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Cement process

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Cement process

  1. 1. Enabling the Cement Industry through SAP Solutions Nikhil Chaturvedi, IBU-Mill Products & Mining Date: 6th June 2008
  2. 2. 1. SAP: Profile & Credentials 2. Cement Industry: Trends and Challenges 3. SAP: Solutions for the Cement Industry 4. Cement Industry: Case Studies Agenda
  3. 3. SAP: Profile & Credentials
  4. 4. SAP in the Cement & Building Materials Industries 0 100 200 300 400 W estern Europe Asia North Am erica South America M iddle East Eastern Europe Australia Africa More than 700 SAP customers in building materials (May 2007) 0 20 40 60 80 100 120 Lafarge Holcim Cemex HeidelbergCement Italcementi 4 out of top 5 cement producers rely on SAP Building materials customers in 70 countries
  5. 5. SAP Customers in Cement / Concrete Industry Over 195 Customers Holcim (70 + Countries) Heidelberg Cement Italcementi Loma Negra C.I.A.S.A. Lafarge Perlmooser AG Hanson Saint Lawrence Titan Cement Company S.A. ESSROC Incorporated (Italcementi) Beton Son B.V. Mahaphant Fibre Cement Siam Cement, Siam City Cement India Associated Cement Company (ACC), Ambuja Cement Grasim Cement, L&T Cement (Ultra Tech Cement) Calcom Cement Prism Cement Sanghi Cement Rajshree Cement Malabar Cement Binani Cement JayPee Cement Deepak Cement Dalmia Cement JK Cement
  6. 6. Executive Advisory Council Building Materials The Executive Advisory Council for the Building Materials Industry is a forum for strategic debate of key industry issues at executive level. The objective of this forum is to Align SAP and industry vision of where the building materials industry is heading. Identify focus areas for SAP to support the vision and trends. Establish a discussion and influence channel for the industry. Objective
  7. 7. Executive Advisory Council Building Materials Chairmanship Chairman Dr. Georg Schulz Holcim, Head of Department Co-Chairman Jose Antonio Molares Cemex, Director SAP Responsible Dr. Udo Werner Industry Principal Building Materials Workgroups Ready-Mix Requirements CRM and Object ManagementNext Council Meeting: 2008 EAC for Cement & Building Materials Customers July 8-9, Heidelberg, Germany
  8. 8. Cement Industry: Trends & Challenges
  9. 9. Cement & RMC Industry: Trends & Challenges Asset portfolio Product & Service Portfolio Business Partner Portfolio Plant Efficiency Managing the Triple Bottom Line Attract Investors Ensure Compliance & Process Integrity Optimize Margins and Profitability Retain Knowledge of Aging Workforce Attract & Develop New Talents Speed-up Learning Curve Global Growth Productivity and EfficiencyDifferentiation and Innovation IT is the Enabler to Meet Tomorrows Business Challenges Standardization & Harmonization Reduce Cost & Increase Efficiency Ensure Governance & Compliance Superior Customer Service Cross-Industry Value Networks Joint Research Cooperation New Business Models Innovative Supply Chain Processes Increasing Competition from Emerging Markets High Transportation Cost Resource Replacement & Substitution Process Efficiency Competitive Prices Enhanced Analytics Reduce Material Costs Communication Standards Global Rollout of ‘Best Practice’ Solution Flexible deployment Asset Utilization Transparency Asset Planning & Maintenance Investment Planning Use of Alternative Fuels Efficient Energy Management Grow into Emerging Markets Fast Digestion of Mergers & Acquisitions IT that adapts to local conditions Transportation Tracking & Tracing, GPS Flexible Freight Tendering Self-Service Delivery Innovative Processes Customer Self Services Superior Flexibility Maximum Reliability
  10. 10. Capital Intensive Manufacturing Capital extensive business requires high utilization of production facilities Planning and optimization of downtimes and maintenance activities Cost Control is a Must High Distribution costs Fast rising energy prices while product prices have to stay competitive... ... Resulting in declining profit margins Cost effectiveness on all levels sought Flexible Planning and Production Production optimization … on short term notice Planning maintenance activities Customer Service Customers in remote locations Centralization to become more effective Self service loading and electronic invoicing High change rate of orders due to uncertainties on construction sites SCM and Transportation Multiple Plants, Storage locations and customer locations Significant transportation cost in comparison to product value Local market, limited by transport cost ratio (cement: app. 100 km around a plant) Cement & RMC Industry: Trends & Challenges
  11. 11. Business Challenges faced by the Indian Cement Industry Cement prices in India are market driven and volatile. Retrospective changes are routine Prices vary from district to district and customers are invoiced at the specified rate for consignee's location Even though, Cement companies try to create Product differentiation, market share is highly dependent upon Price and hence, “Cost control” in Production as well 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
  12. 12. SAP: Solutions for the Cement Industry
  13. 13. Optimized Organization and Process Landscape Central control. •Strategy •Vision •Governance, risk, compliance Shared service: Products and technology 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 Plant Plant Plant
  14. 14. SAP Solutions for Cement Companies Central processes Strategy management Analytics Compliance solutions Business process modeling Multi-language capabilities Solution manager Localized services Customer relationship management Transportation planning Price and margin management Supply chain planning Plant operations Production execution Shop floor visibility Quality management Inventory management Maintenance planning
  15. 15. Suppliers & Partners Customers & Channels Product Design Marketing & Sales Planning Procurement Order Management Manufacturing Distribution Enterprise Management & Support 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 Solution Map: Cement & Building Materials
  16. 16. SAP is focusing on building materials hot topics with specific solution offerings based on SAP ERP SAP SCM SAP PLM SAP SRM SAP CRM SAP NetWeaver SAP ERP Enterprise Asset Mgmt. Cost & Quote Mgmt. Shared Service Center Channel Sales Mgmt. Shop Floor Integration Service Mgmt. Financial Supply Chain Mgmt Strategic Sourcing Logistics Execution Self Services Environ- mental Health & Safety Compliance Delivery Visibility & Tracking Transpor- tation Mgmt. Analytics
  17. 17. Objectives & Policies Typical Application Solution Architecture Demand Planning Capacity & Supply Planning Distribution Planning Procurement Planning Production Planning Inventory Planning Selling DeliveryDistribution. Production. Order Fulfillment Strategic Tactical Transactional Financial & Management Accounting, MRO Procurement, HR.. Strategic Planning Supply Chain Planning ERP / MES / SCM / mix ERP Scheduling WarehousingProduction Execution Sequencing MES Multiple Systems Prod. Execution PCS DCS SCADA DASProcess/Plant Control Control & Process Data Acquisition Multiple Systems
  18. 18. Assuring high customer service levels is critical for Building Materials companies to improve customer retention and loyalty. Sales can easily, quickly and accurately, determine pricing 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 process quotations and sales orders. Customer Service: Sales Order Management Industry Challenges Low sales efficiency with order fulfillment errors generated by a lack of insight into purchasing, production and inventory information. Long sales order lead times and slow response times to customer queries on order status due to manual processes and siloed info. Low customer & product profitability due to lack of available information, analysis & decision-making support tools. Business Benefits with SAP Improved customer service thanks to comprehensive capabilities that enable sales to deliver accurate product specification and usage, price, quantity and delivery information to customers. Reduced order processing costs through streamlined, automated processes. Increased customer profitability with comprehensive sales quotation and order analysis. SAP Solution Sales and Distribution (cont.) Sales and Distribution Sales from Stock Quotation & Order Processing Make-to-Order Batch Handling Credit Management Foreign Trade Export Processing (Intrastat, Extrastat, Customs documents) Third-party drop shipment Sales of Bought-In Item Free of Charge Delivery Prospect Customers Sales Order Processing Debit Memo Processing Customer Down Payment Delivery, Picking, Billing, Payment, Print Documents Cross Company Sales Order Processing Reporting (Open Orders, Expiring Quotations, etc.)
  19. 19. Business challenge for concrete companies Inefficient sales order processing Sales order processing done at each concrete plant Lack of standardized sales order processing No optimization of production and transport across plants Solution Centralized order entry at call center Incoming orders automatically distributed to plants Automatic credit management Checks available production capacity of plants Checks availability of transport vehicles Business benefits Less personnel required Can operate 24 hours per day, if necessary Improved accuracy of order information Reduced transport cost Plant Scheduling Centralized Sales Order Processing Transport Scheduling Reporting Solution Map ERPERP SAP Sales Order Entry via a Call Center CRMCRM SCMSCM
  20. 20. Consolidated, sychronized supply and demand planning helps Building Materials manufacturers enable and improve forecasting in a commoditized product portfolio, as well as supply chain visibility and efficiency. SAP Business All-in-One provides a flexible, powerful solution for integrated annual operating, sales & operations, as well as materials requirements planning. Annual Planning / Forecast Annual operating planning (AOP) Sales quantity forecasting Monthly Sales Plan Quantity by Customer/ Product Transfer to sales & operations planning (SOP) Profitability reporting Anonymous Forecast Supply Chain Planning: Demand & Supply Planning Logistics Planning Planning/forecasting of future demand Aggregated production planning including capacity check Long Term Planning of material requirements, based on production plan Transfer to detailed MRP and Production Planning / Scheduling Plan work Center capacities Industry Challenges Inaccurate forecasting due to an unstructured planning process with distributed data across sales and business units. Inefficient portfolio management through poor visibility into global demand and supply status. Lost sales and high inventory levels through siloed sales, production and inventory planning processes. Business Benefits with SAP Improved customer service levels through accurate, consolidated sales and revenue plans, and better supply chain visibility to enable improved customer responsiveness and order fulfillment. Optimized portfolio management with better insight into product and customer profitability, as well as the demand and supply situation. Better supply chain efficiency with asset optimization and reduced inventories through synchronized sales & revenue planning with production planning. SAP Solution
  21. 21. Functions of Demand Planning Structure Demand Information by freely definable characteristics Customer, 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 Sources Direct manual input by user, Entry via Internet (customers), Upload from data warehouse, 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
  22. 22. Demand Planning Planner’s Knowledge Task-specific planning tools Flexible views Graphics Promotional planning Life cycle management Accuracy reporting Statistical Methods Multi-model approach Average models Exponential smoothing Causal factors Trend dampening Model combination Pick best Demand Planning Data Mart Anticipation of Future Demand Collaborative forecasts Order & shipment actuals & history Cost POS data Nielsen / IRI data ... Information
  23. 23. Solution Overview SNP generates network of production orders and stock transfer orders Demand plan Distribution centers Production plants 60% 40% 30% 70%
  24. 24. SNP Optimization Forecasts sales orders Forecasts sales orders Sourcing Product mix Production & procurement plan Inventory strategies Sourcing Product mix Production & procurement plan Inventory strategies APO Liste Flexible Constraint Definition Capacities Material availability Market constraints Costs of opportunity Optimization Supply chain modelSupply chain model Cost minimization - Profit maximization
  25. 25. Optimization Profile Production capacity Transportation capacity Selection of most suitable production plant Optimization of production costs, transportation costs, and storage costs Mixed integer linear programming / metaheuristics Feasible plans Safety stock Determines which constraints are considered Handling capacity Storage capacity
  26. 26. Shipping & Transportation Management Delivery 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
  27. 27. Capabilities of SAP Transportation Planning & Execution Financials Integration Transportation Charge Management Transportation Dispatching & Execution Freight Management •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 Charge Calculation •Costing & Rating Engine •Customer Freight Agreement •Carrier Freight Agreement Customer Freight Billing •Billing Preparation Supplier Freight Invoicing •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
  28. 28. Global Availability Check Checking Product Availability at time of Sales Order Creations Simulating Global Supply Chain based on projected inventories in the future Consider product substitution based on predefined rules Consider substitution of supplying location based on predefined rules Re-simulate Product Availability Check at any critical point in time Re-consider priorities based on predefined rules Enable Sales Managers to immediately check on Delivery Capabilities
  29. 29. SAP NETWEAVER Manufacturing Visibility Manufacturing Planning Manufacturing Execution Maintenance Management Quality Management Environmental Health&Safety Manuf. Intelligence Dashboards Manufacturing: Seamless Integration Manufacturing Planning Forecasting/Collaborative Forecasting Make-to-Stock / Make-to-Order Finite Capacity Scheduling Material Requirements Planning Recipe Management 1 Manufacturing Execution Production Process Management Batch Management Labor & Resource Management Outbound Processing Production Dispatch 2 Quality Management LIMS integration Quality Engineering Quality / Tracking Control Quality Improvement Audit Management 3 EH&S Compliance Product Safety Management Hazardous Substance & Dangerous Goods Emissions & Waste Management Industrial Hygiene and Safety Occupational Health 4 Plant Maintenance Technical Asset Mgmt Predictive & Preventive Maintenance Maintenance Execution Integration to purchasing 5 Visibility ATP/CTP Safety / Target Stock Manufacturing Costing & Performance Mgmt. Tracking & Genealogy Subcontracting and Collaboration Manufacturing Event Management 6 All Six Key Capabilities are Integrated and Seamless
  30. 30. Production Planning Capacity 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
  31. 31. Efficient quality management helps Building Materials companies better manage and assure product quality, monitor & improve quality standards, as well as document quality compliance for subsequent audits. The SAP solution delivers a robust quality management solution to support high quality sourcing and improved vendor management. Operational Compliance: Quality Management Industry Challenges Quality issues cause lower quality end products lowering operating margins and customer satisfaction. Poor tracking of supplier material quality results in high cost return to vendor processing and delayed time-to-customer. Complex tracking of materials and quality documentation for regulatory compliance. Business Benefits with SAP Increased customer satisfaction through efficient quality management processes to assure high product quality. Improved supplier selection and management with vendor evaluation process. Lower operating costs and increased product profitability support by quality inspection and monitoring throughout the product life cycle to reduce product errors. Easier regulatory compliance with quality documentation and auditability 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 batch traceability) Batch recall Batch analysis
  32. 32. Maximize the return on relationships through all suppliers within the supply chain – from strategic sourcing to operational procurement. SAP enables Building Materials Companies in reducing procurement cost & time of inventory replenishment. SAP delivers a complete, integrated solution for the entire procurement cycle. Sourcing & Procurement – Strategic & Operational Procurement Industry Challenges Poor vendor selection results in long lead times, over-priced materials, and low material quality triggering high cost returns. Inefficient, manual and paper-based procurement processes. Business Benefits with SAP Optimized vendor selection with vendor evaluation – vendor pricing, service, lead-time & performance comparison/evaluation to better negotiate contract terms, reduce material costs, lead times and returns. Reduced operational costs with automated procurement tasks in administration, production and transportation including purchase requisition creation, invoice verification, payment processing etc. Comprehensive visibility into the supply chain through integrated processes for better inventory turnover, cycle times, and lower receiving and material storage costs. SAP Solution Materials Management (Continued) Materials Management Purchase Price Negotiations with Vendors Request for quotation Procurement contracts Purchase requisition & order processing Internal procurement Subcontracting Stock Transfers Procurement & Consumption of Consigned Inventory Goods receipt (with batch number creation & quality inspection) Return to vendor Invoice & payment processing
  33. 33. Building Materials companies need comprehensive, accurate enterprise visibility and strong financial management support to (1) fulfill financial requirements, (2) enable profitable growth and (3) operational efficiency. SAP provides the market-leading solution for accounting, financial reporting, and performance management – integrating financial management with business processes. Financials Industry Challenges Inefficient accounting and controlling processes with information located across transaction and financial systems. Inaccurate, incomplete cost and revenue data for portfolio, asset and operations management. Different, country-specific financial accounting processes, principles and regulations. Business Benefits with SAP Efficient, automated accounting and controlling processes. Complete and accurate data through seamless process integration across operational areas of the company. Enhanced company profitability analysis by market segment (products, customer, orders, business units). Automated calculation & comprehensive visibility & analysis of project, asset and product costs throughout the life-cycle. Easier multi-country financial reporting with, multi-currency and asset & inventory valuation capabilities. SAP Solution Accounting General ledger Accounts payable / receivable Cash management Cost of sales accounting Asset management Segment reporting Period end closing Revenue planning Accounting (continued) Sales and operations planning Purchased material price planning Cost center planning Internal order accounting Product costing Period end closing incl. inventory valuation
  34. 34. 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 information control, analysis, and delivery Enables performance planning, measurement, and management Optimizes the financial supply chain Most comprehensive, functionally-rich solution on the market Market-leading solutions and customers in all industries Reliable, proven business partner with solution and industry expertise
  35. 35. All SAP applications are completely integrated into Accounting Example: Actual Costing of a product based on actual production, purchasing of raw materials and asset utilization: For live demo: show Ides Scenario Cement Costing and Actual Costing 1. Process Order 2. Collected Costs 3. Settlement to G/L4. Monthly Analysis
  36. 36. Cost Accounting
  37. 37. Cost Accounting – Cost centers
  38. 38. Material Management Finance Controlling 4 AP 20 Revenue Integrated process flow for a cement plant Raw Material Extraction Raw Material Preparation Raw Meal Preparation Clinker Production Cement Grinding Distribution SAP Business Information Warehouse 3 Material/Cost booking 5 Invoice 6 Cash 1 Purchase Order Supplier Material Stock 2 Delivery 7 Consumption Local Plant Technical Information Systems 8 Consumption per time period Production Planning Prod. Order Cost Collec. 9 Cost booking Human Resources 10 Labor costs 12 Production amount per time period 11 Cost Allocation Cost size 13 Cost equivalent 17 Delivery Note 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 Delivery 21
  39. 39. Supply chain management Strategic & tactical planning functionalities Link to execution Warehouse operations Transport management system All levels of SC planning are covered by SAP SCM (APO) Online integration to ERP 6.0 ensures capability for simultaneous planning and availability check Transportation and warehouse management integrated as part of the overall solution Ease of Further Evolution Business evolution requirements SAP coverage Customer relationship management Market intelligence systems Management tools for marketing operations Sales force automation CRM fully integrated to supply chain execution and finance backbone Covering engagement, transaction and fulfillment process Back office Fixed asset control system Maintenance systems Coprorate Stragtegy Management Maintenance module integrated with Finance/Controlling, HR and materials management module covering also maintenance of mobile assets SAP Strategy management (by BusinessObjects)
  40. 40. Cement companies need a complete, integrated view on financial and operational targets and figures to (1) develop realistic business plans as well as (2) monitor and support operational decision making. SAP provides tools to generate a complete picture of Cement companies to control growth and operational excellence. Analytics & Operations Support Industry Challenges Lack of visibility into financial and logistic key figures throughout all company departments. Inaccurate and incomplete statistical data base to link strategic plans to operational performance. Lack of analytic support to understand the profit drivers of Materials business. Business Benefits with SAP Single analytical platform for the whole enterprise in a cross- functional and collaborative environment. Support of integrated and realistic business planning and monitoring of costs and revenue during execution. Actual detailed operations reporting and support of operational decision making in sales, production and procurement. Integrated operational support of cross functions like quality management, procurement and project management. SAP Solution Analytics for ERP (continued) & Operations Support Cross-functional Analytics for ERP Analytics for MRP, Purchase requisition, stocks Quotations, Sales Orders, Line items, Deliveries, Billing Credit Overview & Memos, Customers Backorders, Sales Support, Returns Purchase Orders, Contracts, Scheduling Agreements Analytics for Vendor, Warehouse stocks Batch analysis, Availability overview Plant & Material Analysis Operations Support for Quality Management Global Trade Services Project / Portfolio Management Indirect Procurement
  41. 41. Clinker Factor Overall Equipment Efficiency Mean Time Between Failures Coefficient of Variation of Cement Mortar Strength Thermal 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 ProductionPerformanceCostPerformance Specific Raw Material Cost of Ready-Mix Concrete Produced Average Selling Price of Ready-Mix Concrete Cement Ready-Mix Average Volume Produced per Plant Volume Delivered per Truck General Maintenance Performance Own Personnel Production Subcontracted Personnel performance Accidents with Time Lost Overtime Outstanding Work Personnel Performance Specific Maintenance Costs Investment to Maintain Productive Capacity and Competitiveness Specific Replacement Investments Mean Time between Repair Preventive Maintenance Routines
  42. 42. Production Supervisor UI
  43. 43. SAP Quality Management - Quality Control Quality Control enables recording, tracking and analysis of product and process characteristics to ensure quality compliance. Key Benefits: Supports automatic or manual triggered inspection lots Integrated tightly with the complete supply chain (e.g. inventory, batch, purchasing) Enables statistical process control (SPC) to monitor critical product and process characteristics in the manufacturing process and allows instantaneous intervention Documents product quality to achieve regulatory compliance Includes 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
  44. 44. Quality Inspections Comprehensive inspection processing Goods receipt inspection In-process control Post-process control Inspections at goods issue Recurring 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. inventory management)
  45. 45. A Snapshot of the Quality Inspector’s Dashboard Work list with multiple views that contain inspection lot related tasks. Direct access to results/defects recording application High frequency tasks can be saved as favorites and launched on demand Direct access to the confirmation application
  46. 46. Enterprise Asset Management – An Evolution Inspection and Calibration RFID and Mobile Devices Project Management MRP & Spare Parts Management Full Enterprise Asset Management Core Financials Financial Optimization Reliability Reporting Human Resources Time and Payroll Skills Management Maintenance Management Systems Asset Maintenance MRO Procurement and Inventory
  47. 47. Design & Specify Business planning Investment management Collaborative specification and design Maintenance engineering Interfacing CAD systems Project management Maintenance cost planning Procure & Build Supplier qualification and candidate selec. Bidding and contract management Procurement process Document management Project management Collaborative construction Project and investment controlling Decommission & Dispose Asset transfer and disposal Collaborative disposal mgmt. Document management Project management Waste management Asset compliance Asset re-marketing Operate & Maintain Technical asset management Preventive and predictive maintenance Maintenance planning and scheduling Work order management Mobile asset management and RFID Contractor management MRO and services procurement Work clearance management Shutdown planning Interfacing GIS and SCADA EAM: Functional Scope
  48. 48. 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 Objects Orders / Notifications Costs Downtimes History Time- / Material confirmation Technical completion Order settlementCom pletion Internal / External resource- planning Release / Print Control / Execution PM Order Techn. Object Condition description Item data Activities / Tasks Priorities N otification
  49. 49. Mobile Solution Portals BI-DataWarehouse NetWeaver Plant Maintenance (PM) in SAP ERP basis of EAM CO MM PS Material master Inventory mgmt. Purchasing Contractor Cost center controlling Order controlling Project structure and controlling Budgets AM Asset master Depreciation Capitalization QM Test equipment Calibration tasks Calibration results PP DMS Integration with production Manage documentationHR Qualifications Manpower planning Time tracking Payroll mgmt. Value of integration PM-Technical Asset Management - Preventive and Predictive Maintenance - Breakdown Maintenance - Refurbishment
  50. 50. Maintenance Cost Budgeting History Based Budgeting Ad hoc Budgeting Simulation Location Based Equipment Based Tasks Based
  51. 51. Mobile Asset Management - Functional Overview Technical Object Management SAP Backend Data update in backend Measurement & Counter Readings Inventory Management Notification Management Business Partner Management Contract Management Order Management Data creation and assignment
  52. 52. High frequency tasks are aggregated in the services list Work list of current Maintenance Orders and Notifications can be configured as needed Direct access to the confirmation application Reports can be extracted from SAP BI or any system on the plant floor Maintenance Inspector’s Dashboard: Sample
  53. 53. 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
  54. 54. SAP MII: Manufacturing-to-Business Integration What’s happening during every shift? Material availability and consumption Capacity availability and utilization Schedule changes Product Genealogy tracking and QM What’s happening at each line? Cycle Times / Operating Efficiencies Machine Breakdowns / Unplanned Downtime Quality Index Predictive Maintenance requirements How are we hitting our targets? Total Cost of Production and Variance Labor and Resource Productivity Order Fill Rates and Cycle Times Fixed and Variable Asset Utilization ERP SFAC - Shop Floor Automation and Control Systems MES – Manufacturing Execution Systems DCS – Distributed Control Systems MES SFAC* ? ? ? DISCONNECT DISCONNECT
  55. 55. SAP MII offers these Core Functions/Services to enable Manufacturing Integration and Intelligence Web Services • All services exposed as web services • Includes user-defined composite services Connectors SAP xMII SAP xMII CoreMfg Services Other Standards S95/B2MML Standard Analytics Alerts KPI Visualization WebServices Business Logic Services 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 Manufacturing Intelligence 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 Manufacturing Integration
  56. 56. 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
  57. 57. SAP Environmental Compliance (EC) SAP EM Emissions and Compliance Management SAP EM Emissions and Compliance Management CfP Compliance for Products CfP Compliance for Products Industry SpecificCross-Industry SAP EH&S Comprehensive and complete business solution for environment, health and safety management SAP EH&S Comprehensive and complete business solution for environment, health and safety management OH Occupational Health IHS Industrial Hygiene and Safety WM Waste Management Emissions and Compliance Management Product Compliance HSM Hazardous Substance Management PS Product Safety DG Dangerous Goods Management Health & Safety Services- HSS Product Compliance-CSM
  58. 58. SAP EH&S Solution Functional overview Product Safety * Hazardous Substance Management ** Dangerous Goods Management Industrial Hygiene and Safety Waste Management Occupational Health EH&S Analytics / EH&S Reporting SAP EH&S offers comprehensive and complete business solution for environment, health and safety management! Substance / Material Employee Work areas One solution for all industries * for producers of hazardous substances ** for users of hazardous substances
  59. 59. Questionnaire • Questions • Answers Documents • Type • Size SAP EH&S Occupational Health - Medical Service Data 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 Medical service Injury/Illness Log • Name of the person • Date • Name of physician • Injury/Illness • Transferral • Comment Vaccinations • Name, Type • Frequency, next date Case 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
  60. 60. SAP EM - Capabilities SAP EM Compliance and Emissions ManagementSAP EM Compliance and Emissions Management Compliance Management Compliance Management Emissions Management Emissions Management Greenhouse Gas Management Greenhouse Gas Management Permit Management Permit Management • Data Monitoring • Task Monitoring • Exception Tracking • Reporting • Data Monitoring • Task Monitoring • Exception Tracking • Reporting • GHG-Monitoring • Allowance Mgmt • National Allocation Plan (NAP) Reporting • Inventory • Trading • GHG-Monitoring • Allowance Mgmt • National Allocation Plan (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
  61. 61. SAP Emissions Management Reporting and Documentation Compliance And Management Modeling and Analysis IT-Structure Optimal Integration in SAP ERP Modules Flexible integration in heterogeneous Infrastructures Web-based, adaptable user interface Stand-alone solution with new Java-based SAP technology SAP NetWeaverTM Overview of SAP Emissions Management Performance Support of incident/accident-management Data source for corporate environmental reporting Support of audit-trails Interfaces to market places and trading platforms, e.g. GHG-trading Cross FunctionalCross Functional Definition, allocation and control of measures and interactive processes Role-based task and work-flow management Interaction with internal/external structures (e.g., maintenance) Analysis and presentation of scenarios and data Template-based, import-/export functionality Automated generation and distribution of data and reports Structured representation of facilities and processes Automated estimation of complex emissions data Definition and application of forecast scenarios
  62. 62. Cement Industry: Case Studies
  63. 63. Ultratech Cement (L&T Cement): SAP ERP Ultratech Cement is a subsidiary of Grasim Industries, and with Grasim Cement, it is the largest producer of cement 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 Objectives Simplifying the handling of complex pricing, invoicing and Distribution processes Reduced physical delivery time for moving material out of the plant Reduced Inventory at warehouses Reduced manpower for various processes in Stores, Purchase and Accounts Better decision making at the top management Level Streamlining of accounting activities Standardization of processes across the country Benefits Easier delivery processing On-line dispatch information Freight monitoring Delivery tracking Effective transporter billing system Transporter billing taking shortages / damages into account Tracking of every individual delivery up to payment of transporter bill Easy tracking of reallocation deliveries Automatic price approval mechanism Automatic generation of alphanumeric code in customer master Automatic generation of credit / debit notes for rate difference Transparency of information at operational level to satisfy customer orders
  64. 64. Grasim Cement: mySAP ERP Grasim Cement is a subsidiary of Grasim Industries, and produces 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 Objectives Integration of all the depots with the Central Marketing office to facilitate the online placement of orders and for monitoring the dispatch position To be an industry benchmark in truck turnaround time Reduction in procurement cost Enhancing efficiency in the batch management throughout the supply chain Flexibility in report generation and decision- making Improve the hire-to-retire processes of employee management Benefits With SAP as a tool, a systematic process of demand projection and timely communication was established that, in turn, enables the unit to maintain consistently a high delivery performance in terms of timely supply of the right quality and quantity of Cement at the right place Reduced the internal truck turnaround time from 2.25 to 1.38 hrs Better visibility of suppliers’ quality and cost performance Greater inventory visibility across “Dumps” and stocking locations SAP BIW enhanced the reporting and analysis capabilities across various levels of the organization
  65. 65. Holcim White LTD: SAP CRM / Mobile Sales
  66. 66. Cementos Bio Bio: SAP Netweaver KEY CHALLENGES Integrate new systems and new process while supporting acquired companies Enhance control over varied and geographically dispersed processes Manage documents more effectively Streamline information flow and enable collaboration IMPLEMENTATION HIGHLIGHTS Deployed portal-based document management system Implemented comprehensive Web services platform Deployed analytic and reporting capabilities PROJECT OBJECTIVE Create a comprehensive Web-services-based infrastructure to enhance control over processes, and to support growth strategies Based in Santiago, Chile, Cementos Bio Bio produces a wide range of products, from cement to forest products and ceramics. The company is using the SAP NetWeaverTM to create a comprehensive Web- services-based infrastructure to enhance control over processes, and to support growth strategies.
  67. 67. Cementos Bio Bio: SAP Netweaver SAP SOLUTION SAP NetWeaver, including SAP Enterprise Portal with knowledge management capabilities and SAP Web Application Server components KEY BENEFITS Better information access for decision makers Infrastructure that can support growth and acquisitions Improved control over documents Enhanced collaboration"Beyond any single capability, SAP Netweaver gives Cementos Bio Bio a Web services platform for connecting everything." Jose Villegas, IT Manager, Cementos Bio Bio
  68. 68. SAP DeploymentBusiness Organisation Company Strategy Vertically integrated in aggregates, concrete and cement Generate improved returns by achieving the full synergies of integration Make customer focus an overriding business principle Be the lowest cost producer in our core products Operate in mature growth markets Ensure the sharing of best practice while at the same time maintaining our decentralised culture RMC Group is the world's fourth largest building materials company, measured by turnover, over £5 billion in 2001. The company employs over 31,500 people at nearly 2,400 locations in 27 countries. RMCs' International Headquarters are located in the UK at Thorpe, Surrey. Lines of Business Aggregates include sand, gravel and various grades of stone and rock. RMC operates over 400 quarries and sand and gravel deposits. Cement is a mixture of clay and limestone burnt in a kiln. The RMC Group operates 20 cement plants in Australia, Croatia, Germany, Latvia, Poland, Great Britain and the USA with an annual capacity of 20 million tonnes, making the Group the world’s 10th largest producer. Concrete RMC manufactures a wide range of precast and prestressed concrete products in nine countries. Global Organisation Country Country Country UK HQ 4800 users across Europe (growing to 5500 in the coming months) One SAP system per country shared by each line of business (UK, Fr, Ger/Aus, Den, Sp, Por, Cro, Pol) Hardware operations outsourced to Debis. Scope: Finance, Costing, Materials Management, Sales & Distribution, Production Planning and Business Intelligence (FI, CO, MM, SD, PP, BI) Heritage country-based SAP and non- SAP systems migrating to an SAP template with common data standards. Local flexibility for legal reporting and local processes. USA considering adopting the SAP template from the UK (currently 19 different legacy systems). Considering SAP Strategic Enterprise Management (SEM) and Plant Maintenance Benefits Consolidation 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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