BHEL SAP

_____________________________________________________________________________________

ECC 6.0 Roll Out Project BBP Phase Module :- PS

Date
16.02.2010

Title
BBP_PS

Consultant
Murali Mohan

BPO
Muraleedharan

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Table of Contents S.No Activity Description Page No

Page n

I.Executive Summary:.......................................................................................................3 II.ESD Organizational Structure........................................................................................4 III.Organizational Elements:..............................................................................................4 IV.Master Data..................................................................................................................4 V.Business Processes:.....................................................................................................8 VI.SAP Solution:..............................................................................................................10 VII.Process Flow:............................................................................................................14

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I.

Executive Summary:

The Electronics

Division (EDN) of BHEL was formed in 1976, mainly to establish a strong base in the areas of power and industrial electronics and supplement the companys pioneering efforts in power generation, transmission, industry and transportation sectors.

Making a modest beginning in 1976, the unit has registered continuous and impressive growth, which is amply reflected in the fact that a large number of power plants in the country today, are equipped with products and systems made by BHEL-EDN. As reported by the ARC Survey for the year 2005, BHEL is holding over 65 percent of the Market share of DCS Supplies to Power Industry in India
(including hardware, software and services).

Technical collaborations with international leaders as well as BHEL-Electronics Divisions relentless efforts and unwavering commitment to in-house solutions have contributed to its rapid growth and success. Despite stiff competition posed by the
world leaders and domestic private manufacturers, the unit has successfully maintained its growth rate and become a major force to reckon with in power and industrial electronics.

Electronics

Division has also been making pioneering efforts in Renewable Energy Sector by commissioning Large-size Grid-Interactive as well as Stand-Alone Solar Power Plants, thus lighting the lives of people living in remote parts of the country. The unit has also been making humble contribution to Indian Space Programmes by fabricating Space Grade Solar Panels and Space Quality Batteries for ISRO.

In recognition of its commitment to the quality systems and procedures, the unit
has been certified for ISO 9001 since July 1993. To fulfill its role of a responsible corporate citizen, envisaging protection and conservation of the environment and ensuring that its products and systems are also environment-friendly, BHEL has framed a Corporate Environment Management Policy. Accordingly, the Electronics Division has become the first Electronics Industry in Bangalore to get ISO 14001 Environment Management System certification and OHSAS 18001 certification. The Electronics Division has established itself in the field of IT applications, using the state-of-art technology systems, for communication, computing, networking and security requirement of the organization in achieving its business goal. In this pursuit, the unit has been certified to ISO/IEC 27001:2005 Information Security Management System from STQC, Ministry of Communication and Information Technology, Government of India.

BHEL has also joined United Nations' Global Compact and has committed to support the set of core values enshrined in its ten principles in the area of Human Rights, Labour s, Environment and Anti-Corruption. Electronics Division of BHEL is using SAP ECC 6.0 version in all product groups in EDN. Different plants for different product groups have been created in SAP. The Project oriented department involved in execution of
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the project Other departments are purchasing capital goods directly and for this they can procure from out side if it is not available in plant. Feasibility is done for the project before execution and once it is ok then the orders are generated. Presently projects are operating from EDN and BHEL wants to operate from the ESD as well

II.

ESD Organizational Structure The New Plant should be capable of working on its own for the Business transaction. All the excise and accounting should be created for the plant account. Delivery of the FG should be from the new plant. All the Business process of ESQP should be replicated to the New Plant.

III.

Organizational Elements: The Project System has no organizational structures of its own, incorporate it into the existing structure by making assignments to the organizational units in Accounting and Logistics. It is this which enables the Project System to present data clearly and in many different ways. Project system will use all modules Organizational elements like FI/CO,MM,PP,PM Company code: Controlling Area Business Area Profit center Cost center Plant

IV.
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Master Data Project Definition WBS elements

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Network Network activities Activity elements Milestones Material/BOM

To be able to carry out a project in its entirety, the project goals must be precisely described and the project activities to be carried out must be structured. A clearly and unambiguously structured project is the basis for its planning, monitoring, control and success. Depending on the type of project and the emphasis in project monitoring, Structure the project in the Project System using the breakdown structure (WBS) and/or networks. and projects. Each project starts with the definition and classification of the structures required for processing and the incorporation of these into the existing enterprise structure. Once the decision is taken from the top management to go-head for any project, the project planner will carry out detailing of the project structure. This includes Work breakdown structure (henceforth referred as WBS), Work breakdown structure elements (WBSE), Network and Network activities. Milestones and material component planning will be done in WBS/Activity, as required. The Steps involved in creating the project structure are described below: 1. Project Management will start preparing the project structure. Project builder, a tool in SAP Project system, will be primarily used for creating the project structure.
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structures work WBS

Structures for example

networks allow size and reuse structures and sequences of events in the

2. Project coding mask has to be Maintain in the Customization for a particular profile, In Each Coding we will define the no of levels the work has to be broken down. Project Coding Mask- ES/0001-XX-XX-XX 3. Project Definition will be created; the coding used will remain your Project Number. 4. Choose Suitable Project Profile. All the default values like Controlling area, company code, Plant, planning profiles, Budget Profiles and other important project parameter, which are customized, will get defaulted on the screen through these profiles.( Most of the defaulted values can be changed in the project during project creation, before saving it for the first time).
5. Once the project definition is created, the Work break down structure is prepared. A hierarchy of Work breakdown elements (WBSE) will be created. The structure will primarily have One WBS at 1st Level. The actual costs will be captured against the lower level of WBS elements. These WBS elements will be planning elements as well as Account assigned elements so that planning and actual cost can be posted on those WBS Elements. The top level WBS element will be a billing element where all the total budget, plans, actual costs and revenue can be collected covering the entire project. 1. Department is having the Start date and End date of the Project and based on forward scheduling the system given the end date of the project. 2. The Individual object such as WBS elements, Network, Network activities, Activity elements, milestones and Material components if any can be selected from template area and dropped on the project definition on the project builder. It is recommended to first create the Work break down structure for the project. Later the Project WBS should be expanded to the required level by selecting the network and network activity. Project structure can also contain WBS without any activities and network.
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3. Network is nothing but flow of activities, so the Network will hold group of Activities. Network is required for planning, analyzing, controlling and monitoring schedules, dates and resources at the Activity Level. Activities are to be maintained for each Network. Relationships are to be maintained for each Activity, depending on the requirement user can consider Finish- Finish (FF), Start- Start (SS), Start- Finish (SF) & Finish -Start (FS) Relationships.

The Project oriented department involved in execution of the project are mainly Make to order projects. Feasibility is done for the project before execution and once it is ok then the orders are in place. Presently already these projects are operating from EDN Plant and BHEL wish to operate the same projects from another plant too i.e. ESD.

Customer Expectations:
BHEL wants to monitor the progress of ESD plant Projects through PS. BHEL also want to follow the process of Project Execution and Maintenance Details of Process TO BE mapped in SAP:

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V.
Sl.N o 1.

Business Processes:
BHEL ESD BUSINESS PROCESS Registering Sales Inquiry SAP Sub Process Sales Inquiry Creation Monitoring of status of Inquiry Monitoring of Due date for submission through Inquiry List MOD ULE PS

2.

Quotation order

3.

Creation of Quotation with reference to Inquiry. Project Quotation against the Sales Inquiry for the execution of the Project Sales Order By Issuance of initial Sales Order with Marketing Department. reference to quotation PS to be subsequently issued Creation Of Project Issuance Of BOMs and PR from Projects Project structure for Make T Order Projects

for

Project

PS

PS

4. 5.

PS PS

6.

Issuance of BOMs , PRs and Production orders from Project systems Creation of Material component for WBS Monitoring Of activities Monitoring of activities in Project In the Projects means systems: deliverables or BOMs Engineering activities Material Procurement Manufacturing / testing Shipping and Billing

PS

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7.

Sales Order delivery

WBS element / Material element to be delivered

PS

8. 9.

Delivery billing. PGI from system

related Project

Outbound delivery from SD PGI for shop items (Movement 281) Statistical GR for PR items from project systems to enable billing of PR items Picking and packing in project systems Generation of packing list from project systems

PS PS

10.

11.

Picking and Packing. Picking based on native SAP transactions. Packing involves native SAP transaction of generating handling unit and further process based on developments Short shipment from PROJECT SYSTEMS

PS

Creating short-shipment material as a separate activity at relevant deliverable WBS level

PS

12.

Third Party Material to Shop during execution

Creation of separate Sales order (short-shipment type) Changes to Sales order (PS) and consequential changes of Project systems for changing a 3 rd party material into shop material

PS

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VI.
No.

SAP Solution:
INPUT DATA / SPECIAL INFORMATION Provide the Project: ES/1234 and select the Profile according to the requirement and WBS: ES/1234-SH1 TR CO DE OUTPUT RESULT Improvement

BUSINESS PROESSS STEPS / BPP NUMBER

Project Create

CJ20N

Project Creation

WBS Create

PROJECT DEF: ES/1234 PROJECT PROFILE:ES WBS Active Project : ES/1234 Network Type : PS04 Valid Until: 01.01.2010 Project : ES/1234 And do the cost plan in PPB Valid Until: 01.01.2010

CJ91 WBS Created - ES CJ20N Network Created : 4000635

Network Create

Create Project Cost Plan

CJ20N

Project ES/1234 Costed Material + Activity Costing

Create Project Revenue Plan

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Project : ES/1234 WBS - ES/1234-SH1-76

VA01
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and do the revenue planning in PPB Valid Until: 01.01.2012

Project ES/1234 Revenue Plan Completed BY Creating Sale Order : 12345

Project Budgeting Copy Revenue and Cost Plan to BHEL Budget Version (Original) Version 11

Project : ES/1234 Source : Version 0 Target : Version 11 Execute

CJ9FS

Revenue and Cost plan transferred to Budget Version for reporting purpose. CJ30 Copy 100 % of planned cost as Budget. Budget Document 0100000003 posted.

Budget Planning

Project : ES/1234

Execute CJ3B Transaction

Supplement Budget

Project : ES/1234 WBS: ES/1234-SH176-01 Amount : 50,000 INR Execute CJ3B Transaction

CJ36 Supplement Budget Posted : 100000005 document posted. VA01 Project Sale Order Created

Create Project Sale Order

WBS - ES/1234-SH1-76 Project : ES/1234 Network Order : 12345

10

Create Project Purchase Requisition.

CJ20N

Project Purchase Requisition Created : 1234567

11

Material Transfer
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Projects/1234

CN33

Material
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Network:ES/1234/SH10001 Materail:E1000 Project : ES/1234 Network Order : 4000635

Transferred Project Purchase Order Created : ME21N 1234567

12

Create Project Purchase Order

13

Create Goods Receipt

Project Purchase Order : 1234567

MIGO

Material Document Created : 1234567

14

Perform Order Related/ Delivery Related Billing Project Billing

Sale Order Number: 31001535 Invoices Doc Type: ZPBL

VF01

Billing Document Created : 2345678

15

Display Line Item Actual Report

Project : ES/1234

CJI3

Line item Actual Report Displayed

16

Display Cost Report - Plan Based Hierarchical Report : Plan/Actual/Commit ment/Rem.Plan/Assi gned Display Cost Report - Plan Based Hierarchical Report : Actual/Commitment/ Total/Plan in CO Area Currency

Project : ES/1234

S_ALR _8701 3533

Report Displayed with correct values

17

Project : ES/1234

S_ALR _8701 3542

Report Displayed with correct values

Display Project 18
Structure Information System Report

Project : ES/1234 Select Project Cost and Project Revenue and Accruals Project : ES/1234

CN41

Report Displayed with correct values

19

Perform Actual
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CJ44

Report Executed
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Overhead Calculation on Project Perform - Result Analysis ( Indiv Processing) Project : ES/1234 KKA2

with correct values

20

Results Analysis Report Executed and results reviewed by user. Purchase Indent Creation, Shop Manufacturing Product Consumption Completed.

21

Purchase Indent Creation, Shop Manufacturing Product Consumption Create Project with running sequence number

Project : ES/0633 Network Type : PS02 Material : SUITE:CJF07

CJ20N

22

WBS: ES

CJ20N

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VII.

Process Flow:
CUSTOMER

MAKE TO RDER ITEMS

CUSTOMER ORDER

CUSTOMER ORDER TO BUSINESS ORDER

RECEIPT OF INTERNAL ORDERS BY EDN

RECEIPT OF INTERNAL ORDERS BY ESD

COMMERCIAL PMC

COMMERCIAL PMC

CUSTOMER ORDER TO BUSINESS ORDER

PROJECT DEF WBS NETWORK ACTIVITY WBS RESERVATIONS PLANNED ORDERDS PROD ORDERS PROD EXECUTION PIRS FOR PROC

DELIEVERABL ES FOR EXECUTION

MRP RUN

GRPROC FROM MM

GR

PR ORDERS DEL TO WBS STK SALES ORDER SALES DELIVERY

BILLING
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By Using a sales order, all costs and revenues involved for an order item are assigned collectively to the item.. You can change the proposal manually. The requirements type is determined on the basis of the MRP group and the strategy group in the material master record. The bill of material transfer component makes it easier to assign material components to network activities and make this information up-to-date. Assign bill of material (BOM) items to a network activity manually by exploding the BOM and then change the BOM, Assign a very large number of components and can assign components during the design phase and expect to have to make several changes to the BOMs. BOM transfer function to assign individual BOM items to network activities, the system creates a logical link using a references point. Unlike the manual assignment of single components, you can automatically update subsequent BOM changes in the network activity. If any changes happens in quantities or the material description in a BOM automatically transfer these changes to the network as well as to the corresponding purchase requisitions and reservations. Items from several types of bills of material such as: Material BOMs Sales order BOMs WBS BOMs WBS BOMs are mainly used together with Production lots. They are bills of Material that are valid only for a particular WBS element. Note :If WBS BOMs using with the Project System, it is not necessary to create production lots) BOMs from external systems, select activities from all the networks in a project you can also assign BOM items that do not have a reference point.

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BOM transfer to assign text items or assign material components with material Nos Presently BHEL do not have any process of settlement.

Execution Project Execution, progress monitoring and analysis during the life cycle of the project IN BHEL, execution of project is mostly done through contractors. Hence the services are generated. Steps involved are as per below:
You can check the plan, budget and actual values in Project Systems information system report

Settlement
The objective of this document is to Size the process of project financial settlement,

Periodical and final, in the new projects. Settlement is the process where the actual costs incurred for a WBS element, are Settled, in whole or in part, to one or more receivers. In the process, offset entries crediting the project are generated automatically. The debit postings remain in the receivers after settlement. You can display them in the information system. The settled costs are recorded in the relevant receiver, and you can evaluate them in reporting.

Project

closing is the framework for carrying out project closing-related

transactions. It is used to ensure that all work pertaining to that project is completed and further no commercial transaction could be executed through that Project.

System Status: Technically completed (TECO) status is set for those WBS elements that are
completed from a technical point of view, but where still costs are expected to incur. To
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set this status, the WBS elements should be having created or released system status. This TECO status allows Assigning networks to the WBS element. Post actual costs Transfer actual costs

You can cancel the technically completed status. In this case the system sets the Released status.

Closed (CLSD) status is set for those work breakdown structure or WBS element that
has been completed from both a logistic and an accounting point of view. The Closed status can be set if the project definition or the WBS element have either the Released or the technically completed status. The CLSD status prohibits Assigning networks, production orders or CO orders to the WBS element. Posting actual costs to the WBS element

You can cancel the closed status. In this case the system sets the technically completed status.

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CUSTOMER

SPARE ITEMS

CUSTOMER ORDER

CUSTOMER ORDER TO BUSINESS ORDER

RECEIPT OF INTERNAL ORDERS BY EDN

RECEIPT OF INTERNAL ORDERS BY ESD

COMMERCIAL PMC

COMMERCIAL PMC

CUSTOMER ORDER TO BUSINESS ORDER

PROJECT DEF WBS NETWORK ACTIVITY

MRS wrt to BOM

MRP RUN

SALES ORDER

Materi al BOM

SALES DELIVERY

BILLING

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THITD PARTY ITEMS

PROJECT DEF

WBS

NETWORK

ACTIVITY

Manual Creation of PRs

PO

STATISTICAL GR

ORDER RELATED BILLINGBILLI NG

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