SAP FOR MILL PRODUCTS

The Foundation for Sustained Profitability

in Mill Industries

ITC Infotech has helped

leading Mill Products companies
transform their business with SAP
SAP for Mill Products enables mill product manufacturers to manage the
entire enterprise. With SAP solutions, organizations can integrate
commercial, manufacturing and financial processes to support business
performance improvements and, ultimately, sustained profitability and
growth.
A variety of industries rely on SAP for Mill Products solutions, including:

Primary metals and fabricated metals

Packaging and containers

Pulp and paper

Building materials and components

Plastic products

Textiles and woven materials

Solid wood

Furniture

Cable and wire

SAP ECC 6.0 Solution with IS Mill

enabled variant configurations
are designed to improve overall
enterprise business-process and
manufacturing performance.
The industry solution enables
the visibility and responsiveness
needed to adapt to changing
economic conditions. It delivers
performance to sustain your
profitability and growth through
improvement in resource
planning, integrating disparate
solutions and ensuring
conformity to the specifications.
SAP ECC 6.0 Solution with IS Mill enabled variant
configurations take care of the key aspects of Mill
Industries i.e., product definition by attributes,
defined in terms of configurable material,
material variants and batches.

Configurable Materials

Class SHEET

Variant Class(300)

Batch Class(023)

Characteristics

Characteristics

Characteristics

Length

Length

Packaging Cat.

Quality

Grade

Packaging

Packaging

Grade

Thickness

Quality

Thickness

Width

Width

Usage

Sheet
Material
master data

Roll

Class SHEET

Material
master data
Class SHEET

Configurable
Material

Grade
Thickness

Configuration
Profile

Configured Material
Variants

Reference
Max. BOM

Roll_St42_3_2
Material
master data

Sheet_St42
Material
master data

Class SHEET

Class SHEET

Grade

St42

Grade

Thickness

300

Thickness

Width

2000

Width

St42

Partially configured

Fully configured

Material Variants

Basics of Variant Configuration

Variant Configuration is useful where an organisation produces new variants of a product to
meet the customer demand. These products are similar in nature but have different
dimensions or physical properties. These products are configured or customized or tailored
as per customer's requirement, using classification with different specification values.
Classification of product does not help in defining different SKU's for product variants, but
to have only one configurable material to cover all product variants.
Configuration of a product in sales order takes a reference from material variants based on
the specification values requested by the customer. Material variants are commonly used
products (high running), have fixed specifications and can be produced without sales order,
and are kept in warehouse to service the customer faster.

Object
dependencies

Max. Routing
Object
dependencies

In order to define the product specifications, a variant class and characteristics are used.
Variant classification is used to configure a product and also supports batch management
using batch classification to track a product through supply chain. Customer order gets
created for configurable material and configuration profile is used to control the process of
this configuration in a sales order. A Bill of material (BOM) and routing are created for a
configurable material with all possible combinations. These are called as Super BOM /
Routing or Max BOM / Routing. Object dependencies will be used to control the selection of
BOM components and processing steps for a particular variant.

Make-to-Order Scenario
BOM
Configurable Material

Sheet
Roll

Production
Order

Reel

Customer ABC
Material Sheet.
Quantity 200 to

Sheet 200to

Roll
Object
Dependencies

Configuration
Thickness

350

Width

2200

+
Assigned to a Class

+
Costing only as sales order costing

Example

Reel

Configuration

Routing
Packaging
Sheeting

Grade

Paper Coil
Grade

CSP

Poymers Chemical

For high number of character

combinations in a Make-to-Order
environment

+
Several characteristics remain undefined

Sheet

Due Date
September 15

Grade

Poymers Chemical

+
Created in Material Master

Thickness

350

Width

2200

AAA-ZZZ

Weight /m2

0-2000

Length

0-3000 m

Width

50-5000 mm

Color

From table

Variant
+
Created in Material Master
+
Assigned to a configurable reference material
+
All characteristics defined

Characteristics are pre-defined on

material level. Typically standard
price is calculated for stock
valuation prior to sales order entry

+
Periodic costing is done

CSP

Example

Grade

Winding

A Material Variant gets configured in the sales order by selecting various options from the
characteristics. Based on the selected characteristics values and object dependencies,
components from super BOM and operational steps from super routing get selected in order
to manufacture a variant. These selected components and operations get copied to the
production order to produce the variant configured in sales order.

Newsprint FTD
C22

Weight /m2

475

Length

900 m

Width

200 mm

Color

FTD Pink

Partially Configured Variant

+
Created in Material Master
+
Assigned to a configurable reference material
+
Some characteristics defined, some remain

undefined
+
Costing only as sales costing

Example

Coil, A, 550, pearl white

Grade

Weight /m2

550

Length

0-3000 m

Width

50-5000 mm

Color

Pearl white

Characteristics can be completed

during sales order entry. Changeable
characteristics do not influence
value of material. Cost estimation
can be done prior to sales order entry
or during sales order entry

Key Operational Benefits

Order Combination: In discrete
manufacturing, a single batch of a grade
may be used to produce numerous types of
products belonging to different
dimensions, properties and customers.
While the end product production is done
for specific production orders, inputs like
coil/slab may be issued together. Capacity
Planning, Order Release functions are
carried out in a cumulative manner. Order
Combination function of SAP IS-Mill
provides capability of combining several
standalone orders as a combined order.
While finished goods produced is assigned
and posted against child order, rest of the
activities like Goods Issue, Capacity
Planning, Scheduling, etc are done at
combined order level.
Under Delivery Tolerance: In make-toorder production, under- or over-delivery is
usual for material handled in pieces/
batches. If remaining quantity is within the
under-delivery tolerance of the sales order
item, further planned orders or purchase
requisitions should not be created in MRP.
IS-Mill provides features to avoid creation
of small quantity planned order (during
MRP run) thru use of under delivery
tolerance functionality.
Fast Data Entry: IS-Mill comes with an easy
to use feature called Fast Data Entry. It
allows effective and faster data entry of all
the items in sales / purchase / production
orders and Goods Receipt.
Batch Splitting during Goods Receipt:
Aid of data entry where most of the
material characteristics are similar.
Single Unit Batch: Batch is a generic term
in SAP which may be used for multiple
receipts as well as partial issues. Single
Unit Batch function ensures the intended
behavior to suit process industry
requirement.

Original Batch: These statistical batches

provide a lot of assistance for
characteristic inheritance and adoption
during order execution process. While
Original batch is a standard SAP feature, it
has been made more powerful in IS-Mill
especially related to inheritance during
goods receipt.
Stock Reports based on Characteristics:
IS-Mill has inventory reports based on
characteristics of a material enabling quick
and easy access for logistics team.
Process Batch: Process Batch function is
specific to IS-Mill solution which provides
functions like recording of characteristics
during production process and subsequent
transfer to inventory batches. These
batches provide a strong linkage of Issued
and Produced inventory batches during a
complex and long production process.
Customer and Vendor Info Records:
Additional info records with product
attributes may be maintained and pulled
during sales and purchase functions.
Cutting Processes: In manufacturing
process industries, there are several
cutting processes which are not so relevant
from costing and process control
perspective but they make changes to
product shape/size requiring inventory
reclassification and accurate tracking. ISMill has special transactions to handle the
processes like shearing, slitting, oiling, recoiling in a simple and efficient way.

Why ITC Infotech?

Domain Enriched Consulting Team
(To deliver client Specific needs**)
Pre-built Solutions
(IS-Mill CoE - Solution Baskets)
Industry Package (IS-Mill)
to meet mill industry-specific needs
SAP Best Practices
Baseline Package

SAP OFFERINGS

ITC INFOTECH OFFERINGS

** Business Fundamentals, Statutory Regulations, Product Mix, Global Market

ITC Infotechs Capability Framework

in SAP for Mill Products Implementation
+
5000+ SAP End Users supported globally
+
Global

SAP Engagements including Complex End-to-End

Implementations involving SAP IS Mill

+
Domain

knowledge in Mill manufacturing with Variant

Configuration, Alternative Units of Manufacturing and Selling

Experience

+
In depth experience in Global Manufacturing

Success Smiling: Select Case Studies

A Leading Steel Manufacturer with a strong foot-hold in AsiaPacific Region
An integrated transactional system for Financials and Logistics
processes: enabled thru on-line shop floor integration, Robust
Transactional Controls, Intelligent visibility on inventory, shopfloor, order fulfillment, profitability and key KPIs.

Industries

+
Project Accelerators comprising of pre-defined templates for

Project Documentation, standards and procedures for

development activities
+
Pre-Build

Interfaces, User-Exits, Conversion Routine, Report

and Smart Form

Best Practices Pre-built Users Roles, Authorization

and SoD Matrix

A global BOPP film manufacture with customer &

manufacturing foot print across globe
Re-implemented ECC 6.0 with IS-Mill functions eliminating all
customized solution in erstwhile SAP 4.7 version through
leveraging SAP Variant Configuration, most of the IS-Mill
features interfaced with Greycon X-Trim Optimizer.

+
Industry

ITC Infotech Assets

+
Governance Framework, Service Delivery RACI Matrix
+
Landscape & Transport strategy
+
Master data migration strategy
+
Authorization strategy

+
Certifications

such as CMM Level 5, ISO 9001 and BS7799

ensure mature processes

Delivery Process &

Methodology

+
Proprietary Accelerated ASAP Methodology

A global manufacturer of uncoated polyimide films with

complex manufacturing and supply chain network
Upgraded to SAP ECC 6.0 with IS-Mill to build their apical solution
along with extensive use of Variant Configuration. Key functions
implemented were Raw Material and Operational Supplies
procurement, MRP, Production Planning / Execution, Variant
Configuration for procurement, production and sales processes.
Integrated information flow across all modules was a big
improvement in decision making, logistics process control and
online accounting / costing.

About SAP Services from ITC Infotech

As a global SAP services solution provider, ITC Infotech enables better insights, streamlined operations and accelerated
returns on your investments in SAP. The companys HANA based solutions provide relevant and timely business intelligence
which drive better decision-making. ITC Infotechs model for SAP BPC (Business Planning & Consolidation) facilitates
reduction of planning, budgeting and reporting cycle times. The company offers solutions in the areas of Mobility and
Advanced Analytics. In addition to these, ITC Infotech delivers comprehensive end-to-end implementation and support
services to global customers in various industries including Manufacturing, Mills Metals & Mining, Consumer & Packaged
Goods and Retail.
For more information, please write to: contact.us@itcinfotech.com
www.itcinfotech.com