SAP Best Practices for Building MaterialsV1.604 (US)

SAP Best Practices

General Information

SAP Best Practices for Building Material was developed for small and midsize companies to implement a solution quickly and easily.

With a focus on the building material business processes, this package gives you built-in support for the best business practices in the industry.

FunctionalitiesThe SAP Best Practices for Building Materials V1.604 package supports your business in the following areas :

Time-to-Market

Demand and Supply Planning

Operational Procurement

Manufacturing & Scheduling Execution

Warehouse Management

Sales Order Management

Complaint / Claim Management

Enterprise Asset Management

Quality Management

Analytics

Financials

Corporate Services

Time-to-MarketInternal Order R&D Planning

Internal Order R&D Actual

Internal Product Development

SAP BP for Building Materials V1.604 (US) Solution Scope (1 of 2)

Black = Baseline ScenariosBlue = Building Materials Scenarios Red = Mining ScenariosGreen = Consumer Product ScenariosPurple = UtilitiesGrey = Chemicals

Demand and Supply Planning

Logistics Planning

Revenue Planning

SOP through Long Term Planning Transfer to LIS/PIS/Capacity

Sales of Nonstock Item with Order Specific Procurement

Quotation for Procurement

Consumable Purchasing

Procurement without QM

Procurement Contract

Stock Transfer with Delivery

Stock Transfer without Delivery

Return to Vendor

Subcontracting

Procurement and Consumption of Consigned Inventory

Purchased Material Price Planning

Procurement of Cement (without QM)

Operational Procurement

Batch Management

Serial Number Management

Make-to-Stock Production - Discrete Industry

Make-to-Order Production with Variant Configuration

Make-to-Order Production w/o Variant Configuration

Repetitive Manufacturing

Production Subcontracting (External Processing)

Rework Processing (Stock-Manufactured Material)

Rework Processing (Work-in-Process)

Repetitive Manufacturing of Cement

Coal Mining

Coal Blending

Copper Mining

Copper Concentrate & Cathode Production

Manufacturing & Scheduling Execution

Warehouse Management

Lean Warehouse Management

Physical Inventory / Inventory Count and Adjustment

Shipping and Receiving with Warehouse Management

Sales Processing Using Third Party (w. Shipping Notification)

Credit Management

Sales Order Processing: Sale from Stock

Free of Charge Delivery

Sales Quotation

Sales Order Processing for Prospect

Sales Processing Using Third Party (w/o Shipping Notification)

Debit Memo Processing

Foreign Trade Export Processing

Customer Consignment Processing

Returnables Processing

Sales Order Processing with Customer Down Payment

Credit Memo Processing

Sales Order Processing with Collective Billing

Sales with Scheduling Agreements

Sales & Distribution of Concrete

Sales & Distribution of Cement (with Shipment & Transportation

ASN via EDI outbound

Yard Management

Sales Order Management Complaint / Claim Management

Returns and Complaints

Batch Recall

Enterprise Asset Management

Overhaul Management

Refurbishment Management

Work Clearance Management

Operational Maintenance

Preventive Maintenance

Quality ManagementQM for Procurement with Vendor Evaluation

Stock Handling: Scrap and Blocked Stock

Sales Returns with Quality Management (QM)

AnalyticsReporting with SAP Business Explorer

Quarterly Plan - Sales Quantity Forecast with CO-PA

SAP ERP Reports for Accounting

SAP ERP Reports for Logistics

SAP BP for Building Materials V1.604 (US) Solution Scope (2 of 2)

Black = Baseline ScenariosBlue = Building Materials Scenarios Red = Mining ScenariosGreen = Consumer Product ScenariosGrey = Chemicals

Corporate Services

Travel Management

EH&S Industrial Hygiene and Safety

EH&S Waste Management

General Ledger

Accounts Receivable

Accounts Payable

Period End Closing Financial Accounting

Cash Management

Cost of Sales Accounting

Asset Accounting

Asset Acquisition through Direct Capitalization

Asset Acquisition for Constructed Assets (Investment Orders)

Activate Document Splitting

Segment Reporting

General Cost Center Planning

Manufacturing Cost Center Planning

Standard Cost Calculation

Internal Order for Marketing and Other Overhead Planning

Period End Closing “General” Plant

Inventory Valuation for Year End Closing

Overhead Cost Accounting - Actual

Internal Order for Marketing and Other Overhead Actual

FinancialsReference and Simulation Costing

Sales: Period End Closing Operations

Period End Closing Activities

Cost Planning

Investment Management in PM

Actual Costing/Material Ledger

Industry-Specific Scenarios (1 of 2)

SAP BP for Building Materials V1.604 (US) provides the following industry-specific scenarios:

388: Procurement of Cement (without QM)

389: Repetitive Manufacturing of Cement

390: Sales & Distribution of Concrete

391: Sales & Distribution of Cement (with Shipment & Transportation)

392: Actual Costing/Material Ledger

298: ASN Inbound Via EDI

300: Yard Management

395: Cost Planning

396: Coal Mining

397: Coal Blending 398: Copper Mining 399: Copper Concentrate & Cathode Production

Industry-Specific Scenarios (2 of 2)

SAP BP for Building Materials V1.604 (US) provides the following industry-specific scenarios:

929: Operational Maintenance

930: Preventive Maintenance

937: EH&S Industrial Hygiene and Safety

938: EH&S: Waste Management

932: Investment Management in PM

886: Overhaul Management

887: Refurbishment Management

888: Work Clearence Management

Purpose and Benefits:

Procurement of Cement (without QM) (388)

Purpose Procurement without Quality Management

Benefits Use of integrative data sets such as purchasing info records Automatic Source of Supply assignment in purchase request Processing of role-specific work lists possible

Key process flows covered Display and assign purchase requisitions Convert assigned requisitions to purchase orders / Create purchase order

manually Change purchase order Approve purchase order Print purchase order Receive goods from vendor Invoice receipt by line item

Purpose and Benefits:

Repetitive Manufacturing of Cement (389)

Purpose

Repetitive Manufacturing is commonly used when a production process meets the following criteria:

The same or similar products are produced over a lengthy period of time The products produced are not manufactured in individually defined lots. Instead, a total

quantity is produced over a certain period at a certain rate per part-period The products produced always follow the same sequence through the machines and work

centers in production Routings tend to be simple and do not vary much

Benefits Simplified handling of the production process with full cost control

Key process flows covered Creating Planned Independent Requirements and Material Requirements

Planning Repetitive Manufacturing of Portland Cement – loose Repetitive Manufacturing of Portland Cement - 50 lb

Purpose and Benefits:

Sales & Distribution of Concrete (390)

Purpose In the concrete scenario special software for the truck dispatching is required.

Like the control system of the mixing plant it is linked by interfaces

Benefits Show industry specific integrated scenario Possibility to integrate industry-specific software

Key Process Flows Covered Credit Management Check for Sales Order Sales Quotation (optional) Sales Order Entry Credit Management Review Deliver the Sales Order by creating an Individual Delivery Picking Post Goods Issue Billing

Purpose and Benefits:

Sales & Distribution of Cement (with Shipment & Transportation) (391)

Purpose Sales and Distribution of Cement (with Shipment & Transportation)

Benefits Integrated transportation planning Show possibility to handle construction sites

Key Process Covered Credit Management Check for Sales Order Sales Quotation (optional) Create Sales Order Change of Ship-to Party to see Effects in Pricing Create Sales Order Check Sales Order Status Delivering the Sales Order by Creating an Individual Delivery Picking Post Goods Issue Billing Transportation

Purpose and Benefits:

Actual Costing/Material Ledger (392)

Purpose This scenario describes the process of calculating the actual cost of materials

and separating the differences between standard cost and actual cost into cost of sales and stock value using material ledger settlement function.

Benefits System calculates the actual cost of materials with material ledger CO-PA data is revaluated with actual cost

Purpose and Benefits:

ASN Inbound Via EDI (298)

Purpose Encompasses a business document exchange between business partners via

EDI. The outbound ASN uses the EDI file from the Wholesale Distributor to create a delivery notification automatically via EDI for the customer.

Benefits Step-by-step operational guide to work the scenario in a real system

Purpose and Benefits:

Yard Management (300)

Purpose Tracks the movement of trailers and provides inventory visibility with the

receiving/shipping yard.

Benefits Enabling management and control for the planned goods

Purpose and Benefits:

Cost Planning (395)

Purpose This scenario describes the Cost Planning for Mining Materials. The Cost Planning includes the planning in cost center accounting and product

cost.

Benefits This scenario covers procedures that can be followed in the SAP ERP system

when annual cost planning is carried out for an operating mine.

Key process flows covered Cost Element planning Internal Activity planning Planning Statistical Key Figures Cost planning using a Template Overhead allocation using a Costing Sheet Overhead allocation using a Template Cost Estimates

Purpose and Benefits:

Coal Mining (396)

Purpose This scenario describes the complete process from mine to stockpile as an example. It could

be also used to describe the process from a quarry to stockpile in the building material industries. The scenario includes crushing of the rock and moving to a stockpile.

Benefits PI (Process Instruction) sheets are used to manually record production achievement. The PI

sheet provides a user friendly interface that allows production operators to enter data in a customized manner.

A production batch is created for the process order, which allows quality characteristics (assays) to be recorded in the system. This batch represents the quantity and quality of the crushed coal produced for the time period specified by the process order. The batch characteristics for the stockpile batch are then adjusted based on a weighted average calculation of contributing batches of coal.

PM measurement point is integrated, truck related KPI is stored in the created measurement documents.

Key process flows covered Create a Process Order for Hauling (crushing) Coal Control Recipe Monitor Maintain Production Data Using PI Sheet Process the Entered Production Data

Purpose and Benefits:

Coal Blending (397)

Purpose This scenario represents the process of blending coal. You will take coal from various mines

and different stockpiles and blend quantities together to create a new batch that meets customer specifications. The same process could also be used for blending other types of commodities. A process order is used as the mechanism to perform the blending. The scenario can be also used for raw material and meal preparation for clinker production in building materials industry.

Benefits A PI (Process Instruction) sheet is used to manually record the blending activities. The PI

sheet provides a user friendly interface that allows production operators to enter data in a customized manner. The same data could be updated automatically.

The quality characteristics (assays) of the stockpile are recorded using batch characteristics. For each stockpile that is to be blended the batch characteristics are retrieved and a weighted average calculation used to determine the quality of the resulting batch.

All necessary goods movements are done automatically in the background, including posting goods issue quantities from each source batch, posting a goods receipt quantity for the resulting batch and updating the batch characteristics to reflect the blended quality

Key process flows covered Create a Process Order for Blending Coal Control Recipe Monitor Maintain Production Data Using PI Sheet Process the Entered Production Data

Purpose and Benefits:

Copper Mining (398)

Purpose This scenario covers the mining and processing of copper ore. Two main operational

processes are represented, primary product mining to produce ROM coarse ore for crusher feed and crushing to product fine copper ore for subsequent refining.

It can be also used to describe the process in raw material extraction in building material industries, e.g. in the cement industries where wheel loaders and dumper trucks transport the raw materials to the crushing installations, where the rock is broken down to roughly the size.

Benefits PI sheet provides a user friendly interface that allows production operators to enter data in a

customized manner. The same data could be updated automatically. A production batch is created for the process order, which allows quality characteristics

(assays) to be recorded in the system. This batch represents the quantity and quality of the crushed copper ore for the time period specified by the process order. The batch characteristics for the stockpile batch are used to calculate the value of the stockpile based on copper content .

PM measurement point is integrated, truck related KPI is stored in the created measurement documents.

Key process flows covered Create a Process Order for Mining (Crushing) Copper Ore Control Recipe Monitor Maintain Production Data Using PI Sheet Process the Entered Production Data

Purpose and Benefits:

Copper Concentrate & Cathode Production (399)

Purpose

This scenario represents the production of copper concentrate and copper cathodes.

It is based on crushed copper fine ore, which transports to concentrator and smelting plants. The ore is then ground and processed into various grades of concentrate. In this scenario high grade concentrate is produced.

Benefits Once the copper concentrate is produced, samples are taken for quality analysis. The results

of the analysis are updated against the production batch. The concentrate could be sold or processed further through smelting and refining to

manufacture copper cathodes. This scenario contains a second production process to produce copper cathodes.

All Each copper cathode is assigned a unique number (handling unit) that enables tracking of the individual units along the Supply Chain. The cathodes are then packed and are ready for sale.

Key process flows covered Create a Process Order for Concentrate (Cathodes) Production Create a Process Order Confirmation Change Batch Display Packing Instruction Create Handling Units Goods Receipt for Handling Units Goods Issue for Order

Purpose and Benefits:

Operational Maintenance (929)

Purpose

Maintenance processing comprises several levels, which do not necessarily all have to be implemented in full.

It is therefore possible to process a repair using many planning stages, such as preliminary costing, work scheduling, material provision, resource planning and permits. However, it is also possible to react immediately to damage events causing production shutdown, and to produce the required orders and shop papers with the minimum of entries in the shortest possible time.

Purpose and Benefits:

Preventive Maintenance (930)

Purpose

Ensuring a high availability of objects in the long term is an important part of Plant Maintenance. Planned maintenance is used to avoid system breakdowns or the breakdown of other objects, which - in addition to the repair costs - often result in much higher costs subsequently owing to production breakdown.

There are many benefits in using planned maintenance within your company. It is the generic term for inspections, preventive maintenance and planned repairs, for which the time and scope of the work can be planned in advance.

In addition to internal company aspects for planned maintenance, external factors should also be considered. An increasing number of conditions set by legislative bodies demand more stringent requirements on planned monitoring and maintenance of objects. External requirements can be:

Manufacturer recommendations The manufacturer of your technical objects may recommend certain procedures to ensure that the objects always

function optimally.

Legal requirements There may be labor protection laws or laws concerning the safety of objects which require you to maintain your

technical system on a regular basis.

Environmental requirements Effective planned maintenance can also help to prevent breakdowns which could lead to environmental hazards.

Another reason for planned maintenance is the need for quality assurance, since, for example, the quality of products manufactured at a technical system is substantially affected by the operating condition of the production plant.

It is also often more cost-effective to maintain objects regularly, and therefore prevent a much more expensive breakdown. You can determine the data required for this using past data supplied by the system.

Purpose and Benefits:

EH&S Industrial Hygiene and Safety (937)

Purpose The purpose of to describe business processes related to Industrial Hygiene &

Safety.

Purpose and Benefits:

EH&S: Waste Management (938)

Purpose The purpose of to describe business processes related to Waste Management.

Purpose and Benefits:

Investment Management in PM (932)

Purpose The purpose of to describe business processes related to Investment

Management within Plant Maintenance.

Purpose and Benefits:

Overhaul Management (886)

Purpose Overhaul maintenance is a large scale maintenance project involving allocation

of budget to different project tasks, identifying resource requirements and monitoring of the project activities during the specified period.

Benefits The Budget planner can plan and distribute budget data to the overhaul

maintenance project network/activities The maintenance planner will create a network activity or maintenance order

according to the maintenance requirements and assign it to the corresponding network/activities.

Dates for the WBS Elements, Network activities or maintenance orders can be planned, scheduled and monitor.

Key process flows covered Created a project Edit WBS Cost Planning and distribute WBS budget Network Scheduling Creating a Maintenance Order and Assign to WBS/Network

Purpose and Benefits:

Refurbishment Management (887)

Purpose Faulty repairable spares is maintained to re-use in company, the spare part will have different

valuation type to represent different values

Benefits A high value spare part or critical part, will be managed with serial number. It

will help to manage each piece of this spare part Refurbishment process will help to reduce the spare parts inventory cost.

Key process flows covered Creation of Maintenance Order Removing Defective Equipment Returning Defective material to warehouse Goods Issue for Maintenance Order Activate Equipment Creating the Refurbishment Order for the Defective material Goods Issue for Refurbishment Order Order Confirmation Goods Received for Refurbishment Order Settling the Refurbishment Order

Purpose and Benefits:

Work Clearence Management (888)

Purpose This process creates a safe environment for the maintenance staff to perform maintenace

work. In addition, applicable environmental safeguards can be adhered to and the reliability of the assets is guaranteed

Benefits A component with which the safety measures during maintenance work at technical objects

can be controlled and monitored The WCM process is fully integrated with the work order process All permit in WCM objects must be issued before execution of actual maintenance A protection that ensures that a technical object that is managed as an item in an Operational

WCD can only be orderly tagged or untagged from certain Operational WCDs

Key process flows covered Display and assign purchase requisitions Creating Maintenance Order with WCM Requirement Creating Work Approval (WAP) Creating Work Clearance Application (WCA) Creating additional application Hot Work Creating Operational Work Clearance Document (WCD) Performing Permit Approval process Performing operational cycle of Lockout / Tagout WCM objects for a planned maintenance order are generated from a maintenance plan by

program RIWCO016