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Session 2:Innovation Management & Manufacturing

Scenarios

SAP Industry Business Unit Chemicals

Manoj Narang

September 30, 2009

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1. Innovation Management

1.1. Definition, Overview and Relevance for Chemicals

1.2. Scenarios coverage in SAP Best Practices for Chemicals

2. Manufacturing Execut ion

2.1. Manufacturing in Chemical Industry

2.2. Production Models, Scenarios in SAP Best Practices for 

Chemicals

3. Demos

3.1. Transformation of General Recipes (942)

3.2. Bulk Manufacturing (with PI Sheet and SAP ODA

Integration)(908)

4. Useful Links

Agenda

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Terminology

SAP Business All-in-One for Chemicals

SAP implementation with defined scope and price

Available from SAP and qualified partners

SAP Business All-in-One for Chemicals

SAP implementation with defined scope and price

Available from SAP and qualified partners

SAP Best Practices for Chemicals

Preconfigured Industry Template

SAP Best Practices for Chemicals

Preconfigured Industry Template

SAP ERP

SAP ERP

Partner Packaged Services

Implementation offering

Partner Packaged Services

Implementation offering

+

+

=

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SAP for Chemicals : Chemical Solution Map

Suppliers &Partners

Customers &Channels

Develop Plan Source Make Deliver Sell & Serve

Enterprise Management & Support

Innovation Management

R & D Management

Product Development

Supplier Collaboration

Strategic Sourcing

Procure to Pay

Supply Chain Planning & Execution

Collaborative Demand & Supply Planning

Logistics & Fulfillment PlanningWarehouse & Inventory Management

Manufacturing

Manufacturing Planning

Manufacturing Execution & Collaboration

Manufacturing Visibility

Enterprise Asset Management

Sales & Marketing

Sales and Operations Planning

Opportunity Management

Inquiry to Contract

Order to Cash

Customer Service & ComplaintManagement

Quality Management & Compl iance

Quality Management

Environmental, Health & Safety Compliance

REACH Compliance Management

Corporate Compliance

© SAP 2009 / Page 4

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SAP Best Practices for Chemicals – 

Scenario Overview

Stock Handling: Scrap and Blocked

Stock (131)

Repetitive Manufacturing with Co-

Products and QM (906)

Bulk Manufacturing (without PI

Sheets) (907)

Bulk Manufacturing (with PI Sheet and

SAP ODA Integrati on) (908)

Make-to-Stock (Process Industry) with

WM (909)

Make to Order (Process Industry) (910)

Multiple Product Campaign Run withMQC (911)

 Acti ve Ingr edien t Pro cessin g (912)

Blending (913)

Repackaging (914)

Relabeling (915)

Storage Tank Management (916)

Subcontracting (External & Internal)

(918)

Enterprise Management &

Support

General Ledger (156)

 Accoun ts Receiv able (157)

 Accoun ts Payab le (158)

Period End Closing Financial

 Accoun ting (159)

Cash Management Status Analysi s

and Cash Concentration (160)

Cost of Sales Accounting (161)

 Asset Ac count ing (162)

 Asset Ac qui sit ion for Con struc ted

 Assets (164)

Segment Reporting (166) General Cost Center Planning (175)

Internal Order for Marketing and Other 

Overhead Planning (180)

Overhead Cost Accounting - Actual

(184)

Internal Order for Marketing Expenses

and Other Overhead Actu al (186)

Time Recording (211)

SAP ERP Reports for Accounting (221)

Period End Closing Activities (224)

Operational Maintenance (929)

Preventive Maintenance (930)

Investment Management in PlantMaintenance (932)

Parallel Accounting (leading HGB,

+IFRS) (943)

Manufacturing

Supplier Collaboration

Quotation for Procurement (128)

Consumable Purchasing (129)

Procurement without QM (130)

Procurement Contract (133)

Return to Vendor (136) Procurement & Consumption of 

Consigned Inventory (139)

Procurement of Batch-Managed Stock

Materials (901)

Procurement of WM-Managed Stock

Materials (902)

Procurement of Pipeline Materials (903)

Procurement of External Services (904)

Quality Management in Procurement

(905) Quality Management &

Compliance

Engineering Change Management(934)

EH&S Product Safety (935)

EH&S Dangerous Goods Management

(936)

EH&S Industrial Hygiene & Safety

(937)

EH&S Waste Management (938)

EH&S Business Compliance Services

(939)

REACH: Substance Volume Tracking

(940)

REACH: Substance Volume Tracking

for Non-EU Suppliers (944)

Supply Chain Planning &

Execution

Lean Warehouse Management (124)

Stock Transfer with Delivery (134)

Stock Transfer without Delivery (135)

Physical Inventory / Inventory Count &

 Adjus tmen t (137)

SAP ERP Reports for Logistics (222)

Supply & Demand Planning (900)

Tank Trailer Filling (919)

Outbound Logisti cs (923)

Totes Handling (927)

Vendor-Managed Inventory (928)

Innovation Management

Internal Order R&D Planning (177)

Internal Order R&D Actual (185)

Transformation of General Recipes

(942)

Sales & Marketing

Sales Processing using Third Party

(with Shipping Notification) (107)

Credit Management (108)

Sales Order Processin g: Sale from

Stock (109)

Free of Charge Delivery (110)

Returns and Compl aints (111)

Sales Quotation (112)

Sales Order Processing fo r Prospect

(113)

Sales Processing using Third Party

(without Shipping Notification) (114) Sales of Non-stock Item with Order 

Specific Procurement (115)

Debit Memo Processing (116)

Sales Order Processing with

Customer Down Payment (201)

Sales: Period End and Closing

Operations (203)

Credit Memo Processing (204)

Sample Processing (917)

Presales Activities (920)

Sales Order Processing (incl. PoD and

CoA) (921)

Sales Order Processing with WM (922) Returns and Complaints (including QM

and Batch Recall) (924)

Chemicals: Credit Management (925)

Rebates Handling (926)

© SAP 2009 / Page 5

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1. Innovation Management

1.1. Definition, Overview and Relevance for Chemicals

1.2. Scenarios coverage in SAP Best Practices for Chemicals

2. Manufacturing Execution

2.1. Manufacturing in Chemical Industry

2.2. Production Models, Scenarios in SAP Best Practices for Chemicals

3. Demos

3.1. Transformation of General Recipes (942)

3.2. Bulk Manufacturing (with PI Sheet and SAP ODA Integration)(908)

4. Useful Links

Agenda

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Innovation Management - Definition

Creativity and Imagination applied in a business context is Innovation”, “ Innovation is Imaginative Problem-Solving”

Textbook definition indicates that, “Innovation is the first successful commercialization

of a new idea”.

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Product Development for Specialty Chemicals

(Example)

Opportunity

identificationFinancialevaluation

Determination

of resources,timeframe,and so on

Product and

processspecification

Laboratory

work

Final productdefinitionProduct pricingMarketingactivities

Pilot plantscale-up andadjustments

Customer sampleevaluation

Internalsampleevaluation

External and

internalrequirements

Customers Markets

Full-scaleproductionadjustments

Sample evaluation

Product and process adjustments

Concept

Development

Specification

Initiation

Specification

DevelopmentSpecification

Conversion

Specification

Management

Initiate Phase-

Gate ProcessInitiate Phase-

Gate Process

Enter Product

DefinitionEnter Product

DefinitionSpecification

SpecificationVendor 

CollaborationVendor 

Collaboration

Label

ManagementLabel

Management

RecipeDevelopment

Recipe

Development

Create Plant

Operating FormulaCreate Plant

Operating Formula

ChangeManagement

ChangeManagement

Link to Materials/

BOM Gen.Link to Materials/

BOM Gen.

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Integrated Product DevelopmentEnd-to-End Process – Chemicals Industry

Portfolio and Customer Requirements Management

Ramp-upto Production

ProductDevelopment

Marketing

Manufacturing

DevelopmentHead of R&D

Portfolio

ManagementHead of Marketing

Head of Manufacturing

ProcurementHead of Procurement

Quality

Engineering

and

Improvement

Concept /

Business Case

Mgmt

Strategic

Supplier 

Identification

“New Product”

Initiative

Management

Production

Scale-up and

Handover to

Manufacturing

Project

Mgmt

Integrated Product Development integrates Product Development, Customer 

Requirements Management and Ramp-up to Production to streamlineprocesses, unify product data and reduce time to market.

Collaboration

with

Customers

and Partners

Compliant

Recipe

Development

Lab Trials and

Samples

Product /

Process Data

Change

Management

Head of ManufacturingHead of Marketing Head of R&D

Product Division Head

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Suppliers & Partners Customers &

Channels

Develop Plan Source Make Deliver Sell & Serve

Innovation Management

R & D Management

Product Development

SAP ERP Solution:

Specification Management

Recipe Management and Trials

R&D Project Management Knowledge & Document Management

Collaboration tools

Business Issues:

Meet regulatory & complianceneeds

Manage capital investments

Manage resources and stagegate projects

Visibility in developmentactivities

Develop new markets

Meet customer formulationneeds

View of all R&D portfolio

Cross functionalcommunication & planning

Document product formulas

Minimize R&D costs

Knowledge retention

Benefits:

Faster time to market

Streamlined Development Processes

Minimize R&D spend

Stronger program management

Knowledge retention & sharing

Easy regulatory compliance

Innovation Management in Chemical Solution

Map

© SAP 2009 / Page 10

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Recipe Management as per ISA 88.01

Separates the recipe that describes how the batch is to be made from the equipment used tomake the batch

Standard covers four basic concepts:

How to depict what you have in the plant (physical model)

How to define what you would like to accomplish in the plant (recipe)

Implementation of what you can do in the plant (equipment logic)

How to put the three pieces mentioned above together in an intelligent, reusable and

successful way The Recipe is the necessary set of information that uniquely defines the production

requirements for a specific product

One General Recipe per produced material, maintained at theenterprise level (1000 company wide products)

One Site Recipe per site and produced material, maintained atthe site for local materials, language, or segment of production(10,000 site recipes for 10 sites)

One Master Recipe per Process Cell and produced material(50,000 master recipes for 5 cells per site)

One Control Recipe per batch that describes the custom optionsand formula values for one specific batch of product (1,000,000

batches per year)

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1. Innovation Management

1.1. Definition, Overview and Relevance for Chemicals

1.2. Scenarios coverage in SAP Best Practices for Chemicals

2. Manufacturing Execution2.1. Manufacturing in Chemical Industry

2.2. Production Models, Scenarios in SAP Best Practices for Chemicals

3. Demos

3.1. Transformation of General Recipes (942)

3.2. Bulk Manufacturing (with PI Sheet and SAP ODA Integration) (908)

4. Useful Links

Agenda

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Chemical Solution Map - Scenario Alignment

Suppliers &Partners

Customers &Channels

Develop Plan Source Make Deliver Sell & Serve

Innovation Management

R & D Management

Product DevelopmentSAP Best Practices Scenario:

Internal Order R&D Planning (177)

Internal Order R&D Actual (185)

Transformation of General Recipes (942)

© SAP 2009 / Page 14

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Scenario 177 - Internal Order R&D Planning

DataCorrect?

ExpenseInternal Order 

(188)

 AOP – Genera lCost Center 

Planning(175)

Confirm AllOrders HaveBeen Settled

Correctly

 AnnualOperating

Plan

Credit Internal Order Planned Values

Debit Profitability Analy si s, e.g. R& D

by Product Line

No

Enter R&DOrder Plan

Data by CostElement

Internal Order Planned Values

Yes

 AOP= Annu al Ope rati ng Plann ing

Settle R&DOrder Costs to

Profitability Analy si s

   R   &   D   P   l  a  n  n  e  r

   E  v  e  n   t

© SAP 2009 / Page 16

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Scenario 185 - Internal Order R&D Actual

Create R&D

InternalOrder (155.12)

Settle Order Coststo CO-PA

New InternalProjects(for R&D)

Profitability(CO-PA) Update

CO-PA = Profitability Analysis

Thistask

done atend of month

Need ExternalServices

Month EndNeed Material

fromInventory

ConsumablePurchasing

(129)

Post Goods Issueto R&D Order 

InventoryExpense

Thesetasks

onlydone asneeded

   C  o  s   t   A  c  c

  o  u  n   t  a  n   t

   W  a  r  e   h  o  u  s  e   C   l  e  r   k

   B  u  y  e  r

   E  v  e  n   t

© SAP 2009 / Page 17

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This Scenario depicts transfer of experimental data of a general recipeinto master recipes for production.

The following processes are provided to support the Transformation of General Recipes scenario:

Displaying general recipe

Transforming general recipe to master recipe

Maintaining and finalizing master recipe Creating process order with transformed recipe

Transformation of General Recipes (942)

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Scenario 942 - Transformation of General Recipes

Maintaining andFinalizing Master 

Recipe

Creating ProcessOrder 

Performing

Process Order Confirmation

TransformingGeneral Recipe to

Master Recipe

DisplayingGeneral Recipe

   E  n  g   i  n  e  e  r   i  n  g   S  p  e  c   i  a   l   i  s   t

   S   h  o  p   F   l  o  o  r   S  p  e  c   i  a   l   i  s   t

   P  r  o   d  u  c   t   i  o  n   P   l  a

  n  n  e  r

© SAP 2009 / Page 19

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Manufacturing In Chemicals – A Complex

World

Source

Enterprise

   C  u  s   t  o  m  e  r   D  e  m  a  n   d

Plan

   S

  u  p  p   l   i  e  r  s

Material Supply

Delivery to

Distribution

Centers andCustomers

Planning

Quality Mgmt.

Maintenance Inventory Mgmt.

Plant Mgmt,

KPI-Reporting

Raw Materials Finished Products

Production

Make Deliver  

Financial Services

Enterprise Services

Strategic Decisions

Factory

Manufacturing is the process of converting raw materials intohigher valued finished products to meet customer demands

Specifics of Chemicals Manufacturing:

Batch & continuous processes

Bulk & packaged products

Few raw materials = many products

Co-products

Fixed yields for processes Production campaign planning

Compliance: emissions, waste,hazardous materials handling

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Role

Plant Manager 

Production Planner 

Production Supervisor 

Production Operator 

Quality Inspector 

Quality Manager 

Store / Dispatch Clerk

Maintenance Engineer 

EH&S Professional

ForecastDemand

A Typical Chemicals Manufacturing Scenario

Net Forecast Against Orders

Develop Supply NetworkPlan for Manufacturing

Develop Detailed MonthlyProduction Plan

Report Up

Update Production Plans(Measure Plan vs. Actual)

Create detailed Production Planand Schedule

Release ProductionOrders

View Work list &Select Order Sequence

Move Goodsto Line & Manu-facture Product

Create QualityInspection Orders

 Approve and ReleaseProduced Batch/Order 

Record Production (time, material,labor, cost) Results

Monitor, Review and Approve Quality

Pack and StoreDispatch Product

Create PreventiveMaintenance Plan

ScheduleMaintenance

MaintenanceExecution

Publish new documents asneeded – MSDS, FDA letters,

etc.

Log Exposure and Handling for Compliance

Invoke Safety andHandling Instructions

based on MSDS

 Approve Production Plan andTargets

 A Complicated Environment!

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Constant re-work, overtime, expedites, shortages

High inventory carrying, material, labor, energy costs Low labor productivity and asset utilization

Production personnel lack necessary decision support

Higher operating costs lowers margins andperformance

ObservationsKey Issues

Must expand size of addressable market or better penetrateexisting market

Commoditization & competitive pressure forcing down price-points in specialty chemicals

Rising material, energy, quality & EH&S costs a concern for all.Basic producers must preserve margins

Flat market growth with downward pressure onmargins

Manufacturing moving offshore to distant locations – lower visibility to events & exceptions

Lack of consistent standard manufacturing processes andsystems in a heterogeneous landscape

Lack of integration across multiple plants or acrossmanufacturing and supply chain nodes

Coordination and control across outsourcedmanufacturing increases lead times

Excessive inventory on the plant floor and across the supplychain

Low production yields and asset/ labor utilization

High levels of waste and inefficiency

Key Issues for Manufacturing in Chemicals

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Lack of analytics on product profitability to determine the rightproduct mix

No insight into economical implications of scheduling decisionswith conflicting optimization objectives

Recovery of business driving production tocapacity limits

Time consuming compliance and reporting

Manual/paper based process

Knowledge management processes inefficient

Industry regulations driving up costs of 

quality/EH&S compliance

Lack of analytics and KPI data to support continuousimprovement processes

Knowledge management processes inefficient

Inability to institutionalize best practices or continuous improvement

ObservationsKey Issues

Learning too late re: machine/material/quality exceptions

Customer orders “lost” on the factory floor 

Lack of automated/workflow based exception resolution

Reduced customer responsiveness

Key Issues for Manufacturing in Chemicals

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Suppliers &Partners

Customers &Channels

Develop Plan Source Make Deliver Sell & Serve

Business Issues:

Pack and Make to order planning

Understand plant capability Maintenance planning & control

 Accurate asset records

Interface with plant control systems

Produce to plan

Visibility of data

Cost con trol and reporting

SAP ERP Solution

Materials RequirementsPlanning (MRP) process

Production planning,scheduling & execution

Batch management

Subcontracting

Shop floor integration

Enterprise asset management

Predictive maintenance

Preventive maintenance

Work order processing

Shutdown management

Failure mode analysis

Work clearance management

Mobile asset management

Benefits: Integrate production & planning

Less inventory

Longer production runs, increased

uptime

Lower maintenance costs

Faster maintenance shutdowns

Integrated reporting

Manufacturing

Manufacturing

Manufacturing Planning

Manufacturin g Execution & Collaboration

Manufacturing Visibility

Enterprise Ass et Management

© SAP 2009 / Page 25

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MRP and Capacity Planning- SAP ERP uses MRP techniques to create un-

constrained production plans. Several different planning strategies are supported, MTO(make-to-order) and MTS (make-to-stock) being the most prominent ones. With capacityplanning and leveling, technically feasible production schedules can be created

Key Functionality

Material requirements planning

Evaluation of MRP results

Interactive planning of planned orders

Conversion of planned orders to process orders

Conversion of planned orders to purchaserequisitions

Planning strategies: Make-to-order, Make-to-stock

Resource planning and capacity leveling

Key Benefits

Improved delivery against promised date

Reduced inventory carrying costs

Improved raw material availability

Increase capacity utilization

Improved order fill rates

Capacity load determination

Creates feasible schedules

Reduced administration, improve businessprocess

Reduced transaction costs

MRP and Capacity Planning

© SAP 2009 / Page 26

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Material forecast Sales & distribution

   C  a  p  a  c   i   t  y

   R  e  q  u   i  r  e  m  e  n   t  s

   P   l  a  n  n   i  n  gDemand program

MRP

Work scheduling

Production execution

Goods receipt of product

Settlement / Batch Record

Planned order    S   C   M

   &   M   f  g   P   l  a  n  n   i  n  g

   M   f  g   E  x  e  c  u   t   i  o  n

Goods issue of comp.

Purchase requisition

Purchase order 

Goods receipt

Invoice receipt

   P  r  o  c  u  r  e  m  e  n   t

Plnd.ind.req.

Stock

E

 A C D

B

Customer req.

   Q   M   /  e   L   I   M

   S

   I  n   t  e  g  r  a   t   i  o  n   t  o   P   l  a  n   t   f   l  o  o  r

Manufacturing Execution and Planning

© SAP 2009 / Page 27

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Manufacturing Execution - Supports all steps to execute the production schedule

for continuous and batch oriented manufacturing. Control recipes are generated withprocess instructions and the process is executed phase by phase. Finally, goods issuesand goods receipts are conf irmed and the order is settled.

Key Functionality

Production orders

Process order management

Batch management

Goods issue and goods receipts

Product costing and settlement

Integration to process control and shop floor 

information system

Electronic batch recording

Integration to MES and shop floor systems

Dashboards and shift reports

Key Benefits

Improved actual vs. planned execution of 

process orders Manage production processes, workforce and

resource deployment on the plant floor 

Cost transparency

Reduced administration, paper work andspreadsheets

 Automated documentation Improved control and monitoring of the

production

Fewer unexpected events

Manufacturing Execution

© SAP 2009 / Page 28

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Event Mgmt

QM

Maintenance

Control

Recipe

Process

Order 

Master dataRecipes

Resources

Materials

Plant f loor 

Process

Messages

PI-Sheet

Alarm Server 

Material

Movements

BatchManagement

Further Destinations

R-02

R-01

Planned

Order 

PI-PCS

Interface

/

SAP MII

OPC Data Access

OPC Alarms & Events

Business Warehouse

Dashboard

Information Flow in SAP Process

Manufacturing

© SAP 2009 / Page 29

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Process Order Management - Process orders are used for the production of 

materials for a specific quantity on a specific date. They enable the planning of resources,control of process order management, and specify rules for account assignment andorder settlement. They are the main control instrument in production.

Key Functionality

 Availability checks

Manufacture of co-products

Material quantity calculation

 Active ingredient management

Master recipes management

Creation of control recipes and inspection lots

Process instruction sheet for operators with

digital signatures

Material staging & reservations

Confirmation of quantities, activities and timeevents

Costing and period-end closing, order settlement

Key Benefits

Improved reliability through availability checksand material reservations

Reduced administration, paper work andspreadsheets

Improved control of manufacturing process

Documentation of production process

Process Order Management

© SAP 2009 / Page 30

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Ware-house

Processorder  Ware-

houseSales order 

Warehouse Mgmt

Batch

assignment

Batch determination

Batchassignment

Purchaseorder 

Batch determination

 A

B

 A

B

Warehouse Mgmt

ManufacturingManufacturing SDSDProcurementProcurement

Batch Management

© SAP 2009 / Page 32

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Batch Information CockpitBatch where-used list

© SAP 2009 / Page 33

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Manufacturing Collaboration - Automated electronic collaboration to rapidly

communicate work orders as new demand is received, to negot iate and to makeadjustments necessary for responsive execution.

Key Functionality

Subcontracting purchase orders

Goods issue of components to subcontractor 

Third party subcontracting (components provided bythird party)

Negotiation of delivery, quantity and details*

Visibility of inventory including in-transit stock*

Timely visibility of work order progress at thesubcontractor updates execution systems andtriggers alerts if necessary*

Traceability of batches and component batches*

Notification of product shipment and generation of  ASN*

* Requires SAP Supply Network Collaboration (SNC)

Key Benefits

Lower lead times and administrative costs due toautomated collaboration processes

Early detection of exception conditions enablesbrand owner to replan or expedite responsively

Enables brand owners to make accuratecommitments to their customers, enhancingservice and perfect order performance

Seamless process and common data betweeninternal planning and execution and the external

procurement process

Manufacturing CollaborationOutsourced Manufacturing / Subcontracting

© SAP 2009 / Page 34

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1. Innovation Management

1.1. Definition, Overview and Relevance for Chemicals

1.2. Scenarios coverage in SAP Best Practices for Chemicals

2. Manufacturing Execut ion2.1. Manufacturing in Chemical Industry

2.2. Production Models, Scenarios in SAP Best Practices for 

Chemicals

3. Demos

3.1. Transformation of General Recipes (942)

3.2. Bulk Manufacturing (with PI Sheet and SAP ODA Integration) (908)

4. Useful Links

Agenda

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 Acti ve Ingredien t

Processing(Sales)

Co - Product

By - Product

Repetitive ManufacturingPipeline Material

Handling

Blending

Tank Trailer 

Granulate SAPulat/GranuSAP blue

Overview V1.603

Plant 1000

Filling

Pressure and Temperature   Polymerization

Ethylen Gas, C2H4

YQPM

CH-1410

Catalyst (Grade A)

YQRM

CH-1420

Description

Mat type

Mat Nr 

WM managed

QM active Batch managed

Solvent (Grade B)

YQBP

CH-7100SAPulat (Batch B)

YQBM

CH-2200

Pigment, blue

YQRM

CH-1440

SAPulat

Raw Granulate

YQFP

CH-6400

SAPalyst

YQFP

CH-6500

Filling

SAPulat (Batch A)

YQBM

CH-2200

Solvent (Grade A)

YQRM

CH-1430

GranuSAP, Blue

YQBM

CH-3200

Catalyst (Grade B)

YQCP

CH-9100

Extruder   Mix   Nozzle  Chop (Avrg 2x3 mm)    Add Pigment

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Totes Handling

Bag 10 KG

VERP

CH-4100

Bag 25 KG

VERP

CH-4110

BigBag 500 KG

VERP

CH-5100

Shrink Foil

VERP

CH-4600

Pallet

VERP

CH-4500

Granulate SAPulat/GranuSAP blue

Overview V1.603

Filling in Bags/BigBags and Delivery

GranuSAP Sample

YQSM

CH-0100

Repackaging

GranuSAP, 25 KG

YQFP

CH-6200

GranuSAP, 500 KG

YQFP

CH-6220

External Subcontracting

GranuSAP, 100 KG

YQFP

CH-6210

Container 100KG

VERP

CH-4120

Label GranuSAP

ROH

CH-1100

GranuSAP, Blue

YQBM

CH-3200

GranuSAP, 1000 KG

YQFP

CH-6230

Container, 1000 KG

VERP

CH-4130

Label GranuSAP

ROH

CH-1100

Plant 1000Description

Mat type

Mat Nr 

WM managed

QM active Batch managed

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Product

Substitution by QM

Usage Decision

Paint, blue (Grade B)

YQBM

CH-3001

Paint SAPcolor blue

Overview V1.603

Plant 1000

Batch Production : Filling, Heating, Grinding, Disperging

 Addi ti ve BG99

YQAI

CH-1020

Pigment, blue

YQRM

CH-1440

Description

Mat type

Mat Nr 

WM managed

QM active Batch managed

 Acryl ic Resin

YQRM

CH-1010

Solvent (Grade A)YQRM

CH-1430

 Acryl ic Resin

(residue)

YQRM

CH-1010

 Acryl ic Resin

(new delivery)

YQRM

CH-1010

 Active Ingredien tProcessing

(Procurement &Manufacturing)

 Al ternat ivePosition in BOM

Paint, blue (Grade A)

YQBM

CH-3000

Mixing inStorage Tank Solvent (Grade B)

YQBP

CH-7100

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Paint SAPcolor blue

Overview V1.603

Canister, 5 kg

VERP

CH-4200

Canister, 10 kg

VERP

CH-4210

Contain er, 1000 kg

VERP

CH-5200

Shrink Foil

VERP

CH-4600

Pallet

VERP

CH-4500

SAPcolor, blue

Sample

YQSM

CH-0200

Product Substitutionin SD

Paint, blue (Grade B)

YQBM

CH-3001

Paint, blue (Grade A)

YQBM

CH-3000

SAPcolor blue,

10 kg (Grade B)

YQFP

CH-6001

SAPcolor blue,

1000 kg

YQFP

CH-6100Paint MagicBlue,

10 KG

YQFP

CH-6010

Label MagicBlu e

ROH

CH-1110

Label BlueSky

ROH

CH-1120

Label BlueStar 

ROH

CH-1130

Paint BlueSky,

10 KG

YQFP

CH-6020

Paint BlueStar,10 KG

YQFP

CH-6030

Relabeling

SAPcolor blue,

10 kg

YQFP

CH-6000

Filling in Canisters

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Additional Paints

Overview V1.603

Filling

Paint, red

YQNM

CH-0500

Canister, 5 kg

VERP

CH-4200

Internal

Subcontracting

PowerPaint, red

YQFP

CH-6800

SAPcolor green,

10 kg

HAWA

CH-6300

Third Party

Processing

SAPcolor white,

10 kg

HAWA

CH-6310

Plant 1000

Description

Mat type

Mat Nr 

WM managed

QM active Batch managed

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Paint, black

YQBM

CH-3110

Additional Paints

Overview V1.603

Plant 1000

Batch Production : Filling, Heating, Grinding, Disperging

Description

Mat type

Mat Nr 

WM managed

QM active Batch managed

 Acryl ic Resin

YQRM

CH-1010

 Add it ive BG99

YQAI

CH-1020

Solvent (Grade A)

YQRM

CH-1430

Pigment, blackYQRM

CH-1442

Pigment, yellow

YQRM

CH-1441

 Acryl ic Resin

(residue)

YQRM

CH-1010

 Acryl ic Resin

(new delivery)

YQRM

CH-1010

 Active IngredientProcessing

(Procurement &Manufacturing)

Paint, yellow

YQBM

CH-3100

Mixing inStorage Tank

Multiple ProductCampaign Run

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CreateProcess

Order 

ConvertPlanned to

ProcessOrder 

ReleaseProcess

Order SendingControlRecipes

ProductCosting

Delivery

GoodsIssue

GoodsReceipt

MRP

Capacity

Planning /Leveling

SupplyChain

Planning

Sales

(OTI)

MRP and

CapacityPlanning

Manufacturing

ProcessingPI-Sheets

ConfirmProcess

Order 

In ProcessControl

SAP Best Practices for Chemicals – 

MRP and Capacity Planning / Manufacturing

PostProcessControl

MaterialStaging

fromWarehouse

Putawayof Produced

Material

PlantMaintenance

© SAP 2009 / Page 42

Supplier Collaboration

Supply Chain Planningand Execution

Manufacturing

Enterpris e Management

and Support

Innovation Management

Quality Management and

Compliance

Sales and Marketing

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Suppliers &Partners

Customers &Channels

Develop Plan Source Make Deliver Sell & Serve

Chemical Solution Map - Scenario Alignment

Manufacturing

Manufacturing Planning

Manufacturing Execution & Collaboration

Manufacturing Visibility

Enterprise Asset ManagementSAP Best Practices Scenarios:

Stock Handling: Scrap and Blocked Stock (131)

Repetitive Manufacturing with Co-Products and QM (906)Bulk Manufacturing without PI Sheets (907)

Bulk Manufacturing with PI Sheet and SAP ODA Integration (908)

Make-to-Stock (Process Industry) with WM (909)

Make to Order (Process Industry) (910)

Multiple Product Campaign Run with MQC (911)

 Acti ve Ingredient Proc essi ng (912)

Blending (913)

Repackaging (914)

Relabeling (915)

Storage Tank Management (916)

Subcontracting (External & Internal) (918)

© SAP 2009 / Page 43

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In SAP Best Practices for Chemicals, continuous production is used tomake the semi-finished product SAPulat on a continuous basis.

The characteristics of continuous production (long runs) are:

The product is produced in a continuous process over a long time (inparticular single-product lines).

Component materials are provided constantly, and the finishedproduct is constantly being completed.

Rough capacity leveling and continuous planning of consumption arepossible by means of the planning table.

Summary confirmation of quantities, times and material withdrawals.

Scenario 906 - Repetitive Manufacturing with Co-

Products and QM

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Scenario 906 - Repetitive Manufacturing with Co-

Products and QM

MRP = Material Requirements Planning, RFQ = Request for Quotation, GR/IR = Goods Receipt/Invoice Receipt, PPV = Purchase Price Variance

Display /Change

planning table

CreateInspection lotfor In process

Inspection

RecordInspectionresult for In

processInspection

Usage Decisionfor In process

Inspection

Backflushrepetitive

Manufacturing

RecordInspection

result for coproduct

Usage Decisionfor co product

   P  r  o   d  u  c   t   i  o  n   P   l  a  n  n  e  r

   S   h  o  p   F   l  o  o  r   S  p  e  c   i  a   l   i  s   t

   Q  u  a   l   i   t  y   M  a  n  a  g  e  m  e  n   t

© SAP 2009 / Page 45

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This scenario covers the manufacturing of a bulk product (Bulk paint

SAPcolor CH-3000).

Within this scenario material staging of components with WM as well asseveral QM functionalities such as

In-Process-Control of the manufactured product with usage decision

Post-Process-Control of manufactured product with samplemanagement and usage decision

Recurring inspections are included.

Scenario 907 - Bulk Manufacturing without PI

Sheets

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Scenario 907 - Bulk Manufacturing (without PI

Sheets)

MRP = Material Requirements Planning, RFQ = Request for Quotation, GR/IR = Goods Receipt/Invoice Receipt, PPV = Purchase Price Variance

ConvertPlanned order 

of CreateProcess order 

Stage materialfrom

warehouse

Record resultsfor In process

inspection

Record usagedecision for In

processinspection

Confirmprocess order 

Record resultsfor GR

inspection

Record usagedecision for GR

inspection

Record resultsfor recurringinspection

Record usagedecision for 

recurringinspection

Createrecurring

inspection lot

   P  r  o   d  u  c   t   i  o  n   P   l  a  n  n  e  r

   W  a  r  e

   h  o  u  s  e   C   l  e  r   k

   Q  u  a   l   i   t  y   S  p  e  c   i  a   l   i  s   t

   S   h  o  p   F   l  o  o  r   S  p  e  c   i  a   l   i  s   t

© SAP 2009 / Page 47

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This scenario covers the manufacturing of a bulk product - granulate

GranuSAP, blue CH-3200.

Within this scenario material staging of components with WM as well asseveral QM functionalities such as

In-Process-Control of the manufactured product with usage decision

Post-Process-Control of manufactured product with usage decisionare included

This scenario also covers the creation and usage of PI sheets.

SAP Best Practices for Chemicals introduces the XML-based PI sheetand a Process Manufacturing Cockpit.

In addition the functionality SAP ODA (OPC for Data Access) is

integrated. This allows to read out and process sensor values within thePI sheet.

Scenario 908 - Bulk Manufacturing with PI Sheet

and SAP ODA Integration

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Scenario 908 - Bulk Manufacturing (with PI Sheet

and SAP ODA Integration)

Convertplanned order 

or Createprocess order 

Stage materialfrom

Warehouse

Sendingcontrol recipes

Processing PIsheet

Record resultfrom PI sheetfor In process

inspection

Record UsageDecision for In

processInspection

Evaluate logsfor DigitalSignature

Use SAP ODAfunctionalities

Send processmessage

Record resultsfor GR

inspection

Record usagedecision for GR

inspection

Use Batchwhere used list

   P  r  o   d  u  c   t   i  o  n   P   l  a  n  n  e  r

   W  a  r  e   h  o  u  s  e   C   l  e  r   k

   S   h  o  p   F   l  o  o  r

   S  p  e  c   i  a   l   i  s   t

   Q  u  a   l   i   t  y   S  p  e  c   i  a   l   i  s   t

   E  n  g   i  n  e  e  r   i  n  g

   S  p  e  c   i  a   l   i  s   t

© SAP 2009 / Page 49

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Scenario 909 - Make-To-Stock (Process Industry)

with WM

This scenario describes a standard make-to-stock manufacturing processwith included Quality Management and Warehouse Management.

This scenario covers the filling of granulate GranuSAP, blue CH-3200into 500 kg pack size to produce GranuSAP, 500 KG CH-6220.

 After creation and confirmation of a process order, post-process-controlis carried out.

Finally the putaway for the manufactured materials into WM is described.

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Scenario 909 - Make-to-Stock (Process Industry)

with Warehouse Management

Convert PlannedOrder 

or Create Process

Order 

Createinspection lot

manuallyRecord results

Record UsageDecision

RecordInspection

result for coproduct

Usage Decisionfor co product

Confirm ProcessOrder 

DisplayStorage Bin

Create transfer order 

ConfirmTransfer Order 

   P  r  o   d  u  c   t   i  o  n   P   l  a  n  n

  e  r

   S   h  o  p   F   l  o  o  r   S  p  e  c   i  a   l   i  s   t

   Q  u  a   l   i   t  y   M  a  n  a  g  e  m  e  n   t

   W  a  r  e   h  o  u  s  e   M  a  n  a  g  e  m  e  n   t

© SAP 2009 / Page 51

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Scenario 910 – Make to Order (Process Industry)

This scenario describes a Make to order filling of granulate GranuSAP,blue CH-3200 into 25 kg pack size to produce GranuSAP, 25 KG CH-

6200. Packed product is filled and packed only after a sales order isreceived.

The filled material is planned to plan the dependent requirement of the

bulk. The MRP run is used to plan the dependent requirements.

Material requirements’ planning is controlled via Planning Strategy 52

(Planning w/o Final Assembly and w/o MTO) Bulk is manufactured and kept in stock based on the dependent

requirements of the filled material.

On receipt of the sale order for the filled material the MRP triggers a

planned order for the filled material for the sale order quantity. This

planned order can be converted into a process order to execute the fillingprocess.

The filled material is goods received to sale order stock and thendelivered the customer.

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Scenario 910 – Make to Order (Process Industry)

Create plannedindependent

Requirements

Record Usage

DecisionRecord Results

Post GoodsIssue

MRP Run

Convert PlannedOrder 

Confirm ProcessOrder 

Release ProcessOrder 

Create SalesOrder 

Create Delivery

   P  r  o   d  u  c   t   i  o  n   P   l  a

  n  n  e  r

   S  a   l  e  s

   A   d  m   i  n   i  s   t  r  a   t   i  o  n

   S   h  o  p   F   l  o  o  r   S  p  e  c   i  a   l   i  s   t

   Q  u  a   l   i   t  y   S  p  e  c   i  a   l   i  s   t

   W  a  r  e   h  o  u  s  e   C   l  e  r   k

© SAP 2009 / Page 53

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This scenario covers production of multiple products run on a common manufacturing

resource.

Black & Yellow Paint are being produced on a common resource. A cleanout processis undertaken after a run for a colored paint (like Yellow Paint) is finished on theresource.

 A cleanout order is proposed when final confirmation for a processing step (phase)identified with Cleaning Reqd checkbox ticked (defined by user fields) is being saved.

This is set up through user exit - CONFPI05 (Process order conf.: Cust. spec.enhancements when saving)

Common Resource Cleaning is mapped through creation & release of Cleanout Order (Process order without material). It is used to record and account activities & materialsconsumed during the cleaning process.

The Cleanout order can settled to a cost center or to paint being manufactured in nextrun

Completion of common Resource Cleaning is ascertained through activation of User Status – ZCL (Resource Cleaning Completed). This user status is set when the

process order is fully confirmed (CNF) Material Quantity Calculation (MQC) formula is used to calculate quantity for solvent

(CH-1430) to be added in the manufacturing process. It is calculated based on activeingredient proportion in batch selected for additive (CH-1020)

Formula defined for solvent (CH-1430) ensures that solvent to paint ratio is maintainedto maxm 40%. If solvent quantity calculated using Active ingredient content in batch of additive (CH-1020) is more than 40 % then keep original ratio (35%) otherwise use thecalculated value. This ensures that solvent to paint ratio is maintained appropriately

Scenario 911 - Multiple Product Campaign Run with

Material Quantity Calculation

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Enter Plannedproductionquantities

Run MRP

Check Stock /Requirements

List

CapacityOverload

CollectiveConversion of 

Planned Orders

Run MRPCheck Stock /Requirements

List

CapacityOverload

Changeconverted

Process orders

ExecuteProduction as

per Schedule

Confirm end of a run –final

Confirmation

CleaningRequired

ExecuteProduction for 

same color paint run asper schedule

CreateCleaning /

Change-over Order 

ExecuteCleaning /

Change-over activities

CreateCleaning /

Change-over Order 

Yes

Yes

No

Yes

No

No

Scenario 911 - Multiple Product Campaign Run with

Material Quantity Calculation

   P  r  o   d  u  c   t   i  o  n

   P   l  a  n  n  e  r

   S   h  o  p   F   l  o  o  r   S  p  e  c   i  a   l   i  s   t

   S   t  r  a   t  e  g   i  c   P   l  a  n  n  e  r

© SAP 2009 / Page 55

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In Chemical industry, in some cases, materials consist of one or more

active ingredients. The potency of these active ingredients varies from

batch to batch of materials (KAI (kilograms active ingredient)).

The total mass of the active ingredients and the carrier materials, is thephysical quantity or weighted quantity.

Goods movements and stock movements for these materials are carried

out in physical quantities. Valuation, costing, availability checks, andplanning, however, are carried out on the basis of the active ingredient

quantity.

The active ingredient proportion (ratio of active ingredient quantity to total

or physical quantity) remains constant for each batch. The active ingredient

quantity can therefore be calculated from the physical quantity and viceversa.

The process in this scenario comprises the valuation of the Co-Product(that results from the repetitive manufacturing of SAPulat.), filling and sales

Scenario 912 - Active Ingredient Processing

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Scenario 912 - Active Ingredient Processing

Create ProcessOrder 

ConfirmProcess Order 

Create SalesOrder 

Create DeliveryGoods issue

Delivery

Billing

   S  a   l  e  s   A   d  m   i  n   i  s   t  r  a   t   i  o  n

   S  a   l  e  s   B   i   l   l   i  n  g

   W  a  r  e

   h  o  u  s  e   C   l  e  r   k

   S   h  o  p   f   l  o  o  r   S  p  e  c   i  a   l   i  s   t

   P  r  o   d  u  c   t   i  o  n   P   l  a  n  n  e  r

© SAP 2009 / Page 57

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This scenario describes business processes related to Blending of in-spec and off-spec batches in the chemical industry.

Within this scenario, two batches of colorless granulate SAPulat (one

involved batch is in-spec and the other one off-spec) will be mixed in aseparate resource in order to get an in-spec batch of CH-2200 (SAPulat)

Scenario 913 - Blending

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Scenario 913 - Blending

BatchInformation

Cockpit

CreateProcess

Order 

ConfirmProcess

Order 

Recordresults

UsageDecision

   S   h  o  p   F   l  o  o  r

   W  a  r  e   h  o  u  s  e   C   l  e  r   k

   Q  u  a   l   i   t  y   M  a  n  a  g  e  m  e  n   t

   P  r  o   d  u  c   t   i  o  n   P   l  a  n  n  e  r

© SAP 2009 / Page 59

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The Re-Packaging scenario is used for re-packing on-stock materialsfrom one packing unit into another one.

The necessity for this Re-Packaging scenario is mainly based on specificcustomer requirements, e.g. the need for 25 kg bags on pallets.

This scenario also includes following WM and QM processes:

Material Staging

Post-Process Inspection and Usage decision

Putaway of Produced Materials

Batch Derivation

Scenario 914 - Repackaging

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Scenario 914 - Repackaging

CreateProcess

Order 

SelectTransport

request andconvert toTransport

order 

Select openTransport

order 

ConfirmTransport

order 

ConfirmProcess

Order 

Resultrecord

worklist

UsageDecision

CreateTransfer Order for producedMaterial

Select openTransport

order 

ConfirmTransport

Order 

BatchDerivation

   S   h  o  p   F   l  o  o  r   S  p  e  c   i  a   l   i  s   t

   E  n  g   i  n  e  e  r   i  n  g

   S  p  e  c   i  a   l   i  s   t

   Q  u  a   l   i   t  y   S  p  e  c   i  a   l   i  s   t

   W  a  r  e   h  o  u  s  e   C   l  e  r   k

   P  r  o   d  u  c   t   i  o  n   P   l  a

  n  n  e  r

© SAP 2009 / Page 61

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The Relabeling-scenario is used to transfer inventory from the stockedmaterial (generic label) to a different material which will be labeledaccording to customer requirements.

The physical and chemical properties of the material remains the same

throughout the process as well as the container respectively the canremains the same. Only the label-sticker will be replaced.

The process is triggered by an actual sales order for the relabeledmaterial and a relabel-process order is used to transfer the inventory andmonitor the process.

This scenario also covers printing of Certificate of Analysis at outbound

delivery and Batch Derivation (from bulk paint CH-3000 to filled paintCH-6010 and from CH-6010 to CH-6020/CH-6030)

Scenario 915 - Relabeling

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Scenario 915 - Relabeling

Manually MRPplanning

Create SalesOrder 

ConvertPlanned Order 

for Filling

Change andRelease

process order for fi l l ing.

Confirm ProcessOrder 

ConvertingPlanned Order into Process

Order for Relabelling

ReleasingProcess Order for Relabeling

ConfirmingProcess Order for Relabeling

Create OutboundDelivery

Delivery for shipping the

material to thecustomer is

issued.

Certificate fo r Delivery

Monitor theBatches

   S   h  o  p   F   l  o  o  r

   S  p  e  c   i  a   l   i  s   t

   Q  u  a   l   i   t  y

   M

  a  n  a  g  e  m  e  n   t

   W  a  r  e   h  o  u  s  e   C   l  e  r   k

   P  r  o   d  u  c   t   i  o  n

   P   l  a  n  n  e  r

   E  n  g   i  n  e  e  r   i  n  g

   S  p  e  c   i  a   l   i  s   t

   S  a

   l  e  s

   A   d  m   i  n   i  s   t  r  a   t

   i  o

  n

© SAP 2009 / Page 63

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The storage tank management process reflects the mixing of two different

batch quantities to produce one new batch quantity in a tank storagelocation with a special process order type.

This scenario covers material CH-1010 (Acrylic resin) which is stored in the

storage tank 10Q3.

The regular procurement process leads to multiple material batches in the

storage tank although physically only one homogeneous material batch is

available.

The scenario describes how two batches of one material in the storagetank 10Q3 can be merged into one batch using a process order for mixing.

Stock determination is carried out automatically by a Process Control

System (values for fluid levels). In SAP Best Practices for Chemicals this

step is carried out manually

Scenario 916 - Storage Tank Management

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Scenario 916 - Storage Tank Management

Creating p rocess order 

Display stockoverview

Confirming processorder 

 Analy ze batc h-w here-

used list

   P  r  o   d  u  c   t   i  o  n   P   l  a  n  n   i  n  g

   E  n  g   i  n  e  e  r   i  n  g

   S  p  e  c   i  a   l   i  s   t

   S   h  o  p   F   l  o  o  r

   S  p  e  c   i  a   l   i  s   t

   W  a  r  e   h  o  u  s  e

   M  o  n   i   t  o  r

   i  n  g

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External Subcontracting covers manufacturing steps outsourced to a toll-manufacturer 

Scenario 918 - Subcontracting (External and

Internal) (external part)

Vendor: S-1003

Plant 1000 Vendor: S-9000

(subcontractor)

Purchase order for 

components with

delivery address tosubcontractor 

Invoice

Invoice

Delivery t osubcontractor 

Goods delivery

Delivery o f components

Purchse order 

CH-6210 (GranuSAP, 100 kg)

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Scenario 918 - Subcontracting (External and

Internal) (external part)

ReceiveMaterial at

Dock

Delivery PickList

GR/IR PPVVendor 

MRP = Material Requirements Plann ing, PO = Purchase Order, GR/IR = Goods Receipt/Inv oice Receipt, PPV = Purchase Price Variance

IncomingVendor 

Invoice

Delivery Note

Invoice Receipt

PickConfirmation

Goods ReceiptPost GoodsIssue

Create DeliveryRequest

CreateSubcontract PO

Inventory GR/IRSubcontracting

Services/Consumption

Print GR Slip

Requirement o f Subcontracting

Material

QualityInspection

Record Results

Stock transfer for subcontractor 

Create PO for Special Stock

SubcontractPO

Requirement of Material

(Component)

 Appr ov e PO

SubcontractPO

   B  u  y  e

  r

   W  a  r  e   h  o  u  s  e   C   l  e  r   k

   V  e  n   d  o  r

   Q  u  a   l   i   t  y

   S  p  e  c   i  a   l   i  s   t

   T   h   i  r   d   P  a  r   t  y

   E

  v  e  n   t

   A  c  c  o  u  n   t  s

   P  a  y  a   b   l  e

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In internal subcontracting, our company is provided with non-valuated

materials. Using existing resources and packaging materials, finishedmaterials are sent back.

The subcontracted receives the red paints (Paint, red; CH-0500,) as bulk,performs the filling of the Paint, red into canister CH-4200 and sends thefinished product (PowerPaint, red; CH-6800) back to the customer.

The material CH-4200 (Canister) is purchased by the subcontractor itself.

Manufacturing Planning for finished product (PowerPaint, red; CH-6800) iscontrolled through Planning Strategy YL (Assemble to Order strategy)

In Planning Strategy YL, a fixed planned order is created when a customer order (for finished product (PowerPaint, red; CH-6800)) is entered(assembly processing).

Special planned orders are created for PIR of finished product(PowerPaint, red; CH-6800) , which are converted into a process order when the sales order for the finished product CH-6800 is created

Planned Independent Requirements (PIR) for finished product(PowerPaint, red; CH-6800) are used to plan all dependent materials

Scenario 918 - Subcontracting (External and

Internal) (internal part)

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Customer 

Needs to BuyProduct

InventoryCOGS

 AR= Acco unt s Recei vabl e, COGS = Cost of Good s Sol d, MRP = Mater ial Req uir ement Plann ing

Delivery NoteOrder 

Confirmation

Pick List

BillingDocument

Billing

MRP

MRP List

PlannedOrders

Creating PlannedIndependent

Requirements

InventoryConsumption@ Standard.

Cost

ConvertPlanned Order 

to ProcessOrder 

Process Order Confirmation

Create DeliveryRequest

Post GoodsIssue

Beginning of 

PlanningCycle

 Avai labi lit yCheck of Non

ProvidedMaterials

Sales Order Entry

   C  u  s   t  o  m  e  r

   S  a   l  e  s

   A   d  m   i  n   i  s   t  r  a   t   i  o  n

   S  a   l  e  s   B   i   l   l   i  n  g

   W  a  r  e   h  o  u  s

  e

   C   l  e  r   k

   P  r  o   d  u  c   t   i  o  n   P   l  a  n  n  e  r

   S   h  o  p   F   l  o  o  r

   S  p  e  c   i  a   l   i  s   t

   E  v

  e  n   t

Scenario 918 - Subcontracting (External and

Internal) (internal part)

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Scenario 131: Stock Handling Scrap and Blocked

Stock

   E  v  e  n   t

   A  c  c  o  u  n   t   i  n  g

   Q  u  a   l   i   t  y   I  n  s  p  e  c   t  o  r

   /   W  a  r  e   h  o  u  s  e   C   l  e  r   k

Returnsand

Complaints(111)

Stock Transfer:Unrestricted to

Blocked

Non-Customer Related

Disposition(Production,

MRO)

StockScrapping:

Goods Issue toCost Center 

StockScrapping:

Goods Issue toCO-PA

Stock Transfer:Blocked to

Unrestricted

Scrap ExpenseInventory

Scrap ExpenseInventory

Returnsand

Complaints(111)

InspectProduct

InspectProduct

InspectProduct

Miscellaneoustransfers

InspectProduct

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SAP Best Practices for Chemicals – Highlights

Recipe management

Transformation of general recipes into PPPImaster recipe

Batch management

Classification

 Automatic batch number generation

FEFO batch determination

Batch derivation (from bulk to finished)

Production

Continuous production for bulk (rate routing)

Discontinuous production for filling

Process order creation

Process order confirmation

Special batch number assignment

Paperless production (PI sheet) SAP ODA (alerts and events)

Warehouse management

Full WM

Production supply areas

© SAP 2009 / Page 71

Quality management

Sample management

In-process controls

 Automatic lot creation at process order release

Post-process controls

QM notifications

Quality certificates check at goods receipt

Batch recall

Inspection costs coverage

Quality certificate at goods issue

Batch derivation

Results recording (incl. Digital signature)

Jump from PI sheet

Returns handling

Manual inspection lots

Recurring inspections

Model inspection at goods receipt

Control chart

Results copy

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Innovation Management & Manufacturing

Scenarios Demos

942 908

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SAP Help Portal – Documentation

http://help.sap.com/bp/industry/chemicals/

© SAP 2009 / Page 75

SAP B t P ti f Ch i l Offli

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http://service.sap.com/bp-demo

  Deonstrate & Experience  Chemicals

Notes:

• For downlo ading, you need to be signed into SSO

• You need to ins tall SAPTutor Player to play the files

• The tutori als follow each respective scenario Business Process Document (BPD)

SAP Best Practices for Chemicals – Offline

Demos

© SAP 2009 / Page 76

SAP B t P ti f Ch i l O li

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http://service.sap.com/bp-demo

SAP Best Practices for Chemicals - Online

Demos

© SAP 2009 / Page 77

SAP B t P ti f Ch i l C t t

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//service.sap.com/swdc

Go to: Download -> SAP Installations & Upgrades -> Entry by Application Group -> SAPBest Practices -> Best Practices for SAP All-in-One -> SAP BP for Chemicals

SAP Best Practices for Chemicals - Content

Download

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SAP B t P ti f Ch i l C t t

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Select the desired items and choose

 Add to Download Basket.

On the following screen, chooseDownload Basket.

SAP Best Practices for Chemicals - Content

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Thank you!

C i ht 2009 SAP AG

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