Explaining Project Management with SAP S/4HANA EPPM Project System (PS)


After completing this lesson, you will be able to Explain project management with SAP S/4HANA Project System (PS).

Structure Overview in SAP S/4HANA Project System

SAP S/4HANA Project System - Introduction to Used Structures

A photograph of James, who works as a project planner at the Hybrid Machinery company.

James, who works as a project planner at the Hybrid Machinery company, plans to create two templates. One for the investment projects and one for the the logistics projects that are planned. He makes himself familiar with the structures used in SAP S/4HANA Project System (PS) to decide which elements should be used in his templates, depending on the project type.

A slide is shown, showing the relationship between WBS elements and activities. WBS elements have a 1:N relationship with activities. Activities can be assigned to WBS elements.

The two structures provided by SAP S/4HANA Project System (PS) for mapping projects are the following:

  • Work Breakdown Structure (WBS):

    A WBS is used to organize a project in the form of a hierarchy, and to map the structure of the project.

  • Networks:

    Networks are used to represent the individual project activities together with their temporal and logical relationships. In other words: networks represent the flow of the project.

You can map a project using only one WBS or one network. However, you can also represent a project using a WBS and one or more networks to use the characteristics of both structures together. A WBS consists of Work Breakdown Structure elements (WBS elements), that are arranged at various levels to produce a hierarchical model of the project activities to be carried out. Each individual WBS element can act as a controlling object for which you can plan and monitor costs, revenues, payments, budgets, and dates. A network represents the flow of a project. The individual tasks in the project are mapped as activities in a network. The temporal and logical dependencies between the various activities can be represented as relationships.

Activities form the operative basis for planning and controlling dates, costs, and resources (personnel, machinery, and materials). Activities are always part of a network with the network header at the top. When activities are assigned to WBS elements, the dates and costs defined in the individual activities are totaled (aggregated) at WBS level, and can be evaluated. Activity funds that are already assigned are checked against the budgets of the WBS elements.

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