Introduction to Business Blueprint & Process Definition

Name: Introduction to Business Blueprint & Process Definition
Uploaded: 2017-07-18T10:10:00+00:00
Duration: PTM50S6
Channel: Benjamin Ray
Description: Introduction to Business Blueprint & Process Definition

Introduction to Business Blueprint & Process Definition
ICE Project Overview Introduction to Business Blueprint & Process Definition

Agenda Product & Project Introduction mySAP Solution Overview
Implementation Approach

my SAP Solution Offering
Enterprise Resource Planning Cost reduction and efficiency through integration of business processes Specific Solution Requirements Improved effectiveness in a particular area (e.g., Oil and Gas) Collaborative Business Value creation through collaboration within business communities So, let us first look at what has been happening in the world of business We believe there are 3 stages that business that have been seen recently In the first companies were looking at Cost reduction and efficiency through integration of business processes, so called ERP functionality, the goal of which was to increase efficiency within a company Then the next generation of “new dimension” products appeared taking functionality out of the company, to bring value through extending the supply chain with EDI or looking at external information with BW The internet has driven to a collaborative environment where value is created through collaboration within business communities The next 3 slides look at this is a different view.

Tailored mySAP Industry Solutions
DISCRETE MANUFACTURING SERVICE PROVIDER FIN. SERVICES & mySAP Aerospace & Defense mySAP Automotive mySAP Engineering & Construction mySAP High Tech mySAP Banking mySAP Insurance mySAP Financial Service Provider PUBLIC SERVICES mySAP Healthcare mySAP Higher Education & Research mySAP Public Sector PROCESS INDUSTRIES mySAP Chemicals mySAP Mill Products mySAP Oil & Gas mySAP Pharmaceuticals mySAP Mining COMMUNICATIONS UTILITIES & mySAP Media mySAP Telecommunications mySAP Utilities CONSUMER INDUSTRIES mySAP Consumer Products mySAP Retail

Key Oil & Gas Customers Europe/Middle East Americas Asia Pacific
AO Lukoil Aral ASCo A.P.I. BEB Erdgas und Erdöl Aprechim BHP Petroleum BP Oil/Mobil Caltex Cepsa CHI Shell Austria AG Statoil Surgutneftegaz Total TotalFina/Elf Veba Conoco Engen ENI ERG Petroli S.p.A. ExxonMobil Kuwait Petroleum Mobil North Sea Norsk Hydro OAO Gazprom Oil Refineries Ltd. Petromidia Amerada Hess Amoco BP Chevron CITGO Conoco Crown Enron Fintech Farmland Halliburton Husky Oil Petro-Canada Petrobras Phillips Petroleum Tesoro Texaco ExxonMobil Pemex Shell Brasil Sunoco Repsol-YPF Valero Apache BHP Petroleum Caltex Conoco Cosmo Oil ExxonMobil Isu Chemicals Keloil (M) Sdn. Bhd. LG-Caltex Pertamina Petronas Petron Corporation Phillips Petroleum PTT Exploration & Production Public Co. Shell Shell Chemicals Showa Shell SK Corp. Woodside Energy Ltd. BPCL IOCL Kochi Refineries ONGC Reliance Group Phillips UK Repsol-YPF RWE-DEA Saga Petroleum Saudi Aramco Shell

ONGC’s Vision Retain leadership by
Optimization and standardization of business processes Higher productivity Cost reduction Strengthening efficiencies Lowering of inventories Moving up the value chain Higher customer service and satisfaction

ICE Project Objectives
Optimization and standardization of business processes to enable integrated information availability Information Consolidation for Efficiency (ICE) Availability of information on real time basis. Elimination of duplication of activities across business processes by capturing data at source point. Facilitate information consolidation at corporate level. Availability of information at the right time, at the right place, thereby, enhancing managerial control. Integrating all business applications under single ERP platform with minimum interfaces. Improved responsiveness to changing global market scenario by adopting new and improved technology solutions.

Key Benefits of Project ICE
Better Decision Support Better Operation Control Effective Cost Management Enabling Internal Performance Measurements (KPI’s and SLA’s) Improved responsiveness to changing market / global conditions Enabling Transformation Alignment to new Organisation Structures e-Corporation

What ICE Project is NOT! It is NOT an “IT” Project
It is NOT a Technical or Process Control System (… but is a business application system which can integrate information for business decision) It is NOT about writing program codes and building database structures It is NOT about modeling current processes into an IT Package… (…but of choosing a process most suitable for ONGC from within a repository of processes) It is NOT an approach to look at Functions and Departments… (…but an approach to visualize the end-to-end processes)

Challenges ahead Change Management- both attitudinal and business process. Project Ownership - while SAP and ONGC core teams can facilitate implementation, project success largely depends on functional heads owning the project initiatives and steering the implementation in their respective business functions. Data Migration – the GIGO trap – The onus of providing clean & complete data is with all users across ONGC. Data Standardization – Vendor masters, Equipment masters, Material masters, and Service masters need to be standardized. Clarity in Organization Structure (as per CRC) – In SAP implementation, first step is to clearly define and configure the organisation structure, which is the foundation for the system design.

Critical factors for success
Efficient Project Management team duly supported by a balanced steering committee consisting of heads of Key Business Functions. Ideal core team with right mix of dedicated and experienced Team Leads and supported by young talent. Timely availability of infrastructure for the project office and also at implementation sites across ONGC. Reliable and uninterrupted network connectivity to offshore rigs and platforms. Right kind of work environment for the project team to keep up their efficiency and morale. Time is going to be the most valuable factor for this project. Hence, timely decisions at various levels are going to play the crucial role.

R/3 The 1000 islands dilemma! 80’s & ‘90s What SAP did!
Production Planning Shop Floor execution Mfg. Engineering Purchasing A/R Inventory General Ledger Sales A/P 80’s & ‘90s Design What SAP did! R/3 Controlling 1,000 island solution

R/3 Client / Server ABAP/4 The mySAP Solution SD FI MM CO PP AM SM EC
Sales & Distribution FI Financial Accounting MM Materials Mgmt. CO Controlling PP Production Planning AM Fixed Assets Mgmt. R/3 SM Service Manage- ment EC Enterprise Controlling Client / Server ABAP/4 QM Quality Manage-ment PS Project System PM Plant Main-tenance WF Workflow HR Human Resources CIN/ IS-Oil

Sales and Distribution
Sales Forecasting Customers, Quotes, Contracts & Orders Pricing & Invoicing Distribution Online Credit Control SD Sales & Distribution FI Financial Accounting MM Materials Mgmt. CO Controlling PP Production Planning AM Fixed Assets Mgmt. R/3 SM Service Manage- ment EC Enterprise Controlling Client / Server ABAP/4 QM Quality Manage-ment PS Project System PM Plant Main-tenance WF Workflow HR Human Resources CIN/ IS-Oil

Sales and Distribution Processing
F I N A N C I A L A C C O U N T I N G Sales activity S A L E S I N F O R M A T I O N S Y S T E M M A T E R I A L S M A N A G E M E N T Sales Support Sales Shipping Billing Subsequent delivery free of charge Inquiry Quotation Contract Delivery free of charge Sales order Returns Scheduling agreement USD Delivery Invoice Debit memo Credit memo ICE Project Highlight Change envisaged in the process of Inventory Accounting and Cost Distribution Reports to Asset Managers through Profit Centre Accounting

Procurement and Materials Management
Purchasing Receiving Inventory Management Warehouse Management SD Sales & Distribution FI Financial Accounting MM Materials Mgmt. CO Controlling PP Production Planning AM Fixed Assets Mgmt. R/3 SM Service Manage- ment EC Enterprise Controlling Client / Server ABAP/4 QM Quality Manage-ment PS Project System PM Plant Main-tenance WF Workflow HR Human Resources CIN/ IS-Oil

Materials Management Coverage
Procurement Planning Indenting Purchasing Materials Services Budget Monitoring and Control Inventory Management Goods Receipt Stocking Goods Issue Material Transfers Warehouse Management Interfacing with bar-coding systems

? Purchasing Cycle Budgeting Reference and copy function
Account assignment - Single - Multiple Stock material Consumable material PURCHASE ORDER - Normal - Subcontracting - Consignment - Third-party - Stock transfer - Text Service Contract Material provided Purch. order Purch. info rec. Deadline item Req. for quot. ? Statistics Generation from purchase requisition processing Direct entry Purchase order history

Purchasing information system
Materials Management PURCHASING BASIC DATA SD Third-party order Material Special stock Batch Vendor/one-time customer Purchasing info record Service specifications Workflow Optical archive Texts Mail Communication Classification Documents Conditions Purchase requisition MRP Direct requisition Release procedures PP Requirements RFQ/Quotation PM Service / spare parts Material/service Price comparisons Price comparison list QM Purchasing Inspection lot Purchasing information system Vendor evaluation Purchase orders Outline agreements Scheduling agreements G/L accounts Cash management and forecast FI INVENTORY MANAGEMENT Goods receipt/issue Transfer posting Quantities and values Physical inventory Storage bins AM Fixed assets Cost center / Budget CO INVOICE VERIFICATION PS Check and post Price update Project

Production Planning & Costing
Bills Of Material/Recipes Capacity Planning Production Scheduling Shop Floor Control SD Sales & Distribution FI Financial Accounting MM Materials Mgmt. CO Controlling PP Production Planning AM Fixed Assets Mgmt. R/3 SM Service Manage- ment EC Enterprise Controlling Client / Server ABAP/4 QM Quality Manage-ment PS Project System PM Plant Main-tenance WF Workflow HR Human Resources CIN/ IS-Oil

R/3 Client / Server ABAP/4 Quality Management SD FI MM CO PP AM SM EC
Sales & Distribution FI Financial Accounting Inspection Orders Inspection Planning & Management ISO9000 Compliant MM Materials Mgmt. CO Controlling PP Production Planning AM Fixed Assets Mgmt. R/3 SM Service Manage- ment EC Enterprise Controlling Client / Server ABAP/4 QM Quality Manage-ment PS Project System PM Plant Main-tenance WF Workflow HR Human Resources CIN/ IS-Oil

Print insp. instruction
Quality Management Basic data MM PP Purchasing Requisition Production planning Materials Vendors Routings Documents Inspection plan Characteristics Insp. methods Insp. catalogs Test equipment Inventory mgmt Goods receipt Stock transfer Goods issue Reqt planning R-cut capacity planning Invoice verification Warehouse management Planned Orders Opening period Order: - Creation - Release - Confirmation QM Inspection lot Inspection lot Shop floor control Capacity leveling Print insp. instruction CAM Results recording PM SD Test equipment management Shipping Billing Usage decision

R/3 Client / Server ABAP/4 Plant Maintenance SD FI MM CO PP AM SM EC
Sales & Distribution FI Financial Accounting MM Materials Mgmt. CO Controlling Equipment & Facilities Preventive Maintenance Work Orders Maintenance History PP Production Planning AM Fixed Assets Mgmt. R/3 SM Service Manage- ment EC Enterprise Controlling Client / Server ABAP/4 QM Quality Manage-ment PS Project System PM Plant Main-tenance WF Workflow HR Human Resources CIN/ IS-Oil

Corrective and Preventive Maintenance History + Analysis
Plant Maintenance Technical Objects Resources Assemblies Planners Tools/ Machines Material Equipment Work center/ Capacity Functional locations Corrective and Preventive Maintenance Tasks Maintenance History + Analysis - Usage history - Movement history - Event history - Cost history - MTTR / MTBR - Failure and downtime history planned tasks unplanned tasks Task processing Completion

R/3 Client / Server ABAP/4 Project Systems SD FI MM CO PP AM SM EC QM
Sales & Distribution FI Financial Accounting MM Materials Mgmt. Work Breakdown Structure Networks / Activities Budgetary Control CO Controlling PP Production Planning AM Fixed Assets Mgmt. R/3 SM Service Manage- ment EC Enterprise Controlling Client / Server ABAP/4 QM Quality Manage-ment PS Project System PM Plant Main-tenance WF Workflow HR Human Resources CIN/ IS-Oil

Projects Project Systems Plant Maintenance Marketing EDP
Shutdown Turnaround Projects Plant Maintenance Engineer-To-Order Plant Engineering Research & Development Capital Investment Marketing Utilities Internal Projects LSTK Projects Other Projects – Survey, Drilling, Logging, Institutes, etc. External Projects

R/3 Client / Server ABAP/4 Finance & Controlling SD FI MM CO PP AM SM
Sales & Distribution FI Financial Accounting MM Materials Mgmt. CO Controlling PP Production Planning AM Fixed Assets Mgmt. R/3 SM Service Manage- ment EC Enterprise Controlling Client / Server ABAP/4 QM Quality Manage-ment PS Project System PM Plant Main-tenance WF Workflow HR Human Resources CIN/ IS-Oil

Information Warehouse Assets and liabilities
House of Finance Group accounting EC EIS Information Warehouse TR TREASURY Funds Center Cash flow Risk Mgmt . . . GL/AP/AR Consolidations FI ACCOUNTING Assets and liabilities . . . CO CONTROLLING Profitability Center Costs . . . Capital investment & financing Return on investment IM

Human Resources Management
SD Sales & Distribution FI Financial Accounting MM Materials Mgmt. CO Controlling PP Production Planning AM Fixed Assets Mgmt. R/3 SM Service Manage- ment EC Enterprise Controlling Client / Server ABAP/4 QM Quality Manage-ment PS Project System PM Plant Main-tenance WF Workflow Personnel Admin & Development Time Management Training, Payroll HR Human Resources CIN/ IS-Oil

HR Process - Employee Life Cycle
Job / Position Description Promotion, Salary increment, Retirement Vacancy Planning Qualification Updates Recruitment Organisation Management Master Data Employee Training Transfer applicant data to Master data Under scope of SHRAMIK Project Career Planning Compensation Administration Payroll Time & Attendance Travel Expense

R/3 Workflow Integrated Solution Client / Server Open Systems SD FI MM
Sales & Distribution FI Financial Accounting MM Materials Mgmt. CO Controlling PP Production Planning AM Fixed Assets Mgmt. R/3 SM Service Manage- ment EC Enterprise Controlling Integrated Solution Client / Server Open Systems QM Quality Manage-ment PS Project System PM Plant Main-tenance WF Workflow HR Human Resources CIN/ IS-Oil Complete Workflow Solution Define Tasks, Roles, Events Interfaces to 3rd-party

Add-Ons (India & Oil Specifics)
SD Sales & Distribution FI Financial Accounting MM Materials Mgmt. CO Controlling PP Production Planning AM Fixed Assets Mgmt. R/3 SM Service Manage- ment EC Enterprise Controlling Integrated Solution Client / Server Open Systems QM Quality Manage-ment PS Project System PM Plant Main-tenance WF Workflow HR Human Resources CIN/ IS-Oil Statutory Requirements like Excise, Modvat, Sales Tax, TDS …..

mySAP O&G Solution for Upstream Companies
Joint Venture Accounting Production Sharing Contracts Offshore Logistics Management

mySAP Enterprise Buyer
Buying for everyone from anybody everywhere Everyone (web-based, self service) Any employee Operational purchasers (e.g. Service technicians) Professional purchasers (Internet Bidding, supplier mgmt) In any ERP environment From anybody everywhere: Virtually any supplier with electronic catalogue Order placement at supplier side via XML (using the SAP Business Connector) no extensive training Mainly used for MRO procurement but can also be extended to direct items

Asset Lifecycle Costing
analysis planning procurement active life scrap Life Cycle Costing includes the costs associated with acquiring, using, caring for and disposing of physical assets, including the feasibility studies, research, design, development, production, maintenance, replacement and disposal as well as support, training and operating costs generated by the acquisition, use, maintenance and replacement of permanent physical assets. (source: David Woodward, Life cycle costing from Optimum Asset Management)

INTERNET-BUSINESS FRAMEWORK
mySAP Portals company boundary Web browser access Portal industry-specific role-based personalized drag & relate INTERNET-BUSINESS FRAMEWORK Market- place single sign- on R/3 FI LO HR PLM BBP SEM O&G BW mySAP.com solutions open Internet standards non mySAP.com Trim Optim Partner SAP inside outside Cock- pits PCS legacy

Business Information Warehouse
BW Load Pack DataStage ETL Components E-Business Applications Legacy Systems VSAM RDBMS (DB2) ADABAS File Non SAP SAP BW BW Service API for SAP Siebel PeopleSoft XML BAPI ... Oracle Package Two allows users to set up a separate production version of DataStage with broader access to data originating in application environments. This package includes: Ø Two copies of DataStage on Intel NT or Unix Ø Support for accessing data from an unlimited number of non-SAP R/3 sources, including any of the data sources supported by the base DataStage license Two copies of the DataStage Load PACK for SAP BW Ø Three licenses to Ascential application PACKs. These can be for either the same or different application PACKs. Five days education at SAP’s COC in Europe and the US. A very important tool for Asset Managers and Business Managers to monitor performances and evolve business strategies

To Summarise – the Functional Scope
Stage 1 Financial Management (FI) Controlling – Costing (CO) Asset Management (AM) Materials Management (MM) Warehouse Management (WM) Sales & Distribution (SD) Quality Management (QM) Production Planning (PP) Product Costing (CO-PC) Joint Venture Accounting (JVA) Prod.Sharing Agreements (PSA) Offshore Logistics Mgmt (OLM) Plant Maintenance (PM) Project Systems (PS) Investment Management (IM) Funds Management (FM) Treasury Management (TM) Business Info. Warehouse (BW) Stage 2 Enterprise Buyer Professional Stage 3 Workplace for Key Business Managers Stage 4 EDMS– Lifecycle Data Management concept Stage 5 Strategic Enterprise Management Stage 6 Asset Lifecycle Costing Add-On 1 UFSO/CRC Realignment Add-On 2 HR Migration / Integration

Stage-1 Scope of implementation
mySAP Financials consisting of- Financial (FI) Controlling (CO) Material Management (MM)- Materials & Services Plant Maintenance (PM) Project Systems (PS) Investment Management (IM) Asset Management (AM) Treasury (FM) Sales & Distribution (SD) Business Information Warehouse mySAP Oil & Gas Upstream Solutions consisting of- Joint Venture Accounting (JVA) Production Sharing Agreement (PSA) Offshore Logistic Management (OLM) mySAP implementation in OVL FI and CO functions will be implemented in OVL along with Stage 1.

Stage-wise 2 to 6 – Scope of implementation
Electronic Business Procurement as a Proof of Concept covering 100 vendors supplying OEM spares and 50 vendors supplying MRO items. Stage 3 mySAP Enterprise Portals (Workplace) for Directors, Asset Managers and Key executives to be implemented within the same timelines for implementation of Stage 1 mySAP Financials.This will provide MIS reports specific to users requirement on their desk tops. Stage 4 Lifecycle Data Management (LDM) as a Proof of Concept covering pages of documents / manuals relating to Neelam Process Complex and Off shore Rigs (1 floater and 1 jack-up rig).This will facilitate on line ready reference of documents and manuals to PM,MM, Maintenance & Operational engineers. Stage 5 Strategic Enterprise Management (SEM) covering 24 primary KPIs and 24 Secondary KPIs. ONGC need to engage separate consultancy services for bench marking and fixing of KPIs. Stage 6 Asset Lifecycle Costing (ALC) to enable monitor the cost of acquiring, using , caring and disposing of physical assets, including feasibility studies, research, design and development.

Add-Ons – Scope of implementation
Add-on 1 - UFSO-CRC alignment Feasibility study will be done on start of the project and based on the observations by the Project team, short term and long term alignment strategy will be finalized and aligned. Add-on 2 – SHRAMIK migration to ICE SHRAMIK will be migrated to ICE in as-is-where-is basis in one go after completion of ICE roll outs to all locations. Data Entry and Document Creation While ONGC will be responsible for providing the required data / documents in the required formats, SAP India will undertake data entry work for various applications and document creation work for LDM by engaging external agencies

Big Bang Phased All together Implementation Options
Two Generic Approaches - FI MM PM CFA PP IM Application Area Company Corporate Location 1 Location 2 Location 3 Big Bang All together FI MM PM CFA PP IM Application Area Company Phase 1 Phase 2 Corporate Location 1 Location 2 Roll-out Phased

Hybrid Approach for ONGC
ONGC is a large and complex organization – needs an hybrid approach Stages Take all relevant functionalities of one or more mySAP Component Phases Implement the functionalities of a given Stage in Pilot Location (Western Offshore) and then Rollout to Other Businesses Milestones SAP’s proven ASAP methodology shall be used and each Phase will be implemented in 5 major milestones Project Preparation Business Blueprint Design Realization Preparation to Go-Live Go-Live and Support

ICE Implementation Overview
Sep’03 Western Offshore Stage 3 Workplace Stage 4 EDMS Stage 1 mySAP June’03 Common Design Jan’04 Western Onshore Jul’04 Southern Onshore + Corporate Sep’04 Eastern Onshore Nov’04 North/ Central Onshore Jul 2002 Jan 2003 2004 Time line in Months 2005 Stage 2 EBP Mar’04 May’04 Aug’04 Oct’04 Dec’04 Stage 5 SEM Nov’04 Stage 6 ALC Nov’04 Go-live

Geographical coverage
Western Offshore Western Onshore Southern & Corporate Eastern Onshore Northern & Central Vasudhara Bhavan Ahmedabad Chennai Sibsagar Agarthala Uran Baroda Karaikal Sib.W.Shop Kolkatta- Hazira Cambay Rajamundri Nazira RO Nhava Supplu Base Mehsana Narsapur Stores Jorhat-DVP WBP Offshore Rigs & Platforms Ankleswar Vizag S.Base Jorhat-GSD T & S Juhu Helibase Jodpur Hyderabad Office Silchar Jammu Maker Towers Location Stores Delhi Office Bengal Chemicals Baroda W.Shop Dehradun Priyadarshini IRS, Ahmedabad Mahakali Caves, Andheri T & S Office Arcadia Botwala Chambers Panvel 12 Victoria Docks Darukhana Nirmal IPSHEM, Goa

Estimated SAP user base in ONGC
MODULE Western Offshore Western Onshore South & Corporate Eastern Onshore Central & Northern Total Users MM 1058 1416 890 690 141 4195 FI & CO 337 295 404 200 82 1318 PM 305 236 123 140 29 833 PS 157 88 156 40 28 469 HR 185 322 70 35 769 PP -- SD 10 22 5 52 TR & CFM 2 15 17 BW / SEM 80 55 135 30 20 320 JVA / PSA 27 8040

Power User Team - Regional Business Analysts & Configurators
ICE Project Team ORGANIZATION STRUCTURE Project Sponsor Executive Committee Change Management Team Power User Team - Regional Business Analysts & Configurators Steering Committee Process Owners Program Manager…ONGC & SAP Project Manager… ONGC & SAP Functional Project Manager… ONGC Technical Project Manager… ONGC ProjectProject Team – Full Time Team Leads BW & Reports Lead Training Manager Integration Manager ABAP Lead Lead Interfaces Lead Internet Technology Basis Lead ABAP Developers Web Programmers Basis Team Business Analysts Business Configurators

Process Owners – Roles & responsibilities
Review and approve To-Be Business Process Documents – for procedures as well as completeness Review and approve test scenarios and test scripts for completeness Review and approve authorization profiles of users in their respective process areas Provide additional resources and Power Users where necessary Review and recommend changes in Business Policy / Procedures (if any) resulting from mySAP implementation Drive SBU Standardization initiative Review and advise on Change Management decisions Resolve cross-functional issues and policy related issues Ensure timely deployment of Power Users for testing and training Ensure timely deployment of End Users for Training

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Introduction to Business Blueprint & Process Definition

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