Hatch Global Project Accounting and

Financial Management System

Andries J Jacobs M.Com., PhD..

Agenda

Need for ERP SystemBusiness RequirementsWhy Implementing SAPProject StrategyChange ManagementConclusion

Supplier of innovative technical and strategic services including:

Consulting Information Technology Engineering Project Management and Construction

to the Mining, Metallurgical, Manufacturing & Infrastructure industries.

Competitive Environment

Multi-site Environment

9 Offices

3 Offices

5 Offices

11 Offices

10 Offices

5 Offices

5 Offices

Projects in 80 Countries

1 Office

3500 People

Employee Owned

44 Offices7 Continents

Manage $ 11 Billion Worth of Projects

Inter-company Environment

2 Companies

Hatch

2 CompaniesHatch

3 Companies

Hatch

Hatch

Global Growth

Growth Through Acquisitions

3 Companies

Employee Growth

Year

Peop

le

0

1000

2000

3000

4000

1992 1995 1998 2001 2003

Business Structure

Consultants

Iron & SteelIron & Steel

SystemsSystemsLight MetalsLight Metals

Project Delivery Group

Project Delivery Group

Joint VenturesJoint VenturesShared ServicesShared Services

Non-FerrousNon-Ferrous ConsultingConsulting

Industrial Minerals

Industrial Minerals

Mining & MineralProcessing

Mining & MineralProcessing

Non-FerrousNon-Ferrous ConsultingConsulting

Agenda

Need for ERP SystemBusiness RequirementsWhy Implementing SAPProject StrategyChange ManagementConclusion

Business System Requirements

Global System

Integrated business functions

Phase out existing regional systems

Standardized business processes

Adopt “best practice”

Data exchange

Required Business Improvements

Single point of data entry

Data processing time

Timesheet management

Reconciliation of timesheets

Effort to reconcile payroll

Invoice processing time

Inter-company accounting

Month-end and year-end processes

Error correction time

System maintenance and support

Reporting

Agenda

Need for ERP SystemBusiness RequirementsWhy Implementing SAPProject StrategyChange ManagementConclusion

898

922

858864

927

870

918

850860870880890900910920930940

0 1 2 3 4 5 6 7

Lawson

mySAP

Sun/Sharp Owl

Deltek

JDE

Oracle

Sun BasedSolution

Competitive Analysis: Quantitative Approach

Total One-Time Cost (CDN $ M)

Fu

ncti

on

al Fit

Agenda

Need for ERP SystemBusiness RequirementsWhy Implementing SAPProject StrategyChange ManagementConclusion

Big Bang Implementation

Importance Risk Old New Quick decision making High Support and resource availability High Executive / Stakeholder support High Minimal customization High Strong scope management High Effective communication High Tight management of deliverables High Methodology Medium Navigator team High Ground rules for team interaction Medium Vendor relationship management Medium Effective change management High Project Management High

User Representation

Functional Teams: Projects Finance Billing HR

Project Navigator

Key Users:PS/FI/HR/SD Key Users:

PS/FI/HR/SD

Key Users:PS/FI/HR/SD

Project C-001ClientClient

Project C-002

Client Project ViewEngineering Services

ContractorsContractors

VendorsVendorsConsultantsConsultants

Project H-1001Project H-1001

Project H-1002Project H-1002

External ServicesExternal Services

Scope – Project Process

Scope - Business Process

Close OutExecutionProposalRequest For Proposal

Close OutReviewPricingExecutionPlanningEvaluation

Project Close Out

Manage Scope

Manage Resources

Manage Costs

Manage TimeActivate Project

Enterprise Management

Scope – SAP Functional Modules

Financial Management Financial Accounting General Ledger Accounts Receivable Accounts Payable Financial Controlling

Sales & Distribution Org Structures Master Data Sales Billing

Materials Management Org Structures Purchasing

Human Resources HR - Components Time Management Benefit Administration Salary Administration

Projects Systems Project Definition Work Breakdown

Structure Elements Networks Activities

Total Integration

Project Timeline

Preparation Phase 9 days 7/19/01

Business Blueprint Phase 31 days 8/1/01

Realization Phase 79 days 9/4/01

Final Preparation Phase 39 days 1/7/02

Go-live 1 day 3/4/02

Post Impl. Support 20 days 3/4/02

Operations 3/29/02

DurationDuration Start DateStart Date

Physical Architecture

Application Servers

ITS Server for Intranet

ITS Server for Workplace

Workplace Server

Single Centralized Database

ITS Server for InternetFir

ew

all

Development Environment

010

Configuration Master

010

Configuration Master

020

Sand Box

020

Sand Box

000

SAP Reference

000

SAP Reference

010

Acceptance Testing

010

Acceptance Testing

020

Training

020

Training

000

SAP Reference

000

SAP Reference

010

Production

010

Production

000

SAP Reference

000

SAP Reference

QualityQualityDevelopmentDevelopment ProductionProduction

Agenda

Need for ERP SystemBusiness RequirementsWhy Implementing SAPProject StrategyChange ManagementConclusion

Training Methods

Functionality Complexity

Change Required

Intensity of Training

#’s To be Trained

# of Offices

Session Duration

Net Meeting

Tele-Conference&

2

End-User to Closest

Office

Trainer to End-Users

Site

OR3

iTutor Support Material

+1

Incre

ase

Familiarization Period

Why Practice in SAP Learn functionality Improve business

readiness

Focus End-user access End-user support Support documentation Site preparation Management support

toolset

Expectation Validate Master Data Practice entering time Test a complete cycle for

50 projects

Transition from Project to Operations

Project Life Cycle

Bu

s P

rocess

Revie

w

Con

fig

ura

tion

Data

Cle

an

-Up

Insta

ll.

&

Tra

inin

g

Go-L

ive &

S

up

port

System Operations Life Cycle

Dailey

Op

era

tion

s

Main

ten

an

ce

En

han

cem

en

ts

Up

gra

des

Support Infrastructure

System Operations Life Cycle

Dailey

Op

era

tion

s

Main

ten

an

ce

En

han

cem

en

ts

Up

gra

des

Business Users

SAP Technology Group Development TeamDevelopment TeamHelpdesk TeamHelpdesk Team

Coaches / Central ServicesCoaches / Central Services

Key UsersKey UsersEnd UsersEnd Users

Helpdesk

CLASIFY

CLASIFY

FunctionalFunctional

TechnicalTechnicalHelp-Desk

Solve Call

Help-Desk

Solve Call

Allo-cate

Call To

Dev. Team

Allo-cate

Call To

Dev. Team

UserUser IT Assist

TelephoneE-MailWeb-

Logging

IT Assist

TelephoneE-MailWeb-

Logging

CoachesCoaches

Assign To Task

List

Assign To Task

List

Roll-out New FunctionalityRoll-out New Functionality

Execute Development

Execute Development

Request For DevelopmentRequest For Development

Close Call

Date Stamp

E-Mail to User

Close Call

Date Stamp

E-Mail to User

Document ResolutionDocument Resolution

Update Knowledge

Base

Update Knowledge

Base

Agenda

Need for ERP SystemBusiness RequirementsWhy Implementing SAPProject StrategyChange ManagementConclusion

Key Performance Indicators

Time Missing timesheets Reconciling Timesheet

management Billing

Invoices to customers Draft invoices Improved cash flow

Projects Project overruns Utilization factor Resourcing of projects

Finance Inter-company accounts Month-end closing Data transfer between

systems Outstanding receivables

Lessons Learned

Client References In and outside industry

vertical Vendor

Accountability Control

Pre-implementation Business processes Change management

People Key-user profiles Lower level

involvement Team / user interaction

Learning material One standardized set Centralized development

Change requests

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Session Code: [2511]