Dividing one project to many projects

[Former Member]

Dear PS experts,    

     We are implementing a construction project and I am confusing a bout handling a project with the case of the customer.
the customer has a department of electricity work and he wants to handle the electricity work in an independent project from the main project.

for example :

we have a project 
        villa X  (main project):
                      wbs element skeleton:
                                    service activities with vendor

                      WBS element plumbing work :
                                     service activities with vendors

                      WBS element electrical work :
                                     internal activities.

the customer want to make :
             electrical Work (project with another project profile):
                     WBS element electrical work for Villa X:
                                 internal activities.
                     WBS element electrical work for Villa Y:

                                  internal activities.

his purpose of doing that:
1- monitor the electrical projects independently to make a good evaluation and best analysis of the electrical services and can choose another Vendor to make the service if he has a best offer of doing electrical work for specific Villa.

2- A good resources management Way to the electrical Work by the electrical manager.
3- Independent budget for the electrical project.

4- make a progress analysis for the electrical WBS  in Villa X project by the project manager.

I told the customer that it's not a professional way to handle the projects and by this we will duplicate the cost of the activities for the electrical Work in the main project and the electrical project but he want to handle the projects by this way.

Is there a perfect solution to handle the projects in two projects.

[former_member210872 · Accepted solution]

HI, Ahmed,

Creating a separate projects department wise (Electrical, Civil), etc.. for progress analysis is not a problem and but when it comes to Costing and budgeting part of the project this solution is not feasible.

SAP always preferred to follow standard process to execute the project.

Even if you want, you can have below steps as a workaround.

Create  a separate project Called X/001 for Villa A with WBS X/001.01.

Create a separate projects & WBS as Electrical X/002.01 & civil X/003.01 .

Create a activity relationship between inter and intra project network if required for date planning.

Create a settlement rule in X/002.01 & X/003.01 with WBS receiver X/001.01.

Create a settlement rule in X/001.01 with some permanent receiver.

You can use requirement grouping if required for procurement of material.

Best Luck.

~Dnyaneshwar

[Former Member]

Hi Dnyaneshwar,

Thanks for your reply.

1- i have told the customer about this scenario before but he told me that he want the project manager for the main project to make a plan and actual cost for the electrical work WBS element.

in your Example :

WBS  X/001.01  have activities from the project manager point of view to the electrical Work to measure the progress analysis on it.
also WBS X/002.01 have activities from the electrical department manager point of view to measure plan and actual cost of the project and to make resource analysis and evaluation for the department.

what can make me in one of them to make the plan and actual cost just statistical to not duplicate the cost in the P&L income statement  ??

2- can u explain in details how can i Create a activity relationship between inter and intra project network if required for date planning more details please.

Thanks in advance,

Ahmed Ghareeb

[Former Member]

Hello Ahmed,

I understood your requirement and if you are using BI reporting, it is even simpler.

Basically your customer Needs only reports which Detail on Eletrical work.

So with the help of BI (if it is used) or developing Report selection for Projects. You can give him the desired reports with the first structure.

Since a Villa would have lot more than electrical work.

Later he might also come and ask for plumbing work or Wooden finishings.

So You Need to advice him for making a defined Project template and BI will run reports as and when Needed to give an overview or detial of each department invloved in construction of Villa

To manage separate Budget, you can have Investment programs defined for each type of work if needed

(xxxxxxxxx)         villa X  (main project):

                (xxxxxxx-10)       wbs element skeleton:  

                                  service activities with vendor      

                (xxxxxxx-20)      WBS element plumbing work :

                                     service activities with vendors    

                (xxxxxxx-30)     WBS element electrical work :(Budget controlled with separate Investment program)

                                     internal activities

From the above Illustration what you can do is maintain a Project template with xxxxx-30 for electrical and the BI reports will run frequently for all Project WBS  numbers ending with -30 to Display the cost and Progress Details also

Hope this helps

Regards

Vittal