All about

Steel Symphony!
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 ?
Guiding Statements

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

Project Vision
“The future SAP R/3 system shall become the backbone of initiatives
in SCM, CRM, HR, ESS, BIW etc. across ISPAT Group ”
Before Steel Symphony IT Systems – Status
Before Steel
Symphony
Our Goal

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

Participants
ISPAT - As Owners of the System
Coconut – As Implementation Partners
E & Y – As Quality Assurance Partners

Considerations

Geographical Spread
Reporting Requirements
Infrastructure Requirements
Other Management Initiatives
Scope of the Project

Legal Entities
Ispat Industries Limited
Ispat Metallic Limited
Ispat Energy Limited

Geographical Spread
Dolvi
Kalmeshwar
All depots / Consignment Agents (approximately 23 in number)
Service Centers
Raw Material Storage Locations (like Visakhapatnam, Paradeep etc.)
Targetted Functional Coverage
Project Implementation Time Lines
CPI
2nd May
Planned at the Start of the Project PI
PI Support
Support
2nd Apr
T Go-Live
Go-Live
1st Apr
I All Dates are Go-Live
Go-Live Preparation
Preparation
M Sign-Off Dates 25th Apr
User
User Training
Training
E th
12 April

L 2003 System
System Acceptance
Acceptance
th
18 Mar

I 31st Dec
BBP
BBP Realization
Realization
N As-Is To-Be Gaps
26th Sep
E
31st Aug
Project
Project Preparation
Preparation
S Achieved

Project
Project Kick
Kick Off
Off To be Achieved

2002 M I L E S T O N E S
2. How was it accomplished?
Project Organization

• Coconut –16(35)
Coconut • ISPAT – 41
ISPAT
Key User and Consultant Roles & Interaction
ISPAT Key Users As Coconut App. Cons.
As –– Is
Is Business
Business
Processes
Processes

Business
Business
Requirements
Requirements

Reporting
Reporting
Requirements
Requirements
• As-Is and Business • As-Is review
requirement Doc. To-Be
To-Be Business
Business • To-Be process &
• Review of To-be
Owner Processes
Processes &
& Gaps
Gaps Gaps Documentation
• Business Processes • Realization on the
& Gaps Realization System
Realization
• Review Realization on • Key User Training
on System
System

Collecting System
System Testing
Testing Guide
Guide Key
Key Users
Users in
in
Collecting Work
Work
Profiles &
& Acceptance
Acceptance As-Is Doc.
As-Is Doc.
Profiles &
& Master
Master
Data
Data Prepare
Prepare && Implement
Implement
Get Testing
Testing Strategy
Strategy
Get end
end user
user buy-in
buy-in Key
Key User
User Training
Training
End Prepare
Prepare && Implement
Implement
End User
User
Documentation Training
Training Strategy
Strategy
Documentation
Training Prepare
Prepare and
and
Training End
End Users
Users Go-Live
Go-Live implement
implement Go-live
Go-live
Go-Live
Go-Live Support
Support strategy
strategy
Inputs Received from Other Initiatives like ...

Customer
CustomerRelations
Relations Supply
SupplyChain
ChainStrategy
Strategy Performance
PerformanceManagement
ManagementSystem
System
By
ByNational
NationalInstitute
InstituteofofSales
Sales By
ByPrice
PriceWater
WaterCoopers
Coopers By
ByHewitt
HewittAssociates
Associates

CRM SCM PMS

SAP

SAP
SAPImplementation
Implementation
By
ByCoconut
Coconut FI CO TR PP PM QM PS MM SD HR CIN AM

TPM Six Sigma

Total
TotalProductivity
ProductivityManagement
Management Six
SixSigma
SigmaProcess
ProcessImplementation
Implementation
By
ByFreelance
FreelanceConsultant
Consultant By
ByWIPRO
WIPRO
Responsibilities of Coconut – Implementation Partner

Managerial
Managerial
Project
Project Charter
Charter Preparation
Preparation
Project
Project Management
Management along
along with
with other
other
partners
partners
Infrastructure
Infrastructure Planning
Planning and
and Procurement
Procurement
Recommendations
Recommendations
Change
Change Management
Management
Issue
Issue Resolution
Resolution && Escalation
Escalation

Technical
Technical
Synchronization
Synchronization of of Development
Development andand
Production
Production environment
environment
Installation
Installation of
of SAP
SAP R/3
R/3 4.6C/
4.6C/ CIN4.0A/
CIN4.0A/ IS-MP
IS-MP
BBP
BBP Realization
Realization onon the
the SAP
SAP R/3
R/3 system
system
Connecting
Connecting business
business partners
partners with
with SAP
SAP R/3
R/3
system
system
Go-Live
Go-Live
Post
Post Implementation
Implementation Support
Support
Enhancements,
Enhancements, Interfaces,
Interfaces, Reports,
Reports, Layouts
Layouts
Development
Development
Responsibilities of Coconut – Implementation Partner

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

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

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

Project Charter

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 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-offs
Supporting the project management team to accomplish the project goals
Resolve issues regarding achievement of milestones
Ensure 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 Organization – Roles & Responsibilities

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 Organization – Roles & Responsibilities

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 basis
Approve significant changes to project plans
Review and signoff on project plans and deliverables

Time commitment: Full Time

Project Organization – Roles & Responsibilities

Key User

Prepare As-Is Document

Prepare Business Requirements
Review and Sign-Off To-Be Process & Gaps
Validate 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 testing
Working 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

Project Implementation Time Lines (Revised after VAT)
CPI
2nd Jun
PI
PI Support
Support
2nd May
T Go-Live
Go-Live
st
1 May
i All Dates are Go-Live
Go-Live Preparation
Preparation
m Sign-Off Dates th
25 Apr

User
User Training
Training
e 12th April

l 18th Mar
System
System Acceptance
Acceptance
2003
i 31st Dec
BBP
BBP Realization
Realization
n As-Is To-Be Gaps
26th Sep
e
31st Aug
Project
Project Preparation
Preparation
s Achieved

Project
Project Kick
Kick Off
Off To be Achieved

2002 M i l e s t o n e s
Actual Go Live against target time of 11 PM on 2nd May ‘03
# Module
1 Financial Accounting
2 Asset Management
3 Treasury
4 Controlling
5 Material Management
6 Sales & Distribution
7 Production Planning
8 Quality Management
9 Project system
10 Human Resources
11 Country India Version
12 Plant maintenance
Actual Go Live Time
Dolvi
5:00 PM on 3rd May
1:00 PM 12th May
5:00 PM on 3rd May
Partial
9:00 AM on 7th May
9:25 PM on 2nd May
07:00 AM on 13th May
07:00 AM on 13th May
11:00 AM on 3rd May
2:00 PM on 3rd May
9:25 PM on 2nd May
11:00 PM on 2nd May
Kalmeshwar
5:00 PM on 3rd May
1:00 PM on 12th May
5:00 PM on 3rd May
Partial
2:00 AM on 6th May
6:00 AM on 3rd May
06:00 AM on 9th May
06:00 AM on 9th May
11:00 AM on 3rd May
2:00 PM on 3rd May
6:00 AM on 3rd 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
Functionality Implemented FI

# Business Scenario - Accounts Receivable

Revenue Determination
Direct Factory Sales
Export Sales
Depot Sales
1
Sales from Service Center
Inter Unit Sale
Home / Captive Consumption
Sales Return
Accrual of following Liabilities for Sale & Distribution Expenses
Rebate & Discount
Agency Commission
2
Dealers Commission
Outward Freight Expenditure
Export Related Expenses
Customer Receipt
Down Payment
3 Incoming Payment
Security Deposit / Earnest Money Deposit
Bill of Exchange Receivable with link to the Letter of Credit Component
Functionality Implemented FI

# Business Scenario - Accounts Receivable

4 Interest Calculation on Customer Outstanding
5 Customer Credit Management
6 Customer Balance & Debtors Ageing Reports
Functionality Implemented FI

# Business Scenario - Accounts Payable

Material Accounting at Plants and Material Revaluation
Liability generation
Consumption Booking
Service Entry Accounting
1 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
2 Physical verification
Generation of Fines
Stock Transfer
Invoice Verification Elements
Material Cost
Planned & Unplanned Delivery Cost
3
Subsequent Debits / Credits
Cenvat Entry for Raw Materials & Capital Goods
Extended Withholding Tax
Functionality Implemented FI

# Business Scenario - Accounts Payable

TDS Processing
At the time of Invoice Verification
4 At the time of Down Payment
Certificate Printing
Return Filing
Payment Process
Automatic Payment Proposal
Outgoing Payment
5
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
7
Grossing Up of Balances
GR/ IR Clearing
Vendor Account Clearing
Functionality Implemented FI

# Business Scenario - General Ledger

Month End and Year End Closing Operations
Business Area Adjustments
1 Valuation of Exchange Fluctuation
Vendors and Customers - Regrouping of Balances
Carry Forward of Balances
Internal Transaction
Inter unit Transaction
2
Intra office Transaction
Cross Company Transaction
House Bank
Bulk cheques
3
Bank Reconciliation
Cash Journal Transaction
Assets & CWIP Accounting
4
Pre-operative Expenses Accounting
Functionality Implemented MM

# 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
Functionality Implemented PP

# Business Scenarios – Production Planning

1 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
Functionality Implemented QM

# Business Scenarios – Quality Management

QM in Procurement, QM in Process and QM during Dispatches are the major QM activities. QM available in all the areas, viz. Sponge
1 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.
Automatic transfer of Heat Chemistry & Mechanical/Metallurgical details to the respective coils of the heat thereby reducing manual
5
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.
Functionality Implemented PM

# Business Scenario – Plant Maintenance

1 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.
Functionality Implemented CIN

# Business Scenario – Country India Version

1 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.
Functionality Implemented TR

# Business Scenario - Treasury

1 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
Functionality Implemented PS

# Business Scenario – Project Systems

1 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
Functionality Implemented AM

# Business Scenario – Assets Management

1 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.
Functionality Implemented HR

# Business Scenario – Human Resources

1 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
Training & Event Management – Creation of Business Event group, Event type, Booking, Pre booking of attendance, Creation of
6
External Instructors profile and company details
7 General Services – Maintaining service order and service entries
Correspondence – Generation of letters pertaining to applicant and employees such Interview call letter, Confirmation Letter, Relieving
8
Letter, Appointment letter etc.
4. Training – Strategy & Statistics
5. User Satisfaction Survey
User Satisfaction Survey - Configuration

Sample – For Sales ‘n’ Distribution - DOLVI

User rating
# Business Process
Excellent Very Good Good Average Bad Worse
Normal Factory Sale of HR, Sponge Iron & Pig
1
Iron Products
2 Complete Export Sales Cycle
3 Sales under CT2 Certificate
Inter company and captive consumption sales
4
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 rating
# Reports Very
Excellent Good Average Bad Worse
Good
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
… …………………..
…. …………………..
6. Help Desk
Helpdesk - Post Implementation Strategy

Central Help Desk Features

Monitored and Coordinated by ISPAT IT Personnel at Dolvi

Issue Tracker - A tool developed on Lotus Notes, used by the
Project Team to track and resolve open issues
First Level Issue Resolution by ISPAT Key Users for each
module
Escalation to Coconut SAP On-Site SAP Team at Dolvi,
Casablanca and Kalmeshwar
First Six Months Support – Full Project Team On site
Next 6 months:
On-Site Support – Abap/4, PP/QM and SD Team
On-Call Support – Other Modules
Optimization of Several Functions done and under process during
PI Support
Helpdesk - Post Implementation Strategy

Issue Resolution – First Month after Go-Live

Dolvi + Casablanca Kalmeshwar Total

Module
Issues Issues Issues Issues Issues Issues
Reported Resolved Reported Resolved Reported 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

Helpdesk - Statistics

Five Months – From May ’03 to September ‘03

Dolvi Kalmeshwar Total
Period
Reported 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 8
Total 494 483 11 402 393 9 896 876 20
7. Benefits
After Steel Symphony

IT Systems – Status
After the Project

SAP 4.6C/ CIN

4.0A / SAP MP

FMSPB (Payroll)
System
Key Benefits from Financial Accounting FI

# Additional Features Business Impact

Single Company Code (1000) for Ispat
1 Industries Limited at Dolvi & Kalmeshwar Standardization & Consolidated of Dolvi & Kalmeshwar Accounts.
Locations
Separate Number Range & Clear
Identification of Vendors & Customers
2 One to One linkage with reconciliation accounts and better presentation in MIS
Codes, based on nature of Supplies /
Services
To facilitate the automatic posting through integration with various modules
3 Complete restructuring of Chart of Accounts
Clear Identification of Account Groups

Online Accounting of Kolkata Office Major Business Activities are covered in one system
4
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
5 Integration of SD with FI
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
Key Benefits from Financial Accounting
# Additional Features
6 Integration of MM with FI
7 Integration of TR with FI
8 Integration of CIN with FI
9 Integration of PP with FI
10 Integration of PM with FI
FI
Business Impact
Automatic 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
Automated Bank Reconciliation Statement
Automatic posting of Excise related Transaction:
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
Booking of Maintenance Cost thru Service Entry
Key Benefits from Financial Accounting FI

# Additional Features Business Impact

Capturing CWIP & Project Cost thru WBS element
11 Integration of PS with FI
Project Cost Monitoring and Budgeting
Automatic Depreciation Calculation & Entries posting
12 Integration of AM with FI 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
13 Integration of CO with FI
Tally of Accounts with Gain / Loss Report
Corporate Plan Preparing and Monitoring
Automatic calculation of TDS
Payment of TDS with Clearing
14 Extended Withholding Tax (TDS) 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
15 Cash Journal
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
Key Benefits from Materials Management MM

# Key Features Impact on ISPAT Business

Enjoy transaction Features in 4.6 C
1 All material transactions are done in single screen and thus time saving
(MIGO,MIRO,PO etc)
2 ALV in reporting Every one can access data and prepare the report themselves.
In hold feature documents can be kept saved even if they are incomplete and in Check
3 Hold and Check features
feature we can know the reasons for incompleteness of the document.
Screen can be customized by the user as
4 per his requirement i.e. personnel setting in Time saving and user friendly screen
desktop is allowed in SAP 4.6 c
SAP 4.6 c is compatible to handle web
5 Conventional process of working in excel and word is being reduced
enabled transactions
Field for identifying material based on
Strategic, bottleneck, leverage and routine
6 Analysis of material based on consumption can be done .
etc provided in line with suggestions with
SCM initiative
Various components developed like LC All documents can be traced from a single system and hence transparency and better
7
request, gate entry, RGP/NRGP etc. analysis can be done.
Key Benefits from Production Planning PP

# Key Features Business Impact

Presently multiple departments are maintaining Heat wise / Shift wise Consumption
On-line data availability for decision making
1 data. After Go-Live, data will be available centrally, thereby reducing the work
and controlling.
duplication.
Correct and on-line Product costing and Existing practice of analyzing the process data and leaving room for manipulation can
2
valuation analysis. be minimized.
On-line Inventory Monitoring is possible at On-line business related data will provide better opportunities in international market.
3 all Plants, Depots and service centers for On-line trading, auction, sale, purchase, stock and inventory control. This will create a
better control. better edge for ISPAT in this highly competitive environment.
To record and monitor process data on shift
/ heat basis will provide sufficient guideline Process Log-Sheets shall be maintained in SAP. Present trend of manual Log-Sheets
4
for enhancing benchmark by producing will be discontinued and the data will be available centrally.
improved quality.
Standard SAP PP Transactions are time
consuming and Process Staff may not have
sufficient time to maintain the online data in The Process related data can be maintained through user friendly screens. Data entry
5
the system. To cater to this requirement, a time has reduced drastically, thereby ensuring the system acceptance.
component has been developed which is
simplified up-to the extent possible.
Key Benefits from Quality Management QM

# Key Features Business Impact

Single Specification for HSM Raw
1 Better control over the Quality of Raw Materials.
Materials.
Automatic transfer of Heat Chemistry
2 & Mechanical/Metallurgical details to the Reduction of Man Hours for data entry of each coil. Resulting faster Quality Clearance.
respective coils of the heat.
All reports (HSM, SIP & BF) are generated Reduction of excel usage, Man hours for reports preparation, Better control of outputs,
3
through SAP. Minimize the usage of Lotus Notes.
Customer Enquiries & Customer Handling Facilitates faster reply on Customer enquiry. Required details covered in Customer
4
System. complaint Handling System.
This is a single master document wherein all details are maintained against a grade.
5 TDC as a Master Document
This has reduced the manual maintenance of TDC.
Functionality
Key Benefits from
Implemented
Plant Maintenance PM

# Key Features Business Impact

1 On Line Shift Log Viewing. Easy Communication & Transparency
On-line data availability for maintenance Appropriate Maintenance strategies can be formulated without any delay leading to
2
decision making and controlling. better availability of equipments for production.
Capturing Maintenance Cost Equipment
3 Maintenance Cost History will be available at one place .
Wise.
Capturing Maintenance History of Each Equipment Maintenance History will be available at one place and access will be open
4
Equipment. to all.
On line Preventive maintenance scheduling
5 Automatic scheduler
& Job History
Person wise aggregation of maintenance
6 Enhanced way of work distribution and performance review.
activities.
Key Benefits from Country India Version CIN

# Key Features Business Impact

All Statutory Compliances relating to Excise
Generation and printing of all Excise Documents through the system minimizing
1 documentation have been incorporated in
manual efforts and thereby reducing errors
the system
Generation and printing of all Export Documents through the system minimizing manual
2 Export – Import documentation
efforts and thereby reducing errors.
Enjoy transaction Features in 4.0 Release
3 All material transactions are done in single screen and thus time is saved
(J1IEX)
As all the modules are tightly integrated, lot of job duplication is avoided resulting in
4 Tight Integration
saving time and efforts.
5 ALV in reporting Easy way to create and maintain report formats by end users.
Screen can be customized by the user as
6 per his requirement i.e. personal setting in Time saving and user friendly screen
desktop is allowed in SAP 4.6 C
New Configuration as per VAT
7 System is readily configured for new taxation policies.
requirements
Key Benefits from Treasury
# Key Features
1 Cash Flow
2 LC Management (Customer)
3 LC Management (Vendor)
4 BG Tracking
5 Limits monitoring
TR
Business Impact
Cash Flow which was prepared manually is now available online on a day to day basis
in the required format
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
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
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.
All types of limits – LC, BG, Discounting & others (CC, etc.) are maintained for each
bank. The details of utilization and availability of these limits are available on line.
Key Benefits from Project Systems PS

# Key Features Business Impact

1 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 Assets Management AM

# Key Features Business Impact

Direct capitalization through MM Module
1 Due to integration with other modules accuracy has increased and lot of time is saved.
and AUC settlement through PS Module
2 Schedule V Manual preparation time and efforts have been saved.
3 Income Tax Depreciation Manual preparation time and efforts have been saved.
Due to incorporation of additional checks and customization manual depreciation
4 Automatic Depreciation Run
computation has been discontinued thereby saving time and efforts.
Automatic Profit / Loss entry on sale /
5 No need to track the Asset retirement manually.
Discard of assets
Key Benefits from Human Resources HR

# Key Features Business Impact

Direct data transfer of applicant from Elimination of filling up of MIS form by applicant and personal details by personnel
1
Recruitment to Personnel Administration. department
On line generation of Appointment letter, Elimination of manual generation of letters. Duplicity of job and error during MIS will not
2
Confirmation letter, Interview call letter etc. be there.
Complete structure of position and Updating of Organization chart as when employee relieves or joined is carried out
3
employee can be viewed automatically.
Employee history can be viewed like job This will help us how the events have been takes place in respect of an individual such
4
profile, salary details, training details etc. as Hiring, promotion etc
Easy access to employee data across the
5 Manual data creation and report generation will be minimal with maximum accuracy.
company irrespective of location.
Key Benefits from Sales n Distribution - Kalmeshwar
# Functionality
1 Online processing of orders
2 Control on unplanned production
3 Systematic Flow
Online availability of information at
4 Kalmeshwar, Dolvi, Casablanca, Delhi and
Kolkata
5 Depot stock availability
Online MTS Material allocation while
6 Better Stock Monitoring and enabling Faster Dispatch of Material.
creating Scheduling Agreement
7 LC Tracking
8 Scrap Sales Cycle
9 Visit Plan Compliance
10 Auto pricing in Scheduling Agreements
11 Online and Flexible Reporting
12 Complaints recording and settlement
Benefit
Orders booked in marketing are available immediately to production planning thereby
saving time (sometimes weeks) and money
Material cannot be produced without proper documentation. In case it is done in
emergency it is possible to trace
Indirectly problem areas are being highlighted e.g. need to change weight at the time of
dispatch etc.
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
Even though only two depots are online, coil/packet wise stocks of all depots are
available in system
Better control of outstanding / Overdue of Customers. Control of Dispatches to the
extent of LC Value, information on BOE made against LC.
Online availability of scrap stocks leading to transparency in operations
Sales activities of marketing personnel can be monitored
Reduction in Pricing Errors.
Reduction in MIS & Reports preparation time on account of up-to-date information and
user control on choice of fields to be displayed
Defined 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 Benefit
13 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
Export related data copying into various output More accuracy in export documentation & hence reduction in realization time of
20
documents export proceeds.
Export Procedure (replicates physical goods
21 Online Stock Status of Stock lying at Port /Stock in Transit.
movement)
On line provision of liability for shipping freight, export commission, port charges &
22 Export Liability/Benefit posting in accounts
other export expenses.
23 Online Profitability analysis Better analysis and control
Changes made to order specifications, quantities etc can be traced upto exact time
24 Document Change Analysis
and use preventing misuse and confusion
Stocks (Coil/Packets) can be segregated into assigned and not assigned in Delivery
25 Stock assignment
Order giving a clear picture of the balance stock
Key Benefits from Production Planning - Kalmeshwar
# Functionality
1 Production process against customer order
2 Stage wise material requirement
3 Load on each production line
4 Raw material requirement for the order booked
Process order wise production planning &
5 As material produced at every stage is identified with customer order, hence online
tracking
6 Production cost control & process control
7 Inventory Management
8 Control on unplanned production
9 Scrap generation & disposal cycle
Benefit
Production 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.
Requirement 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
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.
Requirement of raw materials & HR coils from Dolvi are known in the system as and
when orders are booked.
Better control over production process and better monitoring.
order tracking possible.
Information of all cost inputs (consumables, power etc) & output (prime & arising) to a
process order are easily available in the system.
Product costing is available.
• 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.
Material cannot be produced without proper documentation.
Production with out customer order can be easily tracked.
Online availability of scrap stocks leading to transparency in operations
Key Benefits from Production Planning - Kalmeshwar

# Functionality Benefit
Actual consumption against planned consumption is available.
10 Production process & Recording
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
Reduction in MIS & Reports preparation time on account of up-to-date information and
13 Online and Flexible Reporting
user control on choice of fields to be displayed
Changes made to process order ,Batch specifications, quantities etc can be traced upto
14 Document Change Analysis
exact time and use preventing misuse and confusion
No need to send information from plant (dispatch report/stocks) to Marketing office and
Online availability of information at plant and
15 vice versa (work orders).
marketing offices.
Planning is possible based on the HR coil dispatched from Dolvi and in transit.
Lessons learnt during & after Steel Symphony

Don'ts!

U Never do server sizing before the BBP finalization

U Never go productive without SAP Early Watch Check
U Never tread beyond the scope of the project
U Never make “manpower reduction” as the sole motive or one of the motives of
implementation
U Training should never be done on a Development Server
U Never change Project Plan in the midst of the Project
U Never include unplanned activities in the Project
U Never try to re-build the legacy system on SAP
U Lastly …..Never force the Implementation partner to over-commit unplanned
deliverables during the project
Lessons learnt during & after Steel Symphony

Do’s!

D Always freeze the business requirements – as per schedule – before the start of
configuration on system
D Freeze customization requirements before start of configuration
D Training should always be done on a Training Server
D Project team and End Users should be identified in the Preparatory Phase of the Project
D Connectivity should be available to remote locations before the start of the training and
testing
D Have alternate integration (data-transfer) plan with remote locations in case of non-
availability of connectivity.
D Always, finalize the quantum of ABAP/4 development per module at the start of the
Project
D Last, but not least, utilize the services of a third party auditor for milestone auditing
D Always plan sufficient cut-over time during transition to SAP
D Ensure timely availability of accurate Open Item data during transition
D Always, finalize the scope of training before commencing the Implementation
8. The Road Ahead
Road-Map for Future
2007 Implement MySAP Business Suite with
mySAPSCM in 3 years
mySAP PLM

MySAP Business Suite includes:

1. SAP Enterprise
2. mySAP Customer Relationship
Management

2006
3. mySAP Human Resources
mySAPHR,
mySAPSRM
4. mySAP Financials
mySAP EP,
mySAP FI 5. mySAP Enterprise Portals
6. mySAP Supply Chain Management
7. mySAP Product Lifecycle Management

2005
8. mySAP Supplier Relationship
My SAP BIW, Management
mySAP
CRM, PPMS
Integration 9. mySAP Business Warehousing
The Future Landscape

Leveraging the SAP System

 Contacts

PROJECT SPONSOR PROJECT MANAGEMENT TEAM

Mr. Banwari Lal Biyani Mr. Anil Nimbargi
Vice-President Project Manager, DOLVI
Banwari_Biyani@ispatind.com anil.nimbargi@coconut.co.in
+91 98200 26138

PROJECT MANAGEMENT TEAM

Mr. Sabahat Kazi
Mr. Kishore Bannerjee Project Manager, KALMESHWAR
General Manager, IT - DOLVI
sabahat,kazi@coconut.co.in
Kishore_Banerje@ispatind.com
+91 98206 45885
+91 98208 01533

Mr. Gopal Krishna

Mr. Amit Kumar Program Manager
General Manager, IT - KALMESHWAR
gopal.krishna@coconut.co.in
amit_kumar@ispatind.com
+91 98214 34991
+91 98200 01588

Mr. Alok Kumar

A.G.M, IT - DOLVI
alok_kumar@ispatind.com
+91 98200 01588