erp requirment

8/13/2019 ERP Requirment

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Introduction:

The company (IndustryOne) is planning to implement business solution across all business functions in a phased manner, initially implementing Financials and Operationslike Procurement, Inventory management, HRMS and later extending the system toSales, Manufacturing and Maintenance.

Currently IndustryOne is looking for an ERP for capturing information of plant activity intoan integrated platform, to use a system that enables total integration for all their processesand business functions. The management also wishes to access online information fromsuch an integrated system from anywhere, enabling them decide effectively based ontimely information in relation to their business. The main objective of using an online,integrated ERP solution is to have a full and detail view on each and every process in suchway that each department can use this information to align its activities to meet corporateobjectives. IndustryOne also whishes to use the new system to apply best practices of theindustry and identify and address bottlenecks in the business processes in order toincrease its performance in respective areas.

IndustryOne has ambitious business growth plans and its production capacity is high. To

help achieve the growth plans it is vital that IndustryOne retains customers, maintains highproduct quality standard and serve its client base efficiently, while striving to expand reachand finding means to improve profitability and apply internal control.

IndustryOne needs a system that improves its supply chain management capability andprovides tools to its staff to carry out their tasks efficiently, help reduce human errors,cut down process time, enable them access and use information on-time in an easymanner while ensuring information security, authorities and access control.

IndustryOne’ staff need effective tools to make sure that the Sales, Production andLogistics functions are executed effectively ensuring on-time deliveries while applyingQuality Control, Credit Control and Compliance with Corporate Policies.

The ERP while allowing empowerment should also enforce Corporate Policies likeEffective Credit Control, Data Security and Data Filter, Approval rights and escalationmechanism, to ensure involvement of authorized senior managers in critical situationthere by minimizing business risk.

The ERP should also facilitate Operations management, defining and monitoring Sales,Production Targets, Sales Forecasting , Production Planning , Plant Maintenance, CreditControl mechanism to maximize productivity and increase close coordination withcustomers that result in empowering management team and enhanced customersatisfaction.

The nature of business of IndustryOne involves close coordination and communicationamong departments while planning and execution of Procurement, Production Scheduling,Sales and Deliveries. The ERP therefore should offer tools and facilities to capture andenable use of information like

• Product Forecast and Procurement Planning.

• Up to date Sales, Stock status and Production information.

• Customer and Vendor history.

• Up to date Accounting and Financial data.

• Employee’s information and performance appraisal.



General Features

Some of the specific business benefits that IndustryOne organization would derivefrom implementing ERP, The features required across the system are listed here.

• Process Improvement: Improve processes and enforce adoption of improved

process related practices by incorporating latest features like Email Matrix, (Event or

Exception based) Business Alerts and Alarms (Email and SMS) to proactively inform

and engage process owners.

• Enforce Business Rules: Enforce document flow and need based simple or multi-

level approval mechanism to different documents to ensure that proper authority

levels are implemented and business transactions are made with the knowledge of

supervising Managers.

• Analytics: By analytics, senior management is always looking at the summarizedinformation from different business functions as their consolidated view.

• Graphical Business Workflow: To change or modify their businesses based on

best practices. This also allows the business owners to look at their business

processes graphically such that they can relate to the over all picture and take

necessary steps to improve efficiency.

• Automate Reporting: Share information with internal and/or external stake holders

without any human efforts by incorporating Publish and Subscribe feature.

• Publish & Subscribe: Share information with internal and/or external stake holders

without any human intervention by incorporating Publish and Subscribe feature.

• Integrated Messaging: Integrated messaging and remote approval function helps

the system to be in touch with core users and also make necessary approval

workflows.

• Latest Technology: To be updated on the technology front with the database and

front ending application for ongoing support.

• Modular integration thereby eliminating data duplication.

• Business Process modeling tools to allow adapting to change in business

practice.

• Work Flow Management to cater to document flow in an organization.

• Seamless integration with other Windows-based applications & tool sets.

• Online information references for unrestricted past years.

• Management Information Reports for effective analysis and decision making.

• Integral security model that controls access to key reports, objects within the

database and individual data records.

• The security model is has to be based on the user’s job role and can be

administered in a centralized repository.

• Encrypted Password



• Tracking: Transaction Based audit Trial Logs.

• Internet Deployment : Enable the power of deploying the application over the

internet such that key people can access information on time and every time

thereby enabling them to take effective decisions

• Adhoc Reporting: Generate Adhoc reports and user friendly MIS Reports

• Reports in PDF Format.

• Integrated application suite that eliminates duplication of data entry and thus reduces

human error and erroneous data.

• Reinforcement: Apply Re-enforcement as a means of Change Management while

implementing process changes by using ORION’ features of pro-actively informing

staff of the actions required to be taken for a forthcoming event. (Alarms, Triggers,

Exception based approvals)

• User Friendly - On Screen Help features for all topics.



I. Financials:

General Ledger is at the heart of any accounting system. It keeps centralized charts ofaccounts and corporate financial balances. It supports all aspects of the businessaccounting process. In this module, financial accounting transactions are posted,processed, summarized and reported. It maintains a complete audit trail of transactionsand enables individual business units to view their financial information, while the parent

company can view the consolidation information.

The software should support the functionality such as chart of accounts structure, ledgerdevelopment and maintenance, financial consolidation and reporting, journal entry,

journal voucher ledger transactions, ledger controls, multicurrency accounting andconversions, on-line enquiry, reporting, financial statement reporting, variance analysisand additional financial reporting.

Covering GL / AP / AR / FA / Cash Management. Following is an organization chart thatoutlines the structure of departments and their hierarchy. The existing and plannedfinancial transactions are listed along with their effect on GL or sub modules.

From the Financial Management perspective, the department is keen to provideknowledge and train employees that the information entered at the initiation point of atransaction is accurate and budget control is applied at requisition level itself. The benefitof employing this policy is to cultivate an atmosphere of empowerment wherein the staffon shop floor, engineering, maintenance understand the implications of their act and ownthe results of the transactions they initiate.

The benefit of minimizing errors at first level is that subsequent transactions carry thedata that is meaningful for financial reporting as well as provide operational reportingagainst the set benchmarks. Finance department is looking into having an integratedsystem that is offering flexibility of process change in an evolutionary manner as well asprovide check and balance at various levels across organization. Such a system should

deliver online and timely reports as well as trigger alarms and alerts at occurrence of setbusiness events.

The basic reporting for day to day departmental needs should have facility to selectspecific account range, sub account range, date range, transaction range etc. Thesummary reports are expected to include YTD, previous period, comparison with budgetand variances.

Current and expected report formats are described in Appnedix A and it is expected tobe provided by the system. There may be some addition to the reports mentioned.

Departments • Finance & Admin

• Sales

• Procurement

• Operations

o Production o Engineering o Shipping and Logistics o Quality & CTS



Stores Location: These are the locations identified at this stage; it may be revised ifneeded.

Finished Goods StoreRaw Material StoreEngineering Store

Shop floor / Production Stores QC Store

Features of Operational transaction that effect GL:

Goods Receipt: Storekeeper pulls the information by referring to the P.O and records the quantitiesreceived.

Clones of Goods Receipt Note are made to identify and record different transactions, forexample

• RM Receipt

• Service Receipt

• Packing Material Receipt

• Receipt of Fixed Asset

• Receipt of RM on consignment basis

Features: • Raw material cost is recorded as standard cost, other material and services cost

is taken at actual cost.

• The system has to integrate with Accounts Payables.

• A three way matching facility is required to match the good receipt note.

o Multiple approval facility is required to indicate

Completion of Entry Completion of Costing Approval of Store keeper Approval of Purchase Dept

Financial Entry

Purchase of Raw Material Raw-Material stock a/c …………….. Dr

Accounts payable…………………….Cr

Purchase of Plant Spares Spares stock a/c …………….. ……..Dr Accounts payable…………………….Cr

Purchase of Consumables Stock Consumables stock a/c …………….. Dr To Accounts payable …………………Cr

Similarly other accounts have to be updated as required for the following transaction. a.Purchase Return b. Purchase Discrepancy c. Consignment Receipt

d. Consignment Consumption

e. Issue of spares for Maintenance Job f. Issue of Consumables to cost centres g. Return of Material from Maintenance Job h. Issue/ transfer of RM to shop floor (Production area) i. Production of Finished Goods



j. Transfer of FG Stock to HFI store (Held for inspection) k. Delivery of FG to Customer l.Invoice m. Sales Return n. Stock Adjustment o. Monthly Depreciation Entries generated automatically.

Financial Statements a. Balance Sheet b. Schedule to Balance Sheet c.Income Statement d. Schedule to Income & Expenses Statement e. Budget Variance Report f. Balance Sheet With Budgets

The above reports may have multiple formats including ‘comparison with budget’,variance and previous period figures.

General Ledger Reports

a. Main A/c Trial Balance b. Main A/c Trial Balance By Division/Department c. Sub Accounts Trial Balance d. General Ledger (LC) e. Sub Ledger (LC) f. Sub Ledger (FC) g. General Ledger (FC) h. Consolidated Account Wise Summary i.Voucher Listing

j. List Of Unprocessed Transactions k.Bank/Cash Book l. Bank/Cash Position Report Local Currency m.

Journal And Other Day Books n. List Of Unprocessed Transactions o. Main A/c Trial Balance (Posted And Unposted) p. Petty Cash Disbursements Pending Reimbursement q. Petty Cash Reimbursement During Period

r. Multiple Account Grouping formats to deliver reports like• Statement of expenses - YTD (Actual vs. Budget)

• Statement of expenses - For the Month (Actual vs. Budget)

• Statement of expenses - YTD (Cur. Yr vs. Prev. Yr)

• Statement of expenses - For the Month (Cur. Yr vs. Prev. Yr)

• Statement of expenses - Current Month vs. Previous Month

AP/AR Reports a. Creditors Aged Analysis. b. Creditors Aged Analysis Summaryc. Age Analysis Detailed (Creditors)d. Supplier Invoice Due For Paymente. Invoices Cleared For Payment f. Statement of Accounts - AP g. Debtors Aged Analysis. h. Debtors Aged Analysis Summaryi. Age Analysis Detailed (Debtors) j. Statement Of Accounts - AR



FIXED ASSETS

System should provide depreciation summary and automatic depreciation allocation journal voucher.

a. Summary of Fixed Assetsb. Fixed Assets (Detailed) c. Fixed Assets Additions and Disposals (Detailed)

Additional Information Fiscal year of company JAN-DEC

Journal Voucher, Payment Voucher, Petty Cash Reimbursement, Petty Cash disbursement, Debit Note,

Types of transactions used in Financial Accounting Various types of Auto JV (Fixed,allocation, correction, reversal)

Credit Note, Invoices, Supplier Bills, Depreciation Voucher, Payroll Voucher.

in use Fixed JV, Allocated, Correction Vouchers are used

Auto Bank reconciliation

required Yes Petty cash usage and control Petty cash system required

Check handling and reporting is required – to recordthe cheque collected, reminders for deposit, reporting

Check Control and monitoring on check receipt.

Multiple currencies usage For Imports and later on for Exports

Process to be addressed • Handling shipment shortages, discrepancy ofgoods, Insurance Claims against damage.

• Matching against advance or Debit note.

Budget and reporting Monthly reporting, YTD, With Budget, Actual, Prvyear

Net Outstanding Using AR and AP for same supplier under twoaccounts.

General Ledger Features Can unique transaction types be defined.

Describe the process required to close a period.

How does the system manage recurring entries.

How does the system manage reversal of previously posted entries.

Is there a facility to establish transaction validation / approval rules prior to posting. Does the system alert the users when journal entries are entered for periods other thanthe current one.

Does the system provide review / correction facility prior to posting.

Does the system keep a audit trial of changes to the budget.

How does the system provide the reporting of financial data at summary and detail level. Does the system include a custom report generator utility. If yes please explain ondelivered functionality.

What integrity reports (to check for inconsistent data and balances) does the system



provide.

Are all reports available to be viewed / print / download to Excel, acrobat, email.

Does the system allow for on-line inquiry based on cost centre, account, period. Explain indetail.

Can unique transaction types be defined.

Describe the process required to close a period.






How does the system provide the reporting of financial data at summary and detail level. Does the system include a custom report generator utility. If yes please explain ondelivered functionality.

What integrity reports (to check for inconsistent data and balances) does the systemprovide.

Are all reports available to be viewed / print / download to Excel, acrobat, email. Does the system allow for on-line inquiry based on cost centre, account, period. Explain indetail.






How does the system provide the reporting of financial data at summary and detail level.

Accounts Payable Does AP integrate with purchasing, GL, LC module.

What facilities are available to reconcile bank statement with payments made.

Does the system directly support letter of credit.

Does the system manage prepayments and advances to suppliers. Can the system be used to generate cheques and Payment vouchers. Please explain indetail the flow.

Can the system process vendor invoices in a foreign currency. Three ways of matching of P.O, vendor invoice, Receiving document before releasing toaccounts payable.

Accounts Receivable Integration with Sales & General ledger.

Give details of customer account number structure.

Are there facilities to reconcile bank statement with amounts received. Does the system manage relationship between specific customer invoice and the salesorder.

Customer information like grouped into channels / areas / territory / routes. Please explainhow many categories and sub categories can be created in customer master. i.e.customer classification.

Credit information: credit information, credit hold, credit rating. Customer information like last payment amount, last payment date, terms of payment,

YTD invoices and payments.



Invoice type credit / free

Multi page invoices.

Credit checking – credit limit check / look up credit limit while in order entry / authorizations for exceeding credit limits.

Allocation of payments to invoices based on FIFO, partial allocation, singlepayment against multiple invoices.

Does the system recognize duplicate invoice payments.

Does the system process unapplied payments.

Does the system manage invoice voiding process.

Are there any facilities to make receipt posting to periods other then the current one.

Fixed Assets Integrate with budget

Integrate with inventory

Integrate with AP / GL

Can assets be linked to specific GL accounts

Does the system post in summary mode. Where are the details maintained.

Can the system reconcile depreciation with GL balances.

Can assets be tracked thru support of bar-coding assets. Does the system print barcodes for assets.

Increase the value / life time of asset due to renovation etc.. Does the system maintain YTD, and accumulated depreciation for specific assets andfor categories of assets.

Can assets be categorized by company, department, division ,employee.

Does the system provide asset addition / retirement / disposal / sales / transfer / splits.

Can the system automatically compute gain and loss for disposed assets.

Can identical assets be grouped under one item number which represents quantity.

Does the system support straight line depreciation / units of production depreciation.

Can depreciation methods be altered during life of assets.

Can depreciation for shared assets be allocated to multiple entities such as division / departments.

Does the system have any integrity reporting to check posted amounts.

Letter Of Credit Integration with AP / Purchasing / GL

Record LC number / bank / currency / opening & expiry date /beneficiary / bank charges.

Open new LC

Open new LC by copying existing one

Renew /close /cancel LC



SALES

The sales process of IndustryOne is pretty straight forward as they are starting withtwo (2) customers and number of customer will not exceed 10 in near future. The finishedgoods are made as per standard specifications and labeled as per requirement ofcustomer.

The production is done based on the forecast provided by the customers, however toaddress surge and unforeseen situations IndustryOne plans to maintain safety stock for their customer.

The Shipping/ Logistic department is responsible for arranging deliveries to customers. Thecans are sold as per the annual contract which specifies the price, quantitycommitment and a monthly delivery schedule with a buffer of +/- percentage of monthlyquantity. The monthly order has to be confirmed two months in advance so as to adjustproduction schedule accordingly. Customer specific price list facility of ERP can addressthis requirement.

The contract is negotiated with customers and in some cases, provision is made fordiscount as

• A percentage of price for extra quantity if the customer buys more thanpredefined quantity.

• A cash discount if customer purchases specified quantity and pays in time.

From the Sales / Logisitic Management end following features are required.

• Can the system support customer specific price list.

• Can the system support regular sales order.

• Can multiple delivery schedules be defined.

• Is the system linked to Accounts receivable.

• Does the system allows applying credit control at different stages of salesprocess i.e order booking, invoicing and deliveries.

• Does the system check for post due Invoices while applying credit control.

• Does the system put the order on hold for exceeding credit limits and forward thesame thru proper approval.

• Can the system handle various levels of approvals in cases where exceedingcredit limits.

• Does the system display credit / collection history.

• Can the system generate order as a copy for a old order.

• Can the system track order change.

• Can an order be changed once gone thru an approval cycle.

• Can the system display available quantity in all warehouses. • Does the system provide facility for approving orders before they are processed.

• Can the system print gate pass at the security office with details of the product / quantities / vehicle number / driver details etc.

• Does the system support advance payments.

• Can an invoice be reprinted based on access control.

• Can the system track pallets issued to customers and their return back towarehouse.



PROCURMENT:

The procurement function needs to have tight integration with other module with on-lineprocessing capabilities and business partner collaboration capabilities which could beextended to our suppliers. The online processing capability must include document flow ,audit trial, approvals, business alerts and alarm features. Security has to be built into thedocument flow system to apply proper access and authorities to individuals in such away that only the document owner and subsequent approvers should access thedocument.

Procurement Cycle Requisition or Re order generation -> Quotation Request / Analysis -> Purchase Order ->Inspection -> Goods Receipt -> Liability Recording and Payment.

Purchase Requisition: A purchase requisition can be generated directly by a user who needs specific item orservice.

In cases where the reorder point of the inventory has arrived as a result of consumption

of Raw material or spares, a suggested order report will be generated. The suggestedorder is pulled into a purchase requisition.

The requisition has to be approved by relevant approving authority (supervisor/ manager), to be considered valid for further action.

Purchase requisition (after approval) is followed by

• Enquiry to Supplier -> Quotation - > Purchase Order

Purchase requisition doesn’t gener ate any financial entry.

A control w.r.t budget is required at this stage so that users know whether budget is

available for the items/ services requested. In case the budget is not available, the usermay be warned, and transaction is recorded. However at the time of approval theapproving authority must also be notified of budget availability status, management willdecide how such situations has to be handled by defining the business policies.

Fixed Asset purchases may also be initiated in this manner.

The purchase requisition has to be cloned for usage by various users of differentdepartments to address different needs. Each such clone may have different approvingauthority.

Based on the defined usage of each purchase requisition, a filter is required to limit user

so that he selects only valid items/ services, this facility ensures reduction in data entryerrors and separation of activities as per profile of employees. Example

• Requisition for consumable / expense items

• Requisition for capital purchases

• Requisition for Imports

A shipment advice recording facility is required to record arrival of shipment and notifyinternal staff so as to arrange clearance from customs.



Purchase agreements are in place for direct material used for production. Theagreements specify the quantity and price, are generally valid for a period of one year.System should be able to address this requirement.

The lead time is 3 months in case of steel.

There is a confirmation every month to major raw material suppliers for the quantities (ofsteel) to be delivered after 3 months. This raw material order is driven by sales forecastthat is provided by customers.

Procurement should be able to grade suppliers in terms of their organization & logisticsstrengths or past performance and commitment with IndustryOne assigned business etc. This is to serve an ISO requirement to have proper records of suppliers quality record.

There should also be a facility to link an item with suppliers and maintain purchasehistory of an item like price, quantity, landed cost etc.

System should also provide facility for

• Purchase order status – all open P.O's for an item & all open P.O's for a vendor.

• Item status w.r.t to PO showing Order, Delivered and Pending quantities. • Assistance in identifying purchase order based on

• Requisition status

• Item status indicating status in purchase cycle.

Vendor evaluation system based on:

• Price

• Delivery

• Quantity

• Leadtime

From the Procurement Management end following features are required.

• Collaboration capability with suppliers by internet.

• Can the system support credit purchase / cash purchase / repeat order / one timeorder / blanket P.O / Rush orders.

•

• Integration with AP /Inventory / Commitment Budgeting/ Financial Budgets

• Does the system warn the user to have exceeded budgets

• Can the system automatically generate suggested order based on inventorylevels that could be converted to Requisition & PO.

• Ability to monitor order status by system.

• Can the system generate enquiries to supplier.

• Can the system process P.O for stock items / non stock items / tool kits / servicesetc.

• Does the P.O maintain Enquiry number / vendor quotation number / shippingdate /credit terms /special delivery instructions / separate lines for discounts.

• Is there a flexibility in defining P.O / PR / Enquiry and its clones.

• Audit Log for all transactuions

o Printingo Editing

o Deletion • Can we print Arabic / English description P.O.



• Can system process vendor quotations / evaluate quotations based on prices, lead time, credit facilities.

• Can system facilitate generation of PO be prepared based on quotation.

• Can the system record validity dates for vendor quotation.

• Support for vendor contract pricing.

• Can the system generate order based on an old order.

• Can annotation be attached to Requisition/ PO / line items for display and printing.

• Can system allow hiding or protecting prices based on user security levels.

• Can purchase orders be closed manually.

• Can the system record and print both company and supplier codes on P.O

• Can lines on the same order have different shipping dates.

• Can a P.O be cancelled.

• Does the system provide a facility for approving PR's and P.O's at various levels before they are processed and printed.

• Can the system prevent modifying orders after they are approved.

• Can P.O and PR's be routed through a list of users for approvals based on their authority levels.

• Does the system allow inquiry / reminders on orders awaiting approval.

• Does the approval process prevent authorized users from viewing others PR's and P.O's

• Does the system allow rejection reason to the order.

• Can the system receive more quantities than in the P.O, how the tolerance is set and controlled?

• Can the system display P.O received and not yet processed for accounts.

• Can the system allow application of landed cost to receipts before / during the matching process.

• Can cost that are applied to the entire receipt or order be automatically be distributed to the items. If yes is thedistribution based on number of items or % value of total.

• Can the system report on items received versus invoices quantities for reconciliation.



INVENTORY: To broadly classify inventory is for Finish goods / Raw Material / Spares (Plant etc.) / consumables.

Material Request: The transaction is an internal transaction wherein different department ask for material, service internally. This transaction is followed by either Material / Service issuance or a Purchase requisition which triggers the purchase cycle. This transaction will be used torequest spares from engineering stores while maintenance jobs are carried out.

Material Request doesn’t generate any financial entry.

Finished goods store receives goods from Production. FG are classified by customer / packaging which forms an SKU (stockkeeping unit). All related reports for Finish Goods are in the standard unit of measure (PCS, 1000PCS, Pallets)

Standard costing method is applied to RM and Weighted average costing for all the items.

Other inventory features like batch control / lot control , Transfer out and in, Min / Max and reorder planning, physical count, Adjustment transactions etc. are anticipated from the inventory system.

Please provide sample of standard reports available in the system. Also attached please find a list of reports which are required fromthe application.

From the Inventory end please clarify the following:

• Beginning / ending balance reconciliation by item.

• Integration with purchasing / fixed assets/ production/ maintenance/ sales

• Multiple units of measures.

• ABC analysis

• Multiple UOM

• Min / max / re-order levels.

• Classification of Item master record.



• Can we track Finish goods inventory by Lot / Production date

• Can system display available quantities by warehouse and total.

• For physical counts can the system support cycle counts and on entering inventory produce a variance, and make anadjustment voucher automatically.

• Can system facilitate a random count cycle on an random basis for Inventory personnel to verify.

• Are the following transactions possible – stock issue / adjustment / receipt / write offs.

• Can warehouse transfers issue a automatic gate pass to be printed at the security gate for items shipped out for repair.

• Can adjustment be on quantity or value or both. How does adjustment affect GL. Please explain.

Manufacturing: Covering Production Planning & Scheduling / Capacity Planning

/ Bill of Material / Material Requirement planning / Quality Control Management.

Following is IndustryOne manufacturing processes.



1. Process F lows



M a n u f a c t u r in g P r oc e s s

Planning and Product ion Process

F o r e ca st & P

lann ing M a s t er P r o d u c t ion

S c hedule

M a t e r ia l R

equi r e m en t P

lanning

P r o d u c t ion S li p P r o d u c t i on

R e p o r t in g P r o d u c t ion O r de r

C on f ir m a t i on & F

i nanc ia l I n t eg r

at io n

( A ut om a t e d )

L a b o r T im e

s h e e t i n g



Function Mapping in ORION Sales Forecast Based on the Financial Budget & Previous period sales, User will enter sales forecast.

Yearly Sales forecast will be entered Product wise in the following sequence

⇒ Company Wise

⇒ Customer Wise

⇒ Product Wise Sales forecast will be entered month wise for the above sequence with quantity and value. This will be entered at starting of the financial year This will be used to get the raw material requirements based on the lead-time. Sales Forecast will be like a worksheet, User can amend the forecasted quantity. ABC will use this Sales forecast as template.

Master Production Schedule(MPS)

Using Forecasted Qty & Open orders system will generate one master production schedule for every week using this process.Planning calendar (Period) Can be one of the following as per the defined parameter: Monthly ⇒

Weekly ⇒

Daily ⇒

Twice in the month ⇒

Fortnight ⇒

Quarterly ⇒

User Defined ⇒

Thrice in a month⇒

Planning period will be set in the planning calendar master accordingly master production schedule (MPS) will get generated.CCMC will do the production planning weekly. CCMC will use MPS worksheet as template for raw material planning and opening production work orders.



Function Mapping in ORION Material Requirement Planning(MRP)

Based on the master production schedule, system will make material requirement planningconsidering following parameters:

Current stock in hand (Raw Material Store + Intermediate Store) ⇒

Goods in Transit ⇒

Pending Purchases orders ⇒

In material requirement planning worksheet, user will verify the details for all items and will beable to generate the suggested purchase requisition for the raw and packing material.

Production Order(Work Order)

Production Order will be prepared based on sales order (Make to Order)

Every Finished Good Item will have one default Production line, this Production line will beconsidered for the production work order. (User can change the Production line at the time ofpreparing the Production Order)

Every Finished Good Item will have one default Bill of Material (BOM), this BOM will beconsidered for the production work order. (User can change the BOM at the time of preparingthe Production Order)

Need date will be asked as an input parameter, user needs to enter the need date and systemwill consider that as need date. If input parameter is not entered, then system will consider need

date as system date.

Based on the Production order, user can get the details of raw material required at each stage.



Production Planning & Scheduling: Based on Customer Demand Forecastgenerated by Sales and Product availability (i.e. available SKU's in all the warehouses)production department plans their production schedule.

Capacity planning: Every activity in the production cycle has its own speed ratings.

These affect the other next processes. Therefore the line capacity will be narrowed downto the minimum speed activity. Based on such parameters the line capacity is formulatedand our production capacity is planned. For e.g. we may be having very high speed filletsbut the palletizing activity may be slow which can affect the over all speed of the line.

Bill of Material: for every SKU that we produce we have bill of material for that. Thesematerials can be water, sugar, concentrate, packing material etc.. Issues to productionare done on the formulation of the bill of materials.

Material Requirement Planning (MRP): the production department has a forecastand plan to produce. Based on the forecast & plan the ERP should be capable to checkthe availability of raw materials and packing materials and run a MRP.

Quality Control Management: Right from the receipt of raw material to every stageof production quality control department is involved. Based on passing certainparameters the QC department allows the processes to continue. They have formats inwhich they collect information and check against certain standards in order to release theproduct. QC department want these areas to be automated.

From the Manufacturing following is required: - User defined BOM codes for RAW Material, Packing Material, Finished

goods and WIP. - For production data can the system capture work centre data / work centre

hierarchy / machine data / department data. - Setup runtime cost should define for individual operations. Run time shouldbe defined as per unit or per batch or as units per hour.

- Variable setup machine cycle time standards, change over? (for eachfinished product a different routing can be used which may have differentmanufacturing times)

- Production Planning – should receive data from customer driven forecast. Asexplained earlier.

- Production plan with reference to target stock levels, target supply dates. - Interface with and transfer data to the Master production schedule. - Master Production Schedule can be for any or both of the environments i.e.

make to stock or make to order.

- Consider customer driven forecast as inputs during scheduling. - Available to promise – determine product availability of an item at any givenpoint of time.

- Integrate with Material requirement planning, capacity planning. - In the capacity planning can the system support work centre capacity profile

definitions. - Machine capacity definitions. - Capacity requirement planning to validate the MPS planned orders against

capacity available. - Can the system generate graphical representation of the above profiles. - Production scheduling – discrete manufacturing scheduling. - Scheduling preventive maintenance.

- Auto generate material request to support schedule.



- System must be capable of considering current inventory levels duringscheduling process.

- System must be capable of considering implications of changeover andmachine downtime.

- Reporting on downtime / efficiency & utilization. - Quality of finished goods per 1/2 hour to measure efficiency. - Can the system track work orders back to the customers for later quality

issues or market withdrawals. - Production material consumption data reject / scrap / wastages. - System should be able to calculate production efficiency levels based on

inputs and outputs. - System should be able to compare actual production data against projected

data. - System should be able to compare determine production levels relative to

standard set for the plant. - System should be capable of recommending levels of production by SKU

relative to order, capacities, inventory etc.. - MRP to integrate with Inventory/ Sales / Purchasing / Production /BOM /

Master production schedule.

- System must be capable of preparing an MRP schedule based on Raw Material inventories and sales forecast, considering lead time. - System needs to notify procurement that raw materials need to be purchased

when they are depleted to target levels. - Integrate with GL / Purchasing.



HRMS & Payroll:

Payroll and Personnel system will be implemented at IndustryOne. Following are the requirements of Payroll & Personnel. Vendors need to confirm availability of thefollowing functionality.

PERSONNEL

• Manpower Planning

• Advertisements

• CV's databse

• Interview process

• Recruitment process (Local & Overseas)

• Employment offer

• Appointment

• Creation of Employee

• Employee's Personnel Information

• Employee's Document Details

• Employee's Family Details

• Confirmation after Probation

• Promotions

• Transfers

• Change in Contract Types

• Business Travel Plan and Tracking

• Leave Planning & Vacations Schedules

• Vacation & Leave Application Process

• Leave Balances Tracking (i.e. Annual, Sick, Pilgrimage, Education, Maternity,Marriage, Death & others)

• Loans & Advances Tracking

• Training Plans & Updates

• Assets Tracking (held by employee)

• Appraisals & Performance review

• Employee Travel History

• Employee Promotion History

• Employee Increment History

• Maintain Historical Data on Resources for Ticket Purchases

• Disciplinary action details

• Visa issuance, usage & Tracking

• Administer Saudization Plans (recruitments, promotions, training & termination, resignation tracking)

• Employee Grades & Jobs Classifications

• Employee Rental & Accommodation Tracking

• Administer GOSI registration and deletions

• Bonus (Yearly & Historical)

• Reports and Document Prints as required by Public Relation and HR function



PAYROLL

• Regular Payroll (English & Arabic format)

• Adjustment Payroll

• Payment by Cash / Cheque / Bank

• Bank Advice letters – as per required format.

• Regular & Leave Pay slip • Salary Change effective any date and due to promotions/ transfers/

demotions/ contract types

• Maintain Salary History

• Payment Monthly Basis

• Define various Allowance i.e.. Housing, Transport, Food etc.

• Define applicable deductions i.e.. GOSI, telephone, advances

• Integration provision with Time and Attendance system

• Overtime as applicable with Saudi Labor Law

• Leave Salary Payment thru payroll system

• Leave accruals

• End of Service accruals, calculations and payments • Recording and tracking, advances and loans deduction.

• History of Advances and loans.

• Different report formats for all above functions

Following points should also be checked w.r.t Payroll & personnel.

• Interface to GL /Accounts receivable.

• Ability to process payroll according to Saudi labor law.

• Can the system identify the user who entered a particular transaction.

• Can the system schedule / auto release recurring payments such as housingetc..

• Can the system process normal monthly payroll / accrual payroll (end ofservice, vacation, housing etc..) / settlement payroll (vacation / mid term / endof service settlements).

• Employee basic info / department / family info / document info with expiries.

• Employee time & attendance tracking / time sheet entry / active inactivestatus.

• Employee contract information.

• Overtime entitlement.

• Benefits – salary / OT / housing / vacation / car / fuel etc..

• Periodic vacation entitlement and Leave tracking.

• Track sick leave pay according to Saudi labor law.

• Auto installments calculations, holding deductions for a period. • Promotions and raises history.

• Hijrah date for document tracking

erp requirment

Documents