Is Pat Sap Case Study

Steel SymphonySteel Symphony!!All about

And more …

The Story behind ISPAT’s Successful SAP Implementation!

Contents

What is Steel Symphony?

How was it accomplished ?

Functionality Implemented

Training (Strategy & Statistics)

User Satisfaction Survey (Samples)

Help Desk (Strategy & Statistics)

Benefits (After Steel Symphony)

The Road Ahead

1. What is Steel Symphony ?

Project Vision

“Leverage the SAP Enterprise System across all functional & executive areas of ISPAT Group”

Project Mission

“The future SAP R/3 system shall become the backbone of initiatives in SCM, CRM, HR, ESS, BIW etc. across ISPAT Group ”

Guiding Statements

IT Systems – Status Before Steel Symphony

Before Steel Symphony

Our Goal

To bring all the functional areas into SAP R/3 SystemTo have a single system which can serve all reporting requirements of ISPATTo enable current and future Management Initiatives

Target

ISPAT - As Owners of the SystemCoconut – As Implementation PartnersE & Y – As Quality Assurance Partners

Participants

Geographical SpreadReporting RequirementsInfrastructure RequirementsOther Management Initiatives

Considerations

Legal EntitiesIspat Industries Limited Ispat Metallic LimitedIspat Energy Limited

Geographical Spread

DolviKalmeshwarAll depots / Consignment Agents (approximately 23 in number)Service CentersRaw Material Storage Locations (like Visakhapatnam, Paradeep etc.)

Scope of the Project

Targetted Functional Coverage

TIMELINES

Project Kick Off Project Kick Off

31st Aug Project PreparationProject Preparation

26th Sep

System AcceptanceSystem Acceptance12th April

User TrainingUser Training25th Apr

2002

CPI

All Dates are Sign-Off Dates

Achieved

18th Mar

BBP RealizationBBP Realization31st Dec

As-Is To-Be Gaps

1st Apr

Go-Live PreparationGo-Live Preparation

2nd MayPI SupportPI Support

Go-LiveGo-Live2nd Apr

M I L E S T O N E S

2003

Planned at the Start of the Project

Project Implementation Time Lines

To be Achieved

2. How was it accomplished?

Project Organization

• Coconut –16(35)• ISPAT – 41Coconut

ISPAT

Key User and Consultant Roles & InteractionISPAT Key Users Coconut App. Cons.

Guide Key Users in As-Is Doc.Prepare & Implement Testing StrategyPrepare & Implement Training StrategyPrepare and implement Go-live strategy

Guide Key Users in As-Is Doc.Prepare & Implement Testing StrategyPrepare & Implement Training StrategyPrepare and implement Go-live strategy

To-Be Business Processes & Gaps To-Be Business

Processes & Gaps

As – Is Business Processes

As – Is Business Processes

Collecting Work Profiles & Master DataGet end user buy-inEnd User DocumentationTraining End UsersGo-Live Support

Collecting Work Profiles & Master DataGet end user buy-inEnd User DocumentationTraining End UsersGo-Live Support

Business Requirements

Business Requirements

Reporting Requirements

Reporting Requirements

• As-Is and Business requirement Doc.

• Review of To-be • Business Processes

& Gaps• Review Realization Realization

on System Realization on System

Key User Training Key User Training

• As-Is review• To-Be process &

Gaps Documentation• Realization on the

System• Key User Training

System Testing & Acceptance

System Testing & Acceptance

Go-Live Go-Live

Owner

Inputs Received from Other Initiatives like ...

Performance Management SystemBy Hewitt Associates

Performance Management SystemBy Hewitt Associates

SCM

FI CO AMPP PM QM PS MM SDTR

SAP

CRM

TPM

PMS

Six Sigma

HR CIN

Supply Chain StrategyBy Price Water Coopers

Supply Chain StrategyBy Price Water Coopers

Customer Relations By National Institute of Sales

Customer Relations By National Institute of Sales

Six Sigma Process ImplementationBy WIPRO

Six Sigma Process ImplementationBy WIPRO

Total Productivity ManagementBy Freelance Consultant

Total Productivity ManagementBy Freelance Consultant

SAP ImplementationBy Coconut

SAP ImplementationBy Coconut

Responsibilities of Coconut – Implementation Partner

ManagerialProject Charter PreparationProject Management along with other partnersInfrastructure Planning and Procurement RecommendationsChange ManagementIssue Resolution & Escalation

TechnicalSynchronization of Development and Production environmentInstallation of SAP R/3 4.6C/ CIN4.0A/ IS-MP BBP Realization on the SAP R/3 systemConnecting business partners with SAP R/3 systemGo-Live Post Implementation SupportEnhancements, Interfaces, Reports, Layouts Development

ManagerialProject Charter PreparationProject Management along with other partnersInfrastructure Planning and Procurement RecommendationsChange ManagementIssue Resolution & Escalation

TechnicalSynchronization of Development and Production environmentInstallation of SAP R/3 4.6C/ CIN4.0A/ IS-MP BBP Realization on the SAP R/3 systemConnecting business partners with SAP R/3 systemGo-Live Post Implementation SupportEnhancements, Interfaces, Reports, Layouts Development

Responsibilities of Coconut – Implementation Partner

TrainingTraining PlanProject Team Training (in various Documentation Standards etc.)User Training using “Train the Trainer” concept

DocumentationConfiguration Requirement DocumentBusiness Blueprint Documentation (As-Is, To-be, Gap Analysis)User Manual (along with Key Users)Other Project documents mentioned in Project charter

Project ReportingProject Status Reports – Weekly, Fortnight, Issue reporting (to Steering Committee)Delay-Reports

TrainingTraining PlanProject Team Training (in various Documentation Standards etc.)User Training using “Train the Trainer” concept

DocumentationConfiguration Requirement DocumentBusiness Blueprint Documentation (As-Is, To-be, Gap Analysis)User Manual (along with Key Users)Other Project documents mentioned in Project charter

Project ReportingProject Status Reports – Weekly, Fortnight, Issue reporting (to Steering Committee)Delay-Reports

Project Charter - Highlights

Formation of Project Organization

Finalized Project Plan

Finalized Project Schedules

Defined Project Management Standards

Finalization of Project Scope

Finalization of Testing Strategy

Finalization of Training Strategy

Project Charter

Project Organization – Roles & Responsibilities

Steering Committee

Committing the required resources to the project Monitoring the progress and the organizational impacts of the project Empowering the core project team to make decisions Resolve escalated issues Generating timely decisions & sign-offsSupporting the project management team to accomplish the project goals Resolve issues regarding achievement of milestonesEnsure that Divisional heads sign-off Business Blue Print Documentation.Provide guidance in the Monthly Steering Committee Meetings

Time commitment: 3 hours per month+ as and when necessary


Project Sponsor

Is the ultimate owner of the project and has decision-making power in the fulfillment of the primary responsibilities, as outlined for the steering committee members Maintains the final authority to set priorities, approve scope, and settle company-wide issues Promotes the SAP project throughout the organization. Where conflicts exist in the completion of these responsibilities, the sponsor is empowered to negotiate and promote a solution. Has final budget authority

Time commitment: Minimum 8 hours per week


Project Manager

Ensure contractual obligations are met with all project vendors Ensure good communication between teams within the project Ensure timely issue resolution or appropriate escalation of issues Ensure timely availability of all resources required for the project as per the project plan (like key users, hardware, software, network required for the project)Report project status to the Steering Committee on a regular basisApprove significant changes to project plansReview and signoff on project plans and deliverables

Time commitment: Full Time


Key User

Prepare As-Is DocumentPrepare Business RequirementsReview and Sign-Off To-Be Process & GapsValidate the R/3 design Validate the Configuration of the system Test and document the R/3 implementation Manage the validation of R/3 System unit testing and integration testingWorking with the project team to identify mission critical business process scenarios Identifying transactions and data to be tested; managing expected results versus actual results, and reasons for differences Assigning follow up tasks to reconfigure and retest Train End Users

Time commitment: Full Time

Timelines

Project Kick Off Project Kick Off

31st Aug Project PreparationProject Preparation

26th Sep

System AcceptanceSystem Acceptance12th April

User TrainingUser Training25th Apr

CPI

All Dates are Sign-Off Dates

Achieved

To be Achieved

18th Mar

BBP RealizationBBP Realization31st Dec

As-Is To-Be Gaps

1st May

Go-Live PreparationGo-Live Preparation

2nd Jun

PI SupportPI Support

Go-LiveGo-Live2nd May

M i l e s t o n e s

Project Implementation Time Lines (Revised after VAT)

2002

2003

Actual Go Live against target time of 11 PM on 2nd May ‘03

Actual Go Live Time# Module

Dolvi Kalmeshwar1 Financial Accounting 5:00 PM on 3rd May 5:00 PM on 3rd May

2 Asset Management 1:00 PM 12th May 1:00 PM on 12th May

3 Treasury 5:00 PM on 3rd May 5:00 PM on 3rd May

4 Controlling Partial Partial

5 Material Management 9:00 AM on 7th May 2:00 AM on 6th May

6 Sales & Distribution 9:25 PM on 2nd May 6:00 AM on 3rd May

7 Production Planning 07:00 AM on 13th May 06:00 AM on 9th May

8 Quality Management 07:00 AM on 13th May 06:00 AM on 9th May

9 Project system 11:00 AM on 3rd May 11:00 AM on 3rd May

10 Human Resources 2:00 PM on 3rd May 2:00 PM on 3rd May

11 Country India Version 9:25 PM on 2nd May 6:00 AM on 3rd May

12 Plant maintenance 11:00 PM on 2nd May 11:00 PM on 2nd May

Implementation of Best Business Practices Post Go-Live(Examples)

Elimination of Hard Copy Document• No internal circulation of hard copies of PO, GR, PA, RGP/NGP• All transactions to be done on the system, at the point of transaction and the time of transaction• A pre-requisite to make this success is ‘documents should be prepared free of errors’

Simplifying Cash Purchase Process

Practice on 3.1H system• All Functional Heads/ Divisional Heads have been authorized to make cash purchase up to a limit of Rs.5000/-.• Gate Entry of the material purchased is done by Security.• Then stores verifies the purchases.• Then a cash voucher is created by Accounts in the system and then payment is made

Practice on 4.6C system• The Divisional / department Heads shall advise their subordinates to get the cash/purchase bill/receipt entered in

the SAP R/3 system at main gate.• Each Cash Purchase Bill/receipt shall be authorized by concerned Functional/Divisional Head and forward the

same to the Accounts Department for payment.

3. Functionality implemented

# Business Scenario - Accounts ReceivableRevenue Determination

Direct Factory Sales

Export Sales

Depot Sales

Sales from Service Center

Inter Unit Sale

Home / Captive Consumption

Sales Return

Accrual of following Liabilities for Sale & Distribution Expenses

Rebate & Discount

Agency Commission

Dealers Commission

Outward Freight Expenditure

Export Related Expenses

Customer Receipt

Down Payment

Incoming Payment

Security Deposit / Earnest Money Deposit

Bill of Exchange Receivable with link to the Letter of Credit Component

3

2

1

FIFunctionality Implemented

# Business Scenario - Accounts Receivable4 Interest Calculation on Customer Outstanding

5 Customer Credit Management

6 Customer Balance & Debtors Ageing Reports


# Business Scenario - Accounts PayableMaterial Accounting at Plants and Material Revaluation

Liability generation

Consumption Booking

Service Entry Accounting

Project Contractors / Equipment Suppliers Accounting

Material Issued on Loan

Material Issued to Contractors

Plant to Plant material Transfer

Chargeable Issue to Contractors

Port Material Accounting

Stock updating

Physical verification

Generation of Fines

Stock Transfer

Invoice Verification Elements

Material Cost

Planned & Unplanned Delivery Cost

Subsequent Debits / Credits

Cenvat Entry for Raw Materials & Capital Goods

Extended Withholding Tax

3

2

1


# Business Scenario - Accounts PayableTDS Processing

At the time of Invoice Verification

At the time of Down Payment

Certificate Printing

Return Filing

Payment Process

Automatic Payment Proposal

Outgoing Payment

Down Payment

Bill of Exchange Payable with link to Letter of Credit Component

Cash Payment

6 Accounting in Foreign Currency

Month End Closing Operations

Liability Statement

Netting Statement

Grossing Up of Balances

GR/ IR Clearing

Vendor Account Clearing

7

5

4


# Business Scenario - General LedgerMonth End and Year End Closing Operations

Business Area Adjustments

Valuation of Exchange Fluctuation

Vendors and Customers - Regrouping of Balances

Carry Forward of Balances

Internal Transaction

Inter unit Transaction

Intra office Transaction

Cross Company Transaction

House Bank

Bulk cheques

Bank Reconciliation

Cash Journal Transaction

Assets & CWIP Accounting 4

Pre-operative Expenses Accounting

3

2

1


# Business Scenario - Materials Management A Purchasing System

1 Purchase Requisition, Quotations. Purchase Order for Stock transfer, Subcontracting and Services

2 Contracts & Scheduling agreements.

3 Release Strategy for Purchase Documents for hierarchical E-Approval

4 Rebate Agreement.

B Inventory Management System

1 Returnable Gate Pass and Non Returnable Gate Pass.

2 Creation of Gate Entry for normal Purchase, Cash Purchase and Emergency Materials.

3 Capturing weighment of weight on weigh bridge for incoming materials.

4 Goods receipts, Goods issue, Reservations and Transfer posting.

5 Sale of Scrap / Disposable materials using SD functionality.

6 Batch Managed Inventory

C Material Requirements Planning

D Physical Inventory

E Invoice Verification for Vendor Payment

1 Parking of Invoice, Block Payment for various reasons (when deviation occurs), etc

2 Evaluated Receipt Settlement, Consignment and Pipeline Settlement

3 Invoicing Plan

MMFunctionality Implemented

# Business Scenarios – Production Planning1 Creation of Plans – Monthly, Weekly and Daily.

2 Creation of Process Orders – Monthly and Daily basis as per business plan.

3 Make to Order (MTO) and Make to Stock (MTS) production and on-line inventory details.

4 Integrated Raw material planning, material availability check and material quality recording.

5 On-line Daily Process data recording including Log-Sheets, in-house production transfer or consumption details.

6 Sales Order-Costing, Process Order / Heat wise Costing. Reason wise NCO generation Recording

7 On-line stock of Saleable / Non-saleable, Finished / Semi-Finished, By-products & Scrap in the customizable formats.

8 Co-Products and By-Products generation and Recording.

9 Capacity Planning & Scheduling

10 Work Roll and Backup Roll Management and related reports.

11 Simplified Transfer posting – e.g. Plant to Plant, Order to NCO, NCO to Order, etc.

12 NCO Stocks allocation to Orders – Automatic Coil Determination / Allocation by Marketing

13 Sequence Planner

14 Plant Control Reports

PPFunctionality Implemented

QM

# Business Scenarios – Quality Management

1QM in Procurement, QM in Process and QM during Dispatches are the major QM activities. QM available in all the areas, viz. Sponge Iron, Lime, Oxygen, Hot Metal, Pig Iron, HR, CR, GC, CC and all WIP. This functionality is extended to by-products where ever applicable.

2 Master Data of Quality Assurance Division is available.

3 Result Recording & Usage Decision of Raw Materials of HSM, SIP & BF maintained.

4 Chemical Analysis & Mechanical properties Entry data available as per requirement.

5 Automatic transfer of Heat Chemistry & Mechanical/Metallurgical details to the respective coils of the heat thereby reducing manual job duplication.

6 Taloja QM requirements are configured.

7 Customer Enquiries and Complaints handling system.

8 New TDC Creation & automatic requirement transfers from SD to QM.


PM

# Business Scenario – Plant Maintenance1 Online capturing of equipment history.

2 Equipment/ functional location wise maintenance cost booking.

3 Equipment/ functional location wise service cost booking.

4 Scheduling of maintenance plans through system.

5 On line Preventive maintenance.


CIN

# Business Scenario – Country India Version1 Generation of excise invoices – for CENVAT

2 Rejection returns to vendor through system

3 Sales invoices

4 Sales return

5 Depot procedure for Delhi and Calcutta

6 VAT Scenario

7 Imports - Bill of Entry through system

8 Exports – Complete Automated Documentation

9 Sales Tax Registers

10 All Export and Customs Benefits

11 Sale of scrap / disposable materials using SD functionality inclusive of all statutory compliance.


TR

# Business Scenario - Treasury1 Bank Reconciliation

2 Cheque Deposit

3 LC Established by Customer

4 LC Established by ISPAT

5 Clean Bills Monitoring

6 Bank Guarantee

7 Limits Monitoring (LC, BG, Discounting & Others -CC)

8 Bank Position

9 Cash Flow

10 Liquidity Forecast


PS

# Business Scenario – Project Systems1 CAPITAL / MODIFICATION Project

2 Project budgeting with “error” block for budget overflow

3 Comprehensive network for entire project with different user departments

4 Payment details against purchase orders.

5 Effect of delay of any activity on final date

6 GANTT Chart & Critical Path of the network with project progress

7 Settlement of WBS Elements to “Asset Under Construction” thus transferring the Project cost to “AUC”

9 Identification of purchase orders with respect to Projects

10 Budget supplement, transfer, return in the project

11 Different type of relationships with lead/lag time


# Business Scenario – Assets Management1 Maintenance of Master Data like Assets

2 Asset Acquisition / Addition / Deletion etc.

3 Creation of assets links with assets class.

4 Depreciation as per Company’s Act.

5 Depreciation as per Income Tax Act.

6 Transfer of assets.

7 Blocking of assets.

8 Retirement of assets.

9 Revaluation of assets.

10 Asset Tracking against a Cost Center / Employee etc.

AMFunctionality Implemented

HR

# Business Scenario – Human Resources1 Organizational Management - Creation of Organization Units, Jobs, Positions, Maintaining vacancy

2 Recruitment – Process Applicant, Offer applicant contract, Prepare for Hiring

3 Integration between Recruitment - Personnel Administration – Organizational Management (Direct data transfer of applicant)

4 Personnel Administration – Hiring, Maintaining Basic pay, Confirmation, Transfer, Promotion, Change in pay, Separation, Resignation

5 Time Management – Leave balances, Booking of attendance, Leave, creation of Master shift schedule

6 Training & Event Management – Creation of Business Event group, Event type, Booking, Pre booking of attendance, Creation of External Instructors profile and company details

7 General Services – Maintaining service order and service entries

8 Correspondence – Generation of letters pertaining to applicant and employees such Interview call letter, Confirmation Letter, Relieving Letter, Appointment letter etc.


4. Training – Strategy & Statistics

5. User Satisfaction Survey

User rating# Business Process

Excellent Very Good Good Average Bad Worse

1 Normal Factory Sale of HR, Sponge Iron & Pig Iron Products

2 Complete Export Sales Cycle

3 Sales under CT2 Certificate

4 Inter company and captive consumption sales Cycle

5 Sale of Lime , Coke Products & raw material

6 Sale under Letter of Credit

7 Customer Complaints Tracking

8 Sales Visit plans , Follow up and Recording

9 Credit Management

10 Sale of MTS & Narrow Slit

11 Sales Returns

User Satisfaction Survey - Configuration

Sample – For Sales ‘n’ Distribution - DOLVI

User Satisfaction Survey - Configuration

User rating# Reports

Excellent Very Good Good Average Bad Worse

1 Sales Order Balance

2 SO Balance from

3 Work Order Balance

4 Scheduling Agreement Status

5 Billing Details

6 Dispatch Details (Bill Wise)

7 Dispatch Details (Mat Doc Wise)

8 Transporter's Performance

9 Customer Stock & Sales & Collection

10 Condition Types

11 Dispatch Plan Delivery Due List

12 Delivery Performance

13 Visit Compliance Report

14 Customer Complaint Status Summary

… …………………..

…. …………………..

Sample – For Sales ‘n’ Distribution - DOLVI

6. Help Desk

Helpdesk - Post Implementation Strategy

Central Help Desk Features

Monitored and Coordinated by ISPAT IT Personnel at DolviIssue Tracker - A tool developed on Lotus Notes, used by the Project Team to track and resolve open issuesFirst Level Issue Resolution by ISPAT Key Users for each moduleEscalation to Coconut SAP On-Site SAP Team at Dolvi, Casablanca and KalmeshwarFirst Six Months Support – Full Project Team On siteNext 6 months:

On-Site Support – Abap/4, PP/QM and SD TeamOn-Call Support – Other Modules

Optimization of Several Functions done and under process during PI Support

Helpdesk - Post Implementation Strategy

Dolvi + Casablanca Kalmeshwar Total

Issues Reported

Issues Resolved

Issues Reported

Issues Resolved

Issues Reported

Issues Resolved

Basis 17 15 5 4 22 19

CIN 18 10 4 3 22 13

FI 25 22 10 3 35 25

Hardware + Software 127 126 145 139 272 265

HR 2 2 0 0 2 2

MM 121 119 8 5 129 124

PM 23 20 3 0 26 20

PP 60 43 40 38 100 81

PS 1 1 0 0 1 1

QM 9 8 9 9 18 17

SD 33 32 52 50 85 82

TR 2 2 0 0 2 2

Total 438 400 276 251 714 651

Module

Issue Resolution – First Month after Go-Live

Helpdesk - Statistics

Dolvi Kalmeshwar TotalReported Resolved Pending Reported Resolved Pending Reported Resolved Pending

May 299 299 0 128 126 2 427 425 2

June 135 133 2 130 125 5 265 258 7

July 13 12 1 87 87 100 99 1

August 38 36 2 28 28 66 64 2

September 9 3 6 29 27 2 38 30 8Total 494 483 11 402 393 9 896 876 20

Period

Five Months – From May ’03 to September ‘03

7. Benefits

After Steel Symphony

FMSPB (Payroll)System

SAP 4.6C/ CIN 4.0A / SAP MP

IT Systems – Status After the Project

# Additional Features Business Impact

1Single Company Code (1000) for Ispat Industries Limited at Dolvi & Kalmeshwar Locations

Standardization & Consolidated of Dolvi & Kalmeshwar Accounts.

2

Separate Number Range & Clear Identification of Vendors & Customers Codes, based on nature of Supplies / Services

One to One linkage with reconciliation accounts and better presentation in MIS

To facilitate the automatic posting through integration with various modules 3 Complete restructuring of Chart of Accounts

Clear Identification of Account Groups

Major Business Activities are covered in one system 4 Online Accounting of Kolkata Office

Transactions Elimination of Duplicate Accounting

Complete integration & generation of Automatic posting transactions for :

Direct Factory Sales – Domestic & Export

Depot Sales

Sales from Service Center

Inter Unit Sale

Home / Captive Consumption

Sales Return

Generation of liabilities for selling & distribution related expenses at the time of sales invoicing

Capturing of Vendor Code in Freight Liability

5 Integration of SD with FI

FIKey Benefits from Financial Accounting

# Additional Features Business ImpactAutomatic posting of entries in FI at the time of :

Delivery Cost GR auto clearing

Goods Receipt , Issue and Stock Transfer

Business Area capture in CENVAT Liability on Invoice Verification

MM Stock Reconciliation with FI Ledgers

Letter of Credit Management Component 7 Integration of TR with FI

Automated Bank Reconciliation Statement

Automatic posting of Excise related Transaction: 8 Integration of CIN with FI

PLA & CENVAT, CENVAT on HOLD

Actual online booking of major raw materials

Auto creation of Finished Goods Stock

Valuation of WIP & FG at MAP, based on COP thru production order confirmation in PP & actualization of Cost

Input / Output Standardization and Control

Proper Planning & Control on Inventory of Raw Materials as per JIT

Capturing of Equipment Maintenance History Records & Service Entry thru Maintenance Order 10 Integration of PM with FIBooking of Maintenance Cost thru Service Entry

9 Integration of PP with FI

6 Integration of MM with FI


# Additional Features Business ImpactCapturing CWIP & Project Cost thru WBS element

11 Integration of PS with FI Project Cost Monitoring and Budgeting

Automatic Depreciation Calculation & Entries posting

Maintenance of detailed Assets Register

Accounting of Assets acquisition and its discarding thru system

Cost Center Wise details of Overheads

Budget Versus Actual variance analysis

Tally of Accounts with Gain / Loss Report

Corporate Plan Preparing and Monitoring

Automatic calculation of TDS

Payment of TDS with Clearing

Challan Updating, TDS Certificate and Filing of Return

Income Tax Range wise MIS Report

Auto Control of Exemption Certificates of concessional TDS rates thru vendor master

Cash Journal function with system check on Negative Balance

Daily, Weekly, Monthly Status of Cash Transaction with facility to view Total Cash Receipts and Payments

Record Maintenance of Cheques in Hand

16 One Time Vendor Time Saving for small value purchases and job work payments

17 Line Item Display with ALV Viewing / Printing of Accounts Line Items with facility to add / remove fields

15 Cash Journal

14 Extended Withholding Tax (TDS)

13 Integration of CO with FI

12 Integration of AM with FI


# Key Features Impact on ISPAT Business

1 Enjoy transaction Features in 4.6 C (MIGO,MIRO,PO etc) All material transactions are done in single screen and thus time saving

2 ALV in reporting Every one can access data and prepare the report themselves.

3 Hold and Check features In hold feature documents can be kept saved even if they are incomplete and in Check feature we can know the reasons for incompleteness of the document.

4Screen can be customized by the user as per his requirement i.e. personnel setting in desktop is allowed in SAP 4.6 c

Time saving and user friendly screen

5 SAP 4.6 c is compatible to handle web enabled transactions Conventional process of working in excel and word is being reduced

6

Field for identifying material based on Strategic, bottleneck, leverage and routine etc provided in line with suggestions with SCM initiative

Analysis of material based on consumption can be done .

7 Various components developed like LC request, gate entry, RGP/NRGP etc.

All documents can be traced from a single system and hence transparency and better analysis can be done.

MMKey Benefits from Materials Management

PP

# Key Features Business Impact

1 On-line data availability for decision making and controlling.

Presently multiple departments are maintaining Heat wise / Shift wise Consumption data. After Go-Live, data will be available centrally, thereby reducing the work duplication.

2 Correct and on-line Product costing and valuation analysis.

Existing practice of analyzing the process data and leaving room for manipulation can be minimized.

3On-line Inventory Monitoring is possible at all Plants, Depots and service centers for better control.

On-line business related data will provide better opportunities in international market. On-line trading, auction, sale, purchase, stock and inventory control. This will create a better edge for ISPAT in this highly competitive environment.

4

To record and monitor process data on shift / heat basis will provide sufficient guideline for enhancing benchmark by producing improved quality.

Process Log-Sheets shall be maintained in SAP. Present trend of manual Log-Sheets will be discontinued and the data will be available centrally.

5

Standard SAP PP Transactions are time consuming and Process Staff may not have sufficient time to maintain the online data in the system. To cater to this requirement, a component has been developed which is simplified up-to the extent possible.

The Process related data can be maintained through user friendly screens. Data entry time has reduced drastically, thereby ensuring the system acceptance.

Key Benefits from Production Planning

QM


1 Single Specification for HSM Raw Materials. Better control over the Quality of Raw Materials.

2Automatic transfer of Heat Chemistry & Mechanical/Metallurgical details to the respective coils of the heat.

Reduction of Man Hours for data entry of each coil. Resulting faster Quality Clearance.

3 All reports (HSM, SIP & BF) are generated through SAP.

Reduction of excel usage, Man hours for reports preparation, Better control of outputs, Minimize the usage of Lotus Notes.

4 Customer Enquiries & Customer Handling System.

Facilitates faster reply on Customer enquiry. Required details covered in Customer complaint Handling System.

5 TDC as a Master Document This is a single master document wherein all details are maintained against a grade. This has reduced the manual maintenance of TDC.

Key Benefits from Quality Management

PM

# Key Features Business Impact1 On Line Shift Log Viewing. Easy Communication & Transparency

2 On-line data availability for maintenance decision making and controlling.

Appropriate Maintenance strategies can be formulated without any delay leading to better availability of equipments for production.

3 Capturing Maintenance Cost Equipment Wise. Maintenance Cost History will be available at one place .

4 Capturing Maintenance History of Each Equipment.

Equipment Maintenance History will be available at one place and access will be open to all.

5 On line Preventive maintenance scheduling & Job History Automatic scheduler

6 Person wise aggregation of maintenance activities. Enhanced way of work distribution and performance review.

Functionality ImplementedKey Benefits from Plant Maintenance

CIN


1All Statutory Compliances relating to Excise documentation have been incorporated in the system

Generation and printing of all Excise Documents through the system minimizing manual efforts and thereby reducing errors

2 Export – Import documentation Generation and printing of all Export Documents through the system minimizing manual efforts and thereby reducing errors.

3 Enjoy transaction Features in 4.0 Release (J1IEX) All material transactions are done in single screen and thus time is saved

4 Tight Integration As all the modules are tightly integrated, lot of job duplication is avoided resulting in saving time and efforts.

5 ALV in reporting Easy way to create and maintain report formats by end users.

6Screen can be customized by the user as per his requirement i.e. personal setting in desktop is allowed in SAP 4.6 C

Time saving and user friendly screen

7 New Configuration as per VAT requirements System is readily configured for new taxation policies.

Key Benefits from Country India Version

TR


1 Cash Flow Cash Flow which was prepared manually is now available online on a day to day basis in the required format

2 LC Management (Customer)

The whole cycle right from creation of LC, to BOE collection/ discounting & contingent liability reversal along with all required outputs & reports along with the integration of the same with the SD & FI modules will help ISPAT in getting accurate information online

3 LC Management (Vendor)The whole cycle right from LC request to creation of BOE to subsequent payment along with all required outputs & reports plus the integration of the same with the MM & FI module will help ISPAT in getting accurate information online

4 BG Tracking Details of all BG given to customers (performance) and to vendors will be available online along with the due dates and the bank through which the same will be given.

5 Limits monitoring All types of limits – LC, BG, Discounting & others (CC, etc.) are maintained for eachbank. The details of utilization and availability of these limits are available on line.

Key Benefits from Treasury

PS

# Key Features Business Impact1 Reports with ALV features Availability of status of the project online with different Variants

2 Critical path of the network Can be concentrated for effective execution of the project

3 Online service entry details Balance work of the external execution agency will be available online

4 Online budget & expenditure details Availability of details of the consumption of budget Project / WBS element wise

5 Reservation of various stocks Special project stock and stocks with contractors will be maintained against the project

Key Benefits from Project Systems


1 Direct capitalization through MM Module and AUC settlement through PS Module Due to integration with other modules accuracy has increased and lot of time is saved.

2 Schedule V Manual preparation time and efforts have been saved.

3 Income Tax Depreciation Manual preparation time and efforts have been saved.

4 Automatic Depreciation Run Due to incorporation of additional checks and customization manual depreciation computation has been discontinued thereby saving time and efforts.

5 Automatic Profit / Loss entry on sale / Discard of assets No need to track the Asset retirement manually.

AMKey Benefits from Assets Management

HR


1 Direct data transfer of applicant from Recruitment to Personnel Administration.

Elimination of filling up of MIS form by applicant and personal details by personnel department

2 On line generation of Appointment letter, Confirmation letter, Interview call letter etc.

Elimination of manual generation of letters. Duplicity of job and error during MIS will not be there.

3 Complete structure of position and employee can be viewed

Updating of Organization chart as when employee relieves or joined is carried out automatically.

4 Employee history can be viewed like job profile, salary details, training details etc.

This will help us how the events have been takes place in respect of an individual such as Hiring, promotion etc

5 Easy access to employee data across the company irrespective of location. Manual data creation and report generation will be minimal with maximum accuracy.

Key Benefits from Human Resources

# Functionality Benefit

1 Online processing of orders Orders booked in marketing are available immediately to production planning thereby saving time (sometimes weeks) and money

2 Control on unplanned production Material cannot be produced without proper documentation. In case it is done in emergency it is possible to trace

3 Systematic Flow Indirectly problem areas are being highlighted e.g. need to change weight at the time of dispatch etc.

4Online availability of information at Kalmeshwar, Dolvi, Casablanca, Delhi and Kolkata

No need to send information from plant (dispatch report/stocks) to Marketing office and vice versa (work orders). E.g. HR Skelp sold from Kalmeshwar, under instruction from Dolvi can be better monitored

5 Depot stock availability Even though only two depots are online, coil/packet wise stocks of all depots are available in system

6 Online MTS Material allocation while creating Scheduling Agreement Better Stock Monitoring and enabling Faster Dispatch of Material.

7 LC Tracking Better control of outstanding / Overdue of Customers. Control of Dispatches to the extent of LC Value, information on BOE made against LC.

8 Scrap Sales Cycle Online availability of scrap stocks leading to transparency in operations

9 Visit Plan Compliance Sales activities of marketing personnel can be monitored

10 Auto pricing in Scheduling Agreements Reduction in Pricing Errors.

11 Online and Flexible Reporting Reduction in MIS & Reports preparation time on account of up-to-date information and user control on choice of fields to be displayed

12 Complaints recording and settlementDefined procedure and Reduction in Settlement Time. Identifying areas of improvement in terms of defects. History of Complaints from Customer Order, Visit Reports to Settlement.

Key Benefits from Sales n Distribution - Kalmeshwar

# Functionality Benefit13 Credit Note issuance through sales module Online Issuance of Credit Note resulting in lower processing time.

14 Gate Entry of Vehicles Proper monitoring of truck movement

15 Online liability creation for Discounts, Rebates Online Liability Provision during Invoicing.

16 Automatic freight provision Creates exact liability against transporter

17 Material Receipt acknowledgement Delivery Performance Analysis can be done to improve order to cash cycle time

18 Variant and Batch Classification Provision for recording differences between ordered and supplied specifications.

19 Export Documentation Component Reduction in Preparation Time of Export Documents

20 Export related data copying into various output documents

More accuracy in export documentation & hence reduction in realization time of export proceeds.

21 Export Procedure (replicates physical goods movement) Online Stock Status of Stock lying at Port /Stock in Transit.

22 Export Liability/Benefit posting in accounts On line provision of liability for shipping freight, export commission, port charges & other export expenses.

23 Online Profitability analysis Better analysis and control

24 Document Change Analysis Changes made to order specifications, quantities etc can be traced upto exact time and use preventing misuse and confusion

25 Stock assignment Stocks (Coil/Packets) can be segregated into assigned and not assigned in Delivery Order giving a clear picture of the balance stock

Key Benefits from Sales n Distribution - Kalmeshwar


1 Production process against customer orderProduction is planned only for the orders booked. Information is available to planning as and when the order is booked. No separate intimation is required from marketing dept. Customer requirements is available in more details.

2 Stage wise material requirementRequirement of each intermediate stages of material is planned (Quantity & required date) at the time of customer order creation. Availability date is also known in system for on time delivery

3 Load on each production line Load on each line is available from the system for the order booked. This will help to schedule the production plan and plan the shut downs.

4 Raw material requirement for the order booked Requirement of raw materials & HR coils from Dolvi are known in the system as and when orders are booked.

5 Process order wise production planning & tracking

Better control over production process and better monitoring.As material produced at every stage is identified with customer order, hence online order tracking possible.

6 Production cost control & process controlInformation of all cost inputs (consumables, power etc) & output (prime & arising) to a process order are easily available in the system.Product costing is available.

7 Inventory Management

• Better inventory control• Information regarding quantity produced with out customer order, for Home

consumptions, Non conformance production, diversions etc are easily available in the system

• Material cannot be produced without proper documentation.

8 Control on unplanned production Material cannot be produced without proper documentation. Production with out customer order can be easily tracked.

9 Scrap generation & disposal cycle Online availability of scrap stocks leading to transparency in operations

Key Benefits from Production Planning - Kalmeshwar


10 Production process & Recording Actual consumption against planned consumption is available.Equipment utilization available .

11 Variant and Batch Classification Provision for recording differences between ordered and supplied specifications.

12 Online production cost analysis Better analysis and control

13 Online and Flexible Reporting Reduction in MIS & Reports preparation time on account of up-to-date information and user control on choice of fields to be displayed

14 Document Change Analysis Changes made to process order ,Batch specifications, quantities etc can be traced upto exact time and use preventing misuse and confusion

15 Online availability of information at plant and marketing offices.

No need to send information from plant (dispatch report/stocks) to Marketing office and vice versa (work orders).Planning is possible based on the HR coil dispatched from Dolvi and in transit.

Key Benefits from Production Planning - Kalmeshwar

Never do server sizing before the BBP finalization

Never go productive without SAP Early Watch Check

Never tread beyond the scope of the project

Never make “manpower reduction” as the sole motive or one of the motives of implementation

Training should never be done on a Development Server

Never change Project Plan in the midst of the Project

Never include unplanned activities in the Project

Never try to re-build the legacy system on SAP

Lastly …..Never force the Implementation partner to over-commit unplanned deliverables during the project

Lessons learnt during & after Steel Symphony

Don'ts!

Always freeze the business requirements – as per schedule – before the start of configuration on system

Freeze customization requirements before start of configuration

Training should always be done on a Training Server

Project team and End Users should be identified in the Preparatory Phase of the Project

Connectivity should be available to remote locations before the start of the training and testing

Have alternate integration (data-transfer) plan with remote locations in case of non-availability of connectivity.

Always, finalize the quantum of ABAP/4 development per module at the start of the Project

Last, but not least, utilize the services of a third party auditor for milestone auditing

Always plan sufficient cut-over time during transition to SAP

Ensure timely availability of accurate Open Item data during transition

Always, finalize the scope of training before commencing the Implementation

Lessons learnt during & after Steel Symphony

Do’s!

8. The Road Ahead

2007

mySAPSCM

mySAP PLM

Implement MySAP Business Suite with in 3 yearsMySAP Business Suite includes:

1. SAP Enterprise

2. mySAP Customer Relationship

Management

3. mySAP Human Resources

4. mySAP Financials

5. mySAP Enterprise Portals

6. mySAP Supply Chain Management

7. mySAP Product Lifecycle Management

8. mySAP Supplier Relationship

Management

9. mySAP Business Warehousing

2005

My SAP BIW, mySAP

CRM, PPMS Integration

2006

mySAPHR, mySAPSRM mySAP EP, mySAP FI

Road-Map for Future

Leveraging the SAP System

The Future Landscape

Contacts

PROJECT SPONSORMr. Banwari Lal [email protected]

PROJECT MANAGEMENT TEAMMr. Kishore BannerjeeGeneral Manager, IT - [email protected]+91 98208 01533

Mr. Amit KumarGeneral Manager, IT - [email protected]+91 98200 01588

Mr. Alok KumarA.G.M, IT - [email protected]+91 98200 01588

PROJECT MANAGEMENT TEAMMr. Anil NimbargiProject Manager, [email protected]+91 98200 26138

Mr. Sabahat KaziProject Manager, KALMESHWARsabahat,[email protected]+91 98206 45885

Mr. Gopal KrishnaProgram [email protected]+91 98214 34991

Is Pat Sap Case Study

Documents

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