Business Process Changes – Plant Maintenance

Project ID: 4136-02

Project Name: ICF S/4HANA Turnkey Implementation
06 May 2019
 Master Data: Mandatory BOM Requirement for Equipment Master
Problems faced in Existing system:
 The required spares which are being drawn to a maintenance order does not have any validation on material used and quantity.

Proposed Solution:
 Bill of Materials will be made mandatory such that, whenever components or spares are being drawn for the maintenance order, it will
be drawn from the Bill of Materials. In case the required spares are not available in the BOM, the same will be added in the BOM master
and used.

Benefits:
 Transparency and validation on components being drawn can be obtained.

 Maintenance user will know the required quantity of spares to be used on the order.

 Effective tracking of required spare parts for a particular Machine.

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 Master Data: Codal life of Machine
Problems faced in Existing system:
 At present, Codal life of Machine is calculated manually based on Railway Board Orders in terms of Years. In SAP ERP System this should
be incorporated in terms of Years and Usage.

Proposed Solution:
 Codal life of an Equipment will be calculated in terms of year and usage. This will be visible in the Equipment master data dynamically in
comparison with the Acquisition Date of the machine. Also, the system is enhanced in such a way that the concerned person will be
notified when the Maintenance Cost of a machine gets higher than the Acquisition Value.

Benefits:
 Since Codal Life will be maintained in the Equipment Master Data, decision can be taken whether to scrap the Machine when Codal Life
is attained.

 The system will also suggest for premature condemnation, in case, the Maintenance cost of the Equipment is more than its Acquisition
Value.

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 Process: Maintenance Cost for Machine
Problems faced in Existing system:
 Maintenance cost with respect to Labour and Spares are currently not being captured in the system.

Proposed Solution:
 Spares are issued from sub-store to a particular maintenance order, such that, order cost and quantity will be captured. Through service
PR, service cost will also be captured in the system. Labour cost will be captured through activity type.

Benefits:
 Effective capturing of Labour and Spares cost when Maintenance Cost is calculated.

 Complete tracking of costing during performance of maintenance activity.

 Machine cost can be obtained through report at any given time.

 Comparison of Maintenance cost of a Machine and its Acquisition Value.

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 Process: Equipment Phase-in
Problems faced in Existing system:
 Currently, ICF is not able to track the lifecycle of machine from its procurement to scrap.

Proposed Solution:
 Equipment can be tracked from it's procurement to installation with the use of material number linkage. Equipment master data will
also be created automatically once the asset is constructed. With the use of material number linkage, the entire lifecycle of equipment
from new to scrap can be tracked

Benefits:
 Since the original material is linked with the Equipment, the lifecycle of the machine from procurement to scrap can be tracked.

 The cost of an Equipment from its procurement to installation can also be tracked.

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 Process: Equipment Phase-out
Problems faced in Existing system:
 Machines condemned are uprooted and handed over to Stores as Scrap and auctioned by Stores. The Sale value of the Scrap auctioned
has to flow back to Plant Office, Equipment wise.

Proposed Solution:
 Equipment to be scrapped will be devaluated using its original material linkage and scrapped. The sale value of the scrapped material
can be obtained by Scrap Sales Process covered in Sales & Distribution module. The Equipment-wise sale value of Scrap will be reflected
to Project Office.

Benefits:
 Scrap sale value can be obtained Equipment-wise, when a machine is scrapped As-is Where-is.

 The entire lifecycle of machine from procurement to scrap can be tracked.

 Scrap sale value can be obtained Machine wide and Period wise.

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 Process: Refurbishment Process
Problems faced in Existing system:
 Refurbishment process of Machines is currently not being captured or incorporated into the system.

Proposed Solution:
 Refurbishment process will be covered using the standard process available in the SAP ERP system. The business requirements will be
mapped into the standard process, covering split valuation of materials.

Benefits:
 Using split valuation of materials, a material can be devaluated into three different valuation types, i.e. New, Damaged and Repaired.

 Cost of damaged/refurbished materials can be captured.

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 Process: Calibration Process
Problems faced in Existing system:
 Currently, during Calibration process, user has to navigate to different screens for Result Recording and Usage Decisions.

Proposed Solution:
 Calibration process will be mapped in such a way that the users will not have to go to different transaction codes for activities such as
Result Recording and Usage Decision in Inspection Lot.

Benefits:
 Ease of accessibility in Result recording and Usage Decision in the Inspection Lot.

 All the above activities can be performed in a single Transaction Code.

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 Process: Processing of Non-stock Indents
Problems faced in Existing system:
 Non-stock indents are not captured Equipment wise and are generated outside SAP ERP system for Machines, Cranes and Road
Transport (RT) Vehicles.

Proposed Solution:
 Non-stock materials will be henceforth captured as Non-valuated materials and will require a PR/PO with respect to a Production or
Maintenance Order. Non-stock spares required for a Maintenance Order will be included as Item Category ‘N’.

Benefits:
 Non-stock indents will be made Equipment and Maintenance Order wise such that, the cost involved can be captured.

 Increase in visibility of Non-valuated materials being used for maintenance activities.

 Duplication of Non-valuated category materials in the system will be avoided.

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 Process: Spares Management
Problems faced in Existing system:
 Traceability of Spares from Stores to consumption is not currently captured in the system.

Proposed Solution:
 Spares required for an operation will be directly captured in maintenance orders. Spares can be traced from stores to consumption using
standard reports. Reports for Spares procured machine-wise, period-wise can thus be generated.

Benefits:
 Material availability and consumption pattern can be derived.

 Spares procurement history can be obtained with regards to Equipment or a specified time period.

 Visibility of Spares can be obtained.

 Avoids duplication of Spares in the system.

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