGPC CO Basochhu Chhukha Kurichhu Tala Dagachhu
Storage Storage Storage Storage Storage Storage

Location Location Location Location Location Location
Figure 2.1: Organizational structure of DGPC

Extracted Organizational structure for projects of Druk Holding and Investments is as shown in Figure 2.2.
Controlling Area
DI01
Druk Holding and Investments
Company Code
DI01
Druk Holding and Investments
Plant
DH01
DHI
Storage
Location
Figure 2.2: Organisational structure of DHI
2.8 Personnel Area:
It is an organizational unit according to personnel, administrative, time management and pay roll and is
assigned to the company code. It also helps in segregating the employee strength with respect to different
locations. The employee number range is defined based on the personal area and is shown in Table 6.
Table 6: Personnel Area with Code

Company & code Personnel Area & code
Druk Holding & Investments (DI01) Druk Holding and Investments (DI01)
Druk Green Power Corporation (DG01) DGPC corporate office (DG01)
Druk Green Power Corporation (DG01) Basochhu (BS01)
Druk Green Power Corporation (DG01) Chhukha (CH01)
Druk Green Power Corporation (DG01) Kurichhu (KU01)
Druk Green Power Corporation (DG01) Tala (TA01)
Dagachhu Hydropower Corporation (DH01) Dagachhu Hydropower Corporation
(DH01)

3 MASTER DATA
Project System has the following objects/ master data for defining Project Management process.
 Project Definition
 Work Breakdown Structure (WBS)
 Network and Activities
 Milestones
 Work centres
 Document Info record (DIR)
 PS Text
 Material and service components
Creation and Maintenance of the data for Project Management processes as required by DGPC will be
covered in SAP project system and the creation of materials and services for the same will be maintained in
SAP materials management module.
3.1 Project Definition:
It is the binding framework for all organizational elements within a project. It has overall project start and finish
dates, and the project objectives (responsible person, PS text, etc) are defined in the project definition. For
example, a project definition includes the project profile and organizational details (controlling area, company
code, etc.).
3.2 Work Breakdown Structure (WBS):
It is a hierarchical model of the project that organizes project work packages at various levels. It is the
functional basis for further project planning, for example, WBS element structure will be created for cost
planning, scheduling, as well as project control. It gives overview of the project and facilitates the coordination
and implementation of the project.
The main objective of the WBS is to split the project into manageable units, to define basic dates, and
determine its costs.
The WBS divides the project, step-by-step into structured elements. These elements are called Work
Breakdown Structure elements (WBS elements) in project system. Each WBS element is a result due to this
splitting.
The WBS can be structured from various viewpoints, as given below:

 By phase (logic or process oriented)

 By function (function-oriented)
 By object (object-oriented)
A Typical Project System’s hierarchy structure is shown in Figure 3.1:
Project
Project Definition
Definition
Company code
Controlling area
WBS
WBS Element
Element
Plant
Controlling area
Company code
Networks
Networks
Plant
Plant
Activities
Activities
Internally
Internally Processed
Processed Activity
Activity
Plant
Work Centre
Externally
Externally Processed
Processed Activity
Activity
Plant
Purchasing org
Purchasing Group
General
General Costs
Costs Activities
Activities
Plant
Material
Material Component
Component
Purchasing org
Purchasing Group
Plant
Storage location
Figure 3.1: Hierarchical structure of Project System

3.3 Network and Activities:
A network represents the flow of a project or of a task within a project. It is a group of activities arranged in a
relationship. Various structural elements of a project and their interdependencies can be displayed graphically
using Critical Path Method (CPM) in the Project System.
An Activity must have:
 Duration
 A defined start and a defined finish
 Processed without interruption
 Resources required to execute them
 Incurring costs
During the life of a project, networks are used as a basis for planning, analyzing, controlling and monitoring
schedules, dates and resources (such as people, machines, materials, documents and drawings). You can
assign networks to a project.
A network comprises the following:
 Activities
 Activity elements
 Relationships
Relationships determine the chronological sequence of activities in a network. There is usually a reason for a
specific sequence of activities in a network. For example, there may be technical dependencies between
individual activities and are represented by relationships in which one activity is the predecessor or the
successor of another activity.
The following Internal Number Range will be maintained for the network for DGPC/DHI Business.
Table 3.1: Internal Number Range for Network
Group From Number To Number
DG01 100000000 199999999
TA01 200000000 299999999
KU01 300000000 399999999
CH01 400000000 499999999
BS01 500000000 599999999

DA01 600000000 699999999
DH01 700000000 799999999
3.4 Milestones:
They are used to mark the transition between various phases in a project and are also used for monitoring
and trend analysis. For example, Project events which are important for the progress can be created as
milestones.
3.5 Work Centre:
Work centers are the combination of equipment and persons involved in internally processed activities that
have capacities. They are subdivided into categories to specify their suitability to use for certain purposes.
For example:
 Personnel involved in an activity which are also recorded as employees in personnel administration
 Company-owned resources (Machines) involved in an activity
The work center may be a group of fitters, electricians, plumbers or a representation of maintenance crew in
any location. The work center contains the details of capacity by the way of man-hours.
3.6 Document Info Record (DIR):
It is a master data in Document Management System (DMS) representing a document or a set of documents.
This information is either for the person responsible or for exchanging between different systems. A document
contains information that can be stored in the form of technical drawings, graphics, programs, or text.
For example: All Tendering, project proposals, designs will be stored in DMS and attached to the respective
WBS elements.
3.7 PS Texts:
During project processing, any information can be entered into project systems, in the form of PS texts and
can be emailed to the member of the project team. PS texts are managed by means of description which can
be edited using PS texts catalogue or in the project (Project builder or the project planning board).
Other Masters: There are other Master records which would be used by the Projects Department during
planning or while processing the activities. This includes:
 Material Master
 Service Master
 Activity type

 Cost element
 G/L Account
3.8 Material Master:
A company manages its materials in the material master. Material master consists of spares and
consumables, which are categorized by the type, group etc. These materials are stored in storage locations
with reference to respective WBS.
3.9 Service Master:
It is a repository for the descriptions of all services a firm frequently hires. There is a service master record for
each service description. The service master database is a source of default data set by the system when
service specifications are created.
For example: While creating service activity, service masters can be copied and purchase requisition will be
created.
3.10 Activity Type:
Activity type classifies the specific activity provided by the cost centers and determines the quantity output of
the cost centre. A cost centre may have multiple numbers of activities.
For example: Project manager hours, Machine hours and labour hours.
3.11 Cost element:
A cost element is an item in a chart of accounts. Cost elements are of two types i.e., primary and secondary
cost elements. The primary cost or revenue elements must have a corresponding GL account in financial
accounts. Secondary cost element exits only in controlling and is used to allocate costs within company.
3.12 G/L Account:
G/L account master records contain the data to determine the account's function and control the posting of
accounting transactions to G/L accounts and the processing of the posting data. For example, it is used to
record expenses and income.

4 BUSINESS PROCESS
4.1 Project Initiation & Structure
Existing Processes
Hydropower Projects:
 Based on the Power System Master Plan, the projects are identified by Projects Department or
DGPC Management.
 Project team prepares proposal and submits to DGPC Management and then approval is sent to
Board. After getting approval from Board, project team estimates cost (rough cut cost planning)
for the project and submits to Competent Authority as per Delegation of Power (DoP) for
approval.
 Planning and design of hydropower projects involve uncertainties which requires different
sciences and technical, environmental, social and economic expertise that investigations have to
be organized in a rational and structured manner. However, the result of project investigations
may prove to be negative and investigations are therefore arranged in steps or phases.
 Therefore hydropower project developments involve several phases like Desktop Study,
Reconnaissance Study, Pre-Feasibility Study, Feasibility Study, DPR Study, and Execution.
 To initiate each phase, project team has to prepare cost estimation and it should get approved
from the Competent Authority. Based on phase report submitted, Competent Authority will decide
whether to proceed to next phase or not.
Infrastructure Projects:
 The project team or the management will identify project based on the requirement. Project team
prepares proposal and submits to Competent Authority as per DoP for approval.
 If any clearance(s) are required from the concerned agency for construction, application will be
submitted. Competent Authority takes decision whether project would be executed internally or
outsourced to the contractor.
Renovation and Modernization:
 Project proposal will be submitted by Operation & Maintenance Division or Department based on
technological progress or if the plant has passed successful life of 25 to 40 years.
 Competent Authority takes decision whether to take up study internally or to be outsourced.

Meanwhile, project plan will be prepared to conduct study for renovation and modernisation.
 After completion of the study, the O & M Division will submit the study report to the Competent
Authority for review and approval.
 The Competent Authority decides whether to implement (internally/outsourced) or to close the

project. Accordingly the project structure will be created for execution in the system.

DHI Projects:
Projects are initiated at DHI via three different channels.
 Projects may be directly handed over by the government to DHI to spearhead and implement,
projects may be proposed by private individuals/companies from both outside and inside Bhutan and
finally projects may be initiated by the DHI project team based on DHI’s investment plans and other
related research.
 Once DHI receives a proposal to develop a project through any of the above channels, DHI
management conducts a short pre-feasibility study of the project and then takes decision on whether
to submit the proposal to the Board for approval or not.
 If project is approved, DHI management will assess how to go about with the project. Further studies
as required may be conducted internally or outsourced depending on the capacity available.
 If project is internal, project team prepares project plan.
4.1.1 Purpose of Creating Project Structure:
The structuring of a project is important since it has impact on budgeting and also on project settlement
and reporting. Depending on the type of project and the emphasis on the project monitoring, the structure
will be created in the Project System using the operative structures i.e., Work Breakdown Structure &
Network. The purposes of creating project structure are as follows:
 To plan Capital Investments by individual Departments.
 To have a functional basis where process planning, cost planning, scheduling as well as
project control can be done.
 To have a system where planning, analyzing, controlling and monitoring schedules and
resources can be done.
 To document the various activities that has been performed during the project along with the
duration.
 To plan and procure the components and services required during project implementation.
 To capture the cost incurred during project execution.

Table 4.1.1: Link of FSBP
S. CSBP No.
Major Process Sub Process Minor Process
No. FSBP No.
1. Creation of WBS DGPS01
Creation of project 2. Creation of Network DGPS02
1 Project Structure
structure 3. Creation of Activity DGPS03
DHI01
4.1.2 Master Data:
It is an object for defining project management process. The master data can be in the form of WBS
elements, network activities, work centers, milestones etc. which has been described in chapter 3.
4.1.3 Solution in SAP:
Investment Program Structure:
Investment Management program represents the planned or budgeted costs for the capital investments
(or other projects) of an enterprise or corporate group in the form of a hierarchical structure. The
hierarchical structure can be defined in any form according to the requirement of the company and is
independent of organizational units in the SAP R/3 System (such as, plants, and so on). Investment
Management programs are also used for planning and budgeting for individual measures such as:
 Planning of budget
 Administration of budget
 Monitoring of a global budget
Appropriation request:
The functions of appropriation request are as follows:
 Appropriation requests serve a similar function as purchase requisitions and maintenance

notifications.
 Appropriation requests allow storing investment plans, ideas in the stages before they are
actually implemented concretely.
 In the context of capital investment planning, appropriation requests make it possible to

include planned investments in cyclical (annual) investment planning using an investment
program.
 Once the appropriation request has been approved, the information can be transferred to the
projects that will be used for actually carrying it out.
Project Definition:
Project definition will be created after the following pre-requisites are met:
 Project has been approved by Management/Board
 Project has been identified with clear goals
 Project Name, Structure, Start date and Finish date, and Hierarchy of the WBS Elements are
identified by project manager after the necessary approval by the management.
Project Definition Creation:
A clearly and unambiguously structured project is the basis for its planning, monitoring, control and
success. It forms the basis for organization and coordination in the project. It shows the amount of work,
the time required, and the costs involved in the project. Project definition is the binding framework for all
organizational elements within a project.
In order to carry out a project in its entirety, the project goals (WBS Elements start and finish date etc)
must be precisely described and the project activities to be carried out must be structured. Following are
the requirements:
 Overall project start and finish dates are to be defined.
 Determine the Project Objectives (Responsible person, text, etc.).
 After creating project definition the project is to be structured (i.e. finalizing the WBS and
WBS Elements) depending on project requirements. Work breakdown structure for the project
can be created by using the Work breakdown structure elements. When a project definition is
created, a relevant project profile for the project must be assigned.
 The project profile contains default values and parameters for processing the project, for
example, which factory calendar is used for time scheduling, organizational values such as
controlling area, company code, profit centre and plant or which settings are used for
graphics that can be passed on to the WBS elements.
 Values for the project profile are maintained in Project System Customizing. If a work
breakdown structure is created, the project profile is saved in the project definition.
 Default settings can be changed from the project profile while working with the work
breakdown structure. For example, while creating a project structure for Dagachhu
Hydropower Corporation, relevant project profile should be assigned. System will assign
organizational units such as controlling area DP01, Company Code DH01, and Plant DA01,
from project profile to project definition, WBS elements and Network activities.
Work Break down Structure: The individual levels of the hierarchy in a work breakdown structure enable
us to organize a project into steps. A WBS structure could be defined phase wise, function wise, object
wise or as a hybrid structure.
For example: Desktop study, RS Study, DPR study, feasibility study and execution is phase wise whereas
Civil, Mechanical, electrical and Instrumentation etc., are considered as function wise.
A WBS can further be broken down into steps of individual elements, till the level of detailed breakdown
required to carry it out. These elements are referred to as work breakdown structure elements (WBS
elements) in the Project System.
Work breakdown structure in the project can be divided into useful steps i.e., WBS elements by specifying
basic dates, the work involved, and estimated project costs. This is the responsibility oriented structure,
mainly depending on how one would like to control (e.g.:-costs) and manage (e.g.:- Information) in the
project.
The WBS is an important tool, which helps to plan, monitor and control dates, costs, resources and
payments. Therefore, the objects where control is required functionally, the same needs to be structured
as a WBS, the lowest level representing work packages. It is recommended that a maximum of 3 to 4
level structure is defined for projects with a maximum of 30 to 40 WBS elements, with a standardized
structure to represent all DGPC, and DHI projects. It is to be noted that each project should only have one
top level WBS element (root WBS element).
The three Operative indicators in PS Module are as follows:
 Planning element
 Account Assignment Element
 Billing Element
Planning element is to be activated if one wants to plan the costs for respective WBS element.
Account assignment element facilitates to post the actual costs to respective WBS element.
Billing element allows posting Revenues to respective WBS element.
It is always recommended:
a) To activate Planning element indicator to All WBS elements in the structure.
b) To activate Account assignment element to the lower most WBS element since it will be easier
to track and settle costs. Since it will be easy to operate with planned costs.
c) In case of hydro power projects, the revenue generated during trail run of turbine, electricity
will be generated it results revenue has to be adjusted with project cost. The billing indicator of
relevant WBS element has to be activated.
Planning and Account Assignment indicator will be defaulted for the projects through customization.
Project Type: Project type in SAP will differentiate one project from another. The following project types
have been identified for DGPC
1. Joint venture
2. Own undertaking
3. Grant
The following project types have been identified for DHI
4. Domestic JV
5. FDI Project
6. DHI Owned Project
7. PPP (Public Private Partnership)
8. DPP (DHI Private Partnership)
9. Others
Network Structure: Network represents the flow of a project or of a task within a project. Various
structural elements of a project and their interdependencies can be graphically displayed through network
structure.
During the life of a project, networks are used as a basis for planning, analyzing, controlling and
monitoring schedules, dates and resources (such as manpower, machineries, materials, documents and
drawings etc.,).
A network consists of Activities, Activity elements and Relationships and graphically displays the
relationships dependent on time to illustrate the logical process chain.
The cycle analysis is a function that can be used only in the network structure graphic. A cycle is a closed
sequence of relationships and activities ("closed" means that the flow starts from one activity and ends
back at the same activity with relationships). If the activity-relationship-activity path is cyclic, the network
cannot be scheduled using normal method. In such cases, cycle analysis, a tool that enables to detect
cyclic relationships is used to correct them and schedule.
Optional: Activities are given in detail by activity elements. Types of activity elements include internal
processing elements, external processing elements, and general costs elements.
All activity elements have a date reference to the activity to which they are assigned.
With respect to DGPC/DHI:

 Program structure will be created in the form of hierarchy to agree with the organizational
plan of DGPC/DHI and can be used to manage projects which belong to one controlling area
(DGPC or DHI controlling area).
 Appropriation request will be created with reference to the existing node (i.e. Plants or
Departments) or to the new node (if the project is not undertaken under existing Plants or
Departments) as per requirement. Project proposal document will be attached to
Appropriation Request.
 Competent Authority will review the project proposal. Upon approval by DGPC/DHI
Management, it will be further submitted to the Board for review and approval. The person
delegated by the Competent Authority may approve or reject in the system by updating or
confirming the approval or rejection accordingly.
 Upon approval from the Competent Authority, project team will create project structure with all
the tasks and check list as activities in the system.
 In case of Hydropower projects, project definition, top level WBS element, will be created.
Before initiating each phase project team will seek approval from the Competent Authority
and then the structure of the phase will be created in the system.
 If standard projects are available, it will be copied as operational projects (optional).
 When a project definition is created, a relevant project profile for the project must be
assigned.
 Each project needs to be mapped in the system using a project coding mask. Based on the
first two characters in the project coding mask, the system would automatically format the
number assigned to the project by following the project coding mask.
 It is proposed to use the following project coding masks for each of the projects handled by
DGPC.
Table 4.1.2: Project Coding Mask for DGPC
ID Coding Mask Description

RE-000000-00-00-00-00-00
RE Renewable Energy Projects
A B C D E F G
IF-000000-00-00-00-00-00
IF Infrastructure Projects
A B C D E F G
RM-000000-00-00-00-00-00
RM Renovation & Modernization Projects
A B C D E F G
IT- 000000-00-00-00-00-00 Information Technology related Projects
IT
A B C D E F G
Table 4.1.3: Project Coding Mask for DGPC

A Project identifier
B First 2 digits represent the kind of project
Infrastructure
01: Building
02: Bridge
03: Road
Renewable
01: Hydropower
02:Wind Power
03: Solar energy
04: Biomass
Renovation and Modernization
01: Building
02: Bridge
03: Road
04: Power Plant
Information Technology related
01: IT related project
Second 2 digits represent the year in which project has started
Third 2 digits represent serial number of the project in that year
C Level 2 WBS element
D Level 3 WBS element
E Level 4 WBS element
F Level 5 WBS element
G Level 6 WBS element
Following project coding mask is proposed to use for DHI projects.
DP-000000-00-00-00-00-00
A B C D E F G
Table 4.1.4: Project Coding Mask for DHI
A DHI projects
B First 2 digits represent Industry sector
Industry Sector Key:
01 = Energy and Resources
02 = ICT
03 = Transportation
04 = Financial Services
05 = Trading
06 = Manufacturing
07 = Services
08 = Infrastructure and Real Estate
09 = Internal
99 = Others
Second 2 digits represent the year in which project has started
Third 2 digits represent serial number of the project in that year
C Level 2 WBS element
D Level 3 WBS element
E Level 4 WBS element
F Level 5 WBS element
G Level 6 WBS element
 Once a project is created, next important step in the project process is to structure the
project. Using PS, a project can be structured in two ways i) work break down structure and ii)
Networks and activities. Both of these are described briefly below.
 If project structure is copied from standard project or simulation version, structure can be
modified as per requirement.
 If any task or item in the checklist is not existed in the structure, those can be created as
activities.
 If any task involves work and cost, quantity of work, relevant work center will be maintained in
the activity.
 If task is related to service provider, service activity will be maintained and relevant services
from the model services can be copied.
 As per the sequence of the activities proper relationship will be maintained between the
activities (FS,SS,FF,SF).
Sample Structure diagram with numbering is shown in Figure 4.1.1:

Sample Project
Sample Project
RE-010902
RE-010902
Desktop Study Reconnaissance Pre-Feasibility Feasibility Study DPR

Desktop Study Reconnaissance Pre-Feasibility Feasibility Study DPR
Study Study
Study Study RE-010902-04
RE-010902-01 RE-010902-02 RE-010902-03 RE-010902-04
RE-010902-01 RE-010902-02 RE-010902-03 RE-010902-04 RE-010902-04
EIA Study SIA Study

EIA Study SIA Study
RE-010902-04-01 RE-010902-04-02
RE-010902-04-01 RE-010902-04-02
Figure 4.1.1: Sample structure Project
4.1.4 Standard Project:
Project management requires numerous activities involved to be planned, controlled and monitored
precisely, systematically, and efficiently.
Successful project management requires structural identification of all processes that are necessary to
and depict them in a structural and process-oriented way. A clearly structured project and precisely
described project goals build the basis for successful planning, monitoring, and control of projects.
Although each project is unique, most efforts undertaken by a single organization follow a similar structure
or a finite set of similar structures.
SAP Project System module provides the standard structures or template, which simplify the process of
creating and planning various projects. Standard projects and networks are defined to facilitate the
creation of simulation project versions and operative projects. These templates speed up the creation
process and default as much data as is practical. The templates are set up to mirror, as closely as
possible, the most commonly used project structures. When the time comes to create new projects in the
system, these templates are copied to create simulated project versions or operative projects.
With respect to DGPC/DHI

 For each project type, project team will identify different work units and tasks.
 Work units will be created as work breakdown structure of the project using standard Work
Breakdown Structure.
 Minor tasks of each work units will be created as activities by assigning relevant WBS
element using Standard Network structure.
 For each activity estimated duration can be entered.
 Each task will be linked with each other using relationships.
4.1.5 Simulation Version:
It is recommended that simulation versions are used for what-if analysis. The simulation version is useful
to simulate and save changes to a project, without affecting the operative project. Simulation versions can
be changed, cost estimated and scheduled.
With the default projects as a starting point, the details of the actual project plan are added to arrive at
estimated costs, scheduling and resource requirements and generate sales documents. The operative
project is then used as the controlling object during the execution phase to capture actual costs and
manage the project resources and schedule.
However, the following functions are not available in project simulation versions:
 Manual planning of costs, revenues and payments in WBS elements: If an operative project is
transferred to a simulation version, the planned values are transferred to the WBS elements.
However the planned values cannot be changed directly in the simulation version.
 Integration with PP / MM
 Material requirements planning
 Status Management
The processes to create simulation version in DGPC and DHI would be as follows:
 Before initiating project, project team will create different simulation versions to see capacity
availability and economical feasibility with different alternatives.
 Simulation versions may be created with different combinations of internal resources and
external resources.
 Activities can be shifted from one period to another period to see impact of project cost and
resource availability.
 Each task of project duration can be reduced or increased to see whether project can be
finished within the specified timelines.
 Project team can compare project cost using simulation versions.
 Project team submits best version as proposed project plan to Competent Authority for
approval. After getting approval from the Competent Authority, project team shall copy
relevant simulation version as operative project.
4.1.6 Project Versions:
A project version shows the state of the project at a certain point time or at a certain status. Project
versions are the basis for statistical evaluations, to document (as a history) the state of the project in the
past and also can be used for comparison purposes. Many numbers of project versions can be created
depending upon the requirement. There are two types of project Versions i.e., Time-dependent and
Status-dependent.
In case of time-dependent project version, project version can be created manually at a particular point of
time and can be done in the WBS, network, or information system. In case of status-dependent project
version, whenever there is change in system or user status, the system automatically creates a project.
The user or system status has to be defined in order to trigger creation of project versions while
configuration.
It is proposed to use Time dependent project versions in DGPC/DHI to create manually the project
versions at the end of every month as part of month end closing activities.
4.1.7 Project Status:
Since the project is not a static object and has its own life cycle that begins when it is created and
continues till completion. During this period of life cycle, various business transactions which take place
change the project; for instance planning tasks, posting costs and changing dates.
The current status of a project determines the type of business transactions executed within the system.
The status management in Project System differentiates system status and user status.
System Statuses: Following are the “System statuses” and briefly described as follows:
Created (CRTD): It is the initial system status for new WBS elements created. In this status the project
can be structured and dates, costs etc., can be planned. Actual costs cannot be posted .
Released (REL): The released status can be set based on project approval. Actual costs can be posted
in this status after assigning costs/budget to WBS elements.
Technically Completed (TECO): This status is set for WBS elements which are completed from a
technical point of view; but still expects costs to accrue from the commitments (purchase order) already
made.
Closed (CLSD): Closed status is set for a work breakdown structure or WBS element which has been
completed from both logistic and an accounting point of view.
Locked (LKD): Locked status is set to lock for individual business transactions or all the data in a work
breakdown structure or WBS element.
User status: The user status is linked to the authorization whereby certain people are authorized to
create or change the status.
The process involved in Hydropower projects and Infrastructure is attached as an annexure 4.
4.1.8 Key Integration Touch Points:
S.no. Module Description Remarks

1 FI Values as defined in the Financial accounting module on the
organisation units such as Company Code and GL account, which
are populated while creating the project, based on the project
profile selected. Since, WBS element is also used as a cost
collector object; all the actual costs booked against a project are
cumulated in the project in addition to the appropriate GL account
in FI.
2 CO An organization unit value such as controlling area is defaulted by
the system at the time of project creation. In addition, cost
elements are used for planning of costs against the WBS
elements.
3 MM Purchase organization and plant are the two organizational units
from MM which get defaulted in project during project creation.
Process Diagram:
Figure 4.2: Flow chart for Project initiation.
Figure 4.3: Flow chart for Project structure building.

Figure 4.4: Flow chart for project template processing.
4.1.9 Description of Improvements:
S.NO. DESCRIPTION OF IMPROVEMENT

1 Project structure can be used for both large scale and small scale projects based on
project management needs.
3 Structuring the project hierarchically will give clear representation of the jobs to be
performed.
4 At any time project details can be captured by using project versions. Project versions
can be compared with operative project.
5 Any documents related to the project can be attached to the project using DMS.
6 Status of the project controls business transactions
7 Status of the project life cycle is updated to project using system status
8 Standard templates for the WBS structure and networks can be created and used across
the projects. This reduces the time taken to create the project from the scratch.
9 Simulation versions can be analyzed and compared with each other for ‘what if’ scenario
using information system.
10 Project can be differentiated as per the project type; Management can have Management
Information System reporting based on project type.
4.1.10 Process controls:
S.NO. Control process

1 Create Appropriation request by assigning project proposal and change status for
approval.
2 Based on the delegation of power the approval workflow will be triggered.
2 Appropriation Request will be approved or rejected by authorized person(s).
3 Project structure will be created and assigned to IM program Structure.
4 Creating, maintaining and updating of a specific project would be exclusively done by the
person(s) authorised for the project only. Access Control List (ACL) will be activated for
this purpose for all the projects.
4.1.11 Description of Functional Deficits /Gaps:
Not Applicable
4.1.12 Approaches to Covering of Functional Deficits /Gaps:
Not Applicable
4.2 Date Planning
DGPC/DHI executes various types of projects which include work packages and tasks. The concerned person
responsible for the work package needs to plan dates. Considering the various interlinked activities among
the different work packages, overall scheduling of activities need to be carried out. The dates are recorded on
the schedule which is prepared in spread sheet.

S. Major Sub Minor CSBP No.
No. Process Process Process FSBP No.
DGPS01
Project Manual DGPS02
1 Scheduling
Planning Automatic DGPS03
DHI01
4.2.1 Master Data:
 WBS element
 Network activities
Once the project is structured, the planning has to be done. Planning essentially covers cost planning,
time planning, material planning and manpower planning for the project.
Date Planning and Scheduling: In Project System, there are several options for planning and managing
dates and schedules (system updates automatically the earliest start date and end date of all activities
depending on backward / forward scheduling). Forward scheduling is used when we know the start date
of the first activity and the duration of the project, to arrive at the end date of the project; whereas
backward scheduling is used when we know the end date of the final activity and the duration of the
project and desire to arrive at the start date of the first activity. During scheduling, system uses normal
duration of internally processed and general cost activities, whereas for externally processed and services
activities the system uses the number of planned delivery days.
The type of date used for planning and scheduling can be decided based on the project requirements.
System also calculates required dates of planned material with reference to activity start date. Various
types of dates are used in projects and the same are described here below:
Basic and Forecast Dates: Basic dates are the dates that have a binding character for time scheduling.
Forecast dates are the dates that are expected based on more detailed planning or on changes that will
occur during the course of the project.
Scheduled Dates: Scheduled dates for networks (for both the internal and external activity) are the start
and finish dates of activities calculated by the system on scheduling based on the duration (days / Hours)
and relationship that have been entered.
Actual dates: Actual dates provide the information on the state of the project. Actual dates are entered in
the system manually through confirmations of various activities.
SAP PS supports four types of relationships between activities, viz:
1. Finish to Start (FS)

2. Finish to Finish (FF)
3. Start to Finish (SF)
4. Start to Start (SS)
With leads and lags, the system also supports the constraint. SAP PS supports Critical Path Method
(CPM) for project scheduling and calculates free float and total float.
There are various ways of carrying out project structuring, planning and scheduling in SAP PS system
using project builder, project planning board and structure planning. For example, project Gantt chart
could be viewed through project planning board.
Project Planning Board: The project planning board enables to process the entire project structure such
as WBS elements, activities, and the different objects assigned to them; in an integrated environment.
The project planning board is based on an interactive SAP Gantt chart. The Gantt chart comprises a table
and diagram area, and shows not only the hierarchical structure of the project but also the corresponding
situation with regard to dates.
In projects without networks, dates can be planned manually for the WBS elements (basic dates). The
project planning board can be used to plan basic dates for the WBS elements simply by dragging the
mouse. Structure planning function can be used to plan these dates in the form of a table.
Basic dates can be extrapolated from lower to higher-level WBS elements or, conversely, can be inherited
from higher to lower-level WBS elements. The consistency of scheduling data can be checked within the
WBS structure.
In the execution phase, the actual dates can be entered by dragging mouse. In the project planning board
or the information system, the actual dates can be compared with the planned basic dates.
Critical Path: The differences between the earliest and latest dates of an activity are referred as floats. If
these are less than or equal to zero, then the activity is defined as a critical activity. Critical activities
define the critical path of the project.
With respect to DGPC/DHI: It is recommended to use bottom-up planning method for the scheduled
dates at the WBS element level from the network activities, to arrive at the project end date.
Hydropower Project: Before initiating each phase, forward scheduling will be carried out.

1 MM System calculates requirement dates for
components
2 PS System determines capacity requirements
Process Diagram:
Figure 4.2.1 Flow Chart for Date Planning and Scheduling
S.No. Improvements
1 Provision to enter dates manually for WBS/ activity
2 Fully integrated management system ensuring project is being executed efficiently on time
3 Constrains can be maintained for specific activities
4 Critical path determination by system
5 Entire project schedule can be monitored using Gantt chart, critical paths and floats. No
third party software is required
6 System checks hierarchical consistency of time scheduling within the project structure
automatically

1 Once project structure is created, execute scheduling.
2 Creating, maintaining and updating of project planned data for a specific project would be
exclusively done by the person(s) authorised for the project only.
4.2.6 Description of Functional Deficits /Gaps
None
None
4.3 Planning of Resources and Material
DGPC & DHI executes various types of Projects like new installation and capacity enhancement etc.
Across all DGPC /DHI Units, most of the project activities are performed using external resources. The
internal resource utilization is limited to maintenance or general functions. Based on basic engineering and
detail engineering, the required material specifications and quantities are identified. Purchase requisitions for
materials and services are sent to purchasing dept. manually. DGPC & DHI needs to have external resource
planning for the project activities and generation of procurement requirements. DGPC &DHI makes use of
materials which are directly procured for specific project and also consumes from general stock from stores
as well.
Table 4.31: Link of FSBP

S. CSBP No.
No. FSBP No.
DGPS01
1 Project Planning Resource Planning Resource Planning DGPS02
DGPS03
DHI01
2 Project Planning Material Planning Material Planning
4.3.1 Master Data:
 WBS element
 Network Activity
 Material Master
 Service Master
 Work Centre
Resources: The purpose of resource planning is to determine the resources usage to perform the
activities planned in the project structure.
When DGPC/DHI wants to track internal resources, internal processed activity will be used. Service
activities are used if services are procured from the external agency. The resources in Project System are
as follows:
Internal Processing: Internal processed activity contains a work center at which the work is to be carried
out. It contains the working time and the duration of the activity. The assignment of the work center to a
cost center provides an activity type and a rate so that planned costs can be calculated for the activity.
 DGPC/DHI project team will have to create internal processed activities to plan the resources
required for the work that is carried out internally in a project.
 Relevant work center has to be assigned to the internal processed activity.
 The activity type is determined from the work centre. This is essential for the calculation of
the cost for an activity.
 During scheduling, the system determines the capacity requirements for the project.
 The objective of capacity planning is to provide a final schedule by considering the capacity
requirements of the facilities and work centers as well as the time structure of the processes.
Often, capacity supply does not match capacity demand.
 Project team will compare the capacity requirements for the projects using project planning
board for the work centers assigned to internal activities. These work centers appear as bars
on time axis. Red sections of these bars indicate overload within a specified period.
 Project team will level the capacities by changing the work centre or rescheduling the activity
to a period when capacity is available.
Work Centre:
 Work Centers represents a group of people with the same skill set which belong to the same
cost center. Individuals assigned to a cost center are linked to a corresponding Work Center
so that accurate rates can be determined for labour cost planning purposes. A work center is
the place where an activity is carried out or work output is produced.
 System can determine capacity requirements when work center is assigned to activity.
 Work centers contain data for costing activities.
 Work centers also contain the scheduling and capacity data required for scheduling and
capacity planning.
 System calculates capacity for work centre using number of Individual capacity, work hours
per day and utilization of percentage.
 Employee records from HCM module are linked to the respective work centers which in turn
are assigned to the activities in the projects.
Workforce Planning:
 In the project, the most important resource considered is the project staff.
 Using workforce Planning DGPC/DHI project team will distribute the work from network
activities to project staff using project view.
 Resource planning at activity level of the project is possible in SAP when employee records
are maintained through HCM module. In the system, employee data will be maintained as
info types using HCM module.
 Using info types 0001, 002 and 007 organizational assignments, personal data and planned
working time will be maintained respectively.
 This info types are important for workforce planning.
 When the activities are confirmed during the project execution phase, capacity requirements
are consumed and actual dates are entered and actual costs are updated.
External Processing: Externally-processed activities are used for procuring activities or services that are
not procured or available within the company. Purchase requisitions are generated for externally procured
activities.
Service activities: Service activities are also used to procure services externally. Unlike externally-
processed activities, this activity type enables to define service specifications and value limits for
unplanned services rendered by the service provider. Service processing which includes entry and
acceptance of services performed) is also carried out by the Purchasing Department.
Service procurement is mapped in networks by means of external processing and service activities.
When an external processing activity is created, a purchase requisition is also created that is processed
further in Purchasing. Data from Purchasing Department can be used for external processing (a
purchasing info record, for example, that contains prices and delivery times for external processing).
A service activity triggers a similar purchasing process, but it contains a hierarchy of planned services to
be purchased, and value limits for unplanned services. The goods receipt for services involves two steps:
entering the service and accepting the service.
Material: The purpose of material planning is to determine the materials required in a project by means of
networks. This component is also used to monitor the material requirements and costs in projects, to
control the flow of materials and for scheduling.
During project planning DGPC/DHI project team, will assign components to activities that are required to
execute the work. Material number, Item category, Quantity, Purchasing organization and Purchase group
are entered.
Item Category: If planned material is stock item, item category as L is assigned and item category as N
is assigned for non stock item. When the activity is released, a PR and a reservation will be generated for
the material.
Requirement for Non stock item: If the allocated material is identified as a non-stock item, the system
generates a purchase requisition for the material. This document authorizes the Purchasing Department
to procure the required quantity of in a specified date.
Material stock management: Material components in networks can be managed in different stocks. The
following different types of stock can be used, for current scenarios:
Plant stock: This material is managed in general stock. It is not assigned to any particular project object.
Project Stock: The projects can have their own stock. The individual stock segments are assigned to
WBS elements.
S.no. Module Description

1 MM Material Master and Service Master are used to assign for activities as per
project requirement and purchase requisitions generated from project.
2 MM Purchase Requisitions are generated for External processing activities,
Services activities and components.
3 HCM Employee records are linked to the respective work centers which in turn are
assigned to the activities in the projects. Employees planned time and actual
time spent could be entered for monitoring and tracking purpose. Also,
availability of the resources could be tracked and analyzed.
4 CO Activity Types are assigned to work centre. When work centre assigned to
activities resource cost will be updated to project with respect to activity type
price
Process Diagram:
Figure 4.3.1: Flow chart for Planning of Resources and Material
S.NO. Description of improvements

1 Purchase requisitions for planned material and services can be automatically generated.
Purchase Department will decide procurement of material based on availability of stock at
Plant.
2 Material procured for project will be stored as project stock and consumption will be
tracked.
3 PS offers all the capabilities of MS Project but is fully integrated with the Finance,
Purchasing Department, and Human Resource Department.

1 If work is planned to execute by internal employees, internal processed activity will be
created.
2 If work is planned to be outsourced, service activities will be created.
3 If material is required for the execution of activity, material will be planned for that activity.
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4.4 Planning of Cost
DGPC/ DHI execute various types of projects like new installation and capacity enhancement etc. The project
team identifies new project and estimates cost and duration. Based on the project specific work packages,
equipment and activities, the cost is estimated. Previous project experiences, new/ revised prices, estimated
prices etc., are used in the preparation of cost estimate. Based on various options with respect to design and
technology, the estimates may vary. The estimated cost will be submitted to Competent Authority as budget
proposal.

CSBP No.
S. No. Major Process Sub Process Minor Process FSBP No.
DGPS01
1 Project Planning Cost planning Manual cost planning DGPS02
DGPS03
DHI01
2 Project Planning Cost planning Automatic cost planning
4.4.1 Purpose:
To have a functional basis where process planning, cost planning, scheduling or costing, as well as
project control can be done.
4.4.2 Master Data:
 Work Breakdown Structure
 Network
 Material Master
 Service master
Cost planning has different aims at different stages of the project and is elaborated as follows:
 During the conceptual and rough planning stage, cost planning acts as the base for an initial
cost estimate.
 At the approval stage, it forms the basis for the budget allocation.
 During project execution, planned cost is used to monitor and control cost variances.
Cost planning deals with the costs that are expected to incur during the execution of the project.
Network cost planning: DGPC/ DHI will carry out detailed cost planning at activity level for capturing the
details of materials and services required to execute a project. Network cost planning includes automatic
calculation of the planned cost from activities, activity elements and components. The quantity structure is
the basis for costing. It contains all network data needed for the calculation. It also includes costing sheet
for the overheads.
Cost of Internal Resources: Internal processed activity has to be maintained in order to plan the cost of
internal resources. Work (hours), work center, activity type and duration of activity has to be maintained.
The price of internal resources will be maintained using activity type. The system calculates the costs
automatically on the basis of the existing price/quantity structure.
External Resources Cost: Service activities have to be maintained in order to plan the cost of services
to be procured from service provider. Using service activities, service specifications are maintained for
various services provided by service provider. System calculates the planned cost using values
maintained for service specifications.
Material Cost: The material components are assigned to network activities in order to plan the cost of
material component. System calculates planned cost of material with moving average price maintained for
that material master. Travel expenses are planned using cost activity.
Overheads: System calculates overheads automatically on the planned cost based on percentages
maintained in the costing sheet.
If details are not sufficient to carry out detailed cost planning, structure oriented planning (overall
planning) can be carried out using WBS structure.
Manual Cost planning Methods: Manual cost planning in the WBS involves four methods:
 Overall planning (structure-oriented planning) is the basic planning, where costs are
entered for each WBS element. Figures are broken down by the fiscal year, if required.
o In this option, the individual WBS elements are planned in appropriate CO version.
o The costs are planned for the fiscal year.
o The costs are aggregated at higher WBS element level.
o In addition to planned values, the distributed, distributable, planned total, cumulative

etc can be seen.
Project cost versions will be used to support multiple cost versions. Version 0 (zero) will be used as active
version for the purpose of capturing the current planned and actual costs. Versions 1 to 5 will be used for
capturing various other estimates of the costs throughout the project duration. System also supports
copying of planned values from one version to another version.
S.No. Module Description

1 CO Even though cost planning is carried out in PS module, it uses the CO
functionality of cost element planning.
2 CO CO versions are maintained for structure cost planning and easy cost
planning.
3 CO Cost element maintaining with respect to Activities and Components.
4 MM Any material or service to be procured for a project need to be created as a
master data in Material Master module.
Process Diagram:
Figure 4.4.1: Flow chart for Planning of Cost
When detail cost planning is done using network activities, part of project is rescheduled, cost planning is
shifted automatically.

1 Projects will be assigned to the relevant node of the hierarchy structure of DGPC/DHI.
2 Estimated cost of assigned projects can be accumulated and viewed at individual and
entire organization level.
3 Creating, maintaining and updating of project planned data for a specific project would be
exclusively done by the person(s) authorized for the project only.
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4.5 Budgeting
Hydropower projects:
After identifying the project, project team submits project proposal along with rough cost estimation for the
project to DGPC Management/Board for approval. After getting approval from DGPC Management/Board,
project team gets budget approval by submitting detailed cost estimate for desktop study. Desktop study will
be initiated and expenditures are booked against Desktop study budget.
Upon completion of Desktop study phase project team submits desktop study report to DGPC
Management/Board/DoE. Upon approval of Desktop study report, Reconnaissance study will be initiated.
Project team submits estimated cost for Reconnaissance study to DGPC Management/Board. Upon approval,
project team will assign approved budget to Reconnaissance study. Similar process is followed for other
phases of the project.
Other projects of DGPC:
DGPC’s Board approves the budget for the proposed project. Cost estimate is the basis for budget. After
budget allocation, monitoring is carried out manually by evaluating payments and other expenses.
DHI projects:
DHI management /Board approve the budget for the project proposals which have been justified. Cost
estimate is the basis for Budget. Budget monitoring is carried out manually by evaluating payments and other
expenses.

Major CSBP No.
S. No. Sub Process Minor Process
Process FSBP No.
1 Budgeting Original Budget Original Budget DGPS01

DGPS02
DGPS03
Supplement DHI01
2 Budgeting Budget updates Transfer
Returns
4.5.1 Purpose:
 To have control over actual cost incurred for the execution of Project.
 To have a system, where budget planning, analyzing, controlling and monitoring can be done.
4.5.2 Master Data
 Work Breakdown structure

 Period / year
DGPC projects: Projects which are assigned to program structure of Investment Management, the
planned cost of projects (Budget proposal) will be updated to program structure. This will be an estimation
of required funds. Details of cost planning will be submitted to Competent Authority for review and
approval (offline activity). DGPC Management and Board will review and approve budget for projects.
Person(s) delegated by DGPC Management will allocate budget to the program structure. This is
approved budget of investment measure. Authorized person(s) will distribute budget further from program
structure to projects as approved by the Competent Authority. Authorized project team member will
distribute budget further to subordinate WBS elements of project, which is the original budget of project.
Hydropower Projects: Before initiating each phase, detailed cost planning will be carried out by
allocating resources like human resources, materials and equipment as per project’s requirement and
carry out scheduling. If tasks are to execute internally, internal processed activities are created for which
materials and activity types will be assigned and system will calculate the planned cost. Otherwise the
tasks or works to be outsourced to external agency will be created as service activity with technical
specifications. System will calculate planned cost of service activities as per the cost mentioned against
the BoQ/specifications of the services. Superior WBS element of the phase will be assigned to relevant
node in the DGPC hierarchy structure of Investment Module. Planned cost of that phase will roll up to
hierarchy structure, where DGPC Management can review planned cost of that phase. The planned cost
will be submitted, in paper, to Competent Authority for approval. Competent Authority will review the
estimated cost. Upon approval from DGPC Management it will be further submitted to Board to take
decision on budget. Person(s) delegated by DGPC Management will allocate budget to the program
structure. This is approved budget of investment measure. Authorized person(s) will distribute budget
further from program structure to phase (WBS element) of project as approved by the Competent
Authority. Authorized project team member will distribute budget further to subordinate WBS elements of
project, which is the original budget of project.
If additional budget is required, project team will submit additional budget request to DGPC Management
and subsequently to Board. Upon approval, the person delegated by DGPC Management will allocate
additional budget to relevant program node in IM which will be further assigned to relevant phase of
project which will allow continuation of work.
DHI projects: Projects which are assigned to program structure of Investment Management, the planned
cost of projects (Budget proposal) will be updated to program structure. It is an estimation of required
funds. Details of cost planning will be submitted to the Competent Authority for review and approval
(offline activity). DHI management will review and take decision on budget for projects. Person delegated
by DHI management will allocate budget to program structure and then program structure. This is called
approved budget of investment measure. Authorized person will distribute budget further from program
structure to projects as approved by the Competent Authority. Authorized project team member will
distribute budget further to subordinate WBS elements of project. This is called original budget of project.
Figure 4.5.1: Sample Hierarchy Program Structure of DGPC with Projects
Availability Control Tolerances: System enables to monitor and control project costs using availability
control. It enables project team to control costs actively by issuing warnings and error messages when
costs are incurred. Availability control checks the current distributable budget (or release) against the
assigned value.
1. If the actual value reaches 80% of the Budget – System should give warning message
2. If the actual value reaches 90% of the Budget – System should give warning message along with
email to person responsible
3. If the actual value reaches 100% of the Budget – System should give error message
The current distributable budget forms the basis for availability control. The system checks automatically
the availability of budget while creating PR / PO and if there are any actual cost booking as per the
tolerances, i.e., if budget reaches 80%, the system will give warning message and after reaching 100%,
the system gives error message and automatically stops generating business transactions.
Unforeseen events, additions to the planned, increase in vendor price, etc., may make budget updates
necessary. Normally this budget update requirement comes up as a result of availability check.
Budget Updates: When there is requirement of extra budget, project team submits proposal to the
Competent Authority. Upon approval of extra budget from the Competent Authority, supplement budget
will be assigned at program position and then it will be supplemented to the project by the authorized
person(s).
If project has more funds than it is required, the excess funds can be returned. Return of excess fund in
the project is made from the bottom-up (from a lower-level WBS element to the next one up). Project
team can only return budget that is distributable or available.
Year –End closing activities:
 Commitments: Project team will use ‘commitment carry forward’ function to transfer
commitment values that are still open into the first period of the next fiscal year.
 Budget: Project team will use ‘budget carry forward’ function to transfer any funds not used
in the previous fiscal year to the budget of the new fiscal year after Management’s decision.

1 MM Budget availability control for commitments of
PR, PO and actual cost of GR, GI
2 FI/CO Budget availability control while posting any
miscellaneous cost postings
Process Diagram:
Figure 4.5.2: Flow chart for Project Budget

4.5.5 Improvements
 The availability control at each WBS element level will help the user to prevent excessive
commitment.
 Effective monitoring of planned cost versus Budget is possible.
 Once certain amount of budget values is utilized, an alert will be triggered to the responsible
person indicating the utilization of budget. Hence the necessary action can be taken.

1 Person delegated by Competent Authority will allocate budget to program structure and
then to assigned WBS elements of projects as decided by Management/Board.
Authorized project team member will distribute budget further to reaming WBS elements.
None
None
4.6 Procurement
4.6.1 Purpose:
Project specific procurement is one of the major activities of DGPC/ DHI Project management. Detailed
procurement processes including single tender, limited tender and open tender etc, are explained in the
Material Management (MM) module.

S. CSBP No.
No. FSBP No.
Purchase Requisition
Purchase Order DGPS01
1 Procurement Material Goods Receipt DGPS02
Goods Issue DGPS03
Invoice Posting DHI01
Purchase Requisition
2 Procurement Purchase Order
Services
Service Entry
Invoice Posting
4.6.2 Master Data:
 Material Master
 Vendor Master
 Service Master
 Purchasing Info Record
Project Procurement covers procurement of goods and services (including works) for a project. Material
and services can be initiated, procured and tracked throughout the project cycle. . A reservation is
generated for the material if it is identified as stock item. A reservation is an internal document that defines
the requirements of a material and reserves a specified quantity for the network activity.
A purchase requisition is an internal document that defines the requirements of a material or a service. As
soon as the activity is released, the system generates a purchase requisition for the material.
Purchase requisition will be created and the value of PR will be created as internal commitments for the
project. System will check the availability of the budget with committed value.
Technical Evaluation: Technical and commercial evaluation is done by the evaluation team. The
technical evaluation contains comparison of technical features and recommendation.
Purchase Order: Purchase order will be created by the Purchasing Department. Based on technical and
financial evaluation, purchase order will be issued to qualified vendor. When the purchase requisition is
converted as purchase order, external commitments will be created and internal commitments are
reduced by the value of purchase requisitions. System will check the availability of the budget with
committed value.
Goods Receipt: The project specific stock is traceable specific to the project object. Goods are received
with reference to purchase order and stored as project stock. Goods receipt reduces the external
commitment by the amount of purchase order.
Goods Issue: When the material is issued for execution of project activity, the project stock reduces and
the actual costs are debited to the corresponding activity.
Services:
 Generation of Purchase Requisitions: Service activity contain service specification

containing planned activities and value with limits for unplanned activities. The purchase
requisitions for the services are generated by creation of appropriate activities. Service
activities give rise to the planned cost of the project.
Techno-commercial evaluations:
 Service provider is finalized for the specific work/ services package based on technical and
financial evaluations and its approval by the Competent Authority.
 Issue letter of Intent to successful service provider.
 Service PO is issued.
 Based on this work execution is initiated.
Service acceptance: Service entry and service acceptance will be done by project team and will enter
the record of measurement in measurement book. Service entry sheet acceptance will post the actual
cost into the service activity.
Managing Stocks of Material Components: Material components in networks can be managed in

different stocks. Depending on the network and the settings entered in the material master, you can use
the following different types of stock:
 Plant stock: This material is managed in general stock. It is not assigned to any particular
sales order or project.
 Project Stock: Project can have its own stock and is viewed from material requirement
planning. The individual stock segments are assigned to WBS elements.
Materials that are needed to carry out the project are managed as project stock. Each WBS
element in a project definition has a separate individual stock segment. Each stock segment
is permanently assigned to a WBS element and, from a MRP view, is only available for this
WBS element.
Unlike general stock, the relevant WBS element must be entered, as well as the plant and
storage location, when entering goods movement.
Project stock can be valuated or non-valuated.
 Valuated Project stock: Every material in project stock is managed both in a quantity basis
and a value basis. The monetary value of each quantity of material is calculated separately.
All goods movements for the project stock trigger corresponding postings in the stock
accounts in Financial Accounting.
 Non-valuated project stock: Project stock, where each material is managed in terms of cost
on a quantity basis only. Goods movements to individual stock are not valuated and do not
give rise to postings in Financial Accounting. In general, the value of the project stock is
calculated in total at the period end by result’s analysis and the values are then transferred to
Financial Accounting.
Project-oriented procurement deals with monitoring the project relevant requirements with specific tools
and reporting functionalities.
ProMan: ProMan is an integrated tool that enables to process all information from the procurement
process about project objects, and execute individual procurement functions. The access is given to data
from the Project System, Purchasing, Material Requirements Planning, Production, and Inventory
Management. All objects and documents in the Project System are taken into account – both planned,
and unplanned objects, and documents that have been created manually.
Individual steps in the procurement process, such as creating reservations, purchase requisitions, and
purchase orders or entering deliveries from projects, goods issues, or balance sheet transfers can be
carried out directly in ProMan.

1 MM Project procurement is entirely integrated with Materials Management (MM).
Material master is created in MM. Transactions such as purchase requisitions,
purchase orders, goods receipt and so on, are carried out in MM module while
referring to a WBS element in each of these transactions to establish the
relationship between the material and the project.
Process Diagram:
Figure 4.6.1: Flow chart for Project Procurement
All the procurements of the materials and services for the project can be monitored and tracked
4.6.6 Process Controls:

1 Reservation will be generated automatically when material is planned for activities and
Purchase Requisition will be created automatically upon releasing the project.
2 System creates purchase requisition automatically for consultancy services/works upon

releasing the project.
3 System will check budget availability with purchase requisition commitments.
4 Purchase Order will be created with reference to Purchase Requisition.
5 Project Stock will be updated upon Goods Receipt.
6 Goods are issued against the reservation number.

7 Consultancy services/works are recorded using service entry sheet in the system with the
values of measurement book.
None
None
4.7 Project Execution
4.7.1 Purpose:
The project team or an external agency will carry out the design and detail engineering activities. The
work execution will again be carried out either by project team or by external agency for which site
supervision will be done by the project team. The activities where material procurement is required are
carried out by the purchasing dept. in consultation with project team. The actual measurements are taken
and recorded in the measurement book during the supervision. The deviations are also recorded.
Progress of sites activities are reviewed periodically and issues are resolved if any. DGPC/ DHI needs
comprehensive tool to record and consolidate the project activities relevant information.

S. CSBP No.
No. FSBP No.
1 Project execution DGPS01

Material procurement Material procurement
DGPS02
2 Project execution DGPS03
Service procurement Services DHI01
3 Project execution Activity confirmation Internal activity
4.7.2 Master Data:
 WBS element
 Network activities
During the phase of project execution, DGPC/ DHI project team has to update the project status on a
regular basis, by confirming the activities.
In order to execute the project, the project has to be released. It means before giving confirmations to an
operative project, the status of the project should be changed to REL (Release).
Release process in SAP indicates the change of project status. When an operative project is created, all
WBS elements will have CRTD status. When the status of the project is changed from CRTD (Created) to
REL (Release), the assigned WBS will also get released subsequently. The confirmation or cost booking
is possible only if project status is in released (REL) status.
Internal Activity Confirmation:
 Confirmations can be done only once the project and associated WBS elements have been
“released”. Precise confirmations are required for realistic and accurate project planning.
 The Human Resource module contains a Cross Application Time Sheet (CATS) and is
preferred method for time recording for internal employees and approval. The project team
will enter their confirmations using CATS (Cross Application Time Sheet).
 Project Manager or responsible person will have the authorization to approve or reject time
entries.
 The actual time worked on the project will be posted against the network activity. The time
confirmation would be transferred from CATS to CO and PS.
 Confirmations of an activity leads to an activity allocation which leads to actual cost credit, the
cost centre assigned to the work centre, and debit network activities.
 If any activity is done which is not a part of project plan and which involves cost, the same will
be created as an activity.
 The activities which are related to checklist can be confirmed by responsible person when it is
completed.
 Once the activities are confirmed, the scheduling has to be carried out for the project. This
will reschedule the project and therefore, delays can be determined.
Acceptance of Services:
 The service entry is created and accepted for the works/services, based on measurements
recorded in Measurement Book.
 The bills are processed in FI with reference to service entry document.
 Once the contractor submits the bill, the details will be entered in the system, which is known
as Invoice Verification.
 The Invoice Verification will verify the amount and quantity as per Service Entry Sheet
(Certification provided by project team).
 The vendor outstanding will be created after the creation of the invoice.
 The payment will be done against the vendor's invoice on monthly basis or milestone basis.
 DGPC/DHI project team initiates some registrations (Ex., FDI registration, CDM registration)
as part of project execution which are created as separate WBS or activities and confirmed
once process is completed.
Goods receipt and consumption: For non stock items, the goods receipt entry will post consumption of
material to the project activity. For stock material, the goods receipt updates the project stock.
Subsequently material is withdrawn for the project object for which it has been procured.
 Once the goods arrive, the goods are inspected and good receipt will be issued with
reference to PO. The goods will be stored as project stock.
 As and when goods are required for the execution of the project activity, the goods will be
issued for the relevant activity by the Purchasing Department upon request from project team.
Actual cost: Purchase requisition results in purchase requisition commitments for the project object.
When the purchase requisition is converted to purchase order, it results in purchase order commitments.
Actual costs will be posted upon issue of goods receipt and reduces the external commitment by the
value of purchase order. Goods issue reduces project stock and actual costs are debited to the
corresponding activity. Actual overheads are calculated based on the costing sheet entered in the WBS
element, network activity. Overhead calculation process results overhead expenses which are charged to
Network activities and WBS elements and it credits to cost centre.
Revenues: The power will be generated during the trail run of hydropower projects. DGPC/DHPC sells
this power to BPC or PTC of India. This revenue will be adjusted with project cost. For this, Invoice will be
raised through sales order for which account assignment is WBS element of the project. Once revenue is
received, it will be booked to corresponding WBS element with reference to invoice.
For the purpose of tracking progress and performance of the project, DGPC/DHI project team has
proposed to use progress analysis method and Milestone trend analysis.
Progress Analysis: Progress analysis is the tool to determine and compare planned and actual project
progress values. This enables to identify cost and schedule variances and take appropriate action.
The percentage of completion (POC) and earned value are important project key figures. These values
are evaluated either at the level of individual project components or for the whole project/subproject as an
aggregate figure.
Figure 4.7.1: Sample Graph for Progress Analysis
Process for Progress Analysis of DGPC/DHI:
Progress Analysis will be used by DGPC/DHI project team to know the current status of the project. Cost
based progress analysis method would be used for calculating, analyzing costs and schedule variances.
Percentage of completion (POC) will be calculated by the system based on planned and actual costs.
Planned and Actual costs up to the end of the period or up to a key date are considered and divided by
the overall planned cost of the project for calculating the Planned POC and Actual POC S-curve graphic
report and progress report data can be obtained. Value Index (CPI), Schedule variance (SV), Costs
Variance (CV), and Estimated Costs at Completion (EAC) values are calculated. Earned values (BCWP,
BCWS) will be calculated. It is a prerequisite to have planned costs and actual costs in project for
calculation of POC.
Milestone Trend Analysis (MTA) method:
MTA is a simple method for analyzing the dates in a project and compare them with planned data. MTA
tracks the performance of the project progress based on how milestones are met as compared to planned
schedule. DGPC/DHI will use it to recognize trends and deviations from the planned schedule promptly.
The scheduled dates of the milestones, which are relevant for the course of the project, are compared at
various points of time. Deviations from the planned schedule are made apparent. In the graphical form an
MTA chart is used, which is triangular where the sides are the times axes. The milestone dates are plotted
against the report dates. This analysis provides important clue to the Management in identifying trends
developing in the project and to take timely corrective actions. All milestones created for the project will be
made relevant for MTA for this purpose.
With respect to DGPC/DHI:
 If the internal employees are deployed for the project, the employee can enter work hours by
specifying activities using CATS (Cross Application Time Sheet). Authorized person(s) from
the project will approve work hours of the employee. Upon approval, cost and timelines of
internal employee will be updated to the project.
 During project execution, when PR and PO are created, the value of the PR and PO will be
shown as commitments.
 Actual cost will be booked through different business transactions such as confirming
activities, receipt of goods and service entry.
 Purchasing Department will process the procurement of services/works (through tendering

process) with reference to the purchase requisition of services/works from project. Purchase
order will be created upon selection of successful bidder. During execution of work, project
team will monitor and record the quantity of work executed using measurement book. Work
measured will be further entered in the service entry sheet in the system.
 When the Contractor/Consultant submits monthly bill, Purchasing Department will verify the
bill using invoice verification and service entry sheet in the system.
 Every time the amount of work is entered in the service entry sheet, the actual cost will be
posted automatically. Finance Department will make the payment.
 Work in the service entry sheet will be entered only after checking the quality.
 When cost reaches 80% of the budget, the system will pop up a warning message. When
cost reaches 90% of the budget, the system will trigger a mail to the responsible person of
WBS element. If cost reaches 100% of budget, the system will throw an error and the
remaining work cannot be carried out before allocating additional budget.
 Scanned copy of site inspection will be attached to relevant project object.
 The project information system is a tool with which project can be monitored and controlled.
During project execution, following reports are useful to monitor and control the project.
o Plan/Actual dates, duration with variation report
o Plan/ actual cost and Budget reports
o Cost element reports
o Capacity analysis
o Lists of reservations, purchase requisitions, purchase orders pertaining to the projects,

ProMan
o Stock/requirements overview
o Progress analysis
 After completion of each phase, project team will prepare report based on work carried out
and will submit to Competent Authority/Board for approval. Subsequently, upon approval,
report will be submitted to Department of Energy.
 Relevant documents such as approvals, reports, drawings etc., will be attached to the
relevant WBS element/activity for reference.

1 MM Commitment cost is updated when purchase requisitions are created
2 MM When purchase requisitions are converted to purchase orders the system still
shows the cost under commitment cost
3 MM When goods are received against purchase order, the system reduces the
commitment and increases the actual costs to the proportion of goods received
out of the total number of orders
4 MM Goods issue from stock also update cost on the project cost element to be used
for material costs
5 MM Inventory differences and other miscellaneous differences are also posted to the
project under different cost elements
6 MM Materials directly ordered for the project would update cost on the WBS element
and the quantity received in the inventory report will not be seen
7 FI Postings are made through miscellaneous cost postings where invoices is
received for the services but there are no purchase orders involved
8 FI Any other journal entries for adjustment are also posted to the project objects
Process Diagram:
Figure 4.7.2: Flow chart for Project Execution
1. Reduces the project lead time.
2. R/3 Standard reports are more suited for managerial reporting.
3. Controlling documents are generated automatically from financial expenditure postings.
4. Appropriate invoices are created and unplanned variances are documented.
5. The actual data generated is compared with the planned dates and costs.

1 Activity confirmation, goods receipt, goods issue and actual cost booking will be possible
project release.
2 Budget should be released before executing project transactions.
3 System will check budget availability when transactions are related to commitments and
actual cost.
4 Internal employees work hours will be captured through Cross Application Time Sheet.
5 Confirmations with respect to specific projects are to be done by a specified and

authorized person(s) only.
6 Even viewing the project structure and other data (dates, costs, etc) with respect to a
project is to be restricted to a group of persons.
4.7.7 Functional Deficits /Gaps:
1. DGPC requires triggering mail one day ahead of earlier start date and finish date of specified activity
to project team.
2. DGPC collects daily progress report pertaining to work execution and resource usage in terms of
man power, material and equipment in a specified time for both internal processed activities and
external processed activities. The daily progress report contains detailed information which is useful
for claim settlement.
3. In order to ensure that work has been carried out as per specification, design and drawing,
compliance certificate for work and post quality inspection is carried out. The site inspection
parameters and records are planned to be captured with respect to project activity.
4.7.8 Approaches to Fill the Functional Deficits /Gaps:
1. The mail trigger ahead of one day for specified activity of earliest start date and finish date can be
done through ABAP development.
2. Scanned copy of daily progress report will be attached to relevant project object.
3. Since SAP PS has no standard functionality to capture the quality parameters. Scanned copy of
inspection report will be attached to relevant project object.
4.8 Period end Closing
As per the standard rule of project, the cost needs to be settled before it is closed. This is derived from the
basic concept that projects are dynamic and have a definite start and end. Therefore costs should finally be
settled to some other business object.
DGPC & DHI carries out various internal Projects:
 Capital Investment projects: Settlement to Capital WIP / Fixed Asset
 Expansions (Renovation and modernization): Settlement to Fixed Asset

CSBP No.
S. Major
Sub Process Minor Process FSBP No.
No. Process
DGPS01
Project Settlement to
1 Settlement DGPS02
Settlement CWIP/Asset DGPS03
DHI01
Project
2 Project Closure Project Close
Closure
4.8.1 Master Data:
 Work Breakdown structure
 Network Activities
 AuC/Asset
 Cost centre
Project Settlement: Costs are collected in the project temporarily. They are settled to one or more
receivers as part of period-end process. A settlement rule is required to perform settlement and contains
distribution rules and settlement parameters for a sender object.
Carry out Project Settlement: If the project is capital work, the top WBS element will have an
Investment Profile, which causes creation of AuC (Asset under Construction) upon releasing the project.
The initial settlement rule need not be maintained to the AuC. However if the whole cost of the project is
not settled to the AuC and if a part of the costs need to settled to a cost center (as an expense), the
project team is authorized to maintain the settlement rule accordingly. The settlement rule provides the
valid period and the receiver information. Settlement profile provides the following receivers: Fixed Assets
(FXA), Cost Center (CTR), General Ledger (G/L), Work Breakdown Structures (WBS). Costs posted at
WBS Elements will be settled to the stipulated receivers as per the Settlement Rule on the corresponding
WBS Elements.
The actual costs incurred in a commercial object are allocated wholly or in part to one or more receivers
during the settlement. The debit posting assigned to the sender object (project) can be viewed even after
settlement. The settled costs are updated to the respective receiver objects and displayed in the report.
CAT: Following three categories of cost objects can be selected.
 CTR: If user wants to settle actual cost to the cost centre, select CTR
 FXA: If user wants to settle actual cost to the assets, select FXA
 WBS: If user wants to settle actual cost of the project object to the WBS element (ex: activity to
WBS element), select WBS
Settlement Receiver: User has to enter settlement receiver for which actual cost has to be settled. If user
selects CAT type as FXA, then specific asset has to be entered under settlement receiver field. If category is
CTR, then the specific cost centre has to be mentioned for which the cost has to be settled. If project object is
activity and user wants to settle cost to superior WBS element of activity, the settlement receiver has to be BS.
To select cost receiver object, place the cursor in the cell of settlement receiver field and press F4 from the key
board. The system will popup cost objects selection screen based on selection of the category you have
selected in the CAT field. For example: if you select CAT as FXA, the system will popup asset selection screen.
If you know details like company code/asset class and other details mentioned in the specified field of selection
screen, then the system will filter and propose settlement receivers list. Then user can choose required
settlement receiver from the list.
By default the system will propose 100% but user can mention how much percentage of cost can be
settled to the specified cost object. For example: Sometimes user may require to settle cost of project
object to more than one cost object by specifying amount or percentage to each cost object.
Settlement Type: User has to choose either PER (Periodic settlement) or FUL (Full settlement) based on
process.
Following Table is an example which shows settlement rules
CAT Settlement Receiver % Settlement type

FXA 100 AUC
400015-0
The costs posted at WBS elements initially will be transferred to Asset under Construction (AuC) as a
month end activity. The costs settled under AuC by the project team will be the input to the FI-Module for
capitalizing these costs under assets. The same will be settled at the respective asset during the period
end processing. It can be either settled at one or more assets depending on the number of assets that are
declared out for a Project.
Project completion report would be prepared by the project team and once the competent authority
approves it, project closure can be done in the system by attaching all relevant documents to
corresponding project.
Project closure:
The project closing will occur when the following conditions are met:
Outstanding Purchase Orders are delivered and no more material and service deliveries are expected or
kept in pending. All the unused materials of the project have to be identified. The unused project inventory
has to be transferred to a specified storage location based on Management’s decision. The unused
budget has to be returned to top level WBS element and further return to IM program node. The final
settlement has to be performed and all costs collected during the project life-cycle are capitalized or
expensed off. Any unused WBS elements during the project execution are deleted. Upon meeting all the
project deliverables, the project status TECO (technically closed) will be assigned by the project team.
This process stops any open purchase requisitions (not released for purchase order) and material
reservations. It also cancels the “remaining work” for the time confirmations so the project is 100%
complete from time perspective, while it can collect the outstanding invoices/journal vouchers from the
open Purchased Orders. If all of the above conditions are met, then the Project team closes the project
and will be done by setting the system status to CLSD (closed) at the project level. System status
designation CLSD (Closed) provides integrated closing controls and can be undone or reversed.
Note: No credit to be posted to WBS elements after settlement to fixed asset. Hence, the status of the
whole project to be set as CLSD once the capitalization is carried out.

1 FI Actual cost will be transferred from project to AuC
Process Diagram:
Figure 4.8.1: Flowchart for Period end closing and Project Closure
 Better Periodic monitoring, evaluation of the project cost can be carried out.
 On settlement only the costs collected at network level can be sent to a cost center or higher
level WBS element

1 AUC will be created upon releasing the project.
2 Settlement transaction has to executed under period end closing activity.
3 Before closing project unused materials are transferred from project stock to unrestricted
Plant stock and remaining budget has to be returned to IM program structure.
4 Before closing project, the final settlement has to performed and all costs collected during
the project life-cycle to be capitalized.
5 Once project is completed project status has to be changed to ‘closed’
6 Settlement of project and project closure can be done by authorized users.
None
4.8.7 Approaches to Covering of Functional Deficits /Gaps
None
5 INTERFACES
For PS Module implementations, following interfaces are envisaged:
5.1 Open PS:
5.1.1 Purpose:
1) DGPC/DHI currently uses MS Projects to manage the project. To import or export project plan, it is
required to integrate SAP PS with MS Projects.
2) Data exchange between two software should be two way and both reading and writing should be
possible.
5.1.2 Process:
1) Open PS for Microsoft Project (OpenPS4MSP) which is an add-on program that allows exchange of
data between SAP Project (PS) and Microsoft Project.
2) Data can be transferred from Microsoft Project to the Project System and from the Project System to
Microsoft Project. If it is difficult to access the system to create structure while travelling, MS project
can be used to create the structure and can be transferred to the Project System. It gives the freedom
and flexibility to access individual parts of the Project System from external system and carry out
important business transactions.
3) Following are the Pre-requisites for integrating MS Projects with SAP PS:
 Microsoft Windows® ME, Windows® 2000, or Windows® XP
 Microsoft Project 2000 and above (Standard or Professional)
 Local installation of a SAP GUI standard installation, SAP ECC6 and above
 SAP ECC6 and above, or mySAP ERP
4) The Open Project System is an addition to the Project System. The software is not directly part of the
SAP R/3 System and has to be installed separately.
5) If Open PS was installed successfully Microsoft Project appears with a new Open PS tool bar.
Choose Connect to specify logon data and connect to SAP R/3 PS. If connected, choose Download
or Upload to interface with SAP R/3 PS. The screen captured of the same is shown below in figures
1-3.
Figure 5.1: Microsoft Project
6) The SAP Open PS Settings dialog box allows making various settings (Figure X) for OpenPS4MSP,
such as specifying the language of the Open PS4MSP interface and defining link types. To access the
SAP Open PS Settings dialog box, choose Settings.
One can carry out the following settings:
1) Defining Time Units
2) Defining Link Types
3) Defining Control Keys
4) Setting up Object Types
5) Factory Calendar
6) Map user fields
Figure 5.2: SAP Open PS Settings

7) The direction in which one transfers a project that exists in both Microsoft Project and the Project
System determines whether a new project is created or whether an existing project is updated.
8) The Role SAP_PS_EPS needs to be added to the user to enable upload of projects.
9) One can restrict the upload of tasks from Microsoft Project to PS. Use the Retain in PS field to do
this. Before carrying out the upload, set the Retain in PS field to yes for those tasks that are to be
uploaded to PS. If this field is set to No for a particular task, then the task is not uploaded to PS. This
enables to do detailed (lower-level) planning in Microsoft Project and also make higher-level data
available in PS.
Figure 5.3: Open PS Dialog Box
10) Microsoft Project and the Project System do not contain the same objects. The project system can
have two structures for planning projects, work breakdown structures and networks whereas Micro
soft project can have only one structure and does not recognize work break down structure as
independent objects. Summary Tasks are used in Microsoft Project to give projects a hierarchical
structure but there are no networks. Owing to this difference, it is necessary to map project objects
from one program to the other.
5.2 Primavera:
SAP PS can communicate effectively with other External Project Software (EPS).
5.2.1 Purpose:
DGPC monitors the High End Projects through Primavera.
5.2.2 Solution:
Following external third party software is available in the market to exchange data between Primavera
and SAP PS.
 Pipeline Software
 Impress
 LaborLogix
 Primavera Inspire
6 STANDARD INFORMATION SYSTEM
The Project Information System is flexible and comprehensive that can be used to monitor and control the
project data of individual projects, partial projects, or multiple projects. The system includes overview reports
and reports offering various degrees of detail.
The Project Information System is designed to meet the needs of both project management and ordinary
project personnel.
Report evaluation includes a wide range of functions. For example, one can branch off to other reports for
more detailed information, send reports via Mail, or print them.
The standard also includes reports offering different degrees of detail, summarizations, and views of current
data, version data, and archive data for:
 Structures
 Controlling
 Resources
 Material
Depending on the objects, functions, procedures and scenarios used, a wide range of data is generated while
the project is being executed. The central function of the Project Information System is to evaluate and
represent this data to various levels of detail.
The Project System includes the following information systems in order to fulfill these requirements:
 Dates/deadlines: Structure Information System
 Capacities: Resource Information System
 Budget, costs, revenues, payments: Controlling Information System
Cost Reports:
S_ALR_87013542 - Actual/Commt/Total/Plan in CO Area Currency
S_ALR_87013543 - Actual/Plan/Variance Absolute/Variance %
S_ALR_87013544 - Actual/Plan Comparison: Periods
S_ALR_87013537 - Commitment Detail
S_ALR_87013533 - Plan/Actual/Commitment/Rem. Plan/Assigned
CJI3 - Display Actual Cost Line Item

CJI5- Display Commitment items – Line item
Budget Reports:
S_ALR_87013557 - Budget/Actual/Variance
S_ALR_87013558 - Budget/Actual/Commitment/Rem Plan/Assigned
S_ALR_87013559 - Budget/Distributed/Plan/Distributed
S_ALR_87013560 - Budget updates
Structure Overview Reports:
CN41/CN41N - Structure Overview
CN42/CN42N - Project Definitions
CN43/CN43N - WBS Elements
CN46/CN46N – Networks
CN47/CN47N – Activities
Material/Service Reports:
ME5J – Lists the Purchase requisitions
ME2J - Lists the Purchase Orders
CN52N – Material Component Overview
MBBS - Valuated Project stock
MMBE - Stock Overview
MB25 - List of Reservations
ME2S - Service PO overview
CNMM - Project Oriented Procurement
CATS_DA – Working time
Confirmation Reports:
CN48N - Confirmations Overview
CJI3 - Display Actual Cost Line Item
Claim Report:
CLM10 – Claim Overview
CLM11- Claim Hierarchy
Milestone Trend Analysis:

CNMT – Milestone Trend Analysis
Period-End Processing Reports:
S_ALR_87011963 – Asset Balance by asset number
S_ALR_87011964 – Asset balance by Asset class
AW01N - Asset Explorer

ANNEXURES
6.1 Annexure 1 – Key Data Structure
Claim Notification Type:
S No Claim Notification type Description Internal Number range

1 D1 DGPC Deviation claim From 100000000 To 199999999
2 D2 DHI Deviation claim From 200000000 To 299999999
Project Type:
No.: Project type description

1 Joint venture
2 Own undertaking
3 Grant
4 Domestic JV
5 FDI project
6 DHI owned Project
7 PPP (Public Private Partnership)
8 DPP (DHI Private Partnership)
9 Others
DHI Responsible person:
S No Resp. Person Name of the Person Area

Number
1 2000 Karma Yonten CEO, DHI
2 2001 Damber S. Kharka ED,DHI
3 2002 Kinga Tshering PD, Education City
4 2003 Thuji Yonten Sr. Analyst, FID
5 2004 Passang Dorji Sr. Analyst, FID
6 2005 Kinzang Tobgay Sr. Analyst, FID
7 2006 Sonam Rinchen Sr. Analyst, CPD
8 2007 Om Bhandari Sr. Analyst, CPD
9 2008 Sonam Lhundrup Legal Counsel and CS
10 2009 Jigme Thinley Asst. Analyst, FID
11 2010 Choni Ome Asst. Analyst, FID
12 2011 Phuntsho Namgay Asst. Analyst, FID
13 2012 Deki Phuntsho Asst. Analyst, CPD
14 2013 Jigme Tshering Asst. Analyst, CPD
15 2014 Singye Lhamu Asst. Analyst, CPD
16 2015 Ugyen Wangdi Asst. Analyst
Key Data:
1) Progress version 100
2) Statistical key figures: 010 - POC, non-aggregated, 020-POC, aggregated, 030-Percent.of complete.
res.anlys
6.2 Annexure 2 – Business Process Master List
2_BPML_PS_0.8.xls
6.3 Annexure 3 – Consolidate FRICE Objects
2_BP_PS_Gaps_0.8.
xlsx
6.4 Annexure 4 – Business Processes
Hydropower Infrastructure.docx
project.doc

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PROJECT SYSTEM

Druk Green Power Corporation

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Version Document Date Authors Reviewed BY Change Control

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4.1.9 Description of Improvements:..............................................................................40

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AUC Asset Under construction

BBP Business Blueprint

BCWP Budgeted Costs of Work Performed

BCWS Budgeted Costs of Work Scheduled

CATS Cross Application Time Sheets

CDM Clean Development Mechanism

CPI Cost performance index

CSBP Current State Business Process

CTM Core Team Members

DoE Department of Energy

DoP Delegation of Power

DGPC Druk Green Power Corporation Ltd.,

DHI Druk Holding & Investments

DHPC Dagachhu Hydropower Corporation

DMS Document Management System

DPR Detailed Project Report

Wipro Ltd. Page 8 of 79

EAC Expected Cost Calculation

ECC ERP Central Component

ERP Enterprise Resource planning

FIAA Finance Asset Accounting

FICO Finance & Controlling

FRICE Forms, Reports, Interfaces, conversions and Enhancements

FSBP Future State Business Process

FXA Fixed Assets

HCM Human Capital Management

MRP Material Requirement Planning

MTA Milestone Trend Analysis

NEC National Environment Commission

O&M Operations & Maintenance

POC Percentage of completion

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PSMP Power System Master Plan

R&M Renovation & Modernization

SAP Systems, Applications and Products in data processing

SD Sales & Distribution

TECO Technically Completed

WBS Work Breakdown Structure

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 The primary objectives of the Project are as follows:

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1.2 BUSINESS BLUEPRINT OVERVIEW

 Incorporation of any comments by the reviewers wherever justified and applicable.

Table 1: Attachments of CSBP Business Processes Mapping with FSBP

Renovation & Modernization

Druk Holdings & Investment

The objectives of this document are:

Wipro Ltd. Page 12 of 79

1.3 PROJECT SYSTEM

It is sub divided into:

 Planning of Resource & Material

 Project Oriented Procurement

1.4.1 Financial Accounting: