Copyright © 2003 Americas’ SAP Users’ Group

Waste Management – Overview and Experiences at Rohm and Haas

mySAP PLMEnvironment, Healthand Safety (EH&S)

Session Code: 3507

Presentation Overview

Dailey Tipton – Enterprism Solutions

Waste Management Module

SAP EH&S Waste Mangement Overview

News from development

Charles McCormick, PE - Rohm and Haas

Rohm and Haas Waste Management Project Strategy

Rohm and Haas Implementation Process

Lessons Learned To Date

Waste Management – Core topic in SAP EH&S

Master data

Disposal sites, waste approval / manifest, waste type, ....

Required documents for legal compliance and waste tracking

waste manifest /consignment note / transport note /BDS etc

Dangerous Goods Check integration

Partner Channels & Approvals

Pre-Approved Vendors

Expenditures tracked back to Cost Centers

Internal material flow, waste quantities generated and related costs sorted according to area and type

Purchasing integration

Comprehensive reports

“Common practices throughout the Enterprise”

Business process integration

Master-data Processing Documents

Cost control

Reports

Business process integration

MMMaterials-

management

QM Quality-

management

PPProduction

planning

SDSales and distribution

EH&S

CO/FIControlling

Finance

SAP EH&S Waste Management

SAP R/3 Modules

Invoicing

Definition of waste in SAP EH&S

Waste description Phys.-chem. properties Specific waste properties Safety data, e.g. H-criteria etc… Dangerous goods data Toxicological data

Waste

Description Units of measure Inventory lists Logistics Organizational structure Controlling

Waste-code

Specification categoryWaste codeSpec. real

substance 1-n assignments possible

Material categorywaste

Material master data

Create waste: Material master

Views

Basic data 1,2

Plant data/ stor. 1,2

Purchase

..

Org. structure

Plant

Storage location

Material category:

ABF

Stock:

Un-weighted

Purchase 2

Purchase 1

Storage plant 2

Storage plant 1

Basic data

Construction of the disposal channel

Waste Disposal Channel

Waste disposer

Waste Transporter

Waste generator

Waste code assigned to substance

Substance in SAP EH&S

MATERIAL in SAP Material master

Approval

Waste disposalWaste disposal

Waste generationWaste generation

Disposal channelDisposal channel

Vehicle

Material/Waste

Material/Waste

Waste

Depending on the concentration of „dangerous substances”, waste can be classified as „hazardous“ or „non hazardous“:

EH&S simplifies the classification based on hazardous substance characteristics H-criteria maximum concentration limits (article2)

Properties

Compositions

Substance listing

Composition: Hydraulic oil (impure – TCLP Levels)

Lead – D008 5.5Arsenic – D004 6.5Cadmium – D006 3.5

Substance assigned to material

Waste classification

Waste is often classified as Dangerous Goods

331263

Dangerous Goods information in disposal documents

Scenario I: Lean Waste Management

Lean Waste Management

Master data Partner definitionWaste approvalDisposal channel

4. Transport process5. Monitoring

1. Disposal planning

6. Reporting

Waste manifest

consignment note

Confirmation of waste manifest / consignment note

Legally required reporting

Reporting with the ABAP List Viewer:

− Reporting using external documents

− Reporting using internal documents

Further functions:

− Built in calculating and sorting function

− Export to MS-Excel

− Export as HTML-file

− Distribution via R/3-mail

Reporting I: with ALV – e.g. waste lifecycle analysis

Scenario II: integrated Waste Management

Disposal Business Processes

Inquiry / quotationPurchasing infoBasic agreement

2. Choose disposal channel 3. Disposal process

4. Delivery process5. Process monitoring

Printing of waste manifest / consignment note

Purchase order

Dangerous goods information

Subsequent entry of waste manifest

Invoice verification

Cost assignment

QuantityAccount assignmentInventory lists

Warehouse management

Legally required reportingQuantitiesCost controlling

1. Planning of disposal

6. Reporting

Master dataPartner definitionWaste approvalDisposal channel

The Benefit SAP EH&S Waste Management

Waste Management with SAP EH&S… if you work with one integrated system,

your waste disposal management process will be:

easier through a useful combination of operation steps, e.g. storage with disposal document generation

faster through a department-overlapping process transformation, e.g. return pipe of disposal documents and invoice checking

up-to-date through the shared use of basic data, e.g. addresses

confident through control authorities and plausibility checks, e.g. linking master data

Waste Management – News from development

Recalculation of waste amounts based on disposal documents

− Returned dcoumentation will be updated wihiotn system to reflect accuate dsiposal amounts

Extended fuctionality

− Large and Small quantity Generators

Extended regulatory compliance for other Countries

Creation of disposal documents from disposal process entries

− Allows creation of disposal documents w/o approval assigned

Better functionality around the handling process within the module

EH&S Waste Management

Experiences at Rohm and Haas

ASUG 2003

Rohm and Haas SAP Implementation

HumanResources

GEMS

HumanResources

GEMS

ComplementarySoftwarePartners

(Manugistics,Taxware, etc.)

ComplementarySoftwarePartners

(Manugistics,Taxware, etc.)

Finance

Business InformationWarehouse

Business InformationWarehouse

Logistics

ProductSafety

WasteManagement

Core System

EHS

SpecificationDatabase

DangerousGoods

IndustrialHygiene& Safety

OccupationalHealth CRMCRM

Rohm and Haas Project Scope

S&OP / Business Planning Demand Planning Master Production Scheduling Distribution Requirements Planning

Treasury Fixed Assets Investment

Management /Project Accounting

CRM

Program Management

Supply and Demand Planning

Purchase to Pay

Finance

- Product Safety - MSDS authoring/distribution, product labels

- Order Checks - Regulatory status - Dangerous Goods (Logistics Safety) - Waste Management - Incident Management

General Ledger / Consolidation / Taxes

Manufacturing Accounting Profitability Analysis Forecasting & Budgeting

Order to Cash Manufacturing Quality Management Shop Floor Integration Plant Maintenance Manufacturing Order Execution Toll Manufacturing

Order Management/Billing/Pricing (OTC 1)

Credit / Receivables (OTC 1)Transportation Management (OTC 2)Shipping / Warehousing (OTC 2)

Contact Management Sales and Marketing Reporting Call Reporting Opportunity Management

Activity Management Interaction History Complaints

Environmental Health & Safety

Direct Materials MRO Accounts Payable

Plastics AdditivesLauterbourg, FR

ER Emulsions - Incl PSA AdhesivesLauterbourg, FR - Mozzanica, IT - Landskrona, SW - Tudela, SP

Dewsbury, GB - New Germany, SA

ER Financials - Incl ProcurementRohm and Haas, Morton entities

NAR Shipley & Rodel Marlborough, MA - Moss Point, MS - Sunnyvale, CA - Newark, DE - N. Andover, MA

ER Adhesives Semoy, FR - Bremen, DE - Mozzate, IT - Parona, IT

ER CISVSP, FR - Jarrow, GB - Acima, CH

ER Ion Exchange ResinsJarrow, GB - Chauny, FR

ER MonomersMarl, DE

ER Inorganic Specialties Delfzijl, NL

Rollout 3 Feb 2002 - Nov 2002 GO LIVE: Nov. 1, 2002

Rollout “A” Nov 2001 - Jul 2002 GO LIVE: Jul. 1, 2002

2002

ERP Rollout Plan

Started Waste Management

Scope

NAR Coatings Louisville, KY - Charlotte, NC - Knoxville, TN - Bristol, PA - Croydon, PA

Kankakee, IL - Hayward, CA - La Mirada, CA - Lone Star, TX - West Hill, Canada

NAR CISKnoxville, TN - Bayport, TX - Kilbourn, IL

(Biocide and Blazer)

NAR Monomers(from storage tanks outward)

Louisville, KY - Bayport, TX (not including Houston Manufacturing)

APR Chemicals 1 Tuas, Singapore - Geelong, Australia - Auckland, NZ - Maptaphut, Thailand

Las Pinas, Philippines - Cilegon, Indonesia - Taloja, India – Malaysia (Sales Office)

Rollout #5 Feb. 2003 – Sep. 2003 GO LIVE: Sep. 1, 2003

NAR Financials - Incl ProcurementRohm and Haas, Morton entities

ER Shipley - Incl Shipley ER FinancialsWarrington, GB - Coventry, GB - Buxton, GB - Luzerne, CH - Castronno, IT

NAR Shipley Freeport, NY

Incl Quality Mgmt Module at selected sites

2003

Rollout #4 Aug 2002 - May 2003 GO LIVE: May 1, 2003

ERP Rollout Plan

Current State

Powder CoatingsReading, PA - Warsaw, IN - Wytheville, VA - Pulverlac, IT - Aldridge, UK

Arnsberg, DE - Castellon ES

Automotive CoatingsLansing, IL - Struhlendorf, DE

NAR Inorganic SpecialtiesElma, WA - Manistee, MI

APR Chemicals 2Beijing, China - Songjiang, China - Qingpu, China - Nagoya, Japan - Soma, Japan

Min-Hsiung, Taiwan - Hong Kong (Sales Office) - South Korea (Sales Office)

Rollout #7 Oct 2003 - May 2004 GO LIVE: May 1, 2004

NAR Adhesives & SealantsRingwood, IL - Elk Grove Village, IL - West Alexandria, OH

Ion Exchange ResinsPhila, PA

NAR Monomers & PrimenesHouston, TX

Agro FreshPhila, PA

LARJacarei, BR - Barranquilla, CO - Zarrate, AR - Apizaco, MX - Toluca, MX

APR - Electronic MaterialsHong Kong - Dongguan, China - Sasagami, Japan

Chonan, South Korea - Tao Yuan, Taiwan – Tuas, Singapore

Rollout #6 Jun 2003 - Feb 2004 GO LIVE: Feb. 1, 2004

2004

ERP Rollout Plan

Waste Management: Why for R and H?

Legacy replacement

Wixel® - throughout NAR Chemicals

Provide a common solution

Retire numerous homegrown solutions

All businesses and global

Provide integration with core R/3

Eliminate data maintenance redundancies

Leverage standard SAP enabled processes

Enable standard practices and reporting for waste management

Facilitate full manufacturing life cycle within SAP

Waste Management: R and H Applications

Enforce common waste management practices and structure globally

Cost analysis / optimization

Internal regional and corporate roll-up reporting

Trend analysis

Disposal vendor selection control

Integration with vendor master data

Integration with standard procurement processes

Enforcement of “approved vendor” use only

Inventory management record keeping

Detailed electronic records

Audit trail – time / date stamps

Waste Management: What It Isn’t

Plant floor “drum” tracking tool

SAP inventory management – virtual

Too much overhead

Warehouse management

Incremental goods movements / issues

Rohm and Haas - Manifest creation/output tool (ROI evaluation)

Too many report variations to maintain

Most often vendor supplied

Impact printing required for multi-copy forms

Management systems replacement

Auditing / inspections

“Plant floor” coordination / oversight

Define business/region level scope & strategy 1 Roll Out Preparation

ASAP RoadmapProject

PreparationBusiness Blueprint

Realization Final Preparation

Go Live &Support

Define requirements & gaps againstglobal design

Roll Out Business Blueprint2

Prepare, configure, confirm & roll out modifications Roll Out Realization3

Final Preparation4

Configuration /Development

Integration / Regres-sion Testing

Cutover Activities

R and H ASAP Implementation Methodology – Roll Out

Global Waste Management Template

R and H WM Implementation Challenges

Plant focused implementation

Paradigm shift from PS and DG central management models

Significant cross team integration (e.g., Procurement, Finance, Order to Cash, Manufacturing)

Heavy dependence on derived (not converted) master data

No delivered data management tools for business partner master data (e.g., import / export)

Waste Management R/3 Integration

Inventory Management

Storage areas

Inventory tracking (e.g., one virtual vs. model plant)

Desired reporting granularity

Inventory vs. warehouse management

Virtual vs. Real physical inventory

Manufacturing

Production waste – by products

Off-grade scenario management

Waste Management R/3 Integration

Finance

General ledger account for waste costs

Cost center hierarchy design

Cost assignment strategies

Waste Management R/3 Integration

Procurement

Outline agreement contracts

Vendor / plant specific

Costing per waste material

Vendor master data

Disposer / disposal facility design

Defined for all disposers

Implementation Strategy Decisions (Inventory models)

- Waste Generation Point

- Satellite Accumulation Area

- Waste Storage Area

- Non-hazardous Waste

PLANT

Single virtual Storage Area -

Multiple virtual Storage Area 1 - (define = physical loc)

Multiple virtual Storage Area 2 - (define = physical loc)

Multiple virtual Storage Area 3 - (define = physical loc)

Multiple virtual Storage Area (Haz) -

Multiple virtual Storage Area (Non-Haz) -

Multiple Physical WM Unit (type, bin, etc.) 1 -

Multiple Physical WM Unit (type, bin, etc.) 2 -

Multiple Physical WM Unit (type, bin, etc.) 3 -

COMPLEXITY

Implementation Strategy Decisions (Mfg models)

Non-Production WasteNon-Production Waste

Waste labeled& placed into

storage

Waste labeled& placed into

storage

Off-Grade & Production WasteOff-Grade & Production Waste

Recipe runRecipe run

ZOFGZOFGFERTSFERTS

Create waste Notification(WAE10)

Create waste Notification(WAE10)

Recipe runRecipe run

ZWSTSale

ZWSTRework

ZWSTZWST

ZWST posts to waste storage

ZWST posts to waste storage

Off-Grade

ProductionWaste

Spill, Sludge, or

Spentfilters

Master Data Requirements

Regulatory data

Waste catalogs – for jurisdictions with waste codes

Waste codes as per regional regulations

Materials

Create new type – ZWST

Alternate unit of measure – correlate between base UoM and contract UoM

Complete material master multiple views

Generators – hierarchy decisions (cost allocation / reporting

Master Data Requirements

Business partners

Generations: combination of materials and generators

Disposals: combination of materials and disposers

Transports: combination of materials and transport

Disposal channels: combination of generations and disposals within the same waste

Waste approvals: Authority waste approval # - free text Validity period start and end Waste codes

Allowed volume

Process code Partners Disposal channel(s)

Data Management Tools Development

Excel – data collection tool to produce loadable flatfiles

Waste Materials

Waste Substances

Waste Contracts

Access – data construction tool to produce loadable files for business partner data

Disposer

Transporter

Generator

Approval

R and H WM Implementation Lessons Learned

Waste Management master data development very time consuming

Data management / migration tools a must

Not an EH&S only project – close coordination with Procurement, Finance, and Manufacturing needed

Phased approach prudent – install, stabilize, continuous improvement

Waste Management Module

Suggestions For Enhancement Import / export transactions for WM business partner data

Stronger material / substance links – eliminate redundant data entry

Strengthen purchasing integration to eliminate constraints on standard purchasing processes

WAE10 Easy Entry - Extend fields available for entry, export and printing.

WAE03 Disposal Processing - Need feature to enable selection of multiple entry documents for account assignment.

WAM02 Disposal Document - Need features that enable choice of selecting single transporter among several with waste approval.

WAREP Reporting - Need Generator as key partner field in report, in addition to Disposer.

Waste Management Module

Short Comings WAA01, WAA10, WAA19 Data Creation - Manual data entry is vary

repetitive and difficult to provide training, thus tedious, for end users. Match codes to search materials for selections are very limited in fields available; for example, match codes do not have old material number.

WAA02 Generator Waste Approvals - Situations with operational areas require suppressing authority assigned number for higher level partner on partner tab for waste approval.

WAA02 Generator Waste Approvals - Waste codes cannot be searched and selected for input, rather a separate report must be first compiled to enable data entry.

WAE10 Easy Entry - Inadequate data fields to enter location and other information needed to create a picking list or other site specific needs.

WAE10 Easy Entry - Existing data fields of Accepted by and Stored in Location are not available in entry document list to report and export.

WAE10 Easy Entry - Print button does not provide a list display, but rather a variant is shown that is not useful here.

Waste Management Module

Short Comings (Cont’d) WAE03 Disposal Processing - data enter allowed using generator and

material, which does not always result in display of generation data and plant storage location (generation does provide these displays).

WAE03 Disposal Processing - Several searches for partner assignments provided in details for entry document, but none of these result in indicator flag consistently set for disposal channel established. End users must only use partner assignment on function list and open details to confirm disposal channel flag is set.

WAE03 Disposal Processing - Data entry into account is required for each separate entry document, which is repetitive and thus tedious.

WAM02 Disposal Document - OSS Note to fix OSS Notes on creating disposal documents with correct display of waste codes in disposal document.

WAM02 Disposal Document - Difficult to select a single transporter among several with waste approval.

WAM02 Disposal Document - Insufficient data provided by Dangerous Goods tab; need to display shipping name and UN number.

WAREP Reporting - The Waste Lifecycle Report allows selection of Generator as partner, but will not display a report. This only works for partner of disposer.

Copyright © 2003 Americas’ SAP Users’ Group

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Session Code: 3507