|

Case Study – Engineering & Construction (Support On-Site)

Customer Profile

Client has an expertise of over 6 decades in infrastructure construction. They have executed the project in infrastructure sectors like power, highways, irrigation, bridges & flyovers, maritime and industrial construction. Their group consist of multiple legal entities. The group is having two different production facilities with different kind of products

  • Phenix Construction: This production unit is carrying out the production of PEB (Pre-engineered Buildings), ROB (Railway over bridges) and Heavy steel Structures (Ex. Hot rolled Structure).
  • Proflex Systems: Proflex is having expertise in the production and erecting of self-supported roof all over India.

Business Need

Many organizations have moved from stand‐alone business information systems applications to integrated enterprise‐wide systems, enterprise resource planning (ERP). The implementation of ERP packages has created an opportunity to re‐engineer business processes within and beyond the organizational scope.

As the company grew, it got to the point where the legacy systems were no longer providing the necessary visibility to effectively run their business. Too many different systems were used to manage the various processes, and these systems were not integrated with each other. This led to contradicting data sets, and inaccuracies in inventory, financial statements, as well as controlling and profitability analysis.

SAP S/4 HANA with BI/BO was proposed to the client which address their Business needs as well as provided a platform for them to collaborate and perform proactive analysis.

Project Scope

End-to-end implementation of SAP S/4 HANA 1610 for a Business process, including the following:

  • Finance & Controlling (FI/CO)
    • Organization structure, Acc. Payable & Receivable ,G/L, Chart of Account, BCS(Budget control system), Trial Balance, Balance sheet, Asset Accounting
  • Material Management (MM)
    • Procure to Pay cycle W.r.t Project , Inventory Management , Release strategy for PO, PR & Contract, Weigh Bridge, project based services, Dunning system for PO Creation ,Release, import ,Job work, Quotation comparison
  • Project System (PS)
    • Project based Procurement Plan, Production plan, Budget Approval, Scheduling, Milestone based billing
    • Project Structure(WBS, Network, Activity)
    • Approval for project
  • Production Planning & Quality Management (PPQM)
    • Discrete Manufacturing
    • Project based Scheduling
    • Batch Management
    • Variances in material consumption & Cost
  • Sales & Distribution (SD)
    • Customer Master, Pricing, Sales Order Processing
    • Milestone billing, Periodic Billing
  • GST (Goods & Services Tax )
    • GST & Withholding Tax, TCS

Challenges

VSD Technology understood the customer business domain and recommended the implementation of standard SAP S/4 HANA with BI/BO

Following were Major Challenges Module wise

  • Production planning & Quality management (PPQM)
    • BAPI For mass upload of BOM for WBS
    • BAPI for mass upload of routing for WBS
    • MRP Live for WBS
    • Scrap Generated for WBS
    • Operation wise Production Report along with its Backlog Details
    • Target setting for Each Operation
    • In Process inspection mandatory for production order
    • MIS Report for Production & Dispatch.
  • Project System (PS)
    • Upload Material Master (SKU) Project wise along with its technical specification & attach its Document (Drawings, Templates)
    • Various Design drawings of Product with its Change record should be updated in project no (Version, Revision) without ECM (Engineering Change Management).
    • Maintain Project wise Paint consumption Report with respect to Planned Consumption.
    • Mass upload of data against Network
  • Material Management
    • Purchase Register
    • Auto mail for PO Release
    • Direct Weigh Bridge Integration into SAP
    • Stock Ageing Report
  • Sales & Distribution
    • Sales Register
    • Freight Report
    • Ageing Report
    • Weigh Bridge
    • Ledger statement
  • Finance & Controlling
    • GSTR1
    • Project based actual costing & it’s Profitability
    • Bank Cash flow
    • Site Expense Report

VSD Implementation Process

The following is a brief synopsis of VSD Consulting’s implementation process:

  • Identify WRICEF objects
  • Collecting & Validating Master & Transaction data with templates provided by VSD.
  • Unit Testing
  • SIT
  • UAT
  • Cutover Activity
  • Go-Live and Support

VSD Implementation Process

By understanding their business operations & domain with a team of experienced consultants with cross-functional experience in multiple modules, a VSD technology was able to deliver a high-quality standard implementation in 8 months with post Go-Live support. VSD technologies believes it is important to understand Business Operations & Analytics of the client who does not just want specific SAP Transactions, but also Need in depth analysis(Predictive & prescriptive) for better productivity & Business Growth. Business interruption on Go-Live was minimal considering the well-executed Change Management strategy. Within 4 weeks, the customer team has developed a new routine in their everyday business processes.

Following were the key results that were appraised by customer

  • Scrap Percentage Report project wise.
  • Daily Production & Dispatch report.
  • Customer & Vendor ageing
  • Plan vs Actual Production report
  • Sales & Purchase register
  • DMS (Document Management System)
  • Improvement of System performance