© 2008 Eventure Events. All rights reserved. SAP MDM For Utilities Florida Power & Light Story David Markle, Florida Power & Light Rob Franey, BearingPoint.

© 2008 Eventure Events. All rights reserved.

SAP MDM For UtilitiesFlorida Power & Light Story

David Markle, Florida Power & Light

Rob Franey, BearingPoint

David Markle, Florida Power & Light

Rob Franey, BearingPoint

SAP MDM For Utilities – Florida Power & Light Story

Agenda

• About FPL Group• Business Scenario and Proposed Solution• Guiding Principles• Data Standards and Governance• Paradigm Shifts• MDM Methodology• SAP MDM Architecture & SAP Components• Material Master Data Cleansing• Implementations• Questions

2


About FPL Group

• Major U.S. Utility operating in both the Regulated and Non-Regulated markets

• Present in half of the States within the U.S. with 2007 annual revenues of $15B

• Power Generation technology leader in producing electricity from clean and renewable fuels and a leader in the development and operation of wind power

3


Business Scenario

• 650,000 Materials Fleet-Wide• 2,716 Services Nuclear-Wide• 900 Resource Codes Nuclear-Wide• 77,000 Manufacturers Fleet-Wide• 100,000+ Vendor Records Fleet-Wide • Issues:

– Six different and distinct purchasing system applications– Data is trapped in site specific applications, definitions & usages– Lack of data standardization for materials & services– Service information is not stored in discreet fields but kept in non-

structured fields (e.g., Comments, PO Line Items, etc.)– Spend visibility is limited and requires manual analytics

4


Proposed Solution

• Develop enterprise wide data standards for materials and service masters

• Implement SAP NetWeaver MDM to elevate material and service data out of the application silos and provide enterprise wide visibility to material and service masters

• Define discreet Global and Local master data fields

• Develop Hierarchies & Taxonomies to depict the complex relationships of different levels of materials and services

• Develop the standards for reference data that incorporate requirements of SAP ERP and non-SAP ERP systems

• Develop a Governance structure and processes to manage the full life cycle of the data and ensure the quality, integrity, accuracy and completeness of the master data

• Provide credible master data in order to increase the reporting and analytic capabilities of the enterprise along with the appropriate level of granularity

• Automate Taxing Authority assignment for Finance & Accounting for materials and services

5


Master Data Guiding Principles• Functionality: Support existing

business processes.

• Usability: Ensure MDM infrastructure meets the needs of the user community.

• Reliability: Ensure users have access to trustworthy master data.

• Performance: Establish measuring and monitoring mechanism to continuously improve the performance of the MDM framework.

• Integrity: Establish guidelines and practices that ensure a life-cycle approach to managing master data and integrity.

• Accountability: Establish control structures (authority, responsibility and accountability) at business unit level. Take into account the institutional culture for decision making.

Functionality

Accountability

Integrity

Performance

Reliability

Usability

MDMFramework

6


Data Standards – Materials and Services

77

• UNSPSC - United Nations Standard Products and Service Codes

• Short Description - 40 character “text” classification of a material or a service.

• Long Description - This is a more defined “text” classification of a material or a service.

• M&S Number - This is the current material number that is created for each material master record in SAP for Non-Nuclear

• Manufacturer Part # - This is the number the manufacturer assigns in their systems to uniquely identify their products.

Taxonomy

MDM Number

Material Service

UNSPSC UNSPSC

Short Desc Short Desc

Long Desc Long Desc

M&S Number

MFG Part#

Adopt

Service Number


Data Standards - Material Classification

Category

Noun

Modifier UNSPSC Code

Chemicals

Oil

Hydraulic15121504

1,200 unique Material Specification Sheets for 650,000 Material Classifications across Nuclear & Non-Nuclear, Regulated and

Non-Regulated

8


Data Standards - Service Classification

Category

Name

Type UNSPSC Code

Nuclear Waste Treatment

Radioactive Containment

76131502

Industrial Cleaning

2,713 unique Service Classifications across Nuclear & Non-Nuclear, Regulated and Non-Regulated.

9


Governance StructureThe data governance structure is established so that key individuals who are required to oversee the data environment for the enterprise have visibility to critical data issues and can focus resources on the effective resolution of those issues.

The governance team is divided into the following stakeholder groups:

Data Quality AnalystsBusiness Analysts

Technical Analysts

ExecutiveSponsor

Data Stewards (End-to-end Responsibility for these Subject Areas)

Power Gen Steward

Power System Steward

NuclearSteward

TBD Steward

Governance Council

Data Quality LeaderISC Overall Program

Coordinator

Source System Manager/

Business Unit Managers

FNet Steward

Data Quality Working Group

10


Governance Approach

The Governance Team utilizes a Centralized approach and is divided into the following stakeholder groups:

• Governance Council:– Source System Managers– Business Unit Managers– Data Quality Leader (overall Governance Program Coordinator)

• Data Stewards: – End-to-end responsibility for all subject areas

• Data Quality Working Group:– Technical Analysts– Business Analysts– Data Quality Analysts

11


MDM Paradigm Shifts

“If the system lets me do it, it must be ok!”

Business Rules are resident in the experienced worker’s

head and applied when needed.

Data is local on the desktop or in formats or media where it is not

visible to the Supply Chain.

Maintain business rules, edits, and integrity in application code.

Manual triggering of business processes via phone, email,

spreadsheets, paper, local DB’s.

Old Paradigm

Prevent the user from being able to create bad data & begin the migration to a data quality

culture.

Automate the business rules, edits, referential & contextual

integrity for consistent application.

Capture the data at the source of the data when it is known &

increase the velocity of the data throughout the enterprise.

Maintain business rules, edits & Integrity rules at the database level through configuration.

Integrate Workflow & eliminate the need for manual triggering.

New Paradigm

ParadigmShifts

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Planning Phase

Deploy Phase

Standards Phase`

Design Phase

MDM Methodology

PROCESS AND TECHNOLOGY

PEOPLE ( Data Governance and Stewardship )

Define Requirements

Obtain Executive Business IT Sponsorship

Prioritize

Objectives

Develop Governance Framework

Document Roles & Responsibilities

SourceSystem

Definition

EnterpriseData

Life CycleDefinition

Identify & Develop Data Standards & Governance Program

Def

ine

Mas

ter

Dat

a M

anag

emen

tP

lan

ImplementEnterprise

MasterData

Standards&

AutomateEdits & Rules

Master D

ata Managem

ent Operations

User InterfacePanels

MasterData Analysis

(definition & usage)

Data CleansingExtraction &

Analysis

WorkflowManagement

13


SAP NetWeaver Integration Platform

MaterialRepository

•Materials•Services•Vendor•Manufacturer

SAP MDM

FPL Corporate Portal

BWVentyxAsset Suite

SAP ECC 6.0 ERP

SAP PI

Java

API

MaterialsServices

Workflow .Security, PI, Routing, Communications

Messaging XML/SOAP, Connectors, Portal

Enterprise Services Bus Integration

Workflow Engine

DB Abstraction

Data Manageri-Views

VendorsManufacturers

ServiceRepository

MDM Architecture

14


SAP Platform Components

• NetWeaver MDM v5.5

• NetWeaver v7.0 Guided Procedures for Workflow integration

• MDM i-Views for the User Interface Panels

• FPL Corporate Portal to serve up the standard SAP & Custom i-View UI Panels and Workflow

• NetWeaver PI for integration to all downstream SAP and non-SAP systems

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Material Master Data Cleansing

• Material Catalog Descriptions– Eliminate Duplicate Catalog Item Creation

• Material Classification– Support Standardization – Support Spend Analytics– Support Automated Taxing Authority Assignment

• Attribute Characteristics• Units of Measure• Dimensions• Manufacturer

– Reduced the number of Manufacturers in the system from 77,000 to between 14,000 – 17,000

• Vendors– Standardized on Corporate Vendor information and identifier

16


Implementations

• FPL Group is implementing:– Three Nuclear Non-Regulated sites:

• Seabrook

• Dwayne Arnold

• Point Beach

– Two Nuclear Regulated sites:• St. Lucie

• Turkey Point

• 250 Business Users:• Engineering

• Maintenance

• Supply Chain

17

© 2008 Eventure Events. All rights reserved.

Robert A. FraneySenior ManagerSAP MDM Practice

C 706 508 2074

[email protected]

115 Perimeter Center Place, NESouth TerraceAtlanta, GA 30346 USA

Mike LannonDirector Business Integration Services & Technology

T 561 694 4164

[email protected]

700 Universe BlvdJuno Beach, FL 33408 USA

David MarkleIT Group Manager ISC Business Services

T 561 691 7250

[email protected]

700 Universe BlvdJuno Beach, FL 33408 USA

© 2008 Eventure Events. All rights reserved. SAP MDM For Utilities Florida Power & Light Story David Markle, Florida Power & Light Rob Franey, BearingPoint.

Documents

service data

sap netweaver mdm

reference data

mdm framework

credible master data

trustworthy master data

mdm infrastructure

enterprise wide data