Tieto - SAP Papersolution: Seamless integration of SAP and TIPS for planning and execution

Most of the companies in the pulp and paper industry use multiple systems to encompass business administration, planning and production execution functions. Usually, interfaces are often tailor-made which may cause problems with data integrity, reliability and maintenance. Business processes are performed by using SAP, core processes like finance, controlling, purchasing and HR are typically performed by using an ERP system. Production processes are managed by a Manufacturing Execution System (MES). For areas like planning and dispatching both ERP and MES solutions may be applicable.

The main design principle of Tieto(Enator) Integrated Pulp and Paper Solution (TIPS) is to improve the efficiency and profitability of pulp & paper customers with the help of modern information technology and the most advanced functions. TIPS applications include budgeting, order entry, production, process and quality management integrated into mill-level reporting.

Customer benefits from TIPS are reduced manual work, resulting in more accurate information and fewer errors, increased warehouse capacity, improved production and shipment planning operations resulting in accurate production and deliveries, optimised machine utilisation, augmentation of productivity resulting in reduced costs and an improved cash flow. In addition, there will be less demand for manpower and more reliable environment monitoring. Another benefit is the efficient handling of claims and service which results in improved customer satisfaction. The reporting systems are comprehensive and reliable industry-specific reporting systems, providing accurate information and supporting the development of the mill’s business processes.

In cooperation with the SAP AG, Tieto has developed five solution scenarios, which propose to the market the optimum of possible integration solutions of SAP and MES modules.

he three most important possible solutions are tailor-made for different needs and customers.

  • Papersolution map 1: SAP ERP with SCM (Supply Chain Management) for planning and TIPS MES
  • Papersolution map 2: SAP ERP with SAP SCM / TIPS Plan and TIPS MES
  • Papersolution map 3: SAP ERP with TIPS Plan for planning and TIPS MES

By selecting one of the suitable solution scenarios, ERP and TIPS implementation provides a robust and easy-to-operate system.

Each solution scenario describes a clear functional split between SAP and TIPS, as well as standard interfaces for the most suitable adaptation to the business processes. The solution scenarios offer increased value for the commonly used pulp and paper applications.

Papersolution map 1 is suitable for large companies with a central ownership of sales and planning where there is a demand for central forecasting and supply chain optimization. The company should ideally also produce one product in more than one mill and have a harmonized offering handled from different mills to benefit the most from this solution.

The business activities are mainly performed in SAP ECC and SAP SCM. Sales orders are entered in SAP SD; ATP and CTP checks are performed online. Delivery date information is read out to customers during the order entry process. Further benefits are central supply chain optimization and forecasting together with an enhanced support to sales and order handling. The company also profits from an expanded process transparency across all lines of business.

Papersolution map 2 is a hybrid between SAP SCM and TIPS Plan for planning. This solution is suitable for medium and large companies with central ownership of sales processes where there is a demand for central forecasting and local mill rough planning. The products are not produced in different mills. Block planning and assignment of sales orders is done in TIPS separately for each mill. The planned orders are grouped and transferred to a trimming algorithm which then creates Trim roll orders and sheet orders. The execution of these production orders take place in TIPS Mill. The produced unit items are reported to SAP for warehousing and order fulfillment purposes. This gives a support for central sales and order handling.

Papersolution map 3 works with the planning tool in TIPS and is suitable for small and medium-sized companies, where there is a central ownership of sales. Customers with centralized and decentralized planning can benefit from this solution.

The customer orders are rough and fine planned in TIPS. ATP /CTP checks, block planning, trimming, production control and the creation of units are fully processed by TIPS.

The Papersolution maps are known as the best of breed-solution for paper and cardboard mills and correspond to many of customer -specific needs.

The quality management within Tieto’s Papersolution maps is handled by using the strengths of both ERP and MES systems. A clear definition of business processes and data interfaces helps to manage quality demands, reduce production costs and support quality improvements. This solution can be integrated as quality management to ERP and MES regardless of a company’s planning and execution processes.

In short, the Quality Management works as follows: SAP QM is used for quality planning and inspection planning. The results are transferred to TIPS for execution purposes. TIPS carries out inspection activities and usage decisions according to the plans. SAP manages the calculation of quality costs, the printing of quality certificates, the tracking of inspection lots and inspection samples. For quality improvement purposes operational data is extracted from TIPS and analyzed by SAP.

The added value of this solution is that it offers a wider functionality and process support. The maintenance costs are reduced and the customer receives a maximized return on investment (ROI).

Tieto - SAP Papersolution: Seamless integration of SAP and TIPS for planning and execution
Tieto - SAP Papersolution: Seamless integration of SAP and TIPS for planning and execution