Hatch Global Project Accounting and Financial Management System Andries J Jacobs M.Com., PhD..

Agenda Need for ERP System Business Requirements Why Implementing SAP Project Strategy Change Management Conclusion

Competitive Environment Supplier of innovative technical and strategic services including: Consulting Information Technology Engineering Project Management and Construction to the Mining, Metallurgical, Manufacturing & Infrastructure industries.

Multi-site Environment Employee Owned Manage $ 11 Billion Worth of Projects Projects in 80 Countries 10 Offices 1 Office 5 Offices 9 Offices 5 Offices 5 Offices 44 Offices 7 Continents 11 Offices 3 Offices 3500 People

Inter-company Environment Global Growth Hatch 2 Companies Hatch 2 Companies Hatch 3 Companies Growth Through Acquisitions Hatch 3 Companies

Employee Growth People Year

Business Structure Consultants Shared Services Joint Ventures Iron & Steel Project Delivery Group Consultants Mining & Mineral Processing Industrial Minerals Light Metals Systems Non-Ferrous Consulting Non-Ferrous Consulting

Agenda Need for ERP System Business Requirements Why Implementing SAP Project Strategy Change Management Conclusion

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 System Business Requirements Why Implementing SAP Project Strategy Change Management Conclusion

Competitive Analysis: Quantitative Approach Functional Fit Total One-Time Cost (CDN $ M)

Agenda Need for ERP System Business Requirements Why Implementing SAP Project Strategy Change Management Conclusion

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 Project Navigator Key Users: PS/FI/HR/SD Functional Teams: Projects Finance Billing HR Key Users: PS/FI/HR/SD Key Users: PS/FI/HR/SD

Scope – Project Process Engineering Services Project C-001 Client C-002 Client Project View Project H-1001 H-1002 External Services Contractors Vendors Consultants

Scope - Business Process Evaluation Close Out Review Pricing Execution Planning Close Out Execution Proposal Request For Proposal Project Close Out Manage Scope Manage Resources Costs Time Activate 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 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 Duration Start Date 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

Physical Architecture Application Servers ITS Server for Workplace Workplace Server Single Centralized Database ITS Server for Intranet ITS Server for Internet Firewall

Development Environment Quality Development Production 010 Acceptance Testing 020 Training 000 SAP Reference 010 Configuration Master 020 Sand Box 000 SAP Reference 010 Production 000 SAP Reference

Agenda Need for ERP System Business Requirements Why Implementing SAP Project Strategy Change Management Conclusion

End-User to Closest Office Trainer to End-Users Site Training Methods Functionality Complexity Change Required Intensity of Training #’s To be Trained # of Offices Session Duration End-User to Closest Office Trainer to End-Users Site OR 3 Increase Net Meeting Tele-Conference & 2 iTutor Support Material + 1

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

System Operations Life Cycle Transition from Project to Operations Project Life Cycle Bus Process Review Configuration Data Clean-Up Install. & Training Go-Live & Support System Operations Life Cycle Dailey Operations Maintenance Enhancements Upgrades

Coaches / Central Services System Operations Life Cycle Support Infrastructure Business Users Coaches / Central Services Key Users End Users System Operations Life Cycle Dailey Operations Maintenance Enhancements Upgrades Helpdesk Team Development Team SAP Technology Group

Roll-out New Functionality Request For Development Helpdesk Close Call Date Stamp E-Mail to User Document Resolution Update Knowledge Base User IT Assist Telephone E-Mail Web-Logging Coaches C L A S I F Y Functional Technical Help- Desk Solve Call Allo-cate Call To Dev. Team Assign To Task List Roll-out New Functionality Execute Development Request For Development

Agenda Need for ERP System Business Requirements Why Implementing SAP Project Strategy Change Management Conclusion

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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