Agenda

• Different Areas in bidding and source of data

• Proposed Changes in
• Tower Costing
• Bought Out Costing
• Construction Costing

• Suggested System Changes

• Issues provided by end users
• Support Required

Business Scenario that can be handled in CPM module is that cost estimate required in project bidding stage can
be created. For preparation of cost estimation, different departments from company provide inputs and then
strategic pricing is carries out.
 Different areas in Bidding
Area Resource Type Quantity Provided Rate Provided By In proposed solution who will input in
By system
Tower Costing Material Engineering Factory Procurement Factory Procurement will maintain rate

Conversion Cost (GL Account) NA Factory Marketing & Business Development

Depreciation (GL Account) NA Factory Marketing & Business Development

Packaging Cost (GL Account) NA Factory Marketing & Business Development

Scrap sale / Other Benefits (GL NA Marketing & Business Marketing & Business Development
Accounts) Development
Bought Out Costing Material Client / Procurement Procurement will enter material rate in
Engineering RFQ
Construction Costing Material Engineering Procurement Marketing & Business Development

Resources (Activity Type) Project / Site Team Project / Site Team Project / Site Team

Personnel (Activity Type) Project / Site Team Project / Site Team Project / Site Team

Expenses (GL Account) NA Project / Site Team Marketing & Business Development

Freight Expenses (GL Account) NA Logistics Marketing & Business Development

Insurance Expenses (GL Account) NA Insurance Marketing & Business Development

Overheads Expenses (GL Account) NA Marketing & Business Marketing & Business Development
Development
Tower Costing
Problem Proposed Solution Responsibility
Standard rates are not maintained for HT Standard Price should be maintained Factory Procurement
and MS angles & plates used during by factory team in CPM planning
tender stage plant.
Only escalation due to steel grade
should be entered by MBD team
Bought Out Costing
Problem Proposed Solution Responsibility

BOI Rate is RFQ should be created by procurement team Bought Out Procurement
manually and quotations provided by the vendor should
entered by be maintained.
MBD RFQ to be released for material price which is
to be considered in bid estimate.
Construction Costing
Problem
Planning Cost Centre is country
wise
Within same country activity rates
are region / state specific.
Hence this feature is not used.
Proposed Solution Responsibility
• Bid specific cost center should • Project Team
be created.
• Activity rates should be
maintained in the system using
transaction KP26.
• This activity of maintaining rates
will be done by Project Team.
Suggested System Changes
Problem Proposed Solution

Release of Project in SAP PS does not require Budget The system should not allow to release the project
to be activated unless status pertaining to budget is activated.

Materials are created in actual procurement plants Any material code available in system will be used in
and not in CPM planning plant bidding.

Error messages in the bid estimate upload program User friendly error messages in the upload program.
are not user friendly.
Issues provided by Users
Problem
Item codes to be given by purchase department along
with BoI comparative to Bid Manager.
Differential margin calls
Percentage loading on cost side
Material code creation takes 2-4 days
Towers are required to be quoted on per tower basis
Proposed Solution
Pre-bid RFQs to be created in system with reference to
CPM master project. The approved material price will
be fetched in CPM costing workbook.
Different financial plans with different margins have to
be created in system. Then create one financial plan
by merging all other plans.
Column for ‘Costs in %’ should be used for this
purpose.
Support needed from MDG team to timely facilitate.
Engineering team will provide per structure weight
and tower costing will happen in weight basis only.
Support Required
• This project will require team members from MBD & Project team.
• Function Heads Approval for process changes in areas:-
• Bought Out Procurement
• Tower Material Cost Rate
• Construction Costing