Partnering KDS Group Thru An S/4HANA Led Business Transformation Journey

Partnering KDS Group thru an S/4HANA led
business transformation journey
10th October 2018

1 Who we are
2 Our Understanding
3 Proposed Solution
4 Approach, Methodology & Deliverables
5 Solution Enablers
6 Scope of the transformation Journey
7 Key Success Factor
8 Our Team
Topics of 9 Appendix
Discussion
Who we are and what we stand for
Page 3
Who we are
$26b revenue | 150 countries | 190,000 professionals
Global
Advisory Assurance Tax Transaction
Ernst & Young Differentiators:

Commercial
and financial External ► Focused squarely on the business performance space
due diligence audit
Financial ► Rapid assessments of processes and benchmarks in identifying areas of improvement
accounting
Transactional advisory ► Innovative and collaborative facilitated environment to help design or improve processes
integration service
► Experienced resources to drive sustainable improvement
Transaction Assurance Fraud investigation
and dispute services ► Multi-dimensional and multi-discipline approach in problem-solving
Valuation
► Process transformation to streamline end-to-end processes, leverage sources of competitive advantage, deliver sustainable benefits and
Client transfer the capability to self-improve/sustain
relationships
Business
and indirect Performance Strategy
improvement Business
tax services Tax Advisory performance
International market
tax services
Risk
Transaction
tax Ernst & Young
IT risk
Human
capital
Advisory
Systems integration
and outsourcing market
Globally, the Advisory practice has 23,000 consultants
and generates US$4.3 billion annually
4 | Driving value through S/4HANA

Why EY for SAP Transformations
Worked with multiple Manufacturing Intensive collaboration with Industry bodies Repository of Leading Industry Business
Sector ecosystems in Bangladesh & Abroad though Leaderships & Publications Practices & Compliances
Extensive Experience of deploying SAP in Experience in deploying entire business stack of Service portfolio of SAP Transformation,
Experience Manufacturing Industry SAP Solutions Upgrade, Support
Not Just Multiple Technology capabilities to Business & Statutory Compliance Support to Pro-active business support to ensure deeper
SAP..!! enable Digitization in true sense ensure Risk free deployment understanding
EY is # 3 Partner Globally in
#3 SAP S/4 HANA deals
1stst & 2nd
nd Deployment of SAP S/4 HANA v1511
Pioneers in deploying latest

17 + SAP S/4 HANA Engagements undertaken FIRST SAP S/4 HANA versions
SAP team; located within India itself in close Go-Lives Achieved on SAP S/4 HANA v1610 – A
Local proximity 3 rare feat…!
Consultants in SAP Practice Globally; 15+ in EY Go-Lives Achieved on

5000+ Bangladesh and 550+ in India 7+ SAP S/4 HANA v1511
SAP Transformation
150+ Engagements undertaken

Our Key SAP credentials
Recent Transformation and Migration credentials in India and Bangladesh S/4HANA Transformations globally
EY is one of leaders in S/4HANA implementation in South Asia and worldwide

Message from CIO of AT Haque Limited on Successful Closure of the 1st S/4 HANA
1610 enablement in Bangladesh & Asia Pacific
From: SAP Project Management Office [mailto:erpproject@athaque.com]
Sent: Thursday, February 1, 2018 3:32 PM
Subject: SAP S/4 HANA Project Hyper-care Closure Announcement
Dear All,
It is with great pleasure and happiness that I am writi ng this email, where I congratulate all of
our team members including our soluti on partner - EY professionals for successfully co mpleting
the SAP S4/HANA project well, on ti me.
I strongly believe, the journey since the incepti on of this project was not so easy. Lots of new
work has been don e, huge business process re-engineering has been made, lots of change
management has happened. It is each one of you who made this wonderful project successful
and brought SAP S/4 Hana System into the reality in Haque. I truly believe, this transformati on
will certainly fulfil our organizati on’s goals and significantly help our company achieving much
more in the coming years.
I admire our honorable Managing Director sir for his relentless and extensive support that
actu ally enabled the entire team to make t his implementati on successfully.
I appreciate COO sir for his ti me and dedicati on towards completing this project. All BPOs
contributi on for this project success is also un forgett able.
And I equally appreciate EY professionals for their commitment, very s tructural app roach and
best practi ces followed, which ulti mately drove this whole project in the right directi on.
I really appreciate all efforts of each team memb ers, all of whom have worked day and night to
make this project successful. I hope we all had a great lesson learned from this project and this
will remain our benchmark for the future development.
Once again I sincerely appreciate and so thankful to all of you for this wonderful achievement.
Kind Regards,
Morshed Ahsan
AT Haque Limited

Message from President & CFO of Mangalam Cements on Successful Go Live of the
1st S4 HANA enablement in India & Asia Pacific

Our Global HANA awards gallery
SAP Pinnacle Award 2018: SAP Pinnacle Award Finalist 2018:
► Customer’s Choice Partner of the Year ► Value Assurance Partner of the Year
Sr. Year Area Award

1 2018 EMEA SAP Pinnacle Award – Service Transformation Partner of the Year
2 2017 EMEA SAP EMEA Partner Excellence Award 2017 for Safeguarded Quality
3 2017 North America SAP North America Partner Excellence Award 2017 for Partner Growth
4 2016 Global SAP Pinnacle Award – Quality Partner of the Year
5 2016 Global SAP Pinnacle Award – Market Impact Partner of the Year
6 2016 EMEIA SAP EMEA / MEE Partner Excellence Award for Fastest Growing On-Premise & Cloud Services
7 2016 North America SAP North America Partner Excellence Award for Service Innovations
8 2016 India SAP ACE Award for Running Real-time & Live Enterprise: Emerging Enterprises
9 2016 APAC Editor’s Choice CFO Excellence Award for ERP Transformation
10 2015 Global SAP Pinnacle Award – Fastest Growing SAP Transformation Practice
11 2015 Global SAP Pinnacle Finalist – Quality Partner of the Year
12 2015 Global SAP Pinnacle Finalist – Service Transformation Partner of the Year
13 2014 Global SAP Pinnacle Award – Service Transformation Partner of the Year
14 2014 EMEIA SAP Africa Partner Award for System Integration Partner of the Year
15 2014 EMEIA SAP MENA Partner Award for Best Global Partner for Joint Revenue & Capacity Build
16 2013 Global SAP Partner Impact Awards – Top Growth

Our expertise across select metal and mining clients
► Surya Roshni ► Essel Mining ► Eramet SA ► Vallourec Group

► Tata Steel ► Konkona Copper Mines, Zambia ► Steel Dynamics, Inc. ► Rapid Forming Corporation
► Bharat Aluminum Company Ltd ► Sesa Goa ► Evraz ► Primary Steel Corporation
► Essar Steel Limited ► Monnet Ispat ► Baosteel Group Corp. ► Philsteel Group of Companies
► Hindalco Industries Limited ► Bhushan Steel ► China Steel Corp ► Armco Marsteel Alloy
► Hindustan Zinc Limited ► California Steel Industries ► Companhia Siderurgica Corporation
Nacional ► National Steel Corporation
► ISMT Limited ► Chaparral Steel Co
► Ispat Industries Limited ► ArcelorMittal ► Corus Steel plc ► Bohler Uddeholm
► National Aluminum Company Ltd ► Nippon Steel ► Gerdau S.A. ► International Metal Services
► Rio Tinto India Pvt. Ltd. ► POSCO ► Kobe Steel Ltd ► Allegheny Technologies Inc
► Mettaloinvest ► Baoshan Iron & Steel Co. Ltd
► Sterlite Industries (India) Ltd ► IPSCO Inc.
► Nucor Corp BlueScope Steel Ltd
► Uttam Galva Steels Limited ► JFE Holdings, Inc.
► Brush Wellman Inc
► V.M. Salgaocar & Bro. Pvt. Ltd. ► Kazakhmys Plc ► Onesteel
► Vedanta Aluminum Limited ► Mechel ► Severstal
► Viraj Profiles Limited ► Al Yamamah Steel Industries ► Shougang Concord Steel

Company Holdings
► Jindal Group
► United States Steel Corp

Our Understanding
Page 11
.
Background : KDS Group
Your Background
KDS Group is one of the most renowned businesses and industrial conglomerates of Bangladesh, established in the port city of Chittagong but have now extended operations throughout the world. Having established
offices and agencies in Singapore, Hong Kong and the UK, with plans of expanding into the USA, the group thereby is paving the path into becoming a Bangladeshi based multinational.
Your Assets
KDS group is engaged in diversified business including Apparel solutions, Steel , Logistic & Shipping , Real Estate & Financial Services . KDS Steel is engaged in diversified business including KY Steel , KYCR
Coil industries Ltd and Steel Accessories
Your Vision
To be one of the most respected steel manufactures in the country that will pursue on a relentless pursuit of shareholders value added, growth and quality in every thing we do.
Your Values
KDS values human capital and is therefore committed to attract , groom , and nurture talent through industry leading compensations and benefit packages apart from invests in on training its potential employees under
local as well as foreign trainers . KDS has already engaged internationally renowned organisational development consultants ‘Ernst & Young’ to develop upgraded human resource management practices . The group
adheres to internationally compliance requirements closely and has taken many social initiatives for the betterment of the lives of its workforce .

Our Understanding KDS Steel
• KDS Steel has three flagship companies namely KY Steel Mills Limited , KYCR Coil Industries Limited and Steel Accessories Limited
• KY Steel Mills Limited is a part of KDS Steel, one of the leading industrial groups in Bangladesh. The Company is manufacturing Galvanized
Coils and corrugated galvanized sheets from Cold Rolled(CR) Steel Sheets in different thickness.
• KYCR Coil Industries Limited, leading concern of KDS steel is a stat of the art cold rolling mills complex at Kumira .The Company is
manufacturing Cold Roll Full Hard, KYCR Color Coated Sheet.
• Steel Accessories Limited, venture of KDS is the countries first and the only manufacturer of Steel Clips and hooks for export oriented hangers.
The Company is adequately equipped to produce a wide range of steel clips and hanger, hooks to meet the full demand of local and global hanger
manufacturers

Our Understanding Steel value chain
Mining & RM Processing Iron & Steel Making Casting Hot rolling Cold rolling
Chain
Value Chain
Value
► Iron Ore ► Sponge iron / DRI ► Slabs ► Deformed bars ► Galvanized Coils / Sheets
► Coal ► Pig Iron ► Billets ► Rods ► corrugated galvanized
► ► Liquid Steel ► ► HR Coils sheets from Cold
Beneficiation Blooms
Rolled(CR) Steel Sheets
Products
Products
► Sinter ► Ingots ► Plates

► Cold Roll Full Hard,
► Pellets ► Rails
► KYCR Color Coated Sheet
► Sections
► Coke
► Channels
► Beams

Our Understanding Key Performance Indicator
KPI’s UOM KPIs UOM
Year of Commissioning Gas/Utilities
Last Upgrade year BF Gas nm3
Make Type COG nm3
Rated Capacity Power KWH
Is part of World Steel Association? Quality
Future expansion plans (description) Basicity
Production Crushing Index
Gross Sinter Production Tfe
Net Sinter Production FeO
BF net consumption SiO2
%BF consumption Al2O3
Sinter production (Best/month) CaO
RM Consumption MgO
Mill scale Tumbler Index
IBRM MPS
Limestones Moisture
Dolo LOI
Calcined Lime Internal return fines generation %
Coke Fines Bed Height
BFSint fines Cost
Internal R/F Power Inr/T
FeO Fuel Inr/T
Time Balancing RM Cost Inr/T
Available Hours of production Repair and Maintenance Cost Inr/T
SSD Hrs Overheads Inr/T
Electrical Unplanned Hrs Maintenance
Mechanical Unplanned Hrs MTBF
Operational Unplanned Hrs MTTR
Others Unplanned Hrs Machine Utilization 99%
No material Hrs Availability 96%
Uptime% Shut down hrs (2012-13) 27

KPIs UOM
Year of Commissioning KPIs UOM
Last Upgrade year Consumption Norms (Net & Dry)
Make Type Sinter -
Rated Capacity Lumps -
Is part of World Steel Association? Pellets
Future expansion plans (description) Fuel:
Production Dry Met Coke
No. of Days Dry Nut Coke -
Shutdown PCI
Working Days
Fluxes
Rated Capacity
Production Per Day Lime Stone
Capacity Utilization Dolomite Quality
Hot Metal Prod. % Quartize Ash% %
Pig Iron Prod. % Iron Fines at BF Hot Blast Temp Degree C
Skull Generation % Sinter Fines at BF % Si %
Hot Metal Prod. (MT) Utilities % Phos %
Pig Iron Prod. (MT) Water
Skull Generation (MT)
Power
Time Balancing
Available Hours of production Hrs
Oxygen
SSD Hrs Nitrogen
Electrical Unplanned Hrs Steam
Mechanical Unplanned Hrs Cost
Operational Unplanned Hrs Raw Material
Others Unplanned Hrs Power
No material Hrs Utilities
Uptime% % Fluxes
Consumption Norms (Net & Dry)
Fuels
Sinter -
Lumps - Repair and Maintenance
Pellets

KPIs UOM
Consumables KPIs UOM
Unexpanded perlite Ore /MT Quality
Ramming Mass Yield Loss %
Ramming Mass %Si %
Pure Magnesium %Mn %
Card Board %S %
a) Whiteheat A %P %
a) Whiteheat K %Ti %
Graphite segment %Mg %
Temperature Tips %CE (4.5% min) %
LDO mmBtu/ton UTS
BFG in annealing mmBtu/ton % ELONG. %
Power fixed KwH/ton BHN
Power variable KwH/ton NOD.(%) %
Total power KwH/ton N.C. /mm2
Production %FERRITE %
Finished production MT %PEARLITE %
Despatch MT %CARBIDE %
Metal input MT PRESSURE Kg/cm2
DI Casting production MT Operating parameters
Ingot mold Casting production MT Effective Utilization
Flange Casting MT Ri ratio
Saleable production MT Temperatue
Induction f/c slag production (HMP) MT Super Heating time
Induction f/c slag production (LMP) MT Power consumed during Super Heating period
Cost Daywise furnace power consumption
Manpower cost/Ton Rs
Hot zone cost of production Rs Power consumption for repeat Super Heating and Holding
Cold zone cost of production Rs

KPIs UOM
Production Quality UOM
CCM hopper slag % Yield Loss %
Spinning speed mpm Capting Rejection MT
Pouring rate turns/min Online Rejection MT
Mould temperature 0
C Operating parameters UOM
HPTM Rejection MT CCM no. Avg working hr
Consumption Ingot Mould casting rejection %
Mincoat /MT Cumm.Run
Inspection rejection MT Running hrs
Inoculant(Zircobar) /MT
Mould power(Innopipe) /MT Mt/hr
Unexpanded perlite Ore /MT Pcs/hr
Other natural gas mmBtu/ton Dia & Class
Defects UOM MT
LDO mmBtu/ton Segregation banding MT
Power fixed KwH/ton Metal composition
Raining MT Fluidity
Power variable KwH/ton Shrinkage of cavity MT
Total power KwH/ton Density of metal g/cm3
Cold shutouts MT Temperature difference (solidification
Cost Pin holes MT 0C
Power Rs/MT start - solidification end)
Gas holes MT Casting size
Fuel Rs/MT Blowers MT
Yield loss Rs/MT Dia cm
Mis run MT Length cm
Heat flow Others MT Width cm
Innoculant quality UOM Wall thickness cm
C % Retention time minutes
Si % Holding temperature 0C
Mn % Mould material
Mould powder quality (granulated, UOM P %
formed or pulverized) YS Mpa
S % UTS Mpa
Mould powder density g/cm3 Ca % Elongation % %
CaO 0
C Zr % Residual stress
Al2O3 % Al % Mould life
MgO % Hardness HBN
SiO2 %
Melting point 0
C
Flow temperature 0
C

Production UOM Operating parameters UOM Epoxy - Quality UOM

Bef annealing throughput MT Annealing temperature C %
productivity MT/hr Mould material Area m2
Effective utilization % YS Mpa DE m
Net operating hours hr UTS Mpa L m
OEE % Elongation % % Surface area m2
Residual stress Coating wt kg/pipe
Mould life Coating thickness micron
Consumption and Cost Hardness HBN Coating type
LDO mmBtu/ton
BFG mmBtu/ton
Power Rs/MT
Operating parameters
Fuel Rs/MT
Quality Temperature 0C
%C % Humidity
Normalizing temperature 0C Paint durability
Process annealing tempearture 0C
Full annealing tempearture 0C
N %
H %
%C %
% Si %
% Mn %
%S %
%P %
% Ti %
% Mg %
Note:
► Our Approach would be to identify each and every processes, their sub-processes, identify the respective
KPIs & controls of the processes / Sub-Processes, and the process to measuring those KPIs and reflecting
back to the MIS to be generated in ERP system
► The KPIs listed are indicative only, we would engage the process owners in a workshop along with our
solution architect and the Industry Experts during Blueprinting Phase and finalize the KPIs, and controls to
be measured in system and also the MIS structure will be finalized.
Current Key Challenges
Order to Cash
Requirement Analysis Pain Area
Impact
Key Pain Areas / Challenges Area
Solution
DESCRIPTION IMPACT
PROCESS
Master Data : No Centralized Customer and Material Master data maintained in the system. No ►Monetary Impact
Authorization policy for change of master data. There no log exist for change of master data. Possibility of ►Internal Controls
duplicity of Multiple code maintained for same customer.There is no concept of different business partner like ►Stock visibility
Sold to Party/Ship To Party/Bill To Party/Payer located in a common system
Master data is maintained centrally and can be used in all applications Sales, Procurement and Production planning For example, a customer is
master data can be used in customer requests, orders, deliveries, invoices, and payments. Pricing and discount applied at customer level.
Credit Management: Credit Control: No Centralized credit management ►Monetary Impact

policy. No Authorization for releasing of blocked sales documents. Manual approval process being
►Statutory Impact
Sales – Order followed for failed credit check.
Processing Defining credit limit customer wise and controls and sales order / delivery processing to disallow sales or ►Compliance & Internal
dispatch for customers exceeding credit limit Control
► Centralized credit management for all the Business Partner/Customer Master with defined Rule.
► Business Partner/Customer Master will be assigned to rule and Credit groups which will control the Credit check. Score from External
financial agency can be integrated for better control.
Sales Available to Promise Check: No Integration with the sales order in sending the requirement for ►Monetary Impact
order quantity. No Automatic Availability check being carried out in sales order. Availability check are not ►Internal Control
carried out for alternate Plant. Lack of clarity and visibility in the movement of Stock.
MRP(Material Requirement Planning) will be automatically carried out once the sales order created.
Advantage of carrying out the availability of stock in the sales order

Impact
Solution
PROCESS DESCRIPTION IMPACT
Design Details per sales transaction: System should be capable to capture the details and thus MIS / Reports ►MIS reports
should feature material wise / design wise sales ►Internal Controls
Sales Order
Processing
Various customised Reports can be set out of one Master Report.
Easy navigation for the available Dashboard.
Most of the Report requirement will be fulfilled through standard SAP Report.
Price Master Data: Price not maintained centrally with validity dates. SystemS not capable to provide price ►Monetary Impact
revision history and change logs. All the pricing elements like Base price Discounts, Tax, Freight and ►Internal Controls
Insurance cannot be captured in the sales order.
Price
Condition Record Master data, date wise condition can be saved with validity date for various combination.
All changed in the condition record can be seen through Report and logs.

Procure to Pay
Impact
Area
Key Pain Areas / Challenges Solution
Material Requirement Planning: System should be equipped to propose the procurement requirement ►Monetary Impact
of transfer, raw material and stores and spares item based on the reorder level, stock on hand, ►Inventory ageing
requirement estimation, safety stock etc.
Procurement – ►Internal Control
Procurement
Planning
As part of standard SAP feature Material Requirement Planning (MRP) shall be designed to provide an optimized procurement for all such materials
where there would need for planning and optimization.
Vendor Evaluation: System should be capable to compare vendors, evaluate them and derive a vendor ►Internal Control
rating ►Procurement optimization
Procurement –
Vendor
Evaluation &
Rating System shall be designed to provide vendor evaluation and rating basis of delivery times, quality and cost price on basis of past transactions with the
vendor.
Design Management: Changes/Modifications in design leads to obsolesce of materials, no proper ►Internal Control
planning to segregate and consume older and newer version of Parts/components ►Procurement optimization
Procurement -
A system which provides information on inventory valuation and ageing on a real time basis. Also in case of any design changes, it should prompt the
value of stock that may go obsolete post the design change

Impact
Area
Weighbridge Integration
Weighbridge : The system should
Integration be capable
: The system of weighbridge
should be capable ofautomation - direct
weighbridge data -
automation ►Monetary Impact
acquisition from electronic weigh bridge, online generation of weigh-slips and registers.
direct data acquisition from electronic weigh bridge, online generation of weigh-slips
Logistics – and registers.
Weighbridge
Integration
Technical integration
Technicalbetween electronic
integration weigh
between bridge and
electronic SAPbridge
weigh to be and
doneSAP
using
to ABAP
be done. A custom
using ABAPdatabase shoulddatabase
. A custom captureshould
the realcapture
time electronicthe
datareal
from
time electronic data from the weigh bridge and store the same for subsequent generation of weigh slipsReceipt
the weigh bridge and store the same for subsequent generation of weigh slips and registers. Goods in
and registers.
sap able to intrigate
Goodswith Electronic
Receipt in sap weigh
able tobridge.
intrigate with Electronic weigh bridge.
Min / Max Level:MinThe minimum

/ Max Level: and
The maximum
minimum andstockmaximum
levels arestock
not defined properly
levels are leading
not defined to stock
properly ►Monetary Impact
outs/ excess of leading
inventory.
to stock outs/ excess of inventory.
Inventory –
Min / Max
Level
The material master shall bemaster
The material designed to be
shall capture min.to/ max.
designed / reorder
capture min. / level
max. at a material
/ reorder / plant
level level. / plant level.
at a material
Inventory Valuation: Inventory

Inventory valuation
Valuation: and ageing
Inventory information
valuation areinformation
and ageing not readily available.
are not readily ►Monetary Impact
available.
Inventory
Valuation
Standard SAP defines and calculates inventory at each transaction / material movement and shall be readily available on a real time basis.

Impact
Area
DESCRIPTION IMPACT
PROCESS
Service Procurement: The service procurement is a manual process where the vendor bill passing of ►Monetary Impact
services is not integrated with the services given by the vendor. Similar issue is with the freight bill
passing.
Service
Procurement A system shall be designed to provide facility of end to end integration of procurement of services and facilitates in accurate and efficient
vendor bill passing of services
Import Procurement: L/C tracking for Import Procurement is required ►Monetary Impact
Inventory
Tracking –
Transfer
paper /
Motives A custom report needs to be created to capture L/C details wrt. Purchase Orders
Inventory Ageing report : System should provide the age of materials in different buckets of age. ►Monetary Impact
Inventory
Ageing
Custom report shall be built to provide the inventory ageing details of each kind of material.

Design to Deliver
Key Pain Areas / Challenges Impact

Area
Solution
WIP Calculation & material tracking after Stock transfer: WIP tracking not possible in current system. In ►Monetary Impact
case of semi finished product stock transfer from one factory to another factory not able to track the batch ►Internal Control
quantity
SAP system shall be configured to capture WIP quantity at the different stages for each material and able to track the raw material to semi
finished, finished product via batch management. All the manufacturing history will captured via batch management.
Manufacturi
ng –
Consumption
and Stock Raw Material procurement proposal: The raw material procurement requires an efficient planning based on ►Monetary Impact
the sales estimates, stock on hand and safety days stock requirement. ►Internal Control
System shall be configured to execute Material Requirement Planning (MRP) run and calculate the procurement requirements based on sales plan
(translated to requirement), stock on hand, safety stocks etc. and propose the procurement quantity for the defined period interval.
Quality & Returns: Capture quality parameters for both incoming materials and in-house produced materials ►Monetary Impact
manually ►Internal Control
Manufacturi
ng –Quality
& Returns Quality results shall be recorded as characteristics value and shall be available for MIS and comparative statement analysis. System shall be
designed to map vendor returns and a reports shall be provided to identify the cases where QA results are outside the defined standards.

Impact
Solution
System integration: Each Business Entity : Sales/Finance/Production/Quality follows individual business ►Monetary Impact
process maintained separately. Maintained Decentralized Master Data. ►Internal Control
Manufacturi
ng –
Integration
with other Centralized system shall be configured to integrate Sales/Finance/Production/Quality.
business System shall be configured to integrate with other business areas such as Finance to capture cost, with sales for managing demands.
areas
Authorization process: Manual authorization and release process for quality result recording, usage decision ►Monetary Impact
and release and closure of Production order. ►Internal Control
Manufacturi
ng Quality –
Authorizatio Centralised Authorization and release process for Quality lot result recording, usage decision and production orders.
n
Manufacturing loss: Manual effort to capture manufacturing loss during production ►Monetary Impact
►Internal Control
Manufacturi
ng –loss
System shall be configured to capture cost of manufacturing loss( component and operational loss)

Impact Area
Process Control :Current system is not efficient to integrate with in-house software ►Monetary Impact
►Internal Control
Manufacturing –
Process Control
across Stages
Process Control system in different manufacturing sections can be developed in SAP two ways, third party system like PLC / SCADA can be interfaced with
custom developed solutions in SAP with the help of third party for seamless data flow in the SAP system through SAP PI/PO solution.
In the initial phases if the data is not available through PLC/SCADA reporting software or from any of the middleware (If Existing) ; the process parameters can be
interfaced from spreadsheet output of the existing system or treated as MIC in SAP QM, this will be updated through manual entry.
Machine efficiency :Not able to capture machine efficiency of each machine ►Monetary Impact
►Internal Control
Plant
Maintenance
To configure SAP system to capture the machine efficiency of all machine Also, this would be reference to root cause analysis. Able to create different reports.

Record to Report
Impact
Area
The accounting data are maintained in the Legacy system. The other Process areas are not integrated with ►Internal Control
the Financial Accounting. ►Monetary impact
Reconciliation
of the Books of
Accounts
As all documents posted to the General Ledger from whatever source are posted to the new Universal Journal table ACDOCA,
reconciliation between the various SAP Modules are no longer necessary. There is no aggregation, indexes or data redundancies.
Asset Accounting: Currently the asset accounting is entirely a manual process leading to a cumbersome ►Statutory Compliance
exercise and risk of incorrect calculations. Fixed Assets Registers are maintained manually. ►Monetary Impact
Asset
►Internal Control
Accounting
Standard SAP provides creation of asset master, tracking and revaluating. It provides the flexibility of depreciation rules – As per Statutory
Laws. System would also be scalable enough to adhere to different accounting standards.
Advance payment to vendors is manually adjusted against the invoice. Manual payment process is ►Statutory Compliance
followed to clear the invoice. Vendor Invoice cannot be tracked against Material Receipt (MR). ►Monetary Impact
Accounts In Accounts Receivable no accounting documents are created for delivery. ►Internal Control
Payable/
Receivable In Accounts Receivable no accounting documents are created for delivery.
Also billing
Advance is done prior adjusted
is automatically to delivery. Any the
against transactions canitbe
invoice and is deleted/edited
a standard process.
without notice and no audit trail exist for that.
Accounting documents are created at each level providing transparency, visibility and audit trails. No documents can be deleted from the system
though reversal of the original transaction can be done with proper authorization.
Impact
Solution
No product cost planning is followed as a result no variance analysis is used. Only actual raw material and ► Internal Control
overhead cost is taken into account to determine the product cost. ► Monetary Impact
Product
Costing
Product Cost estimate (Cost Sheet) captures the cost components automatically from the posted transactions in FI & CO. SAP has option to run the
cost estimate both individually and mass Finished goods.
Budget is controlled manually in the Organization. Lack of control mechanism exists if the expenditures exceeds ► Internal Control
the allocated budget. ► Monetary Impact
Budgetary
Control
The main tasks of Budget Control Systems (BCS) in SAP are to budget all expenditures for individual responsibility areas (fund centres), monitor
future funds movements in light of the budget available, and prevent budget overrun. The Budget is a living document and there can be changes to
the budget pursuant to changes in conditions by entering supplements, returns, and transfers.

Proposed Solution
Page 34
The need for IT Transformation
KDS Group transformation from Fragmented to Integrated Approach
Robust Reporting Layer**
B4 HANA
Need for HANA
FIORI Dashboards Alerts
KDS Group is currently running on home grown and third party From Fragmented approach
distributed solutions and looking at streamlining/standardizing the
SAP S/4 HANA 1709 Digital Core
processes and enabling itself for a high rate of growth in domestic
as well as international market. KDS Group has identified globally SD FICO
FSCM
standard ERP SAP as an effective IT tool which will serve its needs System 1 System 2 MM
HCM
related to systems and business processes integration. QM
PM
Manual Email
Excel PP PS
PI
Integrated Application for

Domestic Order
Booking
Android mobile apps.
**Futuristic – Once Digital Core in form of S/4HANA has been implemented

Benefits for KDS Group thru HANA Transformation
Immediate Intelligent Integrated
Internally and socially connected and

Empowers business with insights to act in the moment Goes beyond automation, to predictive suggestion connected to the world
Digital Future User Experience

Time to Value
Builds Organization and lays foundation for Digital Improved, Easy & Instantly adopted interface &
Future Runs Fast & Simple
Mobility
Process Excellence
Reduced TCO Deployment
Enables quick and soft monthly closures Simplified architecture Provides multiple choices of deployment
With lean Data Footprint

Your Key Processes
Decision Making
 Plant Operations Reporting
Support Function
 Financial Statement Version
Order to Procure to
Taxation
Cash cycle Pay cycle Payroll  Profitability Analysis
 Tax and VAT Reporting
Quality
 Other Reporting
Vendor Management Human
Costing
Management AP & AR Resource
SAP Management
Production S/4 HANA
Management 1809
Asset
Value Added Scope
Accounting Cash &
Bank  Change Management
Production Management
Planning  Mobility powered by full fledged
implementation of FIORI
Material Sourcing
Planning Strategy  Reporting Catalogue
 Product Industry Customized Solutions
Plant Maintenance.

Your Key Expectations
You would expect us to assist in the achievement of these amongst other objectives
1. Bring relevant experts with S/4HANA implementation
2. Adoption of S/4HANA system to enable business process integration
3. Streamline & Standardize processes and replace third party systems operating in silos
4. Assist KDS Group with providing platform for embarking on future Digital journey
5. Streamlined procurement and Inventory Management processes
6. Standardized Production Process as per the Industry Best Practices
7. Manage on time closure of books
8. Centralized control over financial compliance and policy enforcement
9. Sales Processes as per Industry Best Practices
10. System generated real time reporting

Scope of the transformation journey
Page 39
… and following is the proposed transformation journey in the ERP/Analytics
Landscape for KDS Group
Phase 1 Phase 2 Phase 3
SAP S/4HANA Digital Core

Enablement
► Record To Report (FICO)

► Order to Cash (SD)
► Procure to Pay (MM & IM)
► Design to Deliver (PP & QM)
► Expand to Maintain ( PM)
► ABAP
► Basis
SAP Next Gen Analytics &
► HANA Embedded Analytics
Automation
► Fiori
► IBP Logistics
► BI-BO SAP Next Gen Analytics &
► PP-RT Automation Automation
► HCM - Time Management
► HCM - Payroll* ► FSCM
► Success factors ► BI-BO
S ► Successfactors
T
A ► IBP Finance
R
T ► Leonardo
► Ariba
8 Months 6 Months* 6 Months*

Engagement Scope wrt S/4HANA : Phase I

Time to Invest
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11
Project
Planning Current State
Implementation Initiation Assessment Closure
S/4 HANA
Orientation
To-Be Workshops QA Review & Design Phase Closure
Solution Design
BBP Sign Off
Testing Completion &

SAP System Build Realization Phase Closure
Realization
Training Completion Pre Golive readiness check

GO LIVE
Final Preparation & Go-Live
1st Month End 2nd Month 3rd Month

Closing End Closing End Closing
SUPPORT
Post Go-Live Support

Engagement Deliverables
Implementation Initiation Solution Design Realization Final Preparation & Go Live Post Go-Live Support
Project Planning Solution Design Baseline Configuration Final Preparation Hypercare Support
To Be Document SAP configured solution Authorization Matrix
Project Plan in DEV Issue Tracker
Project Charter FS and TS template
SAP configured solution in QA Cutover Strategy Document Formats for future master
Project Standards Gap Document data creation and addition
Data Migration Templates
Project Communications Data collection template Pre Go Live readiness review Monthly Operation
Testing & Training by SAP Performance Report
Risk Management Unit testing Results
Data migration strategy plan Steering committee review
Integration/UAT Test Scripts report System hand-over
AS is document
Functional Architecture Training Strategy & Plan Period End Closing
Training Manual Approval for Go Live Checklist Doc.
Interface design documents Configuration document Quarter End Closure
User Responsibility Matrix Master data Upload Support (1 week)
Business Process Master List
Training with training materials
Business Blue Print End user training Transaction Cutover
RICEF List Cut over Strategy and Plan
Master Data Templates
Preparation of Test scripts &
Customization Requirement Support in execution of Tests
Document
Report requirement document Approval of Development objects
Phase Closure
Approved FS & TS
BBP Phase Sign off

Key Success Factors
Page 44
What needs to be done right
Regulatory Business Organization

and Statutory Processes Structure
Testing
and
Training
Testing and
Training Critical Monitoring
Success
Factors
SAP Implementation
Organization Structure Business Processes Regulatory and Monitoring Critical Success Factors
► Businesses Structure ► Adequacy of mapping in Statutory ► Reports ► Change Management
► Reporting Scalability ERP ► State ► Legacy Data Conversion Controls
► Flexibility
► Leading practices ► Testing
► Effectiveness
► Leading control practices ► Training
► Cross functional integration ► Governance

What needs to be done right
► Provide overview training to the senior

management, process owners and leads
(typical 2—3 day workshop)
Internal Function
► Train-the-trainer(TTT) program will be User
instrumental in scaling the realization efforts
across organization
► Define key core team who would lead and
Internal Function
conduct training to the power users and User
end users Core team Trainers
► ‘Trainers’ would consist of business

process leads and/or users who would
function in support team post go live Train-the-Trainer
Workshop
► Involve the ‘trainers’ during the Process
Alignment & System Design
Internal Function
► Provide education and training regarding User
key processes and reporting procedures
for day—to—day functions
► Assist trainers to provide training for power
users and End users (typical 7-10 day
EY SAP Experts Train-the-Trainer
workshop for end users and 4-5 day Workshop Internal Function
workshop for power users) Core team Trainers User
► TTT shall be at centralized location in
corporate office , post which the end user /
process owner level shall be at their
respective locations/plants

Our Training Approach : Trainings & Workshops
Transformation Project Training Calendar (Proposed-Will be finalized during Project Planning)

Final Preparation & Go - Post Go – Live
Implementation Initiation Solution Design Realization
Live Governance
Change Assessment
Transformation Set Change Management
To- Be Workshop SAP L1 Training Management
Up Workshop 10 days 10 days Workshop
3 days Workshop
2 days
EY and KDS EY and KDS 3 days
EY and KDS Group Function EY and KDS
Group SAP EY and KDS
Group Project Process Owners Group
Technical Users Group
Management Team Management
, Functional, Management
Business Process SAP Basis & ABAP
Owners Training SAP L2 Training Data Cut Off Strategy System Stability
15 days Communication Assessment Workshop
2 hours/day Workshop
SAP S/4 HANA EY and KDS
EY and KDS 1 day 2 days
Orientation Training Group SAP
Group SAP Technical Users EY and KDS EY and KDS
5 days Technical Users Group SAP Power Group SAP Power
EY and KDS CPR Workshops Users Users
SAP FIORI
Group SAP Core 5 days 7 days
Team
EY and KDS EY and KDS
Configuration Training
Current State Analysis Group SAP Power Group SAP
Workshops Users Technical Users
7 days
10 days Change Impact Assessment
EY and KDS
Workshop
EY and KDS Group SAP Core
Group Functional 3 days Team
and Business
EY and KDS
process owners and
Group Core Users Workshops
core team

Key Considerations – Change Management
Our Approach to manage Change
Set-up Change
Define the Vision for
1 2 Infrastructure 3 Design, Roll-Out & 4 Ongoing Benefits Realization
Future & Assess
& Develop Change Implementation Monitoring
Change Readiness
Strategy & Plan
►Engage with ►Establish the ►Develop communication ►Evaluate stakeholder ►Formulate Benefits
A stakeholders to define Change team & stakeholder management effectiveness and Measures for
positioning and structure across sites management approach ►Evaluate communication successful
Engage & language for case for - Change Sponsor, ►Design monitoring process, tools and completion of
Manage change Change Agents mechanisms effectiveness engagement
Stake- ►Assess level of interest ►Develop the Change ►Execute communication ►Use feedback to identify objectives and scope
holders & influence amongst Strategy & Change and stakeholder activities and implement
impacted stakeholders Plan with recommendations ►Set-up Benefits
Milestones Tracking Process
►Collate Inputs
►Undertake Change ►Define principles for new ►Develop & roll-out design ►Evaluate new organisation across parameters
B
Assessment across organization, if required for new organization effectiveness on the Benefits
Align the organization, culture ►Define behaviors to ►Design & Roll-out Culture ►Evaluate effectiveness of Tracker
Organ- and system pillars support the future state Change Strategy & culture change
ization ►Define technology and associated programs ►Create Change
process changes to support ►Identify & implement new Management
future state ways of working Completion Report
►Integrate in Change Plan detailing the
effectiveness and
►Identify Impacted ►Develop and implement
C efficiency of the
Resources – assess ►Develop new role individual transition plans change management
current skill gaps requirements, if applicable ►Develop training program,
activities
Transition ►Assess current ►Conduct training needs approach & materials implemented in the
the People state of training analysis and develop ►Implement training roll-out phase
systems strategy program & individual
training plans

Data Migration Strategy
Key Challenges/Learnings Our Approach

 What to migrate?
 Identification of relevant ► Identify legacy source systems ► Define business rules
► Identify business processes which ► Define data quality and evaluation
data
 Disparate data sources impact data criterion
 ► Identify business stakeholders and ► Define deadlines for data availability
Non harmonized data set
 training requirement ► Reconciliation and business Sign-off
Data quality
 ► Identify Risks and controls
Data ownership
 Historical data
 Non involvement of business
stakeholders
 Data integrity Assess Plan
 Training requirement for key
stakeholders responsible for
migration
► Data completeness ► Define migration priority
► Verify data with same service level as ► Define cut-over strategy
the old system ► Migration readiness check
► Verify new system is stable ► Migrate test data
► Define exception rules
► Migrate legacy data
Confirm Migrate

Governance Strategy
Roles & Responsibilities
►Engagement Partner - will provide

Engagement Senior strategic direction to the entire
Partner Leadership team engagement and will be overall
responsible for the project
Program
►Program Manager - will coordinate
Manager
Engagement with the project managers and track the
Director program progress and highlight
stakeholders on periodic basis
►Quality Assurance expert- QA Partner
Quality Assurance
Expert & Change Project Manager Project Manager to review key deliverables at each
Management Expert
milestone and provide inputs to
Data enhance overall quality
Migration a) Project
Manager - guide the project
Manager team regularly, monitor project
Process Experts/
Sector Exports progress, handle day-to-day
communication and make certain
Functional timely completion.
Functional Technical Heads ►Process/ Functional/ technical
Experts Experts Experts- bring in process/ sector/ SAP
Order to Procure-to- functional and technical expertise
Design to ABAP &
Cash Expert Pay Expert Basis ►Data Migration Manager- Monitor
Deliver Expert
(SD) (MM) Experts Core team Business and govern the data migration process.
(PP/QM)
Expand to members Team
Maintain
Record to Report Expert (PM)
Expert (FICO)
IT Team
Data Migration Manager

Our Team
Page 51
Our Proposed Team Structure
Engagement Partner Steering Committee Project Steering Committee

In steering committee meetings, facilitate decision ► Provide oversight and direction to the
making through: EY KDS Group engagement
► Oversight of work being done by EY team ► Drive internal effort
► Provide perspective on key issues ► Provide feedback on progress and support for
decision making
► Facilitate senior and middle management
Alok Raj Project communication
Sponsor ► Ensure resolution of escalations
► Perform ongoing reviews and approvals
Engagement Partner
Rajan Sachdeva Harish Agarwal
EY Technology EY EAST & Bangladesh
and MS Leader Leader Project Management Team
► Responsible for managing the project
► Review and steer project execution
EY SMR ► Coordinate on all project related issues
► KDS Group PMO team to publish status
Rudradeep Basu Rajesh Jaiswal
► Provide subject matter inputs across various processes Engagement Manager updates & perform monitoring tasks
SME
& solutions as required. Usually the capability leads
Cross-functional working
Core Team Members Core Team Members
(Manager & Consultants) committees
Core Team Members
► Responsible for onsite execution of project Process Champions ► Responsible for providing guidance and validating
(From Sales, Supply Chain, requirement and solution
Across Finance, Purchase, SAP HANA Champions Marketing, IT, Procurement,
Sales, Production, Quality & Operations, Finance)
Maintenance Technology specialists
System architecture specialists

Our Proposed Team
Rudradeep Basu Ankit Gupta Rajesh Jaiswal Raghav Kapoor Ashutosh Singh Anirban Mukherjee
Engagement Manager Solution Architect Solution Architect Subject Matter Expert (Finance) Subject Matter Expert (Logistics) Solution Architect (Technical)
Md Muiz Tasnim Taqui Arunava Deb

Mohamed Shakawat Hossain Biswajit Sarkar Aritra Sinha Atanu Basu Md. Shahnewaj Ahmed
Client Relationship Consultant: D2D
Delivery Manager Project Manager Consultant: E2M Consultant: P2P Consultant: O2C
Manager
Samrat Majumdar Manu Banik Soumyabrata

Consultant: R2R ABAP Lead Basis

R&R (Roles & Responsibilities)
Steering Committee
Engagement Partner Client Relationship Partner Quality Assurance Partner
Will provide strategic direction to the entire Will be responsible for maintaining client relationship and will QA Partner to review key deliverables at each
engagement and will be overall responsible for the form part of the steering committee. milestone and provide inputs to enhance overall
project. quality
Team Management Office
Program (Engagement) Manager Project Manager Process Champion
Will coordinate with the transformation One person from each team designated as project Manager, Guide Responsible for guiding the process team regularly,
Managers and track the program progress and the respective project teams regularly, monitor project progress, monitor project progress, handle day-to-day
highlight stakeholders on periodic basis. handle day-to-day communication and make certain timely communication and make certain timely completion.
completion.
Transformation
Functional Process Functional SAP System Architecture Lead SAP Technical Team
Brings in functional expertise to align business Brings in functional expertise in the Responsible for managing entire Will work with the functional team
Delivery
processes and creation of process flows. Help create respective areas to align business processes system and it’s architecture to ensure timely completion of
Test scenarios, master data preparation. with SAP . related activities customized objects.
SME (Subject Matter Expert)

Supporting
Team
Responsible for reviewing and guiding the delivery team

to achieve milestones and maintaining the quality of the
deliverables.

Project Governance Approach
Setting up Transformation Office (TMO) - The TMO functions as a central agency for monitoring and reporting of the project. The TMO will provide regular updates to
steering committee through steering committee meetings. The following approach shall be adopted for TMO activities.
Control the project Assess change Report project status Conclude the project
► Manage work-plan ► Identify changes ► Collect project status ► Finalreview and approval
Closure & Wrap-up

► Manage risk ► Document change ► Review and monitor status ► Assess project performance against plan
► Manage change management requests ► Report status and communicate ► Document lessons learned
(People development, ► Report change requests results (e.g., variances, risks,
Manage
► Archive project information

organization alignment & ► Track and report impact of issues, changes)
► Compile closure report
communication ) change ► Generate program-level reports
► Manage resources ► Release resources
► Manage change request ► Generate executive-level reports
► Manage quality lifecycle
► Track financials
► Manage third party vendors
Setting up governance mechanism – A three layered governance mechanism to be set up to monitor the project progress and deliberate on perceived or identified challenges
along with mitigations involving stakeholders from both KDS Group & EY.
KDS Group Monthly
EY
► Steering Committee ► Project Review ► Steering Committee
Project Steering Committee ► Program Manager
► Program Director ► Risk Management
► Project Manager ► Change Management ► Project Manager
Weekly ► Project Activities ► Program Manager & Project

► Project Manager Weekly Status Manager
► Change Management
► Core Team
► Status Reporting ► Implementation Team
Daily
► Project Manager
► Project Manager ► Daily Activities
Daily Standing Meeting
► Development team
► Core Team ► Daily Planning ► Implementation Team

Leading Steel Company
Process Transformation Based SAP Enablement
This announcement appears as a matter of record only. XXX

Hospet Steels Limited
Background
Process Transformation based SAP enablement
Hospet Steels Limited is a part of $3 billion Kalyani Group. Established in 1973, Kalyani Steels is a leading manufacturer of forging and engineering quality carbon & alloy
steels using blast furnace route.
In order to drive growth, client was carrying out a major capex initiative to increase their capacities and wanted a suitable IT platform to meet challenges related to:
► Process standardization across plants and companies
► Enhancing control effectiveness

► Centralization of IT system and master data
Client decided to implement SAP and was evaluating suitable partners who could assist them in this initiative
Key Challenges:
MODULES
► Standardization of processes across different business functions
► Finance and Controlling
► Reducing manual intervention in the processes
► End to end mapping of business processes including complex Indian taxation in the SAP system ► Material Management
► Minimizing process insufficiencies and delays ► Sales & Distribution
► Low control of processes in the system leading to audit and compliance issues ► Quality Management
► Production Planning
Key Highlights & Outcome

► SAP solution implementation
► Process alignment
► Implementation of Controls
► Solution Design and System Configuration
► MIS development

Select case studies – Steel manufacturers
A
ALarge
Large Steel
Steel Manufacturer
Manufacturer A
ALeading
Leading Steel
Steel Manufacturer
Manufacturer
(Hot
(Hot Metal)
Metal)
We
We were
were appointed
appointed by
by aa large
large steel
steel manufacturer
manufacturer to to perform
perform Internal
InternalAudit
Audit at
at
its
its plant
plant location.
location.As
As aa part
part of
of this
this process
process we
we brought
brought toto the
the notice
notice ofof We
We were
were appointed
appointed byby aa leading
leading steel
steel manufacturing
manufacturing company
company having
having
management
management significant
significant value
value adds.
adds. Some
Some of
of the
the value
value adds
adds are
are as
as follows
follows operation
operation across
across India
India and
and other
other countries
countries to
to perform
perform detailed
detailed reviews.
reviews.
Some
Some ofof the
the findings
findings brought
brought toto the
the notice
notice of
of management
management areare as
as follows
follows
►
►Introduced
Introduced the
the system
system ofof Fe
Fe balancing
balancing across
across various
various plant
plant within
within the
the
premises
premises ►
►Formation
Formation of of cartel
cartel byby transporters
transporters and
and overcharging
overcharging to to the
the company
company
►
►Discrepancies
Discrepancies inin Lab
Lab analysis
analysis vsvs billed
billed quantity
quantity for
for Fe
Fe grade
grade ►
►Acceptance
Acceptance of kick backs from vendor for various materials purchase
of kick backs from vendor for various materials purchase and
and
►
► Better weighing facilities resulting saving of overloading penalties
Better weighing facilities resulting saving of overloading penalties // dead
dead appointment
appointment of of civil
civil contractors
contractors
freight
freight ►
►Employees
Employees keptkept the
the contract
contract price
price lower
lower but
but inflated
inflated the
the subcontractor
subcontractor
►
►Identifying
Identifying opportunities
opportunities ofof consolidated
consolidated buying
buying and
and leveraging
leveraging upon
upon billing
billing by
by forging
forging // increasing
increasing the
the work
work done
done certification
certification
economics of scale
economics of scale ►
►Excessive
Excessive materials
materials being
being purchased
purchased and
and disposed
disposed off
off after
after 22 years
years at
at
►
►Rationalized
Rationalized vehicle
vehicle movement
movement // turnaround
turnaround time
time some locations
some locations
►
► Identified potential recoveries as per the service contract
Identified potential recoveries as per the service contract ►
►Forged
Forged quotations
quotations obtained
obtained forfor scrap
scrap sales
sales process
process
►
►Increased
Increased realization
realization in
in case
case of
of scrap
scrap realization
realization ►
► Material thefts and subsequent manipulation of
Material thefts and subsequent manipulation of physical
physical verification
verification
►
►Timely
Timely utilization
utilization of
of Cenvat
Cenvat input
input credit
credit

Select credentials for Iron and Steel Industry
Internal audit covering Procurement, Sales and Marketing, Production

Operations, Inventory Management, Costing, Contracts, Logistics and Internal audit covering Procurement, Sales and Marketing, Production
Uttam Galva Metallics Accounts & Finance Viraj Steel Operations, Inventory Management, Costing, Contracts, Human
Resources, Logistics and review of Treasury
Business planning and PMO
Internal audits and process reviews for mining and manufacturing

operations, review of Production and Operations, Procurement, Internal audits and process reviews of Production and Operations,
Sesa Goa - Vedanta Group Inventory Management, Sales and Marketing, Statutory Compliances, Kalyani Steel Procurement, Inventory Management, Sales and Marketing, Statutory
Scrap Management and Plant Maintenance Compliances, Scrap Management and Plant Maintenance
Monthly review of MIS.
Special Process reviews - Contracts and Services

JSW Ispat Steel Limited Project Concurrent Audit
Designing SOPs in SAP JSW Ispat Steel Limited
(Ispat Industries Limited) Pre audit of Purchase orders and Marketing
Enterprise Risk Management for the organization.
Internal audit for operations in India, Middle East and Africa

Internal Audit and process reviews for Procurement, Sales, Inventory Jindal Steel & Power focusing on Procurement, Sales and Marketing, Production
JSL management, Logistics Finance & Accounts, HR and Statutory
Limted Operations, Inventory Management, Physical verification, Costing
compliance
and Finance and CAPEX

Select credentials for Iron and Steel Industry
Internal audit covering Production, Sales, Procurement, Inventory Internal audit covering Production, Sales, Procurement, Inventory
Hospet Steel Kalyani Carpenter Steel
Management and Finance and Accounts Management and Finance and Accounts
Implementation of Activity Based Costing improving profitability of

Al Yamamah Steel Designing Standard Operating Procedures and ERP implementation
Uttam Galva Steel Limited products Review of and redesigning Management Information
Industries Company assistance (package selection and partner selection)
System for the organization.
Enterprise Risk Management and Management audits focusing on ERP implementation assistance and Designing Standard Operating
Balasore Alloys BSRM Steel (Bangladesh)
Production, Sales and costing. Procedures
Implementation of Enterprise Risk Management and workshops for

the implementation.
NMDC Assisted NMDC in conducting Enterprise Risk management Essar Steel
Assistance in internal controls certification.
SAP Controls review
Review of accounting for purchase, receipts, issue of materials, Usha Martin (Overseas
Adhunik Group Designing Standard Operating Procedures and Internal Audit
Payments, Debtors and Creditors entities)

Select credentials for Metals & Mining clients
Demand assessment – Coal till 2040 Business plan to assess synergies and integration of 3 different units
Rio Tinto India Strategic Direction Study Lloyds Steel ltd. i.e. company producing hot metal, HR / CR coils and power
Demand assessment – India Steel demand-2050 generation
Procurement and Logistics Transformation

Steel Authority Of India Spares Inventory Management and Working Capital reduction Viraj Steel Limited
Business Process Reviews
Steel industry forecast IT Effectiveness Review

Mitsubishi corporation BHP Billiton Iron Ore
Steel landscape for India 2020 Fuel Distribution Process Review
Kudremukh Iron Ore Pre - feasibility financial model for ductile irons spun pipes
Balasore Alloys Feasibility study
Company Limited (KIOCL)
Uttam Galva Steel Limited

Monnet Ispat Ltd. Business process improvement in operations Operations improvement and sales force effectiveness
Business Plan Development – Iron Nuggets Post Merger Integration - Identification of key differences in policies
Griffin Coal Mining/ and procedures, Preparation of Roadmap for integration of major
Kobe Steel Ltd. Market Assessment – demand and supply mapping
Lanco Infratech processes, Identification of key softwares being used and future
Action plan development
dependencies

Select credentials for Metals & Mining clients
SAP On going review covering Business Blueprint Review, ERP

Perform ERP Selection and SAP On going review covering Business
Configuration Review
Ispat Industries Ltd. Essar Steel Process Design Review, SAP Configuration review, Authorizations
Data Migration and Cut – over Strategy Review
Review and Data Migration Review
Training Programs
Perform ERP Selection and SAP On going review covering Business

BSRM Steels Ltd, Preparation of ERP Roadmap and
Jindal Steel & Power Process Design Review, SAP Configuration review,
Bangladesh Future State Process Definition
Authorizations Review
Definition of standard operating procedures, Assistance in ERP & IP Business Process Design Review
Al-Yamamah Steel
Selection, Project Management of ERP Implementation Shyam Steel SAP Configuration review
Industries Limited
Program Quality Assurance for ERP Implementation Authorizations Review
Optimizing ERP and other existing IT business and non business

Assisted in execution of Transformation led SAP Enablement applications
Kalyani Steel Sterlite Industries Ltd
IT Benchmarking with predetermined organizations
Study of IT function effectiveness & usage of key applications
Business Process Design Review

SAP Configuration review
Business Process Design Review
Konkola Copper Mines ERP Configuration Review
SAP Configuration review Balco Ltd
Plc/ Sesa Goa Limited Infrastructure Integrity Review
Authorizations Review
ERP Application Security Review
Data Migration Strategy Review

Credentials for Metals & Mining clients
ERP Enablement
SAP Ramco ORACLE
► Abhishek Industries Limited ► MAX Hypermarkets ► ITC - IBD ► Xerox Modicorp Limited
► Agilent ► Pantaloon Retail ► ICI Unichema ► Xerox Mexico Limited
► Alsthom ► Phoenix Lamps Limited ► ICI Explosives ► Cummins Engine Company
► Asian Paints India Limited ► Power trading corporation ► Tata Consultancy Services
► Benetton India ► Radico khaitan ► Dhandhanadhan Infotainment
► Daikin Industries ► Rallis India Limited ► Gontermann-Piepers
► D-MART ► Relaxo Footwear ► Fascel
► EID Parry ► SAP AG ► Idea Cellular
► Exide Industries Limited ► Samtel ► Asian Development Bank
► Excel Corp Care ► Steve & Barry’s ► Tata Infotech Limited
► Essar ► Solvay Pharma ► SRF Limited
► Goodlass Nerolac ► Sony Pictures ► SREI International Finance
► Glenmark Pharma ► Sudarshan Chemicals India ► Astra Zenca
► Givaudan ► Tamilnadu Petroproducts Limited ► LG Electronics
► Hindustan Motors ► Tara Ultimo ► Ballarpur Industries Limited
► ICI Paints ► The Andhra Pradesh Paper Mills
► IPCL ► The Walt Disney
► ISAGRO ► TVS Motors
► ISPAT Group ► Ultratech Cement Others MFG/PRO
► Kuoni India ► Usha International
► Lakshmi Precision Screws Limited ► Voltas Limited ► Alfa Laval ► Hindustan Lever Limited
► Landmark group ► Walt Disney ► Philips India ► Coca Cola
► Mother Diary ► Nirma Limited ► Ponds India
► Mahindra & Mahindra ► GPEC ► Godrej Soaps
► Indu Projects
► Bharat Bijlee
► Heritage Foods

Largest private sector company in India
Process Transformation Based SAP Enablement This announcement appears as a matter of record only. XXX
Background Reliance Industries Limited
The Reliance Group, is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 66 billion.
The flagship company, Reliance Industries Limited , is a Fortune Global 500 company and is the largest private sector company in India. The Group's activities span exploration Process Transformation based SAP enablement
and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail, infotel and special
economic zones.
Total number of employees were 50000+ with 15000+ SAP users
Time Period: 2 years
Key Challenges:
► Standardization of processes across multiple group companies catering to different business needs.
► Automation , optimization and acceleration of operations to maintain market competitiveness
► Reducing manual intervention in the processes
► End to end mapping of business processes including complex Indian taxation in the SAP system
► Minimizing process insufficiencies and delays MODULES IMPLEMENTED
► Low control of processes in the system leading to audit and compliance issues ► Finance and Controlling
► Delay in vendor payments and account receivables
► Material Management
► Sales & Distribution
Key Highlights & Outcome
► Quality Management
► SAP solution implemented for 42 Legal Entities ► Human Capital Management
► Integrated business process for all key functions leveraging the latest SAP technologies
► Document Management System
► More than 500 customized solutions for processes/reports were developed
► Complete automation of tax determination, compliance and post processing in SAP
► APO
► Optimized customer billing cycle time with mass level demand generation and notifications to customers ► EWM
► Automated workflows and triggers leading to increased efficiency and reduce cycle time of key processes ► BPC
► Fully customized pricing engine catering to all the group company requirements ensuring complete automation and better controls to enable world class sales and ► Business Intelligence
procurement process ► GRC
► Seamless integration of 18 satellite applications with SAP ensuring high level business efficiency
► Records and case management
► CRM

Thank you
ERNST & YOUNG LLP

22 Camac Street, Block B , 5th Floor
Kolkata – 700016, West Bengal, India
Ernst & Young Pvt Ltd is a company registered under the Companies Act, 1956 having its registered office at 22 Camac Street, Block C,
3rd Floor, Kolkata- 700016
© 2014 Ernst & Young LLP.

All Rights Reserved.
Information in this publication is intended to provide only a general outline of the subjects covered. It should neither be regarded as
comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Ernst & Young Pvt. Ltd. accepts
no responsibility for any loss arising from any action taken or not taken by anyone using this material.
Appendix

EY’s Metals Template for SAP
Order to Cash
Sales Order / Sales
Inquiry Technical Evaluation Quotation Delivery / Dispatch Billing / Excise Invoice Data Uploads
Contract
SAP Coverage a a a a a a a
Initial Product Feasibility Technical Evaluation Sheet Characteristics based Quotation Sales Order Processing Report Weighbridge Interface Excise Invoice print program Material Master –
EY Template (IFR) Report Processing Report Credit Limit related reports / Gate Out screen Transporter-wise Freight cost Creation/Extension
Coverage alerts Gate Pass report Customer Master
Gate Out Report Excise Master
Gate Out Reconciliation with Price Master
Delivery Open Sales Order
Road permit check
EY’s Accelerators
13 Custom Program Accelerators SD Data Cutover Strategy 5 Data Upload Programs
13 Template Business Process

Business Process Master List Template End User Manuals Testing Scenarios Metals Config Building Blocks 11 Security Authorization Roles
Documents

Order to Cash
Documents
Business Process Master List 11 Security Authorization Roles
Metals Config Building Blocks
Template End User Manuals SD Data Cutover Strategy
Testing Scenarios

Record to Report
General Ledger Sub ledger (AR/ AP/ Asset) Taxation Overhead Cost Controlling Product Costing Profitability Analysis Data Uploads
EY Template
Journal voucher print Customer Ageing Report Service Tax Register General Ledger –
Coverage Vendor Ageing Report TCS Certificate Creation/Extension
Vendor Balance Report Cost Element Master
Check print Ledger Posting
Cash voucher print Asset master
Sub Asset master
Cash Documents
Costing Data
EY’s Accelerators
8 Custom Program Accelerators FICO Data Cutover Strategy 7 Data Upload Programs

Documents

Record to Report
Documents
Template End User Manuals FICO Data Cutover Strategy
Testing Scenarios

Plan to Produce (Production Planning)
SOP & Long -Term Demand Management & Production Planning & Order Closing &
Shop Floor Execution Weighment Data Uploads
Planning MRP Control Settlement
EY Template MRP Controller based planning Charging plan Production Reports Reference Delivery Work Center
Coverage Rolling Plan Ingot wise production Functionality Bill of Material
Melting Plan declaration and in-process QC Interfacing for Weighment of Routing
Slitting Plan Production through In-house truck to account for coil wise Rate Routing
CTL Plan Subcontracting vendor based on weight distribution & goods Production Version
Characteristic based stock report service agreement receipt Characteristics upload
Coils Slitting & CTL interface for individual coil wise Creation of Dependencies
Slab Cutting goods receipt Creation of Configuration
Defect Correction for coil / Ingot Profile
Downtime breakup during
EY’s Accelerators production confirmation
Batch Numbering Enhancements
Flexible conversion of
Tonnage/pieces at production
order level
19 Custom Program Accelerators PP Data Cutover Strategy 8 Data Upload Programs

Documents

Plan to Produce (Production Planning)
Documents
Template End User Manuals PP Data Cutover Strategy
Testing Scenarios

Plan to Produce (Quality Management)
Incoming Material Manual Inspection-
Master Data In Process Inspection Finished Goods Inspection Quality Notification Data Uploads
Inspection Physical Sample
SAP Coverage
a a a a a a a
EY Template
Spectro Mobile Interface for Drill Down list of Inspection Spectro M9 Interface for Material Master-QM view
Coverage capturing RM chemistry Point Selection capturing FG chemistry Catalog & Selected Sets
TC for Finished coils MIC-Qualitative
MIC-Quantitative
Inspection Plan
Quality Info Record
Inspection MIC within routing
EY’s Accelerators
4 Custom Program Accelerators QM Data Cutover Strategy 7 Data Upload Programs

Documents

Plan to Produce (Quality Management)
Documents
Template End User Manuals QM Data Cutover Strategy
Testing Scenarios

Expand to Maintain (Plant Maintenance)
Preventive / Predictive Annual Shutdown Refurbishment
Master Data Breakdown Maintenance Calibration Maintenance Data Uploads
Maintenance Maintenance Maintenance
AP Coverage
a a a a a a a
Y Template Automatic Notification Functional Locations
Coverage generation from Measuring Point Equipment Master
entry if the input value is outside Bill of Material
the defined limit Work Center
Task List
Maintenance Plan
Measuring Point
Catalogs & Selected Sets
Class and Characteristics
Y’s Accelerators
1 Custom Program Accelerator PM Data Cutover Strategy 9 Data Upload Programs

Documents

Expand to Maintain (Plant Maintenance)
Documents
Template End User Manuals PM Data Cutover Strategy
Testing Scenarios

Expand to Maintain (Project Systems)
Cost Planning & Procurement : Material & Goods Issue / Service
Project Structure Confirmation / DPR Capitalization and Closure Data Uploads
Budgeting Services Entry
SAP Coverage
a a a a a a a
EY Template
Coverage Custom Report for Project Project Structure
Progress Analysis Plan Cost
Budget
Actual Data
EY’s Accelerators
1 Custom Program Accelerator PS Data Cutover Strategy 4 Data Upload Programs

Documents

Expand to Maintain (Project Systems)
Documents
Template End User Manuals PS Data Cutover Strategy
Testing Scenarios

Thank you
ERNST & YOUNG LLP

22 Camac Street, Block B , 5th Floor
Kolkata – 700016, West Bengal, India
Ernst & Young Pvt Ltd is a company registered under the Companies Act, 1956 having its registered office at 22 Camac Street, Block C,
3rd Floor, Kolkata- 700016
© 2014 Ernst & Young LLP.

All Rights Reserved.
Information in this publication is intended to provide only a general outline of the subjects covered. It should neither be regarded as
comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Ernst & Young Pvt. Ltd. accepts
no responsibility for any loss arising from any action taken or not taken by anyone using this material.

Partnering KDS Group Thru An S/4HANA Led Business Transformation Journey

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Partnering KDS Group Thru An S/4HANA Led Business Transformation Journey

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Partnering KDS Group thru an S/4HANA led

business transformation journey

10th October 2018

Ernst & Young Differentiators:

4 | Driving value through S/4HANA

Pioneers in deploying latest

Consultants in SAP Practice Globally; 15+ in EY Go-Lives Achieved on

5 | Driving value through S/4HANA

EY is one of leaders in S/4HANA implementation in South Asia and worldwide

6 | Driving value through S/4HANA

Subject: SAP S/4 HANA Project Hyper-care Closure Announcement

7 | Driving value through S/4HANA

8 | Driving value through S/4HANA

Sr. Year Area Award

16 2013 Global SAP Partner Impact Awards – Top Growth

9 | Driving value through S/4HANA

► Surya Roshni ► Essel Mining ► Eramet SA ► Vallourec Group

► Vedanta Aluminum Limited ► Mechel ► Severstal

► Viraj Profiles Limited ► Al Yamamah Steel Industries ► Shougang Concord Steel

10 | Driving value through S/4HANA

Background : KDS Group

12 | Driving value through S/4HANA

13 | Driving value through S/4HANA

► Sinter ► Ingots ► Plates

14 | Driving value through S/4HANA

15 | Driving value through S/4HANA

16 | Driving value through S/4HANA

17 | Driving value through S/4HANA

18 | Driving value through S/4HANA

Production UOM Operating parameters UOM Epoxy - Quality UOM

Credit Management: Credit Control: No Centralized credit management ►Monetary Impact

21 | Driving value through S/4HANA

PROCESS DESCRIPTION IMPACT

22 | Driving value through S/4HANA

PROCESS DESCRIPTION IMPACT

24 | Driving value through S/4HANA

PROCESS DESCRIPTION IMPACT

Min / Max Level:MinThe minimum

Inventory Valuation: Inventory

25 | Driving value through S/4HANA

26 | Driving value through S/4HANA

Key Pain Areas / Challenges Impact

PROCESS DESCRIPTION IMPACT

28 | Driving value through S/4HANA

PROCESS DESCRIPTION IMPACT

29 | Driving value through S/4HANA

Key Pain Areas / Challenges Solution

PROCESS DESCRIPTION IMPACT

30 | Driving value through S/4HANA

PROCESS DESCRIPTION IMPACT

PROCESS DESCRIPTION IMPACT

33 | Driving value through S/4HANA

Integrated Application for

**Futuristic – Once Digital Core in form of S/4HANA has been implemented

35 | Driving value through S/4HANA

Immediate Intelligent Integrated

Internally and socially connected and

Digital Future User Experience