SAP FOR MILL PRODUCTS

The Foundation for Sustained Profitability

in Mill Industries
ITC Infotech has helped
leading Mill Products companies
transform their business with SAP
SAP for Mill Products enables mill product manufacturers to manage the
entire enterprise. With SAP solutions, organizations can integrate SAP ECC 6.0 Solution with IS Mill
commercial, manufacturing and financial processes to support business enabled variant configurations
performance improvements and, ultimately, sustained profitability and
growth. are designed to improve overall
A variety of industries rely on SAP for Mill Products solutions, including: enterprise business-process and
manufacturing performance.
The industry solution enables
Primary metals and fabricated metals the visibility and responsiveness
needed to adapt to changing
Packaging and containers economic conditions. It delivers
performance to sustain your
Pulp and paper profitability and growth through
improvement in resource
Building materials and components planning, integrating disparate
solutions and ensuring
Plastic products conformity to the specifications.

SAP ECC 6.0 Solution with IS Mill enabled variant

Textiles and woven materials
configurations take care of the key aspects of Mill
Industries i.e., product definition by attributes,
defined in terms of configurable material,
Solid wood
material variants and batches.

Furniture

Cable and wire

 Configurable Materials
Class SHEET Variant Class(300) Batch Class(023)
Sheet Characteristics Characteristics Characteristics
Material Length Length
master data Packaging Cat. Quality
Roll
Class SHEET Grade Packaging Packaging
Material
master data Grade Thickness Quality

Thickness Width
Class SHEET Configurable
Width Usage Material
Grade
Thickness

Configuration Configured Material

Profile Variants
Reference
Material Variants
Max. BOM Max. Routing
Roll_St42_3_2 Sheet_St42

Partially configured
Material Material
Fully configured

master data master data Object Object

dependencies dependencies
Class SHEET Class SHEET
Grade St42 Grade St42
Thickness 300 Thickness

Width 2000 Width

In order to define the product specifications, a variant class and characteristics are used.
Variant classification is used to configure a product and also supports batch management
using batch classification to track a product through supply chain. Customer order gets
created for configurable material and configuration profile is used to control the process of
Basics of Variant Configuration this configuration in a sales order. A Bill of material (BOM) and routing are created for a
configurable material with all possible combinations. These are called as Super BOM /
Variant Configuration is useful where an organisation produces new variants of a product to Routing or Max BOM / Routing. Object dependencies will be used to control the selection of
meet the customer demand. These products are similar in nature but have different BOM components and processing steps for a particular variant.
dimensions or physical properties. These products are configured or customized or tailored
as per customer's requirement, using classification with different specification values.
Classification of product does not help in defining different SKU's for product variants, but
to have only one configurable material to cover all product variants.
Configuration of a product in sales order takes a reference from material variants based on
the specification values requested by the customer. Material variants are commonly used
products (high running), have fixed specifications and can be produced without sales order,
and are kept in warehouse to service the customer faster.
 Make-to-Order Scenario
BOM
Sheet Configurable Material
Roll Created in Material Master
+ For high number of character
Production combinations in a Make-to-Order
Reel Assigned to a Class
+
Order environment
Several characteristics remain undefined
+
Customer ABC Poymers Chemical Sheet 200to Costing only as sales order costing
Material Sheet. +

Quantity 200 to Example Paper Coil

Sheet
Due Date Grade AAA-ZZZ
Roll CSP Weight /m2 0-2000
September 15
Object Reel Length 0-3000 m
Dependencies Width 50-5000 mm
Configuration
Poymers Chemical Color From table
Grade A
Thickness 350 Variant
Configuration
Width 2200 Created in Material Master
+ Characteristics are pre-defined on
Grade A
material level. Typically standard
Routing Thickness 350
Assigned to a configurable reference material
+
price is calculated for stock
All characteristics defined
+ valuation prior to sales order entry
Packaging Width 2200
Periodic costing is done
+
Sheeting CSP Example Newsprint FTD
Grade C22
Winding
Weight /m2 475
Length 900 m
Width 200 mm
A Material Variant gets configured in the sales order by selecting various options from the
Color FTD Pink
characteristics. Based on the selected characteristics values and object dependencies,
components from super BOM and operational steps from super routing get selected in order
to manufacture a variant. These selected components and operations get copied to the Partially Configured Variant
production order to produce the variant configured in sales order. Created in Material Master
+ Characteristics can be completed
during sales order entry. Changeable
Assigned to a configurable reference material
+
characteristics do not influence
Some characteristics defined, some remain
+ value of material. Cost estimation
undefined can be done prior to sales order entry
or during sales order entry
Costing only as sales costing
+

Example Coil, A, 550, pearl white

Grade A
Weight /m2 550
Length 0-3000 m
Width 50-5000 mm
Color Pearl white
Key Operational Benefits
Order Combination: In discrete
manufacturing, a single batch of a grade
may be used to produce numerous types of
products belonging to different
dimensions, properties and customers.
While the end product production is done
for specific production orders, inputs like
coil/slab may be issued together. Capacity
Planning, Order Release functions are
carried out in a cumulative manner. Order
Combination function of SAP IS-Mill
provides capability of combining several
standalone orders as a combined order.
While finished goods produced is assigned
and posted against child order, rest of the
activities like Goods Issue, Capacity
Planning, Scheduling, etc are done at
combined order level.
Under Delivery Tolerance: In make-to-
order production, under- or over-delivery is
usual for material handled in pieces/
batches. If remaining quantity is within the
under-delivery tolerance of the sales order
item, further planned orders or purchase
requisitions should not be created in MRP.
IS-Mill provides features to avoid creation
of small quantity planned order (during
MRP run) thru use of under delivery
tolerance functionality.
Fast Data Entry: IS-Mill comes with an easy
to use feature called Fast Data Entry. It
allows effective and faster data entry of all
the items in sales / purchase / production
orders and Goods Receipt.
Batch Splitting during Goods Receipt:
Aid of data entry where most of the
material characteristics are similar.
Single Unit Batch: Batch is a generic term
in SAP which may be used for multiple
receipts as well as partial issues. Single
Unit Batch function ensures the intended
behavior to suit process industry
requirement.
Original Batch: These statistical batches
provide a lot of assistance for
characteristic inheritance and adoption
during order execution process. While
Original batch is a standard SAP feature, it
has been made more powerful in IS-Mill
especially related to inheritance during
goods receipt.
Stock Reports based on Characteristics:
IS-Mill has inventory reports based on
characteristics of a material enabling quick
and easy access for logistics team.
Process Batch: Process Batch function is
specific to IS-Mill solution which provides
functions like recording of characteristics
during production process and subsequent
transfer to inventory batches. These
batches provide a strong linkage of Issued
and Produced inventory batches during a
complex and long production process.
Customer and Vendor Info Records: Why ITC Infotech?
Additional info records with product
Domain Enriched Consulting Team
attributes may be maintained and pulled
(To deliver client Specific needs**)
during sales and purchase functions.
Cutting Processes: In manufacturing
process industries, there are several
Pre-built Solutions
(IS-Mill CoE - Solution Baskets)
4
cutting processes which are not so relevant
from costing and process control Industry Package (IS-Mill)
perspective but they make changes to to meet mill industry-specific needs 3
product shape/size requiring inventory
reclassification and accurate tracking. IS-
Mill has special transactions to handle the
SAP Best Practices
Baseline Package
2
processes like shearing, slitting, oiling, re-
coiling in a simple and efficient way.
1
SAP OFFERINGS ITC INFOTECH OFFERINGS
** Business Fundamentals, Statutory Regulations, Product Mix, Global Market
ITC Infotechs Capability Framework Success Smiling: Select Case Studies
in SAP for Mill Products Implementation
5000+ SAP End Users supported globally
+ A Leading Steel Manufacturer with a strong foot-hold in Asia-
Pacific Region
Global
+ SAP Engagements including Complex End-to-End
Implementations involving SAP IS Mill An integrated transactional system for Financials and Logistics
processes: enabled thru on-line shop floor integration, Robust
Domain
+ knowledge in Mill manufacturing with Variant
Transactional Controls, Intelligent visibility on inventory, shop-
Configuration, Alternative Units of Manufacturing and Selling
floor, order fulfillment, profitability and key KPIs.
Experience In depth experience in Global Manufacturing
+ Industries

A global BOPP film manufacture with customer &

Project Accelerators comprising of pre-defined templates for
+ manufacturing foot print across globe
Project Documentation, standards and procedures for
Re-implemented ECC 6.0 with IS-Mill functions eliminating all
development activities
customized solution in erstwhile SAP 4.7 version through
Pre-Build
+ Interfaces, User-Exits, Conversion Routine, Report leveraging SAP Variant Configuration, most of the IS-Mill
and Smart Form features interfaced with Greycon X-Trim Optimizer.
Industry
+ Best Practices Pre-built Users Roles, Authorization
and SoD Matrix
A global manufacturer of uncoated polyimide films with
ITC Infotech Assets
Governance Framework, Service Delivery RACI Matrix
+ complex manufacturing and supply chain network
Landscape & Transport strategy
+ Upgraded to SAP ECC 6.0 with IS-Mill to build their apical solution
along with extensive use of Variant Configuration. Key functions
Master data migration strategy
+
implemented were Raw Material and Operational Supplies
Authorization strategy
+ procurement, MRP, Production Planning / Execution, Variant
Configuration for procurement, production and sales processes.
Integrated information flow across all modules was a big
Certifications
+ such as CMM Level 5, ISO 9001 and BS7799 improvement in decision making, logistics process control and
ensure mature processes online accounting / costing.
Proprietary Accelerated ASAP Methodology
+
Delivery Process &
Methodology
About SAP Services from ITC Infotech

As a global SAP services solution provider, ITC Infotech enables better insights, streamlined operations and accelerated
returns on your investments in SAP. The companys HANA based solutions provide relevant and timely business intelligence
which drive better decision-making. ITC Infotechs model for SAP BPC (Business Planning & Consolidation) facilitates
reduction of planning, budgeting and reporting cycle times. The company offers solutions in the areas of Mobility and
Advanced Analytics. In addition to these, ITC Infotech delivers comprehensive end-to-end implementation and support
services to global customers in various industries including Manufacturing, Mills Metals & Mining, Consumer & Packaged
Goods and Retail.

For more information, please write to: contact.us@itcinfotech.com

www.itcinfotech.com