Balancing Standard, Custom, and Future Solutions for Product Safety and Stewardship at Ashland Inc.
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1 Balancing Standard, Custom, and Future Solutions for Product Safety and Stewardship at Ashland Inc. May 17, Registered trademark, Ashland or its subsidiaries, registered in various countries Trademark, Ashland or its subsidiaries, registered in various countries
2 Presentation Overview Part I: Introduction to Ashland Part II: De-customizing the system and moving back to standard functionality to support product safety Part III: Solutions to support various product compliance requirements using GTS, GLM, SVT, SPRC, and completely custom functions Part IV: Co-innovation with SAP for product compliance (C4PSS) as well as REACH and REACH-like regulations 2
3 Part I: Introduction to Ashland Responsible Care goals: Operate with zero incidents Ensure compliance Reduce environmental, health and safety impact 3
4 Ashland s SAP Environment ERP system SAP ERP 6.0 (business suite), EhP7 Recipe Management from PLM Desire to implement S4/HANA in the future Analytics SAP BusinessObjects and BI GTS for trade compliance (in progress) Desire to have BI w/ HANA in the future 4
5 Ashland s SAP Environment for EH&S 5
6 Part II: De-customizing the system and moving back to standard functionality to support product safety 6
7 Origins of Customization in Ashland s SAP EH&S Holdovers from legacy systems Functions (the mainframe or spreadsheet or did it THIS WAY) Data management Custom verbiage (i.e. phrases) Identification hierarchy Lack of function in early SAP delivery led to homegrown solutions Desire for quick fixes led us away from best practices in some cases 7
8 Obligatory Customization Multiple data streams / legacy impact Two or more regulatory data providers Rule default phrase map = 1100 phrases With data provider additions => 3200 phrases With custom phrases (legacy) => 3900 Data providers do not always fit expert rules obtained from a different provider Results in custom-developed parse rules to move data Purchased templates also depend on specific identifiers and regulatory lists for function 8
9 Consolidating to a Single Supplier for Regulatory Data How to proceed? Primary data on products and components = foundation of the system Rip out foundation or build a new house from scratch? Phased versus big bang approach? Return to SAP standard with best practices is critical Data and structure (i.e. 3-tier model) Rules Templates Ashland s system is very customized currently! 9
10 Business Case for a Single Supplier of Regulatory Data COMPLEXITY Reduced Complexity = Increased Capacity single supplier delivering data with compatible rules and templates CAPACITY Increased Compatibility with Implemented Standardization Annual reduction of system maintenance of 40-50% Increased flexibility for future system upgrades and company acquisitions and divestitures EXPECTED GAINS IN CAPACITY 10
11 Getting Back to Standard: Remove Legacy Phrases Phrase-by-phrase conversion to SAP ERC delivered phrases For example, 7 custom phrases that meant Eye Irritation Cat 2 Significant work with toxicology, classification and hazard communication teams, as well as communication with the business Delivers cost benefit going forward Rule mappings can be used as delivered versus intense manual updates to each rule with each release Significant cost savings on translations 11
12 Getting Back to Standard: Remove Legacy Function Replace custom rules with SAP ERC standard function Rule-by-rule basis For example, notification status rule was installed as based on Exact Comp Many of Ashland s suppliers simply state all components on TSCA Newer inventories require install as based on Standard Comp Switch requires massive data update due to proprietary substances not containing notification status data currently Some function cannot be moved at this time More recent versions of the Composition rule converts UOM for small values Unidentified custom legacy reporting can t handle ppm, ppb, etc designed to assume % 12
13 Getting Back to Standard: Redesign Legacy Process Legacy Hazard assessment Custom property with High, Med, Low Hazard For endpoints such as Eye Irritation Replace with process that references standard data Review of Health Hazard Statements from standard SAP ERC rule Regionally appropriate GHS-based assessments 13
14 Getting Back to Standard: Significant Benefits Ability to use purchased template / rules / content quickly Less overall time to update regulatory architecture More rapid training of end-users (standard content / architecture) More consistent hazard communication globally 14
15 Part III: Solutions to support various product compliance requirements using GTS, GLM, SVT, SPRC, and completely custom functions 15
16 Global Trade Services (GTS) GTS will help Ashland with trade compliance SPL & embargo HTS & ECCN Export docs and filings Import controls, duties, and filings Trade preference (e.g. NAFTA) Touchpoints to SAP EHSM (Product Safety) SVT enabled checks integrate with GTS Import / export legal controls can be leveraged beyond trade compliance 16
17 SD Exclusions Material listings / exclusions are standard SAP SD functionality Exclusions are materials that cannot be sold to a specific customer Ashland created new key combinations for exclusions Block sales from or to a specific country or region Block purchasing, stocking, or sale by a specific Ashland facility Ashland uses mainly to control the movement of biocides based on registrations 17
18 Foreign Trade Legal Controls Foreign trade legal controls are standard SAP SD functionality Legal control blocks order if corresponding customer license doesn t exist Originally designed for ECCNs requiring a customer license (trade compliance) However, can be widely configured, including for domestic controls More recently replaced by advanced legal controls delivered with GTS Ashland uses legal controls to support product stewardship as well: Drug precursors Chemical Weapons / Dual Use CITES & Agricuture REACH Strictly Controlled Chemicals NY Bulk Tank Requirements and more 18
19 Global Label Management 19
20 Expanding Scope of Ashland s Global Label Program (GLP) Continually increasing scope poses a challenge to achieving steady-state and improving operational support 20
21 Substance Volume Tracking (SVT) Ashland uses SVT today REACH Global Chemical Inventory (DSL) compliance in Canada Ashland is expanding the use of SVT REACH-like regulations (e.g. K-REACH, KKDIK) Global notification (Switzerland, Taiwan, ECU, China, etc ) US EPA CDR SVT was designed for REACH Highly configurable for other regulations but some problems are encountered Doesn t handle multiple regulations in a single country / region very well Some customization was required to overcome challenges 21
22 SAP Product and REACH Compliance Module (SPRC) Ashland purchased SPRC years ago Primary driver: REACH end use management and analysis Many other uses / benefits were suggested in the business case Persistent confusion about capabilities beyond REACH For example, product compliance for discrete industries Product Compliance functionality not directly applicable to process industries Internal Debate Avoid highly complex custom solutions versus Make SPRC into a full blown product compliance cockpit for EH&S 22
23 SPRC: Supply Chain Communication and End Use Coverage 23
24 SPRC: Changing Industry Standards Make REACH Requirements a Moving Target After SAP released SPRC, industry changed direction with respect to the supply chain communication model Large scale supply chain communication found not to be practical New model: industry groups to gather to-be uses for entire industries Suppliers work with industry groups to determine which uses to register Proactive supply chain communication becomes unnecessary First communication happens through extended safety data sheet (esds) Gaps in covered uses are addressed retroactively 24
25 SPRC: Custom Use Coverage Check REACH team still wanted to use SPRC as an end use coverage analysis tool The process has changed, so the functionality had to change Details in diagram to the right are not important; point is that it was complicated! 25
26 Completely Custom Solutions for Reporting and Ad Hoc Query Reporting / ad hoc query is the biggest area where Ashland has found need for completely custom solutions No standard BW info cubes / extractors for SAP EH&S (product safety) Standard reports exist (e.g. SARA) but do not cover all reporting needs Ability to create ad hoc queries is important to Ashland Large substance database (millions of data points) Reporting / analytics processes have been cobbled together using various approaches Front end tools (e.g. output variant) SE16 / SQVI Data import / export process (data editor) Custom ABAP Reports (via custom t codes) Qlikview 26
27 Fusion Architecture (Near Term) 27
28 Fusion Architecture with HANA (Longer Term) 28
29 Part IV: Co-innovation with SAP for product compliance (C4PSS) as well as REACH and REACH-like regulations 29
30 Co-Innovation: C4PSS C4PSS = next gen SAP for product safety and stewardship Early stages of development Current release provides basic compliance checks Intuitive and mobile friendly interface Co-Innovation Group 7 companies including Ashland Periodic on-site workshops Peer review by 20+ companies Great opportunity Networking / benchmarking Influence future SAP software releases Familiar with current and future releases of latest functionality 30
31 Co-Innovation: REACH and REACH-like Regulations Next generation solutions for REACH and REACH-like regulations? Successor to SPRC 2.0 for REACH? Lead component identification and esds authoring for mixtures? Functionality to support REACH like regulations (e.g. SVT / SPRC / Other) K-REACH KKDIK (Turkey) Taiwan NCS Notification etc Less mature co-innovation than C4PSS Very early stages (brainstorming rather concrete development planning) SAP is engaging customers for input via teleconference / survey 31
32 Questions? 32
33 33
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