Lord CorporationProduct Safety & Dangerous Goods

IntroductionCompany BackgroundProject StrategyProject OrganizationProject OverviewProduct SafetyDangerous GoodsDevelopment & Special Reporting System Improvements Future ExpansionLessons Learned

Contents

Implementation of the Product Safety and Dangerous Goods Components of SAP EH&S as part of an integrated global project

Speakers:- John Misterovich – EH&S Team Lead (Project Overview, Strategy and Rollout)- Karen Bond – EH&S Core Team (Technical Aspects, Future Expansion, Lessons Learned)

Introduction

Lord Corp. designs, manufactures & markets:- Adhesives and Polyurethane Coatings- Specialty Chemicals- Electronic Devices & Rheological Fluids- Noise & Vibration Control Devices

Three Lord Corporation Divisions:- Mechanical- Materials- Chemical

Company Background

Corporate Headquarters in Cary, NC

Significant manufacturing & technical presence in Erie, PA

Manufacturing & technical sites in the US & other countries: Germany, UK, China, Italy, Japan, India, Brazil, Australia, Mexico

$500 million in Sales, 2300 employees

Company Background (cont’d)

Replace numerous non-integrated, outdated legacy systems

Provide basis for globalization

Initial implementation efforts within the US; subsequent global rollout

Initial Go-Live – Mechanical and Materials Divisions; Chemical to follow

Project Strategy

Process Teams

- Sales & Distribution (SD)- Finance and Controlling (FICO)- Materials Management (MM)- Production Planning (PP)- Quality Management (QM)- Environment, Health & Safety (EH&S)

Project Organization

Prime Consultants - Cap Gemini Ernst & Young

Additional Consulting – Linx-AS for EH&S

Used SAP’s ASAP Implementation Methodology- Project Preparation- Business Blueprint- Realization- Final Preparation- Go Live & Support

Project Organization (cont’d)

Project Management Organization

Organizational Change Management Team- project communication and education

Technical (Basis) Team

Project team primary location – Erie, PA

Participation of extended team members from various functional units

Project Organization (cont’d)

EH&S Team:

Project Organization (cont’d)

Lord

• John Misterovich (Team Lead)• Carla Matczak (IT)• Karen Bond (SME)• Joyce Nestor (SME)• Kristy Shingledecker (SME)

Consulting

• Jack Gibbs, consultant, (Linx-AS)

• Jeff Frye, QA,

(President, Linx-AS)• Rick Tanner, QA,

(SAP America)• Linx-AS Competency Center,

remote development

Project OverviewW

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Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar2002 2003

MPDMD

CPD

GlobalBlueprint

ProjectPrep.

ProjectPrep.

BusinessBlueprint

BusinessBlueprint Realization

(Design & Development)

Realization(Design & Development) Final Preparation

(Testing and Training)

Final Preparation(Testing and Training)

BusinessBlueprint

BusinessBlueprint Realization

(Design & Development)

Realization(Design & Development) Final Preparation

(Testing and Training)

Final Preparation(Testing and Training) Go live

& Supp

Go live& Supp

MP

DM

DC

PD

Go live& Supp

Go live& Supp

Lord EH&S Core Team with Linx-AS support - Extended Team involvement

Linx-AS- General Support and Issue Resolution- Configuration Guidance- Development Support- Knowledge Transfer

Project Overview (cont’d)

Expert Rules– Internal Development with Linx-AS support

Regulatory Data Feed from Ariel

Phrase Library – Lord internal, SAP and Ariel

Project Overview (cont’d)

Deliverables

Product MSDS’s and labels- multi-lingual

TSCA Checks and Holds- Purchase Orders- Process Orders- Sales Orders

TSCA Export Notification

Project Overview (cont’d)

Deliverables (cont’d)

DEA Compliance

Dangerous Goods Checks and Holds- Bill of Lading Output

Lord Facility Environmental Reporting- SARA 313 – Form R- SARA 311/312 - Tier II- PA 165

All of the above expanded to all LORD divisions

Project Overview (cont’d)

Lord Legacy EH&S

Positives

Functional Regulatory Formula Database

Existing TSCA, DEA hold system

MSDS and Label generation system

Project Overview (cont’d)

Lord Legacy EH&S (cont’d)

Negatives

DG only partially effective – not multi-modal or package specific

Regulatory System not in place for all divisions

Recently acquired businesses not integrated

Project Overview (cont’d)

Lord Legacy EH&S (cont’d)

Negatives

MSDS distribution and monitoring labor intensive

Limited integration of regulatory &business systems

Project Overview (cont’d)

Challenges

Limited Resources - Budget: fixed bid project with CG&Y

Aggressive Timeline

Did not use Workflow

Legacy had customized solutions

Moving from self sustaining group to enterprise controlled system

Project Overview

Existing Legacy System - raw material and formula management capability

Legacy Data Issues - Significant duplication of data records

- Product Formulas and intermediates used in other finished good formulas

- Batch size and unit of measure issues

Product Safety

Legacy Data Issues (cont’d)

- Rule functionality allowed for flexibility

- Standard reports available but changes required special vendor development

- Formula changes required plant notification and manual changes

Product Safety

SAP System

Migration Challenges– Security Issues/Authorization Groups– Use of identifiers– SAP vs. LORD specific characteristics– Tree design/required data elements– Integration of Ariel Data– Use of Lord defined compositions– BOM-BOS: improvement, paper-based legacy

solution previously

Product Safety

Label & MSDS Issues Use of WWI templates

– Ariel Data/multiple sort sequences – Multiple Templates vs. Validity Areas– Use of Parameter Values– Label sizes– Hardware issues– Kit packages– Go-live issues; generating documents

Product Safety

Expert Rule Development

Rule system in place in Legacy System – TSCA and Global Inventory Rollup – Air Quality information– Some Phrase Defaults based on rules

SAP system – All of above– Compositional information– Additional phrase rules– Integration of Ariel Data

Product Safety

Existing Legacy System – no capability to classify at the

container/mode of transport level

Legacy Data Issues – data gaps: not all business areas were

integrated into the legacy system

– Bill of Lading: limited link to SD

Dangerous Goods

SAP System Data Challenges

– Go-live - DG filling

– DG information for kits/combination packages

– MSDS transportation guidance

Dangerous Goods

TSCA Review – 3 tiered approach

- Process Orders

- Sales Orders

- Purchase Orders

Development

Process Orders – TSCA Review

– Review of Materials with EHS link– Material and BOM raw material review – Bulk manufacture (HALB’s) reviewed– Process order can not be saved until TSCA

hold cleared– Development program allows tracking of PMN activity

Development

Sales Orders – TSCA Review

– Review of Materials with EHS link– Material with TSCA “N” blocked for delivery – Sales order can be saved but delivery block must be cleared by EHS in order to further process order

Development

Purchase Orders – TSCA Review

– Review of Materials with EHS link– Material with TSCA “N” blocked for purchase – Purchase order can be saved but can not be printed; received material can not be added to inventory

Development

TSCA 12(b) Reporting

– Links to Ariel Data– Program in real time – History preserved– Query Capability– Report Capability

Development

DEA Checks

– DEA Controlled Substances– Internal transfers between Lord facilities

excluded – One time review of customer use

Development

Global Inventories

– Track volume of “new chemicals” shipped to countries with volume

driven inventory schemes – Sales orders can be in various units of

measure – Tracking time period flexible– Data exportable to EXCEL or other

Windows programs

Special Reporting

Facility Environmental Reporting

- Track chemicals in plant inventory for SARA 311/312, SARA 313 and other

reporting requirements (PA 165)– Tracking time period flexible– Data exportable to EXCEL or other

Windows programs

Special Reporting

Expert Rule Consolidation

Nightly program that handles specification changes

Flexible reporting through use of WWI report tool, Crystal Reports or SAP Query

System Improvements

SAP R/3 ExpansionGlobalization of SAP – Japan, Brazil, Europe

Expansion of Multi-language MSDS’s

Clean Air Act Emissions Tracking

Future SAP R/3 EH&S- Global Label Management- Waste- IH&S

Future Expansion

Up-front understanding of SAP data formats, to ensure proper conversion. Specifically, Units of Measure in Compositions

Ensure close integration relationship with SD, MM, PP during the project lifecycle.

Quickly establish the source of all reporting data elements and define a process to create these

Lessons Learned

Begin work within the system as soon as possible

Begin integration testing at least 2 months prior to Go-Live

Keep the number of SAP clients to a minimum

Lessons Learned

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Session Code: [3506]