© 2013 KPIT Cummins Infosystems Limited

Report out ofChemical Division

Preplanning Exercise

6th Aug 2013

2

AgendaExpectations of Chemical Division from Oracle EBS Implementation

Challenges with the existing Oracle foot print within Thermax

Recommendations from KPIT

Option1: Implement on 11i with Existing COA & Org Structure and Re-implement on R12

Option2: Implement on 11i with new COA& Org Structure & Upgrade to R12

Option3: Implementation on R12 with New Org Structure

Next Steps

Expectations of Chemical Division from Oracle EBS Implementation

Expectations from Chemical Divisions

4

• Integrated system which can handle increased number of

transactions is required

Purchasing, Inventory, Shipping transactions , AP Invoices and

AR invoices are in Baan

Vendor Payments and Customer Receipts are in Oracle

Fixed Assets, Cash Management are out of system

• System should be able to cater to additional manufacturing

locations

• Division wise, BU wise P&L and Balance sheet is required

• System support for material planning is required

• Quality results data entry should be simplified

• R&D operations should also be covered in the system

• Material procurement

• Quality inspection and Results

5

Mapping of Chemical Division Requirements on R12

Microsoft Excel Worksheet

Challenges with the existing Oracle foot print within Thermax

Challenges with the existing Oracle foot print within Thermax

7

• COA Structure and Org structure is not suitable for PU wise

Trail Balance

• India Localization setup is not suitable for filing various

returns of Thermax

• Thermax is already on extended support of Rel 11i

Recommended Options from KPIT

Considerations for Alternate Approaches for Implementation

9

• Thermax has various pain points around financial

reporting and India Localization

• COA Structure and Org Structure must be redesigned to

address these pain points

• Restructuring is possible only with reimplementation

• Thermax is already on extended support of 11i

Reimplementation as well as upgrade to R12 is a must for Thermax

10

Pros Cons

Faster implementation – no need

to have COA & Org Structure

design phase

Benefits of financial reporting, and

India Localization will not be available

even after implementation

There could be major Oracle support

challenges during implementation and

post implementation period

Users will be subject to two major

transitions in short period

Lot of duplicate efforts will be involved

towards testing and customization

development

Reporting for overlapping period will

be difficult – 3 systems need to be

referred to

Alternative 1: Implement on 11i with Existing COA & Org Structure and Re-implement on R12

11

Pros Cons

Benefits of financial reporting, and

India Localization will not be

available even after

implementation

There could be major Oracle support

challenges during implementation

and post implementation period

Users will be subject to two major

transitions in short period

Lot of duplicate efforts will be

involved towards testing and

customization development

Separate 11i instance will have to

be created

Reporting for overlapping period will

be difficult – 3 systems need to be

referred to

Alternative2: Implement on 11i with new COA& Org Structure & Upgrade to R12

12

Pros Cons

Benefits of financial reporting,

and India Localization will start

coming immediately after

implementation

11i and R12 instance will coexist

till the time other divisions

upgrade to R12

Oracle support will be

guaranteed during

implementation

Interfaces for financial reporting

may be required till the time other

divisions adopt new COA structure

Users will not face challenges of

multiple transitions

Alternative3: Implementation on R12 with New Org Structure

KPIT Recommends This Approach

Option1: Implement on 11i with Existing COA & Org Structure and Re-implement on R12

Alternative 1: Implement on 11i with Existing COA & Org Structure and Re-implement on R12

14

Design Org

Structure for

Chemical Division

with existing

COA

Setup New OU, Plants,

Warehouses for

Chemical Division

Create MAC

rules for OPM

Costing

Develop CEMLI

components

Test, create

SR, resolve issues

Migrate Masters -

items, formula, Recipe,

etc.

Migrate open

transactionsGo Live

of Chemical Division

on existing

11i

Design new COA

& Org Structure

Install R12

instance

Setup new COA

& Org Structure

for Chemical DivisionCreate

SLA rules for OPM costing

Modify CEMLI

components

Test, create

SR, resolve issuesMigrate

masters & open

transactions

Go Live on R12

Setup other

Divisions on R12

Migrate Masters

Migrate Transacti

ons

Go Live of Other Divisions on R12

Duplicate Steps

Option2: Implement on 11i with new COA& Org Structure & Upgrade to R12

Alternative2: Implement on 11i with new COA& Org Structure & Upgrade to R12

16

Design new

COA & Org

Structure

Create separat

e instance

of 11i

Setup COA, SOB

Setup plants,

warehouses

Setup MAC

rules for costing

Develop CEMLI

components

Test, create

SR, resolve issues

Migrate masters – items, formula, recipe,

etc.

Migrate open

transactions

Go Live on 11i

Create org

structure in 11iRun pre

upgrade checks

and steps

Modify CEMLI

Components

Run R12 upgrade scripts

Create SLA

rules for costing

Test, create

SR, resolve issues

Go Live on R12

Setup org

structure for other

divisions

Migrate masters

, transact

ions

Go Live for

other division

s

Duplicate Steps

Option3: Implementation on R12 with New Org Structure

Alternative3: Implementation on R12 with New Org Structure

18

Design New COA & Org structure

Create new R12 instance

Setup COA, ledgers and org structure

Setup SLA rules for costing

Develop CEMLI

components

Test, create SR, resolve

issues

Migrate masters – items, formula,

recipe, etc.

Migrate open transactions

Go Live on R12

Setup org structure for

other divisions

Migrate masters and open

transactions

Go Live for other

divisions

KPIT Recommends This Approach

Thank You