Material and Service Master

Department of Finance and AdministrationOffice of the Mississippi Management and Reporting System

Workshop Presentation PRO-07 Material and Service Master

November 7. 2011

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1. Workshop Ground Rules2. Workshop Guiding Principles3. Workshop Objectives4. Workshop Agenda in Detail5. Workshop Roles6. Workshop Content7. Workshop Wrap-up

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AGENDA

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All participants should be familiar with the requirements and the topics to be covered;

The workshop scribe is responsible for documenting the parking lot issues and follow up questions;

The workshop facilitators are responsible for keeping the discussion centered on the topic being discussed. If an issue is determined that cannot be resolved during the workshop, the facilitator will note the issue for future resolution and enter it into the workshop output document; and

Parking of discussion item if the required knowledge is not in the room.

Workshop Ground Rules

Workshop Guiding Principles

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Workshop Participant

Demonstrate how requirements are met using Standard SAP functionality

Utilize standard SAP functionality (80/20 rule)

Avoid the what wont work mindset

Be attentive and open minded

Explore questions and answers

Encourage input from other participants

Refrain from absolutes and mandates

Focus on current issue being discussed

Avoid war stories

Manage cell phone, pagers & interruptions

Keep the conversations to one at a time

Essential to dos: Review Business Process Model Update/Create process Flow

Diagrams WS Output Documents Identify RICEFW Objects Document process

changes/implications Solution Manager:

Create Business Blueprint documents

Identify Issues and Risks

Workshop Agenda

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Date

Topics

Deliverables

Team Logistics

November 7, 2011

Key Decisions Material Master

Material Master Record Views of the Material Master Maintenance of Material Master

Service Master Service Master Record Maintenance of Service Master

Next Steps

Workshop Minutes Parking Lot

Blueprint Workshop - Roles

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SAP Facilitator Jeanna Stafford

Customer Facilitator Shelley Walker; Carlos Galloway

Scribe Jon Sanford

OCM Dorothy Preston

A successful workshop is the result of interaction and participation!

Workshop Objectives

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Define Master Records

Define and discuss the Material Master and its use

Define and discuss the Service Master

Maintenance activities for Master Records

Identify Systems for collection of legacy data and use of SAP data

Workshop Key Decisions

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In which State systems do Commodity records exist?

What will be converted as Material Master Records? Generic Commodities Commodities coded to the 11 digit NIGP code State defined numbers

Keep as defined Map to NIGP 11 digit code

All commodities or active commodities within a date threshold

Define Standardization of Short Description Noun, Adjective, Adjective, Size, Color


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Will the Material Master be maintained centrally?

Will specific data be maintained de-centrally? Plant specific data for Inventory purposes

How will inventory be valued? Moving Average Price Standard Price

How will Material Groups be defined? Current Class Code (NIGP Class) Current Class + Sub Class (NIGP Class/Item)


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Are there Service Master equivalent records in any State System?

Will numbering of Service Master Records be internally assigned or mirror NIGP 11 digit coding?

Are there external systems that will require Material Master and/or Service Master data?

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Master Records

Master records are data records that are stored centrally in the database for longer periods of time and which are used and processed by multiple applications.

Material Master Records

Service Master Records

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Material Master

The Material Master contains information on materials that the State of Mississippi will procure and store.

This information is stored in individual Material Master Records.

The Material Master is used by all components in the SAP Logistics System.

The integration of all material data in a single database eliminates redundant data storage.

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Material Master

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Material Master

The material master has a hierarchical structure resembling the organizational structure.

Client Company Code Plant Storage Location Purchasing Organization Warehouse Number Storage Type

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Material MasterClient

Company Code

Plant

Storage Location

Warehouse

Storage Type

DWFPDPS

101 102 201 101

100 200

SecureRackShelf

CORR

101 102 201

100

Shelf Rack Refrig.

Purchasing Organization

Shelf

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Material Master

The data in a Material Master Record can be divided into two categories:

1. Data of a purely descriptive nature

2. Data that the system uses to perform a control function

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Material Master

Industry Sector

Material Types

Number Ranges

Public Sector

Chemical

Operating Supplies

Spare Parts

From Number To Number Current Number Ext.

00000000001 99999999999 00000001256

A ZZZZZZZZ

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Industry Sector

When creating a material master record, it is required to classify the material according to industry sector.

Industry Sectors have control functions in the SAP system including:

Screen Sequence

Field Selection

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Screen Sequence

Basic Data

Accounting

Purchasing

MRP

StorageWarehouse

Mgmt

Purchase Order Text

Forecasting

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Field Selection

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Material Type

When creating a material master record, it is required to assign the material to a Material Type.The Material Type has control functions in the SAP system also.

Which number range the material number is taken, is it internally or externally assigned

Which screens appear and in what sequence Which data views will be entered

When associated with a Plant, the Material Type will determine Whether changes in quantity are updated in the record Whether changes in value are updated in Financial

Accounting

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Material Type

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Material Number

A number that uniquely identifying a Material Master Record, thus a material

The number assignment allowed depends on the Material Type chosen

A material number can have up to 18 characters in the SAP system

NIGP coding structure (11 digit - Class/Item/Group/Detail)

NIGP Structure

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Create Material Master Record

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Initial Screen

Material

Industry Sector

Material Type

Copy from(reference Material)

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ViewsClient level data

Basic DataClassification

Purchasing dataPurchasingPurchase Order Text

Planning dataMRP 1 through 4Forecasting

Storage data (Inventory)Plant DataWarehouse Management

AccountingAccounting 1 and 2

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Organizational Levels

Plant

Storage Location

Warehouse Number

Storage Type

Profiles

Material Number Material Description Base Unit of Measure Material Group

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Basic Data

Order Unit of Measure Purchase Order Text

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Purchasing

MRP Type Reorder Point Lot Size Safety Stock Forecasting Models Forecast Periods

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MRP / Forecasting

Unit of Issue Cycle Count indicator Storage conditions Shelf Life data

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Storage

Warehouse unit of measure

Strategies Putaway Picking

Bin (fixed only)

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Warehouse Management

Valuation Class Price Control Price Price Unit

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Accounting

Descriptions Units of Measure Basic Data Text Internal Notes Consumption Values

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Additional Data

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Extending Material Master Record

If data has already been entered in a Material Master Record for one area, as purchasing, and additional data on the same material is required, as plant/storage, you do not have to create another material master record. Instead, you extend it to include the required information.

You also extend a Material Master Record if the same material is to be used in other organizational levels.

All Material Master Records will be replicated to the SRM system.

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Material Master Record

Additional activities that help manage the Material Master include:

Change Material Master RecordDisplay Material Master RecordDisplay Material ListFlag Material for Deletion

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Review of Material Master

The Material Master contains information on materials

The Material Master is used by all components in the SAP Logistics System.

The Material Master is made up of individual Material Master Records

Activities available to maintain Material Master records include creating, extending, changing, displaying, displaying lists, and flagging for deletion.

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Service Master

The Service Master is part of the master data within External Services Management.

External Services Management (MM SRV) is an application component within the Materials Management (MM) module. It supports the complete cycle of procurement, acceptance and invoice verification of externally performed services.

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Integration

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Service Master Record

The Service Master Record contains the description of a service

The service description is entered only once and can be drawn upon when creating requirements, reducing the frequency of errors and saving time.

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A service master record contains the following information for the unique description of a service:

Service number Service category Descriptive texts (short and long text) Base unit of measurement Material/service group Valuation class

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Activity Number Description Base Unit of Measure Material/Service Group Valuation Class Purchasing Status Long Text

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Next Steps

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Data CleansingConsolidationDescription nomenclature Units of Measure

Follow up on required key decisions not resolved in this session

Lets verify that we are on the same pageClarify any Strange JargonValidate Parking Lot ItemsRecord Key Decisions

Wrap-up

47

Questions

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+sWhat worked well today?

sWhat can we improve for future meetings and project activities?

Plus/Delta

Thank you!

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MAGIC Project

WORKSHOP MINUTES/ OUTPUT DOCUMENT

PROJECT IDENTIFICATION

Project Name CPI/Project Number Project Type (CBI, Implementation, CSS, Upgrade, Internal, other)

MAGIC Implementation

Customer Name Customer Number Planned Start/Finish

State of Mississippi 600260

SAP Customer Partner Project Sponsor Program Manager

SAP Project Director Customer Project Director Partner Project Manager

Bill Bevil Becky Thompson

GENERAL INFORMATION Workshop Title PRO_07 Material/Service Master Workshop Facilitators Jeanna Stafford, Shelley Walker, Carlos Galloway Process Owner Scribe Jon Sanford

ATTENDEES Name (including Role/Organization) Anthony Hardaway- ITS Terri Ashley- MSPB/PSCRB Preston Ware- MSH Jim Hurst- DFA/OFM Carla Hutson- AGO Logan Litchliter- DFA/MMRS Hewitt Pittman- MDAC Kristi Mullen- AGO Jeff Wheeler- MDOT Gina Eady- AGO Shelley Walker- DFA/MMRS Brenda Benson- DFA Milo Crabtree- DFA/OPTFM Jon Sanford- SAP Lois Lee- MSDH Tammy Rankin- DFA/MMRS Dell Lewley- DOC Sherriel Moore- MDAC Ross Campbell- DFA/OPTFM Rick McCarty- DOC Leah Chittom- DFA/MMRS Rani Oswalt- Supreme Court Max Cathey- DOC Mike Pearson- MDOT Tina Wilkins- ITS Terrance Jones- DFA/MMRS Jack Ladhur- STA Tammy Waltman- DFA/MMRS Sharetha Batts- DFA/MMRS Mark W. Hayden- MDOT Margaret Jordan- DFA/OFM/BFC Carlos Galloway- DFA/MMRS Kenya Gardner- MDE Retha Gregory- MDOT Kenneth M. Dixon- MSH Michael Swofford- MDE Sheila Bennet- EMSH Faye James- MSPB/PSCRB

2

SUMMARY OF THE MEETING REFERENCE DOCUMENTS FOR DETAILS REFER TO THE FOLLOWING BUSINESS PROCESS DESIGN DOCUMENT

1:00 p.m. - Meeting started with Jeanna Stafford and Shelley Walker 1:10 p.m. Jeanna begins the workshop presentation

Material Master general Data Covered Industry Type Public Sector will be used for State of MS Material Type

o Single control point for NIGP numbering o Unique numbers for ITS, MDOT (Services example given)

Numbering

Create Material Master System Demonstration (System Demonstration presented in the Workshop) Tab Field Review

Basic Data 1 Basic Data 2 Purchasing Purchase Order Text MRP 1 MRP 2 MRP 3 Forecasting Plant Data/Stor.1 Plant Data/Stor.2 Warehouse Mgmt 1 Warehouse Mgmt 2 Accounting 1 Accounting 2

Review Additional Data Tabs Units of Measure Add EAN Doc Data Basic Data Text Inspection Text Internal Comments Consumption

Additional Activities Change Material Master Display Material Master Extend Material Master Display Material List Flag Material for Deletion

Service Master General Overview (System Demonstration presented in the Workshop)

Service Number

3

Service Category Descriptive Texts Base Unit of Measure Material/Service Group Valuation Class

Create Service Master Record Screen/Field Review Basic Data Standard Service Category Time Mgmt. Purch. Data Internal Work Long Text

Data Cleansing (Suggested activities to be completed with Data Cleansing) Consolidation Description nomenclature Units of Measure

Follow up on Key Decisions Discussed Mass Create/Change options for automating the extension of materials

Virtual Plant Mass Create/Change

DECISIONS ANSWERED REFERENCE DOCUMENTS

FOR DETAILS REFER TO THE FOLLOWING KEY DECISION DOCUMENT

In which State Systems do Commodity records exist? WebProcure - Map 5 digit NIGP to Object Code (GL) in SAAS SAAS SPAHRS (Service Types = Service Master) MDOT (Signs) State Hospital (Own Internally Assigned Numbers)

o Patient Clothing o Pharmacy o Medical Supplies o Maintenance

What will be converted as Material Master Records? Need more detailed information

Define Standardization of Short Description? Need more detailed information

Will Material Master be Maintained Centrally or De-centralized? The State will maintain centrally (look at COMM table as a start)

o Who will maintain? *( We will start with looking at who has access to the COMM table in SAAS)

Change functionality at Plant level for SAP inventory Plants (needed to limit users access)

4

How will the process flow in SAP? (request an add or change / Delete and notification to Inventory managed plant)

o Centrally Maintained Material/Service Master BPP o Inventory Managed Plant BPP

How will inventory be valued? The State of MS will use Moving Average

How will Material Groups be defined? 5 Level NIGP

o Do we take all 9000+ or remove non-relevant (Space Ship) o Follow up on NIGP Class/Items to be used

Are there Service Master equivalent records? SAAS / SPAHRS Are there commodities using service #s

currently in any SOMS Systems?

Will numbering be internal or external (NIGP) More discussion required for Service Masters Will NGP Service 11-digit codes be used for Service Masters?

Current service master equivalents are alpha numberic NIGP 11 Digits (Internal Numbers) will be used for Material Master

External Systems that require Material/Service Master Data? MDOT(only example brought up) Need to define all systems to

have the interface. MDOT is the only agency slated to interface.

ID ACTION/PARKING LOT ITEM OWNER DUE DATE 01 AI - Validate Material Master Long Text is visible in SRM once

Replicated Wayne Liu 11/11/2011

02 AI Basic Option Recommendations for Process Flows for Maintenance of Material/Service Masters

Create Change Display Extend (Pros/Cons)

Jeanna Stafford

11/18/2011

03 PL Numbering of Service Master Records additional discussion required related to PL 05

Shelley Walker

1/9/2011

04 PL External Systems that require Material/Service Master Data Shelley Walker

1/9/2011

05 PL NIGP Data conversion additional discussions needed with the business owners for this topic to determine key decisions (i.e. data source for NIGP, determine what data to convert, NIGP data conversion needed for SAP system)

Shelley Walker

1/9/2011

06 PL Determine the flow the Material /Service Master data in SAP additional discussions with the business owner are required; SAP needs to provide the State with options and what the pros/cons are for the options proposed. The State will need a process to create the

Jeanna Stafford

1/9/2011

5

master records centrally and distribute them out to the agencies doing inventory.

PRO-07 Material and Service MasterWorkshop Presentation PRO-07 Material and Service MasterSlide Number 2Slide Number 3Workshop Guiding PrinciplesWorkshop Agenda Blueprint Workshop - RolesWorkshop ObjectivesWorkshop Key DecisionsWorkshop Key DecisionsWorkshop Key DecisionsSlide Number 11Master RecordsMaterial MasterMaterial MasterMaterial MasterMaterial MasterMaterial MasterMaterial Master Industry SectorScreen SequenceField SelectionMaterial TypeMaterial TypeMaterial NumberNIGP StructureCreate Material Master RecordInitial ScreenViewsOrganizational LevelsBasic DataPurchasingMRP / ForecastingStorageWarehouse ManagementAccountingAdditional DataExtending Material Master RecordMaterial Master RecordReview of Material Master Service MasterIntegrationService Master RecordService Master RecordService Master RecordService Master RecordNext StepsSlide Number 47QuestionsPlus/DeltaSlide Number 50

PRO-07 Meeting Minutes_1