Material Master Intro & Key Concepts 1.pptx

Deloit te Material Master CONTENTS What is Material Master? Key Concepts Creation and Maintenance of Material Master Records Governance Challenges Examples of industries that manage Material Master What is Material Master? Material Master A Material Master in SAP is like a digital cat...

Deloit te Material Master CONTENTS What is Material Master? Key Concepts Creation and Maintenance of Material Master Records Governance Challenges Examples of industries that manage Material Master What is Material Master? Material Master A Material Master in SAP is like a digital catalog where all the important details about a material (like a product or raw material) are stored. This information includes things like the material’s description, price, quantity, and where it's stored. Imagine you're running a bakery. Material Master is like a big recipe book that lists all the ingredients you use—like flour, sugar, and eggs— along with details about where you buy them, their cost, and where they're stored. Everyone in the bakery relies on this book to ensure they have the right ingredients and quantities. Without it, mistakes like ordering too much flour or using the wrong ingredients could happen, disrupting the entire process. Key Concepts Important SAP Tcodes related to Material Master 01 MM01: Create Material 02 MM02: Change Material 03 MM03: Display Material 04 MM04: Display Material Related Changes 05 MM60: Display a list of materials based on certain criteria 01 Basic Data: Contains essential information applicable across all areas, such as material description, material type, and unit of measure. 02 Purchasing Data: Focused on procurement, including details like purchase group, order unit, and conditions related to the material. 03 Plant Data: Covers specific information about the storage and handling of materials at various locations within the organization. 04 Sales Data: Covers information needed for sales and distribution, such as sales unit, product hierarchy, and sales organization data. 05 Accounting Data: Includes details for managing inventory, such as valuation class, price control, and costing details 06 Production Planning: Provides data necessary for manufacturing, including bill of materials (BOM), work scheduling, and planning information. 07 Quality Management: Focuses on quality inspection, control parameters, and quality planning details. Creation and Maintenance of Material Master Records Creation of Material using MM01 Tcode Select Views under which you want to fill the Fields Fill the required Org Levels Example View: Basic Data 1 Governance and Challenges Material Master Governance & Challenges Governance Challenges Creation and Maintenance of material should consist of streamlined process Businesses are unaware of the data quality issues or how to address them which eats up design discussion time For industries like pharma etc, where compliance rules are complex, their definition and process implementation is time consuming Business efforts required for identifying the fields and defining the rules to automate the data entry Industrial Examples Automotive: Companies like Toyota, General Motors, and Ford manage extensive material master data for various components used in vehicle production. Electronics: Samsung, Sony, and LG Electronics maintain material masters for the numerous parts required in their products. Pharmaceuticals: Pfizer, Novartis, and Johnson & Johnson manage material master data for active pharmaceutical ingredients (APIs), excipients, and packaging materials. FMCG (Fast-Moving Consumer Goods): Unilever, Godrej Consumer Product Limited, and Nestlé handle material master data for raw materials, packaging, and finished goods. Retail: Walmart, Amazon, and IKEA manage material masters for thousands of products in their inventory, including SKUs, packaging materials, and suppliers. Food and Beverage: Coca-Cola, PepsiCo, and Kraft Heinz manage material master data for ingredients, packaging materials, and finished products. Thank You. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. 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