Bpi209 Sap Business Workflow Case Studies At Nestle Usa

Session ID: BPI209SAP Business Workflow Case Studies at Nestle USA

Ram Chintamaneni, Module Configurer -SAP Workflow

IntroductionBackground/HistoryMaterial Master Workflow

COPA/ZMAT and Automatic Batch creation workflows

Customer Master WorkflowPurchase Order Approval workflowQ&A

© SAP TechEd ’05 / BPI209 / 4

What Workshop Encompasses

History of why workflows at Nestle USA

Understanding Material creation and change processMaterial creationMaterial extensions (Plants, Dist. Channels and Storage locations)Material activationMaterial change requests and approvals

Seeing how COPA/ZMAT and Batch Creation process are incorporated into Material workflow

Automatic updates to the ZMAT tables through workflowAutomatic population of Material Master (Accounting view)Automatic Batch creation through workflow at the time of material activation


What Workshop Encompasses continued

Understand Customer workflow processCustomer creation and BlockingCustomer extensionCustomer unblocking (activation)Customer change workflow

The PO Approval workflow processPO Creation/ PO ChangePO 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 OperaMultiple 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 spaceSupporting 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 1504 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 spreadsheetsRouting spreadsheet to so many users -- almost impossible.Processing times – new SAP requirements Central Master Data the single data entry point -- Traceability non-existingOwnership still a problem -- if data owners were entering data themselves, accuracy and accountability would soon followData accuracy -- downstream impact further costs in operations with errorsCosts – 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 these8 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 timeProcurementpurchasing 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 locations2004 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 dataWorkload is assigned to the appropriate users – single data entryDecreased headcount (central vs. decentralized) 12 to 4Single 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 ownerAuditing and tracking of workflows reducing bottlenecksOwnership 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 timeThe 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 SAPInitiating the MCR and preliminary data collection is done by the data owners onto MCR form -- strengthens data ownership and accountabilityMCR tracking and visibility all within SAPProgress reports can be run to monitor/identify

Process improvements -- Cycle times -- BottlenecksMaterial number assignment, logic check and triggering main workflow is done by division leads

Main WorkflowPre-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 routingIdentify bottlenecksControl when a material is activatedCreate reports

Outlook reminders for the past due workflow items


Material Creation Request (MCR) Workflow

MCR routing Process

Master Data Division Lead reviews MCR

Lead creates pre-active material record

in SAP

RejectedMCR

Approved MCR

Notification ofCode

Assignment

View CreationWorkflow

View Create to betriggered?

NO

System automatically extends material to all

locations listed on MCR

MARKETING

DIVISIONAL FINANCE

DEMAND PLANNER

SUPPLY PLANNER

SUPPLY CHAIN FORECAST SUPPORT

SUPPLY CHAIN DECISION SUPPORT

PACKAGING

YES


Finished Goods (FERT) MCR Consumer unit (ZCSU) MCR

Material Creation Request (MCR) Form – Initiation


Material Creation Request (MCR) Form - Routing

Marketing role initiates the MCR, completes assigned informationand 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 bycompleting the workflow item.


Storage view Accounting view

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 andStorage views will be completed in the background with the values from the MCR and from the default tables.

The main workflow is triggered


Material Master Main Workflow

Material View routing processBasic Data & Extras Views

Lead

Forecasting, Quality Mgt., Work Scheduling, MRP and Purchasing Views

Background

Sales ViewsBackground

Accounting ViewsDivisional Finance

DashboardMaster Data

Divisional Lead reviews

completed material

Storage & Extras ViewsBackground

ZMAT/COPA Form•Standard price breakdown

Classification ViewLead

Accounting Views - Background• Standard price • Valuation Class

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)

MARKETING SUPPLY PLANNER

eBusiness

SUPPLY PLANNER

QUALITY MGT.

SALES DIVISIONAL FINANCE

QUALITY MGT. PACKAGING PRODUCT

DEVELOPMENT

DIVISIONAL FINANCE


Main Workflow View Routing

When the views are routed to the data owner the populated valuesentered 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.


Note: Accounting view has not been created

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.


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 .


Other Dist. Channel extensions

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.


Master Data Lead – Material Extension

Other Storage Location extensions


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.

Master Data Lead – Material Activation


Batch Creation

After the material activation, automatic batch creation will be done in the background for batches ‘UNKNOWNRES’ and ‘UNKNOWNNR’.


Material Master Change Workflow

Is the“Valid on” date

equal to thecheck date?

Is the“Valid on” date

equal to thecurrent date?

System activateschanges

Master Data DivisionalLead reviews requestfor dependencies and

releases changerequest

Requestor creates achange request byentering transactioncode CC01 into SAP

Requestor executeschange request fromtheir SAP Inbox andenters changes on

SAP view.

System notifiesrequestor that thechange has been

activated

System waits forthe actual date tomatch current date

End

Check date =current date +

1 year

Steps in the shaded area areautomatically performed by

SAP in the background

The “Valid on” date should bespecified, or set at one year from

current date for immediate changes

yesyes

nono


Enter the material number

Valid from date

Creating a Change Request using CC01


Workflow inbox

Change requester Workflow inbox

Planned change (MM12)

View selection

Change Request Workflow – MM12

e.g. user would like to change the material group


Using MM12, changing the material group from 0027 to 0020

Change Request Workflow – MM12

Changing the Material group


The change request flows to the Master Data leads to review the material change and approve the request

Master Data lead reviews the requested changes

Change Request Workflow – Lead Approval

Approve the request

Verify the material changes after workflow completion using MM03

Material group changed from 0027 to 0020


INITIATOR approves CMR

(1st level approval)

Creating a BillCreating a Bill--to (B.1)to (B.1)

• Sales org.• Dist. Channel• Division• Title• Name1• Name 2,3,4• District

• Postal code• Region (US Only)• Countr y• Int’net adrs • Fax number• PO box Pcode• Customer Group 4

• City• P.O. box city• Telephone #s• Telebox (Team #)• Search Term• PO box• Language

Corp Sales MD routes views for input *

* Please see Diag. B.2

CREDIT creates or AOC transfers information from the Broker/Sales Rep form and creates a request by

completing Customer Master Request (CMR)• APC number• CSC number• Planning Act number• Attribute 5

• Recon account• Credit Entity (in

Alt Payer field)• Acctg clerk

Credit enters data on CMR and approves if not

a duplicate customer(2nd level approval)

Approv e

• Title• Name 1• Name 2• Name 3• Name 4

• Telebox• Fax number• Internet address• Street

• Search ter m• Language• Telephone 1• Telephone 2• Payment ter ms

BillingCredit

• Paym guar pr oc

Contact PersonCredit

• Function• First Name• Last N ame• For m of address

• Telephone #• Department• PO Box• Time Zone

• Fax• Street• Language keys• Sort fiel d

• Title• Comm. type• Name (1,2,3)

• District• City• Country key

• Region• Postal C ode• PO Box Pcode• PO Box City

Contact PersonCredit

• Function• First Name• Last N ame• For m of address

• Telephone #• Department• PO Box• Time Zone

• Fax• Street• Language keys• Sort fiel d

• Title• Comm. type• Name (1,2,3)

• District• City• Country key

• Region• Postal C ode• PO Box Pcode• PO Box City

Control DataCredit

• Industry• Vendor

Address DataCredit

• Countr y• PO Box• PO Box City• PO Box Pcode

• City• Postal code• District• Region (US Only)

• Accounting cler k• Last dunned• Customer user• Dunni ng reci pient

CorrespondenceCredit

• Leg Dunn Pr ocess• Dunni ng cl erk• Dunn l evel• Clerk’s fax

• Groupi ng key• Clerk’s internet

addr ess• Account at cus tomer

• Dunn block• Dunni ng procedur e• Account statement

• Payment ter ms• Tolerance group• Lockbox• Rec. Pmnt History

• Next payee• Rsn code conv• Payment method

suppl ement

Payment Transactions BillingCredit

• Selecti on rul e• Indiv. Payment• Groupi ng key• EDI Pmnt advice

• House bank• Credit memo ter ms• Payment bl ock• Payment methods

• Payment ter ms• Tolerance group• Lockbox• Rec. Pmnt History

• Next payee• Rsn code conv• Payment method

suppl ement

Payment Transactions BillingCredit

• Selecti on rul e• Indiv. Payment• Groupi ng key• EDI Pmnt advice

• House bank• Credit memo ter ms• Payment bl ock• Payment methods

Corp Sales MD extends record to other Sales Areas (as many

as necessary)

Corp Sales MD extends record to other Sales Areas (as many

as necessary)Corp Sales MD extends record to other Sales Areas (as many

as necessary)Corp Sales MD creates and extends record to other Sales Areas (as many as necessary)

Corp Sales MD entersdata on CMR and

creates the general Bill-to record(3rd level approval)

Approv e

Approv e

Italicized attributes are optional

Notif ication sent to AOC


• Customer account number

Credit Maintenance SubRecordCredit

• Customer account number

Credit Maintenance SubRecordCredit (NOTE: This is a separate work item, not a view)(NOTE: This is a separate work item, not a view)

System reviews all dependencies and

activates the General Bill-To record

• Sort key• Recon. Account• Interes t indicator

• Last i nt. calc.• Last key date

Account ManagementCredit

• Previous a/c no. • Int. calc. Freq

• Sort key• Recon. Account• Interes t indicator

• Last i nt. calc.• Last key date

Account ManagementCredit

• Previous a/c no. • Int. calc. Freq

Reject

Reject

Reject

Reject Completely

Customer Master Create Workflow

Customer Master Create Workflow


AOC approves CMR(1st level approval)

Corp Sales MD routes views for input

Corp Sales MD creates general record and extends record to other Sales Areas

(as many as necessary)

• Price group

SalesSales Operations Support• Price group

SalesSales Operations Support

• Price group

SalesSales Operations Support• Price group


• Price group


Corp Sales MDapproves/rejects based on Bill-to status or if it is

a duplicate(4th lev el approv al)

• District

Corp Sales MDapproves/rejects based on Bill-to status or if it is

a duplicate(4th lev el approv al)

• District

Extending a SoldExtending a Sold--To to Sales Areas (S.2)To to Sales Areas (S.2)

Approv e


Notif ication per Sales Area sent to AOC

Italicized attributes are optional

Note: System cannot activate, by Sales Area, Sold-to until its Bill-to and Ship-to are complete.

Inventory Control entersdata on CMR

(3rd lev el approv al)• Customer Group 2

Inventory Control entersdata on CMR

(3rd lev el approv al)• Customer Group 2

EDI approves Data on CMR (3rd lev el approv al)

EDI approves Data on CMR (3rd lev el approv al)

Approv e Sales Areas 02, 03 & 05

Sales Areas 02, 03 & 05 & EDI button

is NO

All Other Sales Areas & EDI button is NO

All Other Sales Areas & EDI button is YES


activates the General Sold-To record


activates the General Sold-To record


activates each Sold-To Sales Area record

• Customer group • Customer Group 2

Approv e

Approv e

Sales Areas 02 03, & 05 & EDI button is YES

Reject

Reject

Reject

RejectReject Completely

Customer MasterExtension

Customer Master Extension Workflow


IN IT IA T O R a p p r o v es Ch a n g e R e q u e s t

( 1 s t lev e l a p p r ov a l)

C h a n g in g a B i llC h a n g in g a B i ll --toto

C R E D IT o r A O C in it ia te s th e B ill- to c h a n g e r e q u e s t.b y c o m p le t in g Cu s to m e r M a s te r Re q u e s t ( CM R)

C re d it a p pr o v es c h a n g e r e q u e s t

( 2 n d lev e l a p p r o v a l)

A p p ro v e

A p p ro v e

R e je c t

A O C a p p r ov e s Ch a n g e R e q u e s t

( 3 rd le v e l a p p r ov a l)

A p p ro v e

N o t if ic a t io n s e n t t o AO C

C R E DIT a p p r o v e s C h a n g e Re q u e s t

( 2 n d lev e l a p p r o v a l)

S y s te m up d ate s the s t a tus o f c us t om e r re co r d

C or p S a le s M D a p p r ov e s C M R( 4 t h le v e l a p pr o v a l)

A p p r o v e

R e je c t

R e je c t

R e je c t C o m p le t e ly

Customer Master Changing a Bill-to Workflow


1

2

3

4

AOC initiates CMR process


5

6


7 8

1 Workflow items displayed in Credit’s Inbox

2Credit’s Inbox

AOC submits and approves the CMR


3

4

Credit selects CMR to process

Workflow items displayed in Corp Sales MD’s Inbox

1

Corp Sales MD selects CMR to process2


3

Corp Sales MD runs BDC session to create Customer record

1

4

Corp Sales MD selects specific Dist Channel to extend the customer record to


2 Corp Sales MD approved CMR for extension process

Corp Sales MD runs BDC session to extend Customer record to dist. Channel “01”

3

3

Views routed to Functional Grps


Credit view

Credit maintenance View


Billing view

Payment view

Billing and Payment view maintenance


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


PO Created,Changed,

Un-released

ForwardWorkitem to

ApproverPO ReleasedRelease? Need Higher

Release?Yes No

Yes

No

Subject to PORelease? Yes

No

Purchase Order Approval Workflow


Specify the user who should approve the PO.


After creating the PO, the PO creator gets a workflow item to specify an approver to release the PO.



Approver receives the work item to release the PO. Based on the release authorization, the approver can acknowledge/approve the PO.


This user will not be able to approve this PO.Send for acknowledgement anyways?

This PO requires additional approval(s).Specify the user who should approve the PO.



Summary

Workflows has improvedEfficienciesAccountability/TraceabilityCycle timeDocumentation storage and retrieval

The workflows have been designed for flexibility and modifiable to meet the business needs.


Q&A

Questions?


Further Information

Public Web:www.sap.comwww.sdn.sap.comSAP NetWeaver Developer‘s Guide: www.sdn.sap.com/sdn/developersguide.sdn

Americas’ SAP Users’ Group (ASUG)www.asug.com


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Bpi209 Sap Business Workflow Case Studies At Nestle Usa

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