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SAP Best Practices for Mining V1.606 for Australia Overview

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Page 1: BP Mining Overview V1.606 en AU

SAP Best Practices for Mining V1.606 for AustraliaOverview

Page 2: BP Mining Overview V1.606 en AU

© 2012 SAP AG. All rights reserved. 2Public

Content

SAP for Mining Overview

Available Scenarios

Solution Architecture

Page 3: BP Mining Overview V1.606 en AU

SAP for Mining Overview

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© 2012 SAP AG. All rights reserved. 4Public

Increased shipping volumes requiring Supply chains to adapt quickly to market fluctuations

Mergers & Acquisitions, JVs causing capacity rationalization

Contract mining & services

Increased shipping volumes requiring Supply chains to adapt quickly to market fluctuations

Mergers & Acquisitions, JVs causing capacity rationalization

Contract mining & services

Challenges in the Mining Industry Today

Overall Shortage of expert workforce

Trend towards aging workforce

Increasing establishment of remote control centers and shared services centers

Overall Shortage of expert workforce

Trend towards aging workforce

Increasing establishment of remote control centers and shared services centers

Lack of skilled laborLack of skilled labor

Growing industrialization in emerging countries (esp. BRIC)

Increasing urban migration

Technology & Infrastructure requirements

Growing industrialization in emerging countries (esp. BRIC)

Increasing urban migration

Technology & Infrastructure requirements

Demand growthDemand growth Supply dynamicsSupply dynamics

Ensure Health and Safety of people

Adhere to environmental regulations

Achieve financial stability

Ensure Health and Safety of people

Adhere to environmental regulations

Achieve financial stability

Corporate sustainability & complianceCorporate sustainability & compliance

Higher focus on Enterprise Risk Management comprising financial and operational risk

Stronger focus on Financial Planning and Legal Compliance

Higher focus on Enterprise Risk Management comprising financial and operational risk

Stronger focus on Financial Planning and Legal Compliance

Risk Management FocusRisk Management Focus

Daily commodity price changes of up to +/-5%

Fueled by demand/supply imbalance and influence of financial markets

Daily commodity price changes of up to +/-5%

Fueled by demand/supply imbalance and influence of financial markets

Price volatilityPrice volatility

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© 2012 SAP AG. All rights reserved. 5Public

SAP Solutions address the Industries Challenges

SAP Solution

•Bulk Transportation for Mining

SAP Solution

•Bulk Transportation for MiningSap Solution

•SAP HCM Solution including Talent Management and e-Recruiting

Sap Solution

•SAP HCM Solution including Talent Management and e-Recruiting

Lack of skilled laborLack of skilled labor

SAP Solution

•SAP Supply Chain Management

SAP Solution

•SAP Supply Chain Management

Demand growthDemand growth Supply dynamicsSupply dynamics

SAP Solution

•SAP Environmental, Health and Safety Management

SAP Solution

•SAP Environmental, Health and Safety Management

Corporate sustainability & complianceCorporate sustainability & compliance

SAP Solution

•SAP GRC Solutions

SAP Solution

•SAP GRC Solutions

Risk Management FocusRisk Management Focus

SAP Solution

•Commodity Sales and Purchasing

•Commodity Risk Management

SAP Solution

•Commodity Sales and Purchasing

•Commodity Risk Management

Price volatilityPrice volatility

Many solutions have been co-

innovated with SAP Mining customers

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© 2012 SAP AG. All rights reserved. 6Public

Recent Innovations

Demand from other industries created the need to make solutions available outside of the Business Function Set for Mining

Bulk Transportation (Trader's & Scheduler's Workbench) – The Trader's and Scheduler's Workbench (TSW) component provides functions for planning, scheduling and executing bulk shipments. The scheduler assigns Supply and Demand elements with Transportation units to the Distribution Schedule. The Distribution schedule is a preliminary transportation planning overview that will be converted into firm Nomination documents. The whole process is supported by the Stock Projection Worksheet, that calculates and shows the inventory forecast for a flexible time period and for combinations of materials and locations. At load & discharge, an official notice is sent by a partner, containing information about the product movement (so called ‘Ticket’). The ticket actualization automatically performs the logistics & financial postings.

Commodity Pricing (Marketing, Accounting and Pricing) – The Marketing, Accounting and Pricing component of SAP for Mining covers market quotation based pricing as well as quality based penalty or bonus payment calculations as typically required in the mining industry. It allows to invoice the customer with a provisional invoice, based on provisional calculation rules, available market quotations and currency exchange rates, and initially measured qualities. Multiple adjustment invoices can be generated to reflect changes in available quotations and qualities. All adjustment invoices ( also called differential invoice) will only adjust the provisional invoice and will credit / debit the customer according to final calculation rules, quotations, and finally agreed qualities by negotiation with the customer or umpire.

Also available as Enterprise Business Function outside the BFS for Mining

New Solution for Commodity Pricing and

Differential Invoicing available as

Enterprise Business Function outside the BFS for Mining

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© 2012 SAP AG. All rights reserved. 7Public

SAP for Mining & Business Function Set Mining („BFS“ Mining) – component view

Based on the SAP Netweaver Platform, SAP delivers the Business Suite

SAP ERP contains many generic and industry specific processes & functionality

BFS Mining allows to activate additional Mining specific process content delivered within SAP ERP

SAP Best Practices for Mining leverages processes based on generic and industry specific components („BFS Mining“) of SAP ERP and SAP EHSM on the SAP Netweaver Platform

Technical view on embedding the special SAP solution components for Mining

SAP NetWeaver

SAP ERP

SAP PLM

SAP CRM

SAP

SRM

SAP SCM

SAP Business Suite

PMQMMMSD

HR FI CO …

BFS Mining

RLMTSWMAP

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© 2012 SAP AG. All rights reserved. 8Public

Support for Industry Solutions

Contract to Cash for Commodities

EAM Linear Asset Management 1

SAP ERPSAP ECCSAP ERP Central Component 6.00With Enhancement Pack 6.

ONE Industry Business Function Set for Mining (subset of BFS Oil&Gas)The BFS contains multiple Business Functions which can be activated as needed.

Industry Business Function Set Mining

Enterprise Business FunctionsSEVERAL Generic Enterproise Business Functions can be activated in combination with Industry Business Function set

….

BF Commodities Management & Bulk Logistics

TSW TD MAP

BF Remote Logistics Management

RLM

Within SAP ERP 6.0 the SAP for Mining Solution makes use of the Industry BFS Mining

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Scenario Overview

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© 2012 SAP AG. All rights reserved. 10Public

Mining Best Practice AU V1.606 at a Glance

Based on SAP ERP 6.0 EhP 6

Based on Baseline Version Australia => Industry independent Scenarios

For Mining specific, complex business requirements

Out-of-the-box and ready-to-run solution

2 End to End Value Chain Scenarios: Mine to Customer

Bulk (Coal) Metal (Copper)

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© 2012 SAP AG. All rights reserved. 11Public

Mining Best Practice AU V1.606 – What’s New?

Re-use of some proven Mining industry best practice scenarios from V1.600 version

Mining Best Practice AU V1.606

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© 2012 SAP AG. All rights reserved. 12Public

Scenario Overview Best Practice for AU V1.606

The following generic scenarios are delivered by the underlying Best Practices for Australia solution and can be used with Best Practices for Mining.

Scenario ID

Scenario Name Area

128 Quotation for Procurement

Materials Management / Procurement

129 Consumable Purchasing

133 Procurement Contract

137 Physical Inventory / Inventory Count and Adjustment

156 General Ledger

Finance and Controlling

157 Accounts Receivable

158 Accounts Payable

159 Period End Closing Financial Accounting

161 Cost of Sales Accounting

162 Asset AccountingAsset Accounting

164 Asset Acquisition for Constructed Assets (Investment Orders)

166 Segment Reporting Finance and Controlling

209 External Procurement of ServicesMaterials Management / Procurement

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© 2012 SAP AG. All rights reserved. 13Public

Scenario Overview Mining Best Practice AU V1.606

Scenario ID

Scenario Name Area

396 Coal Mining

Production397 Coal Blending

398 Copper Mining

399 Copper Concentrate & Cathode Production

395 Cost PlanningCosting

D50 Cost Actuals

D51 Rail Bulk Transportation Internal Distribution

D52 Contract to Invoice Coal, Bulk Transportation FOBCommodity Sales,

Bulk Transportation,

QM

D53 Contract to Invoice Coal, Bulk Transportation DES incl. Freight

D54 Contract to Invoice Concentrate, Bulk Transportation, QM

D55 Contract to Invoice Cathode

D56 Corrective Maintenance

Enterprise Asset Management

D57 Preventive Maintenance

D58 Rotable Management

D61 Linear Asset Management

D59 Operational Risk ManagementEnvironment, Health & Safety Management

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© 2012 SAP AG. All rights reserved. 14Public

Scenario 396 – Coal Mining

Highlights:

• End-to end process from mine to stockpile

• User friendly entry sheets (PI Sheet) to enter production data, truck relevant KPI’s and quality characteristics.

• High level of integration to plant maintenance

• Automatic batch-to batch movement

Process Overview: Commodity: Coal

The mine production planner is creating a process order for loading and hauling of coal in an open pit mine. The hauled quantity as well as some truck related KPI’s like fuel consumptions or operating hours will be confirmed on a PI Sheet by a production supervisor. The mined coal will be posted into inventory as a batch. The truck related KPI’s will be stored in a measuring Document. The next process is the crushing of the mined coal. The process operator is recording the quantities as well as its quality characteristics for BTU, sulphur-, ash- and moisture-content on an easy entry PI-Sheet. The crushed coal of high grade will be moved as a separate batch to the stockpile.

Integration:

• Integration with Blending scenario (397) • The crushed coal can also be

transported by rail to the port as in scenario D51

• Costing integration (395, D50)• PM measurement point integration

(D57)

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© 2012 SAP AG. All rights reserved. 15Public

Scenario 397 - Coal Blending

Highlights:

User friendly entry sheets (PI Sheet) to enter the quantities to be blended and display of their quality characteristics

Automatic calculation of blended quality characteristics in Simulation & Actualization

Costs can be tracked Automatic goods movements

Process Overview: Commodity: Coal

Coal from various stockpiles is blended together into a medium grade coal at vessel or train loading using a process order. The activities are recorded by using a user-friendly interface, a PI Sheet, which also automates the postings of goods movements and order confirmations. The PI-Sheet displays the quality characteristics of the input batches and calculates the blended quality values according to the planned / actual stockpile quantities. This can also be used for simulation purposes. All necessary goods movements are done automatically in the background.

Integration:

Coal blending is the next process step after mining (396)

Blended medium grade coal can be used in sales processes as in D53 (Contract to Invoice Bulk DES incl. Freight Costing)

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Scenario 398 - Copper Mining

Highlights:

• End-to end process from mine to stockpile

• User friendly entry sheets (PI Sheet) to enter production data, truck relevant KPI’s and quality characteristics.

• Batch specific unit of measure for metal content

• Standard Cost Estimation for Copper

Process Overview: Commodity: Copper

The mine production planner is creating a process order for loading and hauling of ore in an open pit mine. The hauled quantity as well as some truck related KPI’s like fuel consumptions or operating hours will be confirmed on a PI Sheet by the operation supervisor. The mined ore will be posted into inventory as a batch. The truck related KPI’s will be stored in a measuring document. The next step includes the crushing of the mined ore to fine ore. The process operator is recording the quantities as well as its quality characteristics for copper-, arsenic-, sulphur-, gold- and moisture-content on an easy entry PI-Sheet. The crushed copper will be moved as a separate batch to the stockpile. Valuation can now be done for the copper ore.

Integration:

• Integration with Copper Concentrate Scenario (399)

• PM measurement point integration (D57)

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© 2012 SAP AG. All rights reserved. 17Public

Scenario 399 – Copper Concentrate and Cathode Production

Highlights:

• End-to end production process from copper concentrate to cathode

• Use of handling unit for individual cathode bundle tracking.

• Use of process orders for production

Process Overview: Commodity: Copper

First high and low grade copper are blended to produce a medium grade of concentrate before it will be used for the production of copper cathodes. The produced batch for concentrate is updated with the information about moisture-, copper-, arsenic-, silver- and gold content as soon as the assay results are known.Copper Concentrate is the input for the following smelting & refining process. The cathodes produced are assigned to handling units to allow individual tracking through the supply chain. The cathode batch is updated with the copper content after assay results are known.

Integration:

Integration to copper mining scenario (398)

Integration to copper concentrate and copper cathode sales scenarios (D54, D55)

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Scenario 395 – Cost Planning

Highlights:

• Typical cost center & cost element set-up for an open pit mine incl. auxiliary cost centers, cost allocation

• 1 Truck assigned to 1 cost center, detailed planning per truck for recovering actual costs, summarisation of all planned costs in a hauling cost centre for generation of a rate to be used in planning

• Cost Center, Equipment & Product Cost Planning

• CO-ABC technology incl. Template allocation

Process Overview: Commodity: All/Open Cut

Mining of ore is a very cost intensive process. Operating costs in mining consist of the amortization of the capital costs of the equipment and mine establishment, and the operating cost itself. As an example, costs for a truck are planned in detail. This includes e.g. planning of Labor to operate, Fuel, Lubricants, supplies like tires. Overhead costs from cafeteria, HR cost centers etc. will be allocated based on defined cost drivers like headcount, no. of PC’s. Costs will be aggregated to planned costs for the fleet / hauling cost center. Costs are planned for the period of typically a month for the cost centers, equipment and finally the standard costs for a ROM produced at the mine.

Integration:

• Mine Production integration (396, 398)• Cost Actuals (D50)

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Scenario D50 – Cost Actuals

Highlights:

• Primary cost postings to cost centers, actual assessment cycle for overheads

• Recording of operational costs (e.g. for truck)• Cost Center, Equipment & Product Cost

Actuals • KPI reporting on Plan / Actual Comparison• CO-ABC technology incl. Template allocation

Process Overview: Commodity: All/Open Cut

Mining of ore is a very cost intensive process. Actual primary costs for the period are posted to FI GL and the corresponding cost centers. At the end of the period, overhead costs from cost centers like canteen, HR, are assessed in the same way as in cost planning through to the production cost centers based on their cost drivers like head count, Number of PCs. Operational costs for the period like fuel, energy, maintenance, labor, tire supply costs are settled to the corresponding cost centers. For the cost centers and equipment, a plan vs. actual comparison of costs can be done and variances will be analyzed.

Integration:

• Cost Planning (395)• Maintenance costs from settled

Maintenance Orders (D56, D57)• Mine Production integration (396, 398)

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Scenario D51 – Rail Bulk Transportation

Highlights:

• Schedule train transport with TSW• Electronic communication (simulation)

between mine and rail carrier to request and confirm train capacities

• SPW to analyze and locate the available inventory

Process Overview: Commodity: Coal

The mine company ships coal from the mine to the port by train. The railway line is operated by a rail carrier. A stock transfer order is created and the transport will be scheduled using the Traders and Schedulers Workbench. The nomination schedule and quantity is communicated to the rail carrier, who adjusts and finally confirms the schedule. The ticketing process executes the transport and creates shipment and delivery documents. The Stock Projection Worksheet reflects the material movements in planning, scheduling & after execution at the mine and at the port and shows its impacts on the stock.

Integration:

• Integration to Mine Production & Stockpiles in 396

• Blending at Port in 397 and Sales from Port in D52, D53

• Creation of IDOC's to communicate between transport planner and rail company

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© 2012 SAP AG. All rights reserved. 21Public

Scenario D52 – Contract to Invoice Coal, Bulk Transportation FOB

Highlights:

• Contract definition incl. quantity schedules (IS-Mining)

• Commodity Pricing Engine (CPE) for quotational pricing and price adjustments (Bonus / Penalties) based on actual vs. contractually agreed product specifications

• Bulk Transportation Scheduling & Execution• New Provisional and differential Invoicing

Process Overview: Commodity: Coal

A long term contract for multiple deliveries of coal has been signed with the customer. This includes details for total quantity, the (monthly) quantity break down, the requested quality of the coal, the agreed coal price and pricing details for any bonus and penalty payments for the breach of the contractually agreed coal specifications. After a monthly delivery has been called off by the customer, the distribution scheduler schedules the shipment. In an FOB scenario, the customer has to nominate the vessel. The coal is loaded from stockpiles onto the vessel and upon departure, the actual quantities are booked. A provisional invoice is created based on the actual quantity and quality of coal, followed by a differential invoice, taking any quality adjustments into account.

Integration:

• Blending order in 397 (execution) • Rail Bulk Transportation from Mine to Port

D51 (execution)

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Scenario D53 – Contract to Invoice Coal, Bulk Transportation DES incl. Freight

Highlights:

• Contract definition incl. quantity schedules (IS-Mining)

• Commodity Pricing Engine (CPE) for quotational pricing and price adjustments (Bonus / Penalties) based on actual vs. contractually agreed product specifications

• Detailed Bulk Transportation Scheduling & Execution incl. stock in-transit, gains & losses

• Freight Costing & settlement for shipment incl. multiple service providers

Process Overview: Commodity: Coal

A long term contract for multiple deliveries of coal has been signed with the customer. Pricing details in contract definition as well as in invoicing are similar to the D52 scenario for FOB coal sales. In an DES scenario, the seller has to nominate the vessel. Therefore, the distribution scheduler works closely with one or more carrier companies to identify the best available vessel. The scheduler may schedule demands from several customers onto one vessel. The coal is loaded onto the vessel and becomes stock in transit. At the discharge port, the coal is discharged and ownership changes to the customer. Freight costs are calculated and settled with different service providers (e.g. carrier, port agent, insurer).

Integration:

• Blending order in 397 (execution) • Rail Bulk Transportation from Mine to Port

D51 (execution)

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© 2012 SAP AG. All rights reserved. 23Public

Scenario D54 – Contract to Invoice Copper, Bulk Transportation FOB incl. QM

Highlights:

• Contract definition (IS-Mining) incl. quotational pricing for various metal contents & penalty calculations using Commodity Pricing Engine

• Quality Management for assay analysis incl. automatic inspection lot creation and lab results recording

Process Overview: Commodity: Copper Concentrate

A long term contract for multiple deliveries of concentrate has been signed with the customer. Pricing is done based on an average of LME copper quotations. In addition, other metal contents like Silver and Gold are priced. Penalties for Moisture or Arsenic contents that are out of the agreed range will be subtracted; same for treatment and refining charges, based on the metal contents. Assays analysis is performed by the vendor at the load port and the provisional invoice is based on the assay analysis and the various metal contents. There are also further inspection lots for the assay analysis at discharge port – to be analyzed by the surveyor, the customer, the vendor and in case of any disputed by the umpire. The final invoice is based on the agreed specifications.

Integration:

• Concentrate Production in 399

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© 2012 SAP AG. All rights reserved. 24Public

Scenario D55 – Contract to Invoice Copper Cathode

Highlights:

• Spot Sales Contract definition incl. quotational pricing using Commodity Pricing Engine

• Freight Liner offer & Demand to Freight Offer Pegging

• Batch Determination (FIFO/Quality) & Handling Unit Management

Process Overview: Commodity: Copper Cathode

A spot sales contract of copper cathodes has been signed with an overseas customer. Pricing is done based on an average of LME copper cathode grade A quotations. One of the freight liner carriers has send a freight offer with detailed route and timetable information. The Scheduler schedules the spot sales order on the best available freight offer. Shortly before vessel loading takes place, delivery papers are printed, indicating the batch to be taken whereby the oldest batch on stock is taken first (FIFO). The copper cathode bundles are selected by the warehouse staff and loaded into the container. Pick quantities are adjusted accordingly. A provisional invoice is created after loading is finished.

Integration:

• Cathode Production & Batch and Handling Unit Management in 399

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© 2012 SAP AG. All rights reserved. 25Public

Scenario D56 – Corrective Maintenance

Highlights:

• Shows the corrective maintenance process from request to cost settlement

• Includes approval activities• Is the most fundamental process containing

most of the process steps required to execute the other maintenance scenarios

• Netweaver Business Client as user interface utilizing maintenance roles

Process Overview: The corrective maintenance scenario contains the fundamental steps followed whenever maintenance is performed. The corrective maintenance process demonstrates how and when:A SAP user logs a notification to request maintenance to repair defective equipmentA planner creates, plans, and schedules a maintenance work orderThe materials management process issues stocked spares and procures non-stock itemsAn artisan performs the maintenance work having received the work order, and captures the feedbackAn authorised person approves and completes the workThe maintenance costs are reflected on the order and settled to the relevant cost center

Integration:

• Indicates the points where the preventive maintenance notifications and work orders enter the process

• Links to the materials management processes

• Integrates to actual costing scenario D50

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Scenario D57 – Preventive Maintenance

Highlights:

• The three preventive maintenance processes, time-, usage-, and condition based, are described

• Generating a cost report for time- and usage based preventive maintenance is shown

Process Overview: The preventive maintenance scenario demonstrates three preventive maintenance processes. It describes how to create and schedule a maintenance plan based on elapsed time and/or on usage and how to generate a planned cost report. It further describes how maintenance is trigged based on the condition of a unit.Maintenance based on elapsed time: Since time does not provide the optimal schedule for maintaining equipment that

requires maintenance due to operational wear, it is usually used to schedule inspection activities and periodic testing (e.g. pressure vessel tests)

Maintenance based on the usage of plant and equipment is a common and important maintenance strategy to enable the optimization of the maintenance frequencies. Maintenance requirements are generated from equipment usage information, i.e. engine hours

Condition based maintenance is the third method used to drive the creation of preventive maintenance work. Requests for maintenance are generated from condition readings entered into SAP

Integration:

• Indicates the points where the preventive maintenance notifications and work orders enter the process

• Links to the materials management processes

• Integrates to actual costing scenario D50

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Scenario D58 – Rotable Management

Highlights:

• The rotable management scenario includes all the processes that are typically followed to refurbish damaged equipment

• Rotables are not viewed/defined as assets• Rotable inventory is fully valued

Process Overview: The rotable management scenario consists of five independent sub-scenarios or processes. Each time a damaged rotable or repairable piece of equipment needs to be processed one of the five processes must be selected. Each sub-scenario or process is a complete process managing the repair, replacement and/or scrapping of the damaged equipment. The five rotable management sub-scenarios or processes are the following:Equipment exchange processInternal refurbishment/repair processExternal refurbishment/repair processReplacement processScrapping process

Integration:

• The corrective or preventive maintenance scenario (D56, D57) initiates the rotables management scenario when a damaged rotable is replaced

• Stock valuation in MM & FI

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Scenario D61 – Linear Asset Management

Highlights:

• Usage of new Linear Asset Management functionality.

• Segmenting a linear asset and maintain different segment properties.

• Identifying the exact position along a linear asset with respect to a marker where the leak has occurred.

Process Overview: In this scenario, a monthly inspection is scheduled for a 125km long slurry pipeline. The following is an overview of the technical object structure for the pipeline network.The pipeline inspection is partially confirmed by the work crew on the first day up to the 56km mark. Two damaged support block are identified. The crew create two new notifications for the damaged support blocks and then continue the remainder of the pipeline inspection the following day. In response to the damaged support blocks, the maintenance planner creates a work order with two tasks to correct the damage. The job is allocated to a work crew who then perform the corrective actions and confirm the work order.

Integration:

• Integrates to actual costing scenario D50• Maintenance work can be executed similar as

in scenario D56

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Scenario D59 – Operational Risk Management – Incident Management

Highlights:

• Usage of incident reporting in EHSM 2.0• Extensive use of workflows• Role based system access using Netweaver

Busines Client• Easy data capturing and status update in work

lists

Process Overview:

This Operational Risk Management scenario starts with the capturing of an accident on a mine site during which a truck got damaged and its driver got injured. The reporter just captures basic information before submitting the report to a manager who starts the investigation and capturing of data to complete all relevant information. At the end maintenance notifications are triggered to initiate the repair of the damage equipment and measures to avoid the risk of happening again.

Integration:

• This scenario triggers maintenance notifications which can be processed/continued as in scenarios D56 (corrective maintenance

• Master data integration into Plant Maintenance

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Solution Architecture

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Mining V1.606 Best Practice Landscape & Components Overview

SAP NetWeaver7.3

Mining Best Practice AU V1.606

SAP ERP (SAP ECC 6.00 EhP6), EHSM 2.0

Best Practice Baseline AU V1.606

16 Mining specific Scenarios delivered as content on top of SAP ERP & Baseline AU

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Best Practice Baseline AU V1.606

Business Scenarios available within Baseline AU V1.606 package:

•Accounting

•Materials Management & Procurement

•Services

Scenarios typically replaced by Mining specific scenarios:

•Sales

•Manufacturing

http://help.sap.com/bp-baselinepackages

Best Practices Baseline AU V1.606

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Best Practice Baseline AU V1.606Best Practices Baseline AU V1.606

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Configure your solution based on SAP Best Practices for Mining

Let‘s assume, you need the following (Use Case 1):

1.Start with the main requirements in a “Lean Version”• Basic Accounting and Costing for your Region• Basic Materials Management• Maintenance for your Mines• Production Execution for your Mines

2. In a 2nd project phase leverage into “Extended Version”• Contract to Cash• Bulk Transportation• Quality Management• EHSM

Project Preparation:Project team reviews and selects scenarios

Mining Best Practices AU V1.606

The building block concept enables you as our customer or partner to install and deploy only those scenarios and solution areas of SAP Best Practices for Mining that you really need!

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Mapping Scenarios to Building Blocks

Scenario ID

Scenario Name AreaBuilding Block

( related for Mining)

396 Coal Mining

Production 393, 394 397 Coal Blending

398 Copper Mining

399 Copper Concentrate & Cathode Production

395 Cost PlanningCosting 393, 394

D50 Cost Actuals

D51 Rail Bulk Transportation Internal Distribution 393,394,D45,D43, D44

D52 Contract to Invoice Coal, Bulk Transportation FOBCommodity Sales,

Bulk Transportation,

QM

393,394,D45,D43, D44, D48

D53Contract to Invoice Coal, Bulk Transportation DES incl. Freight

D54 Contract to Invoice Concentrate, Bulk Transportation, QM

D55 Contract to Invoice Cathode

D56 Corrective Maintenance

Enterprise Asset Management

393,394,D45, D46, D49D57 Preventive Maintenance

D58 Rotable Management

D61 Linear Asset Management

D59 Operational Risk ManagementEnvironment, Health & Safety Management

D46,D47

Mining Best Practices AU V1.606

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Extended Version:

Sales & Distribution, Transportation, QM

EHSM

BuildingBlock

BuildingBlock

SAP Best Practices for Mining – Flexibility Through Building Blocks

BuildingBlock

Lean Version:

Financials, Controlling

Plant Maintenance,

Material Mgmt., Production

D44

TSW

D43

SD

D45, D46, D49PM

393Delta FI&CO

D48

QM

394Delta MM/PP/Master Data

101Baseline Org.Structure

104BaselineMM.

1..Baseline…

393Org.Structure

D47

EHSM

Use Case 1

Mining Best Practices AU V1.606

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Easy Installation of your Solution

Best Practice Solution Builder and Implementation Assistant support the installation of BP Mining.

All the technical objects need to be installed are loaded into Solution Builder.

Guided Procedure to install your solution, incl. some manual steps.

Your selected solution or the whole solution can be installed within short time frame.

System Installation:Basis administrator implements selected scenarios

Mining Best Practices AU V1.606

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Value of Mining Best practice solution to non Australian Partners & Customers

Automatic Solution Assistant driven Installation works only based on AU baseline version

However, there is high value also for non- Australian companies as of our guiding Design Principles:

•Focus on typical & global industry processes rather than local Australian requirements

• Logistics & Supply Chain processes designed globally

• FI / CO set up with group currency & local currency

• Sandbox only installation incl. AU Baseline to familiarize with scenarios

• Configuration documents delivered to allow manual installation on alternative base (other baseline, existing implementation, etc.)

• Potentially further localized versions from SAP or packaged “All in One” solutions offered by Partners

Mining Best Practices AU V1.606

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© 2012 SAP AG. All rights reserved. 39Public

Value of Mining Best practice solution to non Australian Partners & Customers

• Localization mainly on interface between logistics and financials necessary

• Documents can be taken as basis for a Blueprint to shorten implementation time

• Best Practice system incl. AU Baselines can be used as quick validation system or early training system

Mining Best Practices AU V1.606

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Q & A –> where to find additional information

For detail information, please check http://help.sap.com/.

Mining Best Practices AU V1.606

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Partner Involvement - Testing

The following Partners have taken part in the Acceptance Test (final test before shipment, duration 2-3 weeks) to gain in-depth knowledge in the particular SAP Best Practices solution, identify issues and give feedback for the next release

* EHSM / ORM scenarios

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