GOAL OF ORGANIZATION STRUCTURE WORKSHOP  Obtain an Understanding of the Customer’s Key Business Processes  Define the Chico Creek Brewery’s Organization Structure in SAP based on those Business Processes R  SAP America, OS.PPT - 10/13/97, Slide AGENDA Definition of Organization Structure  Customer High Level Business Overview  Business Process Review  Financial/Asset Management  Sales Logistics  Procurement, Logistics Planning  Define the Organizational Elements in SAP based on the Chico Creek Brewery’s Business Processes and Reporting Requirements  Document the Company’s SAP Organization Structure R  SAP America, OS.PPT - 10/13/97, Slide Integrated Business Process Review Business Overview  Company’s Mission Statement  Markets  Customer Base  Products and Services  SAP Implementation Drivers R  SAP America, OS.PPT - 10/13/97, Slide MISSION STATEMENT  Our mission is to successfully implement SAP R/3 at the Chico Creek Brewery in a timely, professional manner so that our client can realize a faster and more productive way to run their business processes  We intend to create a sustainable competitive advantage for Chico Creek Brewery, as well as, substantial profitable results through the implementation of SAP R/3 R  SAP America, OS.PPT - 10/13/97, Slide Integrated Business Processes Overview Procurement Logistics Planning Sales Logistics Production Finance / Asset Management R  SAP America, OS.PPT - 10/13/97, Slide Integrated Business Process Overview Production ForeForecast cast Sales SalesOper Oper Planning Planning MPS MPS MRP MRP Manufacturing Manufacturing Execution Execution Order Order Settlement Settlement Inventory Inventory Capacity Capacity Costing Costing Financial Financialand andManagerial ManagerialReporting Reportingand andAnalysis Analysis R  SAP America, OS.PPT - 10/13/97, Slide Organizational Structure Review Organizational Structure 3000 US Chico Chico Creek Creek Brewery Brewery Business Area 3000 3000 US US#1 #1 Purchasing Organization Division/ Plant 90 90 Pale PaleAle Ale Division 93 93 Stout Stout 3000 3000 US US 4000 4000 Australia Australia 3000 3000 US US 3000 3000 US US Sales Organization Distribution Channel 93 93 Stout Stout 90 90 Pale PaleAle Ale 03 Wholesale 90 Pale Ale  SAP America, OS.PPT - 10/13/97, Slide 93 Stout R Finance Management /Accounting & Reporting FINANCIAL ACCOUNTING (FI / AM) SD MM FINANCIAL REPORTING (FI) COST CENTER ACCOUNTING (CCA) ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ASSET MANAGEMENT MANAGEMENT REPORTING (CO) INTERNAL ORDER ACCOUNTING (OPA) GENERAL LEDGER NATURAL ACCOUNT PROJECT ACCOUNTING PRODUCT COSTING PROFIT CENTER ACCOUNTING (PCA) PROFITABILITY ANALYSIS (PA) R  SAP America, OS.PPT - 10/13/97, Slide Organizational Elements - FI Company  Represents a legal/tax entity - Where you legally represent the financial events of transacting business?  Arms Lengths Transactions  Level of External Reporting or Legal Sets of Books R  SAP America, OS.PPT - 10/13/97, Slide Organizational Elements - FI Companies for Name of Customer  Company Codes: Identify the proposed company codes if any for customer being evaluated  Benefits: Identify the benefits of recommended usage of company codes  Costs: Identify the costs of recommended usage of company codes  Issues: Identify any open issues/questions R  SAP America, OS.PPT - 10/13/97, Slide 10 Organizational Elements - MM Plant for Chico Creek Brewing Co  Plant: There are three plants: brewing, tap room and retail  Benefits: Being able to keep track of the profits and costs of each plant R  SAP America, OS.PPT - 10/13/97, Slide 31 Organizational Elements - MM Storage Location  A location within a plant where inventory is stored R  SAP America, OS.PPT - 10/13/97, Slide 32 Organizational Elements - MM Storage Locations for Chico Brewing Co  Storage Locations: Brewery and tap room will have two separate storage locations: one for “dry” goods and one for “wet” or cold goods  Benefits: Assets and incurred costs can be tracked by the different storage locations R  SAP America, OS.PPT - 10/13/97, Slide 33 Organizational Elements - SD Sales Organization, Distribution Channel and Division Chico Chico Creek Creek Brewing Brewing Company Company 3000 US 4000 4000 Australia Australia 3000 3000 US US Sales Sales Organization Organization 03 03 Wholesale Wholesale Distribution Channel Division 90 90 Pale Pale Ale Ale 93 93 Stout Stout R  SAP America, OS.PPT - 10/13/97, Slide 34 Organizational Elements - SD Sales Organization  A representation of a selling unit responsible for product liability and other claims made by customers  Each business transaction is processed within a sales organization  Master Data Maintenance for Customers, Pricing at Sales Organization Level  Sales Organization Assigned to a Company Code where Sales Revenue is Recognized (Links SD & FI)  Plants Assigned to a Sales Organization  SAP America, OS.PPT - 10/13/97, Slide 35 R Organizational Elements - SD Sales Organization for Chico Creek Brewing Company  Sales Organization: United States, Australia, Canada, Japan, Singapore, Tap Room, Catering, Bakery, Merchandise  Benefits: To produce statistics for each of the sales organizations  Costs: A manager will be required to head up each sales organization, therefore, costs may be slightly higher R  SAP America, OS.PPT - 10/13/97, Slide 36 Organizational Elements - SD Distribution Channel  Used to define how different products reach consumers (I.e retail, wholesale, or direct sale)  Relevant Master Data such as price, minimum order qty, and ship-from location may differ between each channel  Each Sales Order travels through one Distribution Channel  Distribution Channel assigned to a Sales Organization (I.e direct sale for Merchandise items) R  SAP America, OS.PPT - 10/13/97, Slide 37 Organizational Elements - SD Distribution Channels for Chico Creek Brewing Company  Distribution Channels: Wholesale, Direct Sale, and Retail  Benefits: We can determine the profitability of each channel within a specified sales organization  Costs: By having additional distribution channels (wholesale, retail), we will incur transportation costs R  SAP America, OS.PPT - 10/13/97, Slide 38 Organizational Elements - SD Division  A way of Grouping Materials, Products, or Services  Assign each product line to a particular division  Define customer-specific agreements for each division, including partial deliveries, pricing, and payment terms R  SAP America, OS.PPT - 10/13/97, Slide 39 Organizational Elements - SD Division for Chico Creek Brewing Company  Division: types of beer, menu items, souvenirs, and services provided by catering  Benefits: To keep track of how well each product sells within a given area  Costs: By making the divisions equal to each type of product and service, the divisions will become more difficult to configure and maintain R  SAP America, OS.PPT - 10/13/97, Slide 40 Organizational Elements - SD Sales Area  Sales Area is a Combination of: Sales Organization  Distribution Channel   Division  All customer data relevant for sales is defined according to the sales area (I.e can specify for each customer how pricing is done in each sales area)  Links the Order Entry System(SD) to the Financial/Managerial System(FI/CO) R  SAP America, OS.PPT - 10/13/97, Slide 41 Sales Area for Chico Creek Brewing Company US Wholesale Tap Room Hats Tee shirt Sweatshirts Stout Pale Ale Porter Hefe Weisen Seasonal Stout Pale Ale Porter Hefe Weisen Seasonal Direct sale Retail Merchandise Stout Pale Ale Porter Hefe Weisen Seasonal  SAP America, OS.PPT - 10/13/97, Slide 42 R Organizational Elements - SD Sales Organization, Distribution Channel and Division Chico Chico Creek Creek Brewing Brewing Company Company 3000 3000 US US 3000 3000 AU AU 03 Wholesale 90 90 Pale Pale Ale Ale 91 91 Hefe Hefe 5000 5000 Singapore Singapore 4000 4000 Japan Japan 04 Direct Sale 92 92 Porter Porter 5000 5000 Canada Canada 8000 9000 8000 9000 Tap Rm Catering Tap Rm Catering 1000 2000 1000 2000 Bakery Merchandise Bakery Merchandise 05 Retail 93 94 93 94 Stout Seasonal Stout Seasonal 04 Direct Sale 60 60 Shirts Shirts 70 70 Sweatshirts Sweatshirts R  SAP America, OS.PPT - 10/13/97, Slide 43 80 80 Hats Hats Human Resource Structure H U M AN R ESO U R C E M ANAG EM EN T D EPAR TM ENT D IR E C T O R H u m a n R e s o u rc e M a n a g e r AN ALYST C o m p e n s a t io n & B e n e f its ( H R I S ) ( P a y r o ll, B e n e f it s ) AN ALYST E m p lo y m e n t & R e c r u it in g (E E O C , A A ) AN ALYST D e v e lo p m e n t ( T r a in in g , O D , S a f e t y & H e a lt h ) P E R S O N N E L A S S IS T A N T ( G r a p h ic R e p o r t s , E v e n t s P la n n in g ) ( A c t u a lly A s s is t s A ll A n a ly s t s ) R  SAP America, OS.PPT - 10/13/97, Slide 44 Organizational Structure Review Organizational Structure 2000 US Chico Chico Creek Creek Brewery Brewery Business Area 3000 3000 US US#1 #1 Purchasing Organization Division/ Plant 90 90 Pale PaleAle Ale Division 93 93 Stout Stout 2000 2000 US US 3000 3000 Australia Australia 2000 2000 US US 2000 2000 US US Sales Organization Distribution Channel 93 93 Stout Stout 90 90 Pale PaleAle Ale 03 Wholesale 90 Pale Ale  SAP America, OS.PPT - 10/13/97, Slide 45 93 Stout R [...]... purchasing organization R  SAP America, OS.PPT - 10/13/97, Slide 27 Organizational Elements - MM Purchasing Organization for Chico Creek Brewing Co  Purchasing Organization: Each company will have its own purchasing organization  Benefits: A purchasing organization is assigned to a cost center where inventory is tracked and costs are incurred R  SAP America, OS.PPT - 10/13/97, Slide 28 Organizational... Sales Organization  A representation of a selling unit responsible for product liability and other claims made by customers  Each business transaction is processed within a sales organization  Master Data Maintenance for Customers, Pricing at Sales Organization Level  Sales Organization Assigned to a Company Code where Sales Revenue is Recognized (Links SD & FI)  Plants Assigned to a Sales Organization... 10/13/97, Slide 33 Organizational Elements - SD Sales Organization, Distribution Channel and Division Chico Chico Creek Creek Brewing Brewing Company Company 3000 US 4000 4000 Australia Australia 3000 3000 US US Sales Sales Organization Organization 03 03 Wholesale Wholesale Distribution Channel Division 90 90 Pale Pale Ale Ale 93 93 Stout Stout R  SAP America, OS.PPT - 10/13/97, Slide 34 Organizational... Slide 18 Organizational Elements - CO Cost Centers  Departmental Breakdown of your Legal Entity Structure  Lowest Level of Organization where you want to Collect and Analyze Costs/Departmental Performance  Departmental Budgets and Expense Analysis  Interdepartmental Cost Allocations  Each Cost Center is Assigned to a Profit Center, which is Assigned to a Company Code  Cost Centers are Structured... America, OS.PPT - 10/13/97, Slide 35 R Organizational Elements - SD Sales Organization for Chico Creek Brewing Company  Sales Organization: United States, Australia, Canada, Japan, Singapore, Tap Room, Catering, Bakery, Merchandise  Benefits: To produce statistics for each of the sales organizations  Costs: A manager will be required to head up each sales organization, therefore, costs may be slightly... Porter Stout Pale Ale Hefe Weisen Seasonal R  SAP America, OS.PPT - 10/13/97, Slide 20 Organizational Elements - CO 10/ 08/ 98 Chico Creek Brewing Company, Cost Centers CC 2100 Manufacturing CC 2101 CC 2106 CC 2111 Water purifier Malt Mill Whirlpool CC 2102 CC 2107 CC 2112 Mash Turn Lauter Tun Filters CC 2103 CC 21 08 CC 2120 Kettle Hop Strainer Bottling CC 2104 CC 2109 CC 2130 Heat Exchanger Fermenters... America, OS.PPT - 10/13/97, Slide 22 AM - Asset Number Structure R  SAP America, OS.PPT - 10/13/97, Slide 23 Asset Classification R  SAP America, OS.PPT - 10/13/97, Slide 24 IM - Hierarchical Structure Investment Management Program Orders (CO) Projects (PS) R  SAP America, OS.PPT - 10/13/97, Slide 25 Organizational Elements - MM Purchasing Organizations and Plants Chico Chico Creek Creek Brewing... normally done at the plant level R  SAP America, OS.PPT - 10/13/97, Slide 29 Organizational Elements - MM Plant (Cont.)  Links to production (PP), materials management (MM), and sales and distribution (SD)  A plant is assigned to a company  Purchasing organizations are assigned to plants R  SAP America, OS.PPT - 10/13/97, Slide 30 Organizational Elements - MM Plant for Chico Creek Brewing Co  Plant:... 10/13/97, Slide 13 Organizational Elements - CO Controlling Area  An organizational unit within a corporation in which comprehensive independent management accounting can be performed  Allows you to group Company Codes from a Cost Accounting View  It links the financial accounting module (FI) to the management accounting module(CO) in SAP R  SAP America, OS.PPT - 10/13/97, Slide 14 Organizational Elements... Canada Singapore Singapore Purchasing organizations Brewery Brewery Tap Tap Room Room Retail Retail Plants Brewing Brewing Plant Plant Tap Tap Room Room Plant Plant Retail Retail Plant Plant Storage Dry Dry Inventory Inventory  SAP America, OS.PPT - 10/13/97, Slide 26 Wet Wet Inventory Inventory Japan Japan Australia Australia R Organizational Elements - MM Purchasing Organization  Responsible for procurement