Transcript Title of the presentation This is the subtitle

Compatible Units Offer New Ways to
Plan, Design, and Create Work Orders
with SAP ERP
Gero Bieser
IBU Utilities, SAP AG
Agenda
1. What are Compatible Units?
2. Work Management with Compatible Units
2.1
2.2.
2.3
2.4
2.5
© SAP 2007 / Page 3
Compatible Units
CU Work Order
CU Designs
Construction Measures
Interfaces to external Systems
What are Compatible Units?
CUs are used to simplify, standardize, and
automate the planning, estimating, and cost
accounting of construction work.
CUs combine standardized and repetitive units of
work for a certain technical object, for example

Install, Repair, Replace “Pole, Douglas Fir”

Install, Replace “Transformer”
Compatible units can also represent other
entities, such as services (for example paving).
CUs are predominantly used by utilities, but not
exclusively.
© SAP 2007 / Page 4
What are Compatible Units?
CUs are a Combination of

Labor: What should be done, who should do it,
what‘s the required qualification, how long
does it take

Materials

Tools

Costs

Resources External / Internal

Legal (e.g. FERC) Accounting Rules (account
codes, standard costs)
© SAP 2007 / Page 5
Why do Companies use Compatible Units?
Planning Reasons

Minimization of time for work estimates

More transparent estimation versions
Reporting Reasons

Better comparison of unit work performance

Across industry efficiency comparison
Legal Reasons

Higher accuracy and consistency of associated costs

Accurate accounting of asset base value

Statistical proof of investments in nets required by FERC (Federal Energy
Regulatory Committee)
Historical Reasons

Long tradition of using CUs at T&D companies

Work Management process is based on CU library
© SAP 2007 / Page 6
Agenda
1. What are Compatible Units?
2. Work Management with Compatible Units
2.1
2.2.
2.3
2.4
2.5
© SAP 2007 / Page 7
Compatible Units
CU Work Order
CU Designs
Construction Measures
Interfaces to external Systems
Process Overview:
Work Management with CUs
Design
Initiate
Capital
Projects
Customer
Requests
Execute
Update in
FI / CO / HR
CU Design
alternative 1
Construction
Measure
Maint.
Requests
CU based
Work Order
CU Design
alternative 2
Replacements
…………
© SAP 2007 / Page 8
Unitization
of assets
Update of
as-built design
CU Design
alternative 3
CU Library
Close
Graphical
Design
Tool
Process Overview:
Work Management with CUs
Design
Initiate
Capital
Projects
Customer
Requests
Execute
Update in
FI / CO / HR
CU Design
alternative 1
Construction
Measure
Maint.
Requests
CU based
Work Order
CU Design
alternative 2
Replacements
…………
© SAP 2007 / Page 9
Unitization
of assets
Update of
as-built design
CU Design
alternative 3
CU Library
Close
Graphical
Design
Tool
The Data Object “Compatible Unit”
Settlement Rule
Classification
Compatible Unit
Technical Object
(template)
Material
Task List
Material, Labor Time
Work Center/Activity Type
Production Resource/Tool
…
© SAP 2007 / Page 10
Compatible Unit Screen
Classification
Task List
Technical Object
© SAP 2007 / Page 11
Multilevel Hierarchies of CUs
Multilevel CU
CU 1
CU 2
CU3
CU4
CU5
CU6
CU3
CU7
© SAP 2007 / Page 12
Process Overview:
Work Management with CUs
Design
Initiate
Capital
Projects
Customer
Requests
Execute
Update in
FI / CO / HR
CU Design
alternative 1
Construction
Measure
Maint.
Requests
CU based
Work Order
CU Design
alternative 2
Replacements
…………
© SAP 2007 / Page 13
Unitization
of assets
Update of
as-built design
CU Design
alternative 3
CU Library
Close
Graphical
Design
Tool
CU Work Order
CU Work Order = Standard Work Order + additional features
© SAP 2007 / Page 14
Operation Level Costing for CU Work Orders
(planned to be offered by SAP Custom Development)
Costs and settlement rule on operation level
© SAP 2007 / Page 15
Process Overview:
Work Management with CUs
Design
Initiate
Capital
Projects
Customer
Requests
Execute
Update in
FI / CO / HR
CU Design
alternative 1
Construction
Measure
Maint.
Requests
CU based
Work Order
CU Design
alternative 2
Replacements
…………
© SAP 2007 / Page 16
Unitization
of assets
Update of
as-built design
CU Design
alternative 3
CU Library
Close
Graphical
Design
Tool
Data Objects and Transactions
IW31
CU Master Data
Work Order
Work Order
DESIGN
CU Master Data
CU Master Data
Design Templ.
DESIGN
Design Docum.
Design Templ.
DESIGN
IW31 = Standard transaction „Create Work Order“
DESIGN = CU Design Builder
DESIGN
Work Order
The Design Builder
Header Data
(can be minimized)
CUs that
correspond to
search criteria
Selected CUs:
• Hierarchy view
• List view
© SAP 2007 / Page 18
Virtual CUs
A Virtual CU

allows to group several CUs and work order operations

can be linked to a technical object during order creation
© SAP 2007 / Page 19
Process Overview:
Work Management with CUs
Design
Initiate
Capital
Projects
Customer
Requests
Execute
Update in
FI / CO / HR
CU Design
alternative 1
Construction
Measure
Maint.
Requests
CU based
Work Order
CU Design
alternative 2
Replacements
…………
© SAP 2007 / Page 20
Unitization
of assets
Update of
as-built design
CU Design
alternative 3
CU Library
Close
Graphical
Design
Tool
Construction Measure
A construction measure

defines a job

groups together CU designs and
associated documents relevant for
the job

can contain multiple versions of a
CU design. This allows


users to compare different
versions

release control
can be allocated to a master
work order, notification or WBS
element
© SAP 2007 / Page 21
CU Objects: Possible Relationships
Master
Order
Notification
Construction
Measure with
Release control
Construction
Measure
Design 1
Design 2
Design n
Order 1
Order 2
Order n
© SAP 2007 / Page 22
Master
Order
Notification
X
Design 1
Order X
Order Y
Design 2
Order 1
X
Design n
Process Overview:
Work Management with CUs
Design
Initiate
Capital
Projects
Customer
Requests
Execute
Update in
FI / CO / HR
CU Design
alternative 1
Construction
Measure
Maint.
Requests
CU based
Work Order
CU Design
alternative 2
Replacements
…………
© SAP 2007 / Page 23
Unitization
of assets
Update of
as-built design
CU Design
alternative 3
CU Library
Close
Graphical
Design
Tool
Interface to External Systems
Outbound:

“Get CU List” and “Get CU Detail”:
Allows transfer of CU master data

“Simulate Creation of a CU Order”:
Provides general costing information
without creating a new work order
Inbound:

“Create Construction Measure”

“Maintain CU Design Doc.” and “Get
Detail CU Design Doc.”

“Create CU Order”
© SAP 2007 / Page 24
SAP ERP
Design Tool
CU Library
CU Library
Construction
Measure
Construction
Measure
CU Design
CU Design
CU Order Costs
CU Order Costs
CU Order
CU Order
Summary
Compatible Unit Management

is a Work Management concept used by many utilities in the US, UK and Ireland

drives consistent use of standard materials, standard designs and thus standard
maintenance procedures
SAP’s Compatible Unit Management

introduces a new, CU based work management process in SAP ERP

includes the new data objects Compatible Unit, Design, and Construction Measure

is integrated with SAP’s PM component (from SAP ERP 6.0 EhP2 on)
Conclusion

“Deployment of CU Functionality in 2007 will be an industry leading best practice.”
PG&E at ASUG 4/2007

“The compatible unit functionality provides ROI by providing more efficient and
standardized material & labor selections.”
PG&E at ASUG 5/2008
© SAP 2007 / Page 25
Thank you!
© SAP 2007 / Page 26