Digital Enablement (DE)

Deta ile d De s ign

Wo rks h o p O u t li n e

A u g u st 2 0 1 8
BE STELLAR

PP – Master Data
 Agenda
Introduction & Workshop Participants

Workshop Objectives

L2 Processes and Definitions

Process Review & Design
Production Master Data
Material Master
Bill of Material (BOM)
Resource
Recipe
Production Version
Roles and Security Requirements for L4 Tasks
Reporting Requirements

Conclusions & Next Steps

2
Workshop Participants

3
Workshop Participants and Roles
Members Roles

Facilitators Mark Wilfong • Provide best practices, implementation expertise, and assistance with
Ganesh Gurumurthy workshop facilitation

Virtual Facilitator Team Member Name • Provide support via Skype. Ping virtual facilitator with any presentation
issues or if you have trouble being heard
• Prepare for workshops and determine participant roles
• Drive to results
• Document results and create deliverables
Core Team Members Team member names • Coordinate with and prepare SMEs
• Facilitate discussion
• Document and disposition user stories
• Update IP5 process flows
• Submit deliverables to project leadership for approval
Subject Matter Experts CBI Business Participants • Provide business process expertise and understand business,
(SMEs) CBI IT Participants technology, and change impacts

Application Team Members Application Team names • Identify specific requirements related to change, security, technology,
and data

Scribe / Timekeeper Team member name • Record Information (Fit/gaps, development objects, data, change
impacts)

If consensus cannot be achieved within 5-10 minutes, the item in question is parked and escalated to the appropriate parties outside of the workshop
Consensus

Resolution of Escalation to members out of Confirmed by member out of Consensus Achieved

FIT/GAP discrepancies /GAP workshop group
workshop group

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Workshop Objectives

5
Workshop Objectives & Desired Outputs

Workshop Objectives
 Review and confirm L2 and L3 process definitions
 Review the functional overview of leading practice L3 processes and process flows
 Perform fit/gap analysis for each L3 process
 Develop and document user stories for each L3 process and disposition each story as a fit or gap
 Document KPIs and change impacts for each L3 process step
 Define and document L4 tasks and identify roles and security restrictions for each task
 Document reporting needs

Desired Outputs

L2 & L3 Process Fit/Gap Analysis Updated IP5 Process Change Impacts, Future State
User Stories Roles & Security
Definitions Dispositioning Flows Solution

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Guiding Principles for Decision Framework

ASK ‘WHY NOT?’ BE AGILE

Be cie s c
Effi ts u
ag nt d lose
w

ge
ne

ile ec r t
WHY NOT SAP S/4HANA? How can we better PRIORITIZE what is required for go-live.
r
tie ko ’
fo
ni loo t?

leverage the investment we’ve made?

s ut

MAINTAIN a “why not” approach.

rtu e no

isi o o
LIMIT CUSTOMIZATIONS to strategic / core
po th y

on u
op on ‘wh

BE EMPOWERED to make informed decisions

-m r g
capabilities.

ak oa
quickly.
Be sk

in ls
A

g
UTILIZE BEST PRACTICES AND SIMILAR AND
ADD VALUE by working more efficiently and
EXISTING ASSETS and pushback if additional
delivering results sooner.
OUR GUIDING efforts are not really needed.

PRINCIPLES
Sp way er in ts, al
e e s l cr bo
Al eliv lien ern

d ook eas th
d r c xt

to fo in int

d b t

SPEED TO VALUE WEAR YOUR CBI HAT

ou d e

in I’s a
t
m B Ih
va r w g v ern
an

es
lu ay alu al

in e C B
st av C
e st et

FUTURE PROOF for the next 10 years. CHECK FOR ALIGNMENT with other impacted
re h ur
te ys o

divisions, functions, or capability areas.

in lwa r y

REMEMBER THE NON-NEGOTIABLES: produce,

o o

A ea

ship, bill, collect cash, pay taxes, report UNDERSTAND THE DECISION’S FINALITY before
W

financials, and a strong control environment. you commit.

DELIVER WHAT IS EXPECTED for the business ADOPT ONE enterprise model.
case and by customers – no less or more.

7
Security & Controls considerations for design workshops
Controls are
non-negotiable
Security and GRC Risks and how we mitigate them

Access Work closely with the business, IT, audit, and security to
risks identify risks proactively

Consider manual and automated controls during process

Control design with upfront review by Security and Controls

Strong Control Environment

•• Segregate team and timely feedback from audit
Segregate key
key duties
duties and
and restrict
restrict access
access following
following Principle
Principle deficiencies
of
of Least Privilege (access limited to what is required to
Least Privilege (access limited to what is required to Focus on the end-user experience – Coordinate with
perform
perform job)
job) Managing Change Acceleration on job role requirements/training
•• If
If segregation
segregation of
of duties
duties conflicts
conflicts cannot
cannot be
be avoided,
avoided, change
mitigating
mitigating controls must be identified, documented and
controls must be identified, documented and
implemented
implemented Leverage automated controls where possible –
Inefficient
Controls processes Constantly challenge inefficient processes

Ask why not!

Roles & Responsibilities

• Operation of controls ultimately owned by the business
•• Consider
Consider manual
manual and
and automated
automated controls
controls during
during detailed
detailed • Security & Controls approach document will provide detailed
process design
process design
•• Security roles and responsibilities for DE Program and associated
Security and
and Controls
Controls team
team will
will prepare
prepare impact
impact assessment
assessment
and identify opportunities for control automation
and identify opportunities for control automation deliverables (TBD)
•• Teams
Teams to
to confirm
confirm agreement
agreement with
with impact
impact • Security & Controls Team coordinates DE Program related
assessment and controls
assessment and controls interactions with Internal/External audit

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L2 Process Definitions

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 CBI Capabilities
Integrated Commercial Integrated Supply Chain Back Office
Strategy to Order to Cash (O2C) Demand to Plan (D2P) Finance
Market
Market (S2M)
Customer Business Finance Data
Analysis Unconstrained Transportation Development
Order Management
Demand Planning (M&A and
Marketing Management & Reporting
Planning Inventory Finance Ventures) Treasury
Trade and After Sales Strategy & & Cash
Optimization
Commercial Promotion Joint Management Management
Fixed Asset Tax Strategy
Planning Customer
Management S&OP Distributor and CAPEX & Tax
Product Shipment
Planning Accounting Accounting
Distribution Corporate
Enablement POS Order Global Travel
Resource Finance & Risk Payroll
Management Services Investor
Master Planning Management
Invoice,
Long Term Operations Relations and
Sales to AR, and Planning
Planning Finance External
Collections And MPS Finance Product
Customers (S2C) Planning & Costing &
Reporting Revenue
Sales Processes Reporting Inventory Management
Customer Production to (FP&A) General Accounting Commercial
Negotiation and Material Inventory (P2I) Finance and Finance
Setup Purchase to Pay (P2P) Resource
Accounting
Customer Planning
Quality
Service Grape
Management
Idea to Strategic Management
Materials Processes
Sourcing Manage
Consumer Planning Inventory Financial
(I2C) Supplier
Management Enablers Resources
Feasibility Relationship and Data Mgmt. Manage
Production
Evaluation Administration Maintenance Corporate
Scheduling & Reporting
Product Test & Direct Programs
Intercompany Manage Plan
Trial Execution Procurement
Transfer And Performance Manage IT
Product Process Plant Inbound
Accounts Payable Acquire and Manage Human
Development Production Transportation
Process Maintain Assets Capital
Product Indirect Management
Plant
Nursing Procurement1
Warehousing &
Storage Plant Outbound
Packaging Highly Moderately Minimally
Notes: Transportation Ke
1. Indirect Procurement is High for Beer and Low for W&S Process Management
impacted impacted Impacted by DE
y: by DE by DE / Not in Scope
2. Vineyard Management is specific to W&S

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Production Master Data

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Production Master Data
• Material Master
• Material master is an organization’s central repository for storing and retrieving material-
specific information and drive business processes
• Bill of Materials (BOMs)
• Bill of Material is a comprehensive, structured list of components that make up a product or
assembly
• Resources
• Resource is an organization unit where manufacturing activities are performed. Resource can
represent machines, production lines, assembly bays, labor resources etc.
• Recipe
• A recipe is a sequence of operations to be carried out during the production at resources or
machines. Recipe also aids planning and costing process
• Production versions
• The production version is the link between a product BOM and the routing. It determines the
BOM and routing structure combinations that is used to produce a material

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Material Master

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Material Master Overview
Material = Item = Product = Part

• Material master is an organization’s central repository

• for storing and retrieving material-specific information
• to drive business processes

• The concept of the material master encompasses different types of materials such as raw materials, spare parts, semi-

finished goods, finished goods & packaging materials.

• Material Master maintenance is driven by the ownership of different business functions.

• Data that is common for the entire organization is maintained by a centralized master data team.
• Data that is local to a department or a function are maintained by respective department

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Business Processes driven by Material Master
• The material master is critical for almost every business process of an organization
• Following are some key business processes influenced by the material master:

Sales & Distribution Purchasing Inventory/ Warehousing

• Item Characteristics • Goods Receipt Processing • Cycle counting
• Availability Check Time • Fixed Bins Replenishment
• Tax Classification • Delivery Tolerance • Batch Tracking

Financial Reports Production Planning

• Valuation Price • Material Planning
• Product Hierarchy • Constrained based capacity
planning
• Production Execution

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Material Types
Materials with the same basic attributes are grouped together and assigned to a material type. This allows the
management of different materials in a uniform manner in accordance with CBI’s operating requirements. Examples
of material types are given in the graphic below and key characteristics of each type has been explained beside.

Raw materials
Raw materials are always procured externally and then processed. A
material master record of this type contains purchasing data, but not
sales data since they are not to be sold.

Semi finished products

Semi finished products can be procured externally or manufactured in-
house. They are then processed by the company. A material master
record of this material type can contain both purchasing and work
scheduling data.

Finished products
Finished products are produced in-house. Since they cannot be ordered
by Purchasing, the material master record of this material type does not
contain purchasing data.

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Material Master Key Views
Material master can be divided into the following views based on business function:
*** Global
Data
____ _____
____

____
_ ____
_
____ _____
_

_____ _____

____ Advanced _____

_ Planning
____ _____
____
_ __
_

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 MRP1 View Key Fields
MRP Type Description
PD Forecast Consumption, No planning Time Fence
MRP Group :MRP Group
ND No Planning in SAP is a key with a set of
VB Manual reorder point planning planning parameters
which are specific for a
VM Automatic reorder point planning
set of materials.
VV Forecast based Planning
X0 Relevant for production planning in Advanced Planning

Date from which Plant

specific material status is
valid.

The planning time fence

specifies a period within
which no automatic
changes are to be made to
Lot Sizing procedure in master plan
material requirements
planning is used to
calculate the order and
production quantities MRP controller is the person
responsible for a group of
materials in a plant or company.
A material that takes part in
material requirements planning
must be allocated to an MRP
controller.
If the stock falls below this quantity, the system flags
the material for requirements planning

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 MRP2 View Key Fields
Procurement Type Description
E Material is produced in-house

F Material is procured externally

X Both in house manufactured and externally procured

Storage Location where finished product

is received after production. For
components the value in this field
represent the location from where the
This indicator ensures that the
goods are issued.
material is automatically issued
to an order during production
confirmation

It specifies the time in calendar

It specifies the time in workdays days needed to procure the
needed to produce the material material
in-house

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MRP3 View Key Fields
A Strategy Group represents the
procedure used for planning a
material

Using this field the system specifies whether and

how the system checks availability of the material.

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 MRP4 View Key Fields
This field controls how the dependent
requirements (BOM Components)are used as
an individual requirement or collective
requirement

This field denotes that

the Production
Version exists for the
material.

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 Advanced Planning View Key Fields
This indicator enables the material to be Predefined algorithm for production
planned for constrained based capacity planning. These heuristics are used for
planning procurement planning for products and other
planning tasks.

This field is used to

specify which task
list type (BOM and
routing) the system
uses to create Defines for each planning-relevant event that can occur which action
receipts in is executed by Production Planning and Detailed Scheduling (PP/DS).
Production Planning A planning-relevant event is, for example, a goods movement for a
and Detailed product or a change in the product master.
Scheduling (PP/DS).

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Work Scheduling View Key Fields

It is the key with a set of parameters required to

carryout the production execution
Unit related to the
production quantity Unit in which the material is issued from Profile that can be used to
the warehouse. • specify that certain business transactions
are carried out in parallel in a production
order / process order (you can, for
example, create and release an order at
the same time, or release an order and
print the shop papers)
• trigger an automatic goods receipt
• specify an overall profile for capacity
leveling

Percentage rate that specifies the percent Percent by which the quantity that
below which the quantity posted for a is posted to goods receipt may
goods receipt may drop below the exceed the production order
production order quantity quantity.

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Bill of Material (BOM)

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BOM types
1.Simple BOM
• Standard BOM with the same finished product and components

2.Multiple BOM
• A group of BOMs representing a single product that can be manufactured from different combinations
of materials (alternatives).

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BOM Header Overview
BOM HEADER: Finished/ Semi finished material for which
the Bill of Material is created

ALTERNATIVE BOM: Diffearent set of components for the

same finished product /assembly

BOM USAGE: Defines the area (such as engineering/design

or production) where a BOM can be used.

BASE QUANTITY : Quantity to which all component

quantities in a BOM is maintained as a ratio

STATUS: Describes the current processing

status

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Bill of Materials – Component Overview
Item Description Details
Category
L Stock Items Assigned for material that is kept in stock
N Non-Stock Selected for material that is not kept in stock and is only procured on demand
Items
D Document Used for different documents (such as design drawings, photographs, or texts of any Sub Assembly Indicator: This
Items word-processing program)
indicator denotes that the
T Text item This category implies use of text in the BOM Structure to mention specific component has its own BOM
instructions/information
structure
Quantity: Quantities of materials
that are consumed in the
production process

Unit of Measure: The unit of

Component: Unique material measure of the component
number

Component Description:
Description populated from the
material master for stock materials

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Bill of Materials – Data Upload Template

BOM Upload
Template

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Resource

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 Resource- Overview
Formulae for calculating capacity
Various default values requirements , shift intervals, factory
calendar etc can be maintained here. Formulae for calculating operation
can be maintained in duration can be maintained here.
the Resource for
General Data
operations.

Formulae for calculating the operation

costs are maintained

The Indicator when set signifies the

Resource is enabled for finite capacity
based planning.

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 Basic Data
Key which distinguishes the Resources by their
category (for example, production Resource,
maintenance Resource), The Resource
The person or group of people category determines which data can be
who are responsible for the maintained in the master record for the
maintenance of the Resource Resource.
master files.

Key which describes the physical location of the

Resource
place for interim storage on the shop floor
and is used to make material directly
available for production purposes.

Key to control in
which type of This indicator
task list can the enables the
resource be used resource to be
planned for
constrained based
capacity planning

Parameters to calculate execution time, capacity

requirements and costs.

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Key Default Values
Key that controls the functions like scheduling, capacity
planning, costing that can be performed in a routing operation

Control Key Description

PI01 When assigned in operations, this control key allows for

scheduling of operation and determining the capacity
requirements of the resources. The control key also allows for the
cost collection functionality as well as confirmation for the
respective operations.

Units of measure of standard values that

define the time taken by the resource to
execute the task e.g. minutes, hour etc.

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Capacities

Formula to calculate processing time

Formula Formula Key Formula

Processing Formula used to determine the capacity requirements for processing based on the
SAPC00
Formula duration for which the resource is available

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Intervals and Shifts

The Factory calendar has the information of working days, holidays and also
planned shutdown days for the plant. The Factory calendar assigned to resource
helps while generating capacity and scheduling requirements

Operating Times Capacity Utilization

This indicator indicates finite

capacity based planning CAPACITY TAB

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Intervals and Shifts
The time at which the shift at a
The time at which the shift at a Duration for which the resource
The Shift Sequences under resource ends under a
resource starts under a is maintained idle and no
which the resources operate at particular shift sequence
particular shift sequence operations are performed.
the manufacturing unit

The time duration for which the

resource operates

CAPACITY TAB

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Scheduling

Formula Formula Key Formula

Formula to determine the operation processing time for order scheduling on
Processing
SAPC00 resources based on duration of operations
Duration

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Costing

controlling
area
Provides the cost center
where the costing of the
resource is allotted

The activity type classifies the

activities that are to be performed
within a company by one or
several cost centers

Costing formula for the

different activity type

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Resource – Data Upload Template

Resource Upload
Template

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Recipe

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Recipe Usages
The business object recipe is the description of an enterprise-specific process in
process industries, that does not relate to a specific order. The recipe is used for the
manufacture of products or for rendering services.

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Recipe Header

Describes the current processing

status

Defines the area (such as

engineering/design or production)
where a routing can be used

Upper limit of, the material quantity

to be manufactured in one
production run, for which the recipe
is valid.

Quantity of the material to be

produced to which the standard
Lower limit of, the material quantity values of the operation refer.
to be manufactured in one
production run, for which the recipe
is valid.

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Recipe Operations

Control key Activity

used in the Operation Duration
Resource used operation
in the operation description

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Recipe – Data Upload Template

Recipe Upload
Template

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Production Version

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Production Version
The production version is the link between a product BOM (Bill of Material) and the
process Recipe. It determines which alternative BOM is used together with which
routing to produce a material or plan a material. There may be different production
versions based on the lot sizes and validity dates

Production Version 1
BOMs
A

B
Production Version 2

C
Production Version 3

A
Recipe

B
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 Production Version Overview
• Producti on versions are used in discrete manufacturing, repeti ti ve manufacturing, and process
manufacturing.

• Producti on versions are used in sales & operati ons planning (SOP), material requirements planning (MRP),
producti on order creati on and product costi ng to select the most suitable task list and the corresponding
material list.

Validity Dates

Recipe Assignment

BOM assignment

46
Production Version Overview

BOM assignment

Lot Size Range Recipe Assignment

Validity Dates

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Production Version – Data Upload Template

Production
Version Upload Template

48
Roles &
Security Restrictions

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Roles & Security Restrictions
Team discussion on identifying roles and restrictions for tasks

L4 Task Roles Fiori apps/T-codes Security Restrictions Comments

50
Reporting

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Reporting Requirements
Team discussion on specific reporting requirements

Microsoft Excel
Worksheet

52
Next Steps

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Next Steps
Parking Lot Items
Assign parking lot items and
schedule follow-up discussions IP5 Process Flows
Update IP5 process to
reflect workshop
outcomes

User Story Fit/Gap Analysis Reporting

Review user stories and update Capture reporting needs
fit/gap analysis spreadsheet Identify key contacts for
reporting discussions

Determine if/where this process falls within E2E Integration Processes

54