Project Report on E-Automation Budget Transfer ( CS Developers )

7/28/2019 Project Report on E-Automation Budget Transfer ( CS Developers )

1/23

CS DEVELOPERS1

Running head: E-Automation Budget Transfer

E-Automation of Project Budget Transfer in Essar

CS DEVELOPERS

Sharda University


2/23

CS DEVELOPERS2

EXECUTIVE SUMMARY

The objective of the proposed project is to E-automize the budget transfer.All the transactions wo

uld be automatically transerredwhich would reduce the human effort,the output would be mord re

liable and effiient,moreover it would save a lot of time and would make the work easier.

ESSAR is a company that works in many different dimensions thus to look after all the transactio

ns is not an easy task but with the help of the proposed system the transactions would be more qu

icker and more precise and accurate too.

For all the transactions to be made a form would be filled which would contain all the vital detail

s hence it minimizes the risk of dataloss.

The proposed system would increase the output,reduce the risk,it would manage the transactions

in a better way and give the best optimum results.


3/23

CS DEVELOPERS3

TABLE OF CONTENTS

S.NO TOPIC PAGE NO.

1. COMPANY INFORMATION 4

2. INTRODUCTION OF COMPANY 5

3. PROJECT PROPOSAL 7

4. TEAM CONTRACT 10

5. HANDLING CONFLICT 12

6. PROJECT RISKS AND ITS IMPACTS 13

7. FLOW CHART AS IS VS TO BE PROCESS 16

8. BUDGET TRANSFER 18

9. GANTT CHART , PAYBACK PERIOD 19

10. NET PRESENT VALUE 20

11. RETURN ON INVESTMENT 21

12. PROCESS OF BG TO CUSTOMER 22


4/23

CS DEVELOPERS4

COMPANY INFORMATION:

The Essar Group is a global conglomerate and a leading player in the sectors of Steel, Energy

(Oil & Gas and Power), Infrastructure(Ports, Projects& Concessions) and Services (Shipping,

Telecom, Realty and Business Process Outsourcing). With operations in more than 25 countries

across five continents, the group employs 75,000 people and has revenues of over US$ 27billion.

Essar is a leading EPC contractor with global presence. In India, it operates through its wholly-

owned subsidiary Essar Projects (India) Ltd. The company is supported by a specialized team of

1,100 engineers with expertise in diverse sectors. The company has a strong Procurement

function, with a vendor base of around 15,000 suppliers. Its Construction capability is

underpinned by its ability to mobilize and manage large numbers of laborers across multiple

sites, along with access to one of the largest construction equipment fleets in India. The company

has a strong business development team with international offices in its target markets.

INCITATION :http://www.essar.com/
http://www.essar.com/http://www.essar.com/http://www.essar.com/http://www.essar.com/


5/23

CS DEVELOPERS5

INTRODUCTION OF COMPANY:

Essar Projects Limited (EPL) is a world class-leading Engineering, Procurement & Construction

(EPC) contractor offering innovative execution and project delivery solutions for projects of

scale and complexity whilst simultaneously managing interfaces with licensors and technology

partners to its clients in multiple sectors.

In India, it operates through its wholly-owned subsidiary Essar Projects (India) Ltd. It operates

through eight Specialized Business Units (SBUs) aimed at leveraging the companys sectorial

expertise and track record. Each of these businesses/ SBUs Power, Hydrocarbons, Civil &

Buildings, Minerals & Metals, Offshore &Subsea, Pipelines & Terminals, Ports & Jetties, and

Heavy Engineeringis run and managed by a team that has first-hand experience of delivering

large projects on an EPC basis in its core sector.

The company has established itself as an EPC company of repute and is bidding and winning

projects internationally to expand its global footprint. Its revenue for FY2012 was US$ 2.2billion and Order Book stood in excess of US$ 6 billion as on 31stMarch 2012.

Essar Projects India Limited (EPIL), execute its project by having full control over Project

Budget which is maintain over the ERP (Enterprise Resources Planning) system using SAP

(Sources, Application & Product) system. It uses SAP systems Project System (PS Module)

through WBS element (Work Breakdown Structure). Based on project scope & various business

scenarios, EPIL needs is felt to change/ transfer/ enhance Project Budget in this SAP system.

However currently it has a Standard Operating Process (SOP) for the Project Budget transfer

(PBT) using Manual Request form by its requestors, for project budget transfer covering various

scenarios.

INCITATION :http://www.essar.com/
http://www.essar.com/http://www.essar.com/http://www.essar.com/http://www.essar.com/


6/23

CS DEVELOPERS6

PROJECT PROPOSAL:

We are a team from Sharda University

Team members

1) NITISH KUMAR

2) MOHIT KADIAN - TEAM LEADER

3) KUMAR NALIN

4) SANCHIT RANAPROJECT MANAGER

5) ABHINN KUNDU

6) SHIVAM BHARDWAJ

7) RISHABH PANDEY

8) ROHIT DUA

9) RISHABH MOHAN VERMA.10) MOHD. HANEEF KHAN.

11) VISHAL TIWARI

Company :Essar , It is one of the MNCs in India employing more than 90,000

employees

Company Description: coal mining, construction etc., Right now , company Is venturing

into real estate We are in Finance dept. We will be working as web developers.

INTRODUCTION:

EESAR was established in 1990s by the RUIAs . It has more than eighteen thousand

crore of turnover . It is one of the largest MNCs in India with more than 90,000

employees . It has Strategic Business Unit (SBU),there are eleven SBUs few of them are

construction , power , oil and hydrocarbons , reality (real estate business) , communication ,

projects.


7/23

CS DEVELOPERS7

PROJECT PROPOSAL:

We are a team from Sharda University

Team members

1) NITISH KUMAR2) MOHIT KADIAN - TEAM LEADER

3) KUMAR NALIN

4) SANCHIT RANA - PROJECT MANAGER

5) ABHINN KUNDU

6) SHIVAM BHARDWAJ

7) RISHABH PANDEY

8) ROHIT DUA

9) RISHABH MOHAN VERMA.

10) MOHD. HANEEF KHAN.

11) VISHAL TIWARI

Company :Essar , It is one of the MNCs in India employing more than 90,000

employees

Company Description: coal mining, construction etc., Right now , company Is venturing

into real estate We are in Finance dept. We will be working as web developers.

PROJECT SCOPE:

E - Automation of project budget transfer.


8/23

CS DEVELOPERS8

TEAM CONTRACT

TEAM NAME : CS DEVELOPERS

These are the terms of group conduct and cooperation that we agree on as a team.

COMMITMENTS:

We agree to

Be honest and realistic in planning and reporting project scope schedule etc.

Operate in a proactive manner , anticipating potential problems and working to

prevent them before they happen.

Keep the team members informed and focus on what is best for the project as awhole.

MEETINGS:

We agree to

Keep issues that arise in meetings in confidence within the team unless otherwise

indicated.

Be honest and open during meetings.

Encourage a diversity of opinions on all topics.

Give everyone the opportunity for equal participation.

Be open to new approaches and listen to new ideas.

Avoid placing blame when things go wrong . Instead we will discuss the process

and explore how it can be improved.

CONDUCT:

Problem solving and decision making : we agree to

Everyone to participate

Encourage all ideas and new concepts

Build on each others ideas

Make feasible decisions based on data.

Discuss criteria before making decision.


9/23

CS DEVELOPERS9

HANDLING CONFLICTS:

Regard conflict as normal and as an oppourtunity for growth.

Listen openly to others point ofview , understand the interest and desire of every

individual.

Acknowledge valid points that other person has made.

Seek to find some common ground for agreement.

State our point of views and our interest in a non-judgemental and non-attacking

manner.

MEETING PROCEDURES:

Meetings will begin and end on time.

Team members will come to the meetings prepared.

Agends items shall be discussed at the end of each meeting.

Each member is assigned their respective tasks.

If a team member can not attend the meeting he/she should inform before hand

to the authority or send a representative.

As per the clauses , if any individual fails to fulfill the contract then he/she will be

discarded immediately from the team.

PROJECT RISKS AND ITS IMPACTS :


10/23

CS DEVELOPERS10

The most common project risks are:

Cost risk, typically escalation of project costs due to poor cost estimating accuracy and

scope creep.

Schedule risk, the risk that activities will take longer than expected. Slippages in

schedule typically increase costs and, also, delay the receipt of project benefits, with a

possible loss of competitive advantage.

Performance risk, the risk that the project will fail to produce results consistent with

project specifications.

There are many other types of risks of concern to projects. These risks can result in cost,

schedule, or performance problems and create other types of adverse consequences for the

organization. For example:

Governance riskrelates to board and management performance with regard to ethics,

community stewardship, and company reputation.

Strategic risksresult from errors in strategy, such as choosing a technology that cant be

made to work.

Operational riskincludes risks from poor implementation and process problems such as

procurement, production, and distribution.

Market risks include competition, foreign exchange, commodity markets, and interest

rate risk, as well as liquidity and credit risks.

Legal risks arise from legal and regulatory obligations, including contract risks and

litigation brought against the organization.

Risks associated with external hazards, including storms, floods, and earthquakes;

vandalism, sabotage, and terrorism; labor strikes; and civil unrest.


11/23

CS DEVELOPERS11

PERT CHART


12/23

CS DEVELOPERS12

FLOWCHART AS IS vs. TO BE PROCESS Flowchart ofAS IS Process depicted below, this is as follows:-

EXCO COMMITTEE

CFO

PROJECT MANAGER

(PM)

MIS TEAM

(Monthly Information System Team)

SBU CONTROLLER

CHECK

REQUESTTYPE

USER REQUEST

FORM

USER START

END

Simple

Transfer

Original/

SYSTEM

CHANGE

SBU CEO


13/23

CS DEVELOPERS13

Flowchart ofTO BE Process as depicted below, this is as follows:-

EXCO COMMITTEE

CFO

PROJECT MANAGER (PM)

MIS TEAM

SBU CONTROLLER

CHECK

REQUEST

TYPE

CREATE USER

REQUESTFORM

USER START

END

Simple

Transfer

Original/

SYSTEM

CHANGE

SBU CEO

Reject/C

lose

Amend/Modify


14/23

CS DEVELOPERS14

Reason For Change in Budget

(In Receiving WBS)

Reason For Change in Budget

(In Sender WBS)1. Change In scope Yes / No 1. Change In scope Yes/ No

a. Change In scope by the Client(attach

request doc submitted to client)

Yes / No a. Change In scope by the Client(Attach Ref. doc)

Yes/ No

b. Change In Scope due toEngineering

Yes / No b. Change In Scope due to Engineering Yes/ No

2. Change in rate/cost Yes / No 2. Change in rate/cost Yes/ No

a. Change in Rate / Cost due to

underEstimation

Yes / No a. Change in Rate / Cost due to over

Estimation

Yes

/ No

b. Specify rate/cost Vs current estimatedrate/cost:

b. Specify rate/cost Vs current estimatedrate/cost:

Request Form for Budget Transfer

Date:

Name of Requester Division (E / P/C )

Email ID Mob no

1 Project ID Identified

2 Project Name Description3 Current Budget Approved

Date

Activity Description Row No Receiving WBSCurrent as per system

Sender WBS Current aper system

WBS 1

WBS Description 2

Original Budget 3

Original Budgeted Qty in Unit 4

Current Budget 5

Current budgeted Qty in Unit 6

Assigned value (Commt+Act) 7Assigned Qty (Commt+ Actual) inUnit

8

Available Budget 9=(5-7)

Balance Qty in Unit 10=(6-8)

Required Change in WBS Budget 11

Revised Qty in Unit 12

Revised budget 13=(6+11)


15/23

CS DEVELOPERS15

GANTT CHART

PAYBACK PERIOD


16/23

CS DEVELOPERS16

NET PRESENT VALUE

EXAMPLE

INCITATION : http://www.google.com


17/23

CS DEVELOPERS17

RETURN ON INVESTMENT


18/23

CS DEVELOPERS18

ESSAR has a standard process to issue Bank Guarantee to its Vendors. The following

is a brief overview of the process that is to be followed along with the introduction of a

new online web application

Bank Guarantee (BG) to be issued to Customers isinitiated by various users inESSARs Locations (Sites) and a unique BG Id is generated by the system.

The BG request could be of multiple types (Bid Bond, EMD, Advance,

Performance, Security etc)

The BG request of Bid Bond type has to be approved by Global BD Head, SBU

CEO, Group CFO, Group CEO in series before it can be considered by the

Corporate Finance Team

The BG request of any other type has to be approved by the Site Financial

Controller who is also the RM of the requestor

If the BG request is rejected by any of the approvers mentioned above, then the

initiator will have the provision to resubmit the BG with suitable changes

a. Changes made by the initiator for this level of rejection would have to be in

the same version of the BG that was submitted for approval.

Each approved BG request is taken up by the Corporate Finance team for

validation of the request details. The Corporate Finance Team can do any of the

following three actions

a. Accept the BG request as is supplied, with just additional inputs they have

to provide, and forward to the final approvers

b. Amend the BG request to make changes at their levelfor the information

provided by the initiator and add additional inputs that they have to provide

and forward to the final approvers. This will create a new version of the BG

request

c. Reject the BG request to allow the Initiator to amend the BG and resubmit

a new version of the same request

While forwarding the BG request to the final approvers, the Corporate Finance

Team can select a minimum of 2 or more approvers out of a standard list ofapprovers.

a. The standard list of approvers are those whose logins have a digital

signature that can be affixed as per agreement with all the Banks

b. After initiating the approval with a few approvers the Corporate Finance

Team can also add a new approver to the request to facilitate speedy

approvals


19/23

CS DEVELOPERS19

The final approvers can reject or approve the request, in parallel

a. Rejection of a request can be done by any of the final approvers included

by the Corporate Finance Team

b. Rejection of a request by even one approver will return the request back to

the Corporate Finance Team

c. Once any 2 approvers out of the approvers included by the Corporate

Finance Team have successfully approved the request, the BGwill stand

finally approved and no other approver will be able to approve or reject

that BG.

Rejection of a request at any level of the work flow will have to be supported with

a rejection reason

Once a BG is finally approved the BG documentation is printed with digital

signatures and then faxed to the Bank

The Bank provides the BG Number issued for the BGwhich is updated in the web

application by the Corporate Finance Team.

a. This triggers an update in SAP of the entire BG transaction

b. The SAP document number returned by SAP is stored in the web

application against the approved BG for tracking purposes

The following visual summarizes this work flow(Double click image to view as PDF)


20/23

CS DEVELOPERS20


21/23

CS DEVELOPERS21

ESSAR has a standard process to issue Letter of Credit to its Vendors. The following is

a brief overview of the process that is to be followed along with the introduction of a new

online web application

Letter of Credit (LC) to be issued to Vendors isinitiated by various users in

ESSARs Locations (Sites) and a unique LC Id is generated by the system.

The LC request is approved by the Site Financial Controller who is mapped to the

site

If the LC request is rejected by the Site Financial Controller, then the initiator will

have the provision to resubmit the LC with suitable changes

a. Changes made by the initiator for this level of rejection would have to be in

the same version of the LC that was submitted for the Site Financial

Controllers approval.

Each approved LC request is taken up by the Corporate Finance team for

validation of the request details. The Corporate Finance Team can do any of the

following three actions

a. Accept the LC request as is supplied, with just additional inputs they have

to provide, and forward to the final approvers

b. Amend the LC request to make changes at their levelfor the information

provided by the initiator and add additional inputs that they have to provide

and forward to the final approvers. This will create a new version of the LC

request

c. Reject the LC request to allow the Initiator to amend the LC and resubmita new version of the same request

While forwarding the LC request to the final approvers, the Corporate Finance

Team can select a minimum of 2 or more approvers out of a standard list of

approvers.

a. The standard list of approvers are those whose logins have a digital

signature that can be affixed as per agreement with all the Banks

b. After initiating the approval with a few approvers the Corporate Finance

Team can also add a new approver to the request to facilitate speedy

approvals

The head of the Corporate Finance Team will maintain LC approval limits for

each profit center and will include a set of final approvers into a controlled list

who can approve only if the balance unused limit against a location is less than or

equal to the current LC amount being processed for approval.

The final approvers can reject or approve the request, in parallel


22/23

CS DEVELOPERS22

a. Rejection of a request can be done by any of the final approvers included

by the Corporate Finance Team

b. Rejection of a request by even one approver will return the request back to

the Corporate Finance Team

c. Approval of a request will be limited for a final approver if they are part ofthe user group mapped against the profit center of the LC for approval limit

restriction, and if the amount of the current LC being processed is greater

than the balance unused against the profit center for which this LC is

raised.

d. Once any 2 approvers out of the approvers included by the Corporate

Finance Team have successfully approved the request, the LC will stand

finally approved and no other approver will be able to approve or reject

that LC.

Rejection of a request at any level of the work flow will have to be supported witha rejection reason

Once an LC is finally approved the LC documentation is printed with digital

signatures and then faxed to the Bank

The Bank provides the LC Number issued for the LC which is updated in the web

application by the Corporate Finance Team.

a. This triggers an update in SAP of the entire LC transaction

b. The SAP document number returned by SAP is stored in the web

application against the approved LC for tracking purposes

The following visual summarizes this work flow(Double click image to view as PDF)


23/23

CS DEVELOPERS23

Project Report on E-Automation Budget Transfer ( CS Developers )

Documents

Transcript of Project Report on E-Automation Budget Transfer ( CS Developers )