Session ID: BPI209 SAP Business Workflow Case Studies at Nestle USA
Ram Chint Chintaman amaneni, eni, Module Conf Configure igurerr SAP Workflow
Ram Chint Chintaman amaneni, eni, Module Conf Configure igurerr SAP Workflow
Introduction Background/History Material Master Workflow COPA/ZMAT and Automatic Batch creation workflows Customer Master Workflow Purchase Order Approval workflow Q&A
What Workshop Encompasses History of why workflows at Nestle USA Understanding Material creation and change process
Material creation
Material extensions (Plants, Dist. Channels and Storage locations)
Material activation
Material change requests and approvals
Seeing how COPA/ZMAT and Batch Creation process are
incorporated into Material workflow
Automatic updates to the ZMAT tables through workflow
Automatic population of Material Master (Accounting view)
Automatic Batch creation through workflow at the time of material activation
What Workshop Encompasses continued Understand Customer workflow process
Customer creation and Blocking
Customer extension
Customer unblocking (activation)
Customer change workflow
The PO Approval workflow process
PO Creation/ PO Change
PO Approval (Acknowledgement or Release)
Material Master Workflow – Before workflow solution In the beginning -- if a material number was needed – a PIN form (excel
spread sheet) was initiated and passed to four different groups for data collection, then sent to Central Master Data (MD) for data entry.
Hard copy passed by hand to each person – bottlenecks, inefficiencies, and time consuming
The MD Team would then manually create the record in Opera
Multiple keying of the same data, many errors, bottleneck
If a change was needed, the user simply sent an email to MD Team and
the change would be entered.
Accountability and traceability were poor due the system recorded the ID of the Master Data user making the change, not that of the user requesting the change.
Change requests were made via e-mails to the Master Data Group, who
then manually entered the change requested.
Storage of PIN forms / Change requests – much paper and storage space
Supporting documentation was difficult to maintain and access.
Held on Share point – access limited to one person at a time
In 1998, Nestle (USA) began implementation of SAP with the Finance and
Master Data modules.
Material Master Workflow – Before workflow solution continued Mid 1999 implemented SAP Master Data and Finance complete. The SAP implementation, added more requirements and attributes to the
material master and needed to be populated
From 30-40 to Over 150
4 groups climbed to 14 groups that needed to supplied information.
Scaling-up the existing PIN Form process would be much too
complicated and complex.
Maintaining the integrity of the spreadsheets
Routing spreadsheet to so many users -- almost impossible.
Processing times – new SAP requirements
Central Master Data the single data entry point -- Traceability non-existing
Ownership still a problem -- if data owners were entering data themselves, accuracy and accountability would soon follow
Data accuracy -- downstream impact further costs in operations with errors
Costs – more people would have been needed to perform the as task
An effective and efficient process would be critical
Material Master Workflow – Approach Interviews conducted with many users of the existing processes;
including customers, material, vendors master data and purchase order processing. The broad scope, of the SAP implementation 14 different groups had some responsibility for master data, of these
8 or 9 (i.e. Finance, Marketing, Packaging) were within the six Divisions
the others (i.e. Supply Chain) were corporate level.
Ownership of the data continues to be the biggest problem. Everyone wants it to be correct but no one want to own it. Some attribute ownership is straightforward
Quality -- owner of shelf-life – and they wanted to own it.
Finance -- the obvious owner for Standard Price.
The Business did not understand the how the SAP attributes were used
nor what was “workflow”. New requirements emerged – understand the data, exactly how the
attributes worked and the downstream impacts – ownership changed. One attribute, the apparently simple ‘Net weight’, changed ownership four times! The
current owner is Regulatory Affairs, although Marketing, Finance and Packaging are all effected by it.
Material Master Workflow – Approach continued SAP had many more new attributes then before -- Advanced
Planner and Optimizer APO, was driving (new) MRP functions;
planning time
Procurement
purchasing value key
2001 - The current workflow was designed and implemented Further refinement and enhancements developed and
implemented
2005 automatic batch creation and full material activation across required locations
2004 automatic creation of Accounting views with COPA/ZMAT update
Material Master Workflow – Results The PIN FORM processes was not a fit with SAP, the results -- Workflow. Precise comparison between the new and old process is difficult, as along with the new workflow process many new groups and attributes were added, which significantly increasing the workload and number of groups involved. What can be noted though is; Efficiency overall increased by decentralizing Master data Workload is assigned to the appropriate users – single data entry Decreased headcount (central vs. decentralized) 12 to 4 Single point contact 'master data lead' within each division
4 leads for 6 division.
Accountability and traceability strengthened Error Rates using the PIN form was so high that it required additional data checking procedures -- taking as much as 2 weeks. Error Rate using workflows have dropped considerably
from 98% first time error to less the 2%.
First
time quality by eliminated double entry by a non data owner Auditing and tracking of workflows reducing bottlenecks Ownership of data
Material Master Workflow – Results continued Cycle time improved from 4-6 weeks to 2-4 weeks This may not seem an improvement, but remember there are more
attributes and groups now -- However using the old Excel process with the current complexity of SAP the material master would have resulted in significantly increased the cycle time.
It is important to note -- lack of understanding and knowledge of the attributes will increase the cycle time
The process is still very dependent on the availability and accessibility of users processing the workflow.
Overall the workflow process is about 30% faster and more accurate
Supporting documentation for a material is now all in one place.
SAP reports can be run to monitor and track workflows.
Material Master Workflow – Learning’s Before Workflows material creation and activation took 3-4 weeks. Using workflow this can now take as little as 3 days . Ensure data being managed is actually necessary -- At first the Nestle
SAP implementation team identified about 250 fields but two thirds of these were not needed. Clear business definitions of each attribute is crucial -- Define each field
carefully. Ensure that you understand what the tool will be able to do for you. Involve Security in workflow definition. Define the flows to minimize delays and manual handling of the data. Define data ownership before creating workflows -- As ownership
changes based on requirements. Train people in functional, not divisional, groups.
Bottom Line: Establishing business definition and ownership of the material attributes required for SAP was the key in implementing an effective data management processes and minimizing error rates
Material Master Workflow Material Creation process after workflow solution: 2-step -- semi-automated process. MCR (Material Creation Request) MCR
is an add-on form to SAP
Initiating
the MCR and preliminary data collection is done by the data owners onto MCR form -- strengthens data ownership and accountability
MCR
tracking and visibility all within SAP
Progress
reports can be run to monitor/identify
Process improvements -- Cycle times -- Bottlenecks
Material
number assignment, logic check and triggering main workflow is done by division leads
Main Workflow Pre-active
materials are routed electronically to the appropriate user at the appropriate time for data input.
Data
owner enters the relevant data directly into SAP through workflow items
Duplicate Data entry eliminated -- Keying error are reduced
Material Master Workflow continued Master Data Divisional Lead assist with expediting a material through the MCR and in workflow processes. Visibility of the MCR and Main workflow while routing Identify
bottlenecks
Control
when a material is activated
Create
reports
Outlook reminders for the past due workflow items
Material Creation Request (MCR) Workflow MCR routing Process MARKETING
DIVISIONAL FINANCE
Rejected MCR
Master Data Division Lead reviews MCR
Notification of Code Assignment
Approved MCR
DEMAND PLANNER
SUPPLY PLANNER
Lead creates preactive material record in SAP System automatically extends material to all locations listed on MCR
SUPPLY CHAIN FORECAST SUPPORT NO
SUPPLY CHAIN DECISION SUPPORT
View Create to be triggered? YES
PACKAGING
View Creation Workflow
Material Creation Request (MCR) Form – Initiation
Finished Goods (FERT) MCR
Consumer unit (ZCSU) MCR
Material Creation Request (MCR) Form - Routing Marketing role initiates the MCR, completes assigned information and starts the routing process. Data owner validation is check at each step in the MCR before routing is allowed.
Material Creation Request (MCR) Form - Routing Once data is validated the MCR is allowed to route to the next step (Finance role)
Material Creation Request (MCR) Form - Submitting All steps are validated before the MCR workflow can be routed. Routing continues through all the assignments on the the workflow diagram.The packaging role submits the MCR, which then routes to the Master Data lead to review and approval.
Master Data Lead - MCR Validation and Approval Master Data Lead does a validity check, assigns the material number, approves the MCR and Triggers the main workflow.
Triggering Main Workflow After the MCR approval, Basic data and Classification views will be automatically populated with MCR data and from the default tables. Master Data lead completes these two views in the dialog mode by completing the workflow item.
Workflow Dashboard After the material is created the status is Pre-active and ready for view routing. At this time, most of the material views like Sales, MRP, Purchasing, Work scheduling, Forecasting, Quality management and Storage views will be completed in the background with the values from the MCR and from the default tables. The main workflow is triggered
Storage view
Accounting view
Material Master Main Workflow Material View routing process Basic Data & Extras Views Lead
Sales Views Background
MARKETING
SUPPLY PLANNER
SUPPLY PLANNER
QUALITY MGT.
eBusiness
SALES
DIVISIONAL FINANCE
Forecasting, Quality Mgt., Work Scheduling, MRP and Purchasing Views Background
Storage & Extras Views Background
QUALITY MGT.
Classification View Lead
DIVISIONAL FINANCE
Accounting Views Divisional Finance
ZMAT/COPA Form •Standard price breakdown
PACKAGING
PRODUCT DEVELOPMENT
Accounting Views - Background • Standard price • Valuation Class
Dashboard Master Data Divisional Lead reviews completed material
System automatically extends the material to the appropriate distribution channels and storage locations
MD Lead prompts system to activate the material at all levels (material, plant, distribution channel)
Main Workflow View Routing When the views are routed to the data owner the populated values entered came from the the MCR, the data owner validate this information or corrects it. e.g. Storage view shelf life – Data Owner Quality - values will be validated or corrected.
Accounting view -- COPA/ZMAT Workflow Accounting view – Data Owner Manufacturing Finance (FM) – The work item is sent to the FM role to enter the standard cost components on the form and to update the ZMAT* tables. When creating this view the COPA/ZMAT form is presented for population.
Note: Accounting view has not been created
Accounting view -- COPA/ZMAT Workflow After updating the COPA/ZMAT form, the total standard cost will be updated in the accounting view for all the plants on the MCR .
Master Data Lead – Material Extension Master Data lead receives the 2nd Dash board step after all the views were maintained during Material view routing workflow. After completion of the dash board step, distribution channel and storage location extensions will be done automatically for all the locations on the MCR.
Other Dist. Channel extensions
Master Data Lead – Material Extension Other Storage Location extensions
Master Data Lead – Material Activation After activating the material by the Master data lead, all the statuses(X-Plant status, X-Dist. Chain status, Dchain-spec status and Plant spec material status) on the material will be automatically updated along with the valid from date being changed to the date on which the material got activated. After the material activation, MCR initiator receives the SAP Office message with the MCR and Material number information.
Batch Creation After the material activation, automatic batch creation will be done in the background for batches ‘UNKNOWNRES’ and ‘UNKNOWNNR’.
Material Master Change Workflow Requestor creates a change request by entering transaction code CC01 into SAP
The “Valid on” date should be specified, or set at one year from current date for immediate c hanges Requestor executes change request from their SAP Inbox and enters changes on SAP view.
Master Data Divisional Lead reviews request for dependencies and releases change request
Check date = current date + 1 year
Is the “Valid on” date equal to the check date?
no
Is the “Valid on” date equal to the current date?
no
System waits for the actual date to match current date
yes yes
System activates changes
System notifies requestor that the change has been activated
End
Steps in the shaded area are automatically performed by SAP in the background
Creating a Change Request using CC01
Valid from date
Enter the material number
Change Request Workflow – MM12 e.g. user would like to change the material group Workflow inbox
Planned change (MM12)
View selection
Change requester Workflow inbox
Change Request Workflow – MM12 Changing the Material group
Using MM12, changing the material group from 0027 to 0020
Change Request Workflow – Lead Approval The change request flows to the Master Data leads to review the material change and approve the request Approve the request
Master Data lead reviews the requested changes
Verify the material changes after workflow completion using MM03
Material group changed from 0027 to 0020
Customer Master Extension Workflow Customer Master Extension
Extending a SoldSold-To to Sales Areas (S.2)
Notific ation per Sales Area sent to AOC
AOC approves CMR (1st level approval) • Customer group
• Customer Group 2
Approve Reject
Sales Areas 02, 03 & 05
Inventory Control enters data on CMR
All Other Sales Areas & EDI button is YES
(3rd level approval)
• Customer Group 2 Notification sent to AOC
Reject Approve Reject
Sales Areas 02 03, & 05 & EDI button is YES All Other Sales Areas & EDI button is NO
EDI approves Data on CMR (3rd level approval)
Approve Reject Completely
Sales Areas 02, 03 & 05 & EDI but ton is NO
Reject
Corp Sales MD approves/rejects based on Bill-to status or if it is a duplicate (4th level approval) • District
Approve
Sales Sales Support Sales Operations Sales Support Sales Operations • PriSales c e groupOperations Support • Pric e group • Pric e group
System reviews all System reviews dependencies andall System reviews dependenci es andall activates the General dependencies and activates General Sold-Tothe record activates Sold-To Sold-Toeach record Sales Area re cord
Corp Sales MD creates general record and extends record to other Sales Areas (as many as necessary)
Corp Sales MD routes views for input
Note: System cannot activate, by Sales Area, Sold-to until its Bill-to and Ship-to are complete. Italicized attributes are optional
Customer Master Changing a Bill-to Workflow C h a n g i n g a B i ll - t o
C R E D I T o r A O C in i tia t e s t h e B i ll- t o c h a n g e r e q u e s t . b y c o m p l e tin g C u s t o m e r M a s t e r R e q u e s t ( C M R )
Reject
INITIATOR approves Change Request ( 1 s t le v e l a p p r o v a l)
A p p ro v e Reject
CreC d iRt EaDpI pr T oa vpepsr oc vheasn g e Chan r eg qe uRe es qt u e s t ( 2 n d l ev e le v el l aappppr roovvaal)l)
Reject A p p ro v e
Reject
A O C approves Change Request ( 3 rd le v e l a p p r o v a l)
C o m p l e t e ly A p p ro v e
C o r p S a le s M D a p p r ov e s C M R ( 4 th le v e l a p p r o v a l ) A p p ro v e
S y s te m u p d a te s t he s t a tu s o f c u s t o m e r r e co r d
N o t if i c a t i o n s e n t t o AO C
AOC initiates CMR process
1
2
3
4
5
6
AOC submits and approves the CMR
7
8
1 Credit’s Inbox
2
Workflow items displayed in Credit’s Inbox
3
Credit selects CMR to process
4
1
2
Corp Sales MD selects CMR to process
Workflow items displayed in Corp Sales MD’s Inbox
3 4
Corp Sales MD runs BDC session to create Customer record
1 Corp Sales MD selects specific Dist Channel to extend the customer record to
3 2
Corp Sales MD runs BDC session to extend Customer record to dist. Channel “01”
Corp Sales MD approved CMR for extension process
3
Views routed to Functional Grps
Credit view Credit maintenance View
Billing and Payment view maintenance
Payment view
Billing view
Workflow History for the CMR
Workflow log before Customer activation Workflow will in the wait mode after completing all the views. Customer gets activated after running the activation program after all the account group dependencies were met. Following flow shows wait step before the activation program execution
Workflow log after Customer activation After the execution of the activation program , the blocks on the customer got removed and the customer is ready for use.
Customer activated Customer activation status reflects on the CMR
Purchase Order Approval Workflow
No
PO Created, Changed, Un-released
Subject to PO Release?
Yes
Forward Workitem to Approver
Release?
Yes No
Yes
Need Higher Release?
No
PO Released
Purchase Order Approval Workflow After creating the PO, the PO creator gets a workflow item to specify an approver to release the PO.
Specify the user who should approve the PO.
Purchase Order Approval Workflow Approver receives the work item to release the PO. Based on the release authorization, the approver can acknowledge/approve the PO.
Purchase Order Approval Workflow
This PO requires additional approval(s). Specify the user who should approve the PO.
This user will not be able to approve this PO. Send for acknowledgement anyways?
Summary Workflows has improved
Efficiencies
Accountability/Traceability
Cycle time
Documentation storage and retrieval
The workflows have been designed for flexibility and modifiable
to meet the business needs.
Questions?
Further Information Public Web: www.sap.com www.sdn.sap.com SAP NetWeaver Developer‘s Guide: www.sdn.sap.com/sdn/developersguide.sdn
Americas’ SAP Users’ Group (ASUG) www.asug.com
