FICO Rollout Project

Business Blueprint For Quality Polymer SAP Rollout

By and

Project: Organization: Title: Doc Ref: Version:

SAP Roll Out Quality Polymer Business Blueprint 62417566.doc Final

Date of last change: 7/7/2011

This This docu docume ment nt mark marks s the the comp comple leti tion on of the the Busi Busine ness ss Blue Bluepr prin intt phas phase e of the the SAP SAP R/3 R/3 implementation for Quality Polymer. With this acceptance, the following document is confirmed and becomes the basis for the next phase (Realization) to proceed.

Name

Title

Team for Quality Polymer Sdn. Bhd. : Kurai raish Hatim

Team Leader, Sales and Distrib ribution

Veno Gober

Team Leader, Material Management

Chow Chow Kwan Kwang g Cha Chaii

Team Team Lead Leader er,, Pur Purch chas asin ing g

Janet Ling

Co-Team Leader, Production Planning

Ng Ho Hong Ch Chee

Co-Te -Team Le Leader, Pr Production Pl Planning

Chea Cheam m Hen Heng g Lai Lai

Team Team Lead Leader er,, Fin Finan anci cial al & Con Contr trol olli ling ng

Yaw Seng Heng

Project Advisor

Choo Kim Soon

Project Manager Team Leader, Technical

Ea Consulting Asia Pacific Sdn. Bhd. : Wong Wei Ling ing

Team Leader, Sales les and Distr istriibutio tion, Financial & Controlling

Adeline Lee

Project Manger Team Leader, Purchasing and Invoice Verification

Ramesh Sunkarapalli

Team Leader, Production Planning

Signature

Date




This This docu docume ment nt mark marks s the the comp comple leti tion on of the the Busi Busine ness ss Blue Bluepr prin intt phas phase e of the the SAP SAP R/3 R/3 implementation for Quality Polymer. With this acceptance, the following document is confirmed and becomes the basis for the next phase (Realization) to proceed.

Name

Title

Team for Quality Polymer Sdn. Bhd. : Kurai raish Hatim

Team Leader, Sales and Distrib ribution

Veno Gober

Team Leader, Material Management

Chow Chow Kwan Kwang g Cha Chaii

Team Team Lead Leader er,, Pur Purch chas asin ing g

Janet Ling

Co-Team Leader, Production Planning

Ng Ho Hong Ch Chee

Co-Te -Team Le Leader, Pr Production Pl Planning

Chea Cheam m Hen Heng g Lai Lai

Team Team Lead Leader er,, Fin Finan anci cial al & Con Contr trol olli ling ng

Yaw Seng Heng

Project Advisor

Choo Kim Soon

Project Manager Team Leader, Technical

Ea Consulting Asia Pacific Sdn. Bhd. : Wong Wei Ling ing

Team Leader, Sales les and Distr istriibutio tion, Financial & Controlling

Adeline Lee

Project Manger Team Leader, Purchasing and Invoice Verification

Ramesh Sunkarapalli

Team Leader, Production Planning

Signature

Date

Project: Organization: Title: Doc Ref:

SAP Roll Out Quality Polymer Business Blueprint 62417566.doc

Version:

Final


Table of Contents Table of Contents................................................... Contents............................................................................................. .............................................................. .................... ..3 Table of Exhibits.................................................. Exhibits...................................................................................................... .................................................... ..............6 ........... ...6 1 Executiv Executive e Summary...................................... ................................................................................ ............................................................. ............................. .......... 1 2 Quality Polymer Rollout Project Overview........................................ ......................................................................... ................................. 2.1 Project Organization ......................................................................... ..................................................................................... ...................... ............... ..... 2.2 Project Scope ......................................................... .................................................................................................. ......................................... .......... ............ .. 2.3 Project Timeline ......................................................................................................... ......................................................................................................... ..

2 2 3 3

3 Organiza Organization tion Structure.......................................... ........................................................................................... ................................................. .......... ............. ... 5 3.1 Financials Financials ..................................................................................... .............................................................................................. ................... .................... ............ .. 5 3.1.1 Financials Organizatio Organization n Structure..................................... .................................................. ....................... ................... ......... 5 3.1.1.1 Credit Control Area....................................... ............................................................................. ...................................... 5 3.1.1.2 Cost Center Hierarchy........................................... ............................................................. ............................ ............ 6 3.1.1.3 Profit Center Hierarchy.......................................... ............................................................ ............................ ............ 7 3.2 Logistics......................................... .................................................................................... ............................................................................... .................................... 8 3.2.1 Sales Organizati Organization on Structure........................................... ..................................................... ..................... ..................... ............ .. 8 3.2.1.1 Sales Area......................................... .......................................................................................... ................................................. 8 3.2.1.2 Shipping Point.................................................................................... Point .................................................................................... 9 3.2.2 Purchasing Organization Structure....... .............. .............. .............. .............. .............. .............. .............. .............. ........... ...... 10 3.2.3 Inventory Management Organization Structure....... .............. .............. .............. ............ ......... ........ ........ ........ .... 11 3.2.3.1 Storage Locations for Quality Polymer....... .............. .............. .............. .............. .............. ............. ...... 11 4 Master Data ...................................... ................................................................................. .................................................................................... ......................................... 13 4.1 Financials Financials ..................................................................................... .............................................................................................. ................... .................... ............ .. 13 4.1.1 Order Type........................................ ................................................................................... ............................................................. ..................... ... 13 4.2 Logistics......................................... .................................................................................... ............................................................................... .................................... 13 4.2.1 Custome Customers rs and Vendors.......................................... .................................................................................... .......................................... 13 4.2.2 Material Types..................................... ................................................................................ .............................................................. ................... 13 4.2.3 Material Types, Material Groups and Number Ranges....... .............. .............. .............. ............. .......... .... 14 4.2.4 Material Valuation Valuation and Account Determination....... .............. .............. .............. .............. .............. ............ ........ ... 14 4.2.5 Product Hierarchy....................................... ............................................................................. ...................................... .......... ................ ...... 14 4.2.6 Batch Management........................................................................................... Management ........................................................................................... 14 4.2.7 Shelf Life Expiration Date (SLED) and Classification Class ification for Batch Specification Specif ication. .. . 15 4.2.8 Bill of Materials (BOM) ........................................ ........................................................................ ................................ .......... .............. .... 15 4.2.8.1 Material BOM..................................... ................................................................................ ................................................. ...... 15 4.2.8.2 Alternate BOM...................................... ................................................................................... ............................................. . 15 4.2.9 Master Recipe....................................... ................................................................................. ...................................................... .................. ...... 16 4.2.10 Recipe Group....................................... .................................................................................. .................................................... ................ ....... 16 4.2.11 Resources (Work Centers)...................................... .............................................................................. ........................................ 16 4.2.11.1 Processing Processing Unit: ................................................................ ................................................................ .......... .............. .... 16 4.2.11.2 Labor: .......................................... ................................................................................... ......................................... .......... 16 4.2.12 Productio Production n Versions........................................... ................................................................................... ........................................ ..... 16 5 To-Be Busines Business s Scenario Scenarios s...................................... ................................................................................................. ........................................................... . 18 3



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5.1 Sales and Distribution .................................................................................................. 18 5.1.1 BS130 Sales from Stock (Tanker)..................................................................... 18 5.1.2 BS130 Sales from Stock (Tote Tank)................................................................ 19 5.2 Purchasing and Invoice Verification............................................................................. . 20 5.2.1 BS215 Procurement for Stock – Raw Material .................................................. 20 5.2.2 BS233 Vendor Consignment of IBC tote......................................................... .. 21 5.3 Inventory Management ................................................................................................. 21 5.3.1 BS273 Creation of Material Master for Quality Polymer.................................... 22 5.3.2 BS297 Stock Adjustment during Tanker Exit ..................................................... 22 5.3.3 BS298 Blocking of Tote tanks used for temporary storage................................ 22 5.4 Production Planning...................................................................................................... 23 5.4.1 BS329 Planning by Production.......................................................................... 23 5.4.2 BS331 Production Planning - Make to Stock..................................................... 23 5.4.3 BS352 Production Planning – Pilot Production for New Materials..................... 24 5.4.4 BS 353 Production Planning - Canning Balance............................................... 25 5.4.5 BS347 Production Planning - Reprocess Formula.............................. .............. 25 5.4.6 BS348 Production Planning – Assorted Materials............................................. 27 5.4.7 BS351 Production Planning – Common Semi Finished Material ....................... 27 5.5 Financial Accounting..................................................................................................... 27 5.6 Controlling.................................................................................................................... 28 6 Interfaces and Enhancements............................................................................................. 29 6.1.1 Interfaces................................................................................................... ....... 29 6.1.2 User Exits.......................................................................................................... 29 7 Conversion Approach.......................................................................................................... 29 7.1 Conversion strategy...................................................................................................... 7.2 Conversion Data Preparation........................................................................................ 7.3 Actual Conversion ........................................................................................................ 8 Authorizations......................................................................................................................

29 29 29 30

9 System Landscape............................................................................................................... 30 9.1 System Environment..................................................................................................... 30 9.2 Transport Strategies............................................................................................... ...... 31 10 Training............................................................................................................................... 31 11 Testing Approach............................................................................................................... 32 11.1 Test data .................................................................................................................... 32 11.2 Testers (Users) for UAT.............................................................................................. 32 Appendices.............................................................................................................................33 Appendices.............................................................................................................................33 A. Functional Requirements...................................................................................................33 A. Functional Requirements...................................................................................................33 B. To-Be Business Scenario Master List...............................................................................33 B. To-Be Business Scenario Master List...............................................................................33 C. List of Reports.............................................................................................................. ......33 4



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C. List of Reports.............................................................................................................. ......33 D. List of Forms.......................................................................................................................33 D. List of Forms.......................................................................................................................33 E. List of Conversion Objects................................................................................................33 E. List of Conversion Objects................................................................................................33

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Final


Table of Exhibits Figure 2.1.1: Rollout Project Organization........................................................................ ....2 Figure 2.2.2: Scope of Quality Polymer Rollout....................................................................3 Figure 2.3.3: ASAP Implementation Methodology................................................................3 Figure 2.3.4: Timeline for Quality Polymer Rollout ..............................................................4 Figure 3.1.5: Mapping of Credit Control Area................................................................ .......5 Figure 3.1.6: Mapping of Cost Center Hierarchy...................................................................6 Figure 3.1.7: Mapping of Profit Center Hierarchy......................................................... ........7 Figure 3.2.8: Mapping of Sales Area......................................................................................8 Figure 3.2.9: Mapping of Shipping Point...............................................................................9 Figure 3.2.10: Mapping of Purchasing Organization Structure...........................................10 Figure 3.2.11: Mapping of Inventory Management Organization Structure........................11 Figure 3.2.12: Storage Locations for Quality Polymer.................................................. .......12 Figure 4.1.13: Order Types.....................................................................................................13 Figure 4.2.14: Material Types.................................................................................................13 Figure 4.2.15: Material Types, Material Groups and Number Ranges.................................14 Figure 4.2.16: Additional Product Hierarchy for Quality Polymer..................................... ..14 Figure 4.2.17: Batch Number Assignment............................................................................14 Figure 4.2.18: Sample of a BOM.............................................................................................15 Figure 9.1.19: NPM System Landscape & Additional Server for Quality Polymer Rollout 31

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Page 1 of 33 Date of last change: 7/7/2011

1 Executive Summary This report contains the conceptual design of the SAP R/3 system for Quality Polymer. The Business Blueprint document maps and translates the ‘To-be’ business requirements of Quality Polymer, which were gathered during the business workshops, into design decisions in the SAP R/3 system. As this is a rollout implementation from Nippon Paint SAP R/3 system, Quality Polymer will adopt most of the relevant business scenarios and business processes from Nippon Paint Malaysia (hereafter also referred to as “NPM”). The main purpose of this report is to describe and freeze the scope of implementation, in order to ensure a timely, effective and successful implementation. The report will highlight all the adopted business scenarios from Nippon Paint Malaysia and focus on the additional business scenarios and business processes. Quality Polymer will fall under the NPM umbrella of controlling area, thus, fully using the company code that has already been setup during Project Cheetah Implementation. Company code for Desa Baiduri, a subsidiary of Quality Polymer, will also be introduced for this rollout implementation. Costs incurred by departments and sub-departments can be viewed in a cost center hierarchy . These can be matched against the revenue generated by Profit centers, which will also be structured to the companies. As with all SAP R/3 company codes in NPM, Quality Polymer will share the same credit control area, continuing the trend to consolidate credit limit per customer buying from more than one company. Quality Polymer will have one Sales Organization and Distribution Channel to handle its sales processing. A single Purchasing Organization is also identified to handle the procurement for the whole company. For the logistics structure under the company code, one plant with multiple storage locations is used to monitor the inventory of the company. This plant will also be the production plant for all of Quality Polymer productions. Four different storage locations are used to house the four raw materials tanks and another twelve storage locations are used to map to the twelve storage tanks for the finished goods. There will be other storage locations identified for other logical mapping. Finally, it is important to note that the conceptual design detailed in this document is to streamline expectations and clarify the scope, which will act as a base for the remaining phases.




2 Quality Polymer Rollout Project Overview 2.1

Project Organization

The Rollout Project is under the responsibility of the Steering Committee, which is headed by the MD of Quality Polymer, Lee Buck Siang. Daily project activities were undertaken by the project team members from the combination of core Project Cheetah Team Leaders from each module, identified key users from Quality Polymer and ea Consultants under the supervision of the internal project managers, Choo Kim Soon and the external project manager Adeline Lee. In addition, ea Consulting Manager, Alfred Chong provides quality review and overall project direction with Mr. Yaw Seng Heng as the Project Advisor on the best business processes to adopt from NPM.

Project Team Organisation Structure Steering Steering Committee Committee

Project Project Sponsor Sponsor Mr Mr Lee Lee Buck Buck Siang Siang Quality Quality Review Review Alfred Chong Alfred Chong

Project Project Advisor Advisor Yaw Yaw Seng Seng Heng Heng Project Project Manager Manager Adeline Adeline Lee Lee (ea) (ea)

Mr Mr Lee Lee Buck Buck Siang Siang (MD) (MD) Mr Yaw Seng Mr Yaw Seng Heng Heng (GM) (GM) Mr Mr Leong Leong Wai Wai Khoon Khoon Ms Ms Wong Wong Siew Siew Ying Ying Adeline Adeline Lee Lee (ea) (ea) Alfred Alfred Chong Chong (ea) (ea) Choo Choo Kim Kim Soon Soon

CoCo- Project Project Manager Manager Choo Choo Kim Kim Soon Soon

BASIS/ABAP BASIS/ABAP Choo Kim Soon (TL) Lee Kian Ann Damodaran

FICO FICO Cheam Heng Lai (TL) - Jesmine (PU) Charlotte Chong (QP) Wong Wei Ling (ea)

MM/PUR MM/PUR

SD SD

Veno Gober (TL-MM) Kuraish Hatim (TL) - Mdm Song (PU) - Zawiah (PU) - Ms Lin (PU) Chow KC (TL-PUR) Azreen (QP) Norhafizah (QP) Wong Wei Ling (ea) Adeline Lee (ea)

PP PP Ng Hong Chee (TLProcess) - Zawiah (PU) Janet Ling (TL-Master Data) Lum (QP) Ramesh SV(ea)

Figure 2.1.1: Rollout Project Organization

2


2.2



Project Scope

As this is a rollout system from NPM, with the exception of Warehouse Management, all modules will be rolled out to Quality Polymer. Desa Baiduri, being a subsidiary of Quality Polymer will only be implemented with the Financial and Management Accounting Module. The table below denotes the modules that will be implemented for the two companies. Existing NPM SAP Module

Quality Polymer Financial Accounting (FI) Yes Management Accounting (CO) Yes Sales and Distribution (SD) Yes Purchasing (MM-PUR) Yes Invoice Verification (MM-IV) Yes Inventory Management (MM-IM) Yes Warehouse Management (MM-WM) Production Planning (PP) Yes Figure 2.2.2: Scope of Quality Polymer Rollout

2.3

Desa Baiduri Yes Yes -

Project Timeline

The implementation approach for the rollout project is based on the Accelerated SAP (ASAP) implementation methodology. ASAP is broken into five stages as shown in the diagram below:

ASAP Methodologies

A results-based roadmap to ssupport upport the the core core components of an SAP implementation

Figure 2.3.3: ASAP Implementation Methodology

Stage 1 - Project Preparation The purpose of this stage is to perform initial project planning and preparation activities for the follow-up phases. Major activities include preparing the project infrastructure, identifying the project team members and developing a detailed project plan. Stage 2 – Business Blueprint The purpose of this stage is to document the Business Blueprint, which maps the business requirements into SAP and defines the approaches to be used in activities like conversion, 3




training and testing under the Realization phase. It is the result of requirement gathering workshops and prototyping efforts. The Business Blueprint is an important component of ASAP as it specifies the conceptual design on which the rest of the implementation is based. Stage 3 – Realization The purpose of this stage is to configure all of the business requirements based on the Business Blueprint conceptual design. The objectives are to configure the system, develop and test interfaces, conversion programs, enhancements and reports as well as conduct overall integration test. System authorizations are also created, user acceptance tests are conducted, and preparation for end user training is established. Stage 4 - Final Preparation The purpose of this stage is to prepare for going live. Activities in this phase include end-user training, system management, and actual conversion of “live” data, “cut-over” activities and formation of an internal help desk to support the organization after going “live”. Stage 5 – Go-Live and Support The purpose of this stage is move from a pre-production environment to a live production operation environment. A support team for power users must be formed for the initial critical days of going live as well as to support end users for a long-term period. The Rollout Project commenced on 8 th October 2003 and is a three-month project implementation. The integration of the logistics modules and the financial modules demand an aggressive timeline as depicted in the diagram below.

Project Timeline Project Management

ASAP Phase

Oct

Nov

Dec

Jan

Weeks

Project Preparation

1

Business Blueprint

3

Realization

9

Final Preparation Go Live & Support Note: 15 weeks project with certain weeks overlapping

3 Go Live

Total

2 15

5th January 2003 Figure 2.3.4: Timeline for Quality Polymer Rollout

4




3 Organization Structure 3.1

Financials

3.1.1 Financials Organization Structure 3.1.1.1 Credit Control Area A credit control area is an organizational unit for specifying and controlling customer credit limits. The credit limit assigned to a customer is valid across all company codes in the credit control area. Quality Polymer belongs to the same credit control area as NPM. Therefore Quality Polymer will adopt the criteria for credit check from NPM. The credit limit will be checked during the creation of sales order and delivery order. The system will block any sales order or delivery order that fails the credit check. Approval by the Credit Representative is required before the sales document can be further processed.

Financial Organization Structure

300 Production

Client

Credit Control Area

1000 Nippon Paint

Company Code

7000 Quality Polymer

Sales Organisation


7100 Desa Baiduri

Figure 3.1.5: Mapping of Credit Control Area

5




3.1.1.2 Cost Center Hierarchy The standard hierarchy and coding structure of the cost centers for Quality Polymer and Desa Baiduri are as follows:

Cost Center Hierarchy NPGROUP Nippon Paint Group

70101000 Production

70103000 Technical

70102000 QC


71000000 Desa Baiduri

70100000 Pasir Gudang


70106000 FG W/hse

70104000 Sales & Marketing

70109000 Safety& Health

70108000 Management

70111000 Purchasing

70110000 Finance& Audit

70113000 IT

70199000 Dummy

70112000 HR &Gen Admin

70101300 Emulsion

70112100 Human Resources

70101500 RawMaterials

70112200 GeneralAdmin

71101000 Gen Admin 71102000 Sales

70101600 Maint&Water Treatment

1000 Controlling Area

70101700 Factory Office

Figure 3.1.6: Mapping of Cost Center Hierarchy

6




3.1.1.3 Profit Center Hierarchy The standard hierarchy and coding structure of the profit centers for Quality Polymer and Desa Baiduri are as follows:

Profit Center Hierarchy

NPGROUP Nippon Paint Group


71000000 Desa Baiduri



1000 Controlling Area

Figure 3.1.7: Mapping of Profit Center Hierarchy

7


3.2



Logistics

3.2.1 Sales Organization Structure 3.2.1.1 Sales Area The sales area and assignment of the sales organization to the company code for Quality Polymer is as shown below. Sales Organization Structure – Sales Area

Company Code


Sales Organisation


Distribution Channel

Division

7A Pasir Gudang

01 General Sales Area

Sales Office

7001 Pasir Gudang

Figure 3.2.8: Mapping of Sales Area

8




3.2.1.2 Shipping Point The shipping point is required for delivery processing. The figure below shows the assignment of the shipping point to the plant.

Sales Organization Structure – Plant & Shipping Point

Company Code


Sales Organization


Distribution Channel

7A Pasir Gudang

Plant

7001 Pasir Gudang

Shipping Point

7001 Pasir Gudang

Figure 3.2.9: Mapping of Shipping Point

9




3.2.2 Purchasing Organization Structure The Purchasing Organization Structure for Quality Polymer is as follows:

Purchasing Organization Structure

Company Code


Purchasing Organisation


Purchasing Group

Plant

100 Raw material purchases

300 Non-stock and services items purchases

400 Trading items

301 Other item purchases


Figure 3.2.10: Mapping of Purchasing Organization Structure

10




3.2.3 Inventory Management Organization Structure The Inventory Management Organization Structure for Quality Polymer is as follows:

Inventory Management Organization Structure

Company code


Plant


3000 Finished goods

3701

3702

3703

3704

3705

3706

3707

3708

3709

3710

3711

3712

FG

FG

FG

FG

FG

FG

FG

FG

FG

tank 1

tank 2

tank 3

tank 4

tank 5

tank 6

tank 7

tank 8

tank 9

FG tank10

FG tank11

FG tank12

Storage Locations

1000

Raw material

WH

1101

1102

1103

1104

2200

Monomer tank 1

Monomer tank 2

monomer tank 3

Monomer tank4

EMPlant

2400 Maintenance Misc

4000 Waste

5000 Technical Dept

5100 Marketing Misc

Figure 3.2.11: Mapping of Inventory Management Organization Structure

3.2.3.1 Storage Locations for Quality Polymer The details of Storage Locations for Quality Polymer are as follows: Storage Location 1000

Location Description Raw Material Warehouse

1101 1102 1103 1104 2200

Monomer tank 1 Monomer tank 2 Monomer tank 3 Monomer tank 4 EM Plant

2400

Maintenance Misc

Type of Storage It stores raw materials such as additives, catalyst and Surfactant Stores monomer Stores monomer Stores monomer Stores monomer Represents Quality Polymer Production area that stores raw materials before it goes into production. Stores filter bags, parts, boiler materials, water treatment materials and indirect materials

11




Storage Location 3000

Location Description Finished Goods

Type of Storage Serves as a temporary storage location and stores finished goods.

3701 3702 3703 3704 3705 3706 3707 3708 3709 3710 3711 3712 4000 5000 5100

FG tank 1 Represents Storage Tank 1 FG tank 2 Represents Storage Tank 2 FG tank 3 Represents Storage Tank 3 FG tank 4 Represents Storage Tank 4 FG tank 5 Represents Storage Tank 5 FG tank 6 Represents Storage Tank 6 FG tank 7 Represents Storage Tank 7 FG tank 8 Represents Storage Tank 8 FG tank 9 Represents Storage Tank 9 FG tank 10 Represents Storage Tank 10 FG tank 11 Represents Storage Tank 11 GF tank 12 Represents Storage Tank 12 Waste Stores disposed product ie. Sludge etc. Technical Dept Stores materials from QC Lab Marketing Misc Stores T-shirts, uniforms, calendars etc. Figure 3.2.12: Storage Locations for Quality Polymer

12




4 Master Data 4.1

Financials

Quality Polymer will adopt the chart of accounts and account groups from NPM. 4.1.1

Order Type

Internal orders are used to collect, monitor and settle costs. The order types to be used by Quality Polymer are as follows: Order Type 7EMP 7VEC 7FOK 7MKT 7RPC 7QP1 7DIS

4.2

Name Staff Expenses Motor Vehicle Expenses Forklift Maintenance Marketing & Promotion/Project Expenses Repacking Order Quality Polymer Ad-Hoc Order Quality Polymer Discount Figure 4.1.13: Order Types

Range From 710000 720000 730000 740000 760000 770000 External

To 719999 729999 739999 749999 769999 779999 External

Logistics

4.2.1 Customers and Vendors Quality Polymer will adopt both the customer and vendor account groups and partner functions from NPM. 4.2.2 Material Types For Quality Polymer Rollout, the following material types will be adopted from NPM: Material Type ROH

HALB FERT HAWA ZIND

LEIH VERP PIPE ZDM ZWTM

Material Description Raw Material

Types of Material Raw material used to produce finished goods. The loose finished goods will also be identified by this material type, due to the NPM design that has been up. Semi-Finished Product Semi-finished goods produced in-house or through subcontractor, and it is used to produce finished goods. Finished Goods Final product from production and pack in various packaging sizes. Trading Goods Materials purchased externally and sell to customer. Indirect Material Materials that are not part of trade, and mainly classified as consumable material for used in production such as Boiler materials, Water treatment chemicals, consumables and cooling towers. Returnable Packaging Packaging materials such as tote tanks. Packaging Material Packaging materials such as tote tanks, drums and pails. Pipeline Material Materials such as water that flow into the production process directly. Development Materials Material record is created for costing simulation purpose. This material type will not allow quantity or value updates. Waste Materials Materials used to track waste generated. This material is managed at quantity basis only. Figure 4.2.14: Material Types

13




4.2.3 Material Types, Material Groups and Number Ranges Materials with the same attributes can be assigned to a material group for analysis and search purposes. Each material is assigned a material number to represent a material master record created in SAP system. For Quality Polymer Rollout, the following material groups and number ranges have been identified: Material Type Raw Material (ROH) Packaging Material (VERP) Indirect Materials (ZIND)

Material Group Material Description Number Range ROH008 Monomer M001 – M999 VERP005 Tote PT0000000 – PT9999999 VERP006 IBC PI0000000 – PI9999999 ZIND009 Boiler Materials IM521 – IM530 ZIND010 Consumables IM531 – IM540 ZIND011 Cooling Towers IM541 – IM550 Figure 4.2.15: Material Types, Material Groups and Number Ranges

4.2.4 Material Valuation and Account Determination Quality Polymer will adopt Material Valuation and Account Determination from NPM. 4.2.5 Product Hierarchy Product Hierarchy is used to group materials by combining different features. It is mainly used for analysis and pricing. Below is the new product hierarchy relevant for Quality Polymer Rollout: Material Type ROH ROH ROH ROH

Product Hierarchy

First Level

Second Level

Third Level

200021010200000005

20002 2000210102 Vinyl Acetate Copolymer Latex Copolymer 200021010400000006 20002 2000210104 Homo Polymer Latex Others – Latex 200041030000000012 20004 2000410300 Catalyst Additive Water Based Additive 2000810700 20008 Monomer Monomer Figure 4.2.16: Additional Product Hierarchy for Quality Polymer

4.2.6 Batch Management Similar to NPM, batch management will be used to differentiate material with heterogeneous yield, result qualities or varying constituents. In order to monitor a batch, a number is assigned to uniquely identify it. The following number ranges will be assigned for Quality Polymer: Types of Material Batch Number Assignment Assorted Material yymmddQA01 – QA99 Semi-Finished Product (HALB) & Finished yymmddQ100 – Q999 Goods (FERT) Trading Goods (HAWA) Free format(10 Digits) Raw Material (ROH) 000Q100000 – 000Q999999 (10 Digits) Internal Number(10 digits) Packaging Material (VERP) Figure 4.2.17: Batch Number Assignment

All batches will have internally assigned numbering. Batch records will be created upon goods receipt as per purchase order and upon release of process orders for materials produced inhouse 14




4.2.7 Shelf Life Expiration Date (SLED) and Classification for Batch Specification SLED and Classification is also adopted in Quality Polymer Rollout. Together with the production date, SLED will provide Quality Polymer with the material expiration date while the classification will store all the Quality Inspection Specification for any particular batch. 4.2.8

Bill of Materials (BOM)

The Bill of material (BOM) can de defined as a formally structured list of components that make up a finished product or semi finished product. For Quality Polymer, the following types of BOM will be created: 4.2.8.1 Material BOM The components of a material BOM are defined as components that are used during the production process. A BOM specifies the proportion or the actual quantities of the lower level components to be used in the final product. The highest level of the BOM is defined as level zero. Generally for Quality Polymer, up to three (Level 0-2) levels of BOM will be identified (Currently only one material has 4 Levels of BOM). Example of a BOM to manufacture product L012BC1 (current material naming convention):

L012BC1

Level 0

L012

M001

BC1

Level 2

SR7000

M002

Level 1

M003

Level 3

Figure 4.2.18: Sample of a BOM

Level 0 will be for the finished product with a specific packing size. Level 1 will consist of the loose semi-finished material and packaging material. Level 2 and below will consist of semifinished and raw materials to manufacture the semi-finished product of the next higher level. 4.2.8.2 Alternate BOM A finished or semi-finished material can be produced from alternative combinations of materials depending on the quantity to be produced (lot size). The product is represented by a number of alternative BOMs. Differences between alternative BOMs are very minimal.

15




4.2.9 Master Recipe A master recipe is used for the manufacturing of a semi-finished product or finished product. A master recipe consists of a header and several operations. Each operation is carried out at a primary resource. An operation is subdivided into phases. Each phase has one or more process instructions. For example, the operation Premixing can have the following phases: •

Prepare raw materials

•

Mix raw material homogenously.

4.2.10 Recipe Group A Recipe Group is a 6-character field, which can be assigned internally or externally. The Recipe Group can combine several masters with following criteria: •

•

Different production processes for the same material. For example, the production process can be different if a similar material is produced for two different lot sizes. Similar production processes for different materials. Like two different materials may have the same production process

For Quality Polymer, the numbering for the Recipe Group will be internally assigned as follows : Type of Group Recipe Group

Internal Number Range 50000 - 599999 Figure4.2.5.2: Mapping of Recipe Group

4.2.11 Resources (Work Centers) Resources are production facilities and persons involved in a production process that have different capacities. They are subdivided into categories to specify their suitability for certain purposes or their use in certain processes. Resources can be categorized as either processing units or labor. 4.2.11.1 Processing Unit: Processing units are resources used in production. For Quality Polymer, Monomer Mixing Tank(MMT) and Reactor are examples of processing units. Processing units are linked to cost centers and activity types. For Quality Polymer, one cost center will be defined for each and every work center. The rate will be pre-defined for labor and machine activities. Production cost will then be calculated by multiplying actual processing time with the rate. The resulting data is used for process order settlement. 4.2.11.2 Labor: Labor resources are people in the production process who have different levels of capacity assigned to them. Labor resources contain data that can be used by production planning (capacities) and by personnel administration (employee). Process worker and drumming hands are examples of labor resource used in Quality Polymer’s environment. 4.2.12 Production Versions Production versions are used in situations where one material can be produced by several production processes. A production version determines which alternative BOM is used together with a chosen master recipe to produce a semi-finished product or a finished product.

16




For one semi-finished product or finished product, there can be several production versions with various validity periods and lot-size ranges. Production versions are used together with alternative BOMs. The different ways of production are defined as production versions. The Numbering of Production Versions is Q1,Q2…..,Q9.

17




5 To-Be Business Scenarios 5.1

Sales and Distribution

In addition to new business scenarios that are specific only to Quality Polymer, Quality Polymer will also adopt the following Sales and Distribution business scenarios from NPM: •

BS103 Maintenance of Customer Master

•

BS104 Maintenance of Customer Partner Function

•

BS105 Maintenance of Customer Info Record

•

BS106 Maintenance of Pricing Structure

•

BS122 Sales from Stock

•

BS125 Trading Sales

•

BS126 Cash Sales

•

BS128 Credit Note Processing

•

BS129 Debit Note Processing

•

BS141 Goods Return from Customer

•

BS142 Replacement of Goods / Exchange of Goods

•

BS143 Development Material Sample Processing

•

BS147 Handling of Returnable Packaging

•

BS149 Charge Back to Transporter

5.1.1 BS130 Sales from Stock (Tanker) When a customer confirms a sale with Quality Polymer, the Sales Administrator needs to create the sales order in SAP. The Sales Administrator will create a sales order based on the customer purchase order. SAP will perform an availability check for the loose FERT. The availability check will allow the Sales Administrator to verify if the requested delivery date can be met or a new delivery date is to be proposed. When the sales order is saved, SAP performs a check on the customer’s credit limit. Depending on the customer’s credit status, different criteria can be set for credit limit check. If the customer does not pass the credit limit, a block will be imposed on the sales order. No further processing of the sales order is possible until the approval is executed. Once the sales order is free from the credit limit block or the credit limit block has been released by the Credit Representative, the Sales Administrator informs the Production Department to create a process order for filling up the tanker with the loose FERT. After the process order has been released, goods movement is allowed for the process order. Before the tanker is filled up with the loose FERT from the storage tank, the tanker must be weighed to obtain the Berat Tanpa Muatan (BTM). After the tanker has been filled up, the tanker 18




will be weighed again to obtain the Berat Dengan Muatan (BDM). Goods are issued as per the quantity difference between the BTM and BDM. After the process order has been confirmed, a goods receipt is done for the process order and the Production Department will inform the Sales Administrator the confirmed quantity. The Sales Administrator creates the delivery order based on the confirmed quantity. Another round of credit limit check is done for each delivery order. This is to safeguard the change of customer’s credit limit status from the time of sales order to the delivery order. However, depending on additional credit limit settings, sales orders that have been approved might not be subject to checking during delivery order. As in sales order processing, if the customer does not pass the credit limit, a block will be imposed on the delivery order. No further processing of the delivery order is possible until the Credit Representative has released the credit limit block. The delivery order is printed after the Sales Administrator post goods issue for the delivery order. The Gate Pass will also be created. A printout of the Gate Pass is given to the transporter for security clearance before leaving the premises of Quality Polymer. The Sales Administrator will only generate billing documents to the customer once the transporter has returned a copy of the delivery order to Quality Polymer. When the billing document is generated in SAP, an accounting document is also recorded immediately in the customer accounts receivable. With this posting, the Finance Department will clear the invoice against incoming payment received. 5.1.2 BS130 Sales from Stock (Tote Tank) When a customer confirms a sale with Quality Polymer, the Sales Administrator needs to create the sales order in SAP. The Sales Administrator will create a sales order based on the customer purchase order. In addition to the material requested, the Sales Administrator will also have to enter an additional line item for returnable packaging If the purchase order is from NPM, the Sales Administrator cannot use the material number from the purchase order but have to select the appropriate material number based on the unit of measure in the purchase order. SAP will perform availability check for all items in the sales order. The availability check will allow the Sales Administrator to verify if the requested delivery date can be met or a new delivery date is to be proposed. When the sales order is saved, SAP performs a check on the customer’s credit limit. Depending on the customer’s credit status, different criteria can be set for credit limit check. If the customer does not pass the credit limit, a block will be imposed on the sales order. No further processing of the sales order is possible until the approval is executed. When the sales order is free from the credit limit block or the credit limit block has been released by the Credit Representative, it is possible to create the delivery order immediately for urgent delivery. Alternatively, the Sales Administrator runs the delivery due list and creates delivery orders for all the sales orders that are due for delivery. Another round of credit limit check is done for each delivery order. This is to safeguard the change of customer’s credit limit status from the time of sales order to the delivery order. However, depending on additional credit limit settings, sales orders that have been approved might not be subject to checking during delivery order. As in sales order processing, if the 19




customer does not pass the credit limit, a block will be imposed on the delivery order. No further processing of the delivery order is possible until the Credit Representative has released the credit limit block. The Warehouse Personnel generates a list of delivery orders that are due for picking and prints the picking list. After picking is done, the Warehouse Personnel will update the delivery order with the confirmed quantity and post goods issue. The Gate Pass will also be created. A printout of the Gate Pass is given to the transporter for security clearance before leaving the premises of Quality Polymer. The Sales Administrator will only generate billing documents to the customer once the transporter has returned a copy of the delivery order to Quality Polymer. When the billing document is generated in SAP, an accounting document is also recorded immediately in the customer accounts receivable. With this posting, the Finance Department will clear the invoice against incoming payment received. Please refer to BS147 Handling of Returnable Packaging for the return of the tote tank from the customer to Quality Polymer.

5.2

Purchasing and Invoice Verification

In addition to new business scenarios that are specific only to Quality Polymer, the following Purchasing and Invoice Verification business scenarios will also be adopted from NPM: •

BS201 Maintenance of Consumption-Based Planning (CBP)

•

BS203 Creation of Purchasing Info Record

•

BS204 Changing of existing Purchasing Info Record

•

BS209 Creating of new Vendor Master for Quality Polymer

•

BS206 Changing of existing Vendor Master

•

BS211 Procurement for Stock – Trading

•

BS212 Procurement for Stock - Indirect Material

•

BS213 Procurement for Direct Consumption - non stock items

•

BS230 One-time Purchase Order

•

BS250 Expedite Purchase Order/Late Delivery

•

BS260 Vendor Evaluation

5.2.1 BS215 Procurement for Stock – Raw Material When Quality Polymer determines a requirement to purchase items ie. raw materials, a Purchase Order will be created in the SAP system. This Purchase Order will be subjected to three levels of approval, also known as the Release Strategy in the SAP system. The levels of approval is dependent on the Purchase Order amount as below: 1. Level 1

< RM5,000

2. Level 2

> RM5,000 – RM500,000 20


3. Level 3



> RM500, 000

Upon approval of the Purchase Order, a hardcopy will be printed out and sent / faxed to the vendor. When the vendor finally delivers the goods to Quality Polymer’s warehouse, a Goods Receipt transaction will be performed in the system to denote the acceptance of goods into warehouse. With this, an accounting document will also be recorded in the system. For good that are batch managed, SAP generates an internal batch number. Therefore it is important to record the vendor’s batch number during Goods Receipt as this will provide a cross reference between SAP batch number and the Vendor’s batch number. Vendors will usually delivers the goods with a copy of Delivery Order and Invoice attached. The invoice will be entered into a system, whereby 3-way-matching of the quantity an amount will be done in the system by comparing the Purchase Order, Goods Receipt and the Vendor’s Invoice. If everything is found to be consistent, payment will be arranged by the Quality Polymer’s Finance Department to the Vendor. Otherwise, Variance Verification will need to be performed among the Quality Polymer’s Purchasing, Finance and the Warehouse. 5.2.2

BS233 Vendor Consignment of IBC tote

This scenario refers to the management of IBC totes, which is one of the packaging materials used in Quality Polymer. As and when there is a requirement from Production Department and there is a shortage of IBC totes, the Purchaser will communicate with the IBC vendor to order for an estimated quantity of IBC totes. A Consignment Purchase Order will be created in the system. The IBC vendor will deliver to the Store in Quality Polymer and Goods Receipt can be performed in the system as non-valuated stock. When these IBC totes are being used up to pack Finished Goods, a Transfer of Consignment Stock needs to be done by performing a Goods Issue transaction in the system valuated at the price charged by the IBC vendor. Upon shipping out the Finished Goods, Quality Polymer will fax a copy of the BL (Bill of Lading) to the IBC vendor. From the BL, the IBC vendor will be able to determine the quantity of IBC totes that they will be invoicing Quality Polymer for. Quality Polymer will then make payment to the IBC vendor.

5.3

Inventory Management

In addition to new business scenarios that are specific only to Quality Polymer, the following Inventory Management business scenarios will also be adopted from NPM: •

BS271 Deletion of existing Material Master

•

BS272 Development Material Master Maintenance

•

BS275 Inventory Management of Storage Location

•

BS276 Inventory Consumed for General Usage

•

BS277 Vendor Return 21




•

BS278 Inventory Disposal

•

BS280 Waste Treatment Processing

•

BS282 Physical Stock Take

•

BS290 Warehouse Housekeeping - SLED Stock

•

BS295 Write Off Stock Processing

•

BS296 Inventory Disposal due to Operation Spillage During Loading

5.3.1 BS273 Creation of Material Master for Quality Polymer When Quality Polymer has a requirement to create a new Material Master in the system, they will need to fill up a ‘Material Master Creation form, which will be sent via email or fax to the NPM’s Technical Department. The Basic and Classification views of a Material Master will then be created by the NPM Technical. Upon successful creation of the Material Master, the Quality Polymer user will be informed of the Material Master number and other details via email or fax. Now, the Quality Polymer user can proceed by extending the Material Master Production’s views (MRP 1, 2, 3, 4, Forecasting and Work Schedule). With this, the Quality Polymer user is able to set up the BOM and Recipe (applicable to Finished and Semi-finished goods only). Next, information on that Material will be sent back again to NPM so that the Material Master creation can be completed by having the Accounting, Purchasing and Sales view centrally created in NPM. Finally, for the Finished goods (FERT) and Semi-finished goods (HALB) only, the Standard Costing will be run in the system to obtain the value of the FERT and HALB concerned. 5.3.2

BS297 Stock Adjustment during Tanker Exit

This scenario takes place when the weight of a tanker that is about to leave Quality Polymer is found to be different from what was available in the storage tank as indicated in SAP. Therefore, adjustment has to be made by performing as follows: 1. If more stock has been detected, the difference will be adjusted by performing a Goods Movement 701 for Goods Receipt into the warehouse in the system, whereby the StockFinished Goods Accounts will be debited and the Stock Adjustment-Finished Goods Accounts will be credited accordingly. 2. Likewise, if less stock has been detected upon tanker exit, the difference will be adjusted by performing a Goods Movement 702 for Goods Issue out of the warehouse in the system, whereby the Stock Adjustment-Finished Accounts will be debited and the StockFinished Goods Accounts will be credited for the difference in amount accordingly.

5.3.3 BS298 Blocking of Tote tanks used for temporary storage This scenario will take care of Tote tanks that are sometimes used for temporary storage. In order to reflect that these tote tanks are unavailable for usage, the Quality Polymer user will have to perform a Goods Movement in the system to mark them as ‘blocked’.

22




Therefore, the user will be able to see that these tote tanks are blocked for usage upon executing a Stock Overview in the system.

5.4

Production Planning

5.4.1 BS329 Planning by Production This Business Scenario caters for planning to be performed by the Production Department. Market survey and past sales information will be used to forecast demand for each material for the purpose of planning the company’s future sales targets for the next 12 months. This forecast period can be flexible based on management decision. The Production Department is responsible for forecasting all the finished materials with specific details. The requirements will trigger planning of production for the next 12 months. Production Department will check the feasibility of the production plan based on available capacity. If there are any issues in capacity or demand, there may be further fine-tuning of the plan. The approved demand forecast will result in the production plan.

After the production plan is finalized, the data is transferred to Demand Management by the Production Department manually, for each material to SAP. A monthly production plan is created for every material for the next 12 months. 5.4.2 BS331 Production Planning - Make to Stock This business scenario caters for the make to stock (MTS) production planning for all the Finished goods/Semi-finished goods of Quality Polymer. For Make To Stock Production Planning, the figures transferred to demand management will form the basis for production. In Demand Management, the requirement for each material is created for each finished material as “Planned Independent Requirements”. A “planned independent requirement “ contains one planned quantity and one date, or a number of planned independent requirements schedule lines, that is, one planned quantity split over time according to dates. The Production Department can split this requirement into weekly or daily time buckets. MRP plans for all the materials in the plant. During the MRP run, planned orders are created for both external procurement and internal production, based on the selections in material master. The system calculates the net requirement for all the materials based on the available quantity. Subsequently a monthly/weekly schedule is prepared. The raw material shortages from planned orders are found in the “Raw Material Shortage Report”. The Raw Material Shortage Report has to be reviewed by the Purchasing Department for follow up with the vendor. The Buyer converts the planned order to a purchase requisition that can be converted to a purchase order at a later date. The Buyer issues the purchase order to the vendor and follows up with the vendor for delivery dates. If the vendor cannot meet the delivery date, the Buyer has to reschedule the delivery date and inform the Production Planner. If the new delivery date of the raw material affects the customer promised date, the Production Planner has to inform the Order Processing Department for necessary actions. 23




The Production Department creates the process orders or converts the planned orders based on the production plan. The following fields are specified on the initial screen during the process order creation: •

Material no. - The semi finished or finished material, for which the process order is to be created. •

•

Production plant - The plant in which the process orders needs to be executed or produced.

Process order type - The process order type distinguishes usage in Production. For Quality Polymer, different process order types are defined for the Normal Order, Reprocessing, Pilot Production and Development Item.

The user specifies the scheduled date of production for the semi finished and finished products, and whether the scheduling type is backward or forward scheduling. In forward scheduling, the user has to specify the basic start date of production. For backward scheduling, the user has to specify the basic finish date of production. The system chooses the first alternative BOM and default master recipe for the process order. If the user wants to use a different BOM, the BOM has to be selected manually. The user also checks the availability of raw materials. If the raw materials are available, the process order can be released. The Production Planner saves the process order and a process order number is generated. After the process order has been saved and released, goods movement is allowed for the process order. If materials are required from the warehouse, the Production Planner furnishes the material shifting requirement to warehouse to transfer materials to the Production Storage Location on the production floor. Goods are issued as per the planned raw material quantity from the Production Storage Location to the process order.

After all the materials are issued to the process order, the Production Department initiates production. Capacity is checked at each work center. If sufficient capacity is not available, the Production Department reschedules the process order. The process instructions for each phase and operation are used to carry out each process step of the production. After the goods are produced, the actual usage of the resources for the process order is confirmed using the standard values and activity types defined in the master recipe of the product. The standard values used are machine hours and labor hours. The Production Planner needs to update the goods issue to the process order before confirming the process order. This information will be used to calculate the actual production cost and variance during process order settlement in product costing. After production is completed, a goods receipt is done for the process order and goods are transferred to the warehouse. 5.4.3 BS352 Production Planning – Pilot Production for New Materials This business scenario caters to production planning of pilot production for new materials by Production Department. The quantity for this production type is generally less than 400 kg. Pilot production is generally for new materials that has been tested in the lab, and now needs to be produced in an up scale quantity to verify the accuracy of the BOM and master recipe. 24




Production Department of Quality Polymer receives requirement for small lot production, generally less than 400kg. Technical Department of NPM creates the material code for the material to be produced by Production Department of Quality Polymer in the system. Production Department creates the BOM and master recipe. Once the master data has been setup, process order is created using a different process order type. After the process order has been saved and released, goods movement is allowed for the process order. The Production Department initiates production after all the materials have been issued to the pilot reactor. After the goods are produced, the actual usage of the materials for the process order is confirmed 5.4.4

BS 353 Production Planning - Canning Balance

This business scenario caters for the consumption of canning balance in production. The canning balance is defined as the leftover loose material less than the standard packing size. Production Department receives the requirement for new demand in the form of sales forecast or sales order and checks if canning balance is available for this demand. If the canning balance is available, Production Department uses this canning balance as a component in Process Order for the new demand. Production Department runs desktop MRP for this material desktop. The system nets off the demand by the canning balance quantity. The Production Department creates the process orders based on the production plan. The user specifies the scheduled date of production for the semi finished and finished products, and whether the scheduling type is backward or forward scheduling. In the process order material list screen, an additional line is included for the canning balance as a component. The user also checks the availability of raw materials. If the raw materials are available, the process order can be released.

After the process order has been saved and released, goods movement is allowed for the process order. The Production Department furnishes materials requirement list for the Process Order to Warehouse. Warehouse will transfer all the materials, based on the list, to the designated Production Storage Location. When all the materials are issued to the process order, the Production Department initiates production. After the goods are produced, the actual usage of the resources for the process order is confirmed. Upon completion, a goods receipt is performed for the process order and goods are transferred to the warehouse. 5.4.5

BS347 Production Planning - Reprocess Formula

This business scenario caters for the following situations where the Technical Department evaluates the possibility of creating a reprocess formula to consume old stock: •

Re-use of slow moving stock

•

Re-use of multiple batches of the same material returned by customer. 25




Production Department reviews the stock report to identify slow moving materials, expired materials and the customer returned materials in the warehouse. This triggers the requirement for Production Department to create Process Order with a different Order Type. Production Department creates alternative BOM for the reprocess material. The alternative BOM contains the returned material and other raw materials. The alternative BOM is created together with a production version for “reprocessing”. The alternative BOM may be used for all returned batches of the same material because there is not much difference in the components and quantity of the various batches. The Production Department needs to create only one alternative BOM for all the batches. Production Department creates the process order based on the reprocess formula (alternate BOM). The user specifies the scheduled date of Production for the semi finished and finished products, and whether the scheduling type is backward or forward scheduling. The system proposes the first BOM by default. The user needs to manually select the “reprocess” production version to trigger the selection of the alternative BOM for reprocessing. The user can manually change the components of the process order based on the requirement. The finish date in the process order are put far ahead in the future so that purchasing department should not procure the material for this process order. The user saves the process order without releasing it.

Production Department checks for new demand and also process orders with the process order type “reprocess”. If there is a requirement that can use the “reprocess” process order, Production Department will use the “reprocess” process order to meet the new demand. The Production Planner releases the process order.

After the process order has been saved and released, goods movement is allowed for the process order. If materials are required from the warehouse, the Production Planner furnishes the material staging requirement for warehouse to transfer materials to the Production Storage Location on the production floor. Warehouse checks the process order and identifies the old or returned stock to be used based on the process order type. The old or returned stock is to be used before placing any new requirements. Warehouse transfers goods to the Production Storage Location. Production Storage Location to the process order.

Goods are issued from the

After all the materials are issued to the process order, the Production Department initiates production. Upon completion, the actual usage of the resources for the process order is confirmed. Goods receipt is also done for the process order and goods are transferred to the warehouse.

26




5.4.6 BS348 Production Planning – Assorted Materials Assorted materials are materials produced during production where the quality is not as per the required specification. Production Department will confirm the process order till the operation where production was abandoned. The process order must be ‘Technically Completed’. Goods receipt is performed for the product and the stock is blocked.

5.4.7

BS351 Production Planning – Common Semi Finished Material

A number of common semi finished materials are used in the production of finished materials. Production Department needs to produce additional amount of common semi finished materials to facilitate production in terms of capacity utilization and meeting customer delivery dates. This additional amount is known as “postponement”. Initially, Production Department reviews the stock report for semi-finished materials in the warehouse. After that, Production Department identifies common semi finished materials with low stock level by comparing available stock with the stock level predefined in the material master. Production Department then creates the process order based on the production plan. Once the process order has been saved and released, goods movement is allowed for the process order. After all the materials are issued to the process order, Production Department initiates production. Upon completion, the actual usage of the resources for the process order is confirmed.

After production is completed, a goods receipt is done for the process order and goods are transferred to the warehouse.

5.4.8 5.4.9

5.5

Financial Accounting

Quality Polymer will adopt the following Financial Accounting business scenarios from NPM: •

BS400 G/L Account Master Record

•

BS401 Account Assignment Template

•

BS403 Bank Master Data

•

BS404 Treasury

•

BS405 Petty Cash Processing

•

BS406 Vendor Master for Creditors without PO

•

BS407 Vendor Invoice with Credit Term (Non-Trade Related) 27


5.6



•

BS408 Vendor Invoice with Cash Term (Non-Trade Related)

•

BS409 Credit Note/Debit Note from Creditor (Non-Trade Related)

•

BS410 Credit Note/Debit Note to Creditor (Non-Trade Related)

•

BS411 Creation Of Customer Master for Staff

•

BS421 Creation & Revision Of Customer Credit Account

•

BS413 Credit Note/Debit Note from Debtor (Non-Trade Related)

•

BS414 Credit Note/Debit Note to Debtor (Non-Trade Related)

•

BS419 Advance Payment From Customer

•

BS420 Advance Payment To Vendor

•

BS415 Staff Loan

•

BS416 Staff Advances

•

BS417 Month-End Processing

•

BS418 Year-End Processing

Controlling

Quality Polymer will adopt the following Controlling business scenarios from NPM: •

BS470 Cost Element Master Data

•

BS471 Cost Center Master Data

•

BS472 Cost Center Planning

•

BS474 Cost Center Distribution

•

BS485 Cost Center Planning - 2nd Half Year Revise Budget

•

BS475 Profit Center Master Data

•

BS476 Profit Center Planning

•

BS477 Internal Order for Vehicle Maintenance

•

BS478 Internal Order for Marketing & Promotion

•

BS480 Internal Order for Staff Expenses

•

BS481 Standard Cost Estimate for Existing Product

•

BS482 Standard Cost Simulation for New Product

•

BS483 Settlement of Process Order

•

BS484 Eventual Cost Calculation For Manufactured Material

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6 Interfaces and Enhancements 6.1.1 Interfaces Two interfaces created for Project Cheetah will be introduced to Quality Polymer: 1. Sales Document Approval Transaction 2. Gate Pass Enhancements 6.1.2 User Exits Numerous user exits were created during Project Cheetah. All these user exits will be reviewed to cater for the rollout of Quality Polymer.

7 Conversion Approach Conversion will be carried out to ensure that Quality Polymer will have all the relevant information when the system goes live. Preparation for conversion is required during the implementation because it is important to start the new system with clean and relevant data that is not obsolete. The approach used in data conversion will be as follows:

7.1

•

Define conversion strategy

•

Identify and clean data for conversion

•

Perform the actual conversion

Conversion strategy

Due to the low volume master data in Quality Polymer, with the exception of GL accounts and its open items, the user will manually enter all conversion objects into the Production System. Prior to the manual entry to the Production System, the users input the data into the Quality System to verify the data integrity and accuracy. This exercise also serves as a training and confidence building for the users to familiarize themselves with SAP R/3.

7.2

Conversion Data Preparation

Data to be converted is identified with object description and the total number of records is estimated. These data will be classified as master or transaction files depending on the type of data converted. (A summary of these conversion data objects is found in the Appendix). The sources of data must be cleaned to ensure that the correct information is later entered to SAP. This entails removal of duplicate records (like customer or vendor master records), data consolidation, providing new pieces of information required in the new system and ensuring that existing information is up-to-date. This responsibility rests solely on NPM team leaders and Quality Polymer end-users.

7.3

Actual Conversion

Conversion of “live” data to SAP will occur during the Final Preparation phase. In general, master data will be converted before transaction data. The latter is performed immediately after the period closing of the legacy system and for the new SAP system to run live at the start of the 29




period (month). One way of minimizing transaction data to be converted is to ensure that all open items are settled before the conversion process. Prior to go-live date, all entered data must be verified in the production system to ensure completeness and consistency.

8 Authorizations New Authorization Profiles will be setup for all Quality Polymer users. This authorization profiles will enable the users to have a control environment on their access level in terms of the different transaction codes and organization structure that each user can have access to. The Team Leaders will work closely with Quality Polymer management to determine the different level of access that each user can have. Quality Polymer will adopt the Authorization Policy that is in placed for NPM.

9 System Landscape 9.1

System Environment

Current NPM system landscape consists of three physical servers, each housing a single client as illustrated below •

Development Server – Client 140

•

Quality System Server – Client 300

•

Production Server – Client 300

For Quality Polymer rollout, all configurations will be set in the Development Server. An additional server has been setup for the role of testing by consultants and team leaders. This server will be a copy of the Production Server Client 300. Prototype will take place in the Additional Server while training and user acceptance test will be conducted in Quality System Server Client 300. The diagram below depicts the system landscape of existing NPM servers and the additional server for Quality Polymer rollout implementation.

30




Current NPM System Landscape

Development Server (Client 140) Additional Server For QP Rollout Playground Quality System Server (Client 300)

Production Server (Client 300) Transport Route

Figure 9.1.19: NPM System Landscape & Additional Server for Quality Polymer Rollout

9.2

Transport Strategies

The transport strategy for Quality Polymer Rollout has to be monitored manually. As depict in Figure 9.1.1., all configurations settings will still be done in Development Server Client 140. The consultants will manually transport it to the Quality Polymer Playground Server. At the end of every week, a consolidated list of change request from each module will be submitted to the Basis consultant to move the configuration to the Quality System Server Client 300. Prior to system go-live for Quality Polymer, all the modules weekly change request will be transported to the Production Server Client 300.

10 Training Team Leader will conduct training for Quality Polymer Key Users throughout the life cycle of the Rollout Implementation. The key users will be exposed to NPM live environment on their respective module. A training plan will be draft out to ensure that different key users will have allocated slot to sit with NPM users for some SAP hands-on transaction. This approach aims to empower key users to take NPM team leader will review the training materials prepared during Project Cheetah. Team leaders will train end-users during the Realization Phase using training material that has been fine-tuned.

31




11 Testing Approach Testing covers the activities related to both scenarios and transactional testing on the system to ensure that the configuration settings are right. The testing approach will include test planning, conducting tests and documentation of the testing performed. User acceptance tests (UAT) will be conducted in Realization stage. Upon successful testing of the system, users are to sign-off that they are willing to accept the new set of configuration. Quality Polymer key users will be responsible to perform the entire testing with the guidance of ea consultants and NPM team leaders. Together with NPM team leaders, ea consultants will also plan for the UAT. During the UAT, all test results will be recorded and verified by the testers and team leaders. Testing will cover identification of the following:

11.1

•

Test data

•

Users for UAT

Test data

Normally there are two sets of important data to be tested, namely; •

•

Core Business Scenarios data - A number of Nippon Paint core scenarios per company will be identified for testing Core Business Process data – The core business processes not included in the business scenarios item 1 above will be tested.

In testing, a big consideration will be given to the integration between SAP modules. The detailed plan for UAT will be prepared during the Realization phase.

11.2

Testers (Users) for UAT

Users to perform the User Acceptance Test will be identified during the early part of the Realization phase. The selected users have the responsibility of testing the system, recording the results of these tests, confirming that the testing works and note the exceptions and finally signoff the system indicating acceptance of the system. Therefore the testing must be completed and signed off by the testers.

32

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