Managing the entire product life cycle

Over 1 500 companies in the engineering and construction industry world-wide, including five in South Africa, have selected ERP leader SAP to meet their industry-specific business and technology requirements.

"Companies are looking to SAP`s industry-specific solutions to achieve a high level of business integration and return on investment," says Freek Malherbe product manager: manufacturing, SAP Southern Africa. "By having real-time access to information on project costs, materials, schedules and subcontractor availability, companies can improve project execution through tighter integration with all aspects of their business."

The SAP Engineering and Construction (E&C) solution focuses primarily on managing the entire product life cycle and supply chain, from design, planning and manufacturing, to final assembly at the customer site. The solution provides an integrated structure to manage activities and data from proposal development and planning to engineering, procurement, construction, start-up and project close-out.

The open architecture, flexibility and scalability of the solution enables companies of all sizes, including small and midsize companies, to take advantage of the following key benefits:

An integrated system to help manage project costs, profits and cash flow, giving businesses real-time reports for monitoring planned vs. actual expenditures; Accelerated engineering to integrate change management, computer-aided design, product data management and documentation, providing consistent processes across the entire operation; and Tools for managing the life cycle of the asset, whether it is a house with follow-up warranty and service or construction of a chemical plant

The comprehensive SAP E&C Industry Solution, involving SAP`s core R/3 system, brings best business practices to engineering and construction companies. It helps companies to focus on core processes and functions, and to become more market and customer focused.

"The link with the Internet opens new avenues for communicating with customers and suppliers," says Malherbe.

A Solution Map has been developed to show where the specific requirements of the engineering and construction industry are met by the SAP R/3 system. It illustrates the path that leads to continuous, integrated processes. Universal business processes replace traditional departmental thinking with the emphasis on linking to business management.

The E&C processes have been grouped into nine process categories, enterprise management, develop to order, make to order, engineer to order, engineering procurement and construction, construction, service and maintenance and business support. These categories have been broken down further into processes, and each process into specific functionality.

"The SAP Engineering and Construction Solution offers its clients capabilities that give operational and strategic flexibility and a competitive edge," concludes Malherbe. "SAP continuously reviews the R/3 system to ensure that it is ready for the future."