Best Practices for

Mill Products and Mining

Making it Easy to Implement
ERP
SAP AG
 Content Overview

What is “SAP Best Practices“

SAP Best Practices for Fabricated Metals

SAP Best Practices for Flat Steel

SAP Best Practices for Mining

 SAP AG 2006, TW 2
 SAP Best Practices: Reduce Cost, Time and Risk

• SAP Best Practices are Cost

the sound foundation Pragmatic
methodology
for prepacked ready-to-
use business solutions
SAP
• SAP Best Practices Best Practices
cover well-proven Extensive Proven
documentation preconfiguration
business scenarios
that help to exploit the Time Risk
potentials of mySAP
ERP Time/Cost/Risk Saving Tools

SAP Best Practices Installation Assistant
• Flexible building block
SAP Best Practices Personalization Assistant
technology enables
you to implement and
extended Computer Aided Test Tools
(eCATTs)
adapt your solution in a
very flexible way
Business Configuration Sets (BC sets)

 SAP AG 2006, TW 3
 Product Description: What is “SAP Best Practices“

“SAP Best Practices“ is the brand name for preconfigured

SAP solutions. An SAP Best Practices package contains:
 A step-by-step implementation procedure
 Documentation:
A. Technical documentation (e.g. how to set up the system) and
B. Business documentation that describe the business content of the
preconfigured solution
 Bundle of preconfiguration settings that speed up the installation
process

Three different kinds of SAP Best Practices packages:

 Industry packages are designed to meet industry-specific needs, for
example SAP Best Practices for High Tech
 SAP Best Practices Baseline Package: Can be used in all areas where
an industry package is not available. It comprises generic busin.
scenarios
 SAP Best Practices cross-industry packages provide predefined
business scenarios that focus on the areas of CRM, SCM, EP, and BI

 SAP AG 2006, TW 4
 SAP Best Practices
Traditional project
Enable fast and
Working easy implementa-
prototype
tion of mySAP Business Suite
With SAP
Best Practices Demonstration of a solution that
is easy to:
 identify with
 implement
 adapt to specific
requirements

Get a living and fully documented

prototype within days that you
can rapidly turn into a productive
solution
Time and effort savings

Identification and anticipation of reusable business processes

and project activities

 SAP AG 2006, TW 5
 Building Block Principle

An SAP Best Practices package is not a monolithic

block but structured in Building Blocks.

Building Blocks…
 are the technical methodology for the
SAP Best Practices development and
delivery Layer 1
Scenario-Building Blocks
 provide SAP Best Practices users with
small, flexible, and transparent pieces
of functionality (Building Blocks), for
example a specific scenario that can be
implemented like an add-on to an Layer 1
existing solution Building Blocks
 foster inter-operability and reusability
by providing the necessary guidelines
and tools to enable content developers Layer 0
to create Building Blocks that follow a Building Blocks
common structure

 SAP AG 2006, TW 6
 Benefits of SAP Best Practices

Save time and money

and achieve predicted results
Less risks
avoid common e-Business beginners‘ mistakes
Empowerment
through competitive business expertise
Fast track
to extending your business solution with new business processes
No trial runs
start straight off with a fully documented prototype that is fully reusable

Failure is not an option!

it works: what you see is what you get for implementation

Communication
among project team members and executives becomes more effective

Business platform for partners

evaluation, joint development, own development

Consistent approach
focusing on integrated end-to-end business processes

 SAP AG 2006, TW 7
 Content Overview

What is “SAP Best Practices“

SAP Best Practices for Fabricated Metals

SAP Best Practices for Flat Steel

SAP Best Practices for Mining

 SAP AG 2006, TW 8
 What's New: New Business Scenarios in V1.600 – 1

What is the content development focus in this release?

Scenarios upgraded from SAP Best Practices for
Fabricated Metals US V1.50
 Sales from Stock w/ Simple Job Processing
Updated
 Sales from Stock, Job Proc. w/ Manufacturing Order
 Third Party Procurement with Shipping Notification
 Bought In Material (MTO)
 Inter-Company Stock Transfer
 Toll Processing/Subcontracting
 Forecast of Semi-Finished Goods
 MTS Production with Scheduling Agreement
 Internet Sales (R/3 Edition) - B2B for Fabricated Metals

 SAP AG 2006, TW 9
 What's New: New Business Scenarios in V1.600 – 2

What is the content development focus in this release?

Scenarios upgraded from SAP Best Practices for
Fabricated Metals DE V1.47
 Procurement - External Supplier / Contract
Updated
 Third Party Processing Without Shipping Notification
 Production - Shop Floor Control

DIMP scenarios
 Fast Entry in Order Processing
 Order Combination
 Non Ferrous Metal Processing

 SAP AG 2006, TW 10
 What's New: New Business Scenarios in V1.600 – 3

What is the content development focus in this release?

New scenarios
 Flexible Planning in R/3 with MTS for Bulk product (incl.
Sales from stock)
New  Repetitive Manufacturing
 Claims and Returns
 Third party – cross-company
 GuiXT

 SAP AG 2006, TW 11
 Content Overview

What is “SAP Best Practices“

SAP Best Practices for Fabricated Metals

SAP Best Practices for Flat Steel

SAP Best Practices for Mining

 SAP AG 2006, TW 12
 Mill Products Solution Map 2006 - Primary Metals
Suppliers & Product Design Marketing & Sales Planning Procurement Order Management Manufacturing Distribution Customers &
Partners Channels
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
SAP Best Practice for Flat Steel 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
Enterprise Management & Support
Analytics
Financials
Human Capital Management
Corporate Services
Operations Support

 SAP AG 2006, TW 13
 Scope

IN scope
 Product: Flat Products (Slabs, Plates, Coils, Sheets etc)
 Production Processes: steel making - continuous casting- hot rolling-
cold rolling - finishing
 Functional modules:
 mySAP ERP(DIMP): SD,MM,PP,QM,FI,CO
 mySAP SCM: DP,SNP,GATP, PP/DS

 Special business process:

 Inter-company business is involved because more than one companies in
production processes
 Standard SAP BP deliverables i.e. develop the solution based on China
Baseline solution

OUT of scope
 Product: Long Products (eg bar, wire, tube, section steel etc).
 Production Processes: Iron making, Tube mill etc.
 Special business processes:
 Legal Consolidation is not covered.

 SAP AG 2006, TW 14
 System Architecture

SAP SCM Planning

PSI ALS
Network
Level
Industry specific
scheduling/ optimization SAP
SAP Manufacturing
Manufacturing Planning
Planning

SAP ERP
Operations
PSI PES Network
Level
SAP
SAP
Production
Production Execution
Execution Manufacturing
Manufacturing
System
System Execution
Execution

SAP NetWeaver/Standard Interfaces

Process Control Process Control

Automation
Process
Process Control
Control Factory
Factory Data
Data Capture
Capture Network
Level
Progr. Logic Contr. Micro Processor

Equipment
Equipment Control
Control Systems
Systems
 SAP AG 2006, TW 15
 SAP Best Practices for Flat Steel – Scenario Overview

Scenarios
 Demand Planning and Product Allocation
 Customer Order Oriented Sales Process
 Production Planning for
 Steel Mill
 Hot Rolling Mill
 Cold Rolling Mill
 Finishing Mill
 Rescheduling across Mills
 Production Execution for Steel Mill, Hot Rolling Mill, Cold Rolling Mill
 Reactive Planning
 Product Costing

 SAP AG 2006, TW 16
 SAP Best Practices for Flat Steel

SAP Best Practices for Flat Steel

 Based on ERP 2004 with ECC DIMP 5.0 and SCM 4.1
 Localized for China
 Localization ongoing for Japan
 Delivery end of July 2005
 „Best Practices“ defined even with input from partners

 SAP AG 2006, TW 17
 Content Overview

What is “SAP Best Practices“

SAP Best Practices for Fabricated Metals

SAP Best Practices for Flat Steel

SAP Best Practices for Mining

 SAP AG 2006, TW 18
 Mining Best Practice AU V1.600

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

Industry independent Scenarios

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

New Scenarios in the following Major improvements

Solution areas
EH&S – Occupational Health,
Industry Hygiene and Safety
Maintenance Cost Budgeting
Rotables management
Supply Chain Planning in
mySAP SCM
Apply most current ERP 2005
processes & technology
Improved design in Contract to
Invoice scenarios
Streamlined End to end RLM
scenario
Cost center, equipment and
product cost planning & actuals

 Planned Delivery: 2nd Quarter 2007

 SAP AG 2006, TW 19
 Planned Scope of the next Mining Best Practices

Mining Sales &

Stockpile Processing Stockpile Transport Stockpile
Production Shipping

Sales Forecasting
20 years

18 months X41 X42 Integrated Supply Chain Planning

Month/week

Detailed Detailed
Daily Rail & Shipping Schedule
Mine Processing
Schedule X60 X61 X62
Schedule
X53

X50 Production Production X57 Rail & Shipping Execution

Maintenance X70 X71 Maintenance
Daily & Shift Procurement X72 Procurement Stockpiling X54 X55 Sales
Execution X56 X51 Costing X73 Costing Quality
Quality Quality

 2 End to End Value Chain Scenarios for Coal Mining and Metal Mining
 Maintenance & Procurement, RLM, EH&S X80 X81 X82 X83

 SAP AG 2006, TW 20
 Mining
MiningBest
Best
Mining Best Practice AU V1.600 Practice
Practice AUV1.600
AU V1.600
Scenario
Scenario Description
Name
X41 DEMAND_SUPPLY_PLANNING COAL (MINE_TO_PORT)
X42 DEMAND_SUPPLY_PLANNING COPPER (MINE_TO_PORT)
X50 BULK_ROM_PRODUCTION_&_CRUSHING
X51 BULK_ROM_PRODUCTION_COSTING
X53 RAIL_ROAD_DISTRIBUTION_BULK
X54 STOCKPILE_BLENDING
X55 STOCKPILE_BLENDING_UNPLANNED
X56 COPPER_ROM_PRODUCT_COST_PLANNING
X57 METAL_PRODUCTION
X60 CONTRACT_TO_INVOICE_BULK_FOB
X61 CONTRACT_TO_INVOICE_BULK_DES
X62 CONTRACT_TO_INVOICE_METAL
X70 PREVENTIVE MAINTENANCE
X71 CORRECTIVE MAINTENANCE
X72 REFURBISHMENT PROCESSING
X73 MAINTENANCE COST BUDGETING
X80 SUPPLY_TO_REMOTE_LOCATION
X81 RETURNS_FROM_REMOTE_LOCATION
X82 RENTALS_MANAGEMENT_REMOTE_LOCATIONS
X83 TIMED_DELIVERY_TO_REMOTE_LOCATIONS
X90
 SAP AG 2006, TW 21 EHS_RISK_ASSESSMENT_INCIDENT_MANAGEMENT