SAP Best Practise

Best Practices for Mill Products and Mining

Making it Easy to Implement ERP

SAP AG

SAP AG 2006, TW 2

Content Overview

What is “SAP Best Practices“

SAP Best Practices for Fabricated Metals

SAP Best Practices for Flat Steel

SAP Best Practices for Mining

SAP AG 2006, TW 3

SAP Best Practices: Reduce Cost, Time and Risk

Time Risk

Pragmaticmethodology

Proven

preconfiguration

Extensive

documentation

SAP Best Practices

Cost

� SAP Best Practices Installation Assistant

� SAP Best Practices Personalization Assistant

� extended Computer Aided Test Tools

(eCATTs)

� Business Configuration Sets (BC sets)

Time/Cost/Risk Saving Tools

•SAP Best Practices are

the sound foundation

for prepacked ready-to-

use business solutions

•SAP Best Practices

cover well-proven

business scenarios

that help to exploit the

potentials of mySAP

ERP

•Flexible building block

technology enables

you to implement and

adapt your solution in a

very flexible way

SAP AG 2006, TW 4

Product Description: What is “SAP Best Practices“

“SAP Best Practices“ is the brand name for preconfigured SAP solutions. An SAP Best Practices package contains:

� A step-by-step implementation procedure

� Documentation:

A. Technical documentation (e.g. how to set up the system) and

B. Business documentation that describe the business content of thepreconfigured solution

� Bundle of preconfiguration settings that speed up the installation process

Three different kinds of SAP Best Practices packages:

� Industry packages are designed to meet industry-specific needs, for example SAP Best Practices for High Tech

� SAP Best Practices Baseline Package: Can be used in all areas where an industry package is not available. It comprises generic busin. scenarios

� SAP Best Practices cross-industry packages provide predefined business scenarios that focus on the areas of CRM, SCM, EP, and BI

SAP AG 2006, TW 5

SAP Best Practices

With SAP Best Practices

Traditional project

Time and effort savings

Working prototype

Get a living and fully documented

prototype within days that you

can rapidly turn into a productive

solution

Demonstration of a solution that is easy to:

� identify with

� implement

� adapt to specific requirements

Enable fast and easy implementa-

tion of mySAP Business Suite

Identification and anticipation of reusable business processes

and project activities

SAP AG 2006, TW 6

Building Block Principle

An SAP Best Practices package is not a monolithic

block but structured in Building Blocks.

Layer 0

Building Blocks

Layer 1

Building Blocks

Layer 1

Scenario-Building Blocks

Building Blocks…

� are the technical methodology for the

SAP Best Practices development and

delivery

� provide SAP Best Practices users with

small, flexible, and transparent pieces

of functionality (Building Blocks), for

example a specific scenario that can be

implemented like an add-on to an

existing solution

� foster inter-operability and reusability

by providing the necessary guidelines

and tools to enable content developers

to create Building Blocks that follow a

common structure

SAP AG 2006, TW 7

Benefits of SAP Best Practices

Save time and moneyand achieve predicted results

Less risksavoid common e-Business beginners‘ mistakes

Empowermentthrough competitive business expertise

Fast trackto extending your business solution with new business processes

No trial runsstart straight off with a fully documented prototype that is fully reusable

Failure is not an option!it works: what you see is what you get for implementation

Communicationamong project team members and executives becomes more effective

Business platform for partnersevaluation, joint development, own development

Consistent approachfocusing on integrated end-to-end business processes

SAP AG 2006, TW 8

Content Overview





SAP AG 2006, TW 9

What's New: New Business Scenarios in V1.600 – 1

What is the content development focus in this release?

Scenarios upgraded from SAP Best Practices for

Fabricated Metals US V1.50

� Sales from Stock w/ Simple Job Processing

� Sales from Stock, Job Proc. w/ Manufacturing Order

� Third Party Procurement with Shipping Notification

� Bought In Material (MTO)

� Inter-Company Stock Transfer

� Toll Processing/Subcontracting

� Forecast of Semi-Finished Goods

� MTS Production with Scheduling Agreement

� Internet Sales (R/3 Edition) - B2B for Fabricated Metals

Updated

SAP AG 2006, TW 10



Scenarios upgraded from SAP Best Practices for

Fabricated Metals DE V1.47

� Procurement - External Supplier / Contract

� Third Party Processing Without Shipping Notification

� Production - Shop Floor Control

DIMP scenarios

� Fast Entry in Order Processing

� Order Combination

� Non Ferrous Metal Processing

Updated

SAP AG 2006, TW 11



New scenarios

� Flexible Planning in R/3 with MTS for Bulk product (incl.

Sales from stock)

� Repetitive Manufacturing

� Claims and Returns

� Third party –––– cross-company

� GuiXT

New

SAP AG 2006, TW 12

Content Overview





SAP AG 2006, TW 13

Suppliers & Partners

Customers & Channels

Product Design Marketing & Sales Planning Procurement Order Management Manufacturing Distribution

Time to Market

New Product Development &

Introduction

Life-cycle Data Management

Supply Chain Planning

Demand & Supply Planning

Transportation Management

Procurement

Strategic / Global Sourcing

Operational Procurement

Order Management & Execution

Enterprise Asset Management

Warehouse Management

Sales Order Management

Manufacturing Scheduling and Execution

Drop Shipment

Customer Service

Customer Interaction

Complaint / Claim Management

Quality Management & Compliance

Quality Management

Compliance Management

SAP Best Practice for Flat Steel

Enterprise Management & SupportAnalytics

Financials

Human Capital Management

Corporate Services

Operations Support

Mill Products Solution Map 2006 - Primary Metals

SAP AG 2006, TW 14

Scope

IN scope� Product: Flat Products (Slabs, Plates, Coils, Sheets etc)

� Production Processes: steel making - continuous casting- hot rolling-cold rolling - finishing

� Functional modules:�mySAP ERP(DIMP): SD,MM,PP,QM,FI,CO

�mySAP SCM: DP,SNP,GATP, PP/DS

� Special business process:� Inter-company business is involved because more than one companies in

production processes

� Standard SAP BP deliverables i.e. develop the solution based on China Baseline solution

OUT of scope� Product: Long Products (eg bar, wire, tube, section steel etc).

� Production Processes: Iron making, Tube mill etc.

� Special business processes:�Legal Consolidation is not covered.

SAP AG 2006, TW 15

System Architecture

SAP

Manufacturing

Execution

SAP

Manufacturing

Execution

SAP Manufacturing PlanningSAP Manufacturing Planning

Production Execution

System

Production Execution

System

SAP NetWeaver/Standard Interfaces

AutomationNetwork

Level

Operations Network

Level

PlanningNetwork

Level

Process Control

Progr. Logic Contr. Micro Processor

Process Control

Progr. Logic Contr. Micro Processor

Process ControlProcess Control

Equipment Control SystemsEquipment Control Systems

Factory Data CaptureFactory Data CaptureProcess ControlProcess Control

Industry specific scheduling/ optimization

Industry specific scheduling/ optimization

SAP ERP

SAP SCMPSI ALS

PSI PES

SAP AG 2006, TW 16

SAP Best Practices for Flat Steel – Scenario Overview

Scenarios

� Demand Planning and Product Allocation

� Customer Order Oriented Sales Process

� Production Planning for

� Steel Mill

� Hot Rolling Mill

� Cold Rolling Mill

� Finishing Mill

� Rescheduling across Mills

� Production Execution for Steel Mill, Hot Rolling Mill, Cold Rolling Mill

� Reactive Planning

� Product Costing

SAP AG 2006, TW 17



� Based on ERP 2004 with ECC DIMP 5.0 and SCM 4.1

� Localized for China

� Localization ongoing for Japan

� Delivery end of July 2005

� „Best Practices“ defined even with input from partners

SAP AG 2006, TW 18

Content Overview





SAP AG 2006, TW 19

Mining Best Practice AU V1.600Mining Best Practice AU V1.600Mining Best Practice AU V1.600Mining Best Practice AU V1.600

New Scenarios in the following Solution areas

�EH&S – Occupational Health,

Industry Hygiene and Safety

�Maintenance Cost Budgeting

�Rotables management

�Supply Chain Planning in

mySAP SCM

Major improvements

�Apply most current ERP 2005

processes & technology

�Improved design in Contract to

Invoice scenarios

�Streamlined End to end RLM

scenario

�Cost center, equipment and

product cost planning & actuals

� Based on mySAP ERP 2005 & Baseline AU Version & pre-delivered

Industry independent Scenarios

� Highlights:

2 End to End Value Chain Scenarios for Coal Mining and Metal Mining

� Planned Delivery: 2nd Quarter 2007

SAP AG 2006, TW 20

Planned Scope of the next Mining Best Practices

Sales &

ShippingTransportProcessing

Mining

ProductionStockpile Stockpile Stockpile

18 months

Month/week

Daily

Daily & Shift

Execution

20 years Sales Forecasting

Integrated Supply Chain Planning

Detailed

Processing

Schedule

Rail & Shipping Schedule

Rail & Shipping Execution

Detailed Mine

Schedule

Maintenance

Production

Procurement

Costing

Quality

Maintenance

Production

Procurement

Costing

Quality

SalesStockpiling

Quality

� 2 End to End Value Chain Scenarios for Coal Mining and Metal Mining

� Maintenance & Procurement, RLM, EH&S

X41 X42

X50

X51

X53

X54 X55

X56

X57

X60 X61 X62

X70 X71

X72

X73

X80 X81 X82 X83

SAP AG 2006, TW 21

Mining Best Practice AU V1.600Mining Best Practice AU V1.600Mining Best Practice AU V1.600Mining Best Practice AU V1.600 Mining Best

Practice AU V1.600

Mining Best

Practice AU V1.600

TIMED_DELIVERY_TO_REMOTE_LOCATIONSX83

EHS_RISK_ASSESSMENT_INCIDENT_MANAGEMENT

RENTALS_MANAGEMENT_REMOTE_LOCATIONS

RETURNS_FROM_REMOTE_LOCATION

SUPPLY_TO_REMOTE_LOCATION

MAINTENANCE COST BUDGETING

REFURBISHMENT PROCESSING

CORRECTIVE MAINTENANCE

PREVENTIVE MAINTENANCE

CONTRACT_TO_INVOICE_METAL

CONTRACT_TO_INVOICE_BULK_DES

CONTRACT_TO_INVOICE_BULK_FOB

METAL_PRODUCTION

COPPER_ROM_PRODUCT_COST_PLANNING

STOCKPILE_BLENDING_UNPLANNED

STOCKPILE_BLENDING

RAIL_ROAD_DISTRIBUTION_BULK

BULK_ROM_PRODUCTION_COSTING

BULK_ROM_PRODUCTION_&_CRUSHING

DEMAND_SUPPLY_PLANNING COPPER (MINE_TO_PORT)

DEMAND_SUPPLY_PLANNING COAL (MINE_TO_PORT)

Scenario Description

X62

X57

X82

X90

X81

X80

X73

X72

X71

X70

X61

X60

X56

X55

X54

X53

X51

X50

X42

X41

Scenario Name

SAP Best Practise

Documents

Transcript of SAP Best Practise