Maximizing SAP in Mining and Metals Operations€¦ · Maximizing SAP in Mining and Metals...

Maximizing SAP in Mining and

Metals Operations

Stephan Kotze SAP Mining and Metals Forum

Mannheim – Germany

September 2012

Copyright © 2011 – 2012 Accenture All rights reserved.

Accenture literally ‘wrote the book(s)’ on Lean Six Sigma, MES and is a thought leader in Operations Excellence

Lean Six

Sigma for

Service – Best

Sellier

Conquering

Complexity – Best

Seller

Lean Six

Sigma – Best

Seller

Innovation in

Manufacturing

Fast Innovation – Best Seller

Smart Growth:

Innovating to

Achieve High

Performance

MES Guide for

Executives

A Guide to applying

S95

Driving Global MOM

transformation

programs

What is Lean Six

Sigma – Best

Seller

Doing More with

Less – New Book

Business Process Oriented

Implementation of Standard

Software

High Performance through

Process Excellence

Industrial Process

Optimization

Performance

Assessment of

Control Loops

Operational Excellence Operations

Management &

Automation

Business Process

Lifecycle Management

Quality

2

http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture_Lean_Six_Sigma.pdf


• SAP for core operations

considered low functional fit.

• “Start with the basics”.

• More often than not = back

office capabilities.

• Extend as you mature.

Mining & Metals companies have significant opportunity to aggressively drive additional value from Operations.

Traditionally SAP clients often stayed clear of using SAP in core operations.

Market focus

& positioning

Distinctive

capabilities

Performance

Anatomy

• Demand for increased levels of agility drives requirement for

tighter integration of Operations with Business management.

• Increased modernization and simplification of application

landscape:

SAP Industry solutions

Increased application of Advanced Control and MOM* solutions

• Partner solutions: Mature accelerators and partner building

blocks further extent SAP into core operations.

* MOM = Mining/Metals Operations Management 3


Mining/Metals companies are unlikely to become High Performers ….

…… if they cannot become High Performers in Operations Management!

Ensure predictable availability of production facilities

Ensure production process stability

Optimize end-to-end value chain

Optimization

Opportunity

Immediate

Opportunity

(Variability Reduction)

Current Plant Status Good Practices Potential

4


Business Capabilities naturally extend across solution boundaries in Operations Management

… and all domains need to operate in synchronisation to achieve High Performance

5

Plan & Schedule

Execute

Collect Data

Monitor

Performance

Analyze

Performance

Improve

Field Devices

Plant Control

MOM*

ERP

BI

* MOM = Mining/Metals Operations Management


In Operations, value is enabled by Mining/Metals Operations Management capabilities

….. and monitored/tracked/reported by ERP.

Process

Variable

StdDev = 0.342%

StdDev = 2.43%

StdDev = 0.043%

StdDev = 0.495%

After Before

Reducing process variability..

. . . drives a cost reduction and

productivity increase

And creates a new baseline for

further improvement

Previous Process

Variability

Improved

process

New operating point

established

Sample Client Experience

A large mining company needed to

increase throughput and generate a roadmap for continuous

improvement. Together we:

• Assessed value for various

customer-related elements including variability control and

throughput increase

• Developed an implementation

roadmap including project prioritization, champions,

sponsors, timelines, and value

capture profile

• Developed follow-up processes for tracking progress and

generating new ideas for the

pipeline

• Implemented Quick Hits of up to 40% reduction in variability, 4%

increase in productivity, and 7%

reduction in energy consumption

Production

increase

Cost

Reduction

6


Opportunity presents itself in the end-to-end integration of Operations Management Processes

… both vertically as well as horizontally.

Quality Management Request & Response

(Product Releasing, Product Certification)

QOM

Transactional Data Repository

Master Data

Management

Master Data Repository

Quality

Specifications

Dimensional

Specifications

Material

Definitions

Production

Orders

Internal

Quality Specification

Order Confirmation

Material

Lots

Quality

Results

Product

Evaluation

Results

Quality

Yield

Results

Material

Movement

Results

Internal Quality

Specifications

Product

Classification

Results

QOM

Internal Request

Management


Releasing

In Process Waiver

Approval

Product Classification

Product Evaluation

Non LIMS

Quality Results

Data Collection

Samples Taken

Data Collection

Quality Analysis

In Process

Waived

Orders

Test Scheduling Samples

Taken

Results

Requested

Sales

Orders

Customer

Requirement

Customer

Waived

Orders

SAP SD

SAP QM

SAP PP

Sales Order

Processing

QM Order Confirmation

Customer Waiver

Approval


Quality

Specifications

Dimensional

Specifications

Material

Definitions

Master Data

Management


Requested

Sales

Orders


Order Confirmation

Customer

Requirement

Order Confirmation

Dimensional

Specification

Confirmation

Product

Certification


Releasing

Customer

Requirement

Releasing

Dimensional

Specification

Releasing

QM Product Releasing

Production Order

Processing


Confirmed

Sales

Orders

Production

Orders

Confirmed

Sales

Orders


Confirmed

Sales

Orders

Customer

Requirement

Customer

Waived

Orders

Customer

Waived

Orders

MES Production Order Management


Production

Orders

Material

Lots

Product

Classification

Results

MES

Work Order

Tracking

Production Order

Manual

Usage Decision

Product

Evaluation

Results

Customer

Requirement

Quality

Results

1

2

3

4

5

6

7

Quality

Results

8

9

10

10

11



QOM


Master Data

Management


Quality

Specifications

Dimensional

Specifications

Material

Definitions

Production

Orders

Internal


Order Confirmation

Material

Lots

Quality

Results

Product

Evaluation

Results

Quality

Yield

Results

Material

Movement

Results

Internal Quality

Specifications

Product

Classification

Results

QOM

Internal Request

Management


Releasing

In Process Waiver

Approval


Product Evaluation

Non LIMS

Quality Results

Data Collection

Samples Taken

Data Collection

Quality Analysis

In Process

Waived

Orders


Taken

Results

Requested

Sales

Orders

Customer

Requirement

Customer

Waived

Orders

SAP SD

SAP QM

SAP PP

Sales Order

Processing


Customer Waiver

Approval


Quality

Specifications

Dimensional

Specifications

Material

Definitions

Master Data

Management


Requested

Sales

Orders


Order Confirmation

Customer

Requirement

Order Confirmation

Dimensional

Specification

Confirmation

Product

Certification


Releasing

Customer

Requirement

Releasing

Dimensional

Specification

Releasing


Production Order

Processing


Confirmed

Sales

Orders

Production

Orders

Confirmed

Sales

Orders


Confirmed

Sales

Orders

Customer

Requirement

Customer

Waived

Orders

Customer

Waived

Orders



Production

Orders

Material

Lots

Product

Classification

Results

MES

Work Order

Tracking

Production Order

Manual

Usage Decision

Product

Evaluation

Results

Customer

Requirement

Quality

Results

1

2

3

4

5

6

7

Quality

Results

8

9

10

10

11

Sample Client Experience

An international steel company needed to increase through yield

and create a basis for continuous

improvement. Together we:

• Created an end-to-end process blueprint covering full application

portfolio.

• Embed control processes for

tracking performance.

• Developed a roadmap for a transformation program

(including project prioritization,

champions, sponsors, timelines, and value capture profile).

• Implemented Integrated Quality

Operations Management

Solution to increase # auto evaluations; optimize claims

investigation; reduce # 1st intent

re-classes; optimize process capability & reduce excess

material.

7


A consistent set of standard, end-to-end Operations Management Capabilities exist across Product/Region/Plant

… and you should manage exceptions, and not allow it to become the rule.

8

Business

Architecture

Technology Architecture

Application Architecture

Data Architecture

Common (70% of solution)

Commodity specific (20% of solution)

Site specific

Sample client experience


Benefits from overall process integration often outweigh best-of-breed solutions in non-distinctive capabilities

End-to-end

processes

Optimized

solution

landscape

Distinctive capabilities High Performance

Business Research

Business Process

Management

Solution

accelerators

9


Significant business opportunities exist to drive incremental value through extending the usage of SAP footprint …..

…. by taking and end-to-end view of Operations Management capabilities and

application landscape across ERP and MOM.

10

Plan & Schedule

Execute

Collect Data

Monitor

Performance

Analyze

Performance

Improve

Common (70% of solution)

Commodity

specific (20% of solution)

Site specific Quality Management Request & Response


QOM


Master Data

Management


Quality

Specifications

Dimensional

Specifications

Material

Definitions

Production

Orders

Internal


Order Confirmation

Material

Lots

Quality

Results

Product

Evaluation

Results

Quality

Yield

Results

Material

Movement

Results

Internal Quality

Specifications

Product

Classification

Results

QOM

Internal Request

Management


Releasing

In Process Waiver

Approval


Product Evaluation

Non LIMS

Quality Results

Data Collection

Samples Taken

Data Collection

Quality Analysis

In Process

Waived

Orders


Taken

Results

Requested

Sales

Orders

Customer

Requirement

Customer

Waived

Orders

SAP SD

SAP QM

SAP PP

Sales Order

Processing


Customer Waiver

Approval


Quality

Specifications

Dimensional

Specifications

Material

Definitions

Master Data

Management


Requested

Sales

Orders


Order Confirmation

Customer

Requirement

Order Confirmation

Dimensional

Specification

Confirmation

Product

Certification


Releasing

Customer

Requirement

Releasing

Dimensional

Specification

Releasing


Production Order

Processing


Confirmed

Sales

Orders

Production

Orders

Confirmed

Sales

Orders


Confirmed

Sales

Orders

Customer

Requirement

Customer

Waived

Orders

Customer

Waived

Orders



Production

Orders

Material

Lots

Product

Classification

Results

MES

Work Order

Tracking

Production Order

Manual

Usage Decision

Product

Evaluation

Results

Customer

Requirement

Quality

Results

1

2

3

4

5

6

7

Quality

Results

8

9

10

10

11



QOM


Master Data

Management


Quality

Specifications

Dimensional

Specifications

Material

Definitions

Production

Orders

Internal


Order Confirmation

Material

Lots

Quality

Results

Product

Evaluation

Results

Quality

Yield

Results

Material

Movement

Results

Internal Quality

Specifications

Product

Classification

Results

QOM

Internal Request

Management


Releasing

In Process Waiver

Approval


Product Evaluation

Non LIMS

Quality Results

Data Collection

Samples Taken

Data Collection

Quality Analysis

In Process

Waived

Orders


Taken

Results

Requested

Sales

Orders

Customer

Requirement

Customer

Waived

Orders

SAP SD

SAP QM

SAP PP

Sales Order

Processing


Customer Waiver

Approval


Quality

Specifications

Dimensional

Specifications

Material

Definitions

Master Data

Management


Requested

Sales

Orders


Order Confirmation

Customer

Requirement

Order Confirmation

Dimensional

Specification

Confirmation

Product

Certification


Releasing

Customer

Requirement

Releasing

Dimensional

Specification

Releasing


Production Order

Processing


Confirmed

Sales

Orders

Production

Orders

Confirmed

Sales

Orders


Confirmed

Sales

Orders

Customer

Requirement

Customer

Waived

Orders

Customer

Waived

Orders



Production

Orders

Material

Lots

Product

Classification

Results

MES

Work Order

Tracking

Production Order

Manual

Usage Decision

Product

Evaluation

Results

Customer

Requirement

Quality

Results

1

2

3

4

5

6

7

Quality

Results

8

9

10

10

11


Maintenance and Reliability

Manufacturing Execution & Automation

(Industrial Automation)

Environment Health & Safety

Commodity

Trading &

Risk

Management

(CTRM)

Manufacturing

Supply Chain

(Planning

Scheduling &

Execution)

Integrated Value Chain Optimization

Execution Excellence

Commercial Optimization Plant Optimization

11

Solutions and services that bring together

disperse pieces of the value chain in a

collaborative environment that supports

fast and proactive decision making;

responding to the need of a highly

dynamic and volatile market.

Solutions and services to help

companies managing their plants

improving uptime of plant and

equipment, increasing operational

performance and ensuring compliance

with environment, health and safety

regulations.

Not only have we “wrote the book(s)” but we have significant experience in delivering results for our clients in Operations.


Thank you!

Maximizing SAP in Mining and Metals Operations€¦ · Maximizing SAP in Mining and Metals...

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