SAP Solution for Mini steel plant with DRI Process

Question

Dear all,
I am a metallurgist who spent couple of years in steel and process Industry and then moved to IT Consulting as SAP consultant / business analyst mainly working in the area of solution designing.
Here i will like to describe SAP solution for Mini steel plant with DRI proces.
u201CManufacture Productsu201D Description
The series of operations performed upon material to convert it from the raw material or a semifinished state to a state of further completion. This includes the establishment and maintenance of a CAPEX plan, the planning, scheduling and execution of production activities, the dispositioning of produced goods, the maintenance of production data, the monitoring of production performance and the implementation of engineering changes.
u201CManufacture Productsu201D Objectives
M-010
Compile 3-year CAPEX Budget     Establish the overall manufacturing goals and metrics that the organization will use to measure performance and progress towards objectives. These goals should be consistent with overall organizational strategy/value propositions. Develop long-term goals for production capabilities and manufacturing. These goals should align with the overall goals and objectives of the organization.
M-050
Perform Long Range Production Planning     u201CBudgetingu201D. Long range planning of production quantities based on planned available capacities and known or estimated customer demands. This process may include planning for different capacity and/or demand scenarios. Approved capital expenditures from the 3-year CAPEX budget may influence the budget. Range and frequency for budgeting is yearly.
M-060
Perform Medium Range Production Planning     Medium range planning of production quantities based on planned available capacities and known or estimated customer demands. This process may include planning for different capacity and/or demand scenarios.  Range and frequency for planning is quarterly.
M-070
Perform Short Range Production Planning     Short term planning of production quantities based on capacities and demands as previously planned in the longer terms, actual customer demand and actual capacities. The result from short range production planning will run into the operational plan for the current and following days.  Range and frequency for planning is monthly.
M-080
Schedule Production     This sub-process enables detailed scheduling by resources over the planning horizon. Planned orders that fulfill demands (Stock Transfer Requisitions, Sales Forecasts and Customer Orders defined by due-dates and due-quantities) come from the short range plan. This results in a feasible schedule, optimizing utilization of the production resources. It is based on production process constraints as well as labor resources in order to minimize production costs and also taking into account constraining raw materials availability.
M-090
Execute MRP     The purpose of this sub-process is to generate a Materials Requirements Plan (MRP) for all materials, which are produced or purchased. The MRP process involves looking at current material inventory, planned inbound material deliveries, requirements, lead times and stock levels to generate a detailed plan for future material requirements. The materials requirements will be generated with respect to the three planning horizons, short-term, medium-term, and long term. If an over stock of raw materials occurs as a result of a planning change production and marketing personnel will be informed. This would allow for the cancellations of any unneeded shipments.
M-100
Perform Setup / Changeover     Perform set-up and changeover activities on production equipment as necessary, to prepare for the production of specific materials/grades. Set-up and changeover activities will enable the production equipment to perform operations on materials, as per the specifications called out on the production order. Ensure time is allocated for first off inspection requirements after changeover.
M-110
Execute Production     Insure that the production plan is met by converting raw materials and component supplies into finished and semi-finished products. Batch/lot documentation will be created for individual production orders to provide traceability throughout the process. Each step of the production process is continuously monitored to identify mechanical, quality, and productivity issues and suggest solutions when problems arise. Data collection for performance and financial reporting enables management to take immediate action on manufacturing processes as well as conduct historical analysis.
M-120
Perform Quality Management     Quality management refers to the entire supply chain process. Process activities are related to the evaluation and inspection of key characteristics of semi-finished and finished materials. These evaluations are recorded and acted on based on the results. Report/manage internal quality problems or issues. Install and manage quality control systems to insure product quality. For supplier or subcontractor based issues this data should be used as a performance measure during the vendor evaluation process.
M-130
Manage Product Disposition     This process ensures those semi-finished and finished products that do not meet quality requirements, are prevented from being used and distributed in good finished product to customer, or released for the next step of the production process. A semi finished product is any material that needs to have another operation on line before being shipped to the customer. Finished goods are defined as any material that can be shipped to a customer; in house produced finished goods, subcontracted materials and trading goods. The information required to make decisions regarding disposition comes from the Quality Management system of each production facility. The first step ensures that raw material and returnable goods are dealt with in another subprocess. The reason for the goods not meeting quality standards is recorded along with the results of any investigation to find the cause of the fault. Information is sent to all other parties who need to know: order fulfillment, inventory management and shipping. The process ensures that the most appropriate action is taken to either dispose of, or rework the goods. Disposal or rework may be either through the original materials supplier or subcontractor, or Mittal Steel Point Lisas.
M-140
Maintain Product Related Data     u201CMaterial Master Maintenanceu201D. The Sub-Process 'Maintain Product Related Data' is the list of activities that identify the steps and decision points related to the request for and performance of additions, changes, and deletions to the Material Master file or files. This sub-process begins when a need to create, change or delete a material is identified and ends when the request is either actioned or refused. The sub-process is intended to cover all material types, including finished goods, raw materials, bills of materials, equipment and service, POS, Sundry Items etc. In fact, any product which the company wishes to inventory or purchase. A number of key strategic decisions, including a clear definition of when we issue a new material, will affect this sub-process.
M-150
Maintain Production Related Data     u201CMaster Data Maintenanceu201D. This subprocess identifies the activities related to requesting changes or additions to production related master data. Once a need for master data maintenance is identified, a request is submitted for approval. Data defining production capacities and performance standards (e.g. line efficiencies, material yields, etc.) require Corporate level approval prior to maintenance. Other data that is more specific to internal planning functions are maintained at the plant level. Maintenance requests are returned to the originator whether the request is approved or not to improve communication throughout the system. This subprocess may be triggered by: annual operations budgeting process process/production equipment upgrade or replacement change in facility work schedule (i.e. planned hours or days) change in personnel required to operate process/production equipment new products, formulations, or packaging.
M-160
Operations Execution Reporting     Gather manufacturing information at various points in the production process. Prepare management reports both at the detailed level for plant management and summary level for senior operations management. Reports will be available on-demand and will include - volume, efficiencies (mechanical, line, and labor), yields, downtime, asset utilization, environmental, safety, quality, and financial data. A major goal of this sub-process is to define a consistent method of calculating operations metrics. Some plants will use line information systems and PCSs to collect information. Not all plants are equipped with these systems and the where they do exist, the level of sophistication varies.
M-170
Manage Process Reliability     Optimize capacity by reducing process downtime and ensuring compliance to quality expectations by the reduction of rejects. Install tracking systems to measure line time utilization, quality results, process settings. Conduct root cause analysis, and use the data to develop and implement improved operating procedures.

Answer 1

Thank you for your prompt response. I'm assuming you are still proposing to use Sales order -> purchase order -> invoice verification -> Customer billing process flow. Is that correct?