Title

SAP Best Practices for MiningV1.600

(on Baseline Australia)

SAP for Mining - Overview

SAP Best Practices for Mining V1.600 –Available Scenarios

SAP Best Practices for Mining V1.600 – Architecture

SAP AG 2007, BP Mining Overview V1.600 / Harald Schlueter / 3

Challenges in the Mining Industry Today...

Increase Production

In response to increased demand, existing

operations are running at max capacity,

expansion projects have to be managed

Tight Supply Situation

Tight supply situation for consumables e.g. tires,

explosives and for heavy equipment

Demand Growth

Industrialization in Asia drives up demand for

commodities (e.g. copper, nickel,

aluminum and iron ore)

Price volatility

For Commodity prices but also in bulk shipping

markets

Corporate Social Responsibility

Manage impact of mining activities on the community, the

environment and people

Tight labor market

Lack of expert workforce in Mining environment, high staff turnaround leads to knowledge

drain

Mergers & Acquisitions

Ongoing global industry consolidation requiring

flexible changes in information systems

support


Suppliers & Contractors

Customers & Service

Providers

Capital Project Management

Mining Processing Transportation Marketing

Business Planning & ComplianceGovernance Risk & Compliance, Corporate Social Responsibility

Strategic Portfolio Management Budgeting & Forecasting

Supply Chain ManagementDemand Planning

Supply Network Balancing

Transportation Management

Contact-to-CashCommodity Sales Contract Management Quality Management & Assay Handling

Operations ManagementMine Planning & Scheduling

Production Performance Management Quality Assurance & Stockpile Management

Reconciliation & Metal Statement Operators Training & Knowledge Management

Operational ComplianceOccupational Health, Safety & Incident/Accident Management

Emissions Management

Enterprise Asset ManagementCapital Investment Management & Decommissioning

Maintenance Cost Budgeting

Preventive & Corrective Maintenance Management Reliability Centered Maintenance Optimization

Supply ManagementMRO & Service Procurement

Strategic Sourcing

Remote Site Logistics

SAP for Mining – SAP’s complete solution offering for industry challenges


Mining


Customers & Service

Providers



Enterprise Management & SupportAnalytics

Strategic Enterprise Management Financial Analytics Operations Analytics Workforce Analytics

Financials Financial Supply Chain

Management Financial Accounting Management Accounting Corporate Governance

Human Capital Management

Talent Management Workforce Process Management Workforce Deployment

Corporate Services

Travel Management Project and Portfolio Management Real Estate Management Global Trade Services

Business Planning

Supply Chain Management

Contact-to-Cash

Operations Management

Operational Compliance

Enterprise Asset Management

Supply Management


Coal & Energy

Iron Ore PGM & Gold

Copper Diversified and otherMining

Companies

Nickel, Zinc, Lead,

Silver

SAP Serves All Major Mining Commodities


ESA enabling Platform

adoption IVN Partner

Management Continuous

SolutionEnhance-ments

SAP for Mining –Increasing Productivity for the Mining Industry

SAP Going vertical for Mining: “SAP for Mining”

IBU Mining Mining IACM Commodity

Pricing (O&G) B2B Market-

place Integr. (Quadrem)

1.st Mining Best Practice

Bulk Transport (Release 1)

Quality Mgmt. w. Assay Exchange

MCB Maintenance Cost Budgeting

End-to-End Mining Supply Chain Integration (APO+TSW)

xMII MES Mining Shop floor Integration

RLM Remote Logistics Management

IS-Mine Retrofit tocore (SAP ERP 2005)

<1997 1999 2000 2001 2002 20071998 2003 2004 2005 2006

Key Insights Industry expertise takes patience and time

You cannot buy yourself into industry leadership

Continuous customer contact and projects are key to development of our solutions

Continuous enhancement of the solution is key to success

Core ERP functionality



Customers & Service

Providers


















Strategic Sourcing


SAP for Mining – special SAP solution components in Business Function Set Mining to enable Mining processes

Remote Logistics Management

Manage Spares & Supplies for your

Mine Sites

Commodity Pricing

Pricing and Invoicing based on

Quotations and Qualities

Bulk Transportation

Plan, Schedule,Execute Bulk

Transports


SAP for Mining – special SAP solution components in Business Function Set Mining to enable Mining processes

SAP for Mining - SAP for Mining supports industry generic as well as mining-specific processes and provides you with key information that enables you to run your mining business effectively and profitably. SAP for Mining integrates production, commercial, transportation, distribution and support processes to enable enterprise-wide planning, execution, and reporting. SAP for Mining consists of several components. SAP for Mining includes the following special solution components designed to make Mining specific processes work:

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.

Remote Logistics Management – Remote Logistics Management enables you to manage complex supply strategies for the various supply materials, spare parts and items of equipment which are required at remote locations (e.g. at the mine site). Any maintenance order will automatically trigger the correct replenishment orders based on the predefined business rules assigned to the supply materials, spare parts and items of equipment for permitted supply strategies. Any required materials or items of equipment can be supplied by a central distribution center, or by a vendor via the distribution center. RLM can also control the dispatch of rented materials and equipment to remote sites. It also tracks rented items or repair items on their return journey back from the mine to the distribution center or vendor. RLM offers full visibility and tracking functionality for purchased and rented materials from the requesting maintenance or project order.

SAP Solution Enablers for the Mining Industry in “Business Function Set Mining”


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, SAP SCM, SAP PLM 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


Support for Industry Solutions

Financials

Human Capital Management

SAP ERPSAP ECCSAP ERP Central Component 6.00

ONE Industry Business Function Set for Mining (subset of BFS Oil&Gas)

Industry Business Function Set Mining

Generic Business Functions

SEVERAL Generic Business Functions can be activated in combination with Industry Business Function set

….

BF Commodities Management & Bulk Logistics

TSW TWO Business Functions for Mining. Can be activated separately. Each including very complete solution components (like LES or SD/MM)

TD MAP (F&A)

BF Remote Logistics Management

RLM

Within SAP ERP 2005, the SAP for Mining Solution makes use of the Industry BFS Mining (former IS-Mine)





Mining Best Practice AU V1.600 at a Glance

Based on SAP ERP 2005, SAP SCM 5.0, NW / BI 7.00

Based on Baseline Version Australia => Industry independent Scenarios

2 End to End Value Chain Scenarios: Mine to Customer

Bulk (Coal) Metal (Copper)

For Mining specific, complex business requirements

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


Mining Best Practice AU V1.600 – What’s New?

Stable mySAP ERP 2005 Base Re-use of some proven Mining industry best practice scenarios from 4.72 version

Mining Best Practice AU V1.600

New Scenarios in the following Solution areas: EH&S – Occupational

Health, Industry Hygiene and Safety


EAM / Rotables management

Supply Chain Planning in mySAP SCM

Major improvements: Apply most current ERP

2005 processes & technology

Improved design in Contract to Invoice scenarios

Streamlined End to end RLM scenario

Cost center, equipment and product cost planning & actuals


Scenario Overview Mining Best Practice AU V1.600

Scenario ID

Scenario Name Area

X40 Demand Supply Planning Supply Chain Planning (APO)

X50 Coal Mining

ProductionX51 Coal Blending

X52 Copper Mining

X53 Copper Concentrate & Cathode Production

X55 Cost PlanningCosting

X56 Cost Actuals

X60 Rail Bulk Transportation Internal Distribution

X61 Contract to Invoice Coal, Bulk Transportation FOBContract to Cash,

Bulk Transportation,

QM

X62 Contract to Invoice Coal, Bulk Transportation DES incl. Freight

X63 Contract to Invoice Concentrate, Bulk Transportation, QM

X64 Contract to Invoice Cathode

X70 Corrective Maintenance

Enterprise Asset ManagementX71 Preventive Maintenance

X72 Rotable Management

X73 Maintenance Cost Budgeting

X75 Supply to Remote Location

Remote Logistics ManagementX76 Returns from Remote Location

X77 Rentals Management Remote Locations

X78 Timed Delivery to Remote Location

X80 Occupational HealthEnvironment, Health & Safety

X81 Industrial Hygiene and Safety



Customers & Service

Providers


















Strategic Sourcing


SAP for Mining – SAP’s complete solution offering for industry challenges

X40

X50 X53X52

X51

X56X55

X60

X61-

X64

X75 X76 X77 X78

X80 X81

X70 X71 X72

X73


Mining Best Practices Scenarios mapped to Supply Chain

Sales & Shipping

TransportProcessingMining

Production

Stockpile Stockpile Stockpile

Month/week

Daily

Daily & Shift

Execution

18 months

Sales Forecasting

Integrated Supply Chain Planning

Detailed Processin

g Schedule

Rail & Shipping Schedule

Rail & Shipping Execution

Detailed Mine

Schedule

Maintenance

Production

ProcurementCosting

Quality

Maintenance

Production

ProcurementCosting

Quality

SalesStockpiling

Quality

2 End to End Value Chain Scenarios for Coal Mining and Metal Mining

X40

X50X52

X60

X51X55

X56

X53

X61&

X62

X63&

X64

X70 X71 X72

X73

X81 X80

X55

EH&SEH&S

RLM

X75 X76 X77 X78

Co

mp

lim

en

tary

Pa

rtn

er

Pro

du

cts

, li

nk

ed

via

SA

P N

etw

ea

ve

r P

latf

orm

an

d x

MII

Ce

ntr

al U

ser

Inte

rfa

ce &

Re

po

rtin

g

via

SA

P N

etw

ea

ver

Po

rta

l & B

I

X61 X63

X62 X64





Mining V1.600 Best Practice Landscape & Components Overview

SAP NetWeaver

7.00 (2004S)


mySAP ERP 2005

(SAP ECC 6.00)

Best Practice Baseline AU

V1.600

SAP NetWeaver

7.00 (2004S)

Mining Best Practice AU

V1.600

mySAP SCM 5.0

(incl. BW)

Best Practice - Cross Industry

Package

CIF

20 Mining specific Scenarios delivered as content on top of mySAP ERP &

Baseline AU

2 Mining specific Scenarios delivered as content on top of mySAP SCM / BW

& Cross Industry Packages


Best Practice Baseline AU V1.600

Business Scenarios available within Baseline AU V1.600 package:

Accounting

Materials Management & Procurement

Services

Scenarios typically replaced by Mining specific scenarios:

Sales

Manufacturing

http://help.sap.com/bp_blv1600/BL_AU/index.htm

Best Practice Baseline AU

V1.600


Best Practice Baseline AU V1.600 Best Practice Baseline AU

V1.600


Configure your solution based on SAP Best Practices for Mining

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

In a 2nd project phase leverage into ‚Extended Version‘ Contract to Cash Bulk Transportation QM EH&S

In a 3rd project phase leverage into ‚Full Version‘ RLM Supply Chain Planning in APO Maintenance Cost Budgeting


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!

Project Preparation:

Project team reviews and selects scenarios


Mapping Scenarios to Building Blocks

Scenario ID

Scenario Name Area Building Block (BB)

X40 Demand Supply PlanningSupply Chain Planning (APO)

X19 + Prereq.

Prereq

. dep

end

encies o

f BB

’s are detailed

in n

ext slide as w

ell as sho

wn

on

CD

and

Web

. In

stallation

is by scen

ario, an

d all req

uired

BB

’s are installed

auto

matically

X50 Coal Mining

Production X13 + Prereq.X51 Coal Blending

X52 Copper Mining

X53 Copper Concentrate & Cathode Production

X55 Cost PlanningCosting X10, X03 + Prereq.

X56 Cost Actuals

X60 Rail Bulk Transportation Internal Distribution X12, X14 + Prereq.

X61 Contract to Invoice Coal, Bulk Transportation FOBContract to Cash,

Bulk Transportation,

QM

X12, X14, X17 + Prereq.X62 Contract to Invoice Coal, Bulk Transportation DES incl. Freight

X63 Contract to Invoice Concentrate, Bulk Transportation, QM

X64 Contract to Invoice Cathode

X70 Corrective Maintenance

Enterprise Asset Management

X15 + Prereq.

MCB: X20 + Prereq.

X71 Preventive Maintenance

X72 Rotable Management

X73 Maintenance Cost Budgeting

X75 Supply to Remote Location

Remote Logistics Management

X16 + Prereq.X76 Returns from Remote Location

X77 Rentals Management Remote Locations

X78 Timed Delivery to Remote Location

X80 Occupational Health Environment, Health & Safety

X18 + Prereq.X81 Industrial Hygiene and Safety



Full Version:

Supply Chain Planning (APO),


BuildingBlock

BuildingBlock

BuildingBlock

Extended Version:

Sales & Distribution, Transportation, QM

EH&S

RLM

BuildingBlock

BuildingBlock

SAP Best Practices for Mining – Flexibility Through Building Blocks

BuildingBlock

Lean Version:

Financials, Controlling

Plant Maintenance,

Material Mgmt., Production

→ Indicates dependencies of building blocks

X14

TSW

X16

RLM

X12

SD

X20

BW

X15

PM

X10

FI / CO

X13

PP-PI

X17

QM


X11

MM

X03Master

Data

J02Baseline

Org.Structure

J05Baseline

MM.J..

Baseline…

X02Org.

Structure

X18

EH&S

X19

APO


Easy Installation of your Solution

Best Practice Installation Agent (BPIA) to support the installation of BP Mining.

All the technical objects need to be installed are packed into BPIA.

Guided Procedure to install the 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


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

Automatic BPIA 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 in „All in One“ by Partners



Q & A –> where to find information in the web

For detail information, please check http://help.sap.com/.For further News & Updates, also check SAP Note 1043300

1

2

3



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