Celebrating twenty years of Integrated Business Analytics Solutions

ENTERPRISE PERFORMANCE MANAGEMENT | BUSINESS INTELLIGENCE | BIG DATA

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Program Agenda

Speaker Introductions

Business Background & Challenges

Solution Overview

Business Benefits & Lessons Learned

Future Plans

Q & A

About PPG

Source: IR.WESTROCK.COM / Presentations – Jefferies Conference Presentation – 8/15/20153

PPG Architectural Coatings US & Canada

Source: IR.WESTROCK.COM / Presentations – Jefferies Conference Presentation – 8/15/20154

• Decorative and functional products– Paints– Stains, lacquers, primers and clears

• Interior and exterior coatings• Residential and commercial• Professionals and do-it-yourself consumers• Distributed through a variety of channels

– Home Centers– Independent Dealers– Company Owned Stores

PPG AC Key Facts

• Multibillion dollar business unit in PPG• 900 company owned stores• 6,000 independent dealer points of sale• 8,000 home center points of sale• >100,000 customers• 14 manufacturing locations• 22 distribution centers

Architectural Coatings Definition

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Current State Financial Systems Overview

• Essbase is key analytical and reporting tool for 100+ member finance organization

• SAP cost centers and accounts contain bare minimum information to produce and ship paint

• All additional information required for reporting and analysis is handled in Hyperion

• Entity hierarchy is backbone of system and has frequent changes to reflect business operations

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Financial Systems Dimensions UsageDimension Definition # of MembersEntity Profit/Cost centers organized by business line, function,

plant, DC individual stores, regions, zones12K level 0, 14K total

Account General ledger account, rolling up to “Prime” account and P&L line item. Concatenation of several SAP fields

11K total

Channel Business line 20Measures Base, Override, Total 5Scenario Actual, Budget, Forecast 26Currency US$, CA$, Local, constant currency 11Period Month 12Year Year 11Version Forecast scenario, working, final 29

99% of maintenance

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Financial Systems – Critical AttributesAttribute Definition Frequency of new members

requiring attributeStore Type Year store opened or acquired: New14, New 15, Acq 14,

Acq16, CoreRare

On EntityAcquisition Acquired stores tagged with name of acquisition Rare

On EntityTrial Balance Name of trial balance of entity for reconciliation purposes Constant

On EntityReporting account

Summarize GL accounts to single SAP account: “Account-Trading partner-profit center type – cost center function code” (23 characters) ->> “8 digit GL account”

Constant On Account

Account and entity hierarchies are most important and most difficult to maintain – focus of DRM automation

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Entity Dimension – 14K members8K Members

Most dynamic and important

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Entity Dimension – Stores Channel Detail

Zone Level: 1 of 8Market Level: 1 of 70

Market Sales Reps

Market Admin/Support

Individual Store: 1 of 900

Level 0 Store: 1 of 3K

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Program Agenda

Speaker Introductions

Business Background & Challenges

Solution Overview

Business Benefits & Lessons Learned

Future Plans

Q & A

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PPG DRM Objective

1. Improve process to maintain highly complex and dynamic outlines in Hyperion Essbase and Planning

2. Reduce time and improve accuracy of outline maintenance

3. Use time savings to reallocate skilled resources to more advanced activities – design, enhancements etc.

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Manual:Create file with SAP

detail

Manual: Extract Essbase

outline

Manual:Load both to MS

Access and identify “kick outs”

Manual: Run cost center

report to get aliases

Manual:Use MS Excel to

create import file

Manual:Add alias, UDAs,

attributes

Manual:Load to EPMA

Manual:Refresh Outline

Manual:Create mapping in

FDM

Manual:Identify parent

Process to Add Entities and Accounts – Before DRM

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Solution Architecture for PPG AC

SAP

PPGHFM

MgmtRptg

BillingOracle

SG&A Rev & Margin

PlanningHdct

InvEconCust Rptg

CustProfit

HPCM

DRM

Entity Dimension, Account Dimension & Related Attributes

Product, Customer & Related Attributes

New CC, PC, Account New SKU, New Ship-To

Phase 2Legacy

Financial Hierarchies& Analytical Attributes

Operational Hierarchies& Analytical Attributes

Phase 1

FDMEEMaps

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Process Using DRM with Ranzal Configuration

Automated Script 11. Directly connects to SAP2. Compares entities/accounts in SAP

with current outline3. Loads “kickouts” into DRM with

parent “To be assigned”4. Assigns alias5. Assigns 95% of attributes and UDAs

a. Trial balance (entity)b. Currency (entity)c. Reporting account (account)

Automated Script 21. Moves outline from DRM to SQL Tables

Automated Script 31. Loads outline to applications

Manual Step1. Assign to parent (appx. 1 minute total)

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Timeline for DRM Phase 1/Phase 2

Feb: Hyperion Environment Upgrade.

Mar: Planning & DRM for Financial Master Data Design (Phase 1)

May – Jun: Build Phase for Planning & DRM Phase 1

July: Testing for Planning & DRM Phase 1

August: Go-Live for Planning & DRM Phase 1

Sep: HPCM & DRM for Operational Master Data Design (Phase 2)

Oct-January: Planned HPCM & DRM Project Delivery

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Team CompositionExecutive Sponsor

Sr. VP Finance

Financial Systems Manager

DRM FDMEE Hyperion SAP

(1) Consultant (1) Consultant (1) Architect (1) Manager

EngagementManager

(1) IntegrationSpecialist

Key: Blue = PPGGreen = Ranzal

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Program Agenda

Speaker Introductions

Business Background & Challenges

Solution Overview

Business Benefits & Lessons Learned

Future Plans

Q & A

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Time SavingsBefore DRM – 2 hours

• Entity: 45 minutes• Account: 75 minutes• All steps manual

After DRM – 20 minutes• Entity: 10 minutes• Account: 10 minutes• All steps automated except for assigning entity parent

100 minutes saved each run * 10 times run per month = 1,000 minutes (nearly 17 hours per month)

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Lessons Learned

Successes:Phased Approach to DRM Implementation – initial focus on Financial Hierarchies & Attributes

DRM Accelerates the delivery of other EPM Modules (Planning, HPCM) through automation

Edgewater Ranzal Consultant expertise and partnership

Opportunities:Introduce Additional Dimensions and Attributes for future analytical applications

Operationalize master data request workflow process with DRG

Feed master data from DRM to non-Hyperion systems (e.g. SAP)

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Program Agenda

Speaker Introductions

Business Background & Challenges

Solution Overview

Business Benefits & Lessons Learned

Future Plans

Q & A

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Future Plans – Product Hierarchy

Future State• Product segment (Paint, Stain)

• Brand (Glidden, Olympic)• Sub-brand (Diamond, ONE)

• SKU

Current StateSAP SKU contains material number and other manufacturing information. It does not contain

any information related to brand or product type.

Attributes required for analysis and reporting maintained in DRM. Will support in flight HPCM implementation.

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Future Plans – Customer Hierarchy

Future State• Parent customer (Spectrum Paint

• Customer location (Spectrum Paint – Williamsburg, VA) • Ship-To (Job Site of Spectrum Paint customer)

Current StateCustomers have many relationships that are unable to be effectively maintained in SAP:

Ship to, Customer, Parent, Banner, Buying group

Hierarchy for reporting and analysis maintained in DRM. Will support in flight HPCM implementation.

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Program Agenda

Speaker IntroductionsBusiness Background & Challenges

Solution OverviewBusiness Benefits & Lessons LearnedFuture PlansQ & A

Q&A

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