BUSINESS BLUEPRINT For Sumitomo Chemical Asia Pte Ltd
Created by
: Prajesh Dhasmana
Date of creation
: October 2006
Changed by
: Prajesh Dhasmana
Date Date of the the las lastt cha chang nges es
: 24 24 Nov Novem embe berr 200 2006 6
Approval
1
As a representative of the business, I approve and accept this document: Approved by
Title
Si!ature
2
"ate
As a representative of the business, I approve and accept this document: Approved by
Title
Si!ature
2
"ate
#ersio! Co!trol
This table must be completed for versions 1.0and greater.
Version Number
Version 1.1
Date Issued
Reason for Update
By
First Issue
Praesh !hasmana
3
1. INTRODUCTION & OVER VIEW...................................................................................................... 5 1.1. INTRODUCTION........................................................................................................................................ 5 1.2. SYSTEM OVERVIEW.................................................................................................................................6
2. PHASE WISE TIME LINES................................................................................................................ 11 3. PHASE II: SAP SYSTEM ONLINE AT SCA FOR FI AND HR. APRIL 2007.............................. 12 3.1 BUSINESS REQUIREMENT OF SCA FOR ACCOUNTING.......................................................................... 13 3.1.1. List of Business processes SCA needs.......................................................................................... 13 3.1.2. SAP relating documents ...............................................................................................................13 3.2. BUSINESS REQUIREMENT OF SCA FOR HR........................................................................................... 14 3.2.1. List of Business processes SCA needs.......................................................................................... 14 3.2.2. SAP relating documents................................................................................................................14
4. PHASE III : PRE MARKETING PHASE: OCT 2007...................................................................... 16 4.1. BUSINESS REQUIREMENT OF SCA FOR SALES AND DISTRIBUTION (SD)..............................................18 4.1.1. List of Business processes SCA needs.......................................................................................... 18 4.1.2. SAP relating documents................................................................................................................18 4.2. BUSINESS REQUIREMENT OF SCA FOR MATERIAL MANAGEMENT (MM)............................................ 20 4.2.1. List of Business processes SCA needs.......................................................................................... 20 4.2.2. SAP relating documents................................................................................................................20 4.3. BUSINESS REQUIREMENT OF SCA FOR LOGISTICS EXECUTION (LE)....................................................21 4.3.1. List of Business processes SCA needs.......................................................................................... 21 4.3.2. SAP relating documents................................................................................................................21 4.4. BUSINESS REQUIREMENT OF SCA FOR FI(ADDITIONAL SUB MODULES IMPLEMENTED IN PH II)........22 4.4.1. List of Business processes SCA needs.......................................................................................... 22 4.4.2. SAP relating documents................................................................................................................22 4.5. BUSINESS REQUIREMENT OF SCA FOR HR (ADDITIONAL MODULES IMPLEMENTED IN PH II).............23 4.5.1. List of Business Processes SCA needs.......................................................................................... 23 4.5.2. SAP relating documents................................................................................................................23 4.6. BUSINESS REQUIREMENT OF SCA FOR COSTING (CO)........................................................................ 24 4.6.1. List of Business processes SCA needs.......................................................................................... 24 4.6.2. SAP relating documents................................................................................................................24
5. PHASE IV. FULL OPERATION. OCT 2008(IMPLEMENTATION OF BW, CRM & EP)........ 25 5.1. BUSINESS REQUIREMENT OF SCA IN PHASE IV....................................................................................26 5.1.1. Website for Communication with Customers............................................................................... 26 5.1.2. Customer Relationship Management............................................................................................26 5.1.3. Business Analysis..........................................................................................................................26 5.1.4. SAP and/or other software relating documents............................................................................27
6. PHASE V – COMPLETE SYSTEM LANDSCAPE MARCH 2009.................................................28 6.1. BUSINESS REQUIREMENT OF SCA FOR DEMAND FORECAST AND OPTIMIZATION................................. 28 6.1.1. List of Business Process SCA needs for Optimization..................................................................28 6.1.2. SAP relating Documents...............................................................................................................28
7. SIZING AND NETWORKING (BASIS) RELATING PROPOSAL................................................31 8. APPENDIX.............................................................................................................................................32
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1 !N"#OD$C"!ON % O&'# &!'( 11 !N"#OD$C"!ON Compa!y bac$rou!d
"umitomo #hemical Asia Pte $td %"#A& 'as established in (a) *00+. "umitomo #hemical Asia Pte $td %"#A-& is a 'holl)o'ned subsidiar) b) "umitomo #hemical #o., $td. of /apan %Parent #ompan)-&. "audi Arabian il #ompan) %"audi Aramco& and the Parent #ompan) established a 00 oint venture, 2abigh 2efining 3 #hemical #ompan) %P4T22abigh-& in "audi Arabia in "eptember *00 to engage in a tenbilliondollar proect of upgrading the e5isting oil refiner) and building ne' petrochemical facilities in the to'n of 2abigh and to operate those oil refining and petrochemical manufacturing facilities. The proect is to be completed in late *006 to start the operations. After the proect, P4T22abigh 'ill have the follo'ing production capacities: The) 'ill upgrade the e5isting facilities of the oil refiner) to 700,000 barrels8 da) crude distillation unit 'ith rather simple configuration #urrent Post Proect 9asoline: one ;< +=,000 bpd aphtha: >>,000 ;< >1,000 Fuel il: 11,000 ;< 6?,000 etc Petrochemical Product @ Installation of ne' facilities Pol)prop)lene resin %PP& >00,000 Tons8 Pol)eth)lene resin %P4& ?00,000 Prop)lene 5ide %P& *00,000 4th)lene 9l)col %(49& +00,000 The Parent #ompan) is entitled to marBet the petrochemical products 'orld'ide %e5cept (iddle 4ast& produced b) P4T22abigh, 'hile the refiner) products %gasoline etc& are to be marBeted b) "audi Aramco. For the purpose of carr)ing out the said marBeting, the Parent #ompan) 'ill use "#A as a vehicle for marBeting control and coordination. Cnder a scenario 'ith rather conservative oil price %crude oil price of C"D=8 bbl&, "#A 'ill handle more than D* billion 'orth of products per )ear. The manpo'er of "#A, as 'ell as the overseas offices coming under "#AEs control, 'ill e5ceed 0. "#A 'ill act as #ontrol #enter of P4T22abigh petrochemical products. "#A 'ill offtaBe and marBet a vast volume of petrochemical products manufactured b) P4T22abigh. In addition, "#A 'ill operate as a marBeting, sale, and distribution coordination center, 'hich includes:
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Primar) responsibilit) for preparing global %e5cluding (iddle 4ast& marBeting plan %e.g. overall marBeting plan, pricing polic), product promotion, plan for suppl) chain and marBet development& for pol)mers. #ontrol and coordination bet'een the various sales channels for pol)mers8monomers including the Parent #ompan)Es subsidiaries. #oordination bet'een P4T22abighEs manufacturing and "#AEs sales and suppl) chain. For this purpose, "#A 'ill develop a highl) integrated IT s)stem for sales and logistics.
12 )*)"'+ O&'#&!'( "#A has a ver) lean structure. There 'ill be around 0100 people to run the entire operation. The entire 2 function 'ill be run b) 1* people. A small "#( group 'ill handle the logistics for more than 100000 containers per annum in multiple countries. The "ales and marBeting group 'ill liBe to ma5imiGe their time doing their core activities liBe spending time 'ith customers instead of doing bacBend transactions. The lean structure 'ill be supported b) outsourcing of non core activities and support from IT s)stems. It is hence critical in this scenario that most operations are automated and are efficientl) handled. In order to better respond to customerEs needs and to support its lean structure it has been envisaged to implement multiple IT s)stems. "#A 'ill have a bacBend transaction processing ERP 'hich 'ill handle the Finance, 2, "ales and Procurement functions. It has been decided to implement "AP 28= as the bacBend 42P s)stem. •
•
•
•
•
•
"#A 'ill have supply chai! so%t&are 'hich 'ill facilitate the demand forecasting and planning as 'ell as optimal utiliGation of the suppl) net'orB. The soft'are selection for the suppl) chain optimiGation 'ill be done later based on functional fitment and cost. o'ever for the purpose of this document 'e have used "APEs AP application as a part of the solution. 4nhanced customer service is a Be) part of "#AEs differentiating strateg) in the marBetplace. #ustomer focus is a Be) part of "#AEs mission statement. In order to help in the management of customers and aid its sales force "#A 'ill implement #ustomer 2elationship (anagement 'CR() soft'are. "#A 'ould be using multiple s)stems for providing different functionalit). In order to use data from multiple s)stems, for anal)sis and reporting, it is envisaged that "#A 'ill implement the Busi!ess *arehouse application of "AP. "#A 'ill also provide access to its customers to vie' data relating to them e.g. account information. "#A ma) also provide a vie' of the customerEs order status and deliver) status. An evaluation 'ill be done later to decide on 'hether "APEs 4nterprise Portal 'EP) Application 'ill be implemented or some other application 'ill be developed. o'ever for the purpose of this document 'e have used 4P application as a part of the solution. "ince the number of dispatches b) ships is ver) large it is essential to have a s)stem for optimiGing the transporter selection and cargo allocation. "ince the automatic caro allocatio! function is not present in "AP 28= an evaluation 'ill be done on 'hether to go for custom development in 28= or go in for another application.
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The pol)mer containers 'ill be dispatched from /eddah through shipping lines. These 'ill be dispatched to "ingapore, #hina or 4urope either to "#A stocB point or directl) to customers. "#A 'ill need to do booBing of vessels in the s)stems provided b) the shipping lines. These could be either through P"AEs #argo!*! or 4!I to other s)stems. The =rd part) logistics providers 'ill be handling the stocB point inventor) in various locations. The information of dispatches 'ill need to be i!ter%aced 'ith "#AEs bacBend 42P s)stem. In addition there 'ill be interfaces 'ith banBs to e5change information and do automatic reconciliation in "AP. ence a large no of interfaces 'ill need to be developed 'ith various business partners of "#A. At present the partnerships 'ith various vendors have not been firmed up. The details of the Bind of interfaces 'ill be clear later.
The Application Architecture for "#A 'hen all the IT Applications have been implemented 'ill be as sho'n belo':
Alication Arc!itect"re Mar #$$% APO ERP DP FI
HR
CO
SD
MM
LE
SNP GATP &' CRM Analytics
EP AM Interface to external systems
+lossary, 42PFI : Finance (odule 42P2: uman resources (odule 42P#: #ontrolling
7
LM
CSS
42P"!: "ales and !istribution 42P((: (aterial (anagement 42P$4: $ogistics AP!P: !emand Planning AP"P: suppl) et'orB Planning #2($( : $ead (anagement #2(#"": #ustomer "ervice 3 "upport #2(A(: Account (anagement 4P: 4nterprise portal H: Husiness 'arehouse The above application landscape envisages the implementation of the 42P, #2(, H and AP or eJuivalent application. In the document 'e have used the suppl) chain solution as AP, ho'ever since the suppl) chain soft'are 'ill be evaluated and selected subseJuentl)K it should be read as AP or the selected "uppl) #hain pacBage. hen the above application architecture is full) implemented b) (arch *00? the follo'ing departments at "#A 'ill have application support in their operations: -uma! Resources: The "#A 2 dept 'ill be able to handle the follo'ing functions through the 2 module of the 42P s)stem: 2ecruitment • #areer planning of 4mplo)ees • Henefits and #ompensation (anagement of emplo)ees • Time and $eave management • 4mplo)ee appraisal and performance management • Training course management • Travel management • Pa)roll processing • Fi!a!ce: The Finance department of "#A 'ill be able to do the follo'ing through the FI module of the 42P s)stem: Financial 2eporting • (anaging of #ustomerEs account 2eceivables • (anaging of Vendors Account Pa)ables • (anagement of Fi5ed Assets • Ta5 Accounting • #ash Forecasting and $iJuidit) (anagement including interfacing 'ith banBs. • The (a!aeme!t of "#A 'ill also be able to use the # module to do the follo'ing functions: Anal)sis of Profitabilit) • Internal "egment reporting through Profit #enter Accounting • Anal)sis of overhead costs through #ost #enter Accounting • Sales a!d (ar$eti! : The sales group of "#A 'ill be able to do the follo'ing through the "! module of the 42P.
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• • • • • •
"ales rder Processing Processing of #ustomer inJuiries #ustomer master maintenance (aintaining pricing information and calculation of prices in the sales order processing Processing of #onsignment stocB at customers location and "#4. Hilling and related functions
The Sales a!d (ar$eti! department at "#A 'ill be able to do the follo'ing function through the #2( application: $ead (anagement Anal)sis of customers data through #2( Anal)tics (anagement of customer related information including activities related to customers liBe sales call information #ustomer service and support • • •
•
SC(: The "#( group 'ithin "#A 'ould be able to do the follo'ing through the $4 (odule of 42P. Inbound logistics processing • #reation and monitoring of deliveries and e5ecuting movement of goods %issue and • receipt& 45ecution of shipments planned in the AP application • #alculation and settlement of freight and other costs related to the shipments •
The "#( group 'ill also be able to use the (( functionalit) to perform the follo'ing functions: Processing of purchase orders •
The SC( group at "#A 'ill also be able to do the follo'ing using the AP application: Forecast demand using various Algorithms in the !emand Planning module of AP Perform sales planning at the grade level in the !emand planning (odule of AP Perform a mid term to long term plan optimiGed on cost for satisf)ing demand from various sources %stocB points and /V& using the "P module of AP Perform transportation planning, choosing the shipping line and assigning the vessel to a cargo %container& shipment in the custom application or custom development • • •
•
The E!terprise Portal application 'ill be evaluated for implementation based on and anal)sis of cost and benefits. This application 'ould provide the follo'ing benefits: A single sign on and role based access to users for multiple applications. A platform for seamless integration of "APEs applications and provision of a single screen access for multiple applications 4mplo)ees 'eb based access to do self service transactions liBe booBing leave, travel e5penses etc. A tool for Lno'ledge (anagement 'hich can act as the Bno'ledge repositor) for eas) management and retrieval of information. • •
•
•
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The (a!aeme!t of "#A 'ill be getting the follo'ing additional tools in order to aid their decision maBing: Anal)sis of trends in the marBet and customer bu)ing pattern in the H application. •
The 45ternal s)stems mentioned here are linBs to =P$ s)stems, shipping lines, banBs, custom houses, insurance #s, /VEs s)stem etc. At the moment these linBages have not been decided as the partners have not been froGen.
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2 Phase ,ise time lines "ince the business is processes for "#A are being set up, the above application architecture 'ill be rolled out in phases. "#A has decided on a phased approach for the implementation of the above architecture so that the applications are available 'hen there is a need for them. "ince the present Hlueprint e5ercise is designated as the phase I, the subseJuent phases start from Phase II. The schedule for the phases is sho'n belo': Phase
Implementation date
Applications to be implemented
II
April *00>
28= %FI, 2&
III
ctober *00>
28= %"!, ((, $4, #&
IV
ctober *006
28= %T2&, #2(, H, 4P
V
(arch *00?
AP
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- Phase !!: ).P )ystem online at )C. for /! and # .ril 200 The first phase of the implementation 'ill start 'ith the "AP s)stem going $ive- 'ith some functionalit) in FI and 2 modules. Implementation of Phase II 'ill be completed b) April *00>. "ince there are no logistics transactions in the s)stem and hence no meaningful management reporting can be done, # module 'ill be implemented in Phase III. The Application Architecture for this phase is sho'n belo':
Alication Arc!itect"re Ar #$$* ERP(R() HR
FI AM
AP
GL
OM OM
PAPA
PT TM P+
TR P+
9lossar): 2P: Pa)roll 2(: rganiGation management 2PT: Time (anagement in 2 (odule 2T2: Travel (anagement 2PA: Personnel Administration FIA(: Account (anagement FIAP: Account Pa)ables FI9$: 9eneral $edger In this phase the basic FI sub modules liBe 9$ %9eneral $edger&, AP %Accounts Pa)able& and A( %Asset (anagement& and (aster data and other critical sub modules of 2 module 'ill be implemented. The main obective of this is to start getting the financial statements from "AP 28= and capture the basic 2 organiGation and other master data in the 28= s)stem and enable the processing of pa)roll and leaves and travel related transactions for the emplo)ees.
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-1 3$)!N')) #'$!#'+'N" O/ )C. /O# .CCO$N"!N5 "#A intends to start getting the Halance "heet and Profit and $oss "tatements from the s)stem. "#A needs to process pa)ments to vendors other than the /V %e.g. office supplies and pa)ment of rentals etc&. For the pa)ment to the /V %'hich 'ill start after ct *006& the final purchase price is Bno'n onl) at the time of the sale of the product. "#AEs margin is a fi5ed percentage of the fi5ed price 'ith some e5penses being reimbursable b) the /V. Initiall) the procurement of the pol)mers and monomers is done at a provisional price 'hich changes ever) Juarter. The pa)ment to the /V 'ill have to be done after 7 da)s. o'ever 'hen the sale is made the difference bet'een the calculated purchase price based on sales price and provisional purchase price needs to be reconciled. This is done along 'ith the reconciliation invoice for the /V. !ue to the above scenario there is an implication on the Inventor) valuation of the finished goods. The final method of inventor) valuation has not been decided and 'ill be decided later. There is a need at "#A to tracB the acJuisition and disposal of assets. Additionall) asset depreciation needs to be accounted for in the Profit 3 $oss statement as an e5pense and the Halance sheet statement to reflected value of the assets.
-11 ist of 37siness rocesses )C. needs Please refer the HP($ listing in Appendi511 -12
).P relating doc7ments
3.1.2.1. SAP module list to be needed The 9$ sub module 'ill get implemented in this phase so that the financial statements can start to be produced from the "AP application. In order to process pa)ments to vendors the AP sub module of FI 'ill be implemented during this phase. The standard s)stem does not support the scenario for reconciliation of the /V pa)ments. This 'ill have to be addressed through suitable custom development and reporting. The Asset Accounting sub module 'ill also get implemented during this phase in order to handle the acJuisition, depreciation and retirement of assets b) "#A. "ince there is not going to be an) sales transactions at "#A till the ne5t phase the Account 2eceivable %A2& sub module 'ill not get implemented in this phase. The "tandard s)stem 'ill support "#AEs reJuirement in the 9$, AA and AP e5cept for the reconciliation of /V pa)ment, 'hich 'ill reJuire a custom development. Thus the FI sub modules that 'ill be implemented in this phase are: 9$ AA AP • • •
3.1.2.2.
Blueprint documents for FI
Please refer the Appendi5 for the 9$ Hlueprint Please refer the Appendi5 + for AP Hlueprint Please refer the Appendi5 6 for AA Hlueprint
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-2 3$)!N')) #'$!#'+'N" O/ )C. /O# # It is critical for "#A to have a s)stem to process the pa)roll as soon as possible as the 2 dept at "#A is ver) leanl) staffed and the organiGation plans to recruit 0100 emplo)ees in a short time period. "ince there is no legac) s)stem for processing of pa)roll it is imperative to implement a s)stem for this in the phase II itself. "ince the "#A staff 'ill also be traveling Juite e5tensivel) for marBet visits and putting agreements 'ith service vendors %e.g. shipping lines etc& a s)stem to handle the Travel related transactions 'ill be reJuired soon if "#A needs to avoid the hiring e5tra staff for doing this. ence a s)stem for travel management is envisaged in the Phase II itself. Additionall) there is a reJuirement for the travel reJuests to be routed, in the s)stem, to the emplo)eesE manager for approval. !uring this period there is also a need to handle recruitment, master data and leave processing of emplo)ees. "#A also reJuires that there be an approval process for leaves and for the leave reJuests to be for'arded to the utlooB Inbo5.
-21 ist of 37siness rocesses )C. needs Please refer the HP($ listing in Appendi511 -22
).P relating doc7ments 3.2.2.1.
SAP module list to be needed
After implementation in this phase the 2 department at "#A 'ill handle the recruitment and administration of emplo)ees through the PA %personnel Administration& sub module. "ince a large number of emplo)ees 'ill be inducted in this period PA is a critical module. The rganisation (anagement sub module 'ill be implemented in this phase as it is essential to put the organiGation structure and master data into the "AP s)stem in order to implement 2 module. The pa)roll %P& sub module, as pointed out earlier is a Be) module and needs to be implemented in this phase to process the salaries of the emplo)ees. This 'ill reJuire at least some parallel run %'herein the salar) pa)slips are prepared manuall) as 'ell as calculated in the "AP s)stem& so that there are no errors. This 'ill be a challenge considering the tight schedule for Phase II implementation. The Time management %PT& sub module 'ill be implemented in this phase in order to process the leave related data of emplo)ees. In order to handle the travel related transactions, Travel management %T2& sub module 'ill be a Be) reJuirement. o'ever since "#A 2 dept is ver) leanl) staffed it might be a challenge to implement this module considering that the pa)roll module reJuires e5tensive testing and parallel runs and there 'ill not be a full time 2 person devoted to the proect from "#A. ence a udgmental call needs to be taBen on 'hether implementing this module 'ill be feasible in Phase II. "AP orBflo' 'ill have to be implemented for implementing leave approval process and travel approval process. "#AEs reJuirement 'ill be supported in the standard "#A for the above modules e5cept for some reports 'ill reJuire custom development. In addition 'orBflo' customiGation 'ill be reJuired. The Follo'ing sub modules of 2 'ill thus be implemented in this phase:
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•
P: pa)roll.
•
PT: Time (anagement.
•
(: rganisation (anagement.
•
PA: Personnel Administration.
•
T2: Travel (anagement.
3.2.2.2.
Blueprint documents for HR
Please refer the Appendi5= for the Hlueprint !ocument
15
4 Phase !!! : Pre +ar8eting Phase: Oct 200 In this phase "#A 'ill start marBet seeding operations before the setting up of the /V production facilities in ct *006. This phase 'ill be implemented b) ct *00>. The Application Architecture on the implementation of this phase is sho'n belo': Alication Arc!itect"re Oct #$$*
ERP ( R) HR
FI AM
AP
OM
GL
TR
AR SD &F
PT
PE
P+ PD
MM &L
SLS
CM
PR
IM
CO PCA
PA
P-R
I,
SR,
LE CCA
PA
SHP
OM
9lossar): 2P: Pa)roll 2(: rganiGation management 2PT: Time management in 2 (odule 2PA: Personnel Administration 2T2: Travel (anagement 2P!: Personnel !evelopment 2P4: Training and 4vent (anagement FIA(: Account (anagement FIA2: Account 2eceivables FIAP: Account Pa)ables FI9$: 9eneral $edger "!HF: Hasic Function and master data "!P2: Pricing "!#(: #redit (anagement "!"$": "ales rder Processing "!H$: Hilling ((IV: $ogistics Invoice Verification
16
TRA
(("2V: 45ternal "ervices management ((I(: Inventor) (anagement ((PC2: Purchasing (("P: "hipping $4TA: Transportation $4"P: "hipping #P#A: Profit #enter Accounting ###A: #ost #enter Accounting #PA: Profitabilit) Anal)sis #(: # rganiGation (anagement "ince "#A 'ould start procurement of material from suppliers other than the /V to be sold in the marBet, the logistics functions of 28= 'ill get implemented at this time. Thus the full "! and (( functionalit) 'ill get implemented. The Account receivable sub module of FI 'ill also get implemented at this time in order to monitor receivables from #ustomers and process the incoming pa)ments. In addition to enable the (anagement of "#A to anal)Ge profitabilit) and costs based on different metrics it is also essential to implement the #ontroling (odule %#& of "AP. The $ogistics 45ecution %$4& module of "AP 'hich enables the dispatches and transportation of finished goods 'ill also be implemented during this time. The transportation planning in this phase does not include the shipping line selection based on costs and availabilit). The purpose is ust to enable the monitoring of shipments and the processing of cost related to the shipments. There is also a need to do the cargo allocation as per the reJuired rules. The pol)mer containers that are being shipped to the ports on Vessels %floating inventor)& 'ould be needed to be assigned to sales orders based on the date of arrival and customers reJuested date. The cargo allocation function could be handled either through a custom development in 28= or another application. o'ever in "AP the batch 'ould be assigned to the sales delivers. This process 'ould reserve the stocB to that order. !ue to optimall) utiliGe the time of the "#A 2 personnel it has been decided to implement 2 module in Phases. "ome core sub modules liBe rganisation (anagement and pa)roll 'ould be implemented in phase II 'hile Performance (anagement and Training and 4vent (anagement 'ill also be implemented in phase III.
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41 3$)!N')) #'$!#'+'N" O/ )C. /O# ).') .ND D!)"#!3$"!ON 9)D "ince "#A 'ill start selling to customers after the implementation of this phase the full rder (anagement functionalit) 'ill be needed at this time. The master data relating to customers 'ill need to be maintained and the pricing information 'ill need to be maintained. The pricing data %pricing and discounts etc& for the various products 'ill need to be maintained. These could be maintained for different criteria liBe product grades, Application, customer groups, customers, region etc. There 'ill also be a need to enable the sales order processing including Juotation processing to taBe care of offers to customers. "#A 'ill also need to raise invoices to the customers. The sales orders 'hich do not have stocB allocated to them 'ill get the allocation 'hen the stocB is received in the s)stem. Also in the case of bacB to bacB orders %direct suppl) from /V to customer& the price in the purchase order 'ill need to be calculated based on the sales price %?+M& "#A 'ould be suppl)ing the products to customers onl) on their furnishing $etter of #redit or prepa)ment. ence "#A 'ould need a s)stem to control and monitor the credit e5posure to customers. In case the customer has a number of subsidiaries, "#A 'ould liBe to control credit limit at customer subsidiar) level and also customer group level %N&. This ma) occur 'hen credit limit at customer subsidiar) is e5ceeded and allo'ed to proceed, ho'ever it 'ill be blocBed if limit at customer group level is e5ceeded.
411
ist of 37siness rocesses )C. needs
Please refer to HP($ list in Appendi5 11
412
).P relating doc7ments 4.1.2.1.
•
• •
•
•
•
SAP module list to be needed
The sales staff of "#A 'ould need order management functions to be supported in "AP in this phase. For this the "ales rder Processing sub module %"$"& 'ill be implemented in this phase. The order management 'ill allo' sales reps to easil) price and create sales orders for customers. For automatic allocation of stocB to sales order 'ithout stocB allocation %bacB order processing&, a custom development 'ill be reJuired. For maintaining the prices the Pricing %P2& sub module 'ill need to be made. In order to invoice the customers based on the dispatches made to them the Hilling sub module %HI$& 'ill be implemented in this phase. In order to control the credit e5posure to customers the #redit (anagement sub module %#(& 'ill be implemented in this phase. o'ever the standard s)stem does not support the multi level credit control for subsidiar) and N. This 'ill have to be addressed through custom development. In order to maintain the customer master data the Hasic functions and master data sub module 'ill need to be implemented. It is envisaged that the standard solution 'ill meet the "#AEs reJuirements e5cept for the custom development for stocB allocation to bacB orders. o'ever some custom reports ma) need to be developed based on a detailed anal)sis of reporting reJuirements.
18
"#A 'ould need the follo'ing sub modules of "! to be implemented in this phase: HF: Hasic functions and (aster !ata "$": "ales order Processing HI$: Hilling P2: Pricing #(: #redit (anagement • • • • •
4.1.2.2. Blueprint documents Please refer Appendi51 for the "! Hlueprint !ocument.
19
42 3$)!N')) #'$!#'+'N" O/ )C. /O# +."'#!. +.N.5'+'N" 9++ "#A 'ould start the procurement of pol)mers8monomers from various suppliers in this phase. "#A 'ould be purchasing the finished goods from various suppliers, handling the movements of the inventor). This 'ould include activities ranging from placing of purchase orders to the s'ap or other suppliers to receiving the goods and transferring of the goods from the various ports in /eddah to other ports %"ingapore, #hina or 4urope& to "#A stocB points or customer locations. These stocBs could be managed b) the third part) logistics provider. There 'ould be a need to manage the inventor) movements of the stocBs. "#A 'ould also be processing the purchases of various services liBe logistics services etc. The invoices processing for various suppliers for both goods and services 'ould also happen in this period.
421
ist of 37siness rocesses )C. needs
Please refer to HP($ list in Appendi511
422
).P relating doc7ments 4.2.2.1.
SAP module list to be needed
There 'ould be a need for "#A to use the 28= s)stem to handle the purchasing of the pol)mers8monomers. This 'ould include placing of purchase orders to the s'ap or other suppliers 'hich 'ould reJuire the Purchasing sub module of ((. 2eceiving the goods and transferring of the goods bet'een various ports and management of Inventor) 'ould reJuire the Inventor) (anagement (odule in this phase. To process the invoices of vendors the $ogistics Invoice Verification %IV& sub module of (( 'ill need to be implemented. The 45ternal "ervices (anagement (odule 'ill need to be implemented for process the pa)ment to service vendors "#AEs reJuirements 'ill be met b) the standard s)stem. #ustom development effort 'ould be reJuired for some reports. "#A 'ould need the follo'ing sub modules of (aterial (anagement to be implemented in this phase: PC2: Purchasing I(: Inventor) (anagement "2V: 45ternal "ervices (anagement IV: $ogistics Invoice Verification •
•
•
•
• • • •
4.2.2.2. Blueprint documents Please refer Appendi5* for the (( Hlueprint !ocument.
20
4- 3$)!N')) #'$!#'+'N" O/ )C. /O# O5!)"!C) ';'C$"!ON 9' ith the logistics operations starting at "#A the $4 module 'ill need to be implemented to support the logistics transactions. There 'ould be a need to assign cargo to sales orders, chose shipping lines and booB the vessels. There 'ould be a need to monitor shipments and the costs related to the shipments. There 'ould also be a need to process the pa)ment to the various logistics service providers as 'ell as other charges as customs fees etc. "#A 'ould also need to control the issue of goods for various dispatches to customer and internal transfers.
4-1
ist of 37siness rocesses )C. needs
Please refer to HP($ list in Appendi5 11
4-2
).P relating doc7ments 4.3.2.1.
•
•
•
SA SAP module list to be needed
$4 module in "AP 28= covers the e5ecution aspects of Transportation providing a complete and integrated solution to create, e5ecute, and monitor shipments. The cargo Allocation and booBing function is not supported in standard "AP and this critical gap 'ill be bridged either through additional soft'are application or through custom development in 28=. The transportation sub module 'ould be needed in order to create the shipments in 28= and monitor their status.
The shipping sub module is needed to facilitate the deliver) creation and goods movement in the s)stem. •
•
T2A: Transportation "P: "hipping to facilitate deliver) processing
4.3.2.2. Blueprint documents Please refer Appendi5 1 and * for the $4 Hlueprint !ocument.
21
44 3$)!N')) #'$!#'+'N" O/ )C. /O# /!9.DD!"!ON. )$3 +OD$') !+P'+'N"'D !N P !! "ince in this phase "#A 'ill start selling pol)mers8monomers to the customers there 'ould be need to monitor the receivables from customers. ith the implementation of order fulfillment and billing functionalit) in this phase there 'ill also be a need to monitor the receivables of the customers. "#A 'ill also need to process pa)ments and pre pa)ments %do'n pa)ments& from customers. #ustomer account information and dunning %reminder letters to customers for overdue pa)ments& 'ill also be handled b) Finance !ept department of "#A.
441
ist of 37siness rocesses )C. needs
Please refer to HP($ list in Appendi511
442
).P relating doc7ments 4.4.2.1.
•
SAP module list to be needed
For monitoring the customerEs receivables the Account receivables %A2& 'ill be needed in this phase. This sub module manages customer accounting data and is an interface bet'een "! and FI. The A2 sub module 'ill also support the recording of pa)ments and do'n pa)ments in the s)stem. #ustomer account information and dunning %reminder letters to customers for overdue pa)ments& 'ill also be handled through A2 sub module of FI module.
"#AEs reJuirements for A2 'ill largel) be met through the standard "AP s)stem. ence the follo'ing sub module of FI 'ill need to be implemented in this phase: •
Account 2eceivables %A2&
4.4.2.2. Blueprint documents Please refer Appendi5> for the FI A2 Hlueprint !ocument.
22
4< 3$)!N')) #'$!#'+'N" O/ )C. /O# # 9.DD!"!ON. +OD$') !+P'+'N"'D !N P !! In order to optimall) utiliGe the time of the 2 department personnel it has been decided that some of the functionalit) reJuired b) the 2 department 'ill be implemented in Phase =. The 2 department of "#A needs to assign of emplo)ees to training programs and events management. The 2 department of "#A 'ould need to maintain a standard training calendar and assign emplo)ees to the training courses. There 'ould also be a need for Adoc training organiGed for emplo)ees. The "#A department needs to tracB emplo)eesE career plan and succession plan for Be) positions.
4<1
ist of 37siness Processes )C. needs
Please refer to HP($ in Appendi511
4<2
).P relating doc7ments 4.5.2.1.
•
•
SAP module list to be needed
The Personnel !evelopment %P!& sub module can help plan and implement specific personnel and training measures to promote the professional development of "#A emplo)ees. It 'ould enable the planning of Jualification up gradation of emplo)ees. The P! sub module 'ill also enable "#A managers and 2 dept to do career and succession planning. The Training and 4vent (anagement %P4& sub module 'ould be implemented in order to enable the 2 department of "#A to maintain a standard training calendar and assign emplo)ees to the training courses. Also an) ad hoc training needs for emplo)ees 'ould be registered in the s)stem b) creating a ne' training and assigning the emplo)ee to it.
"#AEs reJuirement in these sub modules 'ould be satisfied b) the standard s)stem. The follo'ing sub modules of 2 'ill be needed to be implemented in this phase: •
P4: Training and 4vent (anagement
•
P! : Personnel !evelopment
4.5.2.2. Blueprint documents Please refer Appendi5 = for the 2 Hlueprint !ocument.
23
46 3$)!N')) #'$!#'+'N" O/ )C. /O# CO)"!N5 9CO ith the start of the purchasing of pol)mers8monomers and sales to various customers there 'ould be a need for the management of "#A to anal)se the various costs and profitabilit) according to various criteria. This 'ould be critical as the s)stems get established for the full operation commencement 'ith /VEs production going onstream. There 'ould be a need for the "#A management to anal)Ge costs and revenues b) marBet segment, 'hich could be grades, customers and customer groups, orders, region or countr) or an) other marBet segment. The anal)sis could be to calculate the contribution margin for each marBet segment or for anal)Ging the cost of servicing a customer segment or the profitabilit) of a particular grade. "ince the transportation costs are to be reimbursed b) the /V and hence are not treated as e5pense in accounting. o'ever for the purpose of the profitabilit) Anal)sis these cost need to be considered. There 'ould be a need to anal)se the inventor) carr)ing costs and transportation costs in this period in order to arrive at an optimum operating model on full operation in ctober. *006. "#A plans to assign revenue and cost responsibilit) to pol)mers and monomer products separatel) and belo' that to the region level.
461
ist of 37siness rocesses )C. needs
Please refer to HP($ list in Appendi511
462
).P relating doc7ments 4.6.2.1.
•
•
•
SAP module list to be needed
The Profitabilit) Anal)sis %PA& module in 28= 'ill need to be implemented for recording and anal)sis of costs and profitabilit) b) various segments. The Profit #enter Accounting %P#A& and #ost #enter sub (odules of 28= 'ould be needed to facilitate the internal reporting for revenue and cost. The #ost #entre "ub module records costs incurred during the compan) operations b) assigning them to cost centers %assigned to managers or organiGational units&.
The standard solution 'ill mostl) support the # reJuirements e5cept for some reports 'hich might be reJuired. ence the #osting %#& modules that 'ill need to be implemented in this phase are: •
Profit #enter Accounting %P#A&
•
#ost #enter Accounting %##A&
•
Profitabilit) Anal)sis %PA&
4.6.2.2. Blueprint documents Please refer Appendi5 7 for the # Hlueprint !ocument.
24
< Phase !& /7ll Oeration Oct 200=9imlementation of 3(> C#+ % 'P The Application Architecture on the implementation of this phase is sho'n belo':
Alication Arc!itect"re Oct #$$.
ERP
FI
HR
CO
SD
MM
LE
&' CRM Analytics
EP AM
LM
CSS
Interface to external systems
ith the /V plant being commissioned at this time, there 'ould be a need to implement additional modules. Additional functionalit) 'ill get implemented b) ct *006. In this phase there is a need to implement the #2( functionalit) in order to capture the sales force activities and management of #ustomer base. "ince full sales and procurement operations 'ould start this time there 'ould be a need to do estimate the pa)ment %cash& flo's from the compan) in the near term forecast. There 'ould also be a need to interface 'ith the banBs so that automatic processing of the banB statement and reconciliations can be done. For this purpose the Treasur) (odule of FI 'ill be implemented in this phase. In order maBe better use of business information in the various transaction processing applications liBe 42P, #2( etc "#A 'ill need H to be implemented in this phase. H 'ill enable the users to create or run simple e5cel based Jueries 'hich could maBe use of data in the different s)stems.
25
<1 3$)!N')) #'$!#'+'N" O/ )C. !N P.)' !& <11 (ebsite for Comm7nication ,ith C7stomers "#A 'ebsite is reJuired for displa)ing "#A compan)8 Products8 Product #atalog information. It should also have a provision to store prospect customerEs details, their enJuires and need to be effectivel) handle the data volume. It should also be eJuipped 'ith tools liBe inJuir) form, communication form %that is used to send the customerEs feedbacB bacB to "#A, for e5ample a #ontact to "#A- or 2epl) to "#A-&. This 'ebsite should be seamlessl) integrated 'ith "#AEs #2( s)stem to convenientl) handle the processes such as Technical "upport ")stem, #ustomer #omplaint etc. It should be also integrated 'ith emplo)ee database so that "#A emplo)ees can Juer)8update their o'n records for e5ample, designation, leave reJuest etc via "#AEs intranet. If "AP 4P is implemented then, though these features are available, the integration aspects of all these components8processes need to thoroughl) anal)Ged. Additionall) an 4!I subs)stem needs to be installed as the same 'ill taBe care of the "#AEs 4!I communication 'ith partners such as "#AEs /V, channel partners. "#A can opt for a "AP certified 4!I solution partner for such 4!I implementation as it guarantees the compatibilit) 'ith "AP s)stems.
<12 C7stomer #elationshi +anagement "#A needs the #ustomer relationship management %#2(& solution to effectivel) manage the itEs customer base. The proposed #2( solution needs to process such as the Account information8planning, $ead (anagement and #ustomer "ervice. It should also able to incorporate the "ales Force Automation%"FA& process that is indeed ver) helpful for predicting the sales forecast %and hence the pipeline revenue& b) taBing into consideration of various parameters such as potential opportunities. "FA also automates some of the compan)Os critical sales and sales force management functions, such as, lead8account management, contact management, opportunit) management etc. Furthermore, since "#A is envisaging to have #argo TracBing ")stem %#T"& for its inbound as 'ell as outbound logistics, the integration aspect of the "#A 'ebsite8#2( s)stem 'ith =P %thirdpart)& IT s)stems needs to thoroughl) anal)Ged
<1- 37siness .nalysis "ince the success of a compan) liBe "#A depends on ho' accuratel) the past data is anal)Ged, #2( anal)tics 'ill significantl) help "#A in apt anal)sis of #ustomers, Products, "ales and "ervice related activities. The effective anal)sis follo'ed 'ith a strategic decision 'ill aid "#A in great 'a) to achieve its business obectives. For #2( anal)tics to be operational, a data 'arehouse component such as "AP H s)stem needs to be implemented. The H %Husiness arehouse& is not onl) helpful for #2( Anal)tics but also highl) useful for anal)sis of other data such as $ogistics, Financial and #ontrolling %for e5ample #PA& through 'ell designed reports. "ince "#A is planning to implement Lno'ledge arehouse component for its business %esp as a part of #ustomer "ervice&, the H component is a prereJuisite for L. The 4nterprise Portal %such as "APEs et 'eaver& coupled 'ith H8#2( s)stems 'ill definitel) facilitate "#A to have a re'arding integrated solution that can reall) maBe a difference for "#A in the future.
26
<14
).P and?or other soft,are relating doc7ments 5.1.4.1.
Soft!re list to be needed
For the ebsite the 4nterprise Portal "olution of "AP 'ill be evaluated b) "#A. A cost benefit anal)sis 'ill be done in comparison to hosting a 'ebsite and developing the 'eb applications. For the #2( functionalit) "APEs #2( 'ill be needed. o'ever this 'ill be evaluated later for a functional and cost fitment against other products in the marBet. For the Husiness Anal)tics the "AP #2( Anal)tics along 'ith "AP Husiness arehouse %H& is proposed to be used.
5.1.4.2.
Rou"# Blueprint
Please refer Appendi5 1= for a more detailed discussion of the above.
27
6 Phase & @ Comlete )ystem andscae +arch 200A After this phase the complete application architecture of "#A 'ill be in place. The modules to be implemented b) (arch *00? are: AP: !P, "P. "ince !P reJuires historical data for reasonable forecasts and "P 'ould reJuire the stabiliGation of the suppl) net'orB it is recommended that these modules get implemented after the entire s)stem has been online for months. AP or eJuivalent soft'are 'ill be selected after evaluation. H: additional reJuirements. "ome additional reJuirements ma) be reJuired 'ith the implementation of additional modules
61 3$)!N')) #'$!#'+'N" O/ )C. /O# D'+.ND /O#'C.)" .ND OP"!+!B."!ON 611 ist O f 37siness Process )C. needs for Otimiation Please refer to HP($ list in Appendi5 11
612
).P relating Doc7ments 6.1.2.1.
SAP module list to be needed
The Follo'ing modules have been proposed to be implemented in this phase considering AP or some eJuivalent product: •
!emand Planning %!P&
•
"uppl) et'orB Planning %"P&
6.1.2.2. Rou"# Blueprint In this phase, the business planning process 'ould need to be supported b) an advanced planning s)stem. Hased on historical sales, a baseline forecast 'ould be generated b) the s)stem as a guide to better forecasting. "ales personnel 'ould use the baseline forecast and modif) it to reflect e5isting marBet conditions and come up 'ith a rolling three monthl) forecast. The forecast b) the sales personnel can be aggregated up to the product level and the countr)8region level. The forecast can also be aggregated b) customer group level, if such groups are defined in #2(. The aggregated forecast can be vie'ed b) the central sales and marBeting personnel and modified8fine tuned based on their assessment of marBet conditions, marBet intelligence and the compan)Es product portfolio plan. #entral sales and marBeting personnel can also checB on forecast versus actual orders booBed for the previous period. This 'ould help in identif)ing trends such as over forecasting and under forecasting b) different sales regions8personnel. #omparison can also be done 'ith the annual plan to checB 'hether sales in progressing in line 'ith plans dra'n up at the start of the )ear.
28
The forecasted sales are then subected to the constraints in the s)stem. The constraints could be the production volumes b) grade, number of grades that can be made in a month, reJuirement of safet) stocB and need to lift the material produced b) the supplier. If forecasted sales are greater than the suppl) Juantit), then the compan) could decide 'hich forecast it 'ould liBe to fulfill. This could be based on a combination of the compan)Es portfolio plan, the customer relationship strateg) and profitabilit). If ptimiGation is used to constraint suppl) plans, then in case of suppl) demand, the s)stem 'ill suggest optimal plans based on "" levels, forecast and cost parameters defined in the s)stem %transportation cost, storage cost etc&. If forecast is lesser than the suppl) Juantit), then the compan) ma) e5plore alternate options of increasing demand such as tapping ne' marBets or special pricing schemes or changing the product mi5. The meeting to constrain the "ales forecast, called a "ales and perations Planning meeting %"3P&, should be a cross functional meeting 'ith representatives from "ales, (arBeting, "#( and Finance involved. Information from the supplier on available capacit), shutdo'ns and grades that can be produced and their Juantities 'ould be reJuired. (arBeting 'ould come to the meeting eJuipped 'ith information on competition and pricing in the ne5t three months. "#( 'ould highlight constraints either in shipping or in handling8storing. Plans to address these constraints 'ould be discussed. The output of the constraining 'ould be the follo'ing 9rade 'ise volumes to be sourced from the supplier called as the "uppl) Plan Volumes of material to be transferred bet'een stocBing location called the fftaBe Plan. • •
Information on current stocBs, stocBs in transit and safet) stocBs reJuired 'ould be inputs to the finaliGation of the "uppl) and fftaBe Plans. The "uppl) Plan 'ould be used b) the supplier to produce. This plan 'ould get revised ever) month. The fftaBe Plan 'ould be used to get an initial assessment of the volumes to be shipped. This 'ould be an initial indication to the carriers as to the cargo to be shipped during the period. 4ver) 'eeB the actual cargo to be moved 'ould be arrived at based on actual orders and stocBing reJuirement. This 'ould be further used b) the transportation planning process to finalise the vessel and further b) logistics e5ecution to facilitate the movement of the products. Hefore finaliGing the "uppl) Plan, the compan) can generate various alternatives and compare them. ne alternative could be to satisf) the most important customers first and the others later. Another alternative could be to satisf) the most profitable orders8forecasts. The finaliGed Plan 'ould be arrived at after the cross functional discussions on actions to address or overcome constraints in the s)stem. The finaliGed plan 'ill be the 'orBing document on 'hich the compan) 'ill operate. The actual performance against the finaliGed suppl) plan 'ould be compared ever) month and anal)sis carried out to identif) the variances. Plans to reduce these variances in the future 'ould be discussed. Proposed Solutio! A combination of AP @ !P and "P modules and H are reJuired to support the process in this phase. This 'ill be reJuired in (arch *00?.
The historical information on sales forecasts and actual sales 'ill be stored in H. !emand Planner 'ould use this information and appl) forecasting models to generate the baseline forecast. The !emand Planner 'ould store the information in a multidimensional data structure that 'ould enable it to
29
aggregate the information and drill do'n the aggregated information. nce finaliGed, the forecast can be froGen. !emand Planner can also be used to calculate various measures such as forecast accurac). "uppl) et'orB Planning matches purchasing plan to demand and balances and optimiGes the entire net'orB. #onstraints such as production capacities, inventor) reJuirements along 'ith the master data 'ould be maintained in 28=. "uppl) et'orB Planning 'ould e5tract the relevant master data and use it for carr)ing out the Planning run. The matching of demand and suppl) is done either using heuristics or optimiGation. euristics determines a feasible plan. It considers lead time and calculates dependent reJuirements. ptimisation 'orBs on meeting the obective function using either a linear program or a mi5ed integer program or net'orB flo' algorithms as appropriate. Planning booBs are used to generate multiple plans. hatif "imulations can be carried out to generate multiple scenarios 'hich can be used for comparison. The output of the optimiGation8heuristic 'ould be the suppl) plan @ the Juantities that need to be purchased and the offtaBe plan @ the movements reJuired in the entire suppl) chain net'orB.
30
)iing and Net,or8ing 93asis relating roosal The technical landscape of "umitomo after phase V 'ill be as sho'n belo'.
))O % $#6 based .7thoriation
$ser Comm7nity
)7mitomo 'm1loyees
)7mitomo 6.N
).P 'nter1rise Portal
).P .11lications
+y).P +y).P '#P
).P ).P )C+
).P .da1ter
+essage 37s and "ransformation
(eb)1here +essage 3ro8er
).P 3!
(eb)1here "; 'tender
(eb)1here Partner 5ate,ay
323 6ayer Net,or8 6ayer
Other )ystems? 'ternal )ystems
).P C#+
" i v o l i ) t o r a g e + g r
!ntranet &PN?'tranetF!nternet
Portnet
C7stoms )ys !ns7rance )ystem
E&
(+) n Eeddah (+) )ystem
-P6
Cargo D2D
)hi11ing )ys
)
In addition to the application there are certain additional components 'hich are reJuired for technical infrastructure. (essage Hus and Transformation la)er. This la)er 'ould essentiall) aid in the interchange of messages %4!I or Q($ etc& including routing and format transformation. For solution purposes the eb"phere products are sho'n but it could be an) eJuivalent product.
H*H Integration. This la)er 'ould handle the connection, securit) and protocols for the connectivit) to partners. Though the ebsphere partner gate'a) is sho'n here for the purpose of the solution, it could be an) eJuivalent soft'are.
For details and Phase 'ise landscape please refer Appendi510
31
