SAP Product Lifecycle Management - SAP PRESS

103 Pages·2013·3.7 MB·English

by  Hanneke Raap

Bonn � Boston

Hanneke Raap

SAP
® Product Lifecycle Management

Contents at a Glance

1
Product Lifecycle Management .................................................
17

2
Product Management ...............................................................
49

3
Product Data Management ....................................................... 149

4
Product Variants, Classification, and Collaboration ................. 245

5
Maintenance and Customer Service ......................................... 317

6
Product Compliance .................................................................. 425

7
Project Management ................................................................. 503

8
Product Quality and Product Change Management ................. 601

9
Relevant SAP PLM Additions .................................................... 687

10
Product Insight and Analytics ................................................... 739

11
Conclusion ................................................................................. 793

A
Relevant Courses per Chapter ................................................... 809

B
Additional SAP PLM Resources ................................................. 813

C
The Author ................................................................................. 815

7

Contents

Acknowledgments ............................................................................................
15

1
Product Lifecycle Management .................................................
17

1.1
Goal and Purpose of the Book ........................................................
17
1.1.1
Target Audience .................................................................
18
1.1.2
Chapter Outline .................................................................
19
1.2
SAP ................................................................................................
22
1.3
The SAP Product Portfolio ..............................................................
25
1.3.1
SAP Business Suite and SAP ERP ........................................
26
1.3.2
The Current SAP Solution Portfolio ....................................
30
1.3.3
The SAP Business Suite Release Strategy ............................
31
1.3.4
SAP Solution Manager .......................................................
32
1.4
Product Lifecycle Management .......................................................
33
1.4.1
What Is Product Lifecycle Management? ............................
34
1.4.2
Current Trends and Challenges ...........................................
38
1.4.3
Benefits of Using SAP PLM .................................................
42
1.4.4
Solution Map for SAP PLM ................................................
44
1.4.5
Solution Map for SAP ERP .................................................
46
1.5
Summary ........................................................................................
47

2
Product Management ................................................................
49

2.1
Product Strategy and Planning ........................................................
51
2.1.1
SAP Strategy Management .................................................
51
2.1.2
SAP Governance, Risk, and Compliance .............................
66
2.1.3
Central Master Data GRC ...................................................
71
2.1.4
Product Compliance and Policy Management ....................
78
2.1.5
Product Risk Management with SAP GRC ..........................
81
2.1.6
Product Intellectual Property Management
with SAP GRC ....................................................................
91
2.1.7
SAP Strategy Management and SAP GRC Architecture ....... 105
2.2
Planning and Management ............................................................. 106
2.2.1
PPM Data Model ............................................................... 108
2.2.2
Processes in Portfolio Management .................................... 116

Contents

8

2.3
Functional Execution ...................................................................... 127
2.3.1
Idea Management .............................................................. 128
2.3.2
Code Name “Edison” ......................................................... 128
2.3.3
SAP Product Definition ...................................................... 132
2.3.4
Concept Development ....................................................... 137
2.3.5
Requirements Management ............................................... 139
2.3.6
Market Launch Management ............................................. 143
2.4
Summary ........................................................................................ 146

3
Product Data Management ....................................................... 149

3.1
Product Master Data and Structure Management ........................... 150
3.1.1
Product Structure Management ......................................... 150
3.1.2
Integrated Product and Process Engineering (iPPE) ............ 173
3.1.3
Routing Management and Process Development ............... 191
3.2
Document Management ................................................................. 194
3.2.1
Benefits of Using SAP DMS ................................................ 195
3.2.2
SAP DMS Features and Functions ...................................... 196
3.2.3
Finding a Document .......................................................... 208
3.2.4
Access to Document Data .................................................. 209
3.2.5
Integration of External Systems to SAP PLM ....................... 213
3.3
Product Costing .............................................................................. 217
3.3.1
Business Benefits ................................................................ 217
3.3.2
Product Costing Tools ........................................................ 218
3.3.3
Product Cost Planning Features .......................................... 221
3.4
Specification Management and Recipe Management ...................... 224
3.4.1
Specification Management ................................................. 225
3.4.2
Substance Management ..................................................... 227
3.4.3
Phrase Management .......................................................... 231
3.4.4
Recipe Management .......................................................... 232
3.4.5
Trial Management .............................................................. 240
3.4.6
Reporting in Recipe Management ...................................... 242
3.5
Summary ........................................................................................ 243

4
Product Variants, Classification, and Collaboration .................. 245

4.1
Classification .................................................................................. 246
4.1.1
Purpose of Classification .................................................... 247
4.1.2
Benefits of Classification ..................................................... 248

Contents

9

4.1.3
Classification Functions and Features ................................. 248
4.2
Variant Configuration ..................................................................... 258
4.2.1
Why Use Variant Configuration? ........................................ 259
4.2.2
Product Variants ................................................................ 261
4.3
Object Dependencies ..................................................................... 271
4.3.1
Syntax of Dependencies ..................................................... 273
4.3.2
Dependency Variant Tables ................................................ 276
4.3.3
Analyze and Trace .............................................................. 277
4.4
Business Scenarios for Product Variants .......................................... 283
4.4.1
One-Step Configuration (No BOM) .................................... 284
4.4.2
Single-Level BOM Explosion/Order BOM Configuration ..... 285
4.4.3
Multilevel BOM Explosion ................................................. 285
4.5
Variant Configuration Applied in Other Settings ............................. 287
4.6
Engineering and R&D Collaboration ................................................ 289
4.6.1
Product Development ........................................................ 292
4.6.2
Development Collaboration ............................................... 298
4.6.3
Engineering Collaboration .................................................. 299
4.7
Manufacturing Collaboration .......................................................... 311
4.7.1
Prototyping and Ramp-Up ................................................. 311
4.7.2
Integrated Product and Process Engineering (iPPE) ............ 314
4.7.3
Interfacing ......................................................................... 314
4.8
Summary ........................................................................................ 314

5
Maintenance and Customer Service .......................................... 317

5.1
Asset Operations and Maintenance ................................................ 317
5.1.1
SAP Enterprise Asset Management ..................................... 318
5.1.2
Maintenance Activities and Strategies ................................ 319
5.1.3
Benefits of SAP Maintenance and SAP Customer Service .... 322
5.2
Service and Maintenance Structure Management ........................... 322
5.2.1
Technical Objects ............................................................... 322
5.2.2
Common Functions for Technical Objects .......................... 333
5.2.3
Enhancing Technical Objects .............................................. 349
5.3
Main Transactional Objects ............................................................ 350
5.3.1
Object Information ............................................................ 350
5.3.2
Maintenance Notification .................................................. 351
5.3.3
Maintenance or Customer Service Work Order .................. 354
5.3.4
Customer Repair Order ...................................................... 360
5.3.5
Measurement Documents .................................................. 361

Contents

10

5.3.6
Maintenance Plan .............................................................. 364
5.3.7
Maintenance Strategy ........................................................ 366
5.3.8
Maintenance Task List ........................................................ 367
5.3.9
Service Contracts ............................................................... 367
5.3.10 Visualization and Publication ............................................. 368
5.3.11 Logbook or Shift Reports ................................................... 369
5.4
Configuration Management ............................................................ 373
5.4.1
Categorize and Classify Technical Objects ........................... 374
5.4.2
Use Bill of Materials ........................................................... 376
5.4.3
Verify Configuration ........................................................... 376
5.4.4
Spare Parts Management and Maintenance Catalogs .......... 377
5.5
Main Maintenance and Customer Service Processes ....................... 379
5.5.1
Organizational Data Setup ................................................. 380
5.5.2
Technical Objects ............................................................... 381
5.5.3
Handover and Takeover ..................................................... 382
5.5.4
Maintenance Cost Budgeting ............................................. 385
5.5.5
Breakdown Maintenance ................................................... 393
5.5.6
Emergency Maintenance .................................................... 398
5.5.7
Corrective Maintenance ..................................................... 399
5.5.8
Inspection .......................................................................... 400
5.5.9
Preventive Maintenance .................................................... 401
5.5.10 Project-Oriented Maintenance ........................................... 404
5.5.11 Returns and Repairs ........................................................... 407
5.5.12 Reporting and Analysis ....................................................... 409
5.6
Supplementary Maintenance and Customer Service Processes ........ 410
5.6.1
Capacity Requirements Planning ........................................ 411
5.6.2
Refurbishment of Spare Parts ............................................. 412
5.6.3
Pool Asset Management .................................................... 415
5.6.4
Work Clearance Management ............................................ 417
5.6.5
Warranty Claim Processing ................................................. 419
5.6.6
Lean Scenario .................................................................... 420
5.6.7
Mobile Scenarios ............................................................... 423
5.7
Summary ........................................................................................ 423

6
Product Compliance ................................................................... 425

6.1
SAP Environment, Health, and Safety Management ........................ 439
6.1.1
Basic Master Data in SAP EHS Management ....................... 441
6.1.2
Global Label Management ................................................. 443

Contents

11

6.1.3
SAP Product Safety Component ......................................... 446
6.1.4
Dangerous Goods Management ......................................... 451
6.1.5
Hazardous Substance Management .................................... 459
6.1.6
SAP Waste and Recycling ................................................... 462
6.1.7
SAP Recycling Administration ............................................ 469
6.2
Operational Risk Management ........................................................ 472
6.2.1
Incident Management ........................................................ 474
6.2.2
SAP EHS Risk Assessment ................................................... 477
6.2.3
SAP EHS Program Management ......................................... 482
6.2.4
Management of Change ..................................................... 482
6.2.5
Maintenance Workers Safety .............................................. 484
6.3
SAP Audit Management ................................................................. 488
6.3.1
SAP Audit Management Master Data Objects .................... 491
6.3.2
The Audit Process .............................................................. 496
6.4
Summary ........................................................................................ 502

7
Project Management .................................................................. 503

7.1
SAP Project Management Solutions ................................................ 505
7.1.1
SAP Project System ............................................................ 505
7.1.2
SAP Project and Portfolio Management ............................. 506
7.1.3
SAP Investment Management ............................................ 507
7.1.4
Determining Which Project Management Solution
to Use When ...................................................................... 509
7.2
Project and Resource Management with SAP ERP ........................... 511
7.2.1
Project Initiation ................................................................ 513
7.2.2
Project Planning: Initial and Detailed Planning ................... 517
7.2.3
Project Approval and Budgeting ......................................... 531
7.2.4
Execution and Monitoring .................................................. 533
7.2.5
Closing ............................................................................... 541
7.3
SAP Investment Management within SAP ERP ................................ 543
7.3.1
SAP Investment Management Data Model ......................... 544
7.3.2
SAP Investment Management Business Scenario ................ 546
7.3.3
When to Use SAP Investment Management or
PPM–Portfolio Management .............................................. 549
7.4
Project Management in PPM .......................................................... 551
7.4.1
Data Model for Projects ..................................................... 553
7.4.2
Create Project .................................................................... 555
7.4.3
Plan Project ....................................................................... 559

Contents

12

7.4.4
Manage Resources ............................................................. 570
7.4.5
Manage Visibility ............................................................... 578
7.4.6
Execute and Track .............................................................. 582
7.4.7
Close Project ...................................................................... 583
7.5
Project Collaboration ...................................................................... 584
7.5.1
Collaboration Folders ......................................................... 585
7.5.2
Collaboration in Projects .................................................... 591
7.6
Other Project Management Applications ........................................ 592
7.6.1
PPM as a Central Tool ........................................................ 594
7.6.2
Open PS ............................................................................ 595
7.6.3
SAP Enterprise Project Connection ..................................... 596
7.7
Summary ........................................................................................ 600

8
Product Quality and Product Change Management ................. 601

8.1
Product Quality Management ......................................................... 603
8.1.1
Product Quality Master Data .............................................. 611
8.1.2
Quality Engineering ........................................................... 630
8.1.3
Quality Assurance and Control ........................................... 659
8.1.4
Quality Improvement ......................................................... 666
8.2
Product Change Management ........................................................ 673
8.2.1
Master Data Objects Used for ECM .................................... 675
8.2.2
Business Scenario for Change and Configuration
Management ..................................................................... 680
8.3
Summary ........................................................................................ 684

9
Relevant SAP PLM Additions ..................................................... 687

9.1
SAP Fleet Management .................................................................. 687
9.1.1
Administration ................................................................... 690
9.1.2
Maintenance ...................................................................... 703
9.1.3
Operations ......................................................................... 705
9.2
SAP Mobile Platform ...................................................................... 715
9.2.1
SAP Mobile Product Portfolio ............................................ 717
9.2.2
SAP PLM Mobile Applications ........................................... 723
9.2.3
B2E Apps for SAP by Syclo ................................................. 726
9.2.4
B2E Apps by SAP ............................................................... 734
9.2.5
Analytics Apps ................................................................... 736
9.3
Summary ........................................................................................ 737

Contents

13

10 Product Insight and Analytics .................................................... 739

10.1
Product Intelligence Business Processes .......................................... 740
10.1.1 SAP 3D Visual Enterprise ................................................... 741
10.1.2 Reporting, Querying, and Analyzing ................................... 744
10.1.3 Enabling Enterprise and Business Object Search ................. 747
10.2
Standard Reporting in SAP ERP ...................................................... 748
10.2.1 Standard Reports and Lists ................................................. 749
10.2.2 Reporting in SAP EHS with WII Integration ........................ 751
10.2.3 Reporting in Logistics Information System .......................... 753
10.2.4 Business Context Viewer (BCV) .......................................... 757
10.3
Reporting with Comprehensive SAP Products ................................. 765
10.3.1 SAP NetWeaver BW ........................................................... 766
10.3.2 SAP BusinessObjects .......................................................... 782
10.3.3 Future Outlook .................................................................. 791
10.4
Summary ........................................................................................ 791

11 Conclusion .................................................................................. 793

Appendices ....................................................................................... 807

A
Relevant Courses per Chapter ................................................................... 809
B
Additional SAP PLM Resources ................................................................. 813
C
The Author ............................................................................................... 815

Index ................................................................................................................ 817

425

Ensure your products comply with the latest regulations and conform to
industry best practices through a holistic solution that covers the entire
lifecycle of a product, gives insights about its contents, and includes label-
ing and datasheets for the product itself.

6
Product Compliance

In Chapter 2, we began to discuss product compliance and how SAP Governance,
Risk, and Compliance (SAP GRC) can help you ensure product compliance. But
product compliance is more than just making sure that you record your products
and legislation information; as you can see in Figure 6.1, a growing number of
laws and regulations require that you keep a record of which specific materials or
ingredients were used in self-produced or purchased end products. All of the pro-
cesses needed to support those product compliance activities are supported by
SAP Product Compliance and SAP Environment, Health, and Safety Management
(SAP EHS Management) offerings.

Figure 6.1 Regulations

Canada

� CEPA
� Clean Air Act
� Canada Water Act
� Toxic Substances
Management

Global

� IATA-DGR
� IMDG
� GHS
� Kyoto Protocal (LA)

China

� Prevention and
control of water and
air pollution
� Hazardous chemical
management
� China RoHS

Japan

� Basic Environmental
Law
� Green Purchasing

Australia

� Ozone & Synthetic
Greenhouse Gases
Commonwealth
Legislation
� Hazardous Waste
Act
� Air Toxics NEPM
� Air NEPM

Europe

� IPPC
� UNFCCC
� REACH
� RoHS/WEEE
� EPER/E-PRTR
� Dangerous Substances
67/548/EEC
� Energy Use in Products
� EMAS
� ADR, RID
� COSHH
� Directive 89/655/EEC

Latin America

� Country-specific
normative base on
international normative,
i.e., NOM SEMARNAT
(Mexico)
� OSHAS 18000

US

� Clean Air Act
� Clean Water Act
� CERCLA
� FFDCA
� RCRA
� SARA
� EPCRA
� OSHA
� TSCA
� CFR

Product Compliance

426

6

External pressure to ensure product safety and compliance is on the rise, and
manufacturing companies are increasingly being held accountable for the envi-
ronmental and safety performanceof their products. As a result, product compli-
ance is becoming a core business activity. The introduction of new and more
complex product laws such as Registration, Evaluation, and Authorization of
Chemicals (REACH) and Restriction of Hazardous Substances (RoHS, or Directive
2002/95/EC) has led to more detailed product information, often reflected on
product labels. REACH is a new EU regulatory framework for chemicals; RoHS
originated in the European Union and restricts the use of specific hazardous
materials found in electrical and electronic products. All applicable products in
the EU market after July 1, 2006, must pass RoHS compliance.

Consumers are spreading social pressure fostered by other organizations, includ-
ing Greenpeace and the World Wildlife Foundation (WWF), to produce and con-
sume products in a sustainable and green way, effectively keeping the impact on
the environment to a minimum.

On the whole, product compliance focuses on managing the full scope of global
regulatory requirements, integrated with all business processes associated with
internal, customer, and supplier compliance management and reporting. SAP
GRC has already been covered in Chapter 2, so this chapter will focus on SAP EHS
Management, the use of SAP Audit Management to perform product-related
audits, and the Operational Risk Management process, focusing on compliance
regarding workers safety by a proactive risk-based approach. We’ll start by
explaining how product compliance and REACH are supported and then describe
parts of product safety and stewardship used for product compliance.

Product compliance touches all the business processes in which internal stake-
holders, customers, and suppliers perform activities related to products. Product
compliance processes seek to improve regulatory compliance by achieving the
following:

� Secured and compliant operations

� Improved auditability of information and actions

� Reduced risk of fines and penalties

� Reduced risk by permanent compliance tracking with internal and external
regulations

Product Compliance

427

6

Similarly, they seek to increase transparency and accountability, with the follow-
ing results in mind:

� Improved transparency and reliable auditability of activities

� Establishment of one source of the truth

� Improvement of regulatory compliance

� Standardization of processes and tools, which improves SAP EHS Management
performance and reduces costs

� Reduced operating cost and increasing efficiency by reducing inventory levels

� Improved brand value and corporate reputation by sustainable operations

Let’s walk through the solutions that SAP Product Compliance offers.

The solution overview of SAP Product Compliance consists of the four end-to-end
sustainability processes shown in Figure 6.2. These processes provide a complete
set of solutions to manage sustainability programs across your organization:

� Operational Risk Management
This includes the key processes that create a comprehensive solution for man-
agement of operational risks. Based on a continuous improvement model, risk
assessment can be performed proactively and incidents recorded to learn from
them.

� Embedded product compliance
This end-to-end process focuses on all aspects of product safety from “cradle to
grave” (described in detail in Section 6.3).

� SAP Energy and Environmental Resource Management
This focuses on reducing energy use as well as maintaining compliance with
environmental requirements. (This topic falls outside the scope of this book.)

� Sustainability reporting and analytics
This provides a comprehensive view of all sustainability reporting and helps to
drive strategic initiatives. (This topic falls outside the scope of this book.)

Operational Risk Management is both relevant from a product perspective and
for managing a safe work environment for maintenance and service workers—
which is why we’ve included it here. The solution is an integrated closed-loop

Product Compliance

428

6

process, which mainly uses SAP EHS Management functionality, but the out-
comes of risk assessments and safety measures can be used as input for mainte-
nance or service activities.

Although it once stood on its own, SAP REACH Compliance has been folded into
SAP EHS Management. Within SAP PLM, SAP EHS Management forms part of
SAP’s sustainability offering, as shown in the solution map in Figure 6.2. SAP EHS
Management forms one generic platform to support all environment, health, and
safety processes and contemporary challenges.

Embedded into SAP ERP, SAP Product Compliance consists of the end-to-end pro-
cesses and the functions shown in Figure 6.3. Embedded product compliance
provides you with the ability to do the following:

� Manage your product’s environment, health, and safety master data effectively
and efficiently.

� Communicate critical SAP EHS Management data within the supply chain.

� Provide evaluation tools to check product compliance within the product
development process.

� Integrate product compliance and safety controls within existing processes to
mitigate business risk.

Figure 6.2 Overview of SAP Solutions for Sustainability

Sustainability

Energy Analysis and
Monitoring

Environmental
Compliance

Product Compliance

REACH Compliance

Substance Volume Tracking

Hazardous Substance Mgmt

Global Label Mgmt

Product Safety Comm.

Dangerous Goods Mgmt

Recycling Administration

Finance and Risk Mgmt —
Monitor Performance

Operations-Driving
Strategic Initiatives

Incident Management

EHS Risk Assessment

EHS Program Management

Management of Change

Maintenance Worker
Safety Management

Energy and Environment
Management

Embedded Product
Compliance
Sustainability Reporting
and Analytics
Operational Risk
Management

Audit Management

Product Compliance

429

6

� Embed product compliance within procurement, SAP Quality Management
(QM), order management, SAP Extended Warehouse Management (SAP
EWM), and SAP Transportation Management (TM).

� Provide reporting capabilities to support compliance, safety, and end-of-life
information to customers, authorities, or other stakeholders.

In this chapter, we’ll dedicate subsections to the embedded product compliance
functions. Section 6.1 will cover product compliance and REACH compliance,
and Section 6.2 will cover all the other functions, which are all part of SAP EHS
Management. The chapter will finish with coverage of SAP Audit Management, a
new component introduced in SAP ERP to plan and execute audits.

So why does it make sense for SAP Product Compliance to be an embedded solu-
tion? Because the product information is used through the entire logistic value
chain, the compliant data that is used throughout your organization needs to be
reflected in all the processes and process steps where it’s used. Figure 6.4 shows
the most important touch points of this data regarding other components within
SAP ERP, such as the following:

� SAP Logistics General (LO), such as material master data maintenance and busi-
ness partner details

� SAP Materials Management (SAP MM) for procurement and SAP Inventory
Management (SAP MM–IM) activities

� SAP Sales and Distribution (SD) for selling of your products to customers

Figure 6.3 End-to-End Process Product Compliance per Product Stage

Communicate
safety and
stewardship
information

Reporting,
certification,
and auditing

Service
order
check

Sales
order and
distribution
check

Packaging
and transport
check

Supply
chain
collaboration

Manufacture
release
check
Develop for
compliance/
sustainability

Materials and
compensation
management

Risk and compliance
assessment,
document, and register

EHS regulation
knowledge
management

Developing safe and
sustainable products

Quality
movement
tracking

Hazmat safety
management
and labeling

Incoming
inspection
check

Supplier
qualification
and PO check

Development

Supply Chain
Management

Manufacturing
and Operations

Quality/EHS/
Compliance/
Stewards

Ensuring supply chain
compliance, safety, and continuity
Meeting customer
demands and obligations
Reporting product
compliance and stewardship

Product Compliance

430

6

� SAP Logistics Execution (LE) for SAP EWM

� SAP Plant Maintenance (SAP PM) for maintenance master data and processes
data such as safety measures, corrective actions, and standard operating proce-
dures

� SAP EHS Operational Risk Management to perform product-related risk assess-
ments and implement measures and controls to mitigate these risks; it includes
providing safety measures to maintenance planners and engineers performing
work on these products, which will be discussed from a product and asset per-
spective in Section 6.3

� SAP ERP Human Capital Management (SAP ERP HCM) for organization struc-
ture management to hold employees, organizational structures and exposure
groups, and training and certification data

Manufacturers from all different types of industries need to prove the safety of
their substances, products, and respective uses according to relevant product leg-
islation, such as REACH, or to provide proof of compliance with environmental
directives, such as RoHS, Joint Industry Guide for the electrotechnical industry
(JIG), and Global Automotive Declarable Substance List (GADSL).

Figure 6.4 Integration

Material
Management
Inventory
Management
Plant
Maintenance
Human Capital
Management

LO
Logistics
General—
Material
Master

MM
Inventory
management—
Stocks

PM
PM notification,
safety measures,
corrective actions

HCM
Organizational
Management —
person,
organizational unit,
exposure group

MM
Materials
Management —
Purchasing

LE
Logistics
execution—
warehouse
management

PM
Standard
operating
procedures

HCM
Personal Protective
Equipment (PPE)
and training and
certifications

SD
Specification
management,
substance
volume
tracking, risk
assessment

EHS
HIS risk
assessment

BP
Business
partner