SAP Best Practices for

Building Materials
V1.604 (US)
SAP Best Practices
General Information
SAP Best Practices for Building Material was developed for small and midsize companies to
implement a solution quickly and easily.
With a focus on the building material business processes, this package gives you built-in support for
the best business practices in the industry.
Functionalities
The SAP Best Practices for Building Materials V1.604 package supports your business in the following
areas :
Time-to-Market
Demand and Supply Planning
Operational Procurement
Manufacturing & Scheduling Execution
Warehouse Management
Sales Order Management
Complaint / Claim Management
Enterprise Asset Management
Quality Management
Analytics
Financials
Corporate Services
Time-to-Market
Internal Order R&D Planning
Internal Order R&D Actual
Internal Product Development
SAP BP for Building Materials V1.604 (US) Solution
Scope (1 of 2)
Black = Baseline Scenarios
Blue = Building Materials Scenarios
Red = Mining Scenarios
Green = Consumer Product
Scenarios
Purple = Utilities
Grey = Chemicals

Demand and Supply
Planning

Logistics Planning
Revenue Planning
SOP through Long Term Planning
Transfer to LIS/PIS/Capacity
Sales of Nonstock Item with Order
Specific Procurement
Quotation for Procurement
Consumable Purchasing
Procurement without QM
Procurement Contract
Stock Transfer with Delivery
Stock Transfer without Delivery
Return to Vendor
Subcontracting
Procurement and Consumption of
Consigned Inventory
Purchased Material Price Planning
Procurement of Cement (without
QM)
Operational
Procurement
Batch Management
Serial Number Management
Make-to-Stock Production - Discrete
Industry
Make-to-Order Production with
Variant Configuration
Make-to-Order Production w/o
Variant Configuration
Repetitive Manufacturing
Production Subcontracting (External
Processing)
Rework Processing (Stock-
Manufactured Material)
Rework Processing (Work-in-
Process)
Repetitive Manufacturing of Cement
Coal Mining
Coal Blending
Copper Mining
Copper Concentrate & Cathode
Production
Manufacturing &
Scheduling Execution
Warehouse
Management
Lean Warehouse Management
Physical Inventory / Inventory Count
and Adjustment
Shipping and Receiving with
Warehouse Management
Sales Processing Using Third Party
(w. Shipping Notification)
Credit Management
Sales Order Processing: Sale from
Stock
Free of Charge Delivery
Sales Quotation
Sales Order Processing for Prospect
Sales Processing Using Third Party
(w/o Shipping Notification)
Debit Memo Processing
Foreign Trade Export Processing
Customer Consignment Processing
Returnables Processing
Sales Order Processing with
Customer Down Payment
Credit Memo Processing
Sales Order Processing with
Collective Billing
Sales with Scheduling Agreements
Sales & Distribution of Concrete
Sales & Distribution of Cement (with
Shipment & Transportation
ASN via EDI outbound
Yard Management
Sales Order
Management
Complaint / Claim
Management
Returns and Complaints
Batch Recall
Enterprise Asset
Management
Overhaul Management
Refurbishment Management
Work Clearance Management
Operational Maintenance
Preventive Maintenance
Quality Management
QM for Procurement with Vendor
Evaluation
Stock Handling: Scrap and Blocked
Stock
Sales Returns with Quality
Management (QM)
Analytics
Reporting with SAP Business
Explorer
Quarterly Plan - Sales Quantity
Forecast with CO-PA
SAP ERP Reports for Accounting
SAP ERP Reports for Logistics
SAP BP for Building Materials V1.604 (US) Solution
Scope (2 of 2)
Black = Baseline Scenarios
Blue = Building Materials Scenarios
Red = Mining Scenarios
Green = Consumer Product
Scenarios
Grey = Chemicals

Corporate Services

Travel Management
EH&S Industrial Hygiene and Safety
EH&S Waste Management
General Ledger
Accounts Receivable
Accounts Payable
Period End Closing Financial
Accounting
Cash Management
Cost of Sales Accounting
Asset Accounting
Asset Acquisition through Direct
Capitalization
Asset Acquisition for Constructed
Assets (Investment Orders)
Activate Document Splitting
Segment Reporting
General Cost Center Planning
Manufacturing Cost Center Planning
Standard Cost Calculation
Internal Order for Marketing and
Other Overhead Planning
Period End Closing General Plant
Inventory Valuation for Year End
Closing
Overhead Cost Accounting - Actual
Internal Order for Marketing and
Other Overhead Actual
Financials
Reference and Simulation Costing
Sales: Period End Closing
Operations
Period End Closing Activities
Cost Planning
Investment Management in PM
Actual Costing/Material Ledger
Industry-Specific Scenarios (1 of 2)
SAP BP for Building Materials V1.604 (US) provides the following
industry-specific scenarios:

388: Procurement of Cement (without QM)
389: Repetitive Manufacturing of Cement
390: Sales & Distribution of Concrete
391: Sales & Distribution of Cement (with Shipment & Transportation)
392: Actual Costing/Material Ledger
298: ASN Inbound Via EDI
300: Yard Management
395: Cost Planning
396: Coal Mining
397: Coal Blending
398: Copper Mining
399: Copper Concentrate & Cathode Production



Industry-Specific Scenarios (2 of 2)
SAP BP for Building Materials V1.604 (US) provides the following
industry-specific scenarios:

929: Operational Maintenance
930: Preventive Maintenance
937: EH&S Industrial Hygiene and Safety
938: EH&S: Waste Management
932: Investment Management in PM
886: Overhaul Management
887: Refurbishment Management
888: Work Clearence Management


Purpose and Benefits:
Procurement of Cement (without QM) (388)
Purpose
Procurement without Quality Management
Benefits
Use of integrative data sets such as purchasing info records
Automatic Source of Supply assignment in purchase request
Processing of role-specific work lists possible
Key process flows covered
Display and assign purchase requisitions
Convert assigned requisitions to purchase orders / Create purchase order
manually
Change purchase order
Approve purchase order
Print purchase order
Receive goods from vendor
Invoice receipt by line item
Purpose and Benefits:
Repetitive Manufacturing of Cement (389)
Purpose
Repetitive Manufacturing is commonly used when a production process meets the
following criteria:
The same or similar products are produced over a lengthy period of time
The products produced are not manufactured in individually defined lots. Instead, a total
quantity is produced over a certain period at a certain rate per part-period
The products produced always follow the same sequence through the machines and work
centers in production
Routings tend to be simple and do not vary much
Benefits
Simplified handling of the production process with full cost control
Key process flows covered
Creating Planned Independent Requirements and Material Requirements
Planning
Repetitive Manufacturing of Portland Cement loose
Repetitive Manufacturing of Portland Cement - 50 lb
Purpose and Benefits:
Sales & Distribution of Concrete (390)
Purpose
In the concrete scenario special software for the truck dispatching is required.
Like the control system of the mixing plant it is linked by interfaces
Benefits
Show industry specific integrated scenario
Possibility to integrate industry-specific software

Key Process Flows Covered

Credit Management Check for Sales Order
Sales Quotation (optional)
Sales Order Entry
Credit Management Review
Deliver the Sales Order by creating an Individual Delivery
Picking
Post Goods Issue
Billing

Purpose and Benefits:
Sales & Distribution of Cement (with Shipment &
Transportation) (391)
Purpose
Sales and Distribution of Cement (with Shipment & Transportation)
Benefits
Integrated transportation planning
Show possibility to handle construction sites
Key Process Covered
Credit Management Check for Sales Order
Sales Quotation (optional)
Create Sales Order
Change of Ship-to Party to see Effects in Pricing
Create Sales Order
Check Sales Order Status
Delivering the Sales Order by Creating an Individual Delivery
Picking
Post Goods Issue
Billing
Transportation

Purpose and Benefits:
Actual Costing/Material Ledger (392)
Purpose
This scenario describes the process of calculating the actual cost of materials
and separating the differences between standard cost and actual cost into cost
of sales and stock value using material ledger settlement function.
Benefits
System calculates the actual cost of materials with material ledger
CO-PA data is revaluated with actual cost
Purpose and Benefits:
ASN Inbound Via EDI (298)
Purpose
Encompasses a business document exchange between business partners via
EDI. The outbound ASN uses the EDI file from the Wholesale Distributor to
create a delivery notification automatically via EDI for the customer.
Benefits
Step-by-step operational guide to work the scenario in a real system











Purpose and Benefits:
Yard Management (300)
Purpose
Tracks the movement of trailers and provides inventory visibility with the
receiving/shipping yard.
Benefits
Enabling management and control for the planned goods

















Purpose and Benefits:
Cost Planning (395)
Purpose
This scenario describes the Cost Planning for Mining Materials.
The Cost Planning includes the planning in cost center accounting and product
cost.
Benefits
This scenario covers procedures that can be followed in the SAP ERP system
when annual cost planning is carried out for an operating mine.
Key process flows covered
Cost Element planning
Internal Activity planning
Planning Statistical Key Figures
Cost planning using a Template
Overhead allocation using a Costing Sheet
Overhead allocation using a Template
Cost Estimates
Purpose and Benefits:
Coal Mining (396)
Purpose
This scenario describes the complete process from mine to stockpile as an example. It could
be also used to describe the process from a quarry to stockpile in the building material
industries. The scenario includes crushing of the rock and moving to a stockpile.
Benefits
PI (Process Instruction) sheets are used to manually record production achievement. The PI
sheet provides a user friendly interface that allows production operators to enter data in a
customized manner.
A production batch is created for the process order, which allows quality characteristics
(assays) to be recorded in the system. This batch represents the quantity and quality of the
crushed coal produced for the time period specified by the process order. The batch
characteristics for the stockpile batch are then adjusted based on a weighted average
calculation of contributing batches of coal.
PM measurement point is integrated, truck related KPI is stored in the created measurement
documents.
Key process flows covered
Create a Process Order for Hauling (crushing) Coal
Control Recipe Monitor
Maintain Production Data Using PI Sheet
Process the Entered Production Data
Purpose and Benefits:
Coal Blending (397)
Purpose
This scenario represents the process of blending coal. You will take coal from various mines
and different stockpiles and blend quantities together to create a new batch that meets
customer specifications. The same process could also be used for blending other types of
commodities. A process order is used as the mechanism to perform the blending. The
scenario can be also used for raw material and meal preparation for clinker production in
building materials industry.
Benefits
A PI (Process Instruction) sheet is used to manually record the blending activities. The PI
sheet provides a user friendly interface that allows production operators to enter data in a
customized manner. The same data could be updated automatically.
The quality characteristics (assays) of the stockpile are recorded using batch characteristics.
For each stockpile that is to be blended the batch characteristics are retrieved and a weighted
average calculation used to determine the quality of the resulting batch.
All necessary goods movements are done automatically in the background, including posting
goods issue quantities from each source batch, posting a goods receipt quantity for the
resulting batch and updating the batch characteristics to reflect the blended quality
Key process flows covered
Create a Process Order for Blending Coal
Control Recipe Monitor
Maintain Production Data Using PI Sheet
Process the Entered Production Data
Purpose and Benefits:
Copper Mining (398)
Purpose
This scenario covers the mining and processing of copper ore. Two main operational
processes are represented, primary product mining to produce ROM coarse ore for crusher
feed and crushing to product fine copper ore for subsequent refining.
It can be also used to describe the process in raw material extraction in building material
industries, e.g. in the cement industries where wheel loaders and dumper trucks transport the
raw materials to the crushing installations, where the rock is broken down to roughly the size.
Benefits
PI sheet provides a user friendly interface that allows production operators to enter data in a
customized manner. The same data could be updated automatically.
A production batch is created for the process order, which allows quality characteristics
(assays) to be recorded in the system. This batch represents the quantity and quality of the
crushed copper ore for the time period specified by the process order. The batch
characteristics for the stockpile batch are used to calculate the value of the stockpile based on
copper content .
PM measurement point is integrated, truck related KPI is stored in the created measurement
documents.
Key process flows covered
Create a Process Order for Mining (Crushing) Copper Ore
Control Recipe Monitor
Maintain Production Data Using PI Sheet
Process the Entered Production Data
Purpose and Benefits:
Copper Concentrate & Cathode Production (399)
Purpose
This scenario represents the production of copper concentrate and copper cathodes.
It is based on crushed copper fine ore, which transports to concentrator and smelting
plants. The ore is then ground and processed into various grades of concentrate. In this scenario
high grade concentrate is produced.
Benefits
Once the copper concentrate is produced, samples are taken for quality analysis. The results
of the analysis are updated against the production batch.
The concentrate could be sold or processed further through smelting and refining to
manufacture copper cathodes. This scenario contains a second production process to
produce copper cathodes.
All Each copper cathode is assigned a unique number (handling unit) that enables tracking of
the individual units along the Supply Chain. The cathodes are then packed and are ready for
sale.
Key process flows covered
Create a Process Order for Concentrate (Cathodes) Production
Create a Process Order Confirmation
Change Batch
Display Packing Instruction
Create Handling Units
Goods Receipt for Handling Units
Goods Issue for Order
Purpose and Benefits:
Operational Maintenance (929)
Purpose
Maintenance processing comprises several levels, which do not necessarily all
have to be implemented in full.
It is therefore possible to process a repair using many planning stages, such as
preliminary costing, work scheduling, material provision, resource planning and
permits. However, it is also possible to react immediately to damage events causing
production shutdown, and to produce the required orders and shop papers with the
minimum of entries in the shortest possible time.
Purpose and Benefits:
Preventive Maintenance (930)
Purpose
Ensuring a high availability of objects in the long term is an important part of Plant Maintenance. Planned
maintenance is used to avoid system breakdowns or the breakdown of other objects, which - in addition to the repair
costs - often result in much higher costs subsequently owing to production breakdown.
There are many benefits in using planned maintenance within your company. It is the generic term for inspections,
preventive maintenance and planned repairs, for which the time and scope of the work can be planned in advance.
In addition to internal company aspects for planned maintenance, external factors should also be considered. An
increasing number of conditions set by legislative bodies demand more stringent requirements on planned monitoring
and maintenance of objects. External requirements can be:
Manufacturer recommendations
The manufacturer of your technical objects may recommend certain procedures to ensure that the objects always
function optimally.
Legal requirements
There may be labor protection laws or laws concerning the safety of objects which require you to maintain your
technical system on a regular basis.
Environmental requirements
Effective planned maintenance can also help to prevent breakdowns which could lead to environmental hazards.
Another reason for planned maintenance is the need for quality assurance, since, for example, the quality of products
manufactured at a technical system is substantially affected by the operating condition of the production plant.
It is also often more cost-effective to maintain objects regularly, and therefore prevent a much more expensive
breakdown. You can determine the data required for this using past data supplied by the system.
Purpose and Benefits:
EH&S Industrial Hygiene and Safety (937)
Purpose
The purpose of to describe business processes related to Industrial Hygiene &
Safety.
Purpose and Benefits:
EH&S: Waste Management (938)
Purpose
The purpose of to describe business processes related to Waste Management.
Purpose and Benefits:
Investment Management in PM (932)
Purpose
The purpose of to describe business processes related to Investment
Management within Plant Maintenance.
Purpose and Benefits:
Overhaul Management (886)
Purpose
Overhaul maintenance is a large scale maintenance project involving allocation
of budget to different project tasks, identifying resource requirements and
monitoring of the project activities during the specified period.
Benefits
The Budget planner can plan and distribute budget data to the overhaul
maintenance project network/activities
The maintenance planner will create a network activity or maintenance order
according to the maintenance requirements and assign it to the corresponding
network/activities.
Dates for the WBS Elements, Network activities or maintenance orders can be
planned, scheduled and monitor.
Key process flows covered
Created a project
Edit WBS Cost Planning and distribute WBS budget
Network Scheduling
Creating a Maintenance Order and Assign to WBS/Network
Purpose and Benefits:
Refurbishment Management (887)
Purpose
Faulty repairable spares is maintained to re-use in company, the spare part will have different
valuation type to represent different values
Benefits
A high value spare part or critical part, will be managed with serial number. It will
help to manage each piece of this spare part
Refurbishment process will help to reduce the spare parts inventory cost.
Key process flows covered
Creation of Maintenance Order
Removing Defective Equipment
Returning Defective material to warehouse
Goods Issue for Maintenance Order
Activate Equipment
Creating the Refurbishment Order for the Defective material
Goods Issue for Refurbishment Order
Order Confirmation
Goods Received for Refurbishment Order
Settling the Refurbishment Order
Purpose and Benefits:
Work Clearence Management (888)
Purpose
This process creates a safe environment for the maintenance staff to perform maintenace
work. In addition, applicable environmental safeguards can be adhered to and the reliability of
the assets is guaranteed
Benefits
A component with which the safety measures during maintenance work at technical objects
can be controlled and monitored
The WCM process is fully integrated with the work order process
All permit in WCM objects must be issued before execution of actual maintenance
A protection that ensures that a technical object that is managed as an item in an Operational
WCD can only be orderly tagged or untagged from certain Operational WCDs
Key process flows covered
Display and assign purchase requisitions
Creating Maintenance Order with WCM Requirement
Creating Work Approval (WAP)
Creating Work Clearance Application (WCA)
Creating additional application Hot Work
Creating Operational Work Clearance Document (WCD)
Performing Permit Approval process
Performing operational cycle of Lockout / Tagout
WCM objects for a planned maintenance order are generated from a maintenance plan by
program RIWCO016