Enterprise Architecture

Reliance Industries Limited

(Procurement Supply Chain in Petroleum Industry)
Under the guidance of

Prof. Somnath Roy

BY: GROUP 7
SNEHA ANIL – B007
ARINDAM BOSE – B017
HARSH HEMANI – B027
VATSALA KRISHNA – B036
SHREYA PRAKASH – B045
PRIYANKA SHARMA – B054
 CONTENTS

INTRODUCTION .............................................................................................................................. 2
INDUSTRY BACKGROUND ..................................................................................................... 2
CONNECTING REAL WORLD BUSINESS TO DIGITAL PROCESS ................................................... 3
Business flowchart ..................................................................................................................... 3
DESIGNING the Core Diagram................................................................................................ 4
Conceptualizing the Enterprise basis an industry standard framework ............................... 4
......................................................................................................................................................... 6
Conclusion..................................................................................................................................... 6
References..................................................................................................................................... 7

1
INTRODUCTION

INDUSTRY BACKGROUND
Reliance Industries Limited is an Indian multinational conglomerate, with major businesses in the telecom,
energy, petrochemicals and retail industries. Our project focusses on the petrochemical industry. Our
business process for developing an enterprise was the procurement supply chain in this area for this firm.

Brief overview of the business process and the methods adopted by us to formulate an enterprise system
for this purpose has been described below.

Business Flow
The manufacturing industry is a continuous entity which sustains round the clock production. Any
disruption in any process leads to a halt in the production thus hampering the profit and output of the
industry.
To sustain this continuity, asset maintenance becomes one of the KPIs. Therefore, criticality analysis and
spare management plays a pivotal role in operation. The plant maintenance department maintain Bill of
Material (BOM i.e. spares) of each equipment in the system. Availability of spares at all times is critical to
continuous operation as equipment breakdowns need to be attended as soon as possible. Every spare is
identified through a 2-series SAP code. The system program defines the inventory level that needs to be
maintained based on installed base, criticality and consumption pattern.
Any spare requirement on site is created through a reservation system. MRP system is run to convert the
requirement to “planned orders”. The planned order is converted into “purchase requisition”. The
requisition is then received and approved at various levels and ends up at a buyer dashboard. The buyer,
then floats the requirement along with technical specification to the registered vendors. They get quotes
from the vendor and send to site for technical approval. This stage is called RFQ (Request for Quotation).
After site clearance, the most cost-effective solution is chosen and a Purchase Order is generated to the
vendor with a delivery date. Upon receipt of goods at site, the local store receives it and checks it for any
damages. Again, a technical and visual inspection is done by site team. The material is finally taken into
local store and hence is available for use.

Method Adopted
The real business process needs to be transformed into a digital enterprise. For this the first step was to
arrive at the core diagram. But prior to that we found it essential to chalk out a business flowchart so as
to be clear about the flow. The major adopted to arrive at our final blueprint are listed below
chronologically:

 Visualize the real business process as a business flowchart to understand the process.
 Arrive at the core diagram to understand the interaction of business process, data and corresponding
technology to be used.
 Using a standard enterprise architecture framework (such as Zachman Framework) to formulate the
blueprint for the enterprise architecture for the said business process.

2
CONNECTING REAL WORLD BUSINESS TO DIGITAL PROCESS

BUSINESS FLOWCHART
The business process to be converted to a digital enterprise, first needed to be visualized as a flow chart
to understand the direction of flow of control and also to understand which modules are interacting with
which other parallel or neighboring modules to make it a complete and comprehensive system. The
diagram below was what we had ultimately come up with to formalize the business process.

The above illustration is a flowchart to understand the flow of business and the various stakeholders (modules) and their interactions

The business flow is clearly depicted above. Each process is indicated by yellow rectangles. Any decision
making point is depicted by green diamonds with each decision arm offering alternative solutions. The
Pink circles depict the process start and end. There is a sub module routine for approving the order which
has been shown as well with a plus sign in that module showing that there are more flows in this particular
module. The flows are quite self-explanatory. The steps are enlisted below:

1. Process begins with a purchase requisition.

2. This needs to go through the approval process.
a. Approval of the procurement manager of the same plant
b. Approval of the senior factory procurement manager
3. After approval, this is put forward to the buyers.
4. Buyers then send in their quotations
5. After a quotation is accepted, the deal needs a technical and site level clearance.
6. The order is then shipped (logistics) on one hand and order details (finances) on the other hand.
7. The order is then subjected to a site level inspection and then the process is marked closed.

3
DESIGNING THE CORE DIAGRAM
Once we had the flowchart in place we started to design the core diagram. The business modules needed
to be tied up with the data. This would be the blueprint for conceptual understanding between the
business and the data and the processes. The technology would also be depicted here to show (a high
level conceptualization) the interaction between the processes and the data. Basis the flowchart and
understanding of the business process we came up with the below core diagram.

The above illustration is a core concept diagram to understand process and data interaction and how technology plays the role of binding them

CONCEPTUALIZING THE ENTERPRISE BASIS A STANDARD FRAMEWORK

Zachman Framework
The next step to formalize our blueprint for the architecture was to put our business processes and core
diagram onto the Zachman Framework.
The Zachman framework is a 6x6 matrix with differing layers of perspective and answering those with
respect to the 5WH framework. So each perspective is taken care of from all angles. For simplicity we
decided to only cover the top 3 layers of perspective of the Zachman framework omitting the finer
technical details as they are far too complicated for the requirements of this course.

4
 Above is a very rudimentary and simple version of the Zachman framework and how we intend to apply
the same in our context.
Below is our application of the Zachman framework to our context:

What How Where Who When Why

Contextual Material Implement Across all Central Planning Planning cycle Optimize Inventory,
Procurement Inventory manufacturing Department
Technology Modelling scheme sites Minimize Cost
Platform at all sites Reduce Turnover Time

Conceptual ER Diagram Implementation of Local stores at Central planning Quarterly Optimizing inventory
shown Material resource individual sites team to monitor all will lead to reduction
below Planning System connected via purchase in cost and hence
SAP requisition through increase in profit
store inventory
team at each site

Logical Centralized Centralized MRP Material At time of

SAP Module system using Bill of reservation by purchase
to monitor Material, individual plant. requisition
stock levels production
PR raised by Common
of all sites scheduling, individual inventory
purchasing and entity across all
procurement and sites
cost accounting

Inventory
Inventory
check by
check
local store
through
team.
system.

Inventory
check by Inhouse use
central of inventory
team across from other
all site. sites.

PO Hence
placement overall
for inventory
necessary reduction
placement and cost
reduction

Zachman Model up to Layer 3 (Logical)

5
The entity relationship diagram to get a conceptual understanding of how to build the enterprise. This
helps us identify the entities, their attributes and their relationships with other entities. Thereby this
will then become the basis for formulating the database or the RDBMS and then the technology can act
upon this and give rise to the system.

CONCLUSION
The current system for RIL is almost the same and may be much more complicated as they are a stalwart
in the industry, however for academic purposes we have tried to design a system from scratch and on a
much more simplistic manner. However most systems that are simple are considered to be more robust
as they can accommodate changes / enhancements and new integrations in the long run.
During the course of the project we learnt how to design an architecture from scratch and compare it
with the applications of an Industry Leader of the present day.

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REFERENCES

 Sources
o https://www.ril.com/ar2018-19/mda.html
o https://labs.sogeti.com/core-diagrams-a-design-language-for-enterprise-
architecture/
o Primary Research / Real Time Work Experience
 Tools
o Enterprise Architect
o MS Power Point