SAP Solution in Detail
mySAP ERP




WORKFORCE
COST PLANNING
WITH mySAP™ ERP
© Copyright 2004 SAP AG. All rights reserved.                    HTML, XML, XHTML and W3C are trademarks or registered
   ...
CONTENTS
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
EXECUTIVE SUMMARY                                                    SOLUTION OVERVIEW
The mySAP™ ERP solution delivers wo...
WORKFORCE COST PLANNING
WITH mySAP ERP
The main task of workforce cost planning is to deliver the rele-    The next step i...
The generated planning data is then available for analysis. You     Planning Preparation
can also present it to line manag...
Data on individual employees are collected before data on orga-      Organizational Unit, Position, and Job Data Relevant ...
You can also execute a cost planning run for the entire organi-
zational structure, for individual organizational units, o...
The reports provided by the system allow you to report on the        Integration
data basis as well as on the cost plan da...
LOOKING FORWARD:
WEB SURVEY, WORKFLOW,
AND PORTAL INTEGRATION                                            SUMMARY
SAP conti...
11
www.sap.com /contactsap




50 050 387 (04/10)
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WORKFORCE COST PLANNING WITH mySAP™ ERP

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WORKFORCE COST PLANNING WITH mySAP™ ERP

  1. 1. SAP Solution in Detail mySAP ERP WORKFORCE COST PLANNING WITH mySAP™ ERP
  2. 2. © Copyright 2004 SAP AG. All rights reserved. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachu- No part of this publication may be reproduced or transmitted setts Institute of Technology. in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed Java is a registered trademark of Sun Microsystems, Inc. without prior notice. JavaScript is a registered trademark of Sun Microsystems, Inc., Some software products marketed by SAP AG and its distribu- used under license for technology invented and implemented tors contain proprietary software components of other by Netscape. software vendors. MaxDB is a trademark of MySQL AB, Sweden. Microsoft, Windows, Outlook and PowerPoint are registered trademarks of Microsoft Corporation. SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, and other SAP products and services mentioned herein as well IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, as their respective logos are trademarks or registered MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iSeries, pSeries, trademarks of SAP AG in Germany and in several other coun- xSeries, zSeries, z/OS, AFP, Intelligent Miner, WebSphere, tries all over the world. All other product and service names Netfinity, Tivoli and Informix are trademarks or registered mentioned are the trademarks of their respective companies. trademarks of IBM Corporation in USA and/or other countries. Data contained in this document serves information purposes only. National product specifications may vary. Oracle is a registered trademark of Oracle Corporation. These materials are subject to change without notice. These UNIX, X/Open, OSF/1, and Motif are registered trademarks of materials are provided by SAP AG and its affiliated companies the Open Group. (“SAP Group”) for informational purposes only, without repre- sentation or warranty of any kind, and SAP Group shall not be Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, liable for errors or omissions with respect to the materials. The VideoFrame and MultiWin are trademarks or registered trade- only warranties for SAP Group products and services are those marks of Citrix Systems, Inc. that are set forth in the express warranty statements accompa- nying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. 2
  3. 3. CONTENTS Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Solution Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Workforce Cost Planning with mySAP ERP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Using Workforce Cost Planning Capabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Workforce Cost Planning Process: Overview, Participants, and Roles . . . . . . . . . . . . . . . . . . . . . . . 5 What Is a Cost Item? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Planning Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Data Collection for Workforce Cost Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 – Employee Data Relevant for Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 – Organizational Unit, Position, and Job Data Relevant for Planning . . . . . . . . . . . . . . . . . . . . . . . 7 The Cost Planning Run . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Detail Planning for Line Managers and Personnel Cost Planning Specialists . . . . . . . . . . . . . . . . . 8 Consistency Checks and Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 System Configuration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Looking Forward: Web Survey, Workflow, and Portal Integration . . . . . . . . . . . . . . . . . . . 10 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3
  4. 4. EXECUTIVE SUMMARY SOLUTION OVERVIEW The mySAP™ ERP solution delivers workforce cost planning and To gain a competitive edge, enterprises must align all corporate simulation capabilities through mySAP ERP Human Capital resources – including human capital or employees – with the Management (HCM). Using these capabilities, personnel cost company’s overall business processes, goals, and strategies. planners can support both strategic personnel management This requires transforming traditional human resources (HR) and overall enterprise strategy. User-friendly Web applications functions into a comprehensive HCM program that integrates for managers allow planners to decentralize some of the plan- employees, business processes, and technologies with business ning and make line managers more aware of costs. With a broad goals and objectives, and that maximizes the value of an organi- data basis, the workforce cost planning capabilities of mySAP zation’s human capital by increasing its contribution to the ERP offer a high degree of planning reliability, providing a plan- business. By proactively participating in the implementation of ning basis for managers, personnel controllers, and compensa- the enterprise strategy, an HR department can develop into an tion experts, and helping them implement strategic planning. important link in the value chain and position itself as consul- By using planning data to generate budgets, planners can tant and partner for management and employees. streamline the organization’s internal processes and increase their effectiveness. A fundamental advantage of the workforce cost planning capa- bilities of mySAP ERP is that you can use scenarios based on dif- ferent assumptions to simulate future developments and then analyze the consequences of those developments. Headcount changes are reflected immediately in related costs or savings, and planned-actual comparisons allow you to monitor plan- ning continuously so you can promptly recognize deviations and take suitable measures. You can also simulate new com- pensation models and analyze their effects in detail. mySAP ERP helps enterprises of all industries: • Align corporate strategies with management, team, and indi- vidual goals throughout the enterprise • Develop streamlined HR processes that seamlessly integrate across global operations • Accelerate workforce-related decisions with real-time information • Support employees and managers throughout the employee life cycle • Deploy the right people to strategic initiatives quickly and efficiently • Enable employees to manage collaborative processes The workforce cost planning capabilities of mySAP ERP are important parts of this solution. This document describes these capabilities in detail. 4
  5. 5. WORKFORCE COST PLANNING WITH mySAP ERP The main task of workforce cost planning is to deliver the rele- The next step is data collection, which is also usually per- vant data for strategic planning at the highest level. The work- formed by personnel cost planning specialists. They first decide force cost planning features of mySAP ERP allow you to plan which employees, organizational objects, and cost-relevant data personnel costs based on a broad range of data. You can access should be considered during planning. Then they save the not only cost-relevant data stored in infotypes (sets of data planning-relevant data as cost items for each employee and grouped according to subject matter), but also payroll data. each organizational object in a planning infotype. When planning, you can also take into account compensation- relevant data on organizational objects, such as organizational When data collection is completed, the personnel cost plan- units or vacant positions. In addition to these data available in ning specialist can trigger automatic cost planning runs and the system, you can also include planning data from line man- simulate various scenarios. During the cost planning runs, agers. You can use the generated plan data in several planning based on specifications from system configuration and plan- functions within mySAP ERP. ning preparation, mySAP ERP generates additional and depen- dent cost items, for example, increased employer contributions Using Workforce Cost Planning Capabilities for insurance. In addition, workforce cost planning can take To implement the workforce cost planning capabilities of into account quota planning information contained within the mySAP ERP, you must also implement the organizational man- organizational management capabilities of mySAP ERP, for agement capabilities of mySAP ERP. Implementing the follow- example, positions that are planned for individual organiza- ing mySAP ERP capabilities will help you to exploit fully all the tional units in the future. possibilities that workforce cost planning offers: BOARD • Personnel administration OR HR PLANNING PREPARATION • Payroll DEPARTMENT • Enterprise learning management • Definition of Rules and Guidelines LINE • Enterprise compensation management PERSONNEL COST MANAGER DATA COLLECTION PLANNING For detailed analyses, mySAP ERP provides special infocubes, or SPECIALIST • Employee self-contained datasets, through the SAP® Business Intelligence • Organizational Units • Positions (SAP BI) component of the SAP NetWeaver™ platform. You can • Jobs also use the planning data in systems for enterprise controlling, such as solutions delivered in mySAP ERP Financials. COST PLANNING RUN • Automatic Calculation Workforce Cost Planning Process: Overview, Participants, and Roles DETAIL PLANNING mySAP ERP supports a practice-oriented workforce cost plan- ning process that you can use in its standard form or adjust to CONSISTENCY CHECKS AND suit your specific needs. At the enterprise management level, BOARD APPROVAL the framework for the next cost planning run is usually set once a year. During planning preparation, personnel planning Figure 1: The Workforce Cost Planning Process and Participating Roles specialists depict this framework as scenarios in the system. 5
  6. 6. The generated planning data is then available for analysis. You Planning Preparation can also present it to line managers for detail planning or for During planning preparation, the cost planning run specifica- additional processing by personnel cost planning specialists. As tions that will be used in the planning phase are depicted in the long as a plan has not been completed, all participants can fine- system, joining the foundations that already exist in the system tune their portion of the original plan. configuration. You can change these specifications quickly and easily during planning, for example, to take into account new When detail planning is completed, the planning data can be specifications. presented to the company board as a basis for discussion. When a plan has been approved, it can be released in the system. Various planning scenarios are created so that you can The workforce planning data can then be used for cost planning execute cost planning runs with different assumptions and in the SAP controlling component and for compensation compare the effects of different measures. For example, you management. might have a worst-case scenario and a standard scenario. At any time, you can analyze the generated plan data, compare Next, the system determines the valuation of nonvaluated cost different plans, and compare planned cost data with actual items. Here, depending on the organizational attributes of a payroll results through the SAP BI component of the SAP cost object, you can specify different valuations for different NetWeaver platform. Figure 1 shows the process steps and the cost items, for example, different premiums for different groups participating roles. of employees. What is a Cost Item? In addition, you can specify set limits for each scenario. These Cost items are the fundamental elements of workforce cost limits ensure that fixed upper or lower limits are maintained planning with mySAP ERP and form the basis for planning and for certain cost items during the planning run. Depending on simulation. During data collection, direct cost items, for exam- the organizational attributes of the cost object, the set limits ple, basic monthly salary, are written to the respective cost can be at different levels for each cost item. objects in the workforce cost planning infotype according to the data collection method used. During the planning run, Data Collection for Workforce Cost Planning dependent and additional cost items, for example, the employ- When preparing a planning run, you must specify which data er contribution to social insurance, are generated according to are to be used for workforce cost planning and make that data specifications in system configuration and planning available as a data basis. Various types of information can be preparation. used when planning: • Cost and amount data for individual employees Cost items for workforce cost planning can be monetary • Cost and amount data for organizational objects, such as amounts or quantities. Direct cost items are usually valuated expected costs for currently vacant positions, or aggregated after data collection. For example, “$5,000 per month basic values at the organizational unit level, such as training salary” is an amount and, therefore, a valuated cost item. On budgets the other hand, “eight overtime hours per month” is a quantity • Positions that were planned in quota planning with the and a nonvaluated cost item that is valuated during the plan- organizational management capabilities of mySAP ERP ning run. Set limits ensure that you cannot exceed or fall below certain fixed value. 6
  7. 7. Data on individual employees are collected before data on orga- Organizational Unit, Position, and Job Data Relevant for nizational objects because you can use employee data to gener- Planning ate the organizational object data. For example, you can use the Cost planning data for organizational units, positions, and jobs employee data to calculate the average salary for a particular are stored in their own cost planning infotype (infotype 5010). job, which is then entered as costs for a vacant position. Using The data can be obtained from the sources listed below: Business Add-In (BAdI) technology, you can also implement • From the organizational structure your own data collection methods, for example, for data collec- You specify how the organizational structure should be eval- tion from customer-specific infotypes. uated and for which organizational objects the data should be stored. Employee Data Relevant for Planning • From information on vacant positions Cost planning data are stored for each employee in their own You can use the known salary of an employee who is the infotype: workforce cost planning (infotype 0666). The advan- future holder of a position. tage of this approach is that the cost planning data are displayed • From planned compensation (infotype 1005) in the same familiar format as other HR master data. mySAP This can be stored in the system for jobs and positions. ERP also runs the standard authorization check for workforce cost planning data. The cost planning data generated for jobs can be country- specific so you can save different values for the job of developer You can collect employee data from the following sources: in different countries. If necessary, you can implement your • Basic Pay (infotype 0008) own methods to obtain data. • Capital Formation (infotype 0010) • Recurring Payments and Deductions (infotype 0014) The Cost Planning Run • Additional Payments (infotype 0015) You can perform cost planning runs when all the direct cost • One-Time Payments Off-Cycle (infotype 0267) items for employees and organizational objects have been col- • Pay Scale Reclassifications (simulated) lected and written to planning infotypes. During the run, the • Payroll Results (actual or simulated) system reads the cost items generated during data collection • Enterprise Compensation Management Data and, if necessary, valuates them according to the planning sce- nario. At the same time, mySAP ERP generates the dependent and additional cost items and valuates them, too. You follow a particular planning scenario for each cost plan- ning run. In addition, you can enter responsibilities and com- pletion dates for the individual planning runs and select a cost planning method. The cost planning method determines which data are used for a planning run. You can: • Use only organizational object data and ignore data on indi- vidual employees • Use the organizational object data and the data on individual employees 7
  8. 8. You can also execute a cost planning run for the entire organi- zational structure, for individual organizational units, or for parts of the organizational structure. Detail Planning for Line Managers and Personnel Cost Planning Specialists Detail planning is performed after the cost planning run. For detail planning, automatically generated planning results are presented to the line managers responsible and the personnel cost planning specialist using a Web interface. During detail planning, line managers have access to the cost Figure 2: Example of Detail Planning: Quarterly Overview with Cost Planning planning data for employees, organizational units, jobs, and Data for Employees, Jobs, and Positions positions in their areas of responsibility. Personnel cost plan- ning specialists have access to all cost planning data. Thanks to Consistency Checks and Approval the intuitive handling of detail planning, this activity, which Consistency checks are automatic checks run in the line managers do not often perform, can be completed quickly background to ensure data integrity. The board then reviews and easily. Detail planning offers the following functions: the planning data and determines approval as the final step in • Change cost items the workforce cost planning process. • Add cost items • Delete cost items Reporting • Simulate pay scale reclassifications for employees, positions, The workforce cost planning capabilities of mySAP ERP enable and jobs simple reporting. The planning data from a cost planning run • Change workforce requirements planning are displayed in a table in the list viewer, the SAP tool for • Change staffing percentage displaying and formatting lists. You can use all the list viewer • Display changes and undo changes functions for displaying and processing the data, for example: • Filters Using the relevant authorizations, you can specifically restrict • Totals and subtotals access to these functions. The changes made in detail planning • Sorting are saved as new data records to retain the original plan data. • In-place display of Microsoft Excel and Crystal Reports This means that personnel cost planning specialists can easily • Definition of your own layout track the changes made by line managers. Figure 2 shows an • Export to Microsoft Word and Microsoft Excel example of the detail planning interface. 8
  9. 9. The reports provided by the system allow you to report on the Integration data basis as well as on the cost plan data. The following reports mySAP ERP allows you to make use of the workforce planning are available to report on the data basis: data in several ways: • Data basis employees • Analysis of plan data • Data basis positions • Comparison of two plans • Data basis jobs • Comparison of workforce cost planning and actual payroll • Data basis organizational units data The following reports are available to report on plan data: The queries can be provided as an orginazational view and a • Plan data controlling view. • Planned cost comparison • Task list changes System Configuration • Original documents According to your needs, the system configuration contains the settings for workforce cost planning that are not often You can also use the provided analysis tools to answer questions changed. The following specifications are stored in the system that go beyond these functions. mySAP ERP contains a special configuration: workforce cost planning infocube and queries with which you • Cost items and their assignment to symbolic accounts, statis- can analyze the planning data in detail. The following queries tical key figures, and cost types are available: • Planning contexts (mySAP ERP comes with one planning • Comparison of workforce cost planning and actual payroll context, and you can create your own planning context to data vary cost item behavior.) • Comparison of two plans • Definitions of planning scenarios • Comparison of planned versus actual headcount • Settings for generating dependent and additional cost items during a planning run • Settings for the valuation and limitation of individual cost items according to an object’s organizational attributes • Your own methods for collecting data on employees, organi- zational units, jobs, and positions • Evaluation paths for planning runs in mySAP ERP 9
  10. 10. LOOKING FORWARD: WEB SURVEY, WORKFLOW, AND PORTAL INTEGRATION SUMMARY SAP continuously improves the workforce cost planning capa- mySAP ERP offers an integrated solution for personnel cost bilities of mySAP ERP. Planned enhancements include an inte- planning. It delivers the following advantages: grated Web survey, workflow support, and portal integration. • Reliable, broad data basis that offers a high degree of planning security An integrated Web survey would allow you to collect personnel • Simulation of future developments based on various scenar- planning data right before a cost planning run from line man- ios with different assumptions agers – the people who actually perform operative planning. • Planned-actual comparisons that allow continuous monitor- Appropriate customizing could enable you to create your own ing of planning Web surveys so you can ask line managers for the relevant data • User-friendly Web applications that allow you to decentralize during each planning round. parts of planning • Wide-ranging integration capabilities Using workflow, line managers could receive a questionnaire in which they enter their plan data for the coming planning peri- mySAP ERP supports business processes over and above depart- od. For example, a Web survey could contain a list of the mental boundaries, increasing the effectiveness of an employees a manager is responsible for. It could also contain enterprise’s internal processes. It enables businesses to gain a information on the jobs that are used in a particular area. The competitive edge in the marketplace by supporting both manager could enter planned overtime for each employee and personnel management and overall enterprise strategies. headcount changes for each job. The Web survey data could flow into the collection of both employee data and organiza- tional object data. Providing Web surveys and detail planning as Web applications in a portal specially devised for managers will enable those responsible to perform their personnel cost planning tasks in a familiar environment, without switching their system or inter- face. Intuitive handling and an underlying workflow could considerably increase the acceptance of such surveys. The time used for planning on paper, which is still a common practice, will be greatly reduced. 10
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  12. 12. www.sap.com /contactsap 50 050 387 (04/10)

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