BOOST YOUR CORPORATE PLANNING PROCESS AND COMPLIANCE cenitCONNECT APM – Advanced Process Management For Planning Processes
SBN KONFERANSEN 2013, GARDERMOEN, OCTOBER 22 -24, 2013
HORST JÜRGEN HOLLMANN, CENIT AG, STUTTGART, GERMANY
AIRPORT PLANNING & ACTIVITY CONTROL IN MANY ASPECTS IS VERY SIMILAR TO
CORPORATE PLANNING PROCESSES: COMPLEXITY AND EXACTNESS MANY PARTIES WITH INDIVIDUAL RESPONSIBILITIES REPETITIVE SCHEDULES FLEXIBILITY UPON SHORT TIME CHANGES DOCUMENTATION
Country A1 Plant A1.1
Plant A1.2
REGION B Country A3
Country A2 Plant A1.3
Plant A2.1
Plant A2.2
Plant A3.1
Country B1 Plant B1.1
Plant B1.2
Country B2 Plant B2.1
Supplementary Documents / SAP – Objects / External Information
Process per Level
Prepare
Plan
Revise / Release
Communicate
Control / Report
Cycle 1 … Cycle n
Global
Backbone
Team Members
Departments
R&D
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Procurement & Logistics
Production & Quality
Marketing & Sales
Finance, HR & Controlling
AUTOMATION
REGION A
Corporate Levels
COLLABORATION
CONSOLIDATION
Corporation
INTEGRATION
PROCESS CONTROLLED CORPORATE PLANNING USING cenitCONNECT APM : YOUR PLANNING PROCESS AS AN INDIVIDUAL SAP-OBJECT – AT ANY CORPORATE LEVEL – LOSELY COUPLED - TRANSPARENT
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cenitCONNECT APM – Advanced Process Management for Planning Processes
SAP-BASED ADD-ON-SOLUTION for CROSS FUNCTIONAL PROCESS- and ACTIVITY CONTROL -
STANDARDIZED
and
FLEXIBLY EXTENDABLE EVEN WITHIN THE RUNNING PROCESS
USE CASE : CORPORATE PLANNING
cenitCONNECT APM (ADVANCED PROCESS MANAGEMENT) – Process- und Activity Control in diverse Corporate Areas e.g. Finance & Controlling: cenitCONNECT APM Structured & Transparent Control of your CORPORATE PLANNING PROCESSES: Quarterly / Budget / Strategic 3-5 . cenitCONNECT APM Repetitive & documented Operative & Planning Processes within Financial Accounting: Dunning and subsequent process steps, Daily Cash-Management Project Planning and Tracking (within but not exclusively FI and CO) Complex Invoice Processing – from order recording to book entry in FI/CO, esp. for the handling of special / individual / complex projects and/or contracts © CENIT AG
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USE CASE : CORPORATE PLANNING
Your MAJOR BENEFITS:
Clear definition of defaults for process based operations
Transparency and Documentation, including short term adaptations of the respective processes (also across the entire term of a process and including potential changes of responsibilities)
Strong support to meet Compliance Requirements
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Typical Phases of a Corporate Planning Process Using cenitCONNECT APM you can easily handle the entire process or just parts of it … • Maintenance of MASTER DATA • Maintenance of PRIMARY REQUIREMENTS / SALES PLAN / SCHEDULES • Material Requirements Planning / MRP-Run • Investments / CAPEX Planning / CAPITAL BUDGET • Generation of Cost Rates • Cost Calculation / Costing • Cost Center Planning / Scheduling • Profit and Loss ( P&L) Planning / Scheduling • Balance Sheet Planning / Scheduling • Liquidity Planning / Scheduling • Finalisation of corporate planning process – Communication / Corrective Action
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Typical View upon a Planning Process Many Plannung Phases have to be coordinated, very often using E-Mail oder direct calls – Your Advantage using cenitCONNECT APM : All Prozess Phases AT A GLANCE
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Example: View upon Repetitive Flight Scheduling Process – Phase: MASTER DATA MAINTENANCE Areas from which MASTER DATA come into the Planning Process are a.o.:
Airfield Management
Asset- and Plant MaintenanceManagement
SecurityManagement
Weather Forecasts
Repetitive Airline Flight Time Tables
Check Lists & Documentation
Flight Scheduling
HR-Management
Catering Fueling
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Example: Corporate View upon Planning Process – Phase: MASTER DATA MAINTENANCE Areas from which MASTER DATA come into the Planning Process are a.o.:
Production and Logistics
Asset- and Plant MaintenanceManagement
QualityManagement
Research & Development
Sales & Marketing
Controlling & Finance
Corporate Planning
HR-Management
Customer- and Supplier Management
Purchasing & Procurement
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Corporate View upon Planning Process – Phase: MASTER DATA MAINTENANCE Numerous Departments have to be incorporated, Special requirements appear – Your Advantage using cenitCONNECT APM : Predefined Process Structure – flexibly extendable
Serial and parallel sequence of Activities, Templated based, Extendable during running process according to existing rights from USER PROFILE.
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Corporate View upon Planning Process – Phase: MAINTENANCE OF PRIMARY REQUIREMENTS / SALES PLAN / SCHEDULES • Review Customer Order Data • Review midterm, longterm and strategic planning data according to agreed scenario • Abstimmung with market analysis information (e. g. OEM Build Rates within Automotive / Market Sueveys, etc.)
Maintain Customer Order Data
Maintain Midterm, Longterm and Strategic Planning Data
Planned Primary Requirements Cross Check with data from Market Analysis
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Corporate View upon Planning Process – Phase: MAINTENANCE OF PRIMARY REQUIREMENTS / SALES PLAN Planning Information from Customers, from Marktet Analysis and from Internal Strategic Directions – Your Advantage using cenitCONNECT APM : Any Information used AT A GLANCE Provide initial information within the process; Link planning results to the process; Add Documents and Notes within the Process; Progress and Results being documented; Transparencv & Traceability => COMPLIANCE
Agents / Teams also from Templates
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Corporate View upon Planning Process – Phase: MATERIAL REQUIREMENTS PLANNING / MRP-RUN (Example) • Define Evaluation Period • Validate essential requirements and activities for Evaluation Period / Release current Quantity Base für Evaluation Period • Analyse MRP-Run • Initiate further activities / revisions and subsequent Phases (e.g. Calculation Run)
Define Evaluation Period
Validate Requirements
Subsequent Activities
Analyse MRP-Run
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Corporate View upon Planning Process – Phase: MATERIAL REQUIREMENTS PLANNING / MRP-RUN THE central activity and platform for any further evaluation – MULTIPLE ITERATIONS occur – Your Advantage using cenitCONNECT APM : Iteration by simply inserting Templates
Evaluation of the MRP-Run often implicates a revision of the initial data. Required process activities can be inserted on demand and flexible - multiple and Template based.
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Corporate View upon Planning Process – Phase: CAPITAL BUDGETING (Example) • Profitability Analysis for new / changed products have been performed - usually by FI/CO as part of products‘ PLM cycles (perhaps using a dedicated cenitCONNECT APM Process as well).
• Upon profitability of Investment Projects: Simulation of their impact upon Profitability Planning. • Incorporation of all scheduled Investments per Organizational Unit into Investment Program. • Aggregation of required funds through Central Planning Coordination, release of Budget Version, Distribution of Budget through Central Investment Planning Instance. • Distribution of the Budgets throughout the subsequent organisational areas by the Department Heads and Request for Corrective Actions to be taken.
Profitability Analysis by FI/CO or as part of respective PLM Cycles
Distribution of Investment Budget throughout the organisation / Corrective Action
Simulation of Impact upon Profitability Planning
Consolidation of Investment Activities
Aggregation of Investment Plan, Distribution of Investments to Departments
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Corporate View upon Planning Process – Phase: CAPITAL BUDGETING (Example) Numerous Departments have to be coordinated – very often by E-Mail or directly – Your Advantage using cenitCONNECT APM : Integration of all Participants & Documents Specification of Planning Formates / Planning Comments / Checklists Documentation of Investment Plans of Departments within the process Documentation of Profitability Analysis within the process if applicable Integration of Specifying Documentation into the process Integration of Comments / Notes / Exemption- and Release Informationen
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Corporate View upon Planning Process – Phase: GENERATION OF COST RATES (Example) • Revision of Cost Objects / Products / etc. and creation of new ones if required. • Creation of new Activity Types for Machine-hour Cost, Labour Cost, Room/Working Space Cost, etc. in conjunction with the respective Measuring Unit (h, m2, etc.) in order to create Cost Rates. Revision and recalculation (if applicable) of existing Activity Types. • Verification of correct assignment of Activity Types & Cost Rates to the Cost Centers.
Revision / Creation of Cost Objects
Cross check of existing and set up of new Acticity Types Revision of Cost Rates.
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Revision & correction of correct assignment of Activity Types to Cost Centers.
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Corporate View upon Planning Process – Phase: GENERATION OF COST RATES (Example) This is the essential Basis for Calculation and for the subsequent Calculation Runs – Your Advantage using cenitCONNECT APM : Documented Basis for your Compliance Processing specifications / Checklists Flexible Insert of additional tasks in case of unexpected requirements; Documentation of the results Repetitive Cycles if necesssary.
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Corporate View upon Planning Process – Phase: COST CALCULATION (Example) 1. Selection of Material Range within Product Costing; 2. Start Calculation Run;
3. Evaluation of the results of the Calculation Run; 4. Release oder next cycle after corrective action.
1. Selection of Material Range within Product Costing
4. Release or new cycle after corrective action
2. Calculation Run
3. Evaluation of the results of Calculation Run
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Corporate View upon Planning Process – Phase: COST CALCULATION (Example) The deciding basis for your VALUATION – Your Advantage using cenitCONNECT APM :
Documented Basics for your Compliance Automated E-Mail-Information Notes Checklists Objekt Links Automated subsequent functions Transaktion Calls Release function – incl. comment Milestones
After first Analysis very often at least one more Calculation Run.
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Corporate View upon Planning Process – Phase: COST CENTER PLANNING/SCHEDULING (Example) • Planning of Cost Drivers for External Services and of manually fixed rates for internal Service Charging • Planning of Primary Costs / Secondary Costs • Analysis of Planning Results (possibly to be delivered into subsequent tools / systems) • Optional: Return of Planning Data into the operational Cost Center Accounting system
Cost Center Manager
Central Controlling
Administrator
Manually Fixed („political“) Rates Cost Drivers Consumption
Kost Drivers Pricing Cost Drivers / Primary Costs
Secondary Costs
Secondary Costs
Capacity Planning
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Corporate View upon Planning Process – Phase: COST CENTER PLANNING/SCHEDULING (Example) Coordination of numerous responsible people within the company – often via E-Mail und directly – Your Advantage using cenitCONNECT APM : Structured Overview with homogenious Documentation
Durchführungshinweise / Checklisten Dokumentation der Planungsergebnisse Mehrfacher Durchlauf bei Bedarf.
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Corporate View upon Planning Process – Phase: COST CENTER PLANNING/SCHEDULING (Example) Example for a Task with Approval- / Release-Function including Comment . Your Advantage using cenitCONNECT APM: Traceable & Reasonable Decisions AT ANY TIME !
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Corporate View upon Planning Process – Phase: P/L PLANNING & BALANCE SHEET PLANNING (Example)
The following figures (a.o.) should be Fixed / Released to be entered into your Corporate Budget Planning: • Revenues from SALES BUDGET, • Costs from COST PLANNING, • Depreciation from the SCHEDULE of DEPRECIATIONS. • Regarding branch and enterprise model, INVENTORY ADJUSTMENTS may have to be scheduled for SEMI-FINISHED PRODUCTS and FINISHED PRODUCTS. • Increased or decreased STOCK LEVEL, subject to changes in the sales trend.
• Recording of CAPITALIZED COSTS, e.g. company-produced additions to plant and equipment. • Revision of CREDIT POSITION; could be changed regarding planned capital investments, gain or loss on disposal of assets, and regarding the sales trend. Calculation of the expected interest payments for credits. • TAXES • Accumulated benefit and deficit • Dissolution of reserves
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Corporate View upon Planning Process – Phase: P/L PLANNING & BALANCE SHEET PLANNING (Example) Numerous Planning Components interact with each other Your Advantage using cenitCONNECT APM: Flexible, documented integration of all Planning Basics
Supports the fulfilment of your COMPLIANCE REQUIREMENTS: Transparency Completeness Documentation
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Corporate View upon Planning Process – Phase: LIQUIDITY PLANNING (Overview)
Cash-Management (CM)
Financial Accounting (FI)
A/P - & A/R - Accounting
Liquidity Planning
Payment Schemes
Purchasing (MM)
Sales (SD)
Procurement Oders
Customer Orders
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Corporate View upon Planning Process – Phase: LIQUIDITY PLANNING (Examples for activities) • Planned INCOMING PAYMENTS (from A/R-Accounting / SALES Budget) FROM CONTINUOUS BUSINESS ACTIVITY FROM SALES OF FIXED ASSETS RELATING TO FINANCIAL TRANSACTIONS/AFFAIRS RELATING TO PROJECTS
• Planned OUTGOING PAYMENTS (from A/P-Accounting / PURCHASING Budget / CAPEX Budget) FROM CONTINUOUS BUSINESS ACTIVITY FROM INVESTMENTS AND THEIR FINANCING RELATING TO FINANCIAL TRANSACTIONS/AFFAIRS RELATING TO PROJECTS
• Recording money holdings/cash of previous period. • Evaluation of debit balance or underfunding/deficit • Recording of corrective measures & actions relating to debit balance, respectively relating to underfunding/deficit • Planned Money holding /Cash at the end o the planning period can be one of the essential release steps for the entire planning cycle. 28
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Corporate View upon Planning Process – Phase: LIQUIDITY PLANNING (Examples) Numerous INPUT VALUES apply for your Corporation respectively for your Planning Level Your Advantage using cenitCONNECT APM: Flexible, documented integration of all Planning Basics
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Corporate View upon Planning Process – Phase: FINALISATION OF CORPORATE PLANNING PROCESS (Example) Communication of BUDGET ALLOWANCES to Business Units and Departments:
Production and Logistics
Asset- and Plant MaintenanceManagement QualityManagement
Research & Development
Corporate Planning
HR-Management
Sales & Marketing
Controlling & Finance
Customer- and Supplier Management Purchasing & Procurement
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Corporate View upon Planning Process – Phase:FINALISATION OF CORPORATE PLANNING PROCESS (Example)
Planning results have to be communicated within the Enterprise – Commitments are requiredYour Advantage using cenitCONNECT APM : Consistent Communication & documented Commitments
Definition of detailed Budgets Communication to Budget Holders Request for Commitments including individual comments / notes
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CORPORATE PLANNING PROCESSES with cenitCONNECT APM – BENEFITS for your Enterprise: Reflect your processes optimized within your SAP-Environment;
Organize your processes clearly, Corporate-wide consistent & coherently structured; Involve & Integrate Planning Units not (yet) operating within your SAP-System; AVOID uncoordinated E-Mail-Communication and uncoordinated filing of information;
Support Compliance Requirements – Secure Corporate Intellectual Property; Focus upon Deadlines; Use Automated Reminder Function (e.g. Yellow-Phase of a Milestone);
Process Ownership directly within Departmens upon your choice – quickly react upon changes (thus taking load from internal IT-Department); Quickly und consistently involve and integrate NEW BUSINESS UNITS into your Planning Processes;
Quickly und consistently involve and integrate NEW TEAM MEMBERS into your Planning Processes; Track & Trace your Corporate Planning Process incl. related information any time. © CENIT AG
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FIGURES & FACTS Stuttgart (HQ) - Berlin - Ratingen - Frankfurt - München - Hamburg - Hannover - Oelsnitz - Saarbrücken
Iaşi
Toulouse Tokio Auburn Hills (MI)
Effretikon
Revenue 2012 € 118,85 Mio. (+ 10,2%)
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EBITDA 2012 € 11,04 Mio.
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ANOTHER USE CASE: PROCESS ORIENTED PLM cenitCONNECT APM within your Engineering Change Management
Order
ChangeRequest Change-
Order
Materialdocments
Release Activity
Corporate Workflows
Procurement
Customer Maintenance Shipping
Release BoM
Productin
Design Release ECO
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Classification DMU
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Release Digital Manufacturing
Virtual Product Modelling & Digital Manufacturing
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DMU
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SAP PROCESS SERVICE & SOFTWARE WWW.CENIT.DE
BOOST YOUR CORPORATE PLANNING PROCESS AND COMPLIANCE
AND LET YOUR ENTERPRISE LIFT-OFF
TO SUCCESS
with cenitCONNECT APM – Advanced Process Management for Planning Processes
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FORWARD LOOKING STATEMENT This presentation outlines our general product direction and should not be relied on in making a purchase decision. This presentation is not subject to your license agreement or any other agreement with CENIT. CENIT has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. This presentation and CENIT's strategy and possible future developments are subject to change and may be changed by CENIT at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. CENIT assumes no responsibility for errors or omissions in this document, except if such damages were caused by CENIT intentionally or grossly negligent. Please note that this document is subject to change and may be changed by CENIT at any time without notice.
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THANK YOU VERY MUCH FOR YOUR ATTENTION!
WE APPRECIATE TO CONTINUE OUR DIALOGUE !
COPYRIGHT CENIT AG // WWW.CENIT.DE
16.07.2013
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