PTS Module

NirmITee
(MAHAGENCO SAP–ERP)
 Introduction

ERP
E: Enterprise
R: Resource
P: Planning
SAP
S: System
A: Applications
P: Products
……………………..in data Processing
 Project NirmITee’s Vision & Objectives
Vision
Implement an integrated ERP system that brings IT culture, automates & integrates business
processes, embeds transaction processing controls and provides appropriate reports to
facilitate decision making and smooth functioning of MSPGCL operations

Objectives

Improve Operational Efficiencies Build performance accountability

Information availability Process Improvements Integrate systems for better data management

Reduce Working Capital Streamline accounts functionalities

Optimize Inventory of fuel, spares, consumables Better cash flow mgmt Profit centre accounting

Improve plant availability & Equipment Utilization Ensure career grooming & job enrichment

Streamlined maintenance management Ensure IT system readiness for future competition

3
 Journey So Far

• SAP Org Structure • Business Blueprint

• BBP Validation by
Finalized • BBP Validation by Ready
L&T InfoTech • Realization Phase • Power user training &
• Preparation of Business Process
Experts, KPMG and Commenced User Acceptance Testing
Global Template SAP Owners
Commenced
• Workshops for Validations 10/12/2010 25/07/2011
01/11/2010
with Subject Matter Experts 01/10/2010
for the current business 01/09/2010
process

04010
1/0280/2
0Y
J UL

01/07
/20 10 25/06/2010
01/06/2010

• Core Team SAP Training
• Project Preparation phase Completed
• Business Blueprint Phase Commenced
• Detailed Process Study and
Validations
• Project Kick off
• Module Leads On boarded
• AS IS Process Listing Started
4
 NirmITee Core Team

Sr. No. Modules of SAP Departments of Mahagenco

Procure To Pay
1 Purchase and Stores
(PTP)
Enterprise Asset Management
2 Maintenance
(EAM)
Plan To Supply
3 (PTS) Operation
Energy Data Management (EDM)
Fuel Management Process
Fuel Management
4 (FMP)
FICO
5 Accounts and Finance
(Finance & Control)
6 DATA IT

5
 NirmITee Core Team

Sr. No. Modules of SAP Departments of Mahagenco

Recruit To Retire
7 Human Resources
(RTR)

8 Environment, Health & Safety (EHS) Environment, Health & Safety

9 Project Monitoring & Control (PMC) Projects

10 Order To Cash (OTC) RCD, Efficiency/ Technical

Quality Assurance & Control
11 Field Quality Assurance Department
QAC

12 BASIS IT

6
 Current Process Study Approach

Process Area – Business Scenario

Process Flow

Output
Process Plan Document
Trigger
Execute Process
Output
Process Input Monitor
Reports
Control

Process Process
Pain Area Roles Complexity Integration

Legacy Systems Data Management

7
 AS IS - TO BE Transformation

Enrichment
Simplification
Elimination

New
Processes

Process Based
Approach

AS IS8- TO BE List
 TO BE Process Benefits

Cost Reduction • Consolidation of Purchasing Requirements leading to efficient Procurement

• Improved maintenance practices leading to better Availability factor
• Tracking of Rework efforts in Maintenance Activities
• Optimum utilization of working capital with decrease in interest
• Controlling of non sequential supply by linking material to activity
• Reduction in stationery expenditure across all departments

Effort Reduction • Less efforts in tracking of Coal Company wise Materialization and Easy matching of Missing
and Unconnected wagons
• Reduction in Procurement Cycle Time
• Reduction in cycle time for filling a vacancy and Payroll Process
• Better Employee succession planning by maintaining skill matrix
• On-Time Fulfilment of Legal & Statutory reporting requirement e.g. MERC, CEA etc
• Simulation of requirement planning of Fuel for different scenarios
• Snapshot of the project integrated with multiple contractor’s schedule
9
 TO BE Process Benefits contd..

Process • Effective Preventive Maintenance planning leading to Asset life optimization

Improvement
• Availability of unit wise profitability

• Better employee satisfaction level due to transparency

• Effective root cause analysis to eliminate repetitive failures

• Effective budgetary control through system and Centralized payment is

possible
Process
Standardization • Uniformity in Procurement processes across power stations
• Uniformity in Inventory processes across power stations
• Asset capitalization and depreciation calculation
• Standardized of Project Template across Mahagenco

10
 TO BE Process Benefits contd..
• Online Inventory Report and Automatic Reports on Non-Moving/Slow-Moving
Items
• Ease of reporting for fuel procurement and consumption
Data Driven
Management
Information
system
• Availability of Budget consumed Vs. budget allocated
• Easy Availability of schedule variances & cost variances and Availability of
Project historical data
• Availability of data and analysis on plant performance parameters
• Effective vendor selection based on Quality Performance

• Online Availability of data employee personal information

• Availability of Breakdown preventive and corrective maintenance cost with
Mean Time Between Failure and Mean Time To Repairs
• Linkage of asset accounting with plant maintenance for capital purchases and
Complete traceability of individual machine Location
11
 SAP Modules
Procure to Pay Process (PTP or Purchase)
Project Monitoring & Control (PM or Projects)
Enterprise Asset Management (EAM or Maintenance )
Plan to Supply (PTS or Operations)
Energy Data Management (EDM )
Human Capital Management (HR)
Order to Cash (OTC or Sales )
Finance & Costing ( FICO )
 Procure to Pay Process Flow
User
UserSection Competent Stores Finance
Section Procurement/
Procurement/CPA
CPA/ /APS
APS CompetentAuthority
Authority Stores Finance

CPA Consolidation (if Admin Approval (if Procurement Budget

Start Required) required) Check (auto)
PR Release
Strategy/Approvals
Plant Maintenance
Requirements Goods Receipt / Service Vendor Liability created
Entry in Accounts Payable
Consumption Based
Planning Quality Inspection
Invoice Posting
PO Release Strategy /
Capital requirement
approvals Goods Issue to User
FI Posting and Settlement
All other Sections /
Department E-Tendering Interface /
requirements Manual
Inter-Plant Stock
Vendor Payments
Transport Order
Process Quotations
Physical Inventory
FI Posting
Purchase Requisitions Verification and
Material & or Service Create Purchase Order / (For Section Stores and Major Settlement
Stores)
Contracts
Theft Cases
Create Imprest Cash
Purchase Order
Gate Pass

Internal Section
Transfer Within Plant

Key Movements

13
End
 Process Integration in SAP –
Project Monitoring & Control
Project EPC
Planning
Planning(P&P
(P&P++Civil)
Civil) ProjectProcurement
Procurement Project
ProjectSite
SiteOffice
Office Project
ProjectAccounts
Accounts
EPC
( (P&P Contractor
P&P) ) Contractor

Start

Initiate Project Prepare L1 BBU

Create Contract

Create Project
Structure

Set Budget for Main Prepare Erection

Approval of L1 BBU Activities schedule in
Package
MSP

Create Purchase Order Receive Materials &

Integrate MSP Payment to Vendor
based on BBU Quality check
Schedule in SAP and
Simulate Prepare Billing Break
Up (Material &
Confirm Activities
Service)
Create Base line
Version Create Service Entry
sheet & Approval

Release Project
Complete Closing pre
requisite

Assign Material to Handover to

Erection activities O &M

End
 Enterprise Asset Management
Process Flow
Maintenance
MaintenancePlanning
Planning Quality Maintenance Finance
Finance&&Accounts Procurement
Procurement&&Stores
Dept.
Dept.( (MPD
MPD) ) Quality( (FQAD
FQAD) ) Maintenance Accounts Stores

Start

Master DATA:
Asset
Equipment Master /
Capitalization for
Measurement Points /
Capital
Bill of Material / Location
Equipments
/strategy /Task list / Planning
External service
Requirement
Breakdown/Preventive/
Corrective/Predictive/
Calibration/Overhaul (OH)

Notification
AOH \ COH Budget Check
Project Planning Maintenance Order
and Monitoring

yes
Material available ?
WCM Approval
Permits No
Create Purchase Requisition

Maintenance Execution Justification / Budgetary

Time Confirmation & Approvals
Material /Service Posting

Procurement Cycle
with Budgetary
Work Inspection/ Result
Technical Completion Accounts Payable Control
Recording

End Business Completion

 Plan to Supply Process Flow
Procurement
Procurement&&stores Head POG Operations Finance
Financeand
andAccounts
stores HeadOffice
Office POG Operations Accounts

Start

Define Bill of Materials Work

Centers, Routing of Power

Annual Generation Planning

– Unit wise

Carry out
Aggregate Generation and Annual Requirement of
Procurement
Requirement Plan Materials for Production
Activities

Monthly Demand planning

for Generation and Material Daily Power Generation Product Costing
Requirement

Event Recording

Daily Consumption of
Inventory
Materials and Enter Activity Accounting Entries
Management
Details

Report Generation

End
 Order To Cash Process Flow
Thermal
ThermalPower
Power
Human
HumanResources
Resources Coal
CoalOffice
Office RCD
RCD All
AllPower
PowerStations
Stations Stations
Stations

Start

Create Service Order for Create Service Order for Create Sales Order for
Oil Testing/ Sampling Create Sales Order for Create Sales Order for
Deputation / Training Mill Reject/Sale of Ash
Energy Billing Scrap Material
Service

Create Order for

Confirm Sent out
FAC and PLF Confirm Quantity Confirm Quantity
Create Billing Document Create Billing Document Energy Units
incentive

Consolidated
Energy Details Create Billing
Create Billing Document
Document

Create Billing
Document

End

Finance
Financeand
andAccounts
Accounts
 Posting to Finalization and Plan to Control-
Structure

General
Ledger

Period End Profit Centre

Accounts Overhead Cost
Activities Accounting
GL
GL Payable Management

Asset PE
PE AP
AP Accounts PA OCM
Management Receivable C
C
AM
AM
FI
FI AR
AR O
O
CB BB
PC
CB

Cash and Bank Budgeting

FF
Management
Product Costing
Financing
 Posting to Finalization – Process Chart

Budgeting
Budgeting&& Accounts
Accounts Cash
Cashand
andBank
Bank Period
PeriodEnd
End
General
GeneralLedger
Ledger Accounts
AccountsPayable
Payable Asset
AssetManagement
Management
Finance
Finance Receivable
Receivable Management
Management Activities
Activities

Recurring Entries
O&M Budgeting Capital Budgeting
Automatic Clearing
Inter Unit Trns Annual Budgeting Billing Procurement process Asset procurement
Bank Posting Accrual Entries
GL Posting Project Funding Receipts Invoice posting Invoice posting
Cash Posting Open Item Valuation
Profit center planning WC Mgmt. Special GL Trns Special GL Trns Sale / transfer /
Bank Reconciliation Rectification of Errors
GL based reporting Period End closing Vendor Payments Scraping
Reports
Period End Closing Period End process
Period Close

OTC – Order to Cash – Regulatory and Commercial Cell

EAM- Enterprise Asset Management – Plant Maintenance
PTP- Procure to Pay – Procurement and Stores
FMP – Fuel Management Process – Fuel Management Cell and Coal Office
RTR – Recruit to Retire – Human Resource Management
PMC – Project Monitoring and control – Projects & Planning
PTS – Plan to Supply - Operations

OTC EAM PTP FMP RTR PMC PTS

 Plan to Control – Process Chart

Profit
ProfitCentre
CentreAccounting
Accounting Overhead
OverheadCost
CostManagement
Management Product
ProductCosting
Costing

Standard Hierarchy Master Data

Standard Hierarchy Master Data
Budgeting / Planning
Budgeting / Planning
Actual Postings Generation of Product Cost Reports
Actual Postings
Period End Activities
Period End Activities

OTC – Order to Cash – Regulatory and Commercial Cell

EAM- Enterprise Asset Management – Plant Maintenance
PTP- Procure to Pay – Procurement and Stores
FMP – Fuel Management Process – Fuel Management Cell and Coal Office
RTR – Recruit to Retire – Human Resource Management
PMC – Project Monitoring and control – Projects & Planning
PTS – Plan to Supply – Operations
PTF – Posting to Finalization - Finance

OTC EAM PTP FMP RTR PMC PTS PTF

 Environment, Health & Safety Process Flow
MSDS
MSDSMgmt.
Mgmt. Accident
AccidentIncident
IncidentMgmt.
Mgmt. Occupational
OccupationalHealth
Health Compliance
ComplianceMgmt.
Mgmt.

Start

Person specific data for

Receipt of Hazardous Registration of Measure Environmental
Employee’ medical
Material Accident/Incident parameters
treatment

Maintain Hazardous Planning & Scheduling

Conduct RCA & Safety medical check-up Evaluate the Results
material Specification
Measures

Assign EHS
specification to Conduct actual
Notification to Corrective actions
Material Master Medical Check-up
Maintenance

Maintain MSDS for Diagnosis,

Hazardous Material Vaccination , Report Generation
Closure of accident Consultation

Separate Inventory Maintain Medical Final Submission of

Mgmt. for Hazardous Report Generation &
record & History report
Material Submission

End
 Fuel Management
Process Flow
Coal
CoalOffice
Office&&Head
HeadOffice Stores Operations
Operations&&POG Chemist
Office Finance
Finance Stores&&CHP
CHP POG Chemist

Start

Aggregate Annual Requirement

Requirement Calculation Record FOIS Details on Calculation
Receipt

Inspection of Goods (Coal

Creation of Contracts and Unloading of Goods
& FO)
Supporting Contracts
Capture Actual Unloading
Results & Compare with
Approval of Contracts FOIS Check Grade Slippage

Check Rake Diversion

Monthly Linkages

Identify Missing, Un
Create PR on monthly basis Connected, & Sick Wagons

Prepare PO based on PR Create GR for Goods

Advance Payment to Receipt and capture Transit
Vendors (for Coal) loss
Approval of PO
Goods Issue &
Reconciliation of Rake Execute Transaction if any Record
Post Invoice
Diversions material Conversion Consumption
against Generation

Processing of Payment
Lodge Claims

End
 Quality Assurance and
Control Process Flow
Projects
Projects/ /Procurement
Procurement&&
Projects Quality Fuel
FuelManagement Chemist
Chemist/ /Quality
Quality
Projects/Plant
/PlantMaintenance
Maintenance Quality stores
stores
Management

Start

Maintain Inspection
Plan for Materials and Receive Goods Unload Fuel
Services

Execute Inspection &

Record Results
Prepare GR Execute Inspection &
yes Note Record Results
Usage Decisions

No Receive Loading End

Results
Post to block Stock

Identify Grade / Quality

Create Notification Replacement / Repair Slippage

Notification Creation
for Services Post to un-restricted Lodge Claims
Prepare GR Note
Stock

Work Inspection and

Execute Job Notification
Completion

No yes

Initiate Technical
Rework Completion

End
 Recruit to retire Process
Personnel
Flow
Recruitment Personnel Time Portal
PortalServices Payroll Finance
Recruitment Administration TimeOffice
Office Services Payroll Finance
Administration

Start

Vacancy Planning – Budget

Applicants
Internal / direct / Administration
Administration
Promotion
Salary Processing

Roster Management New Hiring Time Administration Payroll Posting

to Accounting

Shift Planning
Seniority
Maintenance
Third Party
Payments
Leave Management
E- Services
Deputation / Transfer Claims/
Promotion Reimbursements/
Leave
Encashment
Performance
Appraisal and
Training

Retirement /
Resignation /
Termination E Services for
Employee
Management

End
 Users

• End Users (Role wise access)

• Power Users

• Help Desk

• Core Team
• Cost Estimate is run by Finance Section before MM
period opening activity.
• MM Period & its impact
• Roles & Authorization
• Organization Structure (Company Code, Plant, Storage
Location)
• PTS Master Data- MM, BOM, Rate Routing, Work
Center, Production Version
 What if data entry is delayed
• Data entry should be done on time/Real Time
• On 5th of every Month Previous month gets Closed at
@10:00 AM, Once MM period is closed, we can’t post
pending data.
• We can open previous month by sending request mail
to HO-Finance.
• But if you follow discipline , we will not require to
open previous month MM Period

27
 Organization Structure and Master Data

Company Code MG01

Chandrapur Bhusaval T001

T002 Koyna H001 Uran ∑ Plant N
G001

Storage location
Work centers for unit1 Work center for all units

Coal yard
Boiler BO01 DM Water plant

Turbine TR01
CHP Fuel oil storage

Generator GE01 PTP

Ash storage

SW Plant
Finished goods – virtual
storage
 Organization Structure and Master Data

1. Material master : A material master is used to define the properties of finished and semi finished products in

SAP(e.g. Power1, crushed coal )

2. Bill of material : A bill of material describes the components that are required to makes a product (e.g. BOM

of power will have coal , oil , dm water, soften water)

3. Work center : A work centre is a location where an operation or activity is carried out within a plant. (e.g.

Boiler, turbine, generator of unit)

4. Routing : The routing describes the sequence of operations in production (eg. Machine , labor time)

5. Production version : The production version defines the various techniques that can be used to produce a

material
Generation Planning for Year / Month

Daily Declare Capacity / Schedule

Generation

Daily Generation/Activity Data Posting ,

Service Hours , Dam Level , Water
Utilization, Tripping Entry
 Important Tcodes

MD61,MD62,MD63
MFBF,MMBE,MB5B,MB51
 MFBF
Assembly Backflushing

Component Backflushing
Activity Backflushing
Goods withdrawal /Consumption
Booking
Movement Types
131,132,201,202,251,252
 Reversal of Documents

For Power Posting Correction

• ZMBST
• ZMF41

For Activity Posting Correction

• MF12

34
 Measuring Points
• DAM
• LIVE_STORAGE
• PROB_GEN
• RAINFALL
• Water Discharge
• IK11
• IK12
• IK13
• IK34 35
 Thank You

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