Case Study – Textile/Manufacturing (ECC Implementation)

Customer Profile

The customer for this case study belongs to the Yarn Manufacturing Industry. The total capacity of around 16000 MTPA. Customer consists of installation of multiple ring frames with multiple spindles along with TFO twisting machines. Project also includes blow room lines, blend mat, cards, breaker d/f, finisher d/f, comber, unilap, speed frames amongst others.

Business Need

The parent company was using SAP for business operation recording. They decided to implement SAP. We have audited the current SAP system there was not much process mapped and implemented for business to run on SAP. For the business growth there was no longer providing the necessary integration of different department of Organization and process mapping to run their business effectively.

Having SAP they were not getting Real time Information and data needed for any business decision. The company was using parallel paper base model and manual data recording for operating and managing their day to day business operation which cause data inaccuracies, repetition of work

After initial Audit from VSD and recommendation was provided for reimplementation of SAP as per the new identified business processes. This Reimplementation was focused on paper less business process and standardization of processes and integration across different department. This also provides real time visibility & control without manual intervention and also compliant with all regulatory needs like GST and Withholding Tax.

Then Customer has decided to go with the SAP re-implementation as per VSD’s proposal who addresses their Business needs as well as provided a platform for them to collaborate and perform proactive analysis. Where they can align their all business process like their parent company into SAP as main Source of truth system for all operation and transaction.

Project Scope

End-to-end implementation of SAP for a Business process, including the following:

  • Finance & Controlling (FI/CO)
    • Organization structure, Acc. Payable & Receivable, G/L, Chart of Account, Chart of Depreciation, Financial Statement & INDAS, Cost Accounting, Profit Center Accounting, Internal Order (CO), Distribution structure (CO).
  • Material Management (MM)
    • Procure to Pay cycle , Inventory Management , Vendor Evaluation , Workflow for Multi-level Release strategy for PO, PR & Contract
  • Sales & Distribution (SD)
    • Customer Master, Pricing, Sales Order, Delivery, Invoice, Proforma Invoice, Custom Invoice, Batch Management, Job Work, Sample Sales.
  • GST (Goods & Services Tax )
    • GST & Withholding Tax (TDS & TCS)

Challenges

This customer ran their current business operation using a SAP ECC, while the model did not worked fairly in the past after initial implementation; the model was not sustainable considering on external intervention for regulation, audit and compliance outside of SAP. The lack of standardize process lead to data inconsistence and audit noncompliance.

The main issue of using other software not getting proper process mapping into SAP and reports as per requirement and majorly it’s not proper authorize control and it best possible for data manipulation.

VSD Technology understood the customer challenge and as per requirement, for that it recommended the Re-implementation of standard SAP.

The major challenge was customer has unknown about the how to use the SAP process structure as per the textile configuration especially in User Acceptances Testing, So VSD team gave proper training to understand the SAP and process as well into integration manner.

VSD technology tackles this challenge by working with customer leadership team to introduce a Change Management Strategy that focused on the relationship between people, processes, and systems. It ensured all stakeholders understood the benefit of business process standardized and accept the purpose of the re-implementing the SAP system.

VSD Technology team gave user manual after all process mapped successfully to customer for execution the different process related transaction and update in the user manual, so that customer will get confident about how to use the SAP.

In Integration testing will compile the cross module consultant with respective users; we run the integrated transaction with FI, MM, SD and ABAP.

In cutover activity finance transactional data was uploaded from legacy to SAP and reconcile the given data with SAP, as checked in unit testing system and QAS system. After getting confirmation from the user upload the data in PRD system.

After Go-Live VSD team supported on daily basis, as the system new from the customer we will guide to run the transactions and solve the issues on priority basis.

VSD Technology done the new reports as per business requirement, for that it’s easy for customer to take management decision with help of reports.

VSD Implementation Process

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

  • Audit of already implemented SAP system
  • Submitting Audit report with key areas of change and improvement into SAP
  • Kick off meeting with all HOD’s, and SME’s.
  • Understand AS-IS process from Business and current SAP System
  • Fit –Gap Analysis
  • Define TO-BE process
  • Identify WRICEF objects development
  • Collecting & Validating Master & Transaction data with templates provided by VSD
  • Unit Testing
  • SIT
  • UAT
  • Cutover Activity
  • Go-Live and Support

VSD Implementation Process

By using a team of experienced consultants with cross-functional experience in multiple modules, a VSD technology was able to deliver a high-quality standard Re-implementation in 4 months with minimal post Go-Live support.

After Successful Re-implementation customer was using SAP for all their Master, Transactional and Operational process. It’s been Re-implemented in a way that the customer does not need to run any other software parallel with New SAP. All MIS has been cover at time of Re-Implementation of SAP.

VSD technologies believes it is important to have experienced consultants who not just understand specific SAP modules, but also how the module would meet various customer requirement and integrate with other modules. Business interruption on Go-Live was minimal considering the well-executed Change Management strategy. Within 1 month, the customer team has developed a new routine in their everyday business processes now after their New SAP re-implementation.

sap abap for hana development guide