Master S/4 HANA 2020

Business Case | About the YCHEM Group

Europe

N0orth America

YCHEM works on a global scale with

references in all major continents

Technical and Engineering centers in the Asia

US, Austria, Germany, Norway & India.

YCHEM Group’s SBUs Australia

- Fertilizers – Crop & Animal Nutrition

- Emission Control ( SCR )
YCHEM India SBUs
- Technical Grade Ammonium Nitrate
- Emission Control ( SCR )
- Odour Control Solutions
- Technical Grade Ammonium Nitrate
Business Case | About the YCHEM Group
The YCHEM Group
• The YCHEM Group is a Market Leader in the Chemicals & Industrial Product Space across the Globe
• Among others YCHEM caters to the Automotive, Mining, Shipping & Fertilizer Industries
• The Group HQ is situated in New York, USA with offices spread across the Europe, Asia & Australia
• YCHEM India Pvt Ltd is the Indian Arm that addresses the requirements of Automotive & Mining Markets in India

Nature of Operations
• YCHEM is active in 2 main Operations in India - SCR Equipment Manufacturing & TAN Prill Production
• These represent the 2 Main Strategic Business Units of YCHEM in India with Odour Control Solutions waiting in wings !
• The SCR Equipment is manufactured at the Bangalore Facility & TAN Prill Production happens at the Hyderabad Facility
• Both the State-of-the-Art Facilities are spread over 10-acre Industrial lands in respective cities

Operational Centers in India

• The Corporate Office in India is situated at 604, Brigade Street, Bangalore, India - 560009
• YCHEM India has 2 regional offices on each in Bangalore & Hyderabad
• The End Products are currently housed in Depots rented out in both Cities near the Regional Offices
 About the Business | TAN Prills Production

What is TAN ?
• TAN stands for Technical Grade Ammonium Nitrate
• TAN Prills refer to the solidified droplets of concentrated Ammonium Nitrate
• Basically, there are two grades of ammonium nitrate as below :
- Fertilizer Grade Ammonium Nitrate which is virtually non-porous
- Technical Grade Ammonium Nitrate which is made to be porous for better absorption of fuel & higher reactivity
• This technical grade ammonium nitrate, or TAN, is the main raw material for Ammonium Nitrate Fuel Oil – an Industrial Explosive used in Mines

The TAN Production Facility

• The YCHEM Bangalore production facility currently manufactures & supplies TAN
• An Ammonia Plant has been set up next to TAN production facility for supply
• TAN Production facility consists of the following :
- Process plants
- Utilities Area
- Storage Area for finished product
- Bagged Products & Bulk Products
The Technical Details | The TAN Prill Production & Storage Process

The TAN Production Process

• STEP 1 - Combining Oxygen & Ammonia to form Nitric Acid

• STEP 2 - Combining Nitric Acid & Ammonia to form Ammonium Nitrate Solution

• STEP 3 - Concentration of Ammonium Nitrate Solution

• STEP 4 - Processing Ammonium Nitrate Solution to form crystallized / solidified Droplets

• STEP 5 - Drying & Cooling Solidified Droplets - Prills - to form the end-product - TAN

The TAN Prills Storage Process

• 2 Types of Storage Facilities are used for TAN - Bagged Product & Bulk Product Storage

• Product that is to be Bagged is conveyed to an Intermediate TAN Prill Storage Silo

• This provides a buffer between Production & Bagging

• Forklifts are used to transport bagged product to the product storage building

• Bagged product is transported to External Customers using trucks

• Bulk Material is loaded on trucks using Front End Loaders & Bucket Elevators
 About the Business | Emission Control Technology
A. Know the Basics | Nitrogen Oxides – NOx – Adverse Effects
• Nitrogen Oxide is typically a compound made of Oxygen & Nitrogen - or - a mixture of some compounds
• NOx is a generic term for mono-nitrogen oxides (NO and NO2) - these oxides are produced during combustion, especially at high temperatures
• The term NOx is used to mean the total concentration of Nitrogen Oxide - NO & Nitrogen Dioxide - NO2
• NOx reacts with ammonia, moisture and other compounds to form nitric acid vapor and related particles
• These small particles can penetrate deeply into sensitive lung tissue and cause damage
• Hence NOx Reduction or NOx Abatement is critical from a Pollution Control & Legislation points of view

B. What is SCR – Selective Catalytic Reduction ?

• Selective Catalytic Reduction (SCR) is a means of converting Nitrogen Oxides into Nitrogen & Water
• Selective Catalytic Reduction Unit (SCR) is an advanced active emissions control technology system
• This system injects a liquid-reductant agent through a special catalyst into the exhaust stream of a Diesel Engine
• The reductant source is usually automotive-grade urea, otherwise known as Diesel Exhaust Fluid (DEF)
• The DEF sets off a chemical reaction that converts NOx into Nitrogen, Water & tiny amounts of Carbon Dioxide

C. Why is SCR so named ?

• It is called Selective as SCR selectively reduces levels of NOx using Ammonia as a reductant
• Catalytic - as this happens in presence of a Catalyst ( Titanium Oxide )
• The chemical reaction is known as Reduction – where -
- the DEF is the reducing agent that reacts with NOx
- to convert the pollutants into nitrogen, water and tiny amounts of CO2
About the Business | Emission Control Technology – SCR Units
A. Stationary SCR Unit
• Stationary SCR Unit is YCHEM’s product for NOx abatement used in
- Thermal Power Plants, Refineries, Industrial Plants
- Automotive ( a variant of Stationary SCR Unit )
• A typical Stationary SCR Unit consists of the following 5 parts
1. NOx sensor
2. Control Unit
3. Reagent Unit filled with DEF ( Diesel Exhaust Fluid) / AdBlue
4. Dosing Pump – used to inject Reagent inti the SCR Reactor
5. SCR Reactor

B. Marine SCR Unit

• Marine SCR Unit is YCHEM’s product for NOx abatement used in
- Ships, Barges & other Waterborne Systems
- Offshore Platform Units

• A typical Marine SCR Unit consists of the following 4 parts

1. SCR Reactor
2. Reagent Tank
3. Dosing Unit
4. NOx Analyser
 About the Business | Emission Control Technology – SCR Units
A. How is the SCR Unit Assembled ?
• YCHEM has separate Suppliers for each of the SCR Components
• Once Procured – assembly happens in batches of 50-100 Units
• Automotive SCR Units are produced in bulk & stored for fulfillments
• Marine SCR Units are based on Contracts with Shipping Companies
• Units that pertain to Plants & Refineries are made to Specific Customer Orders
• Each Assembly Plant has rows of Assembly Lines
• Specific Activity Areas / Work-Stations are present along each Assembly Line
• Assembly of each Unit involves 4 main activities
- Fabrication – to assemble the Units into one system
- Electricals & Wiring – to fit the necessary electricals e.g.: Sensors etc.
- Testing & QA - Once assembled – Dry Runs are carried out to test Units
- Packing – Primary & Secondary packing

C. How does the SCR Unit work ?

. B. SCR Unit Refurbishment / Upgrade
1. When Exhaust Gas is released by Engine it flows into the SCR Reactor
• YCHEM also Upgrades / Refurbishes SCR Units of different Makes
2. NOx Sensor senses the nature & extent of NOx & alerts the Control Unit
• This happens on a Separate Assembly Line which specific Ops are carried out
3. Control Unit in turn triggers the release of the Reagent – the DEF
• Operations involved are -
4. Movement of the Reagent into the SCR Reactor is facilitated by Dosing Pump
- Knock Down & Restore – Unit is knocked down & restored anew
5. Exhaust is acted upon by Reagent & Reduction Process begins in SCR Reactor
- Electrical Replacements – new electrical Fitments are added.
6. Reduction process results in decomposition of NOx into Nitrogen & Water Vapor
- Testing & QA - Once assembled – Dry Runs are carried out to test
Business Case | About the YCHEM Group

The YCHEM System Landscape

• The current System landscape of YCHEM is consists of different Software that are loosely Integrated
• This has led to problems over the years & has resulted in redundancy & unavoidable reconciliations
• The Central System is Oracle based Customized System that was set up a decade ago & was improved over the years
• Satellite systems added on Ad hoc basis added to the Overall Complexity & Maintenance Cost & Total Cost of Ownership – TCO
• The lack of tight Integration between various systems had led to both Process & Reporting Delays

YCHEM’s Vision 2021

• YCHEM, given its Global Expansion plans currently needs a System that can back its Business
• Given the Tight Integration of its various Sub-systems : Inventory – Manufacturing – Finance & Sales – SAP is the obvious candidate
• YCHEM intends to overhaul its landscape with a State of the Art, Integrated & Automated ERP that provides Actionable Intelligence
• Specifically, an ERP with a Digital Core capable of integrating with Next Gen Technologies like AI, Machine Learning, IoT & Blockchain

Scope of Pilot
• YCHEM has decided to Implement the S/4 HANA 2020 Version for its Business Units
• The approach is to Implement a Pilot for specific Units & based on lessons learnt from the Pilot, roll out SAP for remaining Units
• The Countries that be form part of Pilot shall be termed Pathfinder Countries – US, Norway & India
 The Road Ahead….
• Understand Features of S/4 HANA 2020
• Configure FI/CO Modules e 2 e
• Explore Fiori Apps for Transactions
• Execute End to End Test Scenarios
• Grasp S/4 HANA Migration Aspects
• Discuss Technical aspects of Fiori
• Discover Central Finance
RB & IBM Confidential
Welcome to the Course !