Process Overview - Power Transmission & Distribution

business

12.09.2020

SD Overview 07/05/2021 Page 1

Objective

• To give overview of business processes mapped for a client in Power

Transmission & Distribution business.

Page 2
Agenda

• Broad level business process

• BOQ details of client contract
• Project structure & costing
• Material life cycle
• Subcontractor billing life cycle
• Client billing

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Agenda

• Broad level business process

• BOQ details of client contract
• Project structure & costing
• Material life cycle
• Subcontractor billing life cycle
• Client billing

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Broad level business process

Estimation &
Start Contract award
Tendering

Supply Contract Erection Contract

PR + RFQ + PO PR + RFQ + WO

Mfg Clearance, Material Usage,

Inspection call, WCR, Subcon RA
Dispatch, GR Bill

JMC + Approval +
MRHOV HOTO

Sale Invoice +
Payment

End

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Agenda

• Broad level business process

• BOQ details of client contract
• Project structure & costing
• Material life cycle
• Subcontractor billing life cycle
• Client billing

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BOQ details of client contract

• BOQ has specific schedule number & its item to be delivered

• Specific unit for few items as CKM – Circuit KM
• Payment release milestones -
• 70 % after material supply
• 30 % after erection, testing & commissioning (ETC)
• Sample BOQ -

• Supply contract has –

• Main item – Only for billing
• Child items – Only for delivery
• Erection contract has –
• Items with billing only & it gets triggered from JMC
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Agenda

• Broad level business process

• BOQ details of client contract
• Project structure & costing
• Material life cycle
• Subcontractor billing life cycle
• Client billing

Page 8
Project structure & costing

• Project structure with separate WBS for Supply & Erection

• Cost estimation done with unit cost (BPO) method
• In BPO, materials & services used are actual (not generic masters) masters
which will be used in procurement cycle

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Agenda

• Broad level business process

• BOQ details of client contract
• Project structure & costing
• Material life cycle
• Subcontractor billing life cycle
• Client billing

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Material life cycle

• PR for materials generated manually from material supply sale order

• RFQ , quote finalization & PO processing
• Industry specific processes
• Manufacturing clearance
• Inspection call
• Dispatch instruction
• MRHOV – Material receipt & handing over voucher
• Material reconciliation & recovery from subcontractor

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Material life cycle

PO Issued to
Start
Supplier

Mfg clearance
issued to Supplier Issued against Sales
Order

Supplier
manufactured the
materials Client hands it over
for execution Material Receipt
And Handing Over
Voucher (MRHOV)
Inspection call
issued to client Inventory as
Customer Inventory
(Non-valuated)

Client inspection

Transferred to
Subcon ref to WO
Dispatch clearance
issued by client

Material Material consumption &

reconciliation excess consumed End
Goods receipt, during RA Bill recovered
inspection + Inventory
(Valuated)

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Agenda

• Broad level business process

• BOQ details of client contract
• Project structure & costing
• Material life cycle
• Subcontractor billing life cycle
• Client billing

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Subcontractor billing life cycle

• RFQ & quote finalization – out of SAP

• Auto WO creation based on services planned in BPO for WBS
• Material requirement for Subcon execution & its reconciliation based on
services planned in BPO for WBS
• WCR to measure work executed by Subcon
• RA billing based on approved WCR
• Payment abstract processing for Subcon RA bill

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Agenda

• Broad level business process

• BOQ details of client contract
• Project structure & costing
• Material life cycle
• Subcontractor billing life cycle
• Client billing

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Client billing

• Supply contract
• Child components are procured & delivered against sale order
• Billing is generated with ref to main item, no linkage if child components
are delivered or not

• Erection contract
• JMC is entered for BOQ items, having approval process
• While creating “bill certify” document (SO) the item quantities fetched
from JMC
• Billing is generated with ref to bill certify document

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Thank You

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