FUNCTIONAL SPECIFICATION

8112 - CE new processes and quality requirement implementation

Revision No: 1.2 | Date: 10/05/2022

 Functional Specification

8112 - CE new processes and quality requirement implementation

1. TICKET / DEMAND...................................................................................................................................3
2. CURRENT SITUATION:.............................................................................................................................3
3. PURPOSE:...............................................................................................................................................3
4. DETAILED SOLUTION:..............................................................................................................................4
4.1. New material type creation....................................................................................................................5
4.1. Batch creation process............................................................................................................................5
4.2. process order confirmation.....................................................................................................................5
4.3. GOODs issue by so..................................................................................................................................5
4.4. goods receipt by PO................................................................................................................................5
4.5. quality process of recicled material........................................................................................................5
5. Assumptions...........................................................................................................................................6
6. IMPACTS / RISKS:....................................................................................................................................6
7. OBJECTS INVOLVED:................................................................................................................................6
8. ACCESS PROFILE:.....................................................................................................................................6
9. TEST SCENARIOS AND EXPECTED RESULTS:.............................................................................................6

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1. TICKET / DEMAND

Module / Process: MM/PP/QM

Key User: To be defined
Jussara Toledo – MM
Responsible: José Neto – PP
Carlos Ferreira - QM
Supplier: Exed
Solman / Request:
Braskem IT: Maximilian Schulz
Date: 17/05/2022
Complexity: Medium
Version/Revision: 1.1

2. CURRENT SITUATION:

The circular economy team is setting up an operation for the collection of bags at the warehouses
that receive imported materials, obtained during the debagging process when imported materials are
ordered in bulk trucks by our customers.

Currently, there is no system flow available for this process since we were not used to generating
stock of such type of waste.

3. PURPOSE:

To guarantee transparency and to enable traceability of this operation, we need to create a new
product type in SAP.

These new SKUs are supposed to have no stock value but need to be visible in SAP as available
stock.

The creation of this stock needs to happen via a process order confirmation when a batch will be
created by a development (monthly).

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Below are details of how SAP will work and what document will be necessary to ensure the correct
flow:

4. DETAILED SOLUTION:

First of all, a new material type will be created, this type will be non-valuated, and the SKU that will
use this type will only have quantity updating.

We will create a new SKU to point stock for the waste bags that will be controlled in this process.

The BOMs of the finished materials that generate this new material type will be updated and the new
SKU included.

In the production orders release, we will have the batch creation (created monthly ) by a
development where the stock of this new material will be pointed out.

The rule for creating these batches will be included in a Z table with a maintenance vision for users.

During the production order confirmation, this new material will be pointed out through movement
531, this step will include a quantity stock for the same.

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Once the material is in stock, it can be sent to a partner by a sales order (type ZGDO).

At the other end of the process, we have a purchase order that may be type ZP01, YP01, ZP09, or
YP09, where the finished material (recycled) will be purchased and will be later sold by Braskem.

This SKU must have quality control and at the time of the goods receipt of this material by MIGO
(101), an inspection lot will be created automatically, and the material will be posted in quality
inspection stock.

Once the quality process, inspection lot (test plan) execution, result entry and is completed with aand
the UD is posted, the transfer of this material qty. tofor unrestricted use stock willshould be carried
out automatically., and tThese results will then be available on COA outputsshould be available for
use.

4.1. NEW MATERIAL TYPE CREATION

The new material type “ZUNW” will be created using UNBW as a model for a non-valuated material.

To register the SKU with this new material type we will use the data from type ZVER.

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4.1. BATCH CREATION PROCESS

Create a transaction where the batch format of the component will be defined according to the table
below:

Column 1 Column 2 Column 3 Column 4 Column 5 Column 6

CHAR 1-2 CHAR 3-4 CHAR 5 CHAR 6 CHAR 7-9 CHAR 10
Sequential number,
based
on sequential 1- produced
Region where the material is being recycled Partner/Warehouse ID Year Month production 2- clone
Emilia-Romana EM Aliplast AL 2022 I A 001 1
Nord-Rhein Westphalia NW AD Compound AC 20023 J B 001 1
Bradenburg BB Mepol ME 2024 K C 001 1
Piemonte PI Interseroh IN 2025 L D    
Veneto VE CLBT CL 2026 M E    
(Statistical region Drava) SI Van Moer VM   F    
Antwerp AN Rotterdam Polymer Hub PH   G    
South-Holland SH El Mosca EL   H    
Murcia MC Schmidt SC   I    

- Column 1
The user must select the plant and type the acronym.

- Column 2
The user must type the Partner name and the acronym.

- Column 3
The user will type the year and the code of the year

- Column 4
The user will select the month and the code will be shown

- Column 5
The user will type the sequential for the batch.

- Column 6
The user will type if the batch is produced or if it is a clone

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The new transaction will have the fields below, where the gray fields will be selected and the blank
fields will be typed.

Cod. Partner Cod. Cod. Cod. 1 -produced

Werk Description Werk Warehouse Parttner Year Year Month Month Sequential 2-clone
AN06 BRASKEM NETHERLANDS AN Van Moer VM 2022 A ABRIL D 001 1
BRASKEM NETHERLANDS BV
ER01 C/O EM Aliplast AL AL 2022 A ABRIL D 001 1
SH06 BRASKEM NETHERLANDS BV SH El Mosca EL 2022 A ABRIL D 001 1
AN06 BRASKEM NETHERLANDS BV AN Van Moer VM 2022 A MAIO F 002 1
BRASKEM NETHERLANDS BV
ER01 C/O EM Aliplast AL 2022 A MAIO F 002 1
SH06 BRASKEM NETHERLANDS BV SH El Mosca EL 2022 A MAIO F 002 1
NW01 BRASKEM EUROPE GMBH NW Test TS 2022 A MAIO F 002 1

Suggestion:

Remove the sequential and production type fields and use these positions to record the entire year in
YYYY format in the batch code, in this way we avoid typing and controlling the year code manually
since at some point the year code used with the letters of the alphabet would go back to the letter
“A”.

Example of the new table:

Cod. Partner Cod. Cod.
Werk Description Werk Warehouse Parttner Year Month Month
AN06 BRASKEM NETHERLANDS AN Van Moer VM 2022 ABRIL D
BRASKEM NETHERLANDS BV
ER01 C/O EM Aliplast AL AL 2022 ABRIL D
SH06 BRASKEM NETHERLANDS BV SH El Mosca EL 2022 ABRIL D
AN06 BRASKEM NETHERLANDS BV AN Van Moer VM 2022 MAIO F
BRASKEM NETHERLANDS BV
ER01 C/O EM Aliplast AL 2022 MAIO F
SH06 BRASKEM NETHERLANDS BV SH El Mosca EL 2022 MAIO F
NW01 BRASKEM EUROPE GMBH NW Test TS 2022 MAIO F

The transaction must have the options to add, change and delete a record.

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The transaction will not allow duplicate records with the center, year and month key, as
it will be the search key for the batch number formation.

4.1. ALOCATION BATCH PROCESS

After creating the production order, the user must select the line of the new material to associate the
batch.

You must click on the button “Execute batch determination” and in this button a user-exit will be
defined that will verify the types of materials of the components of the BOM and if any material is the
same as defined by a parameter, the program must check if there is data defined in the new batch
table by plant, year and month. If the program doesn’t find any data, a message will be displayed
showing that there are no parameters for the definition of the batch and, if there is, it will search for
the batch according to the definitions.

To ensure that the order is not released without the association of the batch in the new material, a
consistency will be defined in the release of the order button to check if in the components of the
orders there is any material with the new type defined for the project. If a new type material is
found, the function will check if the batch is associated, and if it is not, an error message will be
shown to the order release.

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4.2. PROCESS ORDER CONFIRMATION

There will be no change in the pointing out process, as the new material will be already with the associated
batch in the production order release.

There will be no automatic batch search for new materials in CORK and if a material is included manually, in
this case, the user must associate the batch manually using the F4 key selection function.

The movement type that will be used to generate the new material batch will be 531, as shown in
the example below:

4.3. GOODS ISSUE BY SO

This step will use a standard sales order process that is already available.

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4.4. GOODS RECEIPT BY PO

Here we will have a purchase order created with a material type ZFEO with quality control activated.
When the PO is created or, latest, if the MIGO – GR is posted, a batch number needs to be entered
manually and the material will stay at quality inspection until the UD is OK.

4.5. QUALITY PROCESS OF RECYCLED MATERIAL

The finished PCR Product SKU is received through ZP01, ZO09, YP01 and YP09 document types. As
an example, here you find a QAS PO for the reference:
4502566104
SKU: DA062A BR25

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Currently there is no COA and QM process in place which is the reason why we are not able to
issue automatic COA documents upon sales deliveries to our customer.

For quality requirements, we will be absorbing the proposed solution already suggested by the
customer.

In this way we will have:

The need to review processes:

· Review of quality procedures during receipt of materials as well as batch and COA
generation/inspection;

Review the creation of the COA and the email output to the end customer.

From the receiving process:

· Automatically generate the inspection batch in the receiving plant code;

· Allow the launch of the characteristics as well as the decision of use in the receiving plant;
· Use the ZEUQ and ZEQ2 output types for the COA;
· The COA output must show the results of the analyzes carried out at the receiving plant;

Configuration:

· Test Plan settings, Certification Profiles and other COA-related actions will be maintained by ETC users;
· The configurations to be carried out in a productive environment must be delivered by the
consultancy aligned with the business;
· The analysis results must be visible for all stocks in Europe;
· The COA model must be used in the EU considering the exit condition records mentioned above;
· Use the NW11 or SHT7 centers as a reference;

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From COA creation and exit:

We will be adopting the processes implemented in the TOLL MANUFACTURING PAX PROJET
project. Below, we recall the points that will be used as a reference extracted from the project:

o Upon delivery of the finished WAX SKU and qty, the Subcontracted Material is received at the
Virtual Plant SHT7 (GR posting via MIGO transaction). o Upon Goods Receipts to the
subcontracting PO (Movement Type 101) a QM inspection lot (Inspection Type 01) needs to be
generated to monitor the Quality Analysis results from the 3rd party tolling vendor (MPW) and
release the stock to “Unrestricted-use”. In this case, a Master Data of an specific Inspection Plan
for the Material and Plant containing Operations and Master Inspections Characteristics as per
specification for the material must be created, as well as the activation of Control Type 01.

 Then we can check the results of the inspection characteristics according to the Inspection
Plan

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o for the generation of the Inspection Lot above, it is necessary to prepare the Inspection Plan for
the Material with all the, Operations, inspections characteristics to be inspected, Inspection Methods,
Unit of measure, lower and Upper limit, as well as the activation of Control Type 01 is necessary to
the inspection. Below we can check the Inspection Plan and activation of control type 01. OBS:
For the Unit Tests, the Material GWAX-050E PL10 specifications will be assigned, as well as the
characteristics of the Certificate Profile

OBS: For the Unit Tests, the Material GWAX-050E PL10 specifications will be assigned, as well as
the characteristics of the Certificate Profile

Inspection Plan

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The activation of Control Type 01 and 89 (for manual registration)

 In case of result entry errors, revalidation (testing), etc. of a batch the manual registration of
these results needs to be possible through the inspection type “89”.

o Characteristic results will be included in the Inspection Lot based on the COA received from the
supplier.

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o After UD accepted the release status change - Quality Inspection to “Unrestricted-use” and the
stock can be transfer to the SA15 or SA19 Plant.

o In case batches are sent to other Braskem plant codes the COA needs to get the data from the
origin plant code (tolling plant code), like it is the case for the local PP currently (received and sold
through plant codes related to NW11 and SA11).

o This also includes the use of the COA profiles and output logic that we use in EU for local PP
(output condition ZEUQ / ZEQ2), for Sales Org./Division

o in this case, in the master data Certificate Profile is necessary to include the specific
characteristics of each Plant necessary for the respective COA as example below.

o for goods receipts of the same batch ID / SKU no new inspection lot need to be generated, but
the COA creation shall use the initial results entered.

o in case of verifying more than one Inspection Lot for the Batch, the COA must obtain information
from the most recent Inspection Lot.

o The COA is generated automatically together with the invoice and through Delivery to Client (on
post good issue at Plant SA19) or others. In the example below, we will be generating a COA in

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layout Braskem with Profile Certificate EU-HOMO-01 for Material E2000144, Delivery 806452803,
Batch NWARKF0311, output type ZEQ2 and Inspection Lot 10000539698

OBS: Below we have the respective Inspection Lot and Batch

Inspection Lot

Delivery

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Delivery output

Certificate Profile

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5. ASSUMPTIONS
Not found.

6. IMPACTS / RISKS:
Not found.

7. OBJECTS INVOLVED:

Object Code Details

8. ACCESS PROFILE:

To be defined

9. TEST SCENARIOS AND EXPECTED RESULTS:

# Test Description Expected Result

Create PO ZP01 with the new SKU (ZFEO) to

3 Receive material in quality control
receive.

Transfer the material from quality control for

4 UD posted 
unrestricted use.

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