Orange County Convention Center

Orlando, Florida | May 15-18, 2011

Audit Management at Colgate: Web enabled Quality, EOHS,

& Supplier Conformance to Standards
Joseph Jeffs

[ Abstract
Learn how Colgate Palmolive has leveraged SAP Audit Management
to assess conformance to Quality, EOHS, Factory Reliability &
Performance and Supplier Management Standards. See the flexibility
SAP provides in approaches to scoring and evaluating conformance
to standards. Learn how Colgate utilized Web Dynpro for ABAP, ALV
Grids, Smartforms, and Adobe Interactive forms to develop an easy to
use solution for our audit teams and responsible sites.

Real Experience. Real Advantage.

[ Learning Points
Review Audit Management Hierarchy Design to understand the
flexibility in the scoring and evaluation that SAP provides out of the
box.
See how Colgate developed a web based interface to enable multiple
auditors to enter data in a user friendly environment.
Learn how Adobe Interactive Forms provided an offline interface to
conduct an audit as well has record facility corrective action follow-up.

Real Experience. Real Advantage.

[ Agenda
About Colgate Palmolive
Colgates SAP Audit Management Applications
Learning Points
Flexibility
Web Based Interface
Offline Forms

Best Practices

Real Experience. Real Advantage.

[ About Colgate-Palmolive Company

$15.3 + Billion in
Sales

Products Sold in
223 Countries &
Territories
Sales by Division

38,100
Colgate People
Real Experience. Real Advantage.

North
America
21%
Pet 14%

Latin
America
26%

Europe/
South
Pacific
21%

Greater
Asia/Afric
a 18%

ORAL CARE

HOME CARE

Real Experience. Real Advantage.

PERSONAL CARE

PET NUTRITION

[ Colgates SAP Audit Management Applications

EOHS
Ensure compliance with environmental, health and safety rules and
regulations. The health and safety of our customers, our employees and
the communities in which we operate must be paramount in all we do.

Factory Performance and Reliability

For Colgate factories to measure and plan continuous improvement
toward Manufacturing Effectiveness & Efficiency by establishing global
practices.

Quality
Ensure we meet Global Colgate Quality Standards in the design,
manufacturing, and distribution of our products as well as meet or exceed
all government requirements and consumer expectations

Supplier Management
To ensure direct materials and finished goods suppliers
meet the quality standards, expected service, and cost.
Real Experience. Real Advantage.

[ Key functionality
Common audit application and set of reports across
business groups.
Single Audit planning workbench to ensure a reasonable
audit schedule per site
Web based interface to conduct audits and manage the
facility follow-up action plan.
Offline auditing for supplier audits

Real Experience. Real Advantage.

[ Audit Business Process

Planning

Auditing

Reporting

Corrective
Action

Follow-up

Audit Management is comprised of 5 activities

Planning

Real Experience. Real Advantage.

[ Audit Business Process

Planning

Set
expectations in
Question Lists
Audits are
scheduled by
creating them
in the SAP GUI.

Real Experience. Real Advantage.

Auditing

Reporting

Corrective
Action

Follow-up

[ Audit Business Process

Planning

Auditing

Reporting

Corrective
Action

Follow-up

Audit Description
Audit Object with
customized
fields
Proposed and
Actual dates

Real Experience. Real Advantage.

[ Audit Business Process

Planning

Auditing

Reporting

Corrective
Action

Follow-up

Texts Tab
Custom list of
long texts

Text Editor.
Can double
click to switch
to MS Word

Real Experience. Real Advantage.

[ Audit Business Process

Planning

Auditing

Reporting

Corrective
Action

Follow-up

Participant Tab

Custom list of
Roles
Influences
Security
Business Partners
assigned to
Audit

Real Experience. Real Advantage.

[ Audit Business Process

Planning

Auditing

Reporting

Corrective
Action

Follow-up

Overview of Audit Schedule across functional group.

Selection Criteria
Resulting list of audits

Real Experience. Real Advantage.

[ Audit Business Process

Planning

Auditing

Observations are
entered into the audit
Findings are valuated for
severity
Performance Expectation
Shown for reference
Finding Valuation on Basic
Data Tab (Not shown)
Long texts areas include both
standard and custom types

Real Experience. Real Advantage.

Reporting

Corrective
Action

Follow-up

[ Audit Business Process

Planning

Auditing

Reporting

Corrective
Action

Follow-up

Reports are generated

on a specific audit
Daily Progress
Report
Audit Report
Preliminary Findings
Executive Summary
Paper Protocol

Real Experience. Real Advantage.

[ Audit Business Process

Planning

Auditing

Actions to address
findings are tracked
Schedule for
resolution
Current Status
Text description of
action
Milestone tracking

Real Experience. Real Advantage.

Reporting

Corrective
Action

Follow-up

[ Audit Business Process

Planning

Auditing

Reporting

Corrective
Action

Follow-up

Examples of Reports are generated Across Audits

Corrective Action Timely Closure

Findings By Category or Division
Audit Participants
Summary of Findings
Summary of Actions

Used to identify of trends in findings

Presented in either SAP smart forms or ALV grid
Real Experience. Real Advantage.

[ Learning Points: Flexibility

Review Audit Management Hierarchy Design to
understand the flexibility in the scoring and evaluation
that SAP provides out of the box.

Real Experience. Real Advantage.

[ Glossary of Audit Management Terms

Audit: The questions associated with
the evaluation of a facility or process
at a given place and time.
Question List: a collection of questions organized in a
Hierarchy (Tree Structure)
Question: An object in an audit that can record Headings,
Requirements, and/or Findings
Valuation: an assessment given to a question
Rating: a score computed based on the Valuations
or related questions
Real Experience. Real Advantage.

[ Learning Points: Flexibility

SAP Audit options to support Variation in Business
Processes
Checklist vs. Ad-hoc recording of observations
Organization of Performance Expectations

Question Valuation

Real Experience. Real Advantage.

[ Flexibility: Checklist vs Ad-hoc recording of observations

Checklist: Auditor edits
one of the long texts of
the performance
expectation and
valuates it

Ad-hoc: Auditor inserts

a new question object
for each finding
allowing multiple
findings per
expectation.

Real Experience. Real Advantage.

[ Learning Points: Flexibility

SAP Audit options to support Variation in Business
Processes
Checklist vs. Ad-hoc recording of observations
Organization of Performance Expectations

Question Valuation

Real Experience. Real Advantage.

[ Flexibility: Organization of Performance Expectations

Performance Expectations are
maintained in a Question List
Question lists are organized in a tree
structure where each level of the tree is
described in customizing.
Influence on if that level is valuated is
controlled by the No Valuation option.

Real Experience. Real Advantage.

[ Learning Points: Flexibility

SAP Audit options to support Variation in Business
Processes
Checklist vs. Ad-hoc recording of observations
Organization of Performance Expectations

Question Valuation

Real Experience. Real Advantage.

[ Flexibility: Question Valuation

The Question List determines what level is assessed for
valuation
The Valuation Profile determines what values can be
assigned during valuation

Real Experience. Real Advantage.

Flexibility: Additional Technical Information

BAdI Implementations
Flexibility to Match Business Process

Activities in Audit Processing (Authorization Check)

PLM Audit Management: Audit Component Status Management
PLM Audit Management: Create, Change, and Delete Audit (At Save)
PLM Audit Management: Create, Change, and Delete Action (At Save)
Edit Attributes of Audit Components
Identification of Audit Components (Number Assignment)
Controlling Procedure for Audit Questions
Assignment of Question Lists to Audit
Customer Defined fields
Definition and Structure of an Audit Object
Valuation of Audit (Key Figure Calculation)
Enhancement for Search Helps
Definition of Text Types for Each Audit Component
Provide Signature for Audit

Real Experience. Real Advantage.

[ Learning Points: Web Based Interface

See how Colgate developed a web based interface to
enable multiple auditors to enter data in a user friendly
environment.

Real Experience. Real Advantage.

[ Web Based Interface

Provides simplified
screens for ease of
use

Key functional GAP

addressed: Allows
multiple Auditors to
collaborate on the
same audit.

Real Experience. Real Advantage.

[ Web Based Interface: Auditor Screen & Task Workflow

This workflow graphic describes
the main Screens and Task for
Assessors

Audit Search

Select Audit

Screens
Audit Menu
Audit Search
Audit Dashboard

Audit Dashboard

Enter Audit Info

Task
Select Audit
Enter Audit Info
Check & Confirm
Run Reports

Real Experience. Real Advantage.

Check & Confirm

Run Reports

[ Web Based Interface: Audits Search

Quick access to audits assigned to the logged in auditor

Uses logged in users participant role

combined with audit status to list
current audits.

Real Experience. Real Advantage.

[ Web Based Interface: Audit Dashboard

Provides overview of the audit in progress

Provides access to all questions

And findings in the audit

Real Experience. Real Advantage.

[ Web Based Interface: Audit Finding detail

Provides ability to record and update audit findings

Finding includes:
Observation
Strength
Recommendation
Comments
Executive Summary
Reviewer Comment
Change Log

Real Experience. Real Advantage.

[ Valuation

Assesses the Standard or Finding for Risk

Valuation selection
based on Valuation profile

Real Experience. Real Advantage.

[ Corrective Action
Quick access to actions assigned to logged in user

List of corrective actions to be updated

based on user logged on and their role
in the audit

Real Experience. Real Advantage.

[ Action Detail
Basic Data Tab provide schedule information

Schedule information
Capital requirements

Real Experience. Real Advantage.

[ Action Detail
Texts tab provides detailed information on the action

Action includes:
Description
Comments
Resources Required
Verification Comments
Root Cause
Reason for Attention
Milestone 1
Milestone 2
Milestone 3
Change Log
Real Experience. Real Advantage.

[ Action Details
Milestones tab allows site to track progress

Up to three milestones
allow tracking of progress
of the forward action

Real Experience. Real Advantage.

[ SAP Spell Checking

Business Case for Spell Check
Major component of the data
is long text.
Many auditors use English as
a second language.
Reports from the system are
distributed to senior
management.
A custom web dynpro for
component was designed to call
a web service and update the
web dynpro context.

When using SAP GUI, system

embeds MS Word to provide spell
checking.
Real Experience. Real Advantage.

[ Web Based Interface: Reports

Real Experience. Real Advantage.

[ Reports
Provided in PDF format

Real Experience. Real Advantage.

[ Learning Points: Offline forms

Learn how Adobe Interactive Forms provided an offline
interface to conduct an audit as well has record facility
corrective action follow-up.

Real Experience. Real Advantage.

[ Offline Access Required

Supplier Auditing was an Ideal Candidate for Offline
Forms
Suppliers in remote locations may not have good
connections to the internet
Suppliers do not have direct access to our system to update
corrective actions
Supplier can enter information and review internally prior to
submitting to Colgate.

Real Experience. Real Advantage.

[ Business Process for Offline Auditing

Create Audit in GUI
Download Audit to PDF

Distribute via Email

Insert Audit Findings

Upload Form to SAP

Review and Save Changes

Real Experience. Real Advantage.

[ Example Offline Auditing Form

The screenshot is page 4 out
of 9 pages.
The finding was created from
inside the form by pressing
the + button.
The Performance Expectation
shows both the description of
the requirement and Notes to
the auditor on what to look
for.
The finding can then be
edited in the form. When the
file is uploaded into SAP a
new question object will be
created.

Real Experience. Real Advantage.

[ Best Practices
Learning Points: Audit Management Flexibility
Standardize the Tools and Business Practices across
functional groups.
SAP provides the additional flexibility as needed.

Learning Points: Web Dynpro

User specific hit lists helpful for ease of use by providing
information user needs when they need it.
Web development only required for multiple auditors
editing at the same time, otherwise the GUI version

Learning Points: Offline Forms

Use Adobe Forms where offline use is a necessity.
Adding an element to your context with the form name
and form
Real Experience. Real Advantage.

46

Joseph Jeffs
Manager
Product Lifecycle Management
Global Information Technology

909 River Road, P.O. Box 1343

Piscataway, NJ 08855-1343
Telephone 732-878-7117
E-Mail joseph_jeffs@colpal.com

Real Experience. Real Advantage.

Thank you for participating.

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For ongoing education in this area of focus, visit
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Real Experience. Real Advantage.