Mining production - BOM

[former_member208199]

Hi Experts,

We are looking for guidelines/ suggestions on fixing the BOM and configure the Process and the activity Cost as part of the Routing ,

Coal area is taken under lease and started Mining the Coal. Planning and Monitoring of Coal Output is done by our client.

Whole Coal extraction process handed over to Contractors. Contractors will take care of Fuel used for Trucks and its Maintenance.

Payment will be made to Contractors monthly twice.

We have following doubts:

     1. Whether the Coal Block which is being used for extraction of ROM Coal(Output) will be treated as Raw material or Asset.?

     2. If the Coal Block is Treated as Asset, what could be other materials will comes as BOM component.

     3. Capturing the Payment made for contractors in Master recipe (Rouitng) level using activities comes through Standard value parameters included in standed Value Key in Resource (Work center) is correct way to handle?

    4  Do we have any other procedure to Handle the Coal Mining BOM and Master Recipe.

Thank you for the patience and helping us.

[sandeep_praharaj · Accepted solution]

Hi,

In Coal mining generally Sap process manufacturing happens

Material Type -ROH ,HALB ,FERT -It's bit trickey if its mining industry like Coal Mines

SAP PPPI BOM : Establishing Standard  BOM .

In SAP PPPI Work center-Production Line .

In SAP PPPI  Recipe  : Recipes have Phases in place of operation which holds the work centers in a sequence of production. Nevertheless operations are there which have significance other than acting as header to the Phases. All the scheduling happens at the phase level. Combination of Recipe and BOM together might have also been set up together because SAP PPPI has an inbuilt concept called Material Quantity Calculations, through which you can change the quantity of component required through changes in characteristics values of the header product & other production parameters

Production Versions in  SAP PPPI is the same

Demand Management : Sales and Operation Planning , MRP , MPS, Planning Strategy -MTS-10

Process Order Management -Process Order execution  , Product Cost Collector concept  , Settlement.

You can refer following Document.

1. Whether the Coal Block which is being used for extraction of ROM Coal(Output) will be treated as Raw material or Asset.? you can consider as Raw material.

     2. If the Coal Block is Treated as Asset, what could be other materials will comes as BOM component.

Diesel consumption you can put it in BOM.

     3. Capturing the Payment made for contractors in Master recipe (Rouitng) level using activities comes through Standard value parameters included in standard Value Key in Resource (Work center) is correct way to handle?

Yes it is the correct way.

    4  Do we have any other procedure to Handle the Coal Mining BOM and Master Recipe.

Process i have explained in my above reply.

Thanks & Regards

Sandeep Kumar Praharaj

[former_member208199 · Accepted solution]

Hi Sandeep,

Thanks for your swift response and helping us by providing detail guide lines.

One point here is Diesel procurement, its consumption and cost is owned by contractors, we dont see any other significant materials that comes as BOM component other than Coal Block.

As Business says, they are also handling some activities along with the Contractor activities during Coal extraction. We are planning to map this as Internal activities in the Operations of Master Recipe using PI01 control key, And the Contractor activities, will be added as one another operation assigning Control key PI03.

Please suggest how it works & let us know if there are any other challenges which requires additional attention and the solution's.

Thanks again for your time & helping us.

[former_member208199 · Accepted solution]

Hi Experts,

I am trying to use SM03 Control key in Phases to incorporate activities done by Contractor.

In our business case few of the Activities in operations done by Our Client and majority of the activities done by their Contractor at our client location.

We have assigned PI01 Control key for the first operation followed by first phase to incorporate in house operations, Purchase Info-record created, SM03 control key assign to Second Phase in Master Recipe. But system is not generating Purchase requisition after the Process order is created/ released.

Need to understand more on below points.

1. Is the Control key SM03 correct to use.or any other control key suitable for this purpose.

2. Can we able to accommodate Services done by contractor using this control key.

3. Is the flow: PR generation from Process Order Phases, converting to Purchase Order, then Creating Service entry sheet (Service GR), and Invoice creation and Payment made to Contractor.

Please guide us on the above topic and suggest us if we need to something else than above.

[sandeep_praharaj · Accepted solution]

Hi,

I have never used control key SM01 . Have you tried Control key PP02 for external processing .

here PR will be generated when production order  will be released than convert PR to PO after processing do the GR.

i will test once with control key SM01 let you know the result.

Thanks & Regards

Sandeep Kumar Praharaj