1. Using Business Information Warehouse (BW) for EHS Reporting Session 3501 Carolyn Redeker, Mike Kabjian, Vinod Narayan

2. Agenda Project Drivers Business Requirements Reporting Strategy Reporting Example BW Challenges Conclusion

3. Project Drivers Need for single EHS reporting system –Both production & sales data –Reports tailored to regulatory requirements Opportunity –Company moving to SAP Sales system went live late 2002 Production systems now being developed –EHS Product Safety module fit requirements

4. Expected Benefits Time saving Increased accuracy Consistent data across many reports Framework for future reports

5. Business Requirements Company The Clorox Company makes a wide range of consumer products –Laundry Products –Water filters –Plastic bags, wraps, and containers –Auto Care

6. Business Requirements Company –Insecticides –Home Care Products –Charcoal –Food products

7. Business Requirements Company Core value: ‘doing the right thing’ –Regulatory compliance is critical –Accurate regulatory reporting is key to compliance

8. Business Requirements Regulations Sales and Production based reporting FIFRA –Production reports –Sales-based fees and assessments –Export labeling TSCA 12B –Export notification

9. Business Requirements Regulations SARA 313 –Toxic Release Inventory VOC monitoring –State and federal reports of VOC sales Recycled resin content –Plastic packages –Trash bags

10. Business Requirements – Clorox systems environment Patchwork legacy systems –Regulatory reporting has been largely manual –Painful to ensure we have all data In process of SAP implementation –Order-to-cash process went live last year –Manufacturing systems going live this year –EHS implementation going live with Manufacturing systems

11. Business Requirements – Software SAP 4.6c EHS 2.7b BW 2.1c with upgrade to 3.1 –Reports designed for BW 2.1c –System will be upgraded to 3.1 before go-live

12. What is SAP-BW? Business Content  predefined information models, (InfoSources, InfoCubes, Queries)  predefined extractors for many R/3 and non R/3 applications (but not EHS) SAP Data Warehousing Solution  R/3 and non-R/3 data extraction  automated  central control R/3other Information Analysis  user interface based on Excel  user can tailor information  drilldown capability

13. Why BW? Data warehouse –Historical data available for analysis More flexible than ABAP reports –Allows various levels of aggregation –Fewer BW reports required for same output Outputs data in spreadsheet format Could produce formatted reports –not in current scope

14. Reporting Strategy ABAP used to monitor alignment of EHS and Material Master data BW used for all regulatory reports –TSCA export notifications feasible for EHS’s MSDS shipping process, but too small to justify effort. BW cube for each implementation area –Procurement –Inventory –Deliveries –Production –Invoices

15. BW Reporting Example

16. Quantity of 1,3,4 tri-methylbenzene in all annual shipments (deliveries) from an automotive plant. Used to support Toxic Release Inventory (TRI) reporting

17. Caveats Very small subset of overall TRI solution Goal is to provide a “mass balance” via several different BW reports –What comes in (purchase orders) –What’s produced (production orders) –What goes out (deliveries) –What stayed (inventory)

18. More Caveats Lots of Clorox-specific assumptions –Custom properties tree –Bill of materials used extensively –Specialized EHS substances and data structure

19. Expected Result

20. Overall Structure 1,3,4 Trimethylbenzene Solvent Formula Automotive Product 24/8oz Automotive Product 48/4oz Automotive Product 24/12oz

21. EHS Structure 1,3,4 Trimethylbenzene Solvent List substance TRI, RQ 25,000 lbs Threshold 1.0 Raw substance 3% 1,3,4 Trimethylbenzene Solvent Raw Material (ROH) Base unit: 1 pound EHS MM MM Alloc. 1:1

22. Solvent Formula Automotive Product 24/12oz Finished material (FERT) BOM quantity: 40 cases Semi-finished material (HALB) BOM quantity: 20 gallons Raw Material (ROH) Base quantity: 1 pound Plant: U0A8 Bill of Material Structure

23. General Assumptions Reporting is plant-specific Data typically summarized for a year Data reported on component level - 1,3,4 trimethylbenzene Must report in pounds !! !@*%!

24. Assumption 1 Accurate list substance data maintained

25. Assumption 2 Accurate raw substance data maintained

26. Assumption 3 Conversion factors maintained for all relevant materials in BOM structure –Conversion to pounds (i.e. cases to pounds or gallons to pounds)

27. Assumption 4 Bill of material maintained accurately. Label Formula Water Closure

28. Step 1 Transfer EHS master data to BW using custom ABAP program

29. Step 2 Transfer EHS and BOM composition data using custom ABAP program

30. Step 3 Transfer transaction data and combine with composition data

31. Step 4 Regulatory expert executes BW query with desired parameters BW query summarizes data and adds necessary ‘attributes’

32. Challenges in Implementing BW for EH&S

33. Industry Source Data Pricing B2B R/3 (HELM) CRM Data Integration and Cleansing Process Data Warehouse SCM HR External Information Access Metadata Reporting Web Reporting Data mining DATA CAPTURE Transaction and master data source systems identified Data cleansed Data extraction procedures/methods identified DATA RETRIEVAL Query created and executed using BeX Analyzer selection criteria entered Data retrieved from cubes Report presented in Ms Excel DATA STORAGE Data model created/maintained Data extracted from source system and loaded Data transformed and stored in infocubes BW Schematic

34. BW Challenge No Standard Business Content from SAP for EH&S

35. Piggy Back approach for transaction data by using Business Content extractors for Delivery, Billing, Purchasing, Production & inventory. Substance Master data loaded through generic extractor created from infoset. Business Content DataSources for Transaction Data Delivery Billing Inventory Production Purchasing Generic Datasource for Substance Master Data BW Challenge Resolution

36. BOM Explosion from finished product material to list substance level. Finished Product Raw Material Raw Mat. Substance Listed Component Label Material BW Challenge

37. Create an ODS to capture the BOM structure. The ODS would also store the percentage of component in a higher Level item The ODS is populated by a generic datasource created from an Infoset Generic Datasource Based on ABAP Program BW R/3 BW Challenge Resolution

38. Exploding a single line of transaction data into multiple lines corresponding to quantities & amounts for listed materials BW Requirement Deliv DocItemMaterialRaw MatListed Mat. RegulationList Mat qty 9000100M1R1C1TRI30 9000100M1R1C2VOC40 9000100M1R2C3TSCA30 R/3 Transaction data Deliv DocItemMaterialQty 9000100M1100 BW Challenge

39. In the update rules for the infocube, determine all the components of the material by doing a lookup on the BOM explosion table. Split the key figures (quantities & amounts) into the corresponding quantities for the components. R/3 Delivery Item Datasource R/3 Update Rules Comm Structure BW Challenge Resolution

40. Handling key figures at different levels of granularity in one Infocube – Finished Product, Raw Material & Listed Substance key figures Deliv Doc ItemFinished Product Raw Mat Listed Substance Finished Product qty Raw Mat qty Listed Subst qty 9000100M1R1C11005030 9000100M1R1C21005020 MaterialQty M1200 Raw Material Qty R1100 Listed SubstanceQty C130 C220 Cube Structure BW Challenge

41. 1. Finished Product and Raw Material quantities are stored in separate key figures 2. When reporting on Listed substances, the listed substance key figure is used. Such queries are always filtered by Regulation 3.When reporting on Finished Products or Raw Materials the corresponding key figures are used. All three key figures are never used simultaneously in one query Deliv Doc ItemFinished Product Raw Mat Listed Subst. Reg List Listed Subst qty Raw Mat qty Mat Qty 9000100M1R1C1TRI3000 9000100M1R1C2VOC2000 9000100M1R10500 9000100M10050 Finished Product Qty M150 Raw Material Qty R150 Finished Product Report Raw Material Report BW Challenge Resolution

42. F1 Raw 1 Comp 1 Raw 2 Comp 2 F1 Raw 1 Comp 1 Raw 3 Comp 3 BOM Structure 05/01/2003BOM Structure 05/15/2003 Doc#ItemMatQty 9000100F1100 Doc#ItemMatQty 9000100F180 Handling changes in BOM structure after a transaction document (for e.g. delivery) has been created but not closed. This leads to a situation in which changes to the delivery document are based on the new structure leading to data discrepancy in BW. BW Challenge

43. R/3 Delivery Item Datasource R/3 Logic in Update rules to make sure document is Closed before loading to cube BW BW Challenge Resolution

44. BW Challenge Co-existing and removing dependencies with existing delivery, billing, production, procurement & inventory cubes in the BW production environment. This is particularly relevant because we share extractors & datasources with them.

45. BW Challenge Resolution Data is loaded into an intermediate ODS before update rules are applied in order to delink from the existing cube and also improve load performance. R/3 Delivery Item Datasource

46. Lessons Learned Get all the input –EHS reporting touches many modules –Check assumptions with process experts in all areas 80/20 rule –Don’t design for exceptions that happen 1% of the time. Focus on the data, not the regulatory form –The data is the biggest user need. Don’t try to do it all in one report. –Provide options for cross-checking and validation.

47. Conclusions We have designed a system that accomplishes our objectives. –Coherent source for regulatory reports –Report data sorted by regulation –Easier for regulatory experts to do their jobs well. Business processes will be key to ensure data and reporting integrity

48. Thank you for attending! Please remember to complete and return your evaluation form following this session. Session Code:3501