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THE BLACK BOX
Script

Apr 14/2003

Estimating What SAP Has Cost You

   

Goto Notes
Preamble:

This article introduces an "Estimating Cost Model" against SAP Development after the fact. Quite often companies are in a position of not knowing what the actual cost of development was. Having a handle on the ball park cost of work done becomes important when considering replacement decisions or as a general management need to know thing.

While it becomes difficult to estimate real dollars in hindsight, a cost model is proposed that will effectively round itself out and error on the side of underestimating the cost. The unit of cost is what SAP calls a Transport. A transport is created by the developer which represents the cycle of work done by a Resource to affect changes and move these changes from the Development environment to Production.

The model will be based on the cost of implementing a SAPscript Business Document Infrastructure. The technique introduced is applicable for SAP related estimates.

 



Discussed will be:

Note 1: Cost Model for Work Done
Note 2: Establishing the Daily Cost
Note 3: Findings

 

 
Note 1
COST Model for work done
   

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This cost model will effectively round itself out and error on the side of underestimating the cost. The unit of cost is based on what SAP calls a Transport. A transport is created by the developer which represents the cycle of work done by a Resource to affect changes and move these changes from the Development environment to Production. This work has a direct cost around the Business, Functional and Technical Resources. Further within SAP, these resources are typically a mix of contractors and staff.

Note 2
Establishing the daily cost
   
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The daily associated cost requires estimating a percentage of cost for a contractor and a percentage of cost for an employee. In this example the cost breakdown is as follows:

One Day = 70% @ $900 for a Contractor and 30% @ $300 for a Site employee

allowing for benefits = $720/Day. One Year = 200 days

Note:  Adjust the number days per transport and rate as required with an attempt to error on the side of underestimating

Note 3
findings

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The cost of implementing and maintaining 185 SAPscript documents to date for this site has involved 8078 person days at a daily rate of $720 dollars generating a total cost just under six million dollars.

 

Copyright: Osberg Software Services Inc.
Web: www.ossincorp.com
eMail: k_osberg@yahoo.com
   
 

    copyright: Quest4 Market Strategies Inc, July 2009