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Cement process
1. Enabling the Cement Industry
through SAP Solutions
Nikhil Chaturvedi, IBU-Mill Products & Mining
Date: 6th June 2008
2. 1. SAP: Profile & Credentials
2. Cement Industry: Trends and Challenges
3. SAP: Solutions for the Cement Industry
4. Cement Industry: Case Studies
Agenda
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. 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. 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. 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
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. 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. 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
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. 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. 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. 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. 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. 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. 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. 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. 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. Solution Overview
SNP generates network of production orders and stock transfer orders
Demand plan
Distribution
centers
Production
plants
60% 40% 30% 70%
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. 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
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. 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. 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. 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. 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. 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. 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. 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
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. 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. 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. 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
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. 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. 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. 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. 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. 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. 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
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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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
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. 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
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. 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. 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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