Sap in Cement Industry

Click to edit Master title style
Putting Wisdom to work

SAP in Cement Industry
6/17/2014
Cement Industry Process
6/17/2014
|
Cement is a fine powder which sets after a few hours when
mixed with water, and then hardens in a few days into a solid,
strong material.
Cement is a hydraulic binder, i.e. it hardens when water is
added.
There are 27 types of common cement which can be grouped
into 5 general categories and 3 strength classes namely :
Ordinary,
High
Very high.
In addition, some special cements exist like sulphate resisting
cement, low heat cement and calcium aluminate cement.
What Is Cement?
6/17/2014 3
|
Below are six major processes followed from raw
material procurement to delivery which are performed at
cement Industry :
Cement - Making Processes
6/17/2014 4
Raw Material Extraction
Raw Material Preparation
Raw meal preparation
Clinker Production
Cement Grinding
Packing & Shipping
|
Raw Material Extraction
Mining for uncrushable limestone
Raw Material Preparation
Crushing the uncrushed limestone
Raw meal preparation
Additive like clay & sand are added to crushed limestone
Clinker Production
Raw meal is heated in kiln and get the clinker, small rock or pebble
like substances.
Cement Grinding
Clinker along with gypsum is grinded to make cement.
Packing & Shipping
Cement is either packed in 50 kg bags or in jumbo boxes or in trucks
or ships as per facility in factor.
Processes overview
6/17/2014 5
| 6/17/2014 6
Cement Industry Workflow
Applying SAP in cement Industry
6/17/2014
|
In Cement Industry
Sales
Supply chain
Demand Planning
Supply network
planning
Shipping &Transport
Management
Global availability check
Manufacturing
integration
Production
planning
Quality
management
Strategic & operational
procurement Financials
Performance
Management
Enterprise asset
management
Maintenance
Cost budgeting
Project System
Environment Health &
Safety solution
Emissions Management
Human Resources
Inventory Management
|
Optimized organization & process landscape
6/17/2014 9 Reference : SAP
|
Solution for cement industry
6/17/2014 10
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
|
Solution map
6/17/2014 11
Reference : SAP
Reference
SAP
|
Application solution Architecture
6/17/2014 12
Reference : SAP
|
Customer service : Sales order management
6/17/2014 13
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.
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.
|
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
Automatic credit management
Checks available production capacity of plants
Checks availability of transport vehicles
Incoming orders automatically distributed to plants

Business benefits
Less personnel required
Can operate 24 hours per day, if necessary
Improved accuracy of order information
Reduced transport cost
SAP Sales Order Entry via a Call Center
6/17/2014 14
|
Supply Chain : Demand & supply planning
6/17/2014 15
Consolidated, synchronized 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.
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.

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.

|
Structure Demand Information by freely definable characteristics customer, Product,
Sales Office, Region, Location, etc.

Display Demand Information by freely definable Key figures: Last years Sales,
Committed Contract Volume, Marketers Forecast, Customer Forecast, etc.

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
Functions of demand Planning
6/17/2014 16
|
Anticipation
of Future
Demand
Planners Knowledge
Task-specific planning tools
> Flexible views
> Graphics
> Promotional planning
> Life cycle management
> Accuracy reporting
Collaborative forecasts
> Order & shipment actuals
& history
> Cost
> POS data
> Nielsen / IRI data
> etc.
Statistical Methods
Multi-model approach
> Average models
> Exponential smoothing
> Causal factors
> Trend dampening
> Model combination
> Pick best
Demand Planning
6/17/2014 17
|
Solution overview
|
Cost minimization - Profit maximization
Supply Network Planning optimization
6/17/2014 19
Forecast Sales
Order
Flexible Constraint Definition
Capacities
Material availability
Market constraints
Costs of opportunity
Sourcing
Product mix
Production &
procurement plan
Inventory
strategies
|
Optimization profile
6/17/2014 20
Selection of most suitable
production plant
Optimization of production
costs, transportation costs,
and storage costs
Mixed integer linear
programming / meta-
heuristics
Feasible plans
|
Shipping & Transportation management
|
Transportation planning & Execution capabilities
|
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
6/17/2014 23
|
Manufacturing : Seamless Integration
|
Production planning
|
Operational compliance : Quality Management
6/17/2014 26
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.
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.
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 & auditability of
information & actions across the supply chain.
|
Sourcing & Procurement
Strategic & Operational procurement
6/17/2014 27
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.
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.

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.
|
Financials
6/17/2014 28
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.
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.

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.
|
Financial management
|
All SAP applications are completely integrated into
accounting
|
Cost accounting
|
Cost accounting Cost Center
|
Process flow for cement plant
6/17/2014 33
Reference : SAP
|
Ease of further evolution
|
Analytics and operations support
6/17/2014 35
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.
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.

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.
|
Performance Management Sample Indicators
6/17/2014 36
Reference : SAP
|
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
SAP Quality management Quality control
6/17/2014 37
|
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)
Quality Inspections
6/17/2014 38
|
Enterprise asset management
|
EAM : Functional scope
|
Facility & Asset management
|
Plant maintenance (PM) in SAP ERP on
basis of EAM
|
History Based Budgeting
Ad hoc Budgeting
Simulation
Location Based
Equipment Based
Tasks Based
Maintenance Cost budgeting
6/17/2014 43
|
Mobile asset management Functional overview
|
Project Systems
6/17/2014 45
Reference : SAP
|

SAP EH&S offers comprehensive and complete business
solution for environment, health and safety management!

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 Environment Health & Safety solution
6/17/2014 46
|
SAP EH&S occupational health
Medical service data
6/17/2014 47
Reference : SAP
|
SAP Emission management - Capabilities
|
SAP Emission management
|
In Cement Industry
Sales
Supply chain
Demand Planning
Supply network
planning
Shipping &Transport
Management
Manufacturing
integration
Production
planning
Quality
management
Strategic & operational
procurement Financials
Performance
Management
Enterprise asset
management
Maintenance
Cost budgeting
Project System
Environment Health &
Safety solution
Emissions Management
Human Resources
Inventory Management
Thank You
6/17/2014

Sap in Cement Industry

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Sap in Cement Industry

Transféré par

Droits d'auteur :

Formats disponibles

Click to edit Master title style

Putting Wisdom to work

Vous aimerez peut-être aussi