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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© CENIT AG

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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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

EBoM Design

Classification DMU

FEASIBILITYSTUDY

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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