Measure the variable unit cost per ton.
See in relevant sections for a definition of those 2 elements.
In EUR or legal entity currency
Calculation formula in the EXCEL spreadsheet
The full variable cost includes Upstream CNP & Depreciation.
FULL VARIABLE COST = CP at origin ("pure CP") + CNP Upstream + DEP Upstream
Measure the total variable cost per Value Stream.
The VS variable costs are composed by the variable costs elements from RCS which are:
The variable costs are coming from the process orders or purchase orders (MM tolling) of the materials produced in the VS:
The consumption are obtained from:
The prices are obtained from:
In order to obtain the more accurate actual costs and therefore the minimum variance, the following key principles must be applied:
The full variable cost includes Upstream CNP & Depreciation.
FULL VARIABLE COST = CP at origin ("pure CP") + CNP Upstream + DEP Upstream
Measure the non-proportional costs of the value Stream
Fixed costs from direct production costs centers, with possible allocation to several Value Streams.
The actual CNP are identified through a cost element belonging to the element group ZRCS-AC (highest level in CNP element hierarchy).
The direct production costs centers are defined in the FUNCT0 hierarchy of the controlling area according to RHODIA costing rules.
In EUR or legal entity currency
The sites direct production costs centers are labeled or not "multivs":
Allocation key calculation:
The fixed costs distribution per VS is based on the absorption by the materials produced (process orders). The reference is the cumulated end of period cost centers amount per VS (total costs x % allocated to VS).
The monthly amount allocated to the VS is equal to the difference between last month cumulated amount vs. current month cumulated amount.
Measure the fixed costs absorption
Fixed costs are absorbed through:
In EUR or legal entity currency
The absorbed actual CNP are identified through a cost element belonging to the element group ZRCS-ABCNP.
Same calculation as for fixed costs with same VS allocation key.
Measure the depreciation associated to the Value Stream
The depreciation costs (AMO) are identified through a cost element belonging to the element group ZRCS-ACAMO (highest level in AMO element hierarchy).
In EUR or legal entity currency
Same calculation as for fixed costs with same VS allocation key.
Measure the absorption of the depreciation associated to the Value Stream
The absorbed depreciation (AMO) are identified through a cost element belonging to the element group ZRCS-ACAMO (highest level in AMO element hierarchy).
In EUR or legal entity currency
Same calculation as for fixed costs with same allocation key.
Measure the manufacturing costs
Manufacturing costs = variable costs - Full + fixed costs + depreciation
In EUR or legal entity currency
Calculation formula in EXCEL spreadsheet
Measure the delivery costs to the final customer from the manufacturing site.
Amount of the relevant freight cost issued with the order (to final or to distribution center). In EUR or legal entity currency
The allocation of freight costs to the relevant VS is made through the articles associated to the freight order (all distribution costs not included in freight order are not taken into account in the current calculation).
The transfer orders from RHODIA to RHODIA are not considered (as the corresponding amount is included in the CP of the relevant plant)
The detailed analysis is to be done in BW TRANSPORT.
To be added : transport types taken into account.
Measure the delivered product costs
Delivered costs = Manufacturing costs + freight costs
In EUR or legal entity currency
EXCEL Spreadsheet
Measure the tonnage produced by the Value Stream.
The Value Stream production is the total amount of all its constituent articles produced minus what is consumed inside the VS (which is called "neutralization of the productions at the VS perimeter).
By default, all the articles for which there are production movements (including sub-product, waste) are taken into account to calculate total volume produced by the VS.
If some of them should not be considered in this ratio, they need to be marked specifically (in BW) to be excluded from the calculation base.
A User Request must be created by the relevant site key user.
Based on inventory movements linked to process orders.
See detailed calculation in Appendix 3.
Detailed analysis is to be done with the workbook "BW – Production by material" in "BW – Monitoring value stream" ("End user analysis" folder).
This document is an example of the neutralization process and is not representative of all movement codes.
Need to add neutralisation document
measure the unit manufacturing cost per ton of the VS mix.
Unit Manufacturing cost = Manufacturing costs / Production
In EUR / Ton or legal entity currency / Ton
EXCEL Spreadsheet.
Measure the unit delivered cost per ton of the VS mix.
UDC = Delivered costs / Production
In EUR / Ton or legal entity currency / Ton
EXCEL spreadsheet.
Objective
Measure the productivity improvement in terms of unit manufacturing cost.
IPROD* is the current Month Unit Manufacturing Cost divided by last year Unit Manufacturing Cost.
Monthly calculation
YTD calculation 
Where 
Excel formula in level 2 datasheet
IPROD < 100% is positive (unit manufacturing cost has decreased).
Measure savings of productivity program in terms of manufacturing costs.
Difference of Unit Manufacturing Costs between last year and current month.
Monthly GAINPROD = (Last year Unit Manufacturing Cost - Current Month unit Manufacturing Cost) x Production of the Month
Unit Manufacturing Cost = (Fixed Cost + Variable Cost + Depreciation) / Volume
Yearly GAINPROD = (Last year Unit Manufacturing Cost - Current YTD Unit Manufacturing Cost) x (Current YTD Volume)
= Sum of monthly GAINPROD
Unit Manufacturing Cost YTD = (Fixed Cost YTD + Variable Cost YTD + Depreciation YTD) / Volume YTD
Calculation formula in excel spreadsheet at level 2.
Fixed Cost + Variable Cost + Depreciation & volume are defined in the herein relevant sections.
Measure the valuated stock of the VS
Valuated stock: Last day of the month accounting value.
The stock material valuation is the same as in RCS, it is measured at the end of the period (last day of the month at 24h) including updates made until the uploading date (D+10). Updates, if any, after D+10, will be taken into account for the considered month at next upload (at each upload, all the previous months are updated).
The valuated stock of a Value Stream is the total valuation of its constituent articled (through the profit centers) on all the controlling areas.
Sum of each articles value.
The level 4 of the stock is taken from the JNI dashboard allocated to the relevant VS, except the "achieved" line which is identical to the level 2 one.
See the OEE & JNI Value Stream dashboard upload process.
The stock value for a given plant is equal to the sum of all this plant's Value Stream stock amount for the same articles perimeter.
Nevertheless, because Value Stream can also include allocated articles from other divisions, the total stock value of a given VS can be superior to its relevant plant total one.
Measure the degree of dissatisfaction expressed by customers.
Number of customer complaints per 1000 deliveries. Notes:
in a given period of time
The complaints are extracted from SMART CORE tool.
The complaints are assigned to the relevant VS through the couple plant x material code, as mentioned in the complaints. The number of monthly deliveries is obtained from the Business Objects Premier Sales application.
Identify and evaluate:
Value, expressed as a percentage, measuring for a given period (month) gaps between sales forecasts and registered orders.
FA calculation is made in APO at the VS perimeter. Only the monthly percentage value is uploaded in the dashboard.
Assumptions : For both FA & FA:*
FA
The forecast figures are the ones from the sales collaborative forecast from SMART.
FA*
The forecast figures are the ones from POST SOIP COMMITED PLAN in APO DP.
The detailed analysis of the FA / FA* ratios is to be done in BW APO, thanks to the query "ZRCS_FA_VALUE_STREAM_CORE".
Measure the delivery performance with respect to customer demand and engagement of Rhodia.
Proportion of deliveries from Rhodia received by customer with the confirmed quantity and quality, at the confirmed date and time.
in a given period of time;
With:
The calculations detailed above are applied with the following criteria:
ZL3;G2;ZG3;ZG2;L2;ZL2;B4;B3;B2;ZL4;ZG4;B1;RE;KA;KR;REB;ROB;ZDAG;ZFAC;ZKA;ZRAG;ZREB;ZROB
The OTIF-C results per value stream and material are extracted from BO Sales (CORE application). A monthly table, read by BW, is generated with the number of delivery OTIF and non OTIF by article.
The calculation at VS perimeter is done through the matching of each article to a VS.
Measure the delivery performance of our suppliers.
Proportion of deliveries from suppliers received by Rhodia with the requested quantity and quality, at the requested date and time
in a given period of time
The calculation is done in the purchasing CORE application GSV.
The deliveries considered are the one attached to an article matched to a VS. Consequently, the deliveries corresponding to purchasing orders on costs centers & on projects are excluded.
The detailed analysis is to be done in GSV.
The following types of Purchase orders are not taken into account in order to have a reliable ratio:
Only standard vendors are considered, as in GSV Cores queries (Info object 0ACCNT_GRPV <> Z010, supplier characteristics C_VENDOR)
Measure the internal respect of production schedules achieved during scheduling.
Value in percentage measuring, for a given period (month), gaps between scheduled production and actual production.
A schedule:
SA by week and work center
SA by month and Value Stream
Where:
Exclusion code : changes realized on the schedules are ranked into 4 families :
Weekly Production is calculated from Monday 0h to Sunday 24h.
In particular, production of the week-end has to be declared with a posting date included in the WE.
See following item (extract from documentation PP_019).
Measure the effective use of working capital (also an indicator of the efficiency of a combination of several core processes).
Inventory turns is the ratio of "annualized cost of goods sold", to the value of "total inventory on hand" for the current month. The ratio is measured in annual frequency ("X times per year")
It can be expressed in annual frequency ("x times per year").
Annualized cost of goods sold is calculated every month: monthly value x 12.
Formula of YTD Turn to be added
Measure the technical performance and capacity utilization of a manufacturing asset and hence to judge the effectiveness with which an asset is being used to add value. It allows the analysis of all the sources of capacity losses, whatever their origin may be.
Overall Equipment Effectiveness is the ratio of actual good production (on grade products) over the production that could have been achieved in the same time period.
Comment: This hypothesis could lead to daily OEE > 100% (for example, at the beginning of the batch, when the catalyst has just been changed). However, this methodology should be used to avoid weak OEE by using a MDC reference that can only be reached 1 or 2 days over a period of N days.
Sum of proportional part of the MDC of each monoproduct. Proportional part is the fraction of the day (theoretical time) allocated to the production of the monoproduct.
Example: 8/24 on product A, 10/24 on product B, 6/24 on product C. The MDC of A-B-C mix is equal to: MDC(A)*8/24+MDC(B)*10/24+MDC(C)*6/24.
in the same given period of time
in the same given period of time and with following definitions:
3 Family | 6 production losses types | Quantity | Time |
Availability | 1. External causes stoppages: lack of sales, lack of supplies due to suppliers or carriers' failures (material and energy), force majeure, general strike (i.e. not specific to the site like national strike). | Q1 | t1 |
| 2. Planned Maintenance and annual shutdowns. | Q2 | t2 |
| 3. Intercampaign changeovers1 | Q3 | t3 |
| 4. Breakdowns | Q4 | t4 |
Performance | 5. Process / Operations2: low speed / cycle time not respected, lack of supplies due to internal failures (missing orders, wrong planning…), local strike (i.e. specific to the site or to the workshop) | Q5 | t5 |
Quality3 | 6. Quality : scrap, and non-sellable without rework or recycling product | Q6 | t6 |
It is equivalent to:
in the same given period of time.
OEE can be broken into three factors:
OEE = AVAILIBILITY x PERFORMANCE x QUALITY x 100 %
with
Need to add link to OEE recommendation page
Measure the performance of a Value Stream through the consumption of raw materials and utilities.
Ratio of best performance of raw material and utility usage (in currency) for a process compared to actual raw material and utility usage (in currency) for the same process.
In the same given period.
Where :
cus i, j = standard specific unit consumption of raw material and utility j to produce one ton of finished good i (units of j / ton of i).
cur i, j = actual specific unit consumption of raw material and utility j to produce one ton of finished good i (units of j / ton of i).
pricej = unit price of raw material and utility j (€/unit of j).
Ti = tons of finished good i (tons of i)
Utilities = steam, gas, nitrogen, water & electricity (RCS cost element 120)
in the same given period of time
The Standard specific unit consumption is the minimum consumption achieved = historical monthly best performance for each raw material or utility. The historical period starts in Jan 2007, or the first month in RCS if the RCS Go Live occurred after Jan 2007. If a material is not consumed during one month (i.e. in case of optional components or raw mat substitution), it does have an impact on its best performance consumption.
In case of a new built process, we can use theoretical consumption given by the supplier or the developer. This must be done by manual calculation
Measure the first time conform rate of a production entity.
Percentage of first time conform produced tons over total produced tons.
RCS model don't allow RFT calculation for the time being.
Objective:
The objective is to allocate the actual fixed costs to the VS. In case, the cost center is "multiVS", the fixed costs are distributed by VS pro-rated to the absorbed costs.
Hypothesis:
In order to smooth the seasonality & production shutdowns effect, the monthly fixed costs are calculated by comparing the end of period cumulated amount of current month vs. previous month.
There are 4 types of fixed costs:
The accounting elements groups are available in the ZRCS-FC hierarchy
6 types of cost to be collected:
The actual CNP corresponds to CO documents with a cost element from the element groups ZRCS-AC. They are taken from the ODS_CCA9.
The absorbed CNP corresponds to CO documents with a cost element from the element groups ZRCS-ABCNP. The article x division available in the production order of this document is used to identify the VS corresponding to those absorbed CNP.
In some cases, the article is not available in this type of CO document but there is another cost center or an OTP.
The allocation key calculation is based on the VS absorption
For multi VS cost centers, the costs are allocated to the different VS through the actual costs distribution key based on the CNP absorption.
The actual depreciation (AMO) corresponds to CO documents with a cost element from the element groups ZRCS-ACAMO. They are taken from the ODS_CCA9.
The absorbed depreciation (AMO) corresponds to CO documents with a cost element from the element groups ZRCS-ACAMO. The article x division available in the production order of this document is used to identify the VS corresponding to those absorbed AMO.
In some cases, the article is not available in this type of CO document but there is another cost center or an OTP.
The allocation key calculation is based on the VS absorption
Group of cost element:
We need to have 2 characteristics "group of fixed costs elements" to calculate the fixed costs :
Stages of loading:
1/ Extraction from ODS_CCA9 to ODS_CCVS => Load key + CNP actual + CNP absorbed + DEP actual + DEP absorbed. (Update rule between ODS_CCA9 and ODS_CCVS).
We take into account in the ODS only monthly data with cost element belonging to fixed cost cost element group.
2/ Extraction from CUB_CCA02 to ODS_CCVS => Load key + CNP Target + DEP Target. (Update rule between CUB_CCA02 and ODS_CCVS)
We take into account in the ODS only monthly data with cost element belonging to fixed cost cost element group, and type of data (0VTYPE) = 30 (target).
3/ Calculation within this ODS_CCVS of actual CNP for the VS (in proportion to the absorbed CNP) and the actual DEP for VS. (Update rule between ODS_CCVS and itself) The key is based on the cumulated amounts from the beginning of the year until the current period. That key, calculated on actual data, is used for target and actual data.
4/ Extraction from ODS_CCVS to ODS target for Value Streams _CCVS => Load key + CNP Target + DEP Target. (Update rule between CUB_CCA02 and ODS_CCVS)
We calculate monthly amount by the difference (total cumulated amount of the year minus previous total cumulated previous amount)
Objective :
The target is to split actual variable costs between each value stream. Variable costs are made up of several elements detailed below.
All CP elements coming from a "Z100" process order are not taken into account (info object in BW 0COORD_TYPE=Z100 for the process order); the CP individual line isn't taken into account.
Non proportional Costs of a VS:
They are coming from BW Stocks cube (CUB_IC01).
Algorithm used to define component consumption or production
Movement code selection in ODS Stock movements (BIC/AODS_IC0100) :
Only movement code next :
• 261/262 --> consumption in a process order
• 543/544 --> consumption for sub-contracting
• 531/532 --> production of by-product or co-product
• 101/102 --> delivery in stock from a process order or a client order
Filter done on C_MAT <> empty (material is mandatory)
Filter done on stock movements: only those linked to a process order or a sub contracting order (purchase item category = 3)
Movement codes 101/102, 261/262, 543/544 & 531/532 are associated with a VS with either:
Movements 531/532 (co-product) are associated with the Value Stream of the Profit Center of the material of the stock movement. Co-products are defined (MRP1 vue in material master data).
To define the consumptions of a VS, an algorithm is running on all the movements linked to it.
The algorithm is precised below.
Definition: We name "VS produced material" a material that will be select in Value stream production calculation (see appendix 3).
This list "VS produced material" is a subset of the "regular" material that are included in VS production. These "regular" material have one of the following property:
Filter done to exclude some movements:
Comment : for the production of the VS, the movements are these which are not consumption movements :
In theory, all the selected stock movements should be classified in 2 categories : consumption or production.
Consumption mvts codes for MM sub-contracting (543/544) : we exclude mvts for material type =ZHIB (general expenditures), ZERS (industrial supplies), and ZGEN (purchasing generic code): these lignes will not be in proportional costs in the dashboard.
Consumptions for activities come from production costs BW cubes (CUB_PC001 & CUB_PC002). There is a filter on component cost group (0CCOMPGRP_1 = 1) and activity type (0ACTTYPE <> empty).
There is also a filter on « reporting value type » (0VTYPE) in order to have actual and forecast data.
MM & PP Subcontracting: The rest is Proportional costs for services.
These amounts will be extracted from purchasing orders ODS (ODS_SCL1) because these lines are subcontracting services.
Purchasing orders have a item category = subcontracting (0ITEM_CATEG = 3).
The amount for each item will be calculated with the following rules :
Each line linked to a sub-contracting purchasing order is stored with category "MM production subcontracting" or "PP production subcontracting".
"Pure proportional costs" from CCR
For each movement linked to production calculation, we take only the part (cost component group = CP (0CCOMPGRP_1 = ?) of material in CCR.
CNP & AMO of upstream stages:
Movements for intermediate produced materials (101/102) or by products (531/532) which are consumed in the same value stream will lead to minus Proportional costs.
these materials have a special procurement type = « U » (transfer) and providing plant is in the same legal entity.
To find special procurement type, we look first CCR 1 view and if not found in a second time MRP2 view.
« Pure Proportional costs » worked out
= CP from VS – CNP & DEP upstream stages
Functional description
The purpose of this FFS is to describe how to calculate key figures for production, in B/W at Value Stream level
In the first part, we will describe how to identify material that should be taken into account in the calculation of neutralized key figures for production, in B/W at Value Stream level.
In a second step, we will describe the rules production/consumption neutralisation at value stream level.
Definition: We name "VS produced material" a material that will be select in Value stream production calculation.
This list "VS produced material" is a subset of the "regular" material that are included in VS production. These "regular" material have one of the following property:
A transaction in BW will enable to mark the "irregular" material. Need to be excluded from this list.
This transaction is only available for Corporate Manufacturing Department.
This transaction updates a master data:
Characteristic: C_EXCLVS
Description: Material excluded for VS production.
This master data have an attribute:
Characteristic: C_EXCVSF
Description: Flag: exclude from Value Stream Production
This attribute is updated in the master data Material Plant (C_MATPLNT).
Production key figures calculation in B/W
Neutralisation at value stream level
The purpose of neutralisation is to discount from production/consumption key figures, the movement in which component and produced material belong to the same Value Stream
We will calculate a key figure : K_CONSNEU_VS = VS Neutralised consumption
Calculation is as follow :
Neutralized key figure | Condition | Description (FR) | Description (EN) |
K_CONSNEU_VS = K_MOVEQTY | C_MOVETYP = (261/262/543/544) | Consommation neutralisée réelle VS | Actual VS Neutralized consumption |
Where:
Production key figures to calculate
We will calculate the following key figures, for VS production
The key figure which are in Blue, already exist in the structure "Movement type query - STR_MPR_IC001_0002
The key figures in black, should be added to the structure STR_MPR_IC001_0002 , in order to be able to have the same results in the Core Stock movement query.
For all the key figures below, the restriction for the materials should be:
And
And
For the Helpdesk: Technical documentation of the FA calculated in APO.
Every 5th of each month, the FA is calculated into APO at material x plant level.
At this stage, it is not yet published to the dashboard.
Every 8th of each month, at 03:00, the result of this calculation is transferred into APO into the ZRCS_FA cube which is the cube sourced by BW dashboard.
1- To check if the calculation of the 5th was successful, log into APO WAP.
T-code : ZWFP01
Variant : ZRCS_MONTHLY
There is one process chain per enterprise.
Check that the following process chains are green:
2- To check if the calculation of the 5th was successful, log into APO WAP. T-code : ZWFP01
Variant : ZRCS_MONTHLY - Check that the process chain ZRCS_KPI_WCM_FA is green.
TURN = TURN - Consumption for production + TURN - External Sales + TURN - Sales consignment + TURN - Sales Inter company + TURN - Sales inter plant + TURN - Other issues.
1 - TURN - Consumption for production: Calculated on movement codes 261, 262, 543, 544.
2 - TURN - External Sales: Calculated on movement codes 601, 602, 453, 454.
3 - TURN - Sales Consignment:
Calculated on movement codes 633, 634.
4 - TURN - Sales Inter Company: Calculated on movement codes 643, 644, 645, 646, 675, 676, 673, 674 .
We have to include only movements where the value streams are differents (origin and destination).
Value stream are being compared between 2 plants
We have to include only movements where the value streams are differents (origin and destination).
Comparison between 2 value streams with same process than for TURN - Sales inter company. If Value Streams are not the same the movement amount is allocated to this indicator.
6 - TURN Other Issues: Calculated on movement codes from 551 to 556, 201, 202, 309, 310.
If the Value Stream of the movement article (Article C_MATNR, plant 0PLANT – Search Value Stream on /BIC/PC_MATPLNT) is different from the Value Stream of the movement profit center (profit center 0PROFIT_CTR and analytical perimeter 0CO_AREA – Read the Value Stream on /BI0/PPROFIT_CTR) , the movement is allocated to this indicator.
Movement amount is from info object 0CPPVLC.