F
4. Business Process of the IS
One of the objectives of this project is to
standardise/harmonise business processes and implement a commonly accepted
Group-wide ERP solution that supports the processes. Everyone has a role play
and each person work will affects their colleague work. The data and input that
are key in into the system may impact users who are the further down the
process chain so each of the users has to make sure that don’t end up with
“Garbage in” Garbage Out”. Earn Value Management help project manager to
measure the project performance .It’s is systematic project management process
used to find the variances in projects based on comparison of worked .performed
and work planned.
Figure
7: Value Chain Model in Business Process Cycle
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In project life cycle, there are four stages that a
company should to follow.
1.
Project Planning in this stage of ERP implementation, Project management includes finalizing the
detailed planning process and requirements (Technology, Hardware, Software,
Data, and Functionality ) which involves finalizing the project scope,
schedule, resource requirements, quality and risk concerns, plus any
organizational (e.g., centralization versus decentralization) issues. Project
Systems (PS) integrates with Finance & Controlling (FICO) and Materials
Management (MM) to allow the organization to plan, execute and account for
projects. The users are Project Operations Teams, Project Managers, Project
Cost Controllers, Finance Teams & Procurement Teams. This stage should
produce a request for proposal (RFP) to be sent to potential vendors. When
sending out the RFP (request for proposal), project planners should address an
evaluative scheme for comparing and ranking vendor responses such as a weighted
scoring approach. It would include factors each vendor's product are to be
evaluated against and their relative weights. Generally, scoring is completed
after all RFP (request for proposal) responses have been received.
Figure 8: The
Interface shows the example of Project System used for Project Planning
2 Project Execution in this stage vendor has
been selected and planning proceeds for swapping software previously used with
the new ERP package. The most important issue in this phase is to ensure
project activities are properly executed and controlled. During the execution
phase, the planned solution is implemented to solve the problem specified in the
project's requirements. The execution stage includes the actual implementation
of the design or work plan. At this stage the actual work for installation of
the pipeline will be performed at the field. The bulk of the project's work and
largest capital expenditure is realized in this stage.
3.
Project Closure the final stage of the ERP implementation project--
closeout/operation and maintenance-includes carrying out the usual bug fixes,
responding to enhancements that were not included in the original
implementation, and preparing a final report. The report should include a
critique of what went right and what went wrong over the life of the project so
that lessons learned may be documented and incorporated into future projects.
At this stage also shows the project completion and the process to generate
billing for back charge to the client (Example Petronas, Shell etc.)
Material Management (MM)
Materials Management
(MM) covers the Procurement, i.e. Procure-to-Pay, processes for materials/
services and Inventory Management processes. It usually used by the Material
Coordinator personnel in the project team, Procurement, Projects
&Warehouse. The Material Coordinator will place an order that requested by
the Field Engineer and it’s all are based on Technical Evaluation Criteria
(TEC) & Technical Specification that are using by the client. They play a
critical role during the entire project. They are responsible to design “To-Be”
processes and provide system requirements. Material coordinator will insert the
RO (Requisition Order) and the procurement will refer based on special coding
code for particular project in SAP ERP system once the RO (Requisition Order)
is not have any cost impact and approved by the Project Manager. They will
proceed and find the vendor/distributor to negotiate about the price and etc.
Once agreed as the distributor will send the material that order to the
warehouse based on the location that required. It is looking at standardising (where
possible) the procure-to-pay and Inventory Management processes across the
Group based on proven standard ERP delivered process.
The typical
procurement cycle for a service or material consists of the following phases:
1. Determination of
Requirements
Materials requirements
are identified either in the user departments or via materials planning and
control. (This can cover both MRP proper and the demand-based approach to
inventory control. The regular checking of stock levels of materials defined by
master records, use of the order-point method, and forecasting on the basis of
past usage are important aspects of the latter.) You can enter purchase
requisitions yourself, or they can be generated automatically by the materials
planning and control system.
2. Source
Determination
The Purchasing
component helps you identify potential sources of supply based on past orders
and existing longer-term purchase agreements. This speeds the process of
creating requests for quotation (RFQs), which can be sent to vendors
electronically via SAP EDI, if desired.
3. Vendor Selection
and Comparison of Quotations
The system is capable
of simulating pricing scenarios, allowing you to compare a number of different
quotations. Rejection letters can be sent automatically.
4. Purchase Order
Processing
The Purchasing system
adopts information from the requisition and the quotation to help you create a
purchase order. As with purchase requisitions, you can generate yourself or
have the system generate them automatically. Vendor scheduling agreements and
contracts (in the SAP System, types of longer-term purchase agreement) are also
supported.
5. Purchase Order
Follow-Up
The system checks the
reminder periods you have specified and - if necessary - automatically prints
reminders or expediters at the predefined intervals. It also provides you with
an up-to-date status of all purchase requisitions, quotations, and purchase
orders.
6. Goods Receiving and
Inventory Management
Goods receiving
personnel can confirm the receipt of goods simply by entering the Po number. By
specifying permissible tolerances, buyers can limit over- and under deliveries
of ordered goods.
7. Invoice
Verification
The system supports
the checking and matching of invoices. The accounts payable clerk is notified
of quantity and price variances because the system has access to PO and goods
receipt data. This speeds the process of auditing and clearing invoices for
payment.
Figure 9: The
Process flow from a Procurement TEAM
Figure 10: The Process flow from a Material Management
TEAM
Financial Controlling (FICO)
Refers to the Finance
(FI) & Controlling (CO) modules of the ERP. It is a core module in the ERP
where all financial processing transactions are captured. Finance (FI) is
primarily used for external reporting purposes and Controlling (CO) helps
provide operational information to Management i.e. Management Accounting. The
primary users are CFOs, Financial Controllers & Finance Teams. FICO is the
integration point for all modules in the ERP. The BPOs are the owners of
business processes and have the final authority on proposed processes. The FICO
will notify in the system about the purchasing of the material .The PIC will go
through all the supporting documents and contact the requestor for inquiry.
Vendor
master data is shared across company codes. Vendor master data has both General
and Company Codes. It has also been configured that a vendor can be linked with
a vendor number. Trading Partner id is required for intercompany vendors. Certain
fields such as Payment Term, Payment History and Account Statement are set as mandatory.
Senior Account Executives (from Corporate Treasury) will review the requirement
of creating new Bank Master Data. Once confirmed and verified, instruction is
given to SKPB IT Support to create the bank master data. Vendor master data
creation consists of General area and Company code area. Requesters need to
fill-up the necessary form and submit them to corporate accounts. Corporate
Accounts will verify the availability of the vendor in the system. Once it has
been confirmed that the vendor does not exist, Corporate Accounts will create
the vendor at General View and extend it to Company Code view. Once a purchase
order related goods receipt, service order, or service acceptance posting is
completed, an invoice is posted based on the goods receipt/service acceptance.
This procedure explains the steps to post cross company postings for Payments
on-behalf of the Payer’s company (marked).Intercompany payments on behalf of
another company are scenarios whereby a company pays for another company. This
process occurs frequently under the SKPB Group of Companies as some of the
companies do not have sufficient time to liquidate funds for the payment and
thus, requires another company (usually the parent company) to pay on behalf of
them. Below are the overall basic steps for payment on-behalf via cross company
posting. Requestor’s Account Executive will review the invoice and prepare
supporting document for approval. Once approved, their Senior Account Executive
will proceed with the request for payment on behalf via cross company
transaction. Payer’s company code will process the request. Once approved,
their Senior Account Executive will perform a cross company code posting via
Manual Outgoing Payment process.
service
acceptance posting is completed, an invoice is posted based on the goods
receipt/service acceptance. This procedure explains the steps to post cross
company postings for Payments on-behalf of the Payer’s company
(marked).Intercompany payments on behalf of another company are scenarios
whereby a company pays for another company. This process occurs frequently
under the SKPB Group of Companies as some of the companies do not have
sufficient time to liquidate funds for the payment and thus, requires another
company (usually the parent company) to pay on behalf of them. Below are the
overall basic steps for payment on-behalf via cross company posting.
Requestor’s Account Executive will review the invoice and prepare supporting
document for approval. Once approved, their Senior Account Executive will
proceed with the request for payment on behalf via cross company transaction. Payer’s
company code will process the request. Once approved, their Senior Account
Executive will perform a cross company code posting via Manual Outgoing Payment
process
