S there any Utility industry company is using PP-production planning & exec

Question

ear All,
Is there any Utility industry company is using PP-production planning & execution module and CO-PC product costing module ??
Meaning.. any Power generation/Transmission/distribution or water production/Transmission/distribution company is using SAP PP or APO for their operation business processes.
Our client is actually an integrated Utility having very much integrated product lines like Processed Sea water for cooling, Process water for Industries, Potable water & Power for the communities/ industries.
Please let me know.. as we are planning to implement the PP and CO-PC for product costig..
As I know Tata chemical, Gujarat-India is using SAP PP module for their captive Power generation.(I have worked there as SAP CO consultant). But there is no transmission and distribution as such.
But production processes are covered by PP and product costing CO-PC is also implemented and it is giving very accurate cost per unit both for plan side and actual side.
regards,
George

Answer 1

Hello George,
I would not be able to provide you much detail about the PP solution as I was taking care of the controlling part. The BOM of power and water were defined as you have mentioned only thing we had additionally was Gas was also mentioned in the BOM since we had 6 gas turbines. But all of them were mentioned as not relevant for costing. So there was no cost being calculated from the material side. We had formula planning template (CPT1) that used to calculate the costs under the following heads which were defined as activity types.
a) Gas
b) Employee Costs
c) Consumables / Supplies
d) Operating Expenses
e) Depreciation
These components were planned at a initial price in KP26 and the quantity for them (except Gas) was units of power generated (for cost component it was 1 MW and for actual based on the quanity in the product cost collector). Power cost estimate used to be created at the begining of each period with help of this template and per MW cost was used in valuating the power generation in each of the product cost collectors (the turbines were defined as separate work centers as well as product cost collectors).
In the actual execution the power material used to be generated in all the product cost collectors and the usage of gas was confirmed. The template used to be executed in the month end (CPTA) and the same would allocate the costs posted in the power generation cost center to the product cost collectors (the amount would be the power units generated multiplied by the rate mentioned in KP26 for Employee Costs, depreciation etc. and for gas it would be Gas units consumed multiplied by the rate mentioned in KP26 for activity Gas). The power material generated would then be issued to the generation cost center along with the usage of gas for power as well. The next step is execution of the splitting transaction which would allocate the amount posted in the cost center to the various activities and then the actual price calculation would be carried out for the activities and the product cost collectors get revalued with the actual price. Upon settlement of the product cost collector to the generation cost center you would have the power material issue cost + settlement account. The amounts posted in these two accounts would be transferred to the water cost center using a assessment cycle with SKF that mentions the usage of water in power and another assessment cycle taking the costs in water cost center with help of SFK that quantifies usage of water in power. Now the power material cost + settlement amount - sent to water + received from water is sent to another cost center called power - distribution and from there the amounts including any distribution costs booked therein is transferred to other user cost centers using usage units defined as SKF.
What I feel later is the water activity could have been done before settlement and an activity type could have been defined for that purpose.
At the moment I can remember this much and would be happy to answer any more query which you may have. That was a good design though it had lot of scope for fine tuning.
Kind Regards // Shaubhik