The document discusses implementing a proper category hierarchy for master data management in a new ERP system for an organization called RSL. It proposes a 5-level hierarchy with categories, sub-categories, groups, and sub-groups, adding one additional level compared to the existing 3-level hierarchy. The new hierarchy has 3 categories, 16 sub-categories, 97 groups, and 482 sub-groups, adding 339 new sub-groups and editing 27 sub-groups. It also discusses how the hierarchy will help with item traceability, product management, and business results.

1. RSL Category Hierarchy for new ERP
Date: 27 February, 2011
Venue: RSL Conference Room

2.  Objective
 What is Category Hierarchy?
 Levels of Category Hierarchy
 Existing status of RSL Hierarchy
 Why need change hierarchy
 Proposed status of new Hierarchy
 Master article management
 Recommendation for improvement or approval
Agenda

3. Objective
To implement proper master data management
in new ERP as per international standard
through RSL business

4. Category hierarchy
What is Category Hierarchy:
Category hierarchy expresses the collection of
subordinate categories into a super ordinate category.
The subordinate categories are specialty categories that
satisfy the more general characteristics of the super
ordinate category. The hierarchy is important to apply on
article master for easy and accurate master data
management, item traceability, proper product
management and evaluation to get better business
result.
Example: If we consider animal is a super ordinate
category than tiger is the subordinate category

5. Hierarchy Levels
There are many level of hierarchy may be formed under
one category as per business demand. Like ---

6. Existing Hierarchy
We are practicing three levels of category hierarchy in
our current business. These are 11 Department  92
Sub-department 415 Category are available at our
running system. Present category status are ---

7. Why need changes
Existing hierarchy need to change as a corrective action
to make more standard master data management to
align with new business concept.
Example: Pharmacy dept are closed which is containing
135 category in current system on the other hand we
have launched general merchandising which have lots of
products line.

8. Proposed hierarchy
Five level of article hierarchy proposed for new ERP.
One level added against existing status.
Master Article
Category Sub Category Group Sub Group

9. There are 3 Category, 16 sub category, 97 Group and
482 Sub group proposed in new hierarchy. We have
added 339 new Sub group and 27 edited sub group for
new hierarchy.
Category
Sub
Category
Group Sub Group
Food 1 24 111
Non-Food 8 47 257
Perishable 7 26 114
TTL 16 97 482
Summery of proposed hierarchy

10. Summery of proposed hierarchy
Category Sub Category Group Sub Group
FOOD GROCERY 24 nos 111 nos
Non Food
Baby Needs
47 nos 257 nos
Basic Household
Cleaning Needs
Gift Items
Household Stuffs
Life Styles
OTC
Personal Care
Perishable
Bakery
26 nos 114 nos
Dairy
Fast Food
Fruits
Fish
Meat
Vegetables
Details

11. Master Article
Mater article is the article which is containing full item
description. Standard master data provide easy and
accurate data management to run smooth operation.
The standard article should form in below format.
Item name: Brand name + product name+ color/flavor
name+ unit/weight +3 digit country abbreviated name
Example: Dove Beauty Bar White 100gm-BGD
Note: System allow only 40 digit including other symbol
with space to create master article even it is not suitable
to create item description in above format

12. • Dept: Grouping of items based on broad categorization
of products. Example: Food, Non-food, Perishable
• Sub Dept: Grouping of similar products within the
department. Example: Beverages/commodities,
Gifts/personal care, Fish/Meat
• Category: Grouping of products within sub department
based on usage. Example: Carbonated drinks/ Coffee,
Cards/wrapping, Sweet water/ sea water,
• Sub Category: Grouping of products within categories
based on core nature, size, flavor, color, seasonality,
taste, smell. Example: cola/decafe, medicated soap/
beauty soap, small/large fish

13. • Core Team:
• Burhan
• Ashraf
• Aminul
• Rahmatullah
• Azad
• Halim

14. THANK YOU