Engineer-to-Order (ETO) –

Project Assembly: (240)

SAP Best Practices for

Discrete Manufacturing V1.604
(U.S.)

SAP Best Practices

Scenario Overview – 1

Purpose and Benefits:

Purpose
 This scenario describes the order processing in a standard Engineer-to-Order (ETO)
environment.
 SAP Project System is used to control the whole process, from the SD requirement to
planning, purchasing, production and delivery.
 SAP Project-Oriented Procurement (ProMan) is used as an advanced tool to control the
planning/purchasing steps in the order procedure.

Benefits
 Project structuring/execution via project system is used to control the collaboration between
different departments
 Milestone billing is used to control the progressive payment procedure, and track back the
status of the project
 Use of ProMAN to control and monitor the manufacture/procurement procedures centrally
 Delivery the semi-finished goods via the project
 Handling the final assembly on customer site using network activity in the project

Key process flows covered

 Creation of sales order with reference to the quotation
 Rescheduling of project
 Use of ProMan for procurement process
 Reporting of milestones
 Confirm project activities
 Subassembly for various semifinished goods
 Delivery to customer
Scenario Overview – 2

SAP Applications Required:

Required
 SAP enhancement package 4 for SAP ERP 6.0

Company roles involved in process flows

 Sales Administrator
 Project Manager
 Sales Billing
 Accounts Receivable Accountant
 Purchaser
 Purchasing Manager
 Warehouse Clerk
 Shop Floor Specialist
 Product Cost Controller
 Production Planner
Scenario Overview – 3

Detailed Process Description:

Engineer-to-Order (ETO) – Project Assembly
This scenario describes a business process in a typical engineer -to-order (ETO) environment. The
project system is used to control the complete process from SD requirement to planning,
purchasing, production, and delivery. Project-Oriented Procurement (ProMan) is used to
control the planning/purchasing steps.
 The process starts with the creation of a sales order with reference to the quotation.
 Adoption of project data to the sales order (e.g. finished date, rescheduling of project)
 Assignment of human resources to the project for R&D
 Execution of advanced procurement for long lead-time materials using ProMan for
requirements planning
 Creation of project milestones to provide a basis for a SD billing plan
 The prework for the project will be done by R&D and the activities will be created under a WBS
element and confirmed later on.
 Technical Documents are added to the project structure
 Posting of R&D activities based on CATS records created by system
 The first advance payment of the customer should be received.
 Goods receipt for long lead-time components and check of availability of stock materials
 Materials requirements planning using ProMan to create planned orders over the whole BOM
 Subassembly for various semifinished products and confirmation in WBS element. The
customer should pay the second advance payment.
 Delivery of components to the customer
 Final payment of the customer
Process Flow Diagram (1)
Engineer-to-Order (ETO) – Project Assembly
Process Flow Diagram (2)
Engineer-to-Order (ETO) – Project Assembly
 Legend

Sy mbol Description Usage Sy mbol Description Usage Comments

Comments

Band: Identifies a user role, such as Accounts Role band To next / From last Diagram: Leads Flow chart continues on the next /
Payable Clerk or Sales Representative. This band contains tasks to the next / previous page of the previous page
<Function>

Diagram
can also identify an organization unit or group, common to that Diagram
rather than a specific role. role. Connection
The other process flow symbols in this table go into
these rows. You have as many rows as required to
cover all of the roles in the scenario. Hardcopy / Document: Identifies a Does not correspond to a task
Hardcopy / printed document, report, or form step in a document; instead, it is
used to reflect a document
External Events: Contains events that start or end the Document generated by a task step; this
External

scenario, or influence the course of events in the shape does not have any outgoing
to SAP

scenario. flow lines

Financial Actuals: Indicates a Does not correspond to a task

Flow line (solid): Line indicates the normal sequence Connects two financial posting document step in a document; instead, it is
tasks in a Financial used to reflect a document
of steps and direction of flow in the scenario. generated by a task step; this
scenario Actuals
Flow line (dashed): Line indicates flow to infrequently- process or a shape does not have any outgoing
used or conditional tasks in a scenario. Line can non-step event flow lines
also lead to documents involved in the process flow.

Business Activity / Event: Identifies an action that Does not Budget Planning: Indicates a Does not correspond to a task
either leads into or out of the scenario, or an outside correspond to a budget planning document step in a document; instead, it is
Business Process that happens during the scenario task step in the used to reflect a document
document
Budget generated by a task step; this
Activity / Planning shape does not have any outgoing
Event flow lines

Unit Process: Identifies a task that is covered in a Corresponds to

step-by-step manner in the scenario a task step in Manual Process: Covers a task Does not generally correspond to
the document that is manually done a task step in a document;
Unit Process Manual instead, it is used to reflect a task
Proces that is manually performed, such
s as unloading a truck in the
warehouse, which affects the
process flow.
Process Reference: If the scenario references another Corresponds to
scenario in total, put the scenario number and name a task step in
Process here. the document Existing Version / Data: This block Does not generally correspond to
Reference covers data that feeds in from an a task step in a document;
Existing external process instead, this shape reflects data
Version / coming from an external source;
Data this step does not have any
Sub-Process Reference: If the scenario references Corresponds to incoming flow lines
another scenario in part, put the scenario number, a task step in
Sub- name, and the step numbers from that scenario here the document
Process
Reference System Pass / Fail Decision: This Does not generally correspond to
System block covers an automatic a task step in the document;
Pass/F decision made by the software instead it is used to reflect an
Process Decision: Identifies a decision / branching Does not ail automatic decision by the system
Decisio that is made after a step has been
point, signifying a choice to be made by the end usually executed.
Proces user. Lines represent different choices emerging correspond to a n
from different parts of the diamond. task step in the
s document;
Decisio Reflects a
n choice to be
made after step
execution