Cement Sap Pp-Pi BBP - Img - PP

DOCUMENT APPROVALS
PRODUCTION PLANNING
BUSINESS BLUEPRINT
Submitted to
INDUSTRIES LTD.
By
LIMITED
APRIL 2010
VERSION 2.0
Industries Limited
Business Blueprint Production Planning
Name Responsibility Date Signature

PP Functional Consultant 20.04.2010
PP Module core team-Cement
PP Module core team-
Business Process Owner- Cement
Business Process Owner-
Business Process
Project Manager-
Project Manager-
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DOCUMENT INFORMATION
Project Name Document Name Document Location

Production Planning Business
Blueprint V 2.0
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DOCUMENT HISTORY
Version Document Date Author Reviewed BY Change

Name Control
1.0 PP Business 07.04.2010 Core Team Draft Version
Blueprint
Blueprint
Blueprint
2.0 PP Business 20.04.2010 Core Team Final Version
Blueprint
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TABLE OF CONTENTS
1 EXECUTIVE SUMMARY .................................................................................................. 7

1.1 BACKGROUND ................................................................................... 7
1.2 BUSINESS BLUEPRINT OVERVIEW ....................................................... 7
1.3 PRODUCTION PLANNING...................................................................... 9
2 ORGANISATION STRUCTURE ......................................................................................11
2.1 Plant ............................................................................................... 12
2.2 Storage Locations ............................................................................... 12
3 MASTER DATA...............................................................................................................14
3.1 Material Master .................................................................................. 14
3.1.1 Purpose ............................................................................................... 14
3.1.2 Structure, Key Data & Proposals for IMG ....................................................... 14
3.2 Bill of Materials .................................................................................. 16
3.2.1 Purpose ............................................................................................... 17
3.3 RESOURCE ..................................................................................... 20
3.3.1 Purpose ............................................................................................... 21
3.4 Recipe............................................................................................. 28
3.4.1 Purpose ............................................................................................... 29
3.5 Production Versions ............................................................................ 32
3.5.1 Purpose ............................................................................................... 32
4 BUSINESS PROCESSES ...............................................................................................33
4.1 Process industries – Process Orders ........................................................ 37
4.1.1 Purpose ............................................................................................... 37
4.1.2 Master Data .......................................................................................... 37
4.1.3 Features With Respect to IMG: ................................................................... 37
4.2 Process industries - Goods Issue for Production .......................................... 39
4.2.1 Purpose ............................................................................................... 39
4.2.2 Master Data .......................................................................................... 39
4.2.3 Features With Respect to IMG .................................................................... 39
4.3 Process industries - Order Confirmation .................................................... 40
4.3.1 Purpose ............................................................................................... 40
4.3.2 Master Data .......................................................................................... 40
4.4 Goods Receipt from Process order .......................................................... 41
4.4.1 Purpose ............................................................................................... 41
4.4.2 Master Data .......................................................................................... 41
4.4.3 Features With Respect to IMG: ................................................................... 41
4.5 Process order Settlement ...................................................................... 42
4.5.1 Purpose ............................................................................................... 42
4.5.2 Master Data .......................................................................................... 42
5 MODULE INTEGRATION ................................................................................................43
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5.1 Materials Management (MM) .................................................................. 43

5.2 Sales & Distribution (SD) ...................................................................... 44
5.3 Finance / Controlling (FI & CO) ............................................................... 45
5.4 Quality Management (QM) .................................................................... 46
5.5 Plant Maintenance (PM) ....................................................................... 47
6 STANDARD INFORMATION SYSTEM ...........................................................................49
7 TRANSACTIONS IN SAP ...............................................................................................50
8 ANNEXURE ....................................................................................................................51
8.1 GAP ............................................................................................... 51
8.2 Reporting Requirements ....................................................................... 51
Acronyms
SFG Semi finished goods
FG Finished Goods
BOM Bill of Material
MRP Material Requirement Planning
GI Good Issue
GR Goods Receipt
FERT SAP Material type code for Finished Goods /material
HALB SAP Material type code for Semi finished Goods / material
ROH SAP Material type code for Raw material
STO Stock transfer order
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1 EXECUTIVE SUMMARY
1.1 BACKGROUND
Established in the year with the motive to drive society towards modernization and
Urbanization, the group has established its strong presence in the areas of Cement,
Construction and Power.
Corporate Office located in the prime location with state-of-the-art infrastructure,
Corporate Office is equipped with the latest technologies available in the Industry.
The factory is located at with the state-of-the-art Technology and cement

machinery supplied by world renowned manufactures of Cement Machinery.
- One of the most efficient production parameters in Asia.

- Production capacity of 3.30 million tones per annum.
Grinding Unit in Vizag commissioned in and having VRM (Losche AG) & Blender with
cement producing capacity around 1.8 million tones per annum.
RMC and Brick Unit setup in Hyderabad commissioned in 2008 with RMC capacity of
1296 m3/day and Brick capacity of 45000 No.s/day
Products:
Ordinary Portland Cement 43 Grade
Ordinary Portland Cement 53 Grade
Pozzolona Portland Cement (Flyash Based)
Portland Slag Cement
Ground Granulated Blast furnace Slag (GGBS)
Ready Mix Concrete
Bricks
1.2 BUSINESS BLUEPRINT OVERVIEW
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This document summarizes the findings of the team and XXX Team, with respect to
SAP processes to be implemented in IMG.
Following activities were carried out during different phases of the project.
• Visited the plant at XXX
• Visited the RMC & Brick Unit at XXX
• Gap Analysis
• Stakeholders Workshop
• Business Blue print
The information contained in this blue print was gathered through above activities
during different phases of project i.e. Reviews of business processes, Business
procedures, Documentation and Relevant reports
The purpose of Business Blueprint document is to prepare to move forward with the
implementation of IMG SAP R/3 system. At the conclusion of the blueprint, IMG
team will determine the SAP functionality required to run the IMG business.
The Blueprint and its associated appendices present a summarized perspective of
all functional business processes that will be implemented. As such, the Blueprint
document will serve - from this point forward the dual role of both official project
scope as well as system acceptance criteria.
The body of this document describes the organizational structure, Master Data, and
R/3 functional process flows to be implemented at IMG Generally, requirements
that can be met using standard R/3 functionality through routine configuration
tasks are not explicitly documented. However, certain key requirements are
explicitly identified and summarized to highlight their importance to IMG and to
document the approach proposed to meet the requirement.
One section of the document summarizes identified gaps. The project team has
discussed this list with agreement on the approach going forward. Acceptable
approaches may require:
• Additional programming or technical effort
• Recognition and acceptance of procedural changes ("Workarounds") using
standard R/3 Additional resource commitment
• The deferral of a feature to a later phase
• Simply the recognition and accept the limitation of SAP Product.
Other section of the document summarizes Value SAP QA on Master Data and
Business Processes. These were used as per Value SAP Methodology to discuss the
IMG requirements in detail.
The Blueprint reiterates the R/3 organizational structures that have been identified
and will serve as the basis for the initial configuration activities. No significant
configuration and customization choices have been identified that will prevent the
future implementation of additional capabilities within the R/3 environment.
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The information gathered and documented in the Blueprint is sufficient for the team
to go forward into the Realization phase. However, it is critical that both the XXX
and IMG team agree on the scope of the project as presented in this document.
Acceptance - by both teams - is required to move the project into the next phase
1.3 PRODUCTION PLANNING
PP Logistics Flow in SAP

Procurement
Sales Info
Production
System
Long Term Planning Control
Sales & Oper Demand Order

MRP Production
Planning Mgmt Settlement
CO/PA
Inventory Costing
Capacity Planning
Production Master Data
Reporting and Analysis
Planning
Production Control
Current Implementation Scope for Production Planning module is as follows:
• Creation of Process Orders

• Releasing of Process Orders
• Confirmation of Process Orders
• Closing of Process Orders
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Flow logic of Process Order cycle:
Create Process Order
Release Process Order
Execute Process Order on

shop floor (production)
Raw Material Storage

Location
Book process against the

Production Order
Production Storage Location
SFG/FG Receipt
Close Process Order
Sales Dispatch
CREATION OF PROCESS ORDERS:
A process order defines which material is to be processed, at which location, at what time and
how much work is required. It also defines which resources are to be used and how the order
costs are to be settled.
Process Orders are created as per the monthly production plan at all the required stages of
manufacturing.
In case of Make to order the process order will be created based on Sales order.
RELEASING OF PROCESS ORDERS:
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Once the Process Order is generated, it is released for execution on shop floor, the materials
required (BOM) for the Process Order are reserved against that order.
CONFIRMATION OF PROCESS ORDERS:
Daily Production Punching (Confirmations) are done at day end in which the actual quantity of
SFG/FG produced, raw materials used and the activity done on each operation/work centre are
entered.
• Confirmation of the order means declaration of production against the order
• The order can either be confirmed partially or completely
• The confirmation can be done either at operation level or at order level
• Confirmation is possible of released order only
• Confirmation will result in stock up of product and reduction in stock of all the consumed
materials
• Confirmation for partial quantity takes place when complete planned quantity is not
ready to be confirmed.
CLOSING OF PROCESS ORDERS:
After the all necessary issues and receipts have been completed against the Process Order, at
the month end the order is closed. This closing means the system will restrict any Issue of
receipt of material on that order. After this only the Costing department can do the settlement of
cost incurred in producing the product.
2 ORGANISATION STRUCTURE
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2.1 Plant
This Organizational unit serves to subdivide an enterprise according to production,

procurement, maintenance, and materials planning aspects. It is a place where either material is
produced or goods and services provided.
The existing manufacturing plant in IMG and their proposed codes in SAP are listed below.
Plant Description Location
1111 Mellacheruvu Unit-1 Mellacheruvu, Nalgonda
1121 Vizag Grinding Unit Mulkalapalli, Vizag
1301 Ready Mix Unit-1 Patancheruv, Hyderabad
1401 Brick Unit-1 Patancheruv, Hyderabad
1302 Ready Mix Unit-2 Uppal, Hyderabad
2.2 Storage Locations

Storage location is an organizational unit allowing the differentiation of material stocks within a
plant. All data referring to a particular storage location is stored at storage location level. This
applies mainly to storage location stocks.
We will create all the existing Plants & storage locations in SAP for IMG.
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The below are the proposed storage locations which are used for production planning purpose.
(Storage Location Codes are to be decided by MM-Module Team)
Cement Plant:
Storage Location
Sr No. Codes Storage Location Description
1 XXX1 Lime Stone
2 XXX2 Crushed Lime stone
3 XXX3 Coal (Indigenous)
4 XXX4 Coal (Imported )
5 XXX5 Laterite
6 XXX6 Gypsum
7 XXX7 Fly Ash (Dry)
8 XXX8 Raw Meal
9 XXX9 PP Bags
10 XX10 Fine Coal
11 XX11 B F Slag
12 XX12 Clinker
13 XX13 43 Grade OPC (Bulk)
14 XX14 53 Grade OPC (Bulk)
15 XX15 PPC Cement Silo (Bulk)
16 XX16 Ground Clinker
17 XX17 GGBS
18 XX18 PSC
19 XX19 Packed Cement
RMC & BRICK:

Storage Location
Sr No. Codes Storage Location Description
1 XXX1 Crusher Sand-RMC
2 XXX2 River Sand
3 XXX3 20 mm aggregate
5 XXX5 Ad-mixture
6 XXX6 Cement-RMC
7 XXX7 Flyash-RMC
8 XXX8 Crusher sand-Brick
10 XX10 Gypsum
11 XX11 Cement-Brick
12 XX12 Flyash-Brick
13 XX13 Brick Stock yard
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3 MASTER DATA
3.1 Material Master
DEFINITION
The material master contains information on all the materials that a company procures or
produces, stores, and sells.
3.1.1 Purpose
It is the company's central source for retrieving material-specific data. This information is stored
in individual material master records.
For every material that your company uses, we must create a material master record in the
material master. A material number uniquely identifies this record.
3.1.2 Structure, Key Data & Proposals for IMG
The material master has a hierarchical structure corresponding to the organizational structure of
a company. Out of the various views available in Material Master Record, Basic Data and
Classification contains all the general information that will be applicable at Client level (i.e. for all
organizational units like Plant, Storage Locations etc., of IMG). Other information is organization
unit specific. Thus, master data for materials that are required at several Plants will be extended
to (i.e. specified for) each of these Plants. For example material code for PPC cement should be
common for all plants. Hence corresponding plant specific views are required to extend to all
required plants.
Besides the Basic Data and Classification views, Production Planning will use master data in
MRP (MRP 1 / 2 / 3 / 4) and Work Scheduling views for those materials relevant for Production
at IMG.
Production Storage Location: Issue Storage Location - If the material is a component, it is the
issuing storage location to which a back flush is posted. If the material is produced, it is the
receiving storage location to which the receipt of the material is posted. System will propose this
storage location automatically during the GI/GR with reference to a process order.
Note: For Further Details of Material Master please refer MM-Module BBP
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Events
• Creation/Changing Material master records
• Information to be provided by different departments
• Changing material master data
• Extending material master to different organizational units
• Creation of new valuation types
Functions
• Collection of relevant master data to be entered into the system.
• Centralized creation of new material codes
• Extension of material master to organizational units/ valuation types
• Changing of material master records to reflect the required scenario.
In the implementation for IMG,
In IMG Below are the Raw Materials, Semi finished and Finished Material Identified in
Production.
Cement Raw Materials:

1) Laterite
2) Coal
3) Gypsum
4) Flyash (Dry)
5) B F Slag
6) PP Bags
Note: Clinker will be raw material in Vizag Grinding Unit.

RMC & BRICK Raw Materials:
1) Crushed Sand
2) River Sand
3) 20 mm Coarse Aggregate
6) Cement
7) Flyash
8) Admixture
9) Water
10) Gypsum
11) Silica fume (For High Grade Concrete)
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Cement-Semi finished Material:

1) Lime Stone
2) Crushed Lime Stone
3) Raw Meal
4) Fine Coal
5) Clinker
6) Ground Clinker
7) Ground granulated blast furnace slag (GGBS)
Note: Lime Stone here is considered as Semi finished material and not as Raw material as
it is self extracted and not bought out. To achieve the cost incurred in extraction of
Limestone we will consider it as semi finished material without BOM but with Operation
activities.
Cement-Finished Material:
1) 43 Grade Loose Cement
2) 53 Grade Loose Cement
3) PPC Loose
4) PSC Loose
5) 43 Grade Packed Cement
6) 53 Grade Packed Cement
7) PPC Packed Cement
8) PSC Packed Cement
9) GGBS Packed
10) GGBS Loose
RMC & Brick-Finished Materials

1) Ready Mix Concrete (Recipe Wise)
2) Brick (Mould wise)
3.2 Bill of Materials
DEFINITION
A formally structured list of components that make up a product or assembly. The list contains
the object number of each component, together with the quantity and unit of measure.
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3.2.1 Purpose
Material BOMs are used in their different forms in various situations where a finished product is
assembled from several component parts or materials. Depending on the industry sector, they
may also be called recipes, charge-mix or lists of ingredients. They contain important basic data
for numerous areas of a company, for example:
• MRP
• Material provisions for production
• Product costing
The data stored in Bill of material serves as a basis for production planning activities such as:
• A material requirements planning function explodes Bill of material on a certain date to

calculate dependent order quantities for dependent materials based on lot sizing
procedure.
• A production function (e.g. manufacturing module in a unit, department in charge) uses
Bill of material.
o As a basis for operation planning and production control.

o To plan the provision of materials on the shop-floor based on the day’s
production.
The data stored in Bill of material can also be used in other activities in a company such as:
• Reservation and goods issue - as an aid to data entry.

• Product costing - to calculate the costs of materials required for a specific product.
BOM Structure:
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BOM data is structured as follows in the SAP R/3 System:
• The BOM header contains data that applies to the entire BOM (e.g. BOM usage,
Technical Type, Plant, BOM group no., Validity period, base quantity, BOM status –
active / inactive).
• The BOM Items Overview contains a list of all the BOM items (single level).
• BOM item details screen contains data that only applies to a specific component of the
BOM.
• Sub-items overview screen contains data on the different installation points for partial
quantities of an item.
Some of the key data contained in a BOM is:
At the BOM header level,
BOM affectivity:
In standard SAP, validity areas and periods are used to define the precise conditions under
which a Bill of material is valid in different usage areas (like Production, Engineering) of a
company.
Validity Area: Refers to the organizational level at which a BOM is applicable. The area of
validity can be:
• Plant specific BOM – for MRP, production scheduling etc.
Validity Period: is the time during which the BOM header or BOM item is valid.
Technical Type:
Used to classify BOMs, In case more than one BOM exist for a material or if there are several,
almost identical BOMs for different products (variants). The R/3 System supports two technical
types of BOM to represent similar product variants and production alternatives:
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• Multiple BOMs - A multiple BOM groups together several BOMs that describe one
object (for example, a product) with different combinations of materials for different
processing methods.
BOM Usage:
The BOM usage allows you to maintain BOMs for specific sections of your company. In the
case of IMG the standard SAP usage will be used. We will create Production BOM for all the
Finished Material (FERT) and Semi Finished Material (HALB).
The BOM Items Overview contains the data that has to be specified for all item categories for
example:
• Item no.
• Item category
• Material no. and other related data (e.g. material description, unit of measure that are
picked up by the system from the material master)
• Quantity
It also indicates whether sub-items are specified for the items, whether the item has its own
BOM, change no. and validity.
BOM item details screen include,
• Relevance for costing

• Alternative items group
• MRP data (e.g. lead time offsets, special procurement type)
• Provision indicator (e.g. customer provided / to be provided to sub-contractor)
• Variable-size item data
• Document assignments
• We will be creating BOM for all the Semi finished (HALB) material and Finished Material
(FERT) except Lime Stone which will not have BOM .
• We can also create multiple BOM wherever applicable eg. PSC in Vizag can be created
with Blender and VRM, so two BOMS will be there to produce PSC.
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• FERT & HALB material types are allowed as BOM header.

• HALB, ROH (Raw Material), material types are allowed for the BOM components.
• RMC will have recipe (Grade) wise BOM.
• Brick will have moulded wise BOM.
NOTE: In RMC Unit Bill of Material needs to be interfaced with SAP. The Recipe data entered in
the SCHWING STETTER Software MCI 360 Master Screen should be copied in SAP BOM
transaction, to avoid manual entry of same data again in to SAP.
This will be subject to the compatibility of both SAP and Schwing Stetter Software and the
required development in SAP.
3.3 RESOURCE
DEFINITION
Operations are carried out at a resource. In the SAP R/3 System Resource are business objects
that can represent the following:
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• Machines, machine groups

• Processing units
3.3.1 Purpose
Together with Bill of material and Recipe (discussed in next section), Resource belong to the
most important master data in the SAP R/3 production planning and control system. Resource is
used in task list operations and work orders. Task lists are for example recipe, maintenance
task lists and inspection plans. Work orders are created for production, quality assurance, and
plant maintenance.
Data in Resource is used for the following functions in Production & Planning:
• Capacity planning - the available capacity and formulas for calculating capacity
requirements are entered in the Resource.
• Scheduling - formulas for calculating lead times for setup, processing, teardown
(dismantling setup) are entered in the Resource, so that the duration of an operation can
be calculated.
• Costing - formulas are entered in the work center, so that the costs of an operation can
be calculated. A Resource is also assigned to a cost center.
Data in Resource is also used for simplifying operation maintenance.
• Various default values (default Unit of measures for parameters) for operations can be
entered in the Resource. These values can be copied into Recipe while creating /
changing them.
A Resource is created for a plant and is identified by a key (unique code). The Resource
category, determines which data can be maintained in the resource. The following resource
categories are proposed for IMG:
Resource Description Resource Category

Processing unit 0008
Logical Flow for Resource Creation
New Work Center Whether existing

has been Work Center is
procured to be modified
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The data is grouped together in screens and screen groups. Examples of such screen or screen
groups are:
• Basic Data
• Default values
• Capacities
• Scheduling
• Costing
In the Basic data screen you enter various data, such as:
• Resource Description
• Person responsible
• Task-list usage: a key to specify the task-lists (e.g. routings, rate routings, inspection
plans etc.) for which the work center may be used.
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• Standard Value Key: a four-character key used to specify the standard value
parameters (like processing time, delays) used to depict the operation for capacity
requirements and lead time calculations.
In the Default Values tab page, default values are specified which are then copied when you
assign the Resource to the operation or sub-operation in a recipe. In case of IMG the relevant
default values parameters are:
• Control Key: a four-character key used to specify the standard value parameters used
to depict the operation for capacity requirements and lead time calculations.
• Default Units of Measure: for the standard value parameters like for Power KWH &
processing time in hours etc...
In the Capacities tab page the capacity data for up to two different capacities associated with
the work center are specified. This data includes:
• Capacity Category: A three number key that specifies the nature of capacity e.g. a
machine or labor capacity.
• Formula keys for formulae for computing the planned capacity requirements.
• For each capacity category, the available capacity can be specified in a capacity details
screen. The available capacity may be described as:
• Standard Available Capacity: Available capacity of a capacity category that is valid

indefinitely as long as an interval of available capacity has not been activated, OR
• Version of Available Capacity: Available capacity that, if it has been activated, is used
instead of the standard available capacity for scheduling and capacity planning.
o It is defined as an ‘Interval of Available Capacity’ in an available capacity version

that replaces the standard available capacity for a certain period. Capacities in
an interval of available capacity are only available on the working days as per the
shift definitions within the validity period.
Besides available capacity, for each capacity category the following additional planning data
may be specified:
• Whether capacity is relevant for finite scheduling?

• Overload %: Entry you use to control the percentage by which the load may exceed
available capacity, during finite scheduling?
• Whether it can be used for several operations?
• Whether the capacity may be used in Long Term Planning?
In the Scheduling tab page you can enter the following scheduling data in Resource:
• Scheduling basis: The scheduling basis is a capacity (machine / labor) whose

operating time is to be used for scheduling orders.
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• Formulas: You use formulae to calculate the execution times of operations in production
orders using standard values.
• Interoperation times: The interoperation time is the time between leaving one work
center and beginning the operation at the next work center. It consists of the move time
and the queue time before processing starts.
• Dimension and units of measure for internal processing operations.
In the Costing tab page, by entering the following data we can get the cost of activities
performed at the resource.
• The cost center and the validity period.

• For every standard value a formula key and an activity type. The system calculates the
activity quantities from the formulas and the standard values. CO Controlling can then
evaluate these using the activity prices.
Processing costs for a product produced at the work center can be settled to the product.
In the implementation for IMG:
• We will be creating all the major equipments like Crusher, Raw mill, Coal Mill, Cement
Mill etc as Resource in SAP. The resource will be created with respect to each and
every processing unit. In IMG the below resources are identified for the plant
CEMENT Plants
SAP Name(8 Digits only) Resource Description

MINES001 Mines
CRUSHR01 Crusher
RAWMIL01 Raw mill - Pulverization
COALMIL01 Coal mill - Grinding of raw coal
KILN0001 Kiln - Clinkerization
CEMMILL1 Cement mill - Cement grinding
CMNVRM01 Cement mill VRM (VGU)
BLENDR01 Blender
PACKUNIT Packing
RMC & Brick Plants
SAP Name(8 Digits only) Resource Description

RMUNIT01 Ready Mix Unit-1
RMUNIT02 Ready Mix Unit-2
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BMUNIT01 Brick Manufacturing Unit-1
• The corresponding plant specific cost centre will be assigned to each resource so that
the consumption can be posted against each resource. The below cost centers are
identified for the production resources. (Cost Center Codes to be finalized by CO-
Module Team).
Resource SAP Cost

Name center
MINES001 XXXX1
CRUSHR01 XXXX2
RAWMIL01 XXXX3
COALMIL01 XXXX4
KILN0001 XXXX5
CEMMILL1 XXXX6
CMNVRM01 XXXX7
BLENDR01 XXXX8
PACKUNIT XXXX9
RMUNIT01 XXX10
RMUNIT02 XXX11
BRUNIT01 XXX12
Work Work Centre SAP COST

Centre/Resource Code CENTER Activities to be captured
Mines- MINES001 XXXX1 Mtrs. Of Hole Drilled
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Number of Blasts Done

Power
Powder Factor
Royalty
Cess
Labor
Admin Over heads
Factory Overheads
Crusher CRUSHR01 XXXX2 M/c Hrs

Power
Labor
Admin Over heads
Factory Overheads
Raw Mill RAWMIL01 XXXX3 M/c Hrs

Power
Labor
Admin Over heads
Factory Overheads
Coal Mill COALMIL01 XXXX4 M/c Hrs

Power
Labor
Admin Over heads
Factory Overheads
Grinding Media
Kiln KILN0001 XXXX5 M/c Hrs

Power
Labor
Admin Over heads
Fuel
Factory Overheads
Refractory
Cement Mill CEMMILL1 XXXX6 M/c Hrs
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Power
Labor
Admin Over heads
Factory Overheads
Grinding Media
Packing Unit PACKUNIT XXXX7 M/c Hrs

Power
Labor
Admin Over heads
Factory Overheads
Coal Mill (VGU) COALMIL01 XXXX8 M/c Hrs

Power
Labor
Admin Over heads
Factory Overheads
Grinding Media
VRM (VGU) CMNVRM01 XXXX9 M/c Hrs

Power
Labor
Admin Over heads
Factory Overheads
Refractory
Blender (VGU) BLENDR01 XXX10 M/c Hrs

Power
Labor
Admin Over heads
Factory Overheads
Packing (VGU) PACKUNIT XXX11 M/c Hrs

Power
Labor
Admin Over heads
Factory Overheads
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Work Work Centre SAP COST

Centre/Resource Code CENTER Activities to be captured
Ready Mix Unit RMUNIT01 XXXX8 Mixing unit Running Hrs

Power Consumed
Ready Mix Unit RMUNIT02 XXXX9 Mixing unit Running Hrs

Power Consumed
Brick Manufacturing
Unit BMUNIT01 XXX10 Brick unit Running Hrs
Power Consumed
Note: The available capacity is maintained in terms of working hours. In IMG 24hrs capacity is
available for all the resources.
3.4 Recipe
DEFINITION
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A recipe is a description of which operations (process steps) have to be carried out and in which
order to produce a material (product).
In a recipe we specify,
• The operations (work steps) to be carried out during production.
• The Resource used.
• Based on the resource standard values for the execution of individual operations i.e. the
activities to be performed in the operations as a basis for scheduling, capacity
requirements and costs.
• The component materials required at an operation (optional).
• The required production resources and tools (includes jigs and fixtures) at each
operation (optional).
• The quality checks to be carried out during production (optional).
In the SAP R/3 System recipe have the same basic structure as Inspection plans, Maintenance
plans etc., Therefore, recipe are cumulated with such objects under the super ordinate term
Task list.
3.4.1 Purpose
A recipe is used as a source for creating a process order or a Planned Order (by copying) as
well as a basis for product costing.
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A recipe is composed of a header and one or more operations. A recipe group comprises of one
or more recipe. A particular recipe is identified by its group and group counter. Recipe data is
organized in a header and several overview and detail screens.
• The header contains data that is valid for the whole recipe. For instance, information
about
o The status and use of the recipe

o General parameters for quality checks during production
o The validity period
You can call up the following information from the header:
o Details about assignments of material component to the recipe. That is, about the
materials those are produced by the recipe.
o A long text for a more detailed description of the recipe.
• The operation overview is the central screen for recipe maintenance. From here we can
branch to the header, the detail screens for operations as well as other overviews for
recipe. The operation overview contains, for instance,
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o Operations and phases, which describe the process steps in the recipe.
o The resource where they are carried out.
o A short description of the process step.
• On the detail screens for operations and phase you can find data that is relevant to
individual operations or phase, such as,
o Details about external processing or personnel qualifications

o Standard values and other information for scheduling
o Parameters for quality checks during production
o The relationship between various phases of the recipe
• Further overview screens exist for the assignments and assignments to each operation
or phase. An overview is presented of the following objects that are relevant for a
process step:
o Material components
o Inspection characteristics
The additional information for each assignment or assignment is contained on the

relevant detail screen. This could be scheduling data for secondary Resource or control
indicators for inspection characteristics.
• Master recipe will be used for both HALB as well as FERT material.
• Operations and sub operations will be maintained where ever required with respect to
the cost capturing.
• There will be multiple recipes for materials which are produced using more than one
resource eg. If OPC 43 grade cement can be produced in Cement Mill-1 and Cement
mill-1A, then OPC 43 grade cement will have two recipes with both the mills.
• RMC & Brick Unit will be having one recipe for each finished product as there is no
alternate machine to produce the same.
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3.5 Production Versions
DEFINITION
The production version determines the different production techniques that can be used to
manufacture a material.
3.5.1 Purpose
A material may have several Bill of material (BOMs) that determine the components used in its
production. The production process can also be described in various recipes. Data on the
different methods or techniques used to produce the material is recorded in production versions
that are assigned to the material.
Production versions allow you to cater for different situations:
• Production using different resources (for example two different production lines).
• Production of the same product using different BOMs (alternative BOMs – for example
concurrently valid old and new BOMs for a particular assembly).
Individual production quantities can be assigned to the different production versions, in order,
for example, to achieve a balanced utilization of the various alternative production lines. This
can be done by the user on an interactive basis, or automatically within the framework of the
planning run.
A production version defines the following data, for example:
• Alternative BOM and BOM usage for BOM explosion.

• Task list type, group, and group counter for allocation to recipe.
• Lot-size restrictions and period of validity.
• Production line on which production is carried out.
A material can have one or more production versions. Data relating to individual production
versions is located at plant level.
• Production version will be created as per the Resources used.

• In Mellacheruvu Plants till Clinker production will have one version as there is individual
Machinery/Resource for the same. Bulk cement and Packed cement will have versions
as per the cement mills and packers used for the production.
• RMC & Brick will be having a single production version as there is single resource for
production.
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4 BUSINESS PROCESSES
IMG Production Process Flow
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4.1 Process industries – Process Orders
4.1.1 Purpose
Process orders are the fundamental part of Production Planning and Control. PP is fully
integrated in the Logistics component and has, among others, interfaces to
• Sales and Distribution (SD)

• Materials Management (MM)
• Cost Controlling (CO)
• Finance (FI)
• Quality Management (QM)
Process order consists of details like:
• What is to be produced?
• When production is to take place?
• What materials are required?
• What all resources are required?
• How much does production costs?
4.1.2 Master Data
• Maintain Material Master with work Scheduling View.

• Order Types are to be defined.
• Production Schedulers has to be maintained.
• Maintain BOM, Recipe and Production Version.
4.1.3 Features With Respect to IMG:

Process Orders at each stage (for all Semi Finished and Finished Material) to be created
according to monthly production plan.
Master data i.e BOM and Recipe will get copied to the respective Material process order
automatically.
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Cement: Process orders to be created

MELLACHERUVU UNIT-1, 2 & 3 :
Limestone one order in each unit

Crushed Limestone one order in each unit
Raw meal one order in each unit
Fine Coal one order in each unit
Clinker one order in each unit
Bulk Cement grade wise mill wise orders in each unit
Packed cement Packer wise, grade wise, bag type wise and colour wise orders in each
unit.
VAIZAG GRINDING UNIT:
Ground clinker one order

GGBS one order
PSC two orders i.e one for blender production and one for VRM production
Bulk Cement grade wise mill wise orders in each unit
Packed cement Packer wise, grade wise, bag type wise and colour wise orders
Fine coal one order
RMC UNIT:
As RMC is a Make to Order Scenario, Process orders will be created for each recipe
with respect to the sales order for each customer.
BRICK UNIT:
Mould wise Orders to be created manually as per the monthly plan.
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4.2 Process industries - Goods Issue for Production
4.2.1 Purpose
When we release process order, the system automatically generates a reservation for the
required raw material like Laterite, Gypsum etc. Each material component of the order
receives a separate item number within the reservation. We can only withdraw the reserved
materials from the warehouse if the operation to which the materials are assigned in the order
has already been released. By this the Inventory is get updated (decreased).
4.2.2 Master Data
• Respective BOM has to be created.

• Respective Recipe has to be maintained.
4.2.3 Features With Respect to IMG
Cement Plants & Brick Unit:
Goods issue to be done for the process order for the day. System will propose the
standard BOM quantities while confirming the process order. Flexibility of changing the
quantities will be available as per the actual quantity consumed in the process.
Goods can be issued or taken back separately (using separate Transaction) with
reference to the process order if required.
This will update the Raw material and Semifinished stock in each unit.
The Daily production Report will be based on the above entries done
RMC UNIT:
Consumption of the raw materials in RMC, SAP need to be interfaced with the
SCHWING STETTER Software MCI 360 Master Screen.
The Batch data coming from the SCHWING STETTER Software MCI 360 Master Screen
needs to be captured in SAP to update the stock.
This will be a interface development in SAP.
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4.3 Process industries - Order Confirmation
4.3.1 Purpose
A confirmation documents contains the processing status of orders, operations, phases and
individual capacities. It is an instrument for controlling orders.
With a confirmation we specify,
• The quantity in a phase that was produced as yield,
• How much work was actually done?
• Which resource was used for the operation?
• Various activities consumptions like running hrs and power etc?
Exact confirmation soon after completion of a phase is essential for realistic production planning
and control.
We can enter confirmations for
• An order
• A Phase
4.3.2 Master Data
• Confirmation Parameters are to be defined.
• Daily Production Punching (Confirmations) are done at day end in which the actual quantity of
SFG/FG produced, raw materials used and the activity done on each operation/work centre are
entered.
• Confirmation of the Process order is done operation/Work Centre Wise.
• Goods Issue against process order are done during Confirmation of process order. If any other
materials which are not included in the BOM are to be issued on the order can be done by
Stores or any other person who is authorised.
• Goods Receipt will be done automatically while confirmation process.
• Machine Running Hrs and the Power consumption at each stage will be recorded during the
production confirmation.
• Machine stoppage hrs and reasons will be captured in Plant maintenance Module of SAP.
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4.4 Goods Receipt from Process order
4.4.1 Purpose
The Goods Receipt for a Process order is to declare the Process of finished goods or
Intermediate. By this the Inventory is get updated (increased).
Goods movements can be created with a confirmation:
• Back flush:
If we confirm an order / operation with components that have the Back flushing indicator
set, the system automatically posts a goods issue for these components.
• Automatic Goods Receipt:
If the control key of the operation being confirmed specifies automatic goods receipt, the
system automatically posts the produced material to stock.
• Manual good Receipt:

By this, control can be kept on declaring the Process.
4.4.2 Master Data
• Maintain Control Key for Auto GR

• For automatic GR default Storage location has to be maintained.
• For Back flush in routing activation has to be done
4.4.3 Features With Respect to IMG:
In IMG, we will be making goods receipt for the following

• During Production Order confirmation actual material consumed (Goods issued) and the
activities are to be entered. Also the SFG/FG is put in to stock automatically (Auto Goods
Receipt) as soon as the Last operation is completed.
• In RMC the ready mix concrete production will be qty needs to be entered and the
consumption of raw materials for the same will be automatically captured from the existing
system as per the development. This will generate the Ready Mix Concrete required for the
devlivery.
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4.5 Process order Settlement
4.5.1 Purpose
When a process order is settled, variance cost incurred for the order is settled to one or more
receiver cost-objects (for example, to the account for the material produced / sales). Offsetting
entries are generated automatically to credit the process order:
• If the costs for the process order are settled to a material account, the order is credited
each time material is delivered to stock. The material stock account is debited
accordingly.
• If the costs for the process order are settled to another receiver (for example to a sales
order), the order is credited automatically at the time of settlement. The cost-objects are
debited accordingly.
The debit posting remains in the order and can be displayed even after the costs have been
settled. The settled costs are updated in the corresponding receiver cost-object (price
difference/inventory) and can be displayed in reporting.
4.5.2 Master Data
• Pre-requisite: All Process Orders are to be technically closed.
In IMG (Cement units and Brick units), At the end of every month all the Process Orders need
to be “Technically Completed (TECO)” by Process department for settlement by Costing
department at the end of every month
Once the process orders are technically completed, Settlement of the Orders will be carried out
by controlling.
In RMC the process orders will be closed when the sales quantity is satisfied completely as it is
directly linked to the sales order.
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5 MODULE INTEGRATION
The Process Planning and Control module is fully integrated with other modules of SAP R/3.
The continuous exchange of information with other application areas in the R/3 System ensures
a real time database. Fully integrated processing helps us to optimize Process Planning and
Execution within the company.
Considering the specific requirements of IMG, the SAP PP module will be integrated with other
modules.
5.1 Materials Management (MM)
The broad level integration with MM module is,
• Material Master
• Inventory Management
• Procurement of materials
During PP business processes integration with MM module will be during goods issues i.e.
withdrawal of raw materials for process from a particular location. At that time the inventory for
the material at the respective storage location will be reduced in terms of stock as well as value.
For every process order of Cement, we will be doing goods issue as well as goods receipt from
the order. When we issue the material (Ex: Clinker) to the order the stock of the material is get
reduced from the storage location there by the plant inventory gets reduced. The system
generates a material document for this purpose from MM module. At the same time when we
receive the material in Silo, the plant inventory goes up to that quantity. Here also system
creates a material document.
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Materials with Reorder level will be planned by MRP (Material Requirement Planning) in SAP.
This will generate automatic Purchase Requisition or Purchase Orders for the required Qty.
Detail procedure explained in MM Module BBP.
Goods receipt of any material incoming in plant will be posted by respective unit stores.
Consumable materials and Maintenance related materials like Grinding Media, Refractory’s will
be issued on respective cost centers through MM Module by stores.
5.2 Sales & Distribution (SD)
The broad level integration with SD module is for,
In IMG make-to-stock Gross requirements strategy will be used. In this strategy stock delivery to
customer requirements (sales order/STO) is from the unrestricted use stock. Specific customer
requirements are not considered for the planning and process.
Cement packing in IMG:
Packing and loading is carried out based on the vehicle placement slip which is printed based
on delivery. After packing packer number is manually written on vehicle placement slip and in
turn it will be entered in the delivery as loading point. Physical stock of packed cement is not
maintained in stock but in SAP delivery is not possible without stock posting into storage
location. Hence GR of packed cement is to be done before doing the delivery to sales
order/STO.
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In Cement Plant and Brick unit there is no link of Sales order with the Process orders as these
are Make to stock production scenario.
In RMC Sales orders will be created in SD Module for each customer and this sales order is
used for creating a process order by running the MRP (Material Requirement Planning) for that
sales order.
5.3 Finance / Controlling (FI & CO)
The broad level integration with FI & CO module is for,
• Cost center / Activity type/Price Planning.

• Process/Process order costing.
• Order settlement.
For example:
On every Goods issue and Goods receipt an accounting document is generated which book the
cost of material to respective Process order.
In case of Profitability Analysis (CO-PA) required details (e.g. sales plan) are maintained in CO
and it is transferred to / from Sales & Operation Planning (SOP) in PP. These details are further
used for LTP as well as reference to rolling plan.
During Process Booking the Activities (Overheads or indirect cost) are settled to respective
Process order during settlement at the month end.
Blasting cost is based on the explosives issued to the blasting cost center and this cost is
booked to the process based on the tonnage of process.
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5.4 Quality Management (QM)
The broad level integration with QM module is…
• Inspection plan can be incorporated into the recipe by attaching Inspection

Characteristics to phases.
• An inspection lot (for in-process inspection) can be automatically created when a
process order is released.
Thus, in-process inspection can be done during process execution and goods from process can
directly post to unrestricted use stock.
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In IMG inspection lot is created during process order release for inspection types of in-process
and GR inspection from process. In-process and GR from process inspection types are used for
all HALB materials except for crushed limestone. For crushed lime stone manual inspection lot
will be generated.

Semi finished and Finished Products production entries will generate the Quality inspection lot,
on which the results can be recorded.
5.5 Plant Maintenance (PM)
The broad level integration with PM module are for,
• Resource availability
• Capturing of break-down hrs / down hrs
In IMG, Resources have to be assigned to the equipment (in plant maintenance) for the purpose
of blocking the resource availability to process.
For each Equipment, by maintaining parameters (related to Plant Shutdown), the corresponding
resource can be flagged as ‘Available / Not Available’. During process machine hours
requirement checking ‘Available / Non Availability’ will be considered.
In Plant maintenance, fuel/spare parts consumptions are booked to the cost center
attached to equipment. This cost is booked to the process quantities based on the
cost center/activity rate.
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Cement Plant:
Kiln Refractory and HAG Refractory (VGU) maintenance will be done by the production
personals, the maintenance procedure is to be referred from Plant Maintenance Module BBP.
Stoppage Hrs and Reasons can be entered in the Plant maintenance Module.
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6 STANDARD INFORMATION SYSTEM

Standard Information Systems for Process planning – process industries are as below:
S. No. Report Name Transaction Code

1 Order Info System ( details on process order ) COOISPI
2 Order Info System-PI( details on process order ) COID
3 Process Order Overview CO26
4 BOM Level by Level Report CS11
5 Multi-Level BOM CS12
6 Summarized BOM Report CS13
7 BOM Comparison Report CS14
8 BOM Where Used List CS15
9 Material List MM60
10 Stock Overview MMBE
11 Work center List Report COR5
12 Work center Where used List CA80
13 Order Report MD4C
14 Material Usage Analysis MCRE
15 Material Doc List MB51
16 Display Warehouse Stock Report MB52
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7 TRANSACTIONS IN SAP
Activity Transaction
Masters
Material Master creation MM01
Material Master change MM02
Material Master Display MM03
BOM creation CS01
BOM change CS02
BOM display CS03
Resource creation CRC1
Resource change CRC2
Resource display CRC3
Work center creation CR01
Work center change CR02
Work center display CR03
Routing creation CA01
Routing change CA02
Routing display CA03
Recipe creation C201
Recipe change C202
Recipe display C203
Process version creation C223
Execution
Process order creation COR1
Process order change COR2
Process order display COR3
Process order confirmation COR6N/COR6
Goods issue for the order MB1A
Goods receipt for the order MB31
Confirmation Cancellation CORS
Display Confirmation CORT
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8 ANNEXURE
8.1 GAP
Cement production process is mapped through the standard system only. So

there is no gap identified for Cement manufacturing.
RMC Production
1) Recipe creation Interfacing SAP and SCHWING STETTER Software MCI 360
Master Screen.
2) Raw material consumption Interfacing SCHWING STETTER Software MCI 360
Master Screen and SAP
8.2 Reporting Requirements
Reports required need to be given by IMG
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Cement Sap Pp-Pi BBP - Img - PP

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DOCUMENT APPROVALS

Name Responsibility Date Signature

Project Name Document Name Document Location

Version Document Date Author Reviewed BY Change

1 EXECUTIVE SUMMARY .................................................................................................. 7

5.1 Materials Management (MM) .................................................................. 43

The factory is located at with the state-of-the-art Technology and cement

- One of the most efficient production parameters in Asia.

1.2 BUSINESS BLUEPRINT OVERVIEW

1.3 PRODUCTION PLANNING

PP Logistics Flow in SAP

Sales & Oper Demand Order

Production Master Data

Reporting and Analysis

Current Implementation Scope for Production Planning module is as follows:

• Creation of Process Orders

Flow logic of Process Order cycle:

Create Process Order

Release Process Order

Execute Process Order on

Raw Material Storage

Book process against the

Close Process Order

CREATION OF PROCESS ORDERS:

RELEASING OF PROCESS ORDERS:

CONFIRMATION OF PROCESS ORDERS:

CLOSING OF PROCESS ORDERS:

This Organizational unit serves to subdivide an enterprise according to production,

Plant Description Location

1111 Mellacheruvu Unit-1 Mellacheruvu, Nalgonda

1112 Mellacheruvu Unit-2 Mellacheruvu, Nalgonda

1113 Mellacheruvu Unit-3 Mellacheruvu, Nalgonda

1121 Vizag Grinding Unit Mulkalapalli, Vizag

1301 Ready Mix Unit-1 Patancheruv, Hyderabad

1401 Brick Unit-1 Patancheruv, Hyderabad

1302 Ready Mix Unit-2 Uppal, Hyderabad

2.2 Storage Locations

RMC & BRICK:

3.1 Material Master

3.1.2 Structure, Key Data & Proposals for IMG

In the implementation for IMG,

Cement Raw Materials:

Note: Clinker will be raw material in Vizag Grinding Unit.

Cement-Semi finished Material:

RMC & Brick-Finished Materials

3.2 Bill of Materials

• A material requirements planning function explodes Bill of material on a certain date to

o As a basis for operation planning and production control.

• Reservation and goods issue - as an aid to data entry.

3.2.2 Structure, Key Data & Proposals for IMG

BOM data is structured as follows in the SAP R/3 System:

Some of the key data contained in a BOM is:

At the BOM header level,

• Plant specific BOM – for MRP, production scheduling etc.

BOM item details screen include,

• Relevance for costing

In the implementation for IMG,

• FERT & HALB material types are allowed as BOM header.

• Machines, machine groups

3.3.2 Structure, Key Data & Proposals for IMG

Resource Description Resource Category

Logical Flow for Resource Creation

New Work Center Whether existing

• Standard Available Capacity: Available capacity of a capacity category that is valid

o It is defined as an ‘Interval of Available Capacity’ in an available capacity version

• Whether capacity is relevant for finite scheduling?