Investment Management in PM SAP Best Practices for Chemicals (U.S.)

SAP Best Practices

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Purpose The purpose of to describe business processes related to Investment

Management within Plant Maintenance.

Purpose and Benefits:

Scenario Overview

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Required SAP ECC 6.00 enhancement package 3

Company roles involved in process flows Plant Maintenance Specialist

SAP Applications Required:

Scenario Overview

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Overview

The Investment Management (IM) component provides functions to support the planning, investment, and financing processes for:

• Capital investments, such as the acquisition of fixed assets as the result of-house production or purchase

• Investments in research and development

• Projects that fall primarily under overhead, such as continuing education of employees or establishing new markets • Maintenance programs

The term investment, therefore, is not limited only to investments you capitalize for bookkeeping or tax purposes. An investment in this context can be any measure that initially causes costs, and that may only generate revenue or provide other benefits after a certain time period has elapsed (for example, plant maintenance).

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Features

Application module IM (Investment Management)

Application module PS (Project System)

Module IM for overall planning, budgeting and controlling of Investment projects, Maintenance projects and operational maintenance activities

Module PS as planning and controlling tool for individual measures

Maintenance work orders as cost collector for handling of operational and project-related activities

Fully integrated process of Financials, Asset-Accounting, Controlling and Plant Maintenance

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The Asset Life-Cycle

OperatingOperating

Production Maintenance

Quality assurance

Research & Development

Asset retirement

Decision for Investment

Construction Projection

Procurementprocess

Building Assembling

EAM

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General Program structure

• Shows the structure of the enterprise

• Based on technical structure

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Integration IM/PS and PM

Investment program

Projects

Work order

Maintenance program

Projects

Work order

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Invest Program Structure

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Maintenance Program Structure

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Budgeting Maintenance

IM-Program position

Distrib

utio

n

Work order

BudgetBudget

BudgetBudget

Planned Values

Actual Costs

Active availability check

Aggregation

assignments by Functional location

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Process Cost planning

Cost planning based on: • Objects - Count / Types

• Scale of planned measures

• Components and services

• Estimation of unplanned measures

Budget

Actual

Compares Modifying

Costs: • Workt

• Components

• other costs

Reporting

Adjustment

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Example: Scenario Plant Maintenance

CH-MAINT

BP01

PRO

OP

Program:

Projects:

Pr 1.1

Pr 1

Pr 1.2 Pr 1.3

K1

PROD

K2 K3

Plan

Plan

Budget

Cost center

Ball system 1

BP01-PM-20

Plan

BP01

KMA

KMA1

Technical structure:

Work order

Cost center WBS

Internal laborComponents

Settlement to cost centger

Ball system 2

Ball system 3

Operational Maintenance

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Fiscal year changing

Program position 2006Program position 2006

BudgetBudget10001000

Distrib.Distrib.10001000

Work order 1Work order 1closedclosed 300300

Project XProject X 600600

Work order 2Work order 2closedclosed 100100

J F M A M J J A S O N D

2006

Program position 2007Program position 2007

Budget year before Budget year before 600600Budget newBudget new 3000 3000

WholeWhole 36003600distributeddistributed

Project YProject Y 10001000

Work order 3Work order 3 10001000

J F M A M J J A S O N D

2007

Project XProject XBudgetBudget 600600+ Addition+ Addition 10001000

Year changing

new

new

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Reporting

Example: Availability

Program 2006Program 2006

BudgetBudget Act. ObligoAct. Obligo Avail.Avail.

Roll-up

BudgetBudget ActualActual ObligoObligo Avail.Avail.

Program position

assignedassignedoperative Objectsoperative Objects

Work order 1Work order 1

Work order 2

Project XProject X

Project YProject Y

1300 800 200 300

100100 2020 -- 8080

200200 180180 5050 -30-30

400400 150150 100100 150150

600600 450450 5050 100100

!

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Process Flow DiagramInvestment Management in Plant Maintenance