School of Professional Studies
Date
12-2024
Document Type
Thesis
Degree Name
Master’s in Project Management
Department
School of Professional Studies
Chief Instructor
Mary M. Piecewicz, MBA, MSPC, PMP
Keywords
SAP, scope, time, budget, change management, project management methodologies
Abstract
SAP (Systems, Applications, and Products) is a leading ERP (Enterprise Resource Planning) system that provides integrated business functions such as Customer Relationship Management, Financial Management, Business Intelligence, Product Planning, and Supply Chain Management. It enables organizations to streamline workflows, improve business efficiency, and enhance decision-making by sharing common data across various departments. SAP is highly customizable, allowing businesses to tailor it to their specific processes and integrate it with other systems, thus transforming organizational operations. However, the successful implementation of SAP depends on the software and effective project management to ensure the project is delivered on time, within budget, and meets quality standards. Project management plays a critical role in the success of SAP implementations by focusing on the triple constraints of time, scope, and budget. These three factors are interdependent, and any deviation from one can impact the others. For example, a delay in the project timeline may increase costs or lead to compromises in scope. Effective project management helps organizations avoid these pitfalls by ensuring efficient resource allocation, identifying risks early in the process, and maintaining consistent stakeholder communication. This enables the project to meet its objectives without exceeding the budget or timeline. These three interrelated elements form the core of the Project Management Triangle, and striking a balance is key to delivering a successful SAP project. Effective time management is critical in SAP implementations to prevent delays in delivery processes, which can lead to cost overruns and missed opportunities. Clear scope definition, including tailored customizations, helps avoid unnecessary complexity and ensures timely project delivery. Budget control through accurate estimation, resource allocation, and monitoring is essential to maintain financial viability and safeguard ROI. SAP plays a crucial role in optimizing operations, project management serves as a guiding framework for handling large-scale, multi-faceted transformations. The Project Management Manifesto for SAP emphasizes key goals such as clear scope management, efficient resource utilization, and risk mitigation. It also advocates for formal change management processes to avoid scope creep and ensure projects are delivered within the constraints of time, budget, and quality. By adhering to these principles, organizations can ensure their SAP implementations align with business goals and achieve the desired outcomes. By adhering to these project management fundamentals, SAP implementations in the manufacturing industry can achieve their objectives while effectively managing the triple constraints of time, scope, and budget. SAP has a whole suite for organizations to manage their business process including finance, supply chain, human resources, project management, and many more. SAP provides a lot of tools for project management such as SAP Solution Manager and SAP Commercial Project Management. Out of these, the SAP Project System (PS) module is suitable for large projects with industries such as manufacturing. This thesis is focused on how the SAP Project System manages all three constraints.
Recommended Citation
Panchal, Falguni and Khokrale, Shabduli, "Effective Project Management withSAP Project System (PS): Balancing Scope, Time and Budget Constraints" (2024). School of Professional Studies. 33.
https://commons.clarku.edu/graduate_school_professional_studies/33
