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R
In Focus
SAP Engineering & Construction
Managing the Entire Product Life Cycle
Industry Sectors
The following types of companies belong to the
Engineering & Construction area:
s Engineering contractor
q Provider of project engineering and prime
contractors for development and erection
of highly complex plants. It includes
establishments primarily engaged in
providing engineering, architectural and
surveying services.
s Heavy machinery and Equipment with highly
complex and individual products.
q It includes establishments engaged in
manufacturing industrial and commercial
machinery and equipment, such as
The engineering and constructionindustry comprises of companies
which produce and maintain
complex products and industrial
plants, based on customers
individual specifications and
definitions. The extent of each
order together with its comprehen-
sive requirements demand a high
degree of product variability,
general flexibility as well as
technical and management know-
how. The entire business process
from specification and design
to construction and approval is
centered on the customer,who can be in either the
private or the public sector,
where the public sector
imposes further requirements
in respect to contract condi-
tions and regulations.
engines and turbines, oil field machinery,elevators and conveying equipment,
power plants, ship building and repair
and railroad equipment
s Research & Development
q Consultant engineers, institutes and
companies focusing on research &
development as one of their main busi-
ness areas. It includes establishments
primarily engaged in providing research,
development and testing services.s Construction and Heavy Construction
q Companies which are planning and
executing complex construction
(such as buildings, bridges and roads)
SAPEngineering &Construction
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The Process Matrix
The core scenarios in the companies are defined by
the product itself. The amount of standardization
and variability as well the degree of service provid-
ed by the contractor and whether this is done
on the contractors premises or on site are used todifferentiate. Depending on the type of product
several different scenarios can be used in one
company.
The most important scenarios are:
s Make-to-Order (M-T-O)
q A customer can order a product in
virtually any configuration, size, length,
width or other attributes as long as itis within the allowable range of the
product specifications. They can, at
times, closely resemble an assemble-
to-order product in many ways,
although in make-to-order production
further engineering can be required.
However, they are almost always more
complex. Product design and develop-ment are usually done seperately and
not part of this process.
s Engineer-to-Order (E-T-O)
q This type of business is also commonly
referred to as a job shop. Typically
the product is one-of-a-kind uniquelydesigned to meet a customer specific
need and is probably never manufac-
tured before. Heavy engineering, quota-
tion and estimating are very important
and integral part of the process. Since
each item is unique bills of material
and routings are manually created for
the entire product. Most ETO jobs arelong by nature. Project management
tools may be employed to track and
control the job.
s Research & Development (R & D)
q Research & development is clearly
defined by the task to design, test and
sometimes also produce a single item,
function or tool. It starts always with
an idea and a specification and is
finished with the first prototype or
functional documentation. The unique-
ness of the business and the high
demand on the technical know-how
require an intensive personal utiliza-
tion and skill.
s Construction
q Is the planning and creation of a non
moveable product (such as a building,bridge or road). Manufacturing is not
These processes are not only used in the engineer-
ing & construction area. Other industries have
similar business and may also use the described
processes for their product life cycle. However,
especially for engineer-to-order business the most
experience and practice is in this industry.
part of the process. It can be executed
by prime contructor or subcontractor.
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Contract Management
s full embedded Cost / Revenue / Cash Control
s multi level pegging
s transfer price concept
Configuration Managements Change Management
s full integrated PDM / Document Management
s contract specific structures
Supply Chain
s most efficient material flow from as engineeredto as shipped
s smooth support of growing structuress preliminary material / long lead time
s integrated subcontractor handling
Workforce Planning / Time Recording
s ease of use handling
s integrated to human resource system
s workflow supported
Information System
s Version Handling / Progress Monitoring
s individual Views
s drill down from management to document
s professional exception/query handling
Full embedded project management as
process integrator
Most efficient Decision Support System
Openness / Scalability
s BAPIs
s Intranet
s MS-Interfacess CAD-Interfaces / EDI
s customer specific enhancements
Engineering Industry Focus
Best Vendor for Future
The Commitment to the Industry
SAPs Engineering and Construction brand focuses
primarily on managing the entire product life cycle,
from its design, through planning and manufacture
up to final assembly at the customer site. But it
Techno logy and Serv i ce
R/3 system is based on client/server architecture.
R/3 is designed as an open system for use on
operating systems from a variety of vendors. Along
with the software, SAP offers you a complete
spectrum of services along the R/3 product life
cycle: preventive system checks, professional
consulting in organizational and technical issues
ranging from project planning to system implemen-
tation, qualified staff training, and 24-hour
support.
SAPs quality management system for software
development meets the international ISO 9001
standards.
Find out more. Call or write us.
doesnt stop there; it covers the post sales and
service phases as well. This allows the engineering
and construction industry to concentrate on busi-
ness and be more responsive to changes in product
structures, whether in the design phase or later on
in production. By supporting various product and
organizational structures such as multiple sites,
companies and countries, E&C businesses gain con-
trol over the entire life cycle and the supply chain
from suppliers and subcontractors to customers.
Ten Reasons for SAP Engineering and Construction
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SAP America Inc. Strategic Planning and Support 701 Lee Road Wayne, PA 19087 Phone (610) 725-4500 or 1-800-USA-1SAP Fax (610) 725-4555
SAP Canada Inc. 4120 Yonge Street North York, Ontario M2P 2B8 Phone (416) 229-0574 or (800) 263-1337 Fax (416) 229-0575
INTERNET: http://www.sap.com
HEAVY MASCHINERY & EQUIPMENTABB Atom, SwedenABB High Voltage, SwitzerlandABB Stal, SwedenDover Elevators, USAKone ElevatorsOntario Hydro, CanadaSchindler ElevatorsSiemens KWU, GermanySiemens Power Corporation, USATeijin Seiki Corporation, Japan
RESEARCH & DEVELOPMENTCOWI Consult, DenmarkIECSA, SpainRoche, SwitzerlandRoke Manor Research, UKRISOE, Denmark
HEAVY MACHINERY & EQUIPMENTHDM, GermanyHarnishfeger Industries, USAKubota Corporation, JapanMannesmann Demag, GermanyMitsubishi Electric Corporation, JapanMller-Weingarten, GermanyRapistan Demag Corporation, USASiemens Traffic Systems, GermanyStihl Inc., USATetra Pak, Germany
3COM Corporation, USAVoith Paper Technology, Germany
A selection
of customers
CONSTRUCTION & HEAVY
CONSTRUCTION
ABB Gebudetechnik, GermanyMax Bgl, GermanyHochtief AG, Germany
Philipp Holzmann AG GermanySOMAGUE, PortugalMitsui Engineering & Constructing, JapanSchwrer Haus, GermanyWeber Haus, Germany
ENGINEERING CONTRACTORBrown & Root, USAG Tech, USAHalliburton, USAHeeremac, NetherlandsMac Gregor, FinlandUHDE, GermanyZimmer AG, Germany