mySAP E&C Equipment and Tools

Management
- Overview -

Industry Unit E&C

SAP AG

mySAP E&C Equipment Management

Equipment Management is the mySAP solution for

planning, administration and settlement of
Equipment and Material.

SAP AG 2001, mySAP E&C Equipment Management, Carsten Dietze 2

mySAP E&C Contractors Solution Map 2001

SAP AG 2001, mySAP E&C Equipment Management, Carsten Dietze 3

Supported Business Processes by ETM

Renting pieces of equipment

Internal
External (Joint Venture)

Selling and buying of non consumption material

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Terminology
Time Based Equipment
Example
- Cranes

Billing according to usage on site

Individual Stock

Performance Based
Equipment
Example
- Excarvators

Billing according to counter readings

Individual Stock

Multi-Part Equipment
Example
- Formwork
- Scaffolding

Billing or Sale and buy back

No Individual Stock

Material (consumable and nonconsumable materials)

Example
- Nails, Bolts
- Drilling Maschines
- Screwdrivers

Sale and buy back

No Individual Stock

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ETM - Roles and Responsibilities

Equipment Lifecycle Management
Requirements
Determination

Equipment
Planning

Rental
Agreements

Equipment Owner

Equipment
Owner

Administrator

Deployment
Management

Settlement and
Billing

Equipment belongs
to the owner.

Administrator is
responsible for the
planning and usage of
equipment

Equipment
Administrator

Construction Site

Site Manager

Customer
Customer

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Orders equipment. Uses

equipment in case of
internal rental
Client of the company
that runs the construction
site. Uses equipment in
case of external rental

ETM Roles and Process Flow

Recepient

Parties involved

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

Equipment Manager
Leases Equipment from owner
Maintains the Equipment
Plans requirements, manages stocks
Rents equipment and charges recepient

Owner
Purchasing and Insurance
Equipment as Asset
Depreciation posting

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Equipment Rental: Process Flow

Creates Requisition note (optional)

Equipment

Recipient

Construction site

Confirmation of requirement (optional)

Administrator

Shipping- / PBE document

Handling of equipment and material

Periodical settlement
Periodical billing

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ETM Logistical Process

Business Process Logistical Part
Requisition Note specifies the required equipment
Hitlist of possible equipments based on requisition note
Availability of equipment? Confirmation or Rejection
Shiping Document

1.

2.

Requisition note

Availability?

Requirement from
Site Manager

Equipment
Manager

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3.

Shipping
document

Recipient, e.g.
Construction site

Requisition Note
Specifies type of the required equipment
Requisition Period

Site Manager
creates Requistion note

Requisition Note 18
Recipient:
Construction Site X
Requisition Period: 08/08/2001 - 12/10/2001
Notes:

Pos.
10
20
30

Please deliver in time!

Class/Equipment Values
Excarvator
Crane
Scaffolding

p>150 kW
h> 40 m

Quantity
2 pc
1 pc
300 m

Equipment Manager
Equipment planning
Assigns equipment to requirement

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Shipping document

Shipping Document Features

Transfer requisition note into Shipping document
Parking of Shipping document for later processing

Equipment Manager

Recipient (Site Manager)

Shipping document

Equipment Shipping Documents

One Shipping document for pieces of equipment and material
Equipments-In-Stock overview

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ETM Requirements Usage

Based on Shipping
Document

Operators Reports

Shipping
Document

Operators
Report

. . . Versus . . .

Shipping Document
Shipping of Equipment and
Material
Billing based on Time and type of
use on site

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Performance Based Equipment

Billing based on

Counter Readings
Operation Time

ETM Value Flow

Business Process Settlement (Example: Work Corporation)
Equipment Manager leases equipment from owner

Equipment Manager rents equipment to site manager

Equipment Manager sents invoice on behalf of the site manager to
debtor
Debtor pays invoice to the site manager

Owner

Lease

Deprec.

Profit

Equipment
Manager

700,-

Rent

2.000,-

-300,-

Lease

-700,-

400,-

Profit

1.300,-

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Site Manager

Rent ext.

3000,-

Rent intern

-2000,-

Profit

1000,-

Debtor

Invoice 3000,-

mySAP E&C Equipment Management

Scenarios

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(I) External Rental

Parties involved

Administrator
Handling of equipment and material

Recipient
Construction site A

Debtor
External Customer of Recipient

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(I) External Rental: Value Flow

Asset

Equipment

Revenue rental

Owner / Administrator

Internal Billing
Cost rental
Cost loading
Cost provision fee

Deprecation cost
Maintenance cost

External Billing
Revenue rental
Revenue loading
Revenue provision fee

Recipient

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Cost rental
Cost loading 15
Cost provision fee

Debtor

(I) External Rental: Complete Process

Process flow

Warehouse
Administrator

Equipment

Recipient

Debtor

Site location

of Recipient

Shipping document and/or PBE document

Periodical settlement with cost allocation

Sender

Asset

Recipient

Periodically deprecation 80

Cost center

PM Order

WBS Element

Debtor

Cost deprecation 80
Revenue rental 100

Cost rental 100

Revenue rental 120

Cost rental 120

Revenue loading 10

Cost loading 10
Revenue loading 15

Cost loading 15

Revenue provision fee 20

Cost provision fee 20

Revenue provision fee 25

Cost provision fee 25

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(II) Internal Rental

Parties involved

Administrator
Handling of equipment and material

Recipient
Construction site A

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(II) Internal Rental: Value Flow

Deprecation cost
Maintenance cost

Asset

Owner / Administrator

Equipment

Internal Billing
Cost rental
Cost loading
Cost provision fee

Recipient

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Revenue rental
Revenue loading
Revenue provision fee

Revenue rental

Internal Rental: Complete Process

Process flow

Warehouse
Administrator

Equipment

Recipient
Site location

Shipping document and/or PBE document

Periodical settlement with cost allocation

Sender

Asset

Recipient

Periodically deprecation 80

Cost center

PM Order

WBS Element

Cost deprecation 80
Revenue rental 100

Cost rental 100

Revenue rental 120

Revenue loading 10

Cost loading 10
Revenue loading 15

Revenue provision fee 20

Cost provision fee 20

Revenue provision fee 25

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(III) Sales and repurchase of non consumable material

Shipment of material

Material

Material

Warehouse

Recipient B

Recipient A
Shipping document

Site location

Shipping document

Site location

Periodical settlement with cost allocation

WBS element

Cost center

WBS element

Material sales
Revenue 100

Cost 100

Material repurchase
Revenue 80

Cost 80

Material sales
Revenue 100

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Cost 100

(IV) Consumable material

Shipment of material

Warehouse

Shipping document

Recipient A
Site location

Cost allocation (automatical goods movement with shipping)

Warehouse inventory

WBS element
Cost

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Summary
mySAP E&C provides a solution for
equipment management, covering

Internal Rental
Joint Ventures

Materials and Tools

Major Benefits

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Providing detailed information to your

equipment

Visibility of costs, revenues, down times,...

Better availability, improved utilization and
reduced maintainance cost