BUSINESS REQUIREMENTS REPORT for ORACLE ERP …pdf.usaid.gov/pdf_docs/pnaeb358.pdf · ·...

Aqaba Community and Economic Development (ACED) Program –iBusiness Requirement Report for Business Requirements for ORACLE ERP System in Aqaba Special Economic

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25th of July 2010

This publication was produced for review by the United States Agency for InternationalDevelopment. It was prepared by Talal Abu-Ghazaleh & Co. Consulting (TAG-Consultants) andAECOM International Development under the Aqaba Community and Economic Development(ACED) Program.

BUSINESS REQUIREMENTS REPORT forORACLE ERP SYSTEM in AQABA SPECIALECONOMIC ZONE AUTHORITYSOW-102-2010 - RFTOP-021-2010

AQABA COMMUNITY and ECONOMIC DEVELOPMENT(ACED) PROGRAM

Aqaba Community and Economic Development (ACED) Program –iiBusiness Requirement Report for Business Requirements for ORACLE ERP System in Aqaba Special Economic

Zone Authority.

BUSINESS REQUIREMENTS REPORT FORORACLE ERP SYSTEM IN AQABA SPECIALECONOMIC ZONE AUTHORITYSOW-102-2010 - RFTOP-021-2010

AQABA COMMUNITY and ECONOMIC DEVELOPMENT (ACED)PROGRAM

DISCLAIMER

The author's views expressed in this publication do not necessarily reflect the views of theUnited States Agency for International Development, AECOM International Developmentor the ACED Program.

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ACED Program Frequently-Used Acronyms and Abbreviations

(Not all of the following will appear in every ACED Program document)

ACED Program Aqaba Community and Economic Development Program (USAID)ACT Aqaba Container TerminalADC Aqaba Development CorporationADS Automated Directive SystemsAIDAR USAID Acquisition RegulationAIIE Aqaba International Industrial EstateANREPCO National Real Estate Projects CompanyAPC Aqaba Ports CorporationASEZ Aqaba Special Economic ZoneASEZA Aqaba Special Economic Zone AuthorityASRI Aqaba Skills Readiness IndexASYCUDA Automated System for Customs DataATASP Aqaba Technical Assistance Support Program (USAID)AUC Aqaba University CollegeAZEM Aqaba Zone Economic Mobilization Project (USAID)AGDTF Aqaba Garment Development Task ForceBAFO Best and Final OfferBDC Business Development CenterBDS Business Development ServicesCAI Changi Airports InternationalCBO Community-Based OrganizationCEDAW Convention on the Elimination of All Forms of Discrimination Against

WomenCMT Cut-Make-TrimCO Contracting/Contracts OfficerCOB Close of BusinessCOP Chief of PartyCP Cost ProposalCRM Customer Relationship ManagementCSO Civil Society OrganizationCSR Corporate Social ResponsibilityCTO Cognizant Technical OfficerD&G Democracy and GovernanceDCA Development Credit AuthorityEG Economic GrowthEGRA Early Grade Reading AssessmentEO Economic OpportunitiesEOI Expression of InterestEPC Executive Privatization CommissionERfKE Education Reform for a Knowledge Economy (USAID)EU European UnionETF European Training FoundationFAR Federal Acquisition RegulationFDI Foreign Direct InvestmentFDR Fixed Daily Rate

Aqaba Community and Economic Development (ACED) Program –ivBusiness Requirement Report for Business Requirements for ORACLE ERP System in Aqaba Special Economic

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FHR Fixed Hourly RateFTA Free Trade AgreementFTZ Free Trade ZoneFZ Free ZoneFZC Free Zones CorporationGCC Gulf Cooperation CouncilGDA Global Development AllianceGDP Gross Domestic ProductGEM Gender Entrepreneurship MarketsGIS Geographic Information SystemGOJ Government of Jordan (the central governing entity of Jordan)GPS Global Positioning SystemHR Human ResourcesICDL International Computer Driving LicenseICT Information and Communications TechnologyINJAZ Economic Opportunities for Jordanian Youth ProgramIPR Intellectual Property RightsIQC Indefinite Quantity ContractISP Internet Service ProviderIS-ASEZA Institutional Support to ASEZA (EU funded project)IT Information TechnologyJD Jordanian DinarJITOA Jordan Inbound Tour Operators AssociationJIB Jordan Investment BoardJNA Jordan National AgendaJNCW Jordanian National Commission for WomenJSCED Jordan Standard Classifications of EducationJUSBP Jordan-United States Business PartnershipJUSFTA Jordan-United States Free Trade AgreementKOJ Kingdom of Jordan (the country within its physical boundaries)KSA Kingdom of Saudi ArabiaLCDD Local Community Development Directorate (ASEZA)LCL Less than Container LoadLECP Local Employee Compensation PlanLOE Level of EffortLTTA Long-Term Technical AssistanceM&E Monitoring and EvaluationMENA Middle East and North AfricaMFI Microfinance InstitutionMIS Management Information SystemMOF Ministry of FinanceMOL Ministry of LaborMOPIC Ministry of Planning and International CooperationMOTA Ministry of Tourism and AntiquitiesMOU Memorandum of UnderstandingMSME Micro, Small & Medium EnterprisesNCHRD National Center for Human Resources DevelopmentNDA Neighborhood Development ActivityNDC Neighborhood Development Committee

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NET Neighborhood Enhancement TeamNICRA Negotiable Indirect Cost RateNGO Non-Governmental OrganizationNTS National Tourism StrategyPACE Participatory Action for Community EnhancementPMP Performance Management PlanPPP Public Private PartnershipPR Public RelationsPSD Private Sector DevelopmentR&D Research and DevelopmentQA Quality AssuranceQC Quality ControlRFP Request for ProposalRFQ Request for QuotationSABEQ Sustainable Achievement of Business Expansion and Quality (USAID)SEO Search Engine OptimizationSIYAHA The Tourism Project (USAID)SFU Satellite Factory UnitSME Small and Medium EnterprisesSOW Scope of WorkSTTA Short-Term Technical AssistanceSWOT Strength, Weakness, Opportunities and ThreadsTA Technical AssistanceTBD To Be DeterminedTO Task OrderTOT Training of TrainersTP Technical ProposalTRIDE Trilateral Industrial DevelopmentTVET Technical and Vocational Education and TrainingUSAID United States Agency for International DevelopmentUSD United States DollarVTC Vocational Training CenterWAEDAT Women’s Access to Entrepreneurial Development and TrainingWEPIA Water Education and Public Information for ActionWTO World Trade OrganizationWTTP Workforce Technical Transformation Program

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CONTENTSI. DOCUMENT DESCRIPTION ..................................................................................................... 1

A. REVIEWED MODULES ................................................................................................................................................... 1

II. HUMAN RESOURCES DIRECTORATE ............................................................................... 2

A. CURRENT CHALLENGES ............................................................................................................................................... 2

B. FUTURE NEEDS AND PROCESSES ................................................................................................................................. 4

C. DATA QUALITY AND DATA FACTS ........................................................................................................................... 6

D. RECOMMENDED ORACLE E BUSINESS SUITE MODULES........................................................................................... 6

E. PRE-REQUISITES AND SUB PROJECTS ......................................................................................................................... 8

III. FINANCE DIRECTORATE ................................................................................................... 10

A. CURRENT CHALLENGES ........................................................................................................................................... 10

B. FUTURE NEEDS AND PROCESSES ............................................................................................................................. 13

C. DATA QUALITY AND DATA FACTS ........................................................................................................................ 14

D. RECOMMENDED ORACLE E BUSINESS SUITE MODULES........................................................................................ 14

E. PRE-REQUISITES AND SUB PROJECTS ...................................................................................................................... 14

IV. SUPPLY CHAIN MANAGEMENT – PROCUREMENT .................................................... 15




D. RECOMMENDED ORACLE E BUSINESS SUITE MODULES ....................................................................................... 16


V. MAINTENANCE AND ASSET MANAGEMENT .............................................................. 19




D. RECOMMENDED ORACLE EBUSINESS SUITE MODULES......................................................................................... 20


VI. LESSONS LEARNT AND TACTICS FOR SUCCESSFUL IMPLEMENTATION ......... 22

VII. ASEZA’S LEGACY SYSTEM AND INTEGRATION METHODOLOGY ....................... 24

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I. DOCUMENT DESCRIPTION

The aim of this document is to provide an overview regarding the current status of the OracleERP systems implemented in ASEZA in order to provide an indication of which modules arecurrently implemented; which features are being utilized compared to those available in the newrelease that would add value; problems and issues facing implementation; reasons why previousimplementation was not successful; and recommendations on how to better utilize the featuresbased on the business processes.

The document also lists the business requirements needed to achieve full automation in apaperless environment, along with the proposed revisions of the business cycles that might benecessary to ensure automation.

It also defines integration requirements and methodology to other systems in ASEZA andrecommends best way of communication.

This document will identify all business and system gaps that require revision or amendmentswith advantages and disadvantages of each recommended approach, and will stress some setupsand data quality implemented at the system in order to fix or reconfigure to gain best utilization.

a. Reviewed ModulesThe modules that were reviewed as part of our work were as follows:

Table 1: ASEZA’s Modules Reviewed

Modules Reviewed

FinancialsGeneral LedgerAccount PayablesAccount ReceivablesFixed AssetsCash ManagementHRMSHuman Resources (PER)PayrollHuman Resource IntelligenceSCMPurchasingInventoryProperty ManagementProperty Management (PN)


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II. HUMAN RESOURCES DIRECTORATE

Department EBS Installed Efficiency % Third PartyApplication Major Issue

Employee Services Yes 50% No Absence managementDaily WorkersServices

Yes 10% Payroll is running onExcel.

Accuracy and fullmanagement of laborrecords

Recruitment No 0% ManualPlanning No 0% ManualTraining No 0% Manual

a. Current challenges

1. Employee Services and Administration

ASEZA is utilizing the minimum features of the core human resources module delivered byOracle HRMS where a lot of information and processes are not mapped to the system and evenbeen deactivated. Details of our findings are as follows:

Absence management is not working in order to capture leaves, vacations, and allabsence related items because of inaccurate employee balances and balances beingcarried over between years. Leaves are not connected with balances and are notentered, such as short leave, maternity leave, feeding hours, etc. ASEZA is currentlyentering the leaves history and transactions into the system; however balances stillneed to be validated.There is no proper follow up of critical business items related to expiry or end datessuch as delegation, retirement, probation period, contract’s expiry, etc.Assets are not being accurately tracked by personnel.Employee types and associated categories are not shown in the system. The systemhas only one employment type which is “Employee.” This doesn’t providedifferentiation between various employee types such as Labor, Permanent,Delegated Employees’, etc.Disciplinary actions store and follow up is not fully implemented.Automatic letter generation is not activated so all letters and communications aredone manually.Partially inactive employees are not treated properly in the system. For thoseemployees that are on unpaid vacation, study or any transaction that doesn’t allowthem to be on their duty then the system should have an easy way to manage themand strop/release their salaries in the right way.There is no integration between with Oracle UCM for automatic archiving and theretrieval of required documents.


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Temporary or daily workers are entered into the system under the sameemployment category which affects the security of the system and labor servicessection having access to all permanent employees.

2. Strategic Staffing to Hire (Recruitment)

ASEZA’s recruitment department is not utilizing any of the features of Oracle e-Business Suite.The currently installed system and modules are only serving minimum requirements of thisdepartment. Our analysis found the following issues:

Manual recording and tracking of recruitment requisitions.Manual creation and recording of vacancies.Manual creation of applicants and assigning them to vacancies and openings.Tracking of only some of the available recruitment KPIs such as Time to Recruit,Cost per Vacancy, etc.

The above mentioned functions have standard screens within the current setup of ASEZA HRMSbut are not being utilized at all. The current business challenges which were identified are as thefollowing:

Recruitment is an ad-hoc process and not based on a clear manpower planningprocess.Filtering and screening of candidates is manually done and there is no clear criteriafor applying such conditions other than some pre-made computer based tests.

3. Performance Management and Training

Currently the ASEZA planning department has no system available to it in order to automatethe following:

Manpower planning and budgeting.Performance appraisal management for conducting and analyzing performance

It was also noted that:

There is no integration between planning and recruitment plans and budgets.Job descriptions are not available for all available positions in ASEZA.There is no competency inventory within ASEZA.There is no mapping between positions and competencies in ASEZA.


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b. Future needs and processes

1. Employee Services and Administration

Management, tracking and reporting of all leaves through the systems.Automatic validations of leave balance and carry over plans.Automatic allocation and calculation of leave balances is currently based on the yearsof experience and any additionally applied rules. This should also comply with laborlaw as well i.e. less than five years of service deserves 14 days of annual leave, morethan five years of service deserves 21 days of annual leave. ASEZA could alsoconsider some special conditions for higher level management and those with abalance of 30 plus days of annual leave.Automatic generation of letters from the system without the need of manualintervention.Automatic alerts (messages) for required functions to be circulated via emails tonotify responsible people about expiry, renewal or attendance or occurrence of anytransaction needs to be trackedA complaint has been raised from ASEZA users about the complexity and thenumber of screens that need to be browsed in order to apply an action. Having afew consolidated screens with the most required fields to be entered would resolvethis. R12 has a new feature that allows the customer to collect fields from multiplescreens and have them put into one simple screen. This would facilitate the day today transactions for ASEZA users.Full integration with Oracle UCM to retrieve, attach and manage employees’ filesand attachments.

2. Recruitment Department

Ability for managers to raise recruitment requisitions.Ability for managers to track their vacancies and applications attached to them.Ability for managers to track the interview process of each vacancy application.Ability to link recruitment requisitions into available manpower plans and budgetsattached to them depending on the yearly recruitment budget.Ability for the recruitment department to receive and control recruitment activities.Ability to receive resumes online through ASEZA’s website as word/PDF format andenforce applicants to fill specific a pre-approved template.Enable applicants/candidates search function in order to parse templates andresumes which will allow content search.Ability to track KPI’s and other measures related to recruitment such as time to filla vacancy, cost to fill a vacancy, turn over percentage, etc.Ability to filter candidates per their skills, education, experience and rate themaccordingly.Ability to attach online exams to vacancies.


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3. Performance Management and Training

Identify skills and competencies gaps in a professional environment usingsophisticated tools such as Oracle Performance Management toolAbility to conduct manpower planning workshops based on business requirementsand newly established projects.Ability to measure corporate strategic goals and map them to ASEZA employees.Ability to match and map between performance management and trainingadministration with learning management in order to create accurate and reasonabletraining needs analysis (TNA) based on:

o Skills GAP measured by performance appraisal.o Newly established projects and required skills.o ASEZA’s strategic goals to be delivered through employees.o Personal development plans (PDPs).o Succession planning and career paths.

Ability to conduct simple and comprehensive performance appraisal workshops.Ability to track employees’ training records.Ability to conduct training evaluation for attended courses.Ability to measure employees’ performance after attending a training course.Ability to allocate training courses to different locations such as cost centers,employees, directorates, etc.Ability to manage training resources and have full tracking and availability of them.Ability to manage training provider’s information.Ability to store training offerings from different providers for a full year forcomparison and availability reasons.Ability to categorize training courses per function or directorate.Ability to attach competencies delivered by each training course.Ability to manage enrollment and attendance of a training course.Ability to generate certificates of attendance for a training course.Ability to link training course financial or service commitment to end of serviceprocess.

4. Payroll Administration

There are many elements used to transfer amounts to third party organizations such asbanks or government agencies where this would be better to be handled through paymentmethod distribution.

There is a standard function within Oracle Payroll that allows the payroll clerk to identifydifferent payment options for a single employee i.e. an employee can transfer 50% of his/hersalary to a bank and the rest to another bank. For example: court decisions enforcingemployees to pay fixed amounts of their salaries. Such issues can also be handled throughthe payment distribution function.


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c. Data Quality and Data Facts

1) Payroll setup has been done for five years only and it shows as invalid. Payroll needsto be extended as the last valid payroll period is for August 2008.

2) Payroll salary transfer or cheque payments are still registered to be paid through “” while should be “ ”.

3) The balance for “ ” should be reviewed to meet socialsecurity and labor laws and regulations.

4) The termination condition for basic salary element setup should be ‘final close’ andnot ‘last standard processes.

5) The PTO (Paid Time Off) setup which is used to manage leaves and vacation balancesis utilizing the standard system formulas which don’t meet ASEZA’s requirements.

6) Position hierarchies and organization hierarchies are not configured.7) Employees count on the production is according to the following:

a. Permanent employees count is 1339b. Daily Workers count is 1928

8) There are 129 employees with no position attached to their assignment profile.9) There are 43 employees with no job attached to their assignment profile.10) There are 20 employees that are not assigned to any payroll within their assignment

profile.11) There are 199 payroll elements distributed as the follows:

a. 1 direct payment classification elementb. 27 earning classification elementsc. 15 information classification elementsd. 155 pre-tax deduction classification elementse. 1 voluntary deduction elementf. 30 non-recurring elementsg. 169 recurring elements

ASEZA has uploaded records of daily workers into the HRMS system without implementingany security or validation process to identify who is a daily worker or who is a permanentemployee except for the payroll assignment and allocation.

This means that the employee services department that is responsible for daily workers canaccess permanent employees’ records and vice-versa which is a major security breach andalso allows human errors and mistakes when entering and validating information.

It is highly recommend to create a new employment type/placement for daily workers andto apply proper security and access options to the profiles of both categories of employees.

d. Recommended Oracle e Business Suite Modules

1. Oracle HRMS Self-ServicesThis module guarantees a paperless environment with efficiency collecting, approving andcirculating all employee related information, benefits, tasks and leaves. This module is web


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based and can be accessed internally and externally using the Internet with proper securityconfiguration.

Nevertheless, before implementing this module all employees’ personal information andleave balances should be accurate in order to gain the benefit from using the self-servicehuman resource module (SSHR).

Available features that SSHR provides are:

Update/view all personal information.Update/view contact information.Submit leave/vacation requests.Review leave/vacation historical transactions and available balances.View salary slips (payroll) with all available history.View available openings/vacancies.Participate in performance appraisal if Oracle Performance Management (OPM) isimplemented.Managers view for their subordinates.

1) Oracle HRMS iRecruitment

This module automates the whole process of recruitment and all its related processes orfunctions where it can provide:

Vacancy requisition creation by managers or recruitment managers.Online candidate registration through ASEZA’s website and mapping to OracleHRMS (Online iRec.).Recruiting managers (section heads) can view online all candidates/applicants repliedto their concerned openings.Manager can filter candidates and create suitability matching to select best matchingcandidates.Publish openings internally for ASEZA employees with proper filtering, approval,matching and deadlines.

The implementation of this module has no prerequisite and can be included in Phase 1.

2) Oracle Performance Management

To help enterprises set SMART individual goals to match with their business goals andgrowth strategy, Oracle Performance Management (OPM) provides an integrated set ofperformance management functions.

Using Oracle Performance Management, enterprises can:

Define objectives and track them throughout the year.Align individual objectives with those of the enterprise.Evaluate an individual's competencies and progress on objectives at a point in time.


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Enable feedback on an individual's performance by multiple participants.

3) Oracle Learning Management

Oracle Learning Management (OLM) is the best way for Oracle E-Business Suite customersto:

Improve workforce performance.Ensure partner channel sales and service readiness.Increase revenue through training product sales to customers.

OLM is an enterprise learning management system (LMS) that lets organizations manage,deliver, and track training participation in online or classroom-based environments.

Learners can find the learning they need, and take the learning in the most appropriatedelivery mode (in a classroom, in a virtual classroom, or e-learning).

Managers can automate key business flows – from order processing to training delivery;from performance appraisals to training assessments – and keep tabs on their team'slearning and development. Instructors can manage their own schedules, classes, and rosters.

Executives can measure the effectiveness of learning activities and ensure alignment withorganizational objectives. Learning Administrators can efficiently manage all the catalogobjects, learners, and related resources from a centralized system.

e. Pre-Requisites and Sub Projects

1) Performance Management and Learning Management Implementation

ASEZA needs to work on creating a detailed job description inventory including allavailable positions in two different ways:

i. Functional job descriptions that describes in words general job tasks,qualifications, and requirements. These should be shared with the employeesupon joining or used within posts and job opening advertisements.

ii. Technical job descriptions that contains skills and competencies required byeach position and the required level of professionalism at each competenceto deliver the job properly i.e. communication skills (4/5), oracle databaseadministration 11g (3/5) or by using the approved rating scale of ASEZA.

ASEZA needs to work on creating training courses catalogue that contains at least:i. Training course names.ii. Delivered skills and competencies with their rating scales i.e. Project

management foundation course (Project Management (3/5), Self-Management(4/5)


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By having both of the above ASEZA will be able to effectively implement OraclePerformance Management (OPM) and Oracle Learning Management (OLM) modulesdelivered by Oracle HRMS.

2) Oracle HRMS Self-Services Implementation

A major function of the HRMS Self-Services is leave requests which requires that all leavebalances be up to date and accurate in HRMS prior to activating this function.

The current HRMS doesn’t have all information about employees’ such as emergencycontacts, home address, phone numbers, etc.

The implementation of this module will be an opportunity for employees’ to update theirinformation directly through the self-service which will eventually update all employeepersonal related information.

3) Oracle HRMS iRecruitment Implementation

No major pre-requisites are available in order to implement such a module except theavailability of templates to be published over the website and this can be developed duringthe implementation projects.

Nevertheless, publishing the iRecruitment over ASEZA’s website might require extrahardware to be installed within a secured area i.e. the DMZ, in order to guarantee thesecurity of the Oracle eBusiness Suite server.


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III. FINANCE DIRECTORATE

DepartmentEBS

InstalledEfficiency %

Third Party

ApplicationMajor Issue

General Ledger Yes 50% No Budgeting and Planning

Account Payables Yes 60% NoBatch processing and intersection

with Payroll

Accounts

ReceivablesYes 50% No

Receiving information from third

party applications

Fixed Assets Yes 40% No- Asset Coding

- Assets Listing

Cash Management Yes 60% No Disable inactive banks

Property

ManagementYes 30% No

CAD Viewer Setup and

Numbering Management Issues

Payroll

AdministrationYes 70% No

Performance and deactivation on

invalid elements

a. Current Challenges

1. General Ledger

ASEZA’s current chart of accounts structure is ‘Company-Cost Center-Account-Project-Future’ which is serving major needs of the business. Nevertheless, cost centers are onlyutilized at the directorate level which might limit the accuracy and the control of budgetsat lower levels.Inventory balance are imported to general ledger manually through excel sheets due tothe fact that inventory has a third party application.Budgeting is not enabled at the general ledger level.ASEZA needs to decide on the budgeting method to be utilized:

o Top-Down Budgeting Methodo Bottom-Up Budgeting Methodo Middle-Out Budgeting Method

When reporting sub ledger transactions through general ledger, reports come with nodescription and need extra work to be formatted properly.

2. Accounts Receivables – Revenues

A major challenge facing the accounts receivable team is when utilizing custom reports,which have a major bug where it sums up the credit memo lines/balances, instead ofsubtracting them from within total balances. This would be considered a customizationbug and reports needs to be redeveloped or validated against this bug.


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Some of the customized reports execution parameters are not working and thuswhatever you choose has no difference to the output of the report.There is an aging report that is available on Discoverer, which is required by the businessto have the duration of the aging report. This report should have a period start date andend date.Accounts receivable has a function against invoices for installments which is notactivated. This might be needed by the business at a certain stage.ASYCUDA is a major system collecting payments which has no integration with accountsreceivables and currently, daily manual transactions are entered to the accountsreceivables as one invoice by the profit center/directorate.Work permits are a revenue stream for ASEZA and this has no system with which itintegrates.There are other functions/directorates that are generating revenues which are notintegrated to accounts receivables such as registration and licenses fees.

3. Accounts Payables - Expenses

There are some deactivated cost centers/accounts from within purchasing that are stillshowing at the accounts payables, which need full deactivation at a higher level in ordernot to show in any other sub ledger.Maximum payment format number is 25, which might not cover all transactions and thusthis needs to be increased.When changing/amending supplier’s names, all related historical information does notshow for that specific supplier which is a major issue.There is no integration between payroll and accounts payables where payroll paymentsare prepared on excel and then entered manually by the payables super user.Payroll/HR employees are not recognized by accounts payables.ASEZA prefers an automated wire transfer instead of preparing payment instructions forpayroll transactions where currently only paper directions are generated by runningmultiple reports that need to be filtered and distributed again to banks in order tocomplete transactions. On the other hand, having the wire transfer through OraclePayroll standard function electronic file transfer (EFT) will facilitate this function andminimize the efforts at the end of each month.The system is giving multiple sequences for same transaction and mainly for invoiceswhen changing the general ledger date.Reports that are generated by discoverer are not matched for the same period whichshows a problem in the query behind these reports, which affects the accuracy of suchinformation.JOD cheques cannot be generated by the system which requires a revision to the setupof cheques generator.

4. Cash Management – Bank Accounts

Currently there are no major issues in cash management other than fixing of some bankdata, such as:


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o Removing deactivated banks.o Revising bank information and matching between bank names and

descriptions as there is a mismatch with one bank’s information.

5. Fixed Assets

Asset location flex field is defined but not utilized in asset location assignment.Current asset location setup is not mapped to actual business requirements and haslimitations which require redesign.Barcodes were utilized previously but were not loaded and updated correctly into fixedassets.Construct in Process (CIP) assets are processed as work in process (WIP) until fullyconstructed then utilized under capitalization and subject to depreciation.ASEZA didn’t upload its entire assets to the system through the fixed assets module.Some assets are stored in the inventory and not considered as assets, some assets arenot stored anywhere and some assets which are tangible are stored within fixed assets.A full enumeration of all assets should be done and stored to the system. This mightaffect the implementation and accuracy of other systems such as enterprise assetmanagement.

6. Property Management

There is a major challenge in property management in the numbering of the leased landsafter sorting and portioning from temporary to a permanent number which is related tosetup.The CAD Viewer is not fully functioning.Data needs to be validated and requires a quality check.Property Management is partially used at ASEZA and needs a full health check, datacleansing and setup amendment to be fully functioning in addition to intensive training.

7. Payroll Administration

In general the payroll system has no major gaps or malfunctioning. Some minor issues cameto light such as:

The formula for end of services is inaccurate and calculates one extra day.Partially suspended employees need to be maintained by using a better procedure.Social Security has some wrong calculations if an employee has multiple changes onhis/her salary.There is some redundancy in payroll register report which need to be revised andcorrected.There is no security related to the salary button as other personnel employees can seeemployees’ salaries.Payroll takes long time to be executed.The payroll register report is executed from the desktop and not from inside theapplication.


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b. Future Needs and Processes

1. Account payables and payroll

It has been identified that the accounts payables department are undertaking manytransactions related directly to employees which should be either the responsibility of thepersonnel or payroll department.

Only non-payroll expenses should be managed through account payables department suchas per diems, travel, accommodation, etc. Items that are deducted or paid through payrollshould be managed either by personnel or payroll.

One of the major findings that require prompt action is deductions related to banks, GSMOperators or couriers. These deductions should be managed fully through the payrolldepartment. The following scenario illustrates the current and future situation:

An employee has a mobile coverage up to 40 JODs/month, and then ASEZA received themonthly report from the GSM Operator:

Current Situation: There is an employee within finance department that looks for eachemployee’s premium, deducts this from the current bill and then sends it to payroll fordeduction.

Future: Employee premiums, coverage or allowance are stored either at the employee levelor at the eligibility level. When the bill is received from the GSM Operator, all that needs tobe done is to upload the amounts into employees profiles (Deduction Element) and it willdeduct the variance automatically through the next payroll run.By this, time is saved and duplication eliminated.

1. General Ledger – Budgeting

It’s highly recommended to utilize one of the standard budgeting methods that are bundledwithin the General Ledger and the most comprehensive one should be middle-outbudgeting method which is a combination of the top-down and bottom-up methods. Forbudgeting and planning a business decision needs to be made for:

Approved budgeting method.Budgeting drill down which determined to what level the budget should go and what kindof cost centers and account structure should be affected.Automatic formulas for budget allocation.

2. Accounts Receivables

It is highly recommended that all legacy systems and third party applications that arecollecting money and generating revenues within ASEZA be integrated. An online interfacewith the systems that are responsible for generating revenues and receiving payments andmake a journal entry of generated revenues at the end of each day will guarantee accuratereporting and consolidation.


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A systems and its integration methodology are mentioned in detail in section VII.

c. Data Quality and Data FactsCurrently, the financial system has no data quality issues except for the propertymanagement modules for contracts and leases that should be revised, restructured andassigned proper sequences and numbering schemas.

d. Recommended Oracle e Business Suite ModulesCurrently ASEZA has no requirements for implementing extra modules for the Financialsand Accounting Directorate. The only identified requirement is to activate and implementthe available general ledger budgeting functions.

e. Pre-Requisites and Sub Projects

Sub projects and pre-requisites are identified as follows:

1) Fixed Assets

ASEZA needs to make sure to collect information of all available assets that are maintainedthrough the fixed assets module. Currently, there is an intersection between fixed assets,(including buildings, lands and other tangible assets) and other assets stored at the inventorysystem.

All items have been purchased by ASEZA and those that are not directly consumed such asstationary should be stored in Fixed Assets module such as laptops, hard disks, airconditioners, printers, scanners, etc. All these items are fixed assets that need to be stored,depreciated and even destroyed or sold at any certain stage and thus should be recorded inthe fixed assets module.


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IV. SUPPLY CHAIN MANAGEMENT – PROCUREMENT

Department EBS Installed Efficiency % Third PartyApplication Major Issue

Purchasing Yes 30% No Procure to Pay Cycle is notfully implemented

Inventory No 0% Yes

a. Current Challenges

1. Purchasing Department

Oracle Purchasing is implemented and utilizing minor functions which are mainly generating andtracking P.Os. There are no major issues but extra functions need to be activated such as:

Budget validation should be automatic with proper encumbrance function.RFQ analysis has not been implemented and is required.Purchase Order (PO) lines do not accept discount percentages or values to bestored. This is a functionality which is highly required.Sales Tax (seven percent) doesn’t show on the POs.Items catalogue should exist with proper item tracking.RFQ cannot be deleted from the system.Some accounts that are closed from within the general ledger still shows inpurchasing which causes purchases on invalid accounts.Vendor performance should be activated.Web ADI should be used to upload items.There should be batch processing for items that need to be purchased.

2. Inventory Management

ASEZA is currently using a third party application for inventory management which is notintegrated with Oracle eBusiness Suite Purchasing. ASEZA is using a standard governmentalinventory and supplies management system. The following are issues and missing functionalitiesin the current system:

ASEZA is utilizing its own item coding system which should be mapped to allapplications including Oracle eBusiness Systems.The receiving process of items and goods needs to be automated and propermatching methodologies in combination with purchasing department need to beapplied which will depend on the type of purchase and the amount.The ability to track items within the inventory with a proper physical items structurewithin the inventory.The ability to transfer items from one store to another.Comprehensive reporting on inventory items and consumptions.Inventory planning and coordination with consuming parties.Item movements and tracking records.


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b. Future Needs and Processes

Oracle Purchasing is the application for professional buyers that streamlines purchase orderprocessing while strengthening policy compliance. It is a key component of Oracle AdvancedProcurement.

At the heart of the Oracle Advanced Procurement suite, Oracle Purchasing provides a rich storeof policy and supplier information, an enterprise class automation platform, and a robustworkbench for buying professionals.

ASEZA needs to make sure that the following are implemented and in place:Automate the Entire Procure-to-Pay Cycle - Define suppliers and agreements; thenautomate the entire purchasing cycle from purchase order to settlement.

It’s highly recommended to fix bugs and problems mentioned within current challenges insidethe purchasing module and implement the new required features for vendor performance andRFQ analysis in order to gain best benefit from the purchasing module.

On the other hand, which also fits into ASEZA strategy of paperless environment, werecommend implementing the modules detailed in section D further below.

Having a proper inventory with accurate data will facilitate the job of purchasing department byproviding online information about available items instead of circulating so many letters to issueone internal requisition or even a purchase order.

c. Data Quality and Data Facts

Currently within purchasing department there are no major data quality issues except for someaccounts that are deactivated and still appearing when creating new purchase orders.

d. Recommended Oracle e Business Suite Modules

1. Oracle iProcurement

Oracle iProcurement is the self-service requisitioning application that controls employeespending. Oracle iProcurement provides a Web-based shopping system that allows employees tocreate, manage, and track their own orders while the purchasing department retains centralcontrol. This helps to ensure that policies and preferred pricing agreements are reflected inevery transaction. Easy ordering and seamless workflow provide better service, while non-sourced or off-catalog spending gets the attention it needs from buying professionals.

Benefits:

Streamline employee ordering: eliminates error-prone paper processes with self-service ordering, while improving productivity and control.


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Enforce purchasing policy: enforces policies with control and governance support.Slash procurement costs: lowers procurement costs by cutting transactionoverhead, controlling maverick spending, and realizing the full value of preferredsupplier agreements.

2. Oracle iSupplier Portal

Oracle iSupplier Portal is the application that structures all supplier communication through asecure internet-based portal.

Phone calls, faxes, and e-mails with suppliers’ waste time, introduce errors, and create latency inthe supply chain. Oracle iSupplier Portal, with its platform for online collaboration, provides upto date information regarding purchase orders, delivery information, and payment status. Thetwo-way collaboration enables suppliers to submit change requests, ship notices, payments, andprofile data which reduces processing costs.

Benefits:

Create closed-loop purchase order collaboration: improves service, eliminateroutine inquiries, and offload inventory management by sharing information withsuppliers online.Simplify fulfillment and payment: reduces receiving problems with advance shipmentnotices, capture savings with online invoicing, and improving service from suppliersby sharing delivery and quality data.Efficiently ramp and maintain suppliers: provides suppliers with web portal accessand online registration and self-service profile updates.

3. Oracle Inventory

Oracle's Inventory Management provides advanced, real time inventory transactions & visibilityfunctionality for a wide variety of business types. Oracle Inventory provides flexible andconfigurable transactional support without compromising your global inventory visibility, productgenealogy integrity or multi dimensional inventory visibility, while reducing the costs associatedwith inventory handling and distribution.

Benefits:

Provides real time global inventory visibility and enable users to find products byowner, location, cost, project, lot, serial number and other material attributes suchas grade.Increase operational efficiency by streamlining inventory management processessuch as replenishment, order fulfillment, manufacturing, inventory counting, andservice through tailored user interfaces, business processes, active alerts, andintelligent messaging.Quickly react to recalls, quality issues and inquiries through global product genealogycompliance for both lots and serial numbers.Full integration with Oracle e-Business suite applications including OrderManagement, Procurement, Discrete Manufacturing, and Service.Compliance support for electronic records and electronic signatures.


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User interfaces designed for high volume materials management data entry.Consigned, vendor managed and project-based inventory tracking.Comprehensive costing methods.

e. Pre-Requisites and Sub ProjectsFor the current scope of work there are no sub projects or pre-requisites needs to beimplemented prior to fixing and maintaining current issues unless ASEZA wants to implementiProcurement. If this is decided, then an items catalogue needs to be defined and re-engineeringprocess of procurement cycle needs to be conducted.


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V. MAINTENANCE and ASSET MANAGEMENT

DepartmentEBS

InstalledEfficiency %

Third Party

ApplicationMajor Issue

Maintenance No 0% No No System in place

a. Current ChallengesASEZA’s maintenance department is not currently using any system to manage its work, with allinformation, processes, actions, engineers and spare parts being managed through experiencedengineers and some hardcopy manuals.

ASEZA maintenance department is in need of a system to track:AssetsEngineers/LaborCosts

ASEZA Maintenance department is responsible for the maintenance of the following areas:Infrastructure maintenance, which consist of streets, walls, gardening, revolution flag,etc.ASEZA buildings maintenance.Streets lighting maintenance.Traffic lights and traffic signs maintenance.Fleet maintenance and heavy equipments maintenance.Furniture production and maintenance.Border centers maintenance.

b. Future Needs and Processes Maintenance should be automated and follow international standards by:

Having maintenance plans for all maintainable assets separately, depending on itsuniqueness, situation or instructions by manufacturers.Implementing preventive maintenance techniques and their parameters and counterin order to be automatically notified of maintenance period.Allowing internal maintenance requesters to open a ticket through web applicationin order to achieve the paperless environment vision and in order to trackmaintenance KPIs such as response time, maintenance duration, maintenanceattached costs (Direct and Indirect), etc. or any KPI important to ASEZA.Having the ability to track maintenance engineers or labor availability, occupationand utilization percentage.Having the ability for automatic assignment allocation on predefined maintenancecategories and engineers/labor skills. As such, if there is a problem in one of theACs, then the system by default will know who are the capable personnel


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(maintenance engineers) to deliver this task and their availability as well, and thenassign this work order to them.

c. Data Quality and Data FactsCurrently there is no system implemented and data quality cannot be judged.

d. Recommended Oracle eBusiness Suite ModulesOracle’s full solution for Maintenance and Asset Management includes the following areas:

1) Oracle Enterprise Asset Management (Oracle eAM) supports sophisticated,condition-based maintenance strategies for property, plants, and public infrastructure.Oracle eAM's single-instance design ensures best practices and quality complianceglobally, eliminates excess and obsolete spare parts inventories, promotesenvironmental, health and safety policies, smoothes coordination of business functionsand maintenance.

2) Oracle Property Manager streamlines and automates lease administration and spacemanagement, enabling better management of real estate portfolio. Oracle PropertyManager offers a comprehensive solution that lowers costs, maximizes financialperformance, and provides complete visibility into investments for improved decisionmaking and reporting capabilities. The cornerstone of Oracle's Real EstateManagement solution, Oracle Property Manager is part of the Oracle E-Business Suite,designed to integrate and work together.

3) Oracle Asset Tracking is an asset lifecycle management application that providestracking, visibility and control of dispersed assets for capital-intensive companies.Oracle Asset Tracking maximizes asset utilization and return on investment byautomatically synchronizing the operational and physical events of assets with thefinancial updates in Oracle Assets.

As part of the Oracle E-Business Suite, Oracle Asset Tracking offers tight integration with otherproducts to provide a comprehensive, reliable and efficient asset lifecycle tracking application.This enterprise-wide integration helps achieve a single source of truth for enterprise assets whilereducing the total cost of ownership.

The implementation of asset management especially enterprise asset management is highlyrecommended, but there should be a clear record of all assets stored and tracked properlybefore start utilizing Oracle eAM. Oracle eAM also provides a single repository of portfolioplanning, projects, leasing, space allocation, tenant services, and facilities managementinformation.

It also provides lean maintenance and quality compliance which reduces overstocking and assistslifecycle management by monitoring and effectively controlling capital asset performance fromspecification and procurement, commissioning, and maintenance, to retirement. Oracle eAMimproves return on capital assets by integrating physical with financial aspects and supportingdeep collaboration between project lifecycle and service lifecycle operations


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The implementation of eAM Self-Service will also automate all maintenance requests and reducepaper work and phone calls which will aid in the aim of achieving a paperless environment inASEZA.

e. Pre-Requisites and Sub ProjectsIt’s highly recommended to start a sub-project to work on the fixed assets module that is existsand is implemented already within the financials and to:

List down all available assets and store them within the system.Create proper asset tracking coding, location management and all neededinformation to identify asset location. This can be achieved with proper locationmanagement for assets and does not require by default to purchase Oracle AssetTracking modules.Identify assets that require maintenance.Implement Oracle Enterprise Asset Management


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VI. LESSONS LEARNED and TACTICS for SUCCESSFULIMPLEMENTATION

After conducting a system and processes health check and understanding ASEZA businessrequirements with strategic goals. The following have been identified as lessons learned fromprevious experiences and from the findings of this document which are:

There should be better understanding of all system features before approving anysolution design document in order to agree on the best solution that guaranteesbetter efficiency and productivity of personnel. For example, many tasks have beenassigned to the expenses department that should be done through payroll,decreasing the effort by at least 40%While deciding on the assets to be collected and included in the system, ASEZAshouldn’t consider only the lands and buildings as the only assets, but shouldconsider any non consumable item that has been purchased and used by ASEZA asan asset i.e. laptops, printers, desks, etc.While discussing the activation and implementation of GL Budgeting feature, ASEZAshould identify the major objective of having such a system and accordingly decideon the methodology to be implemented, not just activating one of them and ignoringthe pre-requisites from the business and application.While implementing the talent management modules, a business process engineeringexercise should take place because the data requirements for such projects are verycomplicated and cannot be extracted from legacy system or by individual efforts, andit requires some HR professional and experts to apply such an assignment. So manyprojects start with implementing such modules and got frozen due to lack of dataand information.Upgrade process from 11.5.9 into R12 is not an easy process and there should be anintensive testing for all features especially within finance modules to the change ofapplication’s concepts and setups.Property Management modules should be utilized in a way that ASEZA plants andtransferable assets captured properly and maintained through Property Managementand its highly recommended to activate and implement the CAD Viewer for moreuser usability and the friendly interface to be utilizedIts highly recommended to have intensive on job and practical training coursesinstead of theoretical and lab training courses in order to guarantee better userunderstanding and work on actual test scenarios that are mapped to their businessand requirementsThere should be a periodic system utilization health check with data quality healthchecks in order to guarantee that users are utilizing and using the system properlyinstead of collapsing suddenly if the system wasn’t used in the right way. The checkcan be a preventive action to make sure that the efforts spent are not lost.There was a misuse of HRMS functions and features and this project needs specialattention to Human Resources Directorate employees and system as well to makesure that a success story will happen, where by implementing/fixing the availablefeatures with proper training and attention to the personnel, it will make adifference to the quality of this department and will eliminate overload.


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Technically there should be proper analysis of all required modules in order tounderstand hardware requirements before acquiring the software due to capacityissues. i.e. for publishing iRecruitment Server you need an extra Web Server to beplaced within the DMZ area with SSL configurationThe upgrade process has two options:o Use the standard upgrade path provided by Oracle Corp., which is

recommended, but might face many issues and bugs during the process due tosome data quality and setups issues. This might increase the upgrade timeframe and effort, but eventually will end successfully but with extra efforts andtime

o Use a fresh installation with setups migration manually or using standardOracle tools such as Oracle iSetup, but this have the risk of not transferring aspecific setup item to the new instance which might not appear in the businessor MIS tests and make an issues in the features

Both can be used but both have some identified risks to be considered.

Aqaba Community and Economic Development (ACED) Program –24Business Requirement Report for Business Requirements for ORACLE ERP System in Aqaba Special Economic Zone Authority.

VII. ASEZA’S LEGACY SYSTEM and INTEGRATION METHODOLOGY

ASEZASYSTEM

Platform Database Application Business Requirements Integration Level

Intranet Microsoft Win SQL Server SharepointASEZA Internal services likesalary slip, vocation request,leave request, etc.

Two way integrationStored Procedures through web services.

CRM Microsoft Win SQL Server ACC Pac Direct Payment on FinancialSystem Two way integration

Sales Tax Microsoft Win SQL Server VB.net Direct Payment on FinancialSystem Two way integration

Income Tax Microsoft Win SQL Server VB.net Direct Payment on FinancialSystem Two way integration

Warehousing WMS Microsoft Win SQL Server ASP.net Direct Payment on FinancialSystem Two way integration

EVR Microsoft Win SQL Server ASP.net Direct Payment on FinancialSystem One way integration

ERPS Microsoft Win SQL Server ASP.net Direct Payment on FinancialSystem Two way integration

Asycuda Microsoft Win Oracle So Class Direct Payment on FinancialSystem Two way integration

GIS AIX Oracle ArcSdeFinancial Check for specificland Through AWAD, not direct to IFS.

Time attendance Microsoft Win SQL Server Oracle Appl. Attendance for employee withpayroll module One way integration

AWAD Microsoft Win Oracle Oracle Appl.

Services: customer financialcheck, full financialinformation for ASEZAcustomer

One way and Two way Integration

Inventory Microsoft Win Oracle Oracle Appl. Direct integration withpurchasing Two way integration

Website Microsoft Win Microsoft MySQL Through e-Payment Gateway One way Integration

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