CISUG (Chemical Industry SAP User Group) Industry Day

May 13, 1:00-5:00pm Hilton Orlando

AGENDA

Time Session

1:00p.m. - 1:45p.m. SAP Chemical Industry Template for Rapid ERP Implementations

1:45p.m. - 2:30p.m. SAP Solution Preassembly – The Fastest Way to Consume IT Innovation

2:30p.m. - 2:45p.m. Break

2:45p.m. - 3:45p.m. Customer Experience - Rapid Deployments in the Chemical Industry

3:45p.m. - 4:15p.m. Rapid Deployments in the Cloud

4:15p.m. - 5:00p.m. The Chemical Industry Goes Cloud - Accelerate Time to Value

5:00p.m. - 6:00p.m. Networking Reception – Hilton Orlando, David’s Club

SAP Chemical Industry Template for Rapid ERP Implementations

Frank Kochendoerfer, SAP IBU Chemicals Hanuma Rupakula, SAP Solution Assembly and Knowledge Packaging

DEFINITION

Available from SAP and qualified partners

SAP Best Practices for Chemicals / EHSM

Preconfigured Industry Templates

SAP ERP

Partner Packaged Services

Implementation Services

+

+

=

EXTENSIVE INDUSTRY EXPERTISE

SAP Best Practices for Chemicals/EHSM

Preconfigured Industry Templates

Industry Analysts

Industry Surveys

Partner Expertise

SAP Industry Expertise

User groups Chemical

clients

SAP BEST PRACTICES FOR CHEMICALS

SAP Best Practices for Chemicals

SAP Best Practices for Chemicals is based on SAP ERP 6.0, Enhancement Package 5

Support of 95 (83 Chemicals, 12 EHSM) industry-specific scenarios

Delivered as technical objects - eCATTs and BC sets

Includes installation tools, such as

Solution Builder

Chart of Accounts conversion tool

Data migration tools and templates

BUSINESS PROCESSES

1.Market-oriented planning Sales planning Capacity planning Planned independent requirements MRP

3. Procurement Procurement of stock

materials Procurement via import Quality certificates check at

goods receipt

4. Manufacturing Continuous production Batch production Batch number assignment Batch determination XML-based PI sheet

6. Financials and Controlling Financial accounting Management accounting Corporate governance Financial analytics

5. Sales and distribution Sales order processing Returns processing Third-party order processing Tank trailer processing Consignment processing Integration of Environment, Health & Safety

2.Product development Recipe management Customer collaboration Quality management Regulatory Compliance

SAP Best Practices for Chemicals supports the Value Chain

FUNCTIONAL AREAS - EXAMPLES

Procurement

RFQ/quotation

Purchase requisitions

Purchase order

Goods receipt (with QM)

Invoice verification

Procurement of stock materials

Procurement of external services

Warehouse Management

Full WM

Production supply areas

Vendor managed inventory (VMI)

Batch Management

Classification

Automatic batch number generation

FEFO batch determination

Batch derivation (from bulk to finished)

Manufacturing Planning

Flexible planning

Planned independent requirements

Supply and demand planning

Capacity planning

MRP run

Manufacturing

Work-in-process (WIP) batch

Process order with Co-product and QM

Continuous production for bulk (rate routing)

Discontinuous production for filling

Process order creation

Process order confirmation

Special batch number assignment

Paperless production (PI sheet)

Internal and external subcontracting

SAP ODA (alerts and events)

Subcontracting (internal and external)

SCENARIO OVERVIEW - EXAMPLES

Stock Handling: Scrap and Blocked Stock (131)

Time Recording (211)

Overhaul Management (886)

Refurbishment Management (887)

Work Clearance Management (888)

Bulk Manufacturing (without PI Sheet) (907)

Bulk Manufacturing (with PI Sheet and SAP ODA

Integration) (908)

Make-to-Stock (Process Industry) with Warehouse

Management (909)

Make to Order (Process Industry) (910)

Multiple Product Campaign Run including MQC (911)

Active Ingredient Processing (912)

Blending (913)

Repackaging (914)

Relabeling (915)

Storage Tank Management (916)

Subcontracting (External) (918)

Operational Maintenance (929)

Preventive Maintenance (930)

Investment Management in Plant Maintenance (932)

Engineering Change Management (934)

Subcontracting (Internal) (973)

Repetitive Manufacturing with QM (992)

Process Order with Co-Product and QM (993)

Work-in-Process (WIP) Batch (996)

Manufacturing

Procurement

Quotation for Procurement (128)

Consumable Purchasing (129)

Procurement without QM (130)

Procurement Contract (133)

Return to Vendor (136)

Procurement and Consumption of Consigned Inventory

(139)

Procurement of Batch-Managed Stock Materials (901)

Procurement of Warehouse-Managed Stock Materials

(902)

Procurement of Pipeline Materials (903)

Procurement of External Services (904)

Quality Management in Procurement (905)

Supply Chain

Lean Warehouse Management (124)

Stock Transfer with Delivery (134)

Stock Transfer without Delivery (135)

Physical Inventory / Inventory Count and Adjustment (137)

SAP ERP Reports for Logistics (222)

Supply and Demand Planning (900)

Tank Trailer Filling (919)

Outbound Logistics (923)

Totes Handling (927)

Vendor Managed Inventory (928)

Product Development

Internal Order R&D Planning (177)

Internal Order R&D - Actual (185) Sustainability

Business Network Transformation

Human Resources

Sales

Supply Chain

Product Development

Finance

Information Technology

Manufacturing

Procurement

RAPID IMPLEMENTATION

* Note: average savings compared to classic ‘from scratch ‘implementations, based on a 2007 survey of SAP partners and customers

Traditional Project Go Live & Support

Final Prep Realization Blueprint Project Prep

Implementation with SAP Best Practices Go Live & Support

Final Prep Realization Gap Analysis Project Prep

Avg. 32% Savings*

30% savings

50% savings

40% savings

20% savings

20% savings

Project timeline

Traditional Project

Implementation with Best Practices

BUILDING BLOCK CONCEPT

Technical Design of SAP Best Practices

1. Identification of processes

2. To run these processes, certain objects are needed

3. These objects are components of building blocks

4. Processes (components) can be grouped into building blocks

5. Building blocks can be grouped into core and industry building blocks

6. A solution is an assembly of building blocks

Processes eCATTs, BC sets, programs, etc.

Components

BC set

Building Blocks (one or more processes)

Scenario BB Core, BP-CH, etc.

Solution

BP-CH

eCATT BC set

Base-line eCATT

Layer Concept

Industry content

Building blocks: encapsulated business processes or functionality

Encapsulated country core layer (can be activated independently) Country localization US CN IN DE KR JP . . . . . .

Partner expertise

Partner added value

Industry-specific

Baseline package

Preconfigured content for integrated scenarios - International core layer

Organizational structure

Financial accounting

Sales and distribution

Cost and profit center accounting

Human resources

Quality management

Production planning and control

Project system

Customer service and plant maintenance

Materials management

Industry-specific

SAP Best Practices for Chemicals

Industry layer

CUSTOMERS - EXAMPLES

DOCUMENTATION

http://help.sap.com/bp-chem

EXTENSIVE DOCUMENTATION

http://chemicalsbestpractices.sap.com

OUTLOOK

What’s coming in Best practices for Baseline V1.607

Controlling

Finance

Sales and Distribution

Materials Management

CO: Information on planned improvement

Master Data Maintenance – Time Dependent cost center Hierarchies

– Visualization of data slices on cost center

– Text maintenance in multiple languages

Cost Center and Project Planning – With this business function, SAP delivers a number of new queries and Web Dynpro application

configurations that you can use to plan costs and activity inputs.

– Directly Integrated in ERP: It offer tight ERP integration reading master data and customizing settings from ERP and writing back to ERP tables

– Data Integration (no replication)

– BW planning engine is used to aggregate and disaggregate data and to support

– Baseline transaction which will be replace with new BW planning are KP06 (cost element planning on cost centers) and KP26 (activity price planning on cost centers). Covers Overall Planning (formerly transaction CJ40) and cost element planning (transaction CJR2, layout 1-701). Activity input planning (transaction CJR2, layout 1-702) and secondary order cost Planning (transaction CJR2, layout 1-704) and Easy Cost Planning

CO: Information on planned improvement

Simplified Reporting

– Real time operational reporting to analyze financial data in SAP ERP. After this business function is implemented, customers can access and analyze their ERP data without a separate Business Warehouse (BW) system

– All new Planning and reporting is based on predefined content bundle delivered

FI: Information on planned improvement

FI-BL, Import and Post Processing of Electronic Bank Statement

– You can automatically import and forward electronic bank statements to the SAP system, and quickly and comprehensively post process bank statement items that have not been posted direct in the system

– FI-BL, Importing and Post processing of the Electronic Bank Statement with new transaction FEB_BSPROC

- New and improved look-and-feel from FEB_BSPROC compared to FEBA_BANK_STATEMENT

- Mass upload of bank statements from more then one source

- After upload bank statements can be dispatched to other systems

- More user friendly and easier tools to do research and add payee notes

Add SEPA functionality to SAP Best Practices – Mandatory starting Feb 2014 for Germany, this mandatory as per regulation for payment procedure

Cash journal – (FBCJ transaction) is easy and handy tool for cash on hand management. Will depend on each country if they

want to have this scenario

SAP Shopfloor Dispatching and Monitoring Tool in SAP ERP – The Shopfloor Dispatcher is a new detailed scheduling tool for the short-term horizon (sub-daily to two

weeks

– Overview of planned manufacturing tasks per work center

– Easy and intuitive assignment of manufacturing tasks to machines via visualization of alternative machines, order and operation dates

– Visualization of production program for individual / all machines

– Monitoring functions such as confirmation progress, status of predecessor tasks, display of important due dates/times, machine breakdowns, overload situations, visualization of high-priority orders, alert monitor

Other topics: – Calculating the Best-Before-Date in Process Order

– Clear Remaining Batch Quantities

– Batch Selection and Follow-Up Actions in the Batch Information Cockpit (BIC)

Remove Configuration BB 223 (Configuration and Setup of Easy DMS) and relevant process steps in 210 from new Baseline

PP: Information on planned improvement

SALES and DISTRIBUTION (SD):

Add freight cost in the step of post goods issue instead of sales order creation/change

Add Advanced Customer Returns to Baseline There is a request to add the DM scenario #250 to the Baseline Master and by any chance replace the standard returns scenario #111

Materials Management (MM): – Raw Material Procurement Cockpit

It supports a simplified procurement process that includes price negotiations and total required quantity distribution across various vendors.

– Sales Third-Party Process with Subcontracting

Third-Party Sales Order process with Subcontracting, with direct shipment from the Subcontractor to the Customer. Current DM Scenario 252 demos similar process

SD & MM: Information on planned improvement

THANK YOU FOR PARTICIPATING

Please remember to complete and return your evaluation form following this session.

For ongoing education on this area of focus, visit ASUG.com

SESSION CODE:

4601