SAP in EC&O Equipment and Tools Management (ETM)

Elisabeth Schnfelder-Lck
Solution Management, SAP AG IBU ADMEC Eng., Construction & Operations

What is Equipment and Tools Management?

Equipment and Tools Management (ETM) is the SAP solution for planning, administration, settlement and performance management of Equipment and Material
PBE Document

Planning

Shipping Document

Performed Hours

Shipping
Equipment Yard
Requisition note Requisition note
Equipment and Tools Equipment and Tools Construction Site Construction Site

Site Manager

Equipment Settlement, Billing, & Performance Mgmt.

Cost Allocation

Project

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Why Equipment and Tools Management?

Easy shipment of Equipment and Material

Reduction of handling / administration costs

Equipment Location Tracking

Internal cost charging and billing according to Customer requirements Flexibility of Price determination

Visibility of Equipment Performance, Profitability and Utilization

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SAP Engineering Construction & Operations Solution Map

Suppliers & Partners Decide Strategy Design & Engineering Procurement Construction Operations

Project Management Planning & Scheduling Project Execution Contract Management Project Controlling Business Development Project Development Opportunity Management Design & Engineering Basic Design Detail Design & Engineering Procurement Sourcing Requirements Planning and Purchasing Expediting & Tracking Build Site Materials Management Workforce Management Equipment & Tool Management Prefabrication & Assembly Commissioning/Startup/Handover Facility & Plant Operations Marketing & Sales Facility/Plant Maintenance Real Estate Management Service Operations Enterprise Management & Support

Customers & Channels

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ETM is the Door Opener in Construction Companies

Suppliers & Partners Decide Strategy Design & Engineering Procurement Construction Operations

Project Management Planning & Scheduling Project Execution Contract Management Project Controlling Business Development Project Development Opportunity Management Design & Engineering Basic Design Detail Design & Engineering Procurement Sourcing Requirements Planning and Purchasing Expediting & Tracking Build Site Materials Management Workforce Management Equipment & Tool Management Prefabrication & Assembly Commissioning/Startup/Handover Facility & Plant Operations Marketing & Sales Facility/Plant Maintenance Real Estate Management Service Operations Enterprise Management & Support

Customers & Channels

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Terminology
Time Based Equipment Time Based Equipment
Example - Cranes Billing according to usage on site Individual Stock

Performance Based Performance Based Equipment Equipment

Example - Excarvators Billing according to counter readings Individual Stock

Multi-Part Equipment Multi-Part Equipment

Example - Formwork - Scaffolding Billing or Sale and buy back No Individual Stock

Material ((consumableand nonMaterial consumable and nonconsumable materials) consumable materials) Example - Nails, Bolts - Drilling Maschines - Screwdrivers
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Sale and buy back No Individual Stock

ETM Supported Business Processes

Equipment Rental
Internal Rental External Rental (e.g. Joint Venture)

Selling, re-purchase and shipping of consumable and non-consumable material and goods

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SAP EC&O Equipment Management Solution (I)

Target Segments
Any company that needs to handle equipment e.g.

Ports Equipment Manufacturers

Construction Companies Airports

Communities

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SAP EC&O Equipment Management Solution (II)

Recipient
Reports requirements Pays rental fee Buys and sells back tools and materials

Involved Parties

Equipment Manager
Leases Equipment from owner Maintains the Equipment Plans requirements, manages stocks Rents equipment and charges recepient

Owner
Purchasing and Insurance Equipment as Asset Depreciation posting

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SAP EC&O Equipment Management Solution (III)

Business Process Logistical Part
Requisition Note specifies the required equipment Hit list of suitable equipment based on the specification of the requisition note Availability of equipment? Confirmation or Rejection Shipping of Equipment (Shipping Document TBE) Recording of worked hours etc. (Performance Based Document - PBE)

PBE Document Shipping document

1.
Requisition note Requirement from Site Manager

2.
Availability? Equipment Manager

3.

Recipient, e.g. Construction site

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SAP EC&O Equipment Management Solution (IV)

Business Process Settlement part (Example: Joint Venture)
Equipment Manager leases equipment from Owner Equipment Manager rents equipment to site manager Equipment Manager sends invoices on behalf of the site manager to Debtor/Lender Debtor/Lender will pay the invoices

Owner

Equipment Manager Rent Lease 2.000,-700,-

Site Manager /Project Rent ext. Rent intern 3000,-2000,-

Debtor/Lender

Lease Deprec.

700,-300,-

Invoice 3000,-

Profit

400,-

Profit

1.300,-

Profit

1000,-

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Shipping and Tracking: Roles and Responsibilities Due to the structural and legal requirements of Construction Companies multiple Company Codes exist with different Roles and Responsibilities
Roles and Responsibilities
Equipment belonging to the Owner Administrator is responsible for planning and usage of equipment Construction Site Manager orders the equipment from the Administrator to be used on construction sites/ projects
Equipment Owner

Administrator

Equipment Administrator

Construction Site Site Manager

Customer - Lender

Customer. Uses equipment in case of external rental

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Equipment Rental: Process Flow

Create Requisition note (optional) Equipment

Construction site

Recipient

Confirmation of requirement (optional) Shipping- / PBE document Periodic settlement Periodic billing

Administrator
Handling of equipment and material

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SAP EC&O Equipment Management

Processes

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(I) External Rental: Value Flow

Asset

Deprecation cost Maintenance cost

Revenue rental

Equipment

Owner / Administrator

Internal Billing
Cost rental Cost loading Cost provision fee Revenue rental Revenue loading Revenue provision fee

External Billing
Cost rental Cost loading Cost provision fee

Recipient

Debtor

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I) External Rental: Complete Process

Process flow

Warehouse
Administrator

Equipment
Shipping document and/or PBE document

Recipient
Site location

Debtor
of Recipient

Periodical settlement with cost allocation

Sender Cost center Asset
Periodically deprecation 80

Recipient WBS Element

Cost rental 100 Revenue rental 120 Cost loading 10 Revenue loading 15 Cost provision fee 20 Revenue provision fee 25

PM Order
Cost deprecation 80 Revenue rental 100

Debtor
Cost rental 120 Cost loading 15 Cost provision fee 25

Revenue loading 10 Revenue provision fee 20

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(II) Internal Rental: Value Flow

Asset

Deprecation cost Maintenance cost

Revenue rental

Equipment

Owner / Administrator

Internal Billing
Cost rental Cost loading Cost provision fee

Recipient

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(II) Internal Rental: Complete Process

Process flow

Warehouse
Administrator

Equipment
Shipping document and/or PBE document

Recipient
Site location

Periodical settlement with cost allocation

Sender Cost center Asset
Periodically deprecation 80

Recipient WBS Element

Cost rental 100 Cost loading 10 Cost provision fee 20

PM Order
Cost deprecation 80 Revenue rental 100

Revenue loading 10 Revenue provision fee 20

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(III) Sales and repurchase of non consumable material

Shipment of material

Material

Material

Warehouse
Shipping document

Recipient A
Site location
Shipping document

Recipient B
Site location

Periodical settlement with cost allocation

Cost center
Material sales
Revenue 100 Cost 100

WBS element

WBS element

Material repurchase
Cost 80 Revenue 80

Material sales
Revenue 100 Cost 100

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IV) Consumable material

Shipment of material

Warehouse

Shipping document

Recipient A
Site location

Cost allocation (automatical goods movement with shipping)

Warehouse inventory WBS element
Cost

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ETM Additional Functionalities

Owner / Administrator Structure Catalogue / Bill of Material Graphical Planning Board Shipping Packages Settlement calendar Own Posting roles / Account Determination EDI (cross company settlement) Workflow Availability Reporting Inventory Archiving

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Summary
SAP EC&O provides a solution for equipment management, covering
Internal Rental Joint Ventures Materials and Tools

Major Benefits
Providing detailed information to your equipment Visibility of costs, revenues, down times,... Better availability, improved utilization and reduced maintainance cost

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ETM Customer List

Max Bgl, German Leonard Weiss, German Wolff & Mller, German Impregilo, Italy Cegelec, France Royal Bam, Netherlands Meci-Ensul, Portugal Mota-Engil, Portugal Teixeira Duarte, Portugal

Empreiteiros Casais, Portugal FCC, Spain Cape Industry Services, UK Hnnebeck, Germany Precision Drilling, Canada Nohl, Germany Oevermann, Germany Mammoet, Netherlands
.

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