ETM Overview en (1)

Elisabeth Schönfelder-Lück

Solution Management, SAP AG IBU ADMEC Eng., Construction & Operations

SAP in EC&OEquipment and Tools Management (ETM)

SAP AG 2003, Title of Presentation, Speaker Name / 2

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

Site Manager

Project

Requisition note

Equipment and Tools

Requisition note

Equipment and Tools

Equipment Yard

Shipping Document

Construction Site Construction Site

Shipping

Equipment Settlement, Billing, & Performance Mgmt.

Cost Allocation

Performed Hours


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 toCustomer requirements

� Flexibility of Price determination

� Visibility of Equipment Performance, Profitabilityand Utilization


Suppliers & Partners

Customers & Channels

Decide Strategy Design & Engineering Procurement Construction Operations

Enterprise Management & Support

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

SAP Engineering Construction & Operations Solution Map


Suppliers & Partners

Customers & Channels

Decide Strategy Design & Engineering Procurement Construction Operations

Enterprise Management & Support

Project Management

Planning & Scheduling

Project Execution

Contract Management

Project Controlling

Project Development

Design & Engineering

Basic Design

Detail Design & Engineering

Procurement

Sourcing

Requirements Planning and Purchasing

Expediting & Tracking

Build

Site Materials Management

Workforce Management

Prefabrication & Assembly

Commissioning/Startup/Handover

Facility & Plant

Operations

Marketing & Sales

Facility/Plant

Maintenance

Real Estate

Management

Service Operations

ETM is the “Door Opener” in Construction Companies

Opportunity Management

Business Development

Equipment & Tool Management


Performance Based

Equipment

Performance Based

Equipment

Time Based EquipmentTime Based Equipment

Multi-Part EquipmentMulti-Part Equipment

Example- Cranes

Example- Excarvators

Example- Nails, Bolts- Drilling Maschines- Screwdrivers

Example- Formwork- Scaffolding

Material (consumable and non-

consumable materials)

Material (consumable and non-

consumable materials)

• Billing according to usage on site• Individual Stock

Billing according to counter readings• Individual Stock

• Billing or Sale and buy back• No Individual Stock

• Sale and buy back• No Individual Stock

Terminology


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


SAP EC&O – Equipment Management Solution (I)

TargetTargetTargetTarget SegmentsSegmentsSegmentsSegments

Construction Companies

Ports

Airports Communities

Any company that needs to handle equipment e.g.

Equipment Manufacturers


Owner

• Purchasing and Insurance• Equipment as Asset

• Depreciation posting

SAP EC&O – Equipment Management Solution (II)

Equipment Manager

• Leases Equipment from owner• Maintains the Equipment

• Plans requirements, manages stocks• Rents equipment and charges recepient

Recipient

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

InvolvedInvolvedInvolvedInvolved PartiesPartiesPartiesParties


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

Requisition note

Requirement from

Site Manager

Recipient, e.g.

Construction site

1.1.Shippingdocument

2.2.

Availability?

Equipment

Manager

3.3.


SAP EC&O – Equipment Management Solution (IV)

Owner

Lease 700,-

Deprec. -300,-

Profit 400,-

Equipment Manager

Rent 2.000,-

Lease -700,-

Profit 1.300,-

Invoice 3000,-

Debtor/LenderSite Manager /Project

Rent ext. 3000,-

Rent intern -2000,-

Profit 1000,-

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


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 forplanning and usage of equipment

� Construction Site Manager orders the equipment from the Administrator to be used on construction sites/ projects

� Customer. Uses equipment in case of external rental

Equipment Administrator

Site Manager

Administrator

Equipment Owner

Customer - Lender

Construction Site


Create Requisition note (optional)

Shipping- / PBE document

Periodic settlement

Confirmation of requirement (optional)

Periodic billing

AdministratorHandling of equipment and material

Recipient Equipment

Construction site

Equipment Rental: Process Flow


Processes

SAP EC&O Equipment Management


Recipient

Cost rental

Cost provision fee

Revenue rental

Revenue loading

Revenue provision fee

Debtor

Cost rental

Cost provision fee

Asset

Owner / Administrator

Revenue rental

Deprecation costMaintenance cost

Equipment

Internal Billing External Billing

Cost loading Cost loading

(I) External Rental: Value Flow


Shipping document and/or PBE document

Warehouse RecipientAdministrator

EquipmentSite location

Process flow

Debtor

of Recipient

Asset

Cost center PM Order WBS Element

Revenue loading 10

Revenue provision fee 20

Cost deprecation 80

Revenue rental 100 Cost rental 100

Cost loading 15

Cost provision fee 20

Periodically deprecation 80

Periodical settlement with cost allocation

Debtor

Revenue rental 120

Revenue loading 15

Cost rental 120


Cost loading 10


RecipientSender

I) External Rental: Complete Process


Asset

Owner / Administrator

Revenue rental

Deprecation costMaintenance cost

Equipment

Recipient

Cost rental

Cost provision fee

Internal Billing

Cost loading

(II) Internal Rental: Value Flow


Shipping document and/or PBE document

Warehouse RecipientAdministrator

EquipmentSite location

Process flow

Asset

Cost center PM Order WBS Element

Revenue loading 10


Cost deprecation 80

Revenue rental 100 Cost rental 100


Periodically deprecation 80


Cost loading 10

RecipientSender

(II) Internal Rental: Complete Process


Warehouse

Cost center

Recipient ASite location

Recipient BSite location

WBS element

Shipment of material

Material

Shipping document Shipping document

Material sales

Material sales

Material repurchase

Revenue 100Cost 100

Revenue 80Cost 80

Revenue 100 Cost 100

Material


WBS element

(III) Sales and repurchase of non consumable material


Warehouse Recipient A

Site location

WBS element

Shipment of material

Shipping document

Cost

Cost allocation (automatical goods movement with shipping)

Warehouse inventory

IV) Consumable material


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


SAP EC&O provides a solution forequipment 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

Summary


ETM Customer List

� Max Bögl, German

� Leonard Weiss, German

� Wolff & Müller, 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

� Hünnebeck, Germany

� Precision Drilling, Canada

� Nohl, Germany

� Oevermann, Germany

� Mammoet, Netherlands

� …….

ETM Overview en (1)

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