Production Reprocessing Tool
A solution that increases resource and material efficiency
In the resource-intensive manufacturing processes of, for example, the paper or steel industry, material costs and labor account for a major part of the overall costs. Furthermore, such production always results in surplus items that are disposed of as waste because they are manufactured individually or have limited lifespans. This is not only a waste for reasons of cost, it also has negative impacts on companies’ environmental and sustainability objectives. As a PwC solution for SAP environments, the Production Reprocessing Tool provides support for the sustainable and economically rational reprocessing of production surpluses.
This not only results in increased resource and material efficiency and thus cost savings, it also reduces production times and helps to protect the environment.
“Resource scarcity and rising commodity prices necessitate a thoughtful and sustainable approach to materials such as metal, paper and plastic.”
Our service at a glance
Economically and ecologically rational
Residual materials from production are not usually given much consideration as many companies believe this would entail too much effort. The smart utilization of production surpluses is, however, both economically and ecologically rational. Companies that successfully use such residual materials in an optimal manner help to protect the environment while also saving on material, labor and machinery costs.
More sustainable material usage also enables companies to strengthen their relationships with customers. This is because they can respond to customer requests more rapidly when they can search through residual materials systematically and reuse them for production.
“Reutilizing waste within the production process not only reduces costs for raw materials, it also has positive consequences for the environment.”
Configurable algorithm
The Production Reprocessing Tool brings residual materials back into the production cycle and thus facilitates the ecologically friendly reutilization of resources. It can be applied for production planning in sectors such as the paper or steel industry. The solution is based on a flexible and configurable search algorithm that finds alternative parts for production orders. No additional expenses for data management are required in order to do this.
Seamless integration into existing processes
Many industrial manufacturing companies are already using SAP and function modules such as Production Planning (SAP PP). As an add-in, the Production Reprocessing Tool can be integrated into standard SAP processes such as Production Planning (PP) with little effort. The solution is primarily aimed at industries that produce or process resources such as metal, wood, paper, fabrics, rubber or wiring.
Advice for using the solution
The experts at PwC will advise you on how to use the Production Reprocessing Tool, based on SAP ECC or SAP S/4 HANA, and on integrating it seamlessly into your existing SAP system and function modules, such as SAP PP.
The tool is based on a flexible algorithm that assists companies in identifying suitable parts among its residual materials. It is also possible for users to configure their own algorithms for different product groups.
Overview of the advantages of the Production Reprocessing Tool
- Cost savings
- Caring for the environment
- Reduced lead times
- Increased transparency
Cost savings
Effective utilization of residual materials reduces material, labor and manufacturing expenditure – and thus results in savings on raw material and labor costs. This is a vital benefit in times of rising commodity prices and resource scarcity.
Caring for the environment
Not only will the Production Reprocessing Tool facilitate savings on material costs, it will also help you to achieve your sustainability objectives more quickly. Companies that use all of their manufacturing materials efficiently produce less and reduce their CO2 emissions. It is estimated that such sustainable utilization of residual materials can cover approximately 7% of the materials required for production.
Reduced lead times
The Production Reprocessing Tool enables firms to skip certain production steps and thus significantly reduce lead times for their customers. This means that customer orders can be processed faster. For example, the lead time for customers – a vital key performance figure – can be reduced by as much as 30% using the Production Reprocessing Tool.
Increased transparency
The real-time integration of residual materials into production planning increases transparency regarding stock levels and thus enables companies to carry out sustainable and efficient process optimization. The best part is that it is not necessary either to copy data back and forth or to set up additional interfaces because the ad-in functions within the existing system.
The added value for you
Tried-and-tested solution with practical support
The Production Reprocessing Tool can be integrated seamlessly into the standard SAP ERP. The add-in for embedded production planning (PP) processes means that the roll-out can take place quickly. No major production process adjustments are needed.
Your IT function will also find that using the Production Reprocessing Tool is as simple as can be possibly imagined. This is because the tool can be integrated into interfaces without any maintenance work. Furthermore, it relies on standard SAP objects and data, meaning that no additional master data or workloads are generated. The Production Reprocessing Tool provides you with a flexible and configurable algorithm to search for parts based on standardized SAP function modules.
The experts at PwC provide support to companies with the implementation of this solution. Our specialists will advise you and apply their hands-on approach, extensive know-how and process expertise as well as their practical experience in the area of implementation. In so doing, we always seek to achieve flexible and tailored solutions as well as the integration of business and IT.
Production Reprocessing Tool recognized by SAP
Not only does the Production Reprocessing Tool assist companies in optimizing their material usage, it also has a positive impact on their ecological balance. This combined effect also impressed the jury of the SAP Innovation Awards 2021. The solution was therefore recognized with an “Honorable Mention”.
“Companies that successfully reprocess residual materials into their production cycle not only increase their resource efficiency, they also reduce waste and the associated environmental impacts by up to 90%.”
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