ABSTRACT

SAP is the leading Enterprise Information and Management Package worldwide. Use of this
package makes it possible to track and manage, in real-time, sales, production, finance
accounting and human resources in an enterprise.

SAP takes a different approach. There is only one information system in an enterprise, SAP.
All applications access common data. Real events in the business initiate transactions.
Accounting is done automatically by events in sales and production. Sales can see when
products can be delivered. Production schedules are driven by sales.

SAP structure embodies what are considered the "best business practices". A company
implementing SAP adapts it operations to it to achieve its efficiencies and power.

In order to understand a system like SAP a thorough understanding of the events and
relationships that take place in a business is required. It is not enough to just realize the Sales,
Production, Finance and Accounting have jobs to do in a business. The exact details of each
action, the timing of that action and its interrelationships with every other process must be
understood. In many large operations there may be no person that has a complete grasp of the
situation. Before an operation can be automated or computerized a thorough study of the
business must be undertaken. This task is called Business Process Engineering.

1
 TABLE OF CONTENTS

1. Abstract

2. Introduction to Bhushan steel Ltd.

3. Enterprise Resource Planning (ERP)

4. SAP

5. Technical module

i. ABAP

ii. BASIS

6. Functional module

i. Material Management

ii. Finance and Controlling

iii. Sales and Distribution

iv. Production Planning

7. Plant Training

8. Conclusion

9. References

2
Bhushan Steel Limited

COMPANY PROFILE

About the company

“Our mission is to grow our company by providing innovative strong and high performance
products and solutions to meet our global customer needs.”

Bhushan Steel Ltd formerly known as Bhushan Steel & Strips Ltd. is a globally renowned
one of the leading prominent player in Steel Industry. Backed by more than two decades, of
experience in Steel making, Bhushan Steel is now India’s 3rd largest Secondary Steel
Producer company with an existing steel production capacity of 2 million tones per annum’s
(approx.).

The company has three manufacturing units in the state of Uttar Pradesh (Sahibabad Unit),
Maharashtra (Khopoli unit), and Orissa Plant (Meramandali unit) in India and sales network
is across many countries.The company is a source for vivid variety of products such as Cold
Rolled Closed Annealed, Galvanized Coil and Sheet, High Tensile Steel Strapping, Colour
Coated Coils , Galume Sheets and Coils, Hardened & Tempered Steel Strips , Billets, Sponge
Iron, Precision Tubes and Wire Rod.

As one of the prime movers of the technological revolutions in Indian Cold Rolled Steel
Industry, BSL has emerged as the country’s largest and the only Cold Rolled Steel Plant with
an independent line for manufacturing Cold Rolled Coil and Sheet up to a width of 1700mm,
as well as Galvanized Coil and Sheet up to a width of 1350 mm. Given a vibrant Steel
industry dynamics in India, we are on a course to become a fully Integrated Steel & Power
Company with market leading offerings in value added Steel in Automotive and White Good
Segment with the quality been approved by ISO 9002 and QS 9000.[1]

3
Company’s vision and mission

“The vision of evolving into a totally Integrated Steel Producer by committing to achieve the
highest standards of Quality through Cutting-Edge Technology. ” The key to Vision is to use
rigorous conceptual framework and to understand how that framework connects to the
underlying DNA of enduring great companies.[2]

4
 ENTERPRISE RESOUCE PLANNING (ERP)

Enterprise Resource Planning (ERP) is an integrated computer-based system used to

manage internal and external resources, including tangible assets, financial resources,
materials, and human resources. Its purpose is to facilitate the flow of information between
all business functions inside the boundaries of the organization and manage the connections
to outside stakeholders. Built on a centralized database and normally utilizing a common
computing platform, ERP systems consolidate all business operations into a uniform and
enterprise-wide system environment.

NEED OF ERP

1. The primary reason an ERP solution is so vital to a company’s success is efficiency.

2. ERP solutions allow companies to achieve true business process automation. This can
not only boost productivity and worker output, it can dramatically reduce operating
and overhead expenses.

3. ERP systems increase information consistency and accuracy.

4. An ERP solution makes it easier for employees at all levels to assess company
performance and understand their impact on it.

ADVANTAGES OF ERP SYSTEMS

Industry wise advantages

1. Manufacturing Sector- Speeding up the whole process.

2. Distribution and retail Stores- Accessing the status of the goods

3. Transport Sector- Transmit commodities through online

transactions.

4. Project Service industry- Fastens the compilation of reports.

5
Advantages in a corporate entity

1. The accounts department personnel can act independently.

2. Ensures quicker processing of information and reduces the burden of paperwork.

Serving the customers efficiently by way of prompt response and follow up.

3. Disposing queries immediately and facilitating the payments from customers with
ease and well ahead of the stipulated deadline.[3]

6
 SAP

SAP stands for Sytems Applications and Products in Data Processing. SAP is an ERP
(Enterprise Resource Planning) package of a German company SAP-AG. ERP is
computer based system which is used to control all internal and external resources of
the organization. It is a software architecture that facilitates the flow of information
between different business functions inside the boundaries of the organization and
manages the connections outside with stakeholders. There are many other vendor
providing ERP solutions like BAAN, Oracle, JD Edwards. In Bhushan Steel SAP R/3
is implemented i.e. the system has a 3–tier client/server architecture.[4]

3–tier client/server architecture means that it has 3 layers:

1. Presentation server

2. Application server

3. Database server

Presentation server: It is installed on end user’s system. It gives GUI to the user.
sapgui.exe program is run on user’s system to start GUI.

Application server: An application server is a excutables that collectively

interpret the ABAP/4 programs and manage the input and output for them. When
an application server is started, these executables all start at the same time. When
an application server is stopped, they all shut down together.

Database server: It maintains the complete data of the organization. The database
server handles the user's request for addition, retrieval and modifications in the
data.[5]

SAP is the largest selling ERP package in world market. It covers 24% share of its
target market. It is because of the following features:

7
 1. Transparent system

2. Provides flawless information

3. Information flow with security

4. Avoids data redundancy

5. Single data entry multiple records

6. Multi lingual [4]

SAP has mainly consists of:

1. Technical module

2. Functional module

8
Technical module

This part consists of two sub-modules:

a. ABAP

b. BASIS

ABAP

ABAP stands for Advanced Business Application Programming. It is a fourth

generation language used to write programs in SAP. It was developed by SAP. Any
modification in SAP functionality is done using this language by ABAP team. All
ABAP programs reside in SAP database. Its syntax is similar to COBOL. ABAP is an
event driven programming. In SAP following reports can be generated:

i. Interactive reports

ii. Non-interactive reports

Classical/non-interactive reports are the simplest reports. They are produced

just by entering the whole data. They do not allow user interaction. Complete
data exists in the table but user has to sort it according to his requirements.

9
 Interactive reports are the one which allow user interaction. It is a customized
report and when user needs additional information on some particular part of it
he clicks on it and another dialogue box opens containing required
information. For example, Column one of the report displays the material
numbers, and the user feels that he needs some more specific data about that
material, he can click on material number to direct him to details of that
material number. [4]

BASIS

BASIS stands for Business Application Software Integrated Solution. It is a

technological platform that supports all the applications written in SAP, now
typically implemented in the framework of the SAP Web Application Server. So
we can say that BASIS is a virtual machine on which SAP applications run.

BASIS also provides a layer of abstraction between the business applications and
the operating system and database. This ensures that applications do not depend
directly on a specific server and can be imported from one platform to another.

Features of R/3 BASIS system enabling these abstractions are:

i. Client server architecture and configuration

ii. Use of relational dbms

iii. GUI design for presentation [6]

Functions of BASIS

User authentication:

10
 Everyone who uses SAP must have a login ID and password through
which he can login the system. These user ids and passwords are
maintained in BASIS.

User authorization:

On the basis of the work user has to do BASIS gives him the authorization
to him. Like end user has less rights to access SAP’s features as compared
to a developer. Activity groups are formed in SAP, according to these
activity groups authorization rights are given. Activity groups can be
programming, payroll, HR etc. each of these groups has a different work to
do and so will have different authorization levels which is decided by
BASIS.

Server side implementation:

There are 3 servers in SAP. They are : development server, on which all
the development work is done by the core development team, production
server, which is for the end user on which he works, and quality server
which is used for testing the application developed by core team.
Whenever a request is received from end user for some development
members of the core team develop that application and then send a request
to BASIS team which processes the request. A request from quality server
is sent to production server if developed application is working properly
which is also processed by BASIS.

Monitoring:

11
 BASIS monitors the usage of SAP by every user. If a user is running a
report again and again, or if some report is taking very long time to get
execute then BASIS stops it. If a user has logged in and he is not doing
anything for predefined time period then BASIS logs him out explicitly. In
such way BASIS keeps track of the usage of the system.

Also if user comes across any problem then it is also recorded in BASIS so
that it can be solved/rectified as soon as it is encountered.

Back-up:

Everyday back-up is taken of complete data of production server in SAP.

This back-up data is managed by BASIS team. This back-up is important
because SAP server may have some problems some time. [4]

Functional module:

Modules in functional domain manage the complete functioning of an

organization.

Following figure shows all the modules in functional domain.

12
MATERIAL MANAGEMENT (MM)

MM is fully integrated with other modules of SAP. It supports all the phases of material
management from material planning and control, purchasing, goods receiving, inventory
management and final payment to vendor using invoice verification.

Process flow in material management

Determination of requirements

Source determination

Vendor selection and comparison of quotations

Purchase order processing

Purchase order follow up

Goods receiving and inventory management

Invoice verification

13
First of all requirements are determined in the process. It is decided what materials are
needed and how much we need them i.e. quantity is determined. Then request is sent to
different vendors for their quotations. When quotations are received they are compared on the
basis of price, quality and conditions put by the vendors, and whichever quotation suits best
is selected. Thus vendor is selected. Then purchase order is made and sent to the vendor. The
system provides up-to-date status of requisitions, quotations and purchase orders in specified
time to follow up the order. Goods receiving are confirmed by entering the PO number and
then inventory is updated. Finally payment is done using invoice verification. [4]

Masters in material management:

1. Material master

2. Vendor master

Material master:

It contains information about all the materials that a company procures, produces,
stores and sells.

It is the central source of retrieving all the material specific data.

Material master has a hierarchical structure like an organization. Some of it may be

valid at all levels while some of it will be valid at some levels only.

14
Each material in material master is given a code. This number can either be implicit
(given by the system) or explicitly given by the user. Code assigned to the material by
the system contains numbers only but when user gives the code is usually alpha-
numeric which gives all the details of the material like its width, thickness, source etc.

It is used by all components. The integration of all material data in a single database
object eliminates data redundancy. [7]

Corporate structure of material master:

client

001

company code

0001 0002

plants

0001 0002 0003 0004

000 000 000 ------

1 2 3

15
 ------------------------------------------------------

Storage locations

[7]

Client: a self contained unit with separate master records and a set of tables.

Company code: smallest organizational unit for which a complete self contained set of
accounts can be drawn up.

Plants: an organizational unit working to sub-divide an enterprise. A place where services are
provided.

Plants assigned to different company codes cannot have same codes, but storage location
codes can be repeated for some different plants. [7]

Vendor master: It contains data of all vendors with which a company conducts business. It is
a collective term for all vendor records. Each vendor master record has a unique no. assigned
by the system or user. You need this number to call up the record later or to enter the
purchase order. There are mainly 3 areas in vendor master. They are:

1. General

2. Company code data

3. Purchasing data [8]

16
FINANCE AND CONTROLLING

The SAP FI (finance) module is a module where all financial activities are tracked and
managed. The FI module has the capability of meeting all the accounting and financial needs
of an organization. With the help of this module all the managers of an organization can
review the financial position of the company. Since SAP modules are having real time
functionality they help in better decision making and strategic planning. FI module is
integrated with other modules like MM, PM, SD etc.

Main sub-modules of FI are:

i. Account receivables: it records all postings generated as a result of customer sales

activity.

ii. Account payables: it records all postings generated as a result of vendor purchasing
activity.

iii. Asset accounting: it manages company’s fixed assets.

iv. General ledger: it is the main accounting record of a business which uses double
entry book keeping (debit transaction in one account and credit to another). It
usually includes current assets, fixed assets, liabilities, expenses, gains and losses.

v. Special purpose ledger: It is used to define ledges for reporting purposes.

17
 There are 5 masters in FI:

a. Material master

b. Vendor master

c. General ledger master

d. Customer master

e. Fixed asset master

Accounting configurations have a hierarchy which starts from client. After that, the next level
of hierarchy is Chart of accounts which is defined for the entire group of companies. Then
GL accounts are defined. These can further be used for reporting like Balance sheet, P&L
accounts and Trial balance etc. Then next level is Company which is an optional level.
Company code is defined at the next level. After that Business areas are assigned to company
code. For example – we have 6 Business Areas ; SBST for Sahibabad plant, SBPW for
Sahibabad power unit, ABST for Orissa plant, ABPW for Orissa power unit, KBST for
Khapoli plant and KBPW for Khapoli power unit. The financial statements can be seen at any
level of this hierarchy. [9]

18
 Client

Chart of Accounts

GL Accounts

Company

Company Code

Business area

The Controlling Module provides supporting information to Management for the purpose of
planning, reporting, as well as monitoring the operations of their business. Management
decision-making can be achieved with the level of information provided by this module.

Some of the components of the CO Module are as follows:

Cost Element Accounting

Cost Center Accounting

Internal Orders

Activity-Based Costing ( ABC)

Product Cost Controlling

Profitability Analysis

19
Profitability Analysis: It allows Management the ability to review information with respect to
the company’s profit or contribution margin by business segment. Profitability Analysis can
be obtained by the following methods:

Account-based analysis which uses an account-based valuation approach. In this analysis,

cost and revenue element accounts are used. These accounts can be reconciled with
FI(Financial Accounting).

Cost-Based Analysis: uses a costing based valuation approach as defined by the User.

Profit Center Accounting: It provides visibility of an organization’s profit and losses by profit
center. The methods which can be utilized for EC-PCA (Profit Center Accounting) are period
accounting or by the cost-of-sales approach. Profit Centers can be set-up to identify product
lines, divisions, geographical regions, offices, production sites or by functions. Profit Centers
are used for Internal Control purposes enabling management the ability to review areas of
responsibility within their organization. The difference between a Cost Center and a Profit
Center is that the Cost Center represents individual costs incurred during a given period and
Profit Centers contain the balances of costs and revenues. [10]

SALES AND DISTRIBUTION

20
SD module is used to manage customer focused activities, from selling to delivery including
RFQ, sales order, pricing, picking, packing and shipping. SD module integrates with every
other R/3 application including FI, CO, MM, PP, and so on. The SD module is made up of
multiple components. Here is a brief list of these:
MD = Master Data
BF = Basic Functions subdivided into multiple components, such as pricing, output etc.
SLS = Sales
SHP = Shipping
TBA = Transportation
FTT = Foreign Trade
BIL = Billing
CAS = Sales support
EDI = Electronic Data Interchange
IS = Information System [11]

There are three sales organizations in SD module:

1. Trade

2. OEM (original equipment manufacturer)

3. Export

Sales cycles of these organizations are explained below.

1. Trade sales cycle

Trade sales cycle follows following steps:

21
a) Create sales order (Tcode – ZGMSSALES) - This is a customized transaction to
select the material for which the sales is to be done and includes the standard
transaction for order creation (Tcode - va01).
b) Create outbound delivery (Tcode - VL01N) – Outbound delivery is made to support
all shipping activities like picking, packing, transport and goods issue.
c) Loading slip (Tcode - ZS001 for SBST plant) - The loading slip is made for
transportation of the goods.
d) Inspection lot selection (Tcode - QA32) – Usage decision is made by the quality
department and the approval is given if the material is found ok.
e) PGI – (Tcode - VL02N) – PGI means Post goods Issue. When PGI is done, stocks
are updated in inventory and the ownership of the goods is changed.
f) Create billing Document (Tcode - VF01) – Commercial invoice is made using this
transaction.
g) Create Excise invoice (Tcode - j1iiN) - Excise invoice is made through this
transaction

2. OEM sales cycle

OEM sales cycle follows following steps:

a) Create quotation (Tcode - VA21) – Quotation is created for the customer using this
code. The material entered should be assigned to sales organization ‘OEM’. Pricing
details are also added in this step.
b) Approval 1 (Tcode - ZTECHAPPROVE1) - Technical approval is done by the
concerned department.
c) Approval 2 (Tcode - ZTECHAPPROVE2) - Technical approval is done by the
concerned department.
d) Approval 3 (Tcode – ZCOMMAPPROVE) - Commercial approval is done by the
concerned person.
e) Create sales order (Tcode - VA01) – Order is created with reference to quotation
made.

22
f) Goods receipt (done by plant people) – Goods are received in the store after their
production is complete.
g) Check stock (Tcode - MB52) – Stock entered can be checked through this
transaction. However, this step is optional and can be skipped.
h) Create outbound delivery with order reference (Tcode - VL01N) – Outbound
delivery can be created by specifying the order number.
i) PGI – (Tcode - VL02N) –Post goods Issue is done for the outbound delivery created.
j) Create dummy bill (Tcode - VF01) – This bill is mandatory step and is a bridge for
further transaction. However, the details of this invoice are not entered anywhere.
k) Create release order (Tcode - VA01) – Release order is created with the order type
‘zror’.
l) Create outbound delivery (Tcode - VL01N) – Logistics delivery is created in this
step
m) Loading slip (Tcode - ZS001 for SBST plant) - The loading slip is made for
transportation of goods.
n) Inspection lot selection (Tcode - QA32) – Usage decision is made by the quality
department and the approval is given if the material is found ok.
o) PGI – (Tcode - VL02N) – PGI means Post goods Issue. When PGI is done, stocks
are updated in inventory and the ownership of the goods is changed.
p) Create billing Document (Tcode - VF01) – Commercial invoice is made using this
transaction.
q) Create Excise invoice (Tcode - j1iiN) - Excise invoice is made through this
transaction

3. Export sales cycle

Export sales cycle follows following steps:

a) Create quotation (Tcode - VA21) – Quotation is created for the customer using this
code. The material entered should be assigned to sales organization ‘Export’. Pricing
conditions are also added in this step.

23
b) Create Pro forma invoice (Tcode -VA21) – Pro forma invoice is generated in this
step.
c) Approval 1 (Tcode - ZTECHAPPROVE1) - Technical approval is done by the
concerned department.
d) Approval 2 (Tcode - ZTECHAPPROVE2) - Technical approval is done by the
concerned department.
e) Approval 3 (Tcode – ZCOMMAPPROVE) - Commercial approval is done by the
concerned person.
f) Create sales order (Tcode - VA01) – Order is created with reference to quotation
made.
g) Goods receipt (done by plant people) – Goods are received in the store after their
production is complete.
h) Create outbound delivery with order reference (Tcode - VL01N) – Outbound
delivery can be created by specifying the order number.
i) PGI – (Tcode - VL02N) –Post goods Issue is done for the outbound delivery created.
j) Create dummy bill (Tcode - VF01) – This bill is mandatory step and is a bridge for
further transaction. However, the details of this invoice are not entered anywhere.
k) Create release order (Tcode - VA01) – Release order is created with the order type
‘zero’.
l) Create outbound delivery (Tcode - VL01N) – Logistics delivery is created in this
step
m) Loading slip (Tcode - ZS001 for SBST plant) - The loading slip is made for
transportation of the goods.
n) Inspection lot selection (Tcode - QA32) – Usage decision is made by the quality
department and the approval is given if the material is found ok.
o) PGI – (Tcode - VL02N) –Post goods Issue is done for the outbound delivery created.
p) Create billing Document (Tcode - VF01) – Invoice for customs is made in this step.
q) Create Excise invoice (Tcode - j1iiN) - Excise invoice is made through this
transaction
r) Transfer to port (Tcode – ZPORTN) – This transaction is for shipping the material
to the port.

24
 s) Port release order (Tcode – ZPOR) – This transaction makes an order to release the
material from the port.
t) Create outbound delivery (Tcode – VL01N) – Outbound delivery for shipping from
port is created.
u) PGI (Tcode - VL02N) - Post goods Issue is done for the outbound delivery created.
v) VF01 – Create Billing Document – Commercial invoice is made using this
transaction. [4]

PRODUCTION PLANNING
Production planning takes care of the production activities taking place in an organization. It
is used to minimize cost and production time, efficiently organize the use of resource and
maximize efficiency.

Activities in PP
• Processing material master
• Processing material BOM
• Displaying work center and routing
• Maintaining planning calendar
• Maintaining production lot
• Maintaining quota file
• Defining range of coverage profile and period profile for safety time
• Defining MRP views

PP is highly integrated with SD, FI/CO and HR modules. It is a real time system. The
changes in demand and/or supply are reflected immediately so that user can controller can
react fast to the changes.

There are 4 masters in PP:

1. Work center

25
 2. Routing
3. Material requirement planning
4. Bill of material

Following Data is maintained in production planning module:

1. Work center: Work center means a place allocated for a set of

activities to be performed by specific group of people. For ex - Annealing, pickling etc.
2. Routing: routing means the route which raw material will
follow before it becomes the finish or Semi Finish goods would be delivered.
3. BOM: Bill of material will be generated for all the materials. It
will contain the details of raw materials to be consumed during the process of
production of that material.
4. MRP: Material requirement planning will be done for each raw
material based on the time at which that particular material is consumed in the
production process.

There are following types of storage locations in which the material is stored.

1. WIP - Work in progress. This type of storage location will store the material
that is to be transferred for next process.
2. Finished - This type of storage location will store material which has passed
all the stages of production and is now ready to be delivered.

PP CYCLE: Every time a new material is to be manufactured certain steps are followed like
'material creation' which will be done at IT department.

1. Create material: Material will be created in SAP mentions all the details about that
material which will include its length, width, thickness and grade etc. Material type will also
have to be entered in the SAP system.

26
2. Route creation: the route that material will follow during the process of production.

3. BOM creation: Bill of material for that material will be created.

Now, there are two types of orders - MTO (Make to order) and MTS (make to stock).
Following PP cycle steps are followed after sales order creation in the case of MTO and
before sales order creation in the case of MTS

1. Creation and release of production order: Production order is made which will specify
production order type, routing, BOM etc.

2. Goods issues of components: Raw material will be issued against the production order
whenever specified in production schedule.

3. Confirmation of production activity: After each work center completes its activities, the
status of that order is updated at the work center.

4. Quality check: After the last work center completes its activities, Quality check of the
material is performed.

5. Goods receipts of the finished goods: After quality check, the material is received at the
storage location. [4]

27
PLANT TRAINING
Hot roll is imported to Sahibabad plant from Tata Steels, Jindal Steels,
other plants of Bhushan Steel etc. This hot roll is used as a raw material in
the plant to produce the galvanized steels finished product. In the process
of making galvanized steel hot roll goes through many processes.

Process flow of CRCA (Cold Roll Closed Annealing)

HR Slitting

In this process the coil is cutted from both sides according to the
customer’s requirement. HR coils’ breadth is maintained by this
process. To cut HR coils blades of specific thickness are used and
their thickness is checked regularly.

As the thickness goes beyond the accepted level blades are

changed.

Pickling

It is the first step of production. HR coils get rusted from the time
they are manufactured to the time they enter the plant for further
production process. So first rust is removed. This process of
removing rust is called Pickling. It is necessary to remove rust
completely because even if little rust is left it would decay the steel
from that area very easily. In pickling roll is treated with HCl
solution of three different concentrations in three different tanks.
After the treatment of roll with HCl solution roll is washed with water
thoroughly to remove HCl solution from its surface completely and
then it is dried. Due to pickling thickness of HR coil is reduced
slightly. [12]

Rolling

In the process of rolling the thickness of CR coil is made according

to the customer’s specifications. Coil is passed through the rollers
and high pressure is applied to the roll. Due to heavy weight of
rollers and high pressure applied to the coil it stretches and the
thickness is reduced. In this process ductility of coil is reduced and

28
 heat is also produced. To bring down the increased temperature
coolants are used. Output of this process is CR coil.

Electro Cleaning Line

In ECL CR is passed through the solution of sodium ortho silicate. By

passing the roll through this solution all unwanted particles from the
surface of the coil are removed. In the process of rolling when
coolants are used their particles stick to the surface of coil. So to
remove them coil is passed through the Sodium ortho silicate
solution.

Annealing

Annealing is a process in which properties of a material are changed

by heating. In this process the metal is heated above a certain
temperature so as to induce re-crystallization which in turn affects
the properties of the metal. It is done to induce ductility, soften the
material. For annealing process coil is is heated in vacuumed
chambers using hydrogen gas. Coil is heated from room
temperature to very high temperature gradually. This high
temperature removes defects from the metal and causes it to re-
crystallize. Then again coil is cooled gradually. [13]

Kathabar (Cooling)

After annealing coil is cooled using air and water both one by one.
First coil is cooled using air and then water is used to bring the coil
temperature to room temperature. After that coil is dried in
furnaces. This is done so that rusting cannot be caused by moisture
in the air. Air is passed in the furnaces after removing all the
moisture from it. Each coil is cooled for 30 hours atleast.

Skin pass:

Skin pass is used to produce smooth surface, uniform thickness and

also to break the spangles in galvanized steel. Galvanization is the
process of coating steel, iron or aluminum with thin zinc layer. To

29
 coat metal with zinc metal is passed from molten bath of zinc at a
temperature near about 450 c.

CR slitting:

It is the same process as HR slitting. Coil is cut from sides to

maintain breadth.

Cut to length:

In this step CR coil is cut into sheets according to customer’s

requirement.

Picking and Packing

This is the final step in which the finished good is packed and
transported to the customer as per the conditions already decided when
the order was received. [4]

30
CONCLUSION

With the growing network of processes and systems, the need for efficient
management support systems is also increasing. However for this it is not enough to
place a company strategically and give guidelines for its further development. Instead
it is essential to have real time analysis and graphical visualization of the key
performance indicators. In SAP automatic assimilation and analysis of information is
possible. SAP gives a holistic view of the company by considering both the financial
data and non- financial assets of the company. As corporate planning is often not done
in one common planning tool (e.g. turnover plan in a sales system and cost center plan
in excel) studying interdependencies and coordination among them has become even
more tedious. Thus the strategic management system must establish a planning
process through all levels of planning in the company to make the data available for
all responsible persons in one system. With SAP it is possible to upload data of
different planning tools, manipulate planning data and write back changed data to the
operational system. SAP can also be used as early warning system to inform the
responsible persons about critical indicators on the basis of already defined thresholds
of these indicators.

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 REFERENCES

1. http://www.bhushan-group.org/about.asp

2. http://www.bhushan-group.org/vision.asp

3. http://en.wikipedia.org/wiki/Enterprise_resource_planning

4. Text and lessons provided by Bhushan Steel Limited.

5. http://en.wikipedia.org/wiki/SAP_R/3

6. SAP R/3 handbook by Jose Antonio Hernandez

7. http://help.sap.com/printdocu/core/print46c/en/data/pdf/LOMDMM/LOMDMM.p
df

8. http://help.sap.com/saphelp_media471/helpdata/en/75/ee0b1c55c811d189900000e
8322d00/content.htm

9. http://www.thespot4sap.com/introto/sap_fi_module_introduction.asp

10. http://www.thespot4sap.com/introto/sap_co_module_introduction.asp

11. http://www.thespot4sap.com/articles/SAP-SD.asp

12. http://en.wikipedia.org/wiki/Pickling_(metal)

13. http://en.wikipedia.org/wiki/Annealing_(metallurgy)

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