Download - Cement Industry
Enabling the Cement Industrythrough SAP Solutions
Nikhil Chaturvedi, IBU-Mill Products & MiningDate: 6th June 2008
1. SAP: Profile & Credentials
2. Cement Industry: Trends and Challenges
3. SAP: Solutions for the Cement Industry
4. Cement Industry: Case Studies
Agenda
SAP: Profile & Credentials
SAP in the Cement & Building Materials Industries
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Western Europe Asia
North Americ
a
South America
Middle East
Eastern Europe
Australia
Africa
More than 700 SAP customers inbuilding materials (May 2007)
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LafargeHolcim
Cemex
HeidelbergCement
Italcementi
4 out of top 5 cementproducers rely on SAP
Building materials customers in 70 countries
SAP Customers in Cement / Concrete Industry
Over 195 CustomersHolcim (70 + Countries)Heidelberg CementItalcementiLoma Negra C.I.A.S.A.Lafarge Perlmooser AGHansonSaint LawrenceTitan Cement Company S.A.ESSROC Incorporated (Italcementi)Beton Son B.V.Mahaphant Fibre CementSiam Cement, Siam City Cement
IndiaAssociated Cement Company (ACC), Ambuja CementGrasim Cement, L&T Cement (Ultra Tech Cement)Calcom CementPrism CementSanghi CementRajshree CementMalabar CementBinani CementJayPee CementDeepak CementDalmia CementJK Cement
Executive Advisory Council Building Materials
The Executive Advisory Council for theBuilding Materials Industry is a forum forstrategic debate of key industry issues atexecutive level.The objective of this forum is to
Align SAP and industry vision of where thebuilding materials industry is heading.
Identify focus areas for SAP to support thevision and trends.
Establish a discussion and influencechannel for the industry.
Objective
Executive Advisory Council Building Materials
Chairmanship
ChairmanDr. Georg SchulzHolcim, Head of Department
Co-ChairmanJose Antonio MolaresCemex, Director
SAP ResponsibleDr. Udo WernerIndustry Principal Building Materials
WorkgroupsReady-Mix RequirementsCRM and Object ManagementNext Council Meeting:
2008 EAC for Cement & BuildingMaterials CustomersJuly 8-9, Heidelberg, Germany
Cement Industry: Trends & Challenges
Cement & RMC Industry: Trends & Challenges
Asset portfolioProduct & Service PortfolioBusiness Partner Portfolio
Plant EfficiencyManaging the Triple Bottom LineAttract InvestorsEnsure Compliance & Process
Integrity
Optimize Margins and Profitability
Retain Knowledge of Aging WorkforceAttract & Develop New TalentsSpeed-up Learning Curve
Global Growth
Productivity and EfficiencyDifferentiation and Innovation
IT is the Enabler to Meet Tomorrows Business Challenges
Standardization & Harmonization
Reduce Cost & Increase EfficiencyEnsure Governance & Compliance
Superior Customer Service
Cross-Industry Value NetworksJoint Research CooperationNew Business Models
Innovative Supply Chain Processes
Increasing Competition fromEmerging Markets
High Transportation CostResource Replacement & Substitution
Process EfficiencyCompetitive PricesEnhanced AnalyticsReduce Material Costs
Communication StandardsGlobal Rollout of ‘Best Practice’
SolutionFlexible deployment
Asset Utilization TransparencyAsset Planning & MaintenanceInvestment PlanningUse of Alternative FuelsEfficient Energy Management
Grow into Emerging MarketsFast Digestion of Mergers &
AcquisitionsIT that adapts to local conditions
Transportation Tracking & Tracing,GPS
Flexible Freight TenderingSelf-Service Delivery
Innovative ProcessesCustomer Self ServicesSuperior FlexibilityMaximum Reliability
Capital Intensive ManufacturingCapital extensive business requires high utilization of production facilitiesPlanning and optimization of downtimes and maintenance activities
Cost Control is a MustHigh Distribution costsFast rising energy prices while product prices have to stay competitive...... Resulting in declining profit marginsCost effectiveness on all levels sought
Flexible Planning and ProductionProduction optimization … on short term noticePlanning maintenance activities
Customer ServiceCustomers in remote locationsCentralization to become more effectiveSelf service loading and electronic invoicingHigh change rate of orders due to uncertainties on construction sites
SCM and TransportationMultiple Plants, Storage locations and customer locationsSignificant transportation cost in comparison to product valueLocal market, limited by transport cost ratio (cement: app. 100 km around a plant)
Cement & RMC Industry: Trends & Challenges
Business Challenges faced by the Indian CementIndustry
Cement prices in India are market driven and volatile. Retrospective changes areroutine
Prices vary from district to district and customers are invoiced at the specifiedrate for consignee's location
Even though, Cement companies try to create Product differentiation, marketshare is highly dependent upon Price and hence, “Cost control” in Production aswell as Logistics is very important
Prices include taxes & freight hence realization calculation is complex
Most payments are on-account type and not linked to invoices
Complex system of discounts and incentives
Consignments of both road and rail sometimes needed to be reallocated / rerouted
Incentives and associated credit/debit generation
Delivery tracking
Accounting for damaged cement (bags)
Transporter Billing on retrospective basis
SAP: Solutions for the Cement Industry
Optimized Organization and Process Landscape
Central control.•Strategy•Vision•Governance, risk,compliance
Shared service:Products andtechnology
Shared service:Benchmarking
Shared Service:Processes
Shared Service:Planning
Localized services•Procurement•Sales•Customer relations•Supply chain planning•Accounting
RegionRegion
Best-run plants•Production•Maintenance•Quality•Sustainability
Plant
PlantPlant
Plant
SAP Solutions for Cement Companies
Central processesStrategy managementAnalyticsCompliance solutionsBusiness processmodelingMulti-languagecapabilitiesSolution manager
Localized servicesCustomer relationshipmanagementTransportation planningPrice and marginmanagementSupply chain planning
Plant operationsProduction executionShop floor visibilityQuality managementInventory managementMaintenance planning
Suppliers &Partners
Customers &Channels
Product Design Marketing & Sales Planning Procurement Order Management Manufacturing Distribution
Enterprise Management & Support
Time to MarketNew Product Development &
IntroductionLife-cycle Data Management
Supply Chain PlanningDemand & Supply PlanningTransportation Management
ProcurementStrategic / Global SourcingOperational Procurement
Order Management & ExecutionEnterprise Asset Management
Warehouse ManagementSales Order Management
Manufacturing Scheduling and ExecutionDrop Shipment
Customer ServiceCustomer Interaction
Complaint / Claim Management
Quality Management & ComplianceQuality Management
Compliance Management
SAP Solution Map: Cement & Building Materials
SAP is focusing on building materials hot topicswith specific solution offerings based on SAP ERP
SAP SCM
SAP PLM
SAPSRM
SAPCRM
SAP NetWeaver
SAPERP
EnterpriseAssetMgmt.
Cost &QuoteMgmt.
SharedServiceCenter
ChannelSalesMgmt.
ShopFloor
Integration
ServiceMgmt.
FinancialSupplyChainMgmt
StrategicSourcing
LogisticsExecution
SelfServices
Environ-mental
Health &Safety
Compliance
DeliveryVisibility &Tracking
Transpor-tationMgmt.
Analytics
Objectives& Policies
Typical Application Solution Architecture
DemandPlanning
Capacity &SupplyPlanning
DistributionPlanning
ProcurementPlanning
ProductionPlanning
Inventory Planning
Selling DeliveryDistribution. Production.OrderFulfillment
Strategic
Tactical
TransactionalFinancial & Management Accounting, MRO Procurement, HR..
StrategicPlanning
Supply ChainPlanningERP / MES / SCM / mix
ERP
Scheduling WarehousingProductionExecution
Sequencing MESMultiple Systems
Prod.Execution
PCS DCS SCADA DASProcess/PlantControl
Control & ProcessData AcquisitionMultiple Systems
Assuring high customer service levels is critical for Building Materials companies toimprove customer retention and loyalty. Sales can easily, quickly and accurately, determinepricing and costing, check production resources, as well as track and manage quotations,contracts, deliveries & invoices – reducing sales cycle time & ultimately increasing revenue.SAP provides a comprehensive sales order management solution to efficiently processquotations and sales orders.
Customer Service: Sales Order Management
Industry ChallengesLow sales efficiency with order fulfillment errors generatedby a lack of insight into purchasing, production andinventory information.
Long sales order lead times and slow response times tocustomer queries on order status due to manual processesand siloed info.
Low customer & product profitability due to lack of availableinformation, analysis & decision-making support tools.
Business Benefits with SAPImproved customer service thanks to comprehensivecapabilities that enable sales to deliver accurate productspecification and usage, price, quantity and deliveryinformation to customers.
Reduced order processing costs through streamlined,automated processes.
Increased customer profitability with comprehensive salesquotation and order analysis.
SAP Solution
Sales and Distribution(cont.)Sales and Distribution
Sales from Stock
Quotation & OrderProcessing Make-to-Order
Batch Handling
Credit Management
Foreign Trade ExportProcessing (Intrastat,Extrastat, Customsdocuments)
Third-party drop shipment
Sales of Bought-In Item
Free of Charge Delivery
Prospect CustomersSales Order Processing
Debit Memo Processing
Customer DownPayment
Delivery, Picking,Billing, Payment, PrintDocuments
Cross Company SalesOrder Processing
Reporting (OpenOrders, ExpiringQuotations, etc.)
Business challenge for concrete companiesInefficient sales order processingSales order processing done at each concrete plantLack of standardized sales order processingNo optimization of production and transport across plants
SolutionCentralized order entry at call centerIncoming orders automatically distributed to plantsAutomatic credit managementChecks available production capacity of plantsChecks availability of transport vehicles
Business benefitsLess personnel requiredCan operate 24 hours per day, if necessaryImproved accuracy of order informationReduced transport cost
PlantScheduling
CentralizedSales OrderProcessing
TransportScheduling
Reporting
Solution Map
ERPERP
SAP Sales Order Entry via a Call Center
CRMCRM
SCMSCM
Consolidated, sychronized supply and demand planning helps Building Materialsmanufacturers enable and improve forecasting in a commoditized product portfolio, aswell as supply chain visibility and efficiency. SAP Business All-in-One provides aflexible, powerful solution for integrated annual operating, sales & operations, as wellas materials requirements planning.
Annual Planning /Forecast
Annual operatingplanning (AOP)
Sales quantityforecasting
Monthly Sales PlanQuantity by Customer/Product
Transfer to sales &operations planning(SOP)
Profitability reporting
Anonymous Forecast
Supply Chain Planning: Demand & Supply Planning
Logistics Planning
Planning/forecastingof future demand
Aggregated productionplanning includingcapacity check
Long Term Planningof materialrequirements, basedon production plan
Transfer to detailedMRP and ProductionPlanning / Scheduling
Plan work Centercapacities
Industry ChallengesInaccurate forecasting due to an unstructured planningprocess with distributed data across sales and business units.
Inefficient portfolio management through poor visibility intoglobal demand and supply status.
Lost sales and high inventory levels through siloed sales,production and inventory planning processes.
Business Benefits with SAPImproved customer service levels through accurate,consolidated sales and revenue plans, and better supplychain visibility to enable improved customer responsivenessand order fulfillment.
Optimized portfolio management with better insight intoproduct and customer profitability, as well as the demand andsupply situation.
Better supply chain efficiency with asset optimization andreduced inventories through synchronized sales & revenueplanning with production planning.
SAP Solution
Functions of Demand Planning
Structure Demand Information by freely definable characteristicsCustomer, Product, Sales Office, Region, Location, ...
Display Demand Information by freely definable Key figures:Last years Sales, Committed Contract Volume, Marketers Forecast,Customer Forecast, ...
Different options for Data SourcesDirect manual input by user, Entry via Internet (customers), Upload from datawarehouse, Calculated data (i.e. multiply row last years sales by 5 %)
Aggregation and Disaggregation of Demand Data
Different Views on the same data based on user role
Flexible time buckets to enable strategic and tactical planning
Statistical Forecasting methods (i.e. seasonal trend models)
Alert and Macro Functions
Flexible Reporting Options
Demand Planning
Planner’s KnowledgeTask-specific planning tools
Flexible viewsGraphicsPromotional planningLife cycle managementAccuracy reporting
Statistical MethodsMulti-model approach
Average modelsExponential smoothingCausal factorsTrend dampeningModel combinationPick best
Demand Planning Data Mart
Anticipation ofFuture Demand Collaborative
forecasts
Order & shipmentactuals & historyCostPOS dataNielsen / IRI data...
Information
Solution Overview
SNP generates network of production orders and stock transfer orders
Demand plan
Distributioncenters
Productionplants
60% 40% 30% 70%
SNP Optimization
Forecastssales ordersForecasts
sales orders
SourcingProduct mixProduction &
procurement planInventory strategies
SourcingProduct mixProduction &
procurement planInventory strategies
APO
Liste
Flexible Constraint DefinitionCapacitiesMaterial availabilityMarket constraintsCosts of opportunity
Optimization
Supply chain modelSupply chain model
Cost minimization - Profit maximization
Optimization Profile
Production capacity
Transportation capacity
Selection of mostsuitable productionplant
Optimization ofproduction costs,transportation costs,and storage costs
Mixed integer linearprogramming /metaheuristics
Feasible plans
Safety stock
Determineswhich constraints
are considered
Handling capacity
Storage capacity
Shipping & Transportation ManagementDelivery Processing
Picking
Packing
Goods Issue
Printing & Communication
Planning / Monitoring / Analysis
Batch Management
Serial Number Management
Work Load Estimation
Transportation Planning
Truck Load Definition
Monitoring Transportation
Transportation Billing / Payment
Yard Management
External Contracts
Freight Costing
Break Weight Calculations
Route Schedules
Pick Sort Pack Load Print Ship
Capabilities of SAP Transportation Planning &Execution
FinancialsIntegration
TransportationChargeManagement
TransportationDispatching&Execution
FreightManagement
•Customer Contract•Shipment Request•Freight Request•Shipment
• (Quotation)
•Manual Dispatching•Planning / Optimization•Routing•Scheduling•Carrier Selection•Shipment Order•Freight Order•Tendering•Continuous Move•Compartment Planning•Freight Space Booking•Execution•Replanning
Transportation ChargeCalculation•Costing & Rating
Engine•Customer Freight
Agreement•Carrier Freight
Agreement
Customer Freight Billing•Billing Preparation
Supplier FreightInvoicing•Settlement Preparation
Billing / Invoicing•Customer Billing (SD)•Freight Auditing &Self-Billing (MM)
Financial Accounting•Account Determination•Installments•Accruals
Controlling•Profitability analysis•Profit sharing
Visibility
Analytics (Business Intelligence) Exchange Infrastructure
SAP TM SAP ERP
SAP Event Management
Netweaver and SCM Basis
Global Availability Check
Checking Product Availability at time of Sales OrderCreations
Simulating Global Supply Chain based on projectedinventories in the future
Consider product substitution based on predefinedrules
Consider substitution of supplying location basedon predefined rules
Re-simulate Product Availability Check at any criticalpoint in time
Re-consider priorities based on predefined rules
Enable Sales Managers to immediately check onDelivery Capabilities
SAP NETWEAVER
Manufacturing Visibility
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Manuf. Intelligence Dashboards
Manufacturing: Seamless Integration
Manufacturing PlanningForecasting/Collaborative ForecastingMake-to-Stock / Make-to-OrderFinite Capacity SchedulingMaterial Requirements PlanningRecipe Management
1
Manufacturing ExecutionProduction Process ManagementBatch ManagementLabor & Resource ManagementOutbound ProcessingProduction Dispatch
2
Quality ManagementLIMS integrationQuality EngineeringQuality / Tracking ControlQuality ImprovementAudit Management
3EH&S Compliance
Product Safety ManagementHazardous Substance & DangerousGoodsEmissions & Waste ManagementIndustrial Hygiene and SafetyOccupational Health
4
Plant MaintenanceTechnical Asset MgmtPredictive & PreventiveMaintenanceMaintenance ExecutionIntegration to purchasing
5
VisibilityATP/CTPSafety / Target StockManufacturing Costing &Performance Mgmt.Tracking & GenealogySubcontracting and CollaborationManufacturing Event Management
6All Six Key Capabilities are Integrated and Seamless
Production PlanningCapacity Planning
Demand Management
MRP
Routing
Production Resource Tool
Work Center Management
Master Production Scheduling
Production Order Management
Project Production
Sales Operation Planning
Make To Order
Planning Strategies
Costing
Alerts
Portals
Backflushing
Reporting
Confirmations
MRP ControllerLine Manager Plant Manager
Efficient quality management helps Building Materials companies better manage andassure product quality, monitor & improve quality standards, as well as documentquality compliance for subsequent audits. The SAP solution delivers a robust qualitymanagement solution to support high quality sourcing and improved vendormanagement.
Operational Compliance: Quality Management
Industry ChallengesQuality issues cause lower quality end products lowering operatingmargins and customer satisfaction.
Poor tracking of supplier material quality results in high cost returnto vendor processing and delayed time-to-customer.
Complex tracking of materials and quality documentation forregulatory compliance.
Business Benefits with SAPIncreased customer satisfaction through efficient quality managementprocesses to assure high product quality.
Improved supplier selection and management with vendor evaluationprocess.
Lower operating costs and increased product profitability support byquality inspection and monitoring throughout the product life cycle toreduce product errors.
Easier regulatory compliance with quality documentation andauditability of information & actions across the supply chain.
SAP Solution
Quality Management
Inspection lot generation /inspection defects recording
Usage decision processing
Quality notification
Stock procurement with QM
Goods return to vendor
Vendor evaluation
Batch management (with batchtraceability)
Batch recall
Batch analysis
Maximize the return on relationships through all suppliers within the supply chain –from strategic sourcing to operational procurement. SAP enables Building MaterialsCompanies in reducing procurement cost & time of inventory replenishment. SAPdelivers a complete, integrated solution for the entire procurement cycle.
Sourcing & Procurement –Strategic & Operational Procurement
Industry ChallengesPoor vendor selection results in long lead times, over-pricedmaterials, and low material quality triggering high cost returns.
Inefficient, manual and paper-based procurement processes.
Business Benefits with SAPOptimized vendor selection with vendor evaluation – vendorpricing, service, lead-time & performancecomparison/evaluation to better negotiate contract terms,reduce material costs, lead times and returns.
Reduced operational costs with automated procurement tasksin administration, production and transportation includingpurchase requisition creation, invoice verification, paymentprocessing etc.
Comprehensive visibility into the supply chain throughintegrated processes for better inventory turnover, cycletimes, and lower receiving and material storage costs.
SAP Solution
Materials Management(Continued)
Materials Management
Purchase PriceNegotiations withVendors
Request forquotation
Procurementcontracts
Purchase requisition& order processing
Internalprocurement
Subcontracting
Stock Transfers
Procurement &Consumption ofConsigned Inventory
Goods receipt (withbatch number creation& quality inspection)
Return to vendor
Invoice & paymentprocessing
Building Materials companies need comprehensive, accurate enterprise visibility andstrong financial management support to (1) fulfill financial requirements, (2) enableprofitable growth and (3) operational efficiency. SAP provides the market-leadingsolution for accounting, financial reporting, and performance management – integratingfinancial management with business processes.
Financials
Industry ChallengesInefficient accounting and controlling processes with informationlocated across transaction and financial systems.
Inaccurate, incomplete cost and revenue data for portfolio, assetand operations management.
Different, country-specific financial accounting processes,principles and regulations.
Business Benefits with SAPEfficient, automated accounting and controlling processes.
Complete and accurate data through seamless processintegration across operational areas of the company.
Enhanced company profitability analysis by market segment(products, customer, orders, business units).
Automated calculation & comprehensive visibility & analysis ofproject, asset and product costs throughout the life-cycle.
Easier multi-country financial reporting with, multi-currency andasset & inventory valuation capabilities.
SAP Solution
Accounting
General ledger
Accounts payable /receivable
Cash management
Cost of salesaccounting
Asset management
Segment reporting
Period end closing
Revenue planning
Accounting(continued)
Sales and operationsplanning
Purchased materialprice planning
Cost center planning
Internal orderaccounting
Product costing
Period end closingincl. inventoryvaluation
General Ledger
Legal Consolidation
Accounts Receivables
Accounts Payable
Asset Accounting
Budgeting
Overhead Cost Controlling
Activity Based Costing
Cash Management
Treasury
Funds Management
Payroll
Check Printing
Parallel Accounting
Analytics
Expense Management
Billing
Financial Management
Profitability Analysis
Streamlines informationcontrol, analysis, anddelivery
Enables performanceplanning, measurement, andmanagement
Optimizes the financialsupply chain
Most comprehensive,functionally-rich solution onthe market
Market-leading solutions andcustomers in all industries
Reliable, proven businesspartner with solution andindustry expertise
All SAP applications are completely integrated intoAccounting
Example: Actual Costing of aproduct based on actualproduction, purchasing of rawmaterials and asset utilization:For live demo: show Ides Scenario Cement Costingand Actual Costing
1. Process Order
2. Collected Costs
3. Settlement to G/L4. Monthly Analysis
Cost Accounting
Cost Accounting – Cost centers
MaterialManagement
FinanceControlling
4 AP
20 Revenue
Integrated process flow for a cement plant
Raw MaterialExtraction
Raw MaterialPreparation
Raw MealPreparation
ClinkerProduction
CementGrinding Distribution
SAP Business Information Warehouse
3 Material/Cost booking
5 Invoice
6 Cash
1 Purchase OrderSupplier
MaterialStock
2 Delivery
7 Consumption
Local Plant Technical Information Systems
8 Consumptionper time period
ProductionPlanning
Prod. Order
Cost Collec.
9 Cost booking
HumanResources
10 Labor costs
12Productionamountper time period
11 CostAllocation
Cost size13 Cost equivalent
17 DeliveryNote
Customer
14 Order
Sales &Distribution15 Stock reduction
18 Invoice
19 AR
Profit /Loss
COGS
16 Costs
Cost Center Cost Center Cost Center Cost Center Cost Center Cost Center
Delivery21
Supply chain managementStrategic & tactical planning functionalitiesLink to executionWarehouse operationsTransport management system
All levels of SC planning are covered bySAP SCM (APO)Online integration to ERP 6.0 ensurescapability for simultaneous planning andavailability checkTransportation and warehousemanagement integrated as part of theoverall solution
Ease of Further Evolution
Business evolution requirements SAP coverage
Customer relationship managementMarket intelligence systemsManagement tools for marketingoperationsSales force automation
CRM fully integrated to supply chainexecution and finance backboneCovering engagement, transaction andfulfillment process
Back officeFixed asset control systemMaintenance systemsCoprorate Stragtegy Management
Maintenance module integrated withFinance/Controlling, HR and materialsmanagement module covering alsomaintenance of mobile assetsSAP Strategy management (byBusinessObjects)
Cement companies need a complete, integrated view on financial and operationaltargets and figures to (1) develop realistic business plans as well as (2) monitor andsupport operational decision making. SAP provides tools to generate a completepicture of Cement companies to control growth and operational excellence.
Analytics & Operations Support
Industry ChallengesLack of visibility into financial and logistic key figuresthroughout all company departments.
Inaccurate and incomplete statistical data base to link strategicplans to operational performance.
Lack of analytic support to understand the profit drivers ofMaterials business.
Business Benefits with SAPSingle analytical platform for the whole enterprise in a cross-functional and collaborative environment.
Support of integrated and realistic business planning andmonitoring of costs and revenue during execution.
Actual detailed operations reporting and support of operationaldecision making in sales, production and procurement.
Integrated operational support of cross functions like qualitymanagement, procurement and project management.
SAP Solution
Analytics for ERP(continued) &
Operations Support
Cross-functionalAnalytics for ERP
Analytics for
MRP, Purchaserequisition, stocks
Quotations, SalesOrders, Line items,Deliveries, Billing
Credit Overview &Memos, Customers
Backorders, SalesSupport, Returns
Purchase Orders,Contracts, SchedulingAgreements
Analytics for
Vendor, Warehousestocks
Batch analysis,Availability overview
Plant & Material Analysis
Operations Support for
Quality Management
Global Trade Services
Project / PortfolioManagement
Indirect Procurement
Clinker FactorOverall Equipment EfficiencyMean Time Between FailuresCoefficient of Variation of Cement Mortar StrengthThermal Substitution Rate
Performance Management – Sample Indicators
Specific Cost of Electric Energy
Specific Cost of Traditional Thermal Energy
Specific Cost of Alternative Thermal Energy
Specific Actual Cost of Cement
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Specific Raw Material Cost of Ready-Mix Concrete ProducedAverage Selling Price of Ready-Mix Concrete
Cement
Ready-Mix
Average Volume Produced per PlantVolume Delivered per Truck
GeneralM
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Own Personnel ProductionSubcontracted Personnel performanceAccidents with Time LostOvertimeOutstanding WorkPe
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Perf
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Specific Maintenance CostsInvestment to Maintain Productive Capacity and CompetitivenessSpecific Replacement InvestmentsMean Time between RepairPreventive Maintenance Routines
Production Supervisor UI
SAP Quality Management - Quality Control
Quality Control enables recording, trackingand analysis of product and processcharacteristics to ensure qualitycompliance.
Key Benefits:Supports automatic or manual triggeredinspection lotsIntegrated tightly with the complete supplychain (e.g. inventory, batch, purchasing)Enables statistical process control (SPC) tomonitor critical product and processcharacteristics in the manufacturingprocess and allows instantaneousinterventionDocuments product quality to achieveregulatory complianceIncludes integrated problem management
Key Functionalities• Quality Inspections
• Laboratory Integration
• Test equipment Interfacing
• Usage Decision / Release
• Certificate of Analysis
• Statistical Process Control
• Problem Management
• Test Equipment Calibration
• Quality Information System
Quality Inspections
Comprehensive inspection processingGoods receipt inspectionIn-process controlPost-process controlInspections at goods issueRecurring inspections
Test equipment interfacing
Statistical process control (SPC)with integrated problem management
Use as Enterprise LIMS
Results recording - mobile or Web-based
Functions integrated in logistics (e.g. inventorymanagement)
A Snapshot of the Quality Inspector’s Dashboard
Work list with multiple views that containinspection lot related tasks.
Direct access toresults/defects
recording application
High frequency tasks canbe saved as favorites
and launched on demand
Direct access to theconfirmationapplication
Enterprise Asset Management – An Evolution
Inspection and CalibrationRFID and Mobile DevicesProject ManagementMRP & Spare PartsManagement
Full Enterprise Asset ManagementCore FinancialsFinancial OptimizationReliability Reporting
Human ResourcesTime and PayrollSkills Management
Maintenance Management Systems
Asset MaintenanceMRO Procurement and Inventory
Design & SpecifyBusiness planningInvestment managementCollaborative specificationand designMaintenance engineeringInterfacing CAD systemsProject managementMaintenance costplanning
Procure & BuildSupplier qualification and candidateselec.Bidding and contract managementProcurement processDocument managementProject managementCollaborative constructionProject and investment controlling
Decommission & DisposeAsset transfer anddisposalCollaborative disposalmgmt.Document managementProject managementWaste managementAsset complianceAsset re-marketing
Operate & MaintainTechnical asset managementPreventive and predictive maintenanceMaintenance planning and schedulingWork order managementMobile asset management and RFIDContractor managementMRO and services procurementWork clearance managementShutdown planningInterfacing GIS and SCADA
EAM: Functional Scope
Facility & Asset Management
Work Force Management
Location & Asset Mapping
Maintenance Planning & Scheduling
Budgeting & Sanctions
Tools & Documents
Complaint Management
Warranty & AMC
Contracts & Subcontracting
Spares ManagementWork Clearance
Preventive / Predictive / Breakdown /Shutdown Maintenance
Valuation & Status Management
Mobile Device
GPS Interface
Equipment History
Meter Reading & Counter Based
Early Warning System
ObjectsOrders /NotificationsCostsDowntimes
Hist
ory
Time- /MaterialconfirmationTechnicalcompletionOrdersettlement
Com
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Internal /Externalresource-planningRelease /PrintControl /Execution
PM O
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Techn. ObjectConditiondescriptionItem dataActivities /TasksPriorities
Notifi
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Mobile Solution
Portals
BI-
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NetWeaver
Plant Maintenance (PM) in SAP ERP basis ofEAM
COMM PS
Material masterInventory mgmt.
PurchasingContractor
Cost centercontrolling
Ordercontrolling
Project structureand controlling
Budgets
AMAsset masterDepreciationCapitalization
QMTest equipment
Calibration tasksCalibration
results
PP
DMS
Integration withproduction
ManagedocumentationHR
QualificationsManpowerplanning
Time trackingPayroll mgmt. Value of
integration
PM-Technical Asset
Management- Preventive and Predictive
Maintenance- Breakdown Maintenance
- Refurbishment
Maintenance Cost Budgeting
History Based Budgeting
Ad hoc Budgeting
Simulation
Location Based
Equipment Based
Tasks Based
Mobile Asset Management - FunctionalOverview
Technical ObjectManagement
SAP Backend Data updatein backend
Measurement &Counter Readings
InventoryManagement
NotificationManagement
Business PartnerManagement
ContractManagement
OrderManagement
Data creation andassignment
High frequency tasksare aggregated in the
services list
Work list of current MaintenanceOrders and Notifications can be
configured as needed
Direct access to the confirmationapplication
Reports can be extracted from SAPBI or any system on the plant floor
Maintenance Inspector’s Dashboard: Sample
Project Systems (PS)Project Initiation
Project Team
Project Estimation & Budgeting
Project Planning & Scheduling
Capacity Management
Project Procurement
Project Production
Project Costing
Project Document Distribution
Project Confirmations
Project Claims
Project Progress Tracking
Multi -Project Management
Project Archiving
Project Reuse
Project Base lining & Simulation
Project Status Management
Project – EH&S
OfflineOnline PROMAN
SAP MII: Manufacturing-to-Business Integration
What’s happening during every shift?Material availability and consumptionCapacity availability and utilizationSchedule changesProduct Genealogy tracking and QM
What’s happening at each line?Cycle Times / Operating EfficienciesMachine Breakdowns / Unplanned DowntimeQuality IndexPredictive Maintenance requirements
How are we hitting our targets?Total Cost of Production and VarianceLabor and Resource ProductivityOrder Fill Rates and Cycle TimesFixed and Variable Asset UtilizationERP
SFAC - Shop Floor Automation and Control SystemsMES – Manufacturing Execution SystemsDCS – Distributed Control Systems
MES
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DISCONNECT
DISCONNECT
SAP MII offers these Core Functions/Services toenable Manufacturing Integration and Intelligence
Web Services• All services exposed asweb services• Includes user-definedcomposite services
Connectors
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Mfg. Intelligence Mfg. Integration
Data Services
MANUFACTURING INTELLIGENCE
• Visualization Services• Charts, grids, tickers, UI controls• Dashboard components
• Analytic Services• SPC/SQC (Six Sigma) analyses• Statistical and other mathematical analyses
ManufacturingIntelligence
MANUFACTURING INTEGRATION• Data Services
• Bi-directional data access• Metadata browsing• XML-based data abstraction• Connectors to external systems
• Business Logic Services• Logic• Integration services• Notification services• Calculation and data transformation• Content creation
ManufacturingIntegration
SAP MII Customers: Mill Products & Mining
Building Materials
Armstrong Holdings, Inc.
Cemex Central, S.A. de C.V.
Certainteed
California Portland Cement Co
Johns Manville
Cosentino S.L.
Jaiprakash Associates Limited
CSR Limited
Furniture
Sauder Woodworking Company
Haworth, Inc.
Fabricated Metal Products
Bekaert N.V.
Charlotte Pipe & Foundry Company
IPSCO, Inc.
Allvac
RTI International Metals Inc.
Rexam Plc
JW Aluminum
Tomago Aluminium Company Ltd
Alcan Inc.
Jindal Stainless Ltd
Grede Foundries Inc
Gerdau Aços Longos S.A.
Showa Denko
Nippon Steel
Metalcraft of Mayville
Electrosteel Castings
Mining and Primary Metals
BHP Billiton Group Operations
Inco Limited
Diavik Diamond Mines
Paranapanema S.A.
Exxaro Resources Limited
Lonmin Plc
Foundation Coal Corporation
Rio Tinto Services Limited
Peabody Energy Corporation
Forest Products & Paper
Buckeye Technologies Inc.
Georgia-Pacific Corporation
Domtar Inc.
Klabin S.A.
Weyerhaeuser Company
UPM-Kymmene Oyj
SAPPI
Bemis Company Inc.
Albany International Corp
Kimberly Clark
Altivity
Textile Production
Balta Industries NV
Milliken
SAP Environmental Compliance (EC)
SAP EMEmissions andComplianceManagement
SAP EMEmissions andComplianceManagement
CfPComplianceforProducts
CfPComplianceforProducts
Industry SpecificCross-Industry
SAP EH&S
Comprehensive and complete business solution for environment, health and safetymanagement
SAP EH&S
Comprehensive and complete business solution for environment, health and safetymanagement
OH
OccupationalHealth
IHSIndustrial Hygiene
and Safety
WM
WasteManagement
Emissions andCompliance
Management
ProductCompliance
HSMHazardousSubstance
Management
PS
ProductSafety
DGDangerous Goods
Management
Health & Safety Services- HSS Product Compliance-CSM
SAP EH&S Solution
Functional overviewProduct Safety *Hazardous Substance Management **Dangerous Goods ManagementIndustrial Hygiene and SafetyWaste ManagementOccupational HealthEH&S Analytics / EH&S Reporting
SAP EH&S offers comprehensive and complete businesssolution for environment, health and safety management!
Substance /Material
Employee Workareas
One solution for all industries* for producers of hazardous substances** for users of hazardous substances
Questionnaire• Questions• Answers
Documents• Type• Size
SAP EH&S Occupational Health - Medical ServiceData
General info• Name of the person• Date• Name of physician• Status• Results• Comment
Diagnosis• Diagnosis-Code (eg. ICD 10)• Date• Comment• Significance
Restrictions• Duration• CommentPrococol result
• Physician• Comment
Examinations• Name, Type• Rating
• Name• Type• Frequency-Type
Medicalservice
Injury/Illness Log• Name of the person• Date• Name of physician• Injury/Illness• Transferral• Comment
Vaccinations• Name, Type• Frequency, next dateCase history
• Name, Type• Date
Medical measures• Name, Type• Date
Consultation• Name, Type• Date
• Name of test• Rating• Measurement value• Interface to medical
devices
Med. Test Results
SAP EM - Capabilities
SAP EM Compliance and Emissions ManagementSAP EM Compliance and Emissions Management
ComplianceManagementComplianceManagement
EmissionsManagementEmissions
ManagementGreenhouse Gas
ManagementGreenhouse Gas
ManagementPermit
ManagementPermit
Management
• Data Monitoring• Task Monitoring• Exception Tracking• Reporting
• Data Monitoring• Task Monitoring• Exception Tracking• Reporting
• GHG-Monitoring• Allowance Mgmt• National AllocationPlan (NAP) Reporting• Inventory• Trading
• GHG-Monitoring• Allowance Mgmt• National AllocationPlan (NAP) Reporting• Inventory• Trading
• Application Support• Change Management• Reporting
• Application Support• Change Management• Reporting
• Emissions Monitoring• Compliance Tracking• Regulatory Reporting
• Emissions Monitoring• Compliance Tracking• Regulatory Reporting
Compliance Emissions
SAP Emissions Management
Reportingand Documentation
ComplianceAnd Management
Modelingand Analysis
IT-StructureOptimal Integration in SAP ERP Modules
Flexible integration in heterogeneousInfrastructures
Web-based, adaptable user interface
Stand-alone solution with new Java-based SAPtechnology SAP NetWeaverTM
Overview of SAP Emissions Management
PerformanceSupport of incident/accident-management
Data source for corporateenvironmental reporting
Support of audit-trails
Interfaces to market places and tradingplatforms, e.g. GHG-trading
Cross FunctionalCross Functional
Definition, allocation and controlof measures and interactiveprocesses
Role-based task and work-flowmanagement
Interaction with internal/externalstructures (e.g., maintenance)
Analysis and presentation ofscenarios and data
Template-based, import-/exportfunctionality
Automated generation anddistribution of data and reports
Structured representation offacilities and processes
Automated estimation ofcomplex emissions data
Definition and application offorecast scenarios
Cement Industry: Case Studies
Ultratech Cement (L&T Cement): SAP ERP
Ultratech Cement is a subsidiary of Grasim Industries,and with Grasim Cement, it is the largest producer ofcement in India and 11th largest in the world.
Ultratech CementCompany
CementProducts/Services
SAP R/3 FI, CO, MM, SD, PPSAP Solutions and Services
INR 3300 Cr.Revenue
Employees
IndiaLocation
Mill productsIndustry
www.ultratechcement.comWeb Site
ObjectivesSimplifying the handling of complex pricing,invoicing and Distribution processesReduced physical delivery time for movingmaterial out of the plantReduced Inventory at warehousesReduced manpower for various processes inStores, Purchase and AccountsBetter decision making at the top managementLevelStreamlining of accounting activitiesStandardization of processes across the country
BenefitsEasier delivery processingOn-line dispatch informationFreight monitoringDelivery trackingEffective transporter billing systemTransporter billing taking shortages / damagesinto accountTracking of every individual delivery up topayment of transporter billEasy tracking of reallocation deliveriesAutomatic price approval mechanismAutomatic generation of alphanumeric code incustomer masterAutomatic generation of credit / debit notes forrate differenceTransparency of information at operational level tosatisfy customer orders
Grasim Cement: mySAP ERP
Grasim Cement is a subsidiary of Grasim Industries, andproduces various grades of Grey and White Cement.
Grasim CementCompany
CementProducts/Services
mySAP ERP 2004: FI, CO, MM, SD, PP,HR, BIW
SAP Solutions and Services
Revenue
Employees
IndiaLocation
Mill productsIndustry
www.grasim.comWeb Site
ObjectivesIntegration of all the depots with the CentralMarketing office to facilitate the online placementof orders and for monitoring the dispatch positionTo be an industry benchmark in truck turnaroundtimeReduction in procurement costEnhancing efficiency in the batch managementthroughout the supply chainFlexibility in report generation and decision-makingImprove the hire-to-retire processes of employeemanagement
BenefitsWith SAP as a tool, a systematic process ofdemand projection and timely communication wasestablished that, in turn, enables the unit tomaintain consistently a high delivery performancein terms of timely supply of the right quality andquantity of Cement at the right placeReduced the internal truck turnaround time from2.25 to 1.38 hrsBetter visibility of suppliers’ quality and costperformanceGreater inventory visibility across “Dumps” andstocking locationsSAP BIW enhanced the reporting and analysiscapabilities across various levels of theorganization
Holcim White LTD: SAP CRM / Mobile Sales
Cementos Bio Bio: SAP Netweaver
KEY CHALLENGES
Integrate new systems and new process while supporting acquiredcompaniesEnhance control over varied and geographically dispersed processesManage documents more effectivelyStreamline information flow and enable collaboration
IMPLEMENTATION HIGHLIGHTS
Deployed portal-based document management systemImplemented comprehensive Web services platformDeployed analytic and reporting capabilities
PROJECT OBJECTIVE
Create a comprehensive Web-services-based infrastructure to enhancecontrol over processes, and to support growth strategies
Based in Santiago, Chile,Cementos Bio Bio producesa wide range of products,from cement to forestproducts and ceramics. Thecompany is using the SAPNetWeaverTM to create acomprehensive Web-services-basedinfrastructure to enhancecontrol over processes, andto support growth strategies.
Cementos Bio Bio: SAP Netweaver
SAP SOLUTION
SAP NetWeaver, including SAP Enterprise Portal with knowledgemanagement capabilities and SAP Web Application Server components
KEY BENEFITS
Better information access for decision makersInfrastructure that can support growth and acquisitionsImproved control over documentsEnhanced collaboration"Beyond any single
capability, SAP Netweavergives Cementos Bio Bio aWeb services platform forconnecting everything."
Jose Villegas,IT Manager,Cementos Bio Bio
SAP DeploymentBusiness Organisation
Company StrategyVertically integrated in aggregates,
concrete and cementGenerate improved returns by
achieving the full synergies ofintegration
Make customer focus an overridingbusiness principle
Be the lowest cost producer in ourcore products
Operate in mature growth marketsEnsure the sharing of best practice
while at the same time maintaining ourdecentralised culture
RMC Group is the world's fourthlargest building materials company,measured by turnover, over £5 billionin 2001.
The company employs over 31,500people at nearly 2,400 locations in 27countries.
RMCs' International Headquarters arelocated in the UK at Thorpe, Surrey.
Lines of BusinessAggregatesinclude sand, gravel and variousgrades of stone and rock. RMCoperates over 400 quarries and sandand gravel deposits.
Cementis a mixture of clay and limestoneburnt in a kiln. The RMC Groupoperates 20 cement plants inAustralia, Croatia, Germany, Latvia,Poland, Great Britain and the USAwith an annual capacity of 20 milliontonnes, making the Group the world’s10th largest producer.
ConcreteRMC manufactures a wide range ofprecast and prestressed concreteproducts in nine countries.
Global Organisation
Country Country Country
UK HQ
4800 users across Europe (growing to5500 in the coming months)
One SAP system per country sharedby each line of business (UK, Fr,Ger/Aus, Den, Sp, Por, Cro, Pol)
Hardware operations outsourced toDebis.
Scope: Finance, Costing, MaterialsManagement, Sales & Distribution,Production Planning and BusinessIntelligence (FI, CO, MM, SD, PP, BI)
Heritage country-based SAP and non-SAP systems migrating to an SAPtemplate with common data standards.Local flexibility for legal reporting andlocal processes.
USA considering adopting the SAPtemplate from the UK (currently 19different legacy systems).
Considering SAP Strategic EnterpriseManagement (SEM) and PlantMaintenance
BenefitsConsolidation of business operations (e.g.
UK down from 25 businesses)Reduction of call dispatch centres (aim for
one per country)Support acquisitions strategy through ease
of integration of new business operations
RMC Group: SAP ERP
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