MATERIAL CATALOGING

AGENDA
Overview

Background

Methodology

Illustration

Data Migration Objects

Cut-Over Strategy

Cut-Over Activity

Procedure

Go-Live Strategy & Schedule

Project Management
 OVERVIEW

Type of Data Basic Data Purchasing MRP Accounting

All Material
Owner SCM Finance
Departments Management

Material Number: ABCDEFGH Short Text: Bearing,

General Data
Material Group: 1234 Rolling Base UoM: EA
Class & Attribute1: Industrial Attribute3: Standard Pack
Characteristic Attribute2: Silicon Nitride Attribute4:

Plant Level Data

Purchasing Min Stock: 40 Moving Avg. Storage Location Level

Plant: Gresik
Group/Buyer: A1 EA Price: 100K IDR
Purchasing Min Stock: 50 Moving Avg. Stor.Location 1
Plant: Tuban Unit of Issue: PAC
Group/Buyer: A2 EA Price: 150K IDR (Main Storage)
Plant: Gresik
Purchasing Min Stock: 30 Moving Avg. Stor.Location 2
Plant: Padang Unit of Issue: EA
Group/Buyer: A3 EA Price: 175K IDR (Small Storage)

Material Master Management Deals with Multi Level Organization and Several User Departments
 BACKGROUND
CHALLENGE IMPACT OF MATERIAL DUPLICATION
Engineering
Material Number: ABCD-EFGH Wrong Material Requirement Planning Over Purchase Qty
Short Text: Bearing Rolling Over Stock & Dead Stock High inventor value
Material Number: 123-4567 Unclear material description, confusing, wrong purchase, wrong
SCM
Short Text: Rolling Bearing reservation disruption to Maintenance & Production process
Material Material Number: ABC1234
Management Short Text: Bearing CAUSE OF MATERIAL DUPLICATION
No Standard on Material Naming & Coding/Cataloging
Material Number: ABCDEFGH
Acquisition of new company/factory with different system and
Plant: Gresik Short Text: Bearing Rolling.
UoM: EA information
Inaccurate initial data migration process
Material Number: 1234567
Plant: Padang Short Text: Rolling Bearing GOALS
Base UoM: PC
Single database for Material Catalogue which allows:
Material Number: ABC-1234
All Materials will be allocated a materials master number
Plant: Padang Short Text: Bearing
Base UoM: Unit There will be one single material catalogue for all HoldCo and
OpCo within the SAP System, controlled by a Central Master Data
Content Team.
For the same material, different organization may Material basic data is created in HoldCo production box. Other
have different identification/information plant specific data is maintained in the system that the OpCo uses.
Material Master Duplication Standardized material formats Minimize data
redundancy/duplication
 METHODOLOGY
Data Cleansing Data Migration
1. Standardization & Clean-Up Spare Part Cataloging 1. Analysis & Blueprinting:
Standardize material group name & code Impact analysis to other master data, transactional documents, and
Standardize material type & code reporting objects
Standardize naming and writing: short & long Migration strategy of each objects:
description o Cut Over Strategy, see detail in Cut Over Strategy
Standardize material characteristic: Noun, Modifier, o Go-live strategy (big bang or phase)
Attributes o Data Loading Procedure
Standardize OEM & Non-OEM (Casting) Impact analysis to As-Is Configuration, Enhancement
Impact to As-Is Procedure/Process, Organization/People and Technology;
2. Mapping Old to New Data Internal & External
Material number Tools & template for data migration (e.g sign-off document)
Short Text SAP Environment Setting for Testing & Regression Test
Long Text 2. Realization:
Base UoM Extraction of impacted master data, transactional & reporting object,
according to Approved Cut Over Strategy
Infrastructure setup
Configuration, Develop Tools, Internal Testing
3. Final Preparation by Data Owner
Data validation
Regression Testing to the Impacted Procedure/Process using validated
data
Communication to Internal/External Parties
4. Loading, Cut Over & Go-Live
5. Verification (After Data Loading)
 ILLUSTRATION-1
Old Material Number New Material Number

Material Number: ABCDEFGH Material Number: ABCDEFGH

Short Text: Bearing Rolling. Short Text: Bearing Rolling.
Base UoM: PC Base UoM: EA

Stock: Transfer Posting Material to Material Stock:

Unrestricted stock: 10 PCs Pre-requisite for TP Material to Material: Unrestricted stock: 21 EA
In-transit: 5 PCs 1. Unrestricted Stock In-Transit: 0
Quality Inspection: 1 PC
Quality Inspection: 0
Blocked Stock: 1 PC
Blocked Stock: 0
Vendor Consignment Stock: 2
Vendor Consignment Stock: 0
PCs

Cut-Over Strategy General Decisions:

1. No In-Transit Stock uploaded. In-Transit Stock must be placed in Receiving Plant/Stor.Location.
2. No QI stock uploaded. Inspection must be completed before Transfer Posting.
3. No Blocked Stock uploaded. Damaged goods must be scrapped.
4. No Consignment Stock uploaded. Stock must be returned to Vendor.
 ILLUSTRATION-2
Old Material Number New Material Number

Material Number: ABCDEFGH Material Number: ABCDEFGH

Short Text: Bearing Rolling. Short Text: Bearing Rolling.
Base UoM: PC Base UoM: EA
Transfer Posting Material to Material
Stock: Stock:
Pre-requisite for TP Material to Material:
Unrestricted stock: 10 PCs Unrestricted stock: 21 EA
2. Same Stock Keeping Unit (SKU) / Base
In-transit: 5 PCs In-Transit: 0
UoM
Quality Inspection: 1 PC Quality Inspection: 0
Pre-requisite for Change Base UoM:
Blocked Stock: 1 PC Blocked Stock: 0
No any open documents (Planned
Provide to Vendor Stock: 5 PCs Provide to Vendor Stock: 0
Order, PR, PO, Contract, Prod.Ord,
Consignment Stock: 2 PCs Consignment Stock: 0
Maint.Order, MRP, etc)
Must not be contained in any other
objects (BOM, Task List, etc)
Cut-Over Strategy General Decisions:
1. No Open Planned Order uploaded. Existing Pln.Order must be deleted, and re-run using new mat.number by end users.
2. No Open PR uploaded. Existing open PR must be cancelled, and re-created using new mat.number by end users.
3. No Open PO uploaded. Existing open PO must be cancelled. New PO using new mat.number must be re-ordered by end users
4. Partially executed Contracts will be created using new material code only for unexecuted balance quantity and value.
5. Old material number must be removed from any master data objects (e.g BOM, Task List) after Cut-Off Date.
6. New material number must be placed in to master data objects during Black Out Period.
 ILLUSTRATION-3
Old Material Number New Material Number

Material Number: ABCDEFGH Material Number: ABCDEFGH

Short Text: Bearing Rolling. Short Text: Bearing Rolling.
Base UoM: PC Base UoM: EA

Historical Consumption Value: Historical Consumption Value:

GI#1 02.2016: 10 PCs 02.2016: 10 EA
GI#2 03.2016: 5 PCs Upload historical consumption value 03.2016: 5 EA
GI#3 04.2016: 7 PCs 04.2016: 7 EA
Forecast Result: Forecast Result:
05.2016: 8 PCs 05.2016: 8 EA

Cut-Over Strategy General Decisions:

1. No GI or other consumptions documents uploaded.
2. Copy historical consumption value from old material number to new material number in each plant
3. Forecast will be re-run in new material number by end users.
 ILLUSTRATION-4
Old Material Number New Material Number

Material Number: ABCDEFGH Material Number: ABCDEZ

Short Text: Bearing Rolling. Short Text: Bearing Rolling.
Base UoM: PC Base UoM: EA

Total Spending / Purchase Value Total Spending / Purchase Value

Report: Report:
02.2016: 10K USD 02.2016: 0 USD
03.2016: 15K USD 03.2016: 0 USD
04.2016: 17K USD 04.2016: 0 USD
12.2016: 0 USD 12.2016: 18K USD

Cut-Over Strategy General Decisions:

1. No historical documents (PR, PO, GR, GI, TP, Sales Order, Maintenance Order) uploaded.
2. No new report, no modification to existing standard/enhancement reports.
 DATA MIGRATION OBJECTS
Master Data Objects Transactional Objects Reporting
Material Master Reservation Inventory Aging
Purchasing Inforecords Planned Order Other custom/Z Report
Source List Purchase Requistion
Quota Arrangements RFQ & Quotation
Bill of Materials Contract
Material Classifications Purchase Order & STO
Condition Price MM (e.g discount) Goods Receipt
Inspection Setup Logistic Invoice Verification
Task Lists (PM & PP) Goods Issue
Stock Transfer
Stock (On-Hand, Consignment, In-Transit,
Subcontracting)
Consumption History
Physical Inventory
 CUT OVER STRATEGY
Transition to SAP ECC involves
Execution of all transaction processing
from the Go-live date in SAP ECC system
Switching off all old data for transaction
processing from start of Blackout Period
Ensure no manual transactions are
carried out during the blackout period
Pre-requisites for Transition
System Configurations complete
System Testing, End User Training
Complete
Upload tools wherever applicable are
tested and ready
Transfer/creation of all necessary
master data in SAP ECC system
(Material Masters, BOM, Routings,
Classification, Condition Records,
Inspection Setup)
Some important Business
Decisions required
Stages and levels at which
open documents need to be
taken over in SAP ECC
system
Data that are go-live critical
and non-go-live critical
Assessing resource
requirements and allocation
of resources to supplement
efforts of the core team
Feasible dates considering
daily operation in business
critical areas
Black out Period
A smooth transition may
warrant a complete
suspension of business
activities for a few days in
order to control the switch
over process and steer the
organization to its new
roadmap in the ERP
environment.
Communicate the blackout
period to all major vendors &
customers.
Communicate the importance of
Cut-over activities & the
blackout period internally
within the organization
 CUT OVER STRATEGY GENERAL DECISIONS - 1
Material Master
Material Masters all SAP new material master codes, together
with the information required for the different views
Open Purchase Requisition
Convert all open PR into Purchase Orders for procurements that
need to be committed for business requirements and Close all
open PRs that are not approved.
No open PR will be uploaded using new material number.
Purchase Requisition using new material number needs to be
created from respective module (PM,MM, PS etc.) in SAP by end
users after go-live.
Open Contract
Only Contracts that are completely unexecuted will be created in
SAP with full values and quantity.
Partially executed Contracts will be created using new material
code only for unexecuted balance quantity and value.
Open Contracts will be created manually or through upload tool
based on volume
RFQ/Quotation
No RFQ/Quotation will be uploaded, RFQ/Quotation needs to be
created using new material number by end users after go-live
Open Purchase Order
No open PO will be uploaded using new material code. The open PO
should be closed or cancelled.
If delivery on open POs is expected during black out period, inform
Vendors to expedite the delivery latest by cutoff date else the POs
shall be considered as cancelled.
If delivery on open POs expected after black out period, then the GR
will be processed against new PO with new material code.
Against existing PO using old material number, Invoice verification
should be complete for the goods received till cutover date.
All excise formalities for taking credit in respect to goods receipt should
be completed in old POs.
All Vendors and sub-contractors be informed about this strategy
Goods Receipt
No GR uploaded, GR needs to be created against new PO by end users
after go-live
No GR Return uploaded. Necessary excise reversal and return of goods
to the vendor will have to be made in old PO before cut off date.
In case a GR needs to be re-accepted; the acceptance decision to be
taken on or before the cut off date to be considered for stock upload
and steps necessary for normal GRNs be followed as described above.
 CUT OVER STRATEGY GENERAL DECISIONS - 2
Stock Historical Data
Stocks for all types of materials from go live date is required to be No historical documents (PR, PO, GR, GI, TP, Sales Order,
present in SAP system using new material number Maintenance Order, Reservation) uploaded
No Material Issues/ Transfers/ Receipts/ Returns will be carried out
during the Blackout period. Report
All Vendors be requested not to send supplies between these dates
and expedite supplies for items required urgently. No new report, no modification/change to existing
standard/enhancement reports
All departments be asked to make estimate of their requirements and
requisition the material sufficiently in advance.
No dispatches of raw materials or packing materials from Vendor or
from SI to Sub-contractors will be made during Blackout Period.
Break-up of quantity, value, batch /serial no. wherever applicable of
Stock needs to be provided for all new materials in order to track
them in SAP. If batch numbers are not provided, internal batch
numbers will be used.
The details of Material stocks lying with Sub-contractor needs to be
provided with break-up of quantity, value, batch no. wherever
applicable and Vendor Code. If batch numbers are not provided,
internal batch numbers will be used
Stock taking, reconciliation and valuation activities for raw material,
finished goods etc. be completed on or before cut off date.
 PROCEDURES - EXAMPLE
Materials with same Base UoM between Old
and New Mat.Number
Materials with Unrestricted Stock,
Subcont, SO & Project Stock only
Materials with No Open Documents &
Not Contained in Other Master Data
Objects
After Cut Off Date-Time, Execute Data
Loading
Material Group: XXXX
Approved New Material Number List
Materials with different Base UoM between
Old and New Mat.Number
Materials with Unrestricted Stock, Subcont,
SO & Project Stock, QI, Blocked, Consgmt.
Materials with Open Documents &
Contained in Other Master Data
Objects
Get confirmation & approval from
data owner to Cancel Open
Documents and Remove the
Assignment of Old M to Master Data
Objects
After Cut Off Date-Time, Execute
Data Loading
Data Loading Activities:
1. Check no Open Documents
& Not Contained in Other
1
Objects
2. Set material block for
3. procurement & inventory,
BOM/Task List
4. TP material to material
5. Remove material from
other master data object
6. Assign new material to
master data objects
7. Upload consumption value
data for forecast purpose
 GO-LIVE STRATEGY & SCHEDULE
Batch 1: Material Group XXXX, YYYY, ZZZZ

x months x months x days x months x days x months x days x week

Cut-off Cut-off Cut-off

Blackout Blackout Blackout

Analysis,Realization Final Prep. Loading Final Prep. Loading Final Prep. Loading Verify
Data Cleansing

Go-Live Phase 1: Go-Live Phase 2: Go-Live Phase 3:

Semen Indonesia Semen Padang & Semen Thang
(HoldCo) & Semen Tonasa Long
Semen Gresik
 PROJECT MANAGEMENT OFFICE
1. Initiating & Planning 3. Monitoring & Controlling
Requirements Risk & Issue Log
Scope of Project Weekly & Monthly Report
Stakeholder Analysis Check List
Project Charter: Organization/Resource, Schedule

2. Executing 4. Closing
Define Blueprint Documents: Hand-Over of all Deliverables Documents
Impact analysis to other master data, transactional Project Close Out
documents, and reporting objects
Migration strategy of each objects:
o Cut Over Strategy, see detail in Cut Over Strategy
o Go-live strategy (big bang or phase)
o Data Loading Procedure
Impact analysis to As-Is Configuration, Enhancement
Impact analysis to As-Is Procedure/Process,
Organization/People and Technology; Internal & External
Tools & template for data migration (e.g sign-off document)
THANK YOU