PPG Industries Simplifies with DRM

1. Celebrating twenty years of Integrated
Business Analytics Solutions
ENTERPRISE PERFORMANCE MANAGEMENT | BUSINESS INTELLIGENCE | BIG DATA

2. 2
Program Agenda
Speaker Introductions
Business Background & Challenges
Solution Overview
Business Benefits & Lessons Learned
Future Plans
Q & A

3. About PPG
Source: IR.WESTROCK.COM / Presentations – Jefferies Conference Presentation – 8/15/2015
3

4. PPG Architectural Coatings US & Canada
Source: IR.WESTROCK.COM / Presentations – Jefferies Conference Presentation – 8/15/2015
4
• Decorative and functional products
– Paints
– Stains, lacquers, primers and clears
• Interior and exterior coatings
• Residential and commercial
• Professionals and do-it-yourself consumers
• Distributed through a variety of channels
– Home Centers
– Independent Dealers
– Company Owned Stores
PPG AC Key Facts
• Multibillion dollar business unit in PPG
• 900 company owned stores
• 6,000 independent dealer points of sale
• 8,000 home center points of sale
• >100,000 customers
• 14 manufacturing locations
• 22 distribution centers
Architectural Coatings Definition

5. 5
Current State Financial Systems Overview
• Essbase is key analytical and reporting tool for 100+ member
finance organization
• SAP cost centers and accounts contain bare minimum
information to produce and ship paint
• All additional information required for reporting and analysis is
handled in Hyperion
• Entity hierarchy is backbone of system and has frequent
changes to reflect business operations

6. 6
Financial Systems Dimensions Usage
Dimension Definition # of Members
Entity Profit/Cost centers organized by business line, function,
plant, DC individual stores, regions, zones
12K level 0, 14K total
Account General ledger account, rolling up to “Prime” account
and P&L line item. Concatenation of several SAP fields
11K total
Channel Business line 20
Measures Base, Override, Total 5
Scenario Actual, Budget, Forecast 26
Currency US$, CA$, Local, constant currency 11
Period Month 12
Year Year 11
Version Forecast scenario, working, final 29
99% of maintenance

7. 7
Financial Systems – Critical Attributes
Attribute Definition Frequency of new members
requiring attribute
Store Type Year store opened or acquired: New14, New 15, Acq 14,
Acq16, Core
Rare
On Entity
Acquisition Acquired stores tagged with name of acquisition Rare
On Entity
Trial Balance Name of trial balance of entity for reconciliation purposes Constant
On Entity
Reporting
account
Summarize GL accounts to single SAP account: “Account-
Trading partner-profit center type – cost center function
code” (23 characters) ->> “8 digit GL account”
Constant
On Account
Account and entity hierarchies are most important and most difficult to maintain – focus of DRM automation

8. 8
Entity Dimension – 14K members
8K Members
Most dynamic and important

9. 9
Entity Dimension – Stores Channel Detail
Zone Level: 1 of 8
Market Level: 1 of 70
Market Sales Reps
Market Admin/Support
Individual Store: 1 of 900
Level 0 Store: 1 of 3K

10. 10
Program Agenda
Speaker Introductions
Business Background & Challenges
Solution Overview
Business Benefits & Lessons Learned
Future Plans
Q & A

11. 11
PPG DRM Objective
1. Improve process to maintain highly complex and dynamic
outlines in Hyperion Essbase and Planning
2. Reduce time and improve accuracy of outline maintenance
3. Use time savings to reallocate skilled resources to more
advanced activities – design, enhancements etc.

12. 12
Manual:
Create file with SAP
detail
Manual:
Extract Essbase
outline
Manual:
Load both to MS
Access and identify
“kick outs”
Manual:
Run cost center
report to get aliases
Manual:
Use MS Excel to
create import file
Manual:
Add alias, UDAs,
attributes
Manual:
Load to EPMA
Manual:
Refresh Outline
Manual:
Create mapping in
FDM
Manual:
Identify parent
Process to Add Entities and Accounts – Before DRM

13. 13
Solution Architecture for PPG AC
SAP
PPG
HFM
Mgmt
Rptg
BillingOracle
SG&A
Rev &
Margin
PlanningHdct
InvEcon
Cust
Rptg
Cust
Profit
HPCM
DRM
Entity Dimension, Account Dimension & Related Attributes
Product, Customer & Related Attributes
New CC, PC, Account New SKU, New Ship-To
Phase 2Legacy
Financial Hierarchies
& Analytical Attributes
Operational Hierarchies
& Analytical Attributes
Phase 1
FDMEEMaps

14. 14
Process Using DRM with Ranzal Configuration
Automated Script 1
1. Directly connects to SAP
2. Compares entities/accounts in SAP
with current outline
3. Loads “kickouts” into DRM with
parent “To be assigned”
4. Assigns alias
5. Assigns 95% of attributes and UDAs
a. Trial balance (entity)
b. Currency (entity)
c. Reporting account (account)
Automated Script 2
1. Moves outline from DRM to SQL Tables
Automated Script 3
1. Loads outline to applications
Manual Step
1. Assign to parent (appx. 1 minute total)

15. 15
Timeline for DRM Phase 1/Phase 2
Feb: Hyperion Environment Upgrade.
Mar: Planning & DRM for Financial Master Data Design (Phase 1)
May – Jun: Build Phase for Planning & DRM Phase 1
July: Testing for Planning & DRM Phase 1
August: Go-Live for Planning & DRM Phase 1
Sep: HPCM & DRM for Operational Master Data Design (Phase 2)
Oct-January: Planned HPCM & DRM Project Delivery

16. 16
Team Composition
Executive Sponsor
Sr. VP Finance
Financial Systems
Manager
DRM FDMEE Hyperion SAP
(1) Consultant (1) Consultant (1) Architect (1) Manager
Engagement
Manager
(1) Integration
Specialist
Key:
Blue = PPG
Green = Ranzal

17. 17
Program Agenda
Speaker Introductions
Business Background & Challenges
Solution Overview
Business Benefits & Lessons Learned
Future Plans
Q & A

18. 18
Time Savings
Before DRM – 2 hours
• Entity: 45 minutes
• Account: 75 minutes
• All steps manual
After DRM – 20 minutes
• Entity: 10 minutes
• Account: 10 minutes
• All steps automated except for assigning entity parent
100 minutes saved each run * 10 times run per month = 1,000 minutes (nearly 17 hours per month)

19. 19
Lessons Learned
Successes:
Phased Approach to DRM Implementation – initial focus on Financial Hierarchies & Attributes
DRM Accelerates the delivery of other EPM Modules (Planning, HPCM) through automation
Edgewater Ranzal Consultant expertise and partnership
Opportunities:
Introduce Additional Dimensions and Attributes for future analytical applications
Operationalize master data request workflow process with DRG
Feed master data from DRM to non-Hyperion systems (e.g. SAP)

20. 20
Program Agenda
Speaker Introductions
Business Background & Challenges
Solution Overview
Business Benefits & Lessons Learned
Future Plans
Q & A

21. 21
Future Plans – Product Hierarchy
Future State
• Product segment (Paint, Stain)
• Brand (Glidden, Olympic)
• Sub-brand (Diamond, ONE)
• SKU
Current State
SAP SKU contains material number and other manufacturing information. It does not contain
any information related to brand or product type.
Attributes required for analysis and reporting maintained in DRM. Will support in flight HPCM
implementation.

22. 22
Future Plans – Customer Hierarchy
Future State
• Parent customer (Spectrum Paint
• Customer location (Spectrum Paint – Williamsburg, VA)
• Ship-To (Job Site of Spectrum Paint customer)
Current State
Customers have many relationships that are unable to be effectively maintained in SAP:
Ship to, Customer, Parent, Banner, Buying group
Hierarchy for reporting and analysis maintained in DRM. Will support in flight HPCM implementation.

23. 23
Program Agenda
Speaker Introductions
Business Background & Challenges
Solution Overview
Business Benefits & Lessons Learned
Future Plans
Q & A

24. Q&A
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