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SAP WRITE UPS FOR CEMENT INDUSTRY IMPLEMENTATION FIRST PART The finished goods: 3 different kinds of cement

t as of now, those are a) Ordinary port land cement (OPC) b) Sulphate Resistant Cement (SRC) c) Oil well Cement (OWC). Which are sold in Domestic and Exported either in 50 Kg bags, Jumbo Bags (1.5 To nne) or Loose Cement (Bulk). The finished product is stored in Cylos (capacity of 4000 tonnes each). Differen t cylos are used to store different types of cement. Cement is packed and loaded on to the trucks directly (Automated Process. No sep arate storage locations exist and there is NO godown to store the packed cement. The packing material for 50 kg bag is different for domestic (2ply) and export s ales (5 ply) Kindly suggest whether to 1) Create separate material master for each kind of cement? How do we account th e sales for these separate material masters created? 2) Packing material (Packing requirement varies for Domestic sale and Export sal es) to be brought into Sales process. ANSWER: i think you can use seperate material numbers for each cement kind (lets say opc _general, src_general, owc_general) but you store them in different cylos according to their kind, not to market you sell them. if this is the condition, 1...you need to define a material number for every cement kind for domestic and external sales, too. for example, opc_domestic and opc_external when you opened a sales order you make stock transfer from opc_general to opc_do mestic/external you can add the cost of packaging material to opc_domestic/external or 2...you can use handling unit management. when you r making delivery operations, you create handling units with different packaging material, one is two ply, one is five ply. by this way you always sale the opc_general, no need to new material creations f or sale. and you track and exactly know about every unit you sold (when it is packaged, s old to whom etc) with barcode number. the risk of these method you cannot see your package cost on the sales materials . or 3...the best and heathy way, create sales materials differently for every packaging material as addition to t he your stock materials. create bom for sales materials with the components stock material and packaging material

customize basic pp applications for your packaging and producing sales material stage create a packaging work center and a routing with this workcenter with every sales order create a production order (not make to order, in your ind ustry make to order scenario seems meaningles) before good issue for delivery, make good receipt of sales material and good iss ue of stock&packaging materials ________ 1... create packaging materials (for example package1=two ply, package2=5 ply, p ackage3=jumbo) with purchasing view 2...create sales materials with all S&D view and, mrp, work scheduling and with others what it is requires 3...create bom for every sales material with t code cs01 for example opc-domestic choose plant, bom usage=1, validity should be better if it is past time add your stock material (opc-general) and packaging material (package1) as compo nents enter their quantity 50 for opc-general, 1 for package1 save it. 4. create work center for packaging operation with cr01 tcode enter plant enter a name for workcenter (package) choose a workcenter category (machine will be fine) in basic data choose SAP0 as standard val?e key (cause this dummy workcenter, we dont use pp effectively) in default values choose PP01 as control key in capacities tab choose machine capacity and fiil the required data in scheduling choose machine in cost center tab enter a dummy cost center which no activities assigned fill the technical data tab and save 5.create routing for your all sales material with tcode ca01 im using opc-domestic enter material, plant in the header, choose usage=1, status=4, from lot size=1, press routing press operations enter your dummy workcenter, control key=001, standard text key=P000001, and save 6.when you create a sales order go to co01 and create a production order with the sales order quantity and material according to your customizing you may see some errors, but if you search the net , you can find their solutions 7. before your delivery, go migo tcode choose good receipt+order check your receipt quantity and save. 8. go co03 and take your reservation number (you can find it in assignment tab) go migo and choose good issue+order, enter your order number press enter check your quantity and save 8. complete your sales operation. not: i wrote the steps you should follow, because i think that you should have s tandart pp customizing in your client if the system wont let you to do any of the above steps, dont worry, these are n ot complex part of pp, you can handle them if you look into customizing for pp, you can find ways to make easier these oper ations.

SECOND PART In todays world there are lots of industry which going for ERP solution . Among them cement industry is one of the biggest sector. Here i will discuss my real l ife implementation experience for SAP in cement factory at Meghna cement Banglad esh. Challenges at Cement Factory for implementation of SAP 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 plan t)