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Prodcution in power generation Plant???

Former Member
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Hi gurus,

Kindly show some light on how to implement PP module in power generation plant.

we are into cement industry where we have our own plant for power generation which supplies electricity to the main cement industry. Now, we need to assign power generation as another plant and now i need to know how we plan the power production.

What strategy to be used for power industry and how are the requirements to be created.

Is there a scope for MRP planning and whether to create a planned or production order ?

based on which basis the production will be stARted.

Thanks in advance.

Naveen.

Accepted Solutions (1)

Accepted Solutions (1)

madlercm
Active Contributor
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Hi,

MRP is planning stock items. I fail to see how power can be looked upon as a stock item.

The way in which I see your scenario, is that your main business is to produce cement. You also have a power generation plant to support cement production activities. The power plant doesn't need to be managed from a logistics point of view in your business system, but only cost and accounting side (maybe maintenance too).

Former Member
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Hi,

Thanks for your reply.

Please can anyone be more specific.

How to map power generation scenario to SAP and how to plan and produce /MRP if any????

Thank you.

Naveen.

Former Member
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Hi,

As mentioned by Mario, you don't need to plan the power generation plant from logistics point of view.

Check with business what is the criteria to start & stop power generation. Generally it is based on the requirement for cement manufacturing. If this is the case then the plan depends on the plan for cement manufacturing.

Still for capturing cost & plan the amout of power required you can use power as a secondary resource in the Master Recipe OR Routing. This will create requirements with the planned orders for cement manufacturing.

Former Member
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It is not very helpful to plan your power generating by MRP. I have one client insisted of doing so, but not very successful, to say the least.

Try to think about the scenario:

1. You use fuel to generate the steam then the steam goes to turbine to generate power. How you can create the BOM for the steam since the quantity can vary very wide due to the fuel characteristics (esp., if you use coal, or natural gas) and combination of fuel itself (some generating plant can use fuel oil, diesel oil, etc.) Therefore, in terms of raw material requirement, the BOM itself already reckon the fuel consumption mix that are optimized for the operation. Normally, it will be planned outside. That's when you know the fuel requirement. No MRP is really needed here.

2. Since you can't keep stock of electricity, and steam (which is the output of the turbine as well), there is nothing you can do when considering electricity requirement from your cement factory . You can only generate as full capacity as possible. It will be costly to operate then stop and then operate. Therefore, your electricity requirement for MRP means almost nothing. It cannot help you plan production either.

For that particular client, in the end, we still use PP but to capture the costs only. MRP itself doesn't make much sense.

In the same old client I mentioned, we create BOM monthly based on plan procurement of fuel with co-product (electricity, and steam). Create process order monthly. Confirm actual consumption daily.

Hope it helps.

Former Member
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Hello,

Thanks for your reply.

Correct me if i am wrong in the understanding??

In my power generation plant , will create BOM and routing for Finished product Power in watts.

Now, is that i need to create an order manually for month say 3000 kw and try to confirm this order daily based on the actual consumption.

Please reply.

Naveen.

Former Member
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Yes. If you insists. However, the base unit of electricity is KWH (Kilowatt / hour). The steam is normally in metric tonne. These two materials are co-product.

Rgrds,

Former Member
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hi,

In my scenario, i was asked to create another plant for power generation and what ever the power is produced will be consumed by the other cement plant .

Now, how can i map this as power generated in one plant and consumption in another.

Please help/.

Thanks in advance.

Naveen.

Former Member
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Alternatively, maybe considering using activity type allocation in CO side. It makes life easier since you don't have to create a lot of master data (No BOM, no Routing, no Material master).

Basically, you use cost object in CO to capture the power plant costs (maybe internal orders or cost center). You post goods issue of fuel oil, coal, or whatever fuel you use to the cost object (debit side). You plan activity rate. Then you allocate the activity type from cost object to cement plant (to represent consumption at cement plant).

This way you don't have to worry about gain/loss (some meter is not accurate enough so GR qty may differ with GI qty, but there is no stock for this so you have to adjust). It is easier to do and you can also use CO function to re valuate the actual price of activity (you cannot do so with material with standard costs).

But if you really want to use PP, then create electricity as material. Create production order with planning BOM monthly. Goods issue fuel to order. Goods receipt electricity. Goods issue electricity to cement production (or transfer plant to plant first then goods issue).

Hope it helps.

Former Member
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Hi Naveen,

Power/Utilities in SAP is taken care by IS-Utilties. Normally power plant scnerio will not get mapped. As Power i mean output will not be stocked and normally it is connected to state Grid/ central electicity Grid and controlled by load dispatch center (LDC).

Where as cement industry is having Make to stock strategy. it is quite different from power plant.

I can say - MM in Power plant is ok I mean OIl, water & coal can be handled in pipe-line procurement if the supplier is nearby. this is the case in singernari collaries and NTPC coal plant in AP. otherwise coal can be stocked using sap WM (using open bin strategy) and oil in hazardeous material management..

Also plant maintenance is also possible to map in Power plants..once PM notification created by maintenance department..i mean mechanical, electricla and Control and instrumentation mtce department..next is PM order and then it will go for relese and approval teco closure. or if no material is avaialble then it will got for PR- PO- GR- placed in stock or direct issue to PM order/work order- release- teco- closure...etc.

SAP SD also difficult to map because power once generated connected to Grid and cannot be stocked and so availability check and other normal Logistics functions not possible. but billing/invoice/credit functionality possible.. there is no returns management as in case of power..

we can distinguish the coal based on the supplier (foriegn or domestic) using split valauation. i heard in some states even power also based on generation method - good and pure and i mean based on energy factor it can be distinguished..

SAP QM is possible for coal estimation(moisture content, sulphur content etc..& also emission contril CO, CO2, NO etc.. used in pollution control and for boiler water treatment, Dosing etc..also to check Light diesel oil, HFO mixture calaculation and many more applications.

we can say MM application is more - inorder to procure material needed for maintenance of Mill /boiler/pumps/valves etc.. in power plant. normally in power many more rotating equipment availability and due to that preventive maintenance and also break down mtce is critical to avoid dangerous situations..tube/valve/pipe leak..

I can SAP MM & PM & QM - playing major role in consideration of SAP in power plant than SAP PP..

Hope this is very short example,,,if nwe need discuss in details it is time consumable..Also PM is used in Equipment caliberation of sensors/transmitters. i can SAP IS- Device management will have more influence in power plant becxause in power plant more number of temperature/pressure/flow.level sensors /transmitters.gauges will be available and it requires frequent caliberation and mtce because it is installed in steam/Hot water lines/Oil lines etc..

SAP WM is somewhat useful for efficient material handling in power plant but that is not necessary.. we cna maintian he stock @ storage location level i mean IM level and it is also efficient..

Hope this helps..

Regards,

G.V.Shivakkumar (Shivakkumar geetha venkatesan)

Answers (1)

Answers (1)

Former Member
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You can't stock electrical power.

At a very large chemical company, we implemented the power and utilities using CO functionality only. Costs flowed through different CO orders and settled onto the power consuming operations cost centers.