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Internal Product Development SAP Best Practices

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Page 1: Internal Product Development SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The business process

Internal Product Development

SAP Best Practices

Page 2: Internal Product Development SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The business process

© 2011 SAP AG. All rights reserved. 2

Purpose, Benefits, and Key Process Steps

Purpose The business process encompasses all steps necessary to setup and process a project to develop a new product. Furthermore, the scenario is supported by the main cost object controlling functions required, such as preliminary costing and period-end closing.

Benefits Project structuring Simplified preliminary costing for complex projects Revision levels ensure data consistency

Key process flows covered Document Management (Easy Document Management)

o Assign a document (KPR) to the material masters of the finished product Project Management

o Create a project based on a template Product Data Management with Engineering CM

o Create a change number for the design projecto Display the BOM of the new producto Redisplay the BOM (effects of change number)o BOM status managemento Assign revision level to the material master of the new product

Product Cost Controllingo Material cost estimate for the new product before and after BOM changes (effects of change on price is shown)o Material calculation

Project Closingo Record development (engineering) activitieso Closing and Settlement of project

Page 3: Internal Product Development SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The business process

© 2011 SAP AG. All rights reserved. 3

Required SAP Applications and Company Roles

Required Enhancement package 5 for SAP ERP 6.0

Company roles involved in process flows Project Manager Product Cost Controller Engineering Specialist Employee (Professional User) Enterprise Controller Asset Accountant

Page 4: Internal Product Development SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The business process

© 2011 SAP AG. All rights reserved. 4

Detailed Process Description

Internal Product DevelopmentThis scenario supports companies in designing new products.SAP Product Lifecycle Management provides the project management functions to collect all costs and documents for product development. The project provides a central structure for cost collection and documentation management. Transparent BOM handling and product data management functions help to turn the product specification into an engineering BOM that can be copied to create the production BOM. All project activities are recorded. The internal design department sets up a design proposal for the new product, which serves as the

basis for the product specification. The new material master and material BOM are created in the backend system. Later, the production

scheduler creates routing as a basis for production and calculation of the product. To check the price level specified from the marketing department for the new product, the product cost

controller calculates material costs using the BOM and routing. Since the estimated price exceeds the specified price limit, a component of the new product BOM is exchanged for a less expensive component using change management. The design department issues an engineering change master to collect and document all changes according the specification document.

Following a second costing run (cost estimate), the price meets the budget. Now the development status of the new product can be fixed by assigning a revision level.

At the end of the scenario, the internal design department records the activities it executed during the project, and finally closes the project.

The manufacturer creates a production BOM (by copying the engineering BOM (usage type 2) to the production BOM (usage type 1). QM in production, credit management and plant- and company closing.

Page 5: Internal Product Development SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The business process

© 2011 SAP AG. All rights reserved. 5

Process Flow DiagramInternal Product Development

Pro

ject

M

anag

erE

ng

ine

eri

ng

Sp

ec

iali

st

En

terp

rise

C

on

tro

ller

Mar

ket

ing

D

ep

t.

Create Material BOM (155.37)

Receive Design Request from Your Internal

Marketing Department

Design Request for a New Product

BOM = Bill of Material, DM = Document Management

Release Project

Receive Specification from Internal Marketing Dep. and

Create Doc. Info. Record

Create a Design Project

Assign Revision Level to Header Material of New

Product

Create Material Master for

Header Material

Create Engineering Change Master (ECM) for CAD

drawing

Create Document Info

RecordCreate Production

BOM from Engineering BOM

Link Document Info Record to Header

Material and Release Document

Activate Change Number

Create Routing (155.39)

Update Doc.Using CAD Document & assign to Header Material of New

Product

Create New Engineering Change

Master

Change BOM and Display BOM

Assign Revision Level

Record Working Hours

Approve Working Hours

Lock Engineering Change Master

Lock Engineering

Change Master

Product Design Process CAD Interface

Product Cost Estimate too High

Activate Change Number

Cost Estimate

Generate Settlemen

t Rule

Make BOM Costing Relevant

Pro

du

ct

Co

st

Co

ntr

oll

er

Period-End Closing “General” (181)

Create Cost Estimate with

Quantity Structure

Transfer Recorded

Data to Controlling

Complete Project

technically

Project settlement to CO-PA

Close completed

project

Reference and Simulation

Costing (187)Proceed Standard

Cost Calculation

(154)

Page 6: Internal Product Development SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The business process

© 2011 SAP AG. All rights reserved. 6

Process Flow DiagramProject Management

Em

plo

yee

(Pro

fess

ion

al

Use

r)P

roje

ct M

anag

erA

sset

s A

cco

un

tan

tE

nte

rpri

se

Co

ntr

olle

r

Record Working Hours

Approve Working Hours

Transfer Recorded Data to Controlling

(Optional) Direct Activity

Allocation

(Optional) Generate

Settlement Rule

Actual Settlement of Project to Profitability

Analysis (CO-PA)

Complete Project

Technically

(Optional) Create Asset

Maintain a Settlement

Rule

Actual Settlement of

Project to Asset

Management

Close Completed

Project

Period-End Closing for Plant (181)

Page 7: Internal Product Development SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The business process

© 2011 SAP AG. All rights reserved. 7

Legend

Symbol Description Usage Comments

To next / From last Diagram: Leads to the next / previous page of the Diagram

Flow chart continues on the next / previous page

Hardcopy / Document: Identifies a printed document, report, or form

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Financial Actuals: Indicates a financial posting document

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Budget Planning: Indicates a budget planning document

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Manual Process: Covers a task that is manually done

Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.

Existing Version / Data: This block covers data that feeds in from an external process

Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines

System Pass / Fail Decision: This block covers an automatic decision made by the software

Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.

Ext

erna

l to

SA

P

Business Activity / Event

Unit Process

Process Reference

Sub-Process

Reference

Process Decision

Diagram Connection

Hardcopy / Document

Financial Actuals

Budget Planning

Manual Process

Existing Version /

Data

System Pass/Fail Decision

Symbol Description Usage Comments

Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role.

The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario.

Role band contains tasks common to that role.

External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.

Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario.Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow.

Connects two tasks in a scenario process or a non-step event

Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario

Does not correspond to a task step in the document

Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario

Corresponds to a task step in the document

Process Reference: If the scenario references another scenario in total, put the scenario number and name here.

Corresponds to a task step in the document

Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here

Corresponds to a task step in the document

Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.

Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution

<F

unct

ion>

Page 8: Internal Product Development SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The business process

© 2011 SAP AG. All rights reserved. 8

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