Order Processing 

Purpose

Procurement, production coordination of construction sites, shipping and assembly are carried out so that the power plant is ready for operation as a result.

Engineering and design becomes more detailed during project processing. Changes are to be analyzed with respect to the possible effects on costs, dates and resources and should be documented and agreed on with the sold-to party. Furthermore, BOMs should be adjusted to fit the results in the detail construction and should be checked with regard to the effects on the whole concept. The process described contains, in praxis, repetitions and changes in many different places.

You execute material requirements planning for the project in order to plan procurement measures for the material requirements. Advance procurement and partial deliveries are commonplace since the projects often last a long time.

You can display and valuate the stock situation at any time using the project-related stock/requirements list. Goods receipt and goods issue can be traced with regard to quantity and value and be accounted to the project appropriately using the valuated project stock.

Within the framework of a central planning and control system, confirmations from all areas involved in the project are supported so that there is complete entry of all company-internal and company-external deliveries and services and double entry is avoided.

Process Flow

The following graphic clarifies the process:

  1. Component Processing

    2. The engineering/design department has generated a WBS BOM for your power plant project using CAD systems. In order to plan material costs in detail and trigger the procurement of components, you assign individual BOM components to an activity in your project using the BOM/PS interface. Certain equipment, for example two components for the generator, has long procurement times and must be procured in advance.

    After detailed planning, you assign the BOM to the project and execute material requirements planning.

  2. Entering Unplanned Costs

    3. Unplanned costs arise on the construction site. You post the appropriate invoice.

  3. Confirmation from the Construction Site Using CATS

    4. In the power plant project, work done and activities performed on or for the site are confirmed using time sheets and then transferred to the project system. Since an authorization procedure is in force, the confirmation has to be authorized before the transfer.

  4. PS Cash Management

    5. From a project point of view, it is important for the project manager to be able to plan and oversee the flow of payments, especially for capital-intensive projects or projects of long duration. The payment flow per activity is then evaluated in reporting.

    In praxis, the individual steps are carried out by different employees at different points in time. The individual activities are grouped together in order to clarify the process.

  5. Periodic Work

You carry out periodic work regularly during the processing of the project. The following belongs to project controlling: