Search for Supply Chain.. !

SAP Implementation Strategy for A Pharma Company

SAP Implementation Strategy for A Pharma Company MyConsultant recommended the implementation be undertaken utilizing the big ban... thumbnail 1 summary

MyConsultant recommended the implementation be undertaken utilizing the big bang approach over agreed time of implementation for Phase 1 and Phase 2:

On above basis, following scope of Installation and Implementation of the Software is finalized and agreed by the parties:

1.    Scope of SAP Installation and Implementation

The Standard SAP Software shall be installed and implemented by MyConsultant in following functional areas:

Phase 1:

  • Financials (FI)
  • Controlling (CO)
  • Sales and Distribution (SD)
  • Materials Management (MM)
  • HR - Payroll (HR)
  • Plant Maintenance
  • Quality Management
  • Warehouse Management


Phase 2 (commencement after 4 months of Phase 1 Go Live):

  • Project Systems (seven months)
  • Human Capital Management
  • Business Intelligence

with BASIS and ABAP

Above installation and implementation of the Software shall be done as per following details

Technical Scope

In general, MyConsultant technical work will involve the following:

·         During the Project, Installation of the SAP ERP system, where required, will be
          performed by MyConsultant technical consultants.

·         Develop role based security (Authorization) matrix for the users.

·         Guidance in development and testing of disaster recovery procedures in coordination
          with the hardware vendor. 

·         Diagnose and perform system stress/volume test and tuning during the implementation.

·         Develop relevant technical documentation of the Basis processes.

MYCOMPANY will be responsible for the following activities:

·         Networking and infrastructure set-up and administration will be the responsibility of
          MYCOMPANY and its networking vendor.

·         Backup and recovery activities and third-party software.

·         Help desk setup and administration

·         Cleanliness (i.e. accuracy and completeness) of data provided. Data will be prepared,
          and provided by MYCOMPANY in Excel spreadsheet format defined by MyConsultant for
          uploading to the SAP ERP system. 

·         Organizational Change Management/Process Change Management (OCM/PCM) &
          policy definitions and elaborations.  MyConsultant recommends MYCOMPANY set up a
          task force to undertake OCM/OCP activities during this project as this will be
           responsibility of MyCompany.

Interface Scope

·         Unless where specified in the business blueprint, there are no interfaces identified in this
          Scope of Works except to integrate SAP with time machines.

·         MyConsultant will provide assistance with the uploading of data provided by
          MYCOMPANY on specified Excel sheet formats into the SAP ERP system.

MyConsultant implementation team will be based at MYCOMPANY Office at implementation Site, for the duration of the project lifecycle. 

1.4 Training

Training shall be conducted on ‘Train the trainer basis’ as elaborated in point 3 below. MYCOMPANY will make all arrangements for MyConsultant team as highlighted in proposal document.

1.5  Functional Scope

The following table indicates the functional scope of this project which will be required to meet MYCOMPANY’s objectives. The precise details and processes will be determined, documented, and agreed upon during the Business Blueprint phase of the project.

The table below summarizes the essential functions performed within the various software components:





Accounting (FI)

General Ledger

·         Definition of chart of accounts

·         Full Journal processing

·         Month end processing

·         Compliance reporting (fiscal)

·         Group reporting (simple consolidation

·         Opening balances take-on

Accounts Payable

·         A/P processing (enquiry, payments)

·         Automated payment run/cheque printing

·         A/P reporting (aging, analysis)

·         Open-item take-on

·         Master data maintenance

Accounts Receivable

·         A/R processing (enquiry, cash receipt)

·         Customer correspondence (Statements)

·         A/R Reporting (aging, analysis)

·         Open-item take-on

·         Master data maintenance

Asset Accounting

·         Master record creation and maintenance

·         Depreciation Areas

·         Derived Depreciation Areas

·         Calculation of Interest

·         Valuation Methods

·         Depreciation processing

·         Asset acquisition, transfer, retirement and revaluation posting

·         Preparations for year-end closing in Asset Management

·         Carry out year-end closing in Asset Management

Bank Accounting

·         Basic Function

·         Master Data

·         Cash Balance Management

·         Payment Transactions

·         Information System


Controlling (CO)

Profit Center Accounting

·         Master data take-on

·         Profit centers and profit center groups processing

·         Profit center distribution and assessment

·         Balance carry forward for profit center

·         Direct data entry and allocations

·         Profit center planning and preparation

·         Integrated profit center planning

Cost Center Accounting

·         Revenue / cost element and cost center processing

·         Planned allocation and reconciliation

·         Actual allocation, distribution, reposting and assessment

·         Variance analysis

·         Reconciliation with Financial Accounting

·         Similarly handling the internal order postings.

Product Costing

·         Product cost planning

·         Cost object controlling

·         WIP calculation

·         Variance analysis

Overhead Orders

·         Master Data

·         Order Planning

·         Order Budgeting

·         Commitments and Manual Funds Reservations

·         Periodic Order Closing

·         Order Summarization

Overhead Projects

·         Master Data

·         Project Cost Planning

·         Project Budgeting

·         Actual Costs

·         Periodic Project Closing

·         Cost Information System

Materials Management (MM)


·         Requisitioning of non-stock /stock  items(ok)

·         Authorization (requisition release)

·         Purchase order processing(ok)

·         Basic contracts processing Including subcontracting(ok)

·         Purchase Order printing/output

·         Maintenance of Supplier Master data(ok)

·         Vendor management; info records(ok)

Inventory Management

·         Full inventory Management of Stock Items

·         Write-offs, adjustments, transfers

·         Physical inventory (stock counting)

·         Standard inventory reporting (slow moving; near expiry; abc analysis etc.)(ok)

·         QC process (quarantine) clearances (ok)

Invoice Verification

·         Goods receipt (for 1-way match)

·         Invoice verification (2 or 3-way matching)

External Services Management

·         Service master record

·         Service specification

·         Supply sourcing

·         Price comparison list

·         Service entry sheets

·         Work acceptance

Warehouse Management


Sales & Distribution


Master Data

·         Material Maintenance

·         Conditions

·         Agreements

Basic Functions

·         Free Goods

·         Pricing and Conditions

·         Availability Checks

·         Credit Management

·         Material Determination

·         Output Determination

·         Word Processing

·         Taxes

·         Account Determination


·         Maintenance of Master Data

·         Availability check

·         Credit Control

·         Contract and quotation processing

·         Sales Order Processing


·         Credit Memo Procedures

·         Down Payments

·         Billing request processing


·         Delivery processing

·         Picking

·         Packing

·         Goods issue


Foreign Trade

·         Basic Functions

·         Communications/ Printing

·         Import Processing

Sales Support

·         Basic Data

·         Sales Promotions

·         Sales Activities

Information System

·         Reporting

·         Planning

·         Interface to Logistics Information System (LIS)

·         Data Collection

·         Early Warning System

Human Resources (HR)

Personnel Administration

·    Personal Data

·    Payroll Data

·    Organizational Data

·    General

Organizational Structure

Work Schedule

Integration with other applications

·         Integration with time machines

Payroll – Gross Pay

·         Bases

·         Integration with Time Management

·         Shift Change Compensation

·         Activity with Higher Rate of Pay

·         Employee Remuneration Information

·         Wage Type Valuation

·         Incentive Wages

·         Factoring

·         Statistics / Key Figures for Cost Accounting

·         Continued Pay

·        Special Payments

Net Pay

·         Tax

·         Loans

·         Other Deductions

·         Determining the bank transfer amount

Final Payroll Processing

·         Data Medium

·         Cash Breakdown List

·         Remuneration Statement

·         Payroll Account

·         Payroll Journal

·         Data Transfer To Other Applications

Production Planning

Basic Data

·         Bills of Material

·         Work Center

·         Routing

·         Computer Aided Process Planning

·         Production Resources/ Tools

Sales and Operations Planning

·         Basic Data

·         Sales Plan

·         Production Plan

·         Distribution Requirements Planning

Master Planning

·         Material Forecast

·         Demand Management

·         Master Production Scheduling

·         Long – Term Planning (Simulation)

Material Requirements Planning

·         Basic Data

·         Planning Execution

·         Procurement Proposal

·         Planning Evaluation

Production Orders

·         Order Planning

·         Order Processing

·         Order Closing

·         Information System

Plant Maintenance (PM)

Equipment and Technical Objects

·         Equipment

·         Functional Logistics

·         Object Networks

·         Bills of  Material (Plant Maintenance)

·         Additional Functions

Preventive Management

·         Task Lists

·         Maintenance Plans

Maintenance Order Management

·         Maintenance Notifications

·         Maintenance Orders

·         Capacity and Resource Planning

·         Confirmations

·         Maintenance History

Maintenance Projects

·         Project Structure (Plant Maintenance)

·         Networks (Plant Maintenance)

·         Project Management (Plant Maintenance)

Service Management

·         Installed Base Management

·         Call Management

Information System

·         Reporting

·         Planning

·         Interface to Logistics Information Library (LIL)

·         Data Collection

·         Early Warning System

Quality Management (QM)

Quality Planning

·         Basic Data

·         Inspection Planning

·         QM Control in Logistics

Quality Inspection

·         Inspection Lot Creation

·         Results Recording

·         Inspection Lot Completion

·         Appraisal Costs

·         Sample Management

Quality Control

·         Information System

¨       Reporting

¨       Planning

¨       Data Collection

¨       Logistics Information Library

¨       Early Warning System

·         Active Quality Control

¨       Quality Level

¨       Control Charts

¨       Update of Vendor Evaluation

Quality Certificates

·         Basic Data for Certification

·         Certificate Creation

Quality Notifications

·         Creating Quality Notifications

·         Processing Quality Notifications

·         Nonconformity Costs

Phase 2

Human Capital Management


·         Workforce Requirement and Advertising

·         Applicant Administration

·         Applicant Selection

·         Planning an employee’s professional career

·         Looking for suitable candidate to fill vacant posts

Training and Development

·         Appraisals

  • Administration
  • Compensation Plans

¨       Compensation Packages

¨       Fixed Compensation

Personnel Costs Planning

Business Intelligence

Business Information warehouse


Enterprise Planning and Budgeting

Project Systems (PS)


·         Operative Structures

·         Templates


·         Document Processing

·         Projects Texts


·         Costs

·         Budgets

·         Actual Costs

·         Automatic and Periodic Allocations

Revenue and Earnings

·         Planning Revenue

·         Actual Revenue and Forecast

·         Results Analysis


·         Planned Payments

·         Actual Payments and Forecast


·         Time Scheduling

·         Network Plan Scheduling


·         Planning

·         Shift Planning

·         External Services Management


·         Bill of Materials Transfer

·         Procurement

·         Delivery


·         Confirmation of Network Activities

·         Time Sheet

·         Decentralized Confirmation

Information System

·         Project Reports

·         Graphs

·         Trend Analyses

·         Responsibility Accounting

·         Interface and Enhancements

Productivity Pack


Training guides

2    Deliverables 

Deliverables by Phases



Phase 1 – Project Preparation

·         Project Plan


·         Project Organization


·         System Landscape


·         Project Standard & Procedure


·         Project Charter


Phase 2 – Business Blueprint

·         Business Blueprint


·         Refined Project Plan


·         Data Conversion and Interface Strategy

MyConsultant & MYCOMPANY

·         “AS-IS” and “TO-BE” Processes

MyConsultant & MYCOMPANY

Phase 3 – Realization

·         System Configuration


·         Test Scenario & Result Preparation/System Testing


·         End User Documentation/Training Material


·         Data Conversion Programs

MyConsultant & MYCOMPANY

·         Data Conversion Plan

MyConsultant & MYCOMPANY

·         Data Cleansing


Phase 4 – Final Preparation

·         Train-the-Trainers


·         End User Training

MYCOMPANY / MyConsultant

·         Data Conversion

MyConsultant & MYCOMPANY

·         Help Desk Organization Setup


·         Cutover Plan


Phase 5 – Go Live & Support

·         Verify Productive System

MYCOMPANY / MyConsultant

·         Project Review


·         Application Support



·          One training class per module will be given based on the “Train the Trainer” concept.

·          All deliverables where MyConsultant has the primary responsibility are within the scope of work and MyConsultant will be responsible for their delivery.

·          MYCOMPANY will be involved in all activities for which MyConsultant has main responsibility

·          All deliverables where MYCOMPANY has the primary responsibility will be carried out and delivered by the MYCOMPANY project team and key users where applicable.  However, MyConsultant consultants will be available to provide assistance and advice when required

·          MYCOMPANY project team members and key users will prepare and document the user procedure manual with support from MyConsultant. MYCOMPANY team members will assist key users in producing all required deliverables

·          The “Train the Trainer” approach to training will be adopted, where MyConsultant will provide training to key users of MYCOMPANY. The key users will then train the end users on the processes and usage of the system.

3    Trainer and End User Training

During the project, MyConsultant will conduct Train the Trainer (MyConsultant recommends a minimum of 2 trainers per module) training for the project team.  Training will be based on MYCOMPANY’s configuration, and conducted with the respective work groups, typically for a period of 3 - 7 days per module, over a period of approximately three (3) weeks.

MYCOMPANY Trainers will in turn conduct End User Training during the final preparation phase.

It is MYCOMPANY’s responsibility to ensure that the required training infrastructure is available for all training and training related activities. For example training servers, classrooms, projectors, network connections, and PC workstations, including PCs and communication facilities for Consultants should be in place, and trainers and trainees should be scheduled prior to commencing training activities.

MyConsultant will help develop training materials (Course presentations; exercises; evaluation grid; etc.) for the end user trainings.

No comments