Scenario Overview: ETO - Quot. Proc.

with BOM PS Interface & Machine History

and deadlines. costs. Both complexity and uniqueness characterize the product. A project therefore processes a customer order. Start-up and Warranty ¥ SAP AG 2005 . The products require large order-specific project and engineering services that carry considerable risk for technical solutions. such as the construction of a plant. The following features characterize engineer-to-order activities: Extensive quotation phase (over several months) Order-Specific Engineering Services Complex and Dynamic Product Structures Internal and External Procurement Complex Information and Communication Structure Long Lead-Times Calculation and Cost Control Milestone Billing Assembly.Engineer-to-Order (ETO): Environment Engineer-to-order (ETO) activities involve customer-specific manufacturing of a product.

Order probability is not very high . results analysis and costing Complex and dynamic product structures Risk analysis technical and commercial evaluation is necessary Order-specific engineering services Engineering Change Management/Claim Management Make or Buy decisions have to be made Long lead-times procurement Contractual negotiations have to be documented Installation and Assembly on site Joint Ventures are necessary ¥ SAP AG 2005 .Very expensive unique products Milestone billing Billing.Engineer-to-Order (ETO): Environment .Very extensive order processing phase (over several years) .

Proc.BOM-PS transfer . with BOM PS Interface & Machine History . with BOM PS Interface & Machine History Industrial Machinery & Components 4 Machinery and Equipment Value Chain E83 O v e r v i e w Content e n t Summary C o n t  ETO .Project costing . .Project creation with network .1st quotation creation .Quotation price definition .Project version copying .Quot.Advance procurement requesting .2nd quotation creation .Project cost updating .Quot.BOM-PS updating . Proc.Quot.Customer inquiry receipt .BOM PS Interface & Machine History ETO .Records management linking with project ¥ SAP AG 2005 .ETO .

Organizational Structure ² SAP Best Practices Manufacturer Operating Concern Controlling Area 1000 1000 Company Code Plant Country City Sales Org. Distribution Channel Division 01 01 02 03 04 05 ¥ SAP AG 2005 1000 1000 1100 1000 10 01 02 03 04 05 1100 30 01 02 03 04 05 20 02 01 10 01 01 02 03 20 02 03 04 05 30 01 02 03 04 05 02 04 05 .

Here. BOM-PS transferring again to update the project with the new result of the variant configuration in 2nd quotation. Release the long-lead time procurement activity. Create project by copying the existing template for robot route. Adapt the variant configuration. Project costing for both the activities and components inside. Next step is the creation of a customer order as a copy of the accepted quotation. and other business characteristics. with BOM PS Interface & Machine History: Component View Customer SAP CRM Purchase order for a robot route. and adjust the date of the delivery. Calculate the new price and update the price in 2nd quotation.ETO Order Processing Manufacturer mySAP ERP ¥ SAP AG 2005 . Project scheduling in the project builder. BOM-PS transferring (transfer the material in quotation to the project). Assign the long-lead time procurement component to the related activity in the project. and change the configuration of the BOM components based on customer specification change.ETO . Proc. Link the related business documents with the record management model. Create inquiry to do the variant configuration for the robot route during the building of inquiry. and check the costing by PS report. select the number of robots and the voltage of the power supply. Project costing run again to update the cost with new variant configuration. Pricing defining bases on the costing of the whole project. Create project version by copying the current project status. Create 2nd quotation by copying the 1st quotation. This is subject of E84 . Create 1st quotation (copy from the inquiry). the number of each component in the BOM bases on the VC result of the SD order. then link the project with the quotation created.Quot.

Business Benefits Variant configuration in Quotation Flexibility for SD BOM structure definition. design documents. SAP documents/objects. including quantity and components screen out the complexity of ETO BOM in SD side Linkage set to control the component relationship in background Project structuring/execution via project system Clear definition of deliverables and responsibilities Clear definition and milestones to break down the work by project phases Centralized control for project costing Handles long lead-times procurement BOM-PS Transfers the ETO SD-BOM directly from quotation to project Update the quantity or name of component in project whenever SD document changed Record Management Sets the linkage among customer documents. and transactions Delivers an overview of the business centrally ¥ SAP AG 2005 .

BoM Structure E83  ETO .Raw Material E83-1231 Picker Arm E83-1232 E83-1233 Tox Pliers Spot Welding Gun ¥ SAP AG 2005 .BOM PS Interface & Machine History E83-1000 Robot Route E83-1100 Switchgear Cabinet E83-1200 Robot SD BOM (Variant Configurable) PP BOM E83-1210 Basic System E83-1220-XXX Control Cabinet E83-1230 Enhancements PP BOM E83-1211 Base Frame E83-1212 Rotating Column E83-1212-HALB Rotating Column . .Quot.

Raw E83-1220-110 Power supply 110V E83-1220-230 Power supply 230V E83-1220-380 Power supply 380V E83-1230 Enhancements E83-1231 Picker arm E83-1232 Spot welding gun E83-1233 Tox pliers ¥ SAP AG 2005 .Material Master Data E83-1000 Robot Route E83-1100 Switchgear cabinet E83-1200 Robot E83-1210 Basic system E83-1211 Base frame E83-1212 Routing column E83-1212-HALB Routing column .

BOM PS Interface & Machine History Quotation Document E83-1000 Robot Route E83-1100 Switchgear Cabinet E83-1200 Robot E83-1210 Basic System E83-1220-XXX Control Cabinet E83-1230 Enhancements Number of robots can be configured Voltage of the Power Supply could be selected (material selection with VC) ¥ SAP AG 2005 .Quot. .Variant Configuration E83  ETO .

Project Structure Quotation Document Billing WBS linked to the quotation item to handle the revenue of the project SD Order Item Milestones linked to SD order item to control the progressive billing Activities in central WBS element linked to different WBS elements to control the project phases centrally ¥ SAP AG 2005 .

to control the linkage. ¥ SAP AG 2005 .BOM-PS Transferring BOM-PS transferring will update the component in project with the materials in SD quotation. Reference points can be set in BOM and standard network.

Record Management Record Management links complete lifecycle data of the value chain. including:  Business Documentation  SAP documents like order and inquiry  SAP objects like project and material/BOM Record Management gives controller an overview of the whole business procedure and history ¥ SAP AG 2005 .

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