ABB Ability Ellipse EAM 9 Embedded business processes

Transcription

1 ABB Ability Ellipse EAM 9 Embedded business processes 26 September ABB. All rights reserved.

2 NOTICE TRADEMARKS The information in this document is subject to change without notice and should not be construed as a commitment by ABB. The information contained herein: is for informational purposes only and may not be incorporated into any contract is intended to outline our general product direction and should not be relied on in making a purchasing decision is not a commitment, promise, or legal obligation to deliver any material, code or functionality The development, release, and timing of any features or functionality described for our products in this document remains at our sole discretion. ABB assumes no responsibility for any errors that may appear in this document. In no event shall ABB be liable for direct, indirect, special, incidental or consequential damages of any nature or kind arising from the use of this document, nor shall ABB be liable for incidental or consequential damages arising from use of any software or hardware described in this document. ABB Ability Ellipse is a registered trademark of ABB Enterprise Software All rights to copyrights, registered trademarks, and trademarks reside with their respective owners. Copyright 2018 ABB. All rights reserved. Release: v2.0 Document number: Ellipse EAM 9 Business Process Models Overview 2018 ABB. All rights reserved. Page ii

3 TABLE OF CONTENTS 1 BUSINESS CHALLENGES THE SOLUTION: ABB ABILITY ELLIPSE EMBEDDED BUSINESS PROCESSES BUSINESS BENEFITS PROCESS MODELS OVERVIEW Process hierarchy Pre-configured processes Processes Category inclusions LEVEL 3 BUSINESS PROCESSES MODELS Manage Assets Manage Finance Manage Materials Manage people Manage Work REVISION HISTORY ABB. All rights reserved. Page iii

4 1 BUSINESS CHALLENGES Business process definition and deployment is a critical success factor in ensuring a consistent way of working across an organisation, communicating the business processes throughout an organisation is usually managed through multiple channels and rarely embedded in the day-to-day operations of a business. Version control and continuous improvement also create challenges, making it difficult to easily provide the right information to all employees. Translating business processes into tasks within an enterprise solution is often provided as static documentation outside of that solution or at best within the solution but not side by side with the applications to be used. 2 THE SOLUTION: ABB ABILITY ELLIPSE EMBEDDED BUSINESS PROCESSES Ellipse EAM 9 includes pre-configured embedded business process models which define the best way to use Ellipse to support the typical processes across all major functional areas (process categories) supported by Ellipse: Manage Assets Manage Finance Manage Materials Manage People Manage Work The models support best practice use of Ellipse and align to ISO processes for asset management as shown below: More than 160 standard business processes are provided with product and these can be tailored and added to enabling organization specific procedures to be defined and easily rolled out to all users of the solution. Processes are defined in three levels to group together related processes and work streams, these are described in more detail in the sections below. Organisation specific processes can be added by creating new processes or copying the processes provided with the solution. As the processes are managed within the Ellipse EAM solution, standard search, review, create, amend and delete actions are available. The processes are also defined by role making it easy to see all the processes associated with a particular role or function within the organisation. The pre-configured process models are maintained through new versions and updates to the solution, ensuring that these models will also match the latest functionality available in the solution ABB. All rights reserved. Page 1

5 3 BUSINESS BENEFITS Policy compliance can now be more easily achieved with interactive access to the supporting Ellipse Application, documentation, help videos, work instructions and procedures. The business process models include interactive links to: Relevant standard Ellipse functions and information o o o Application / software function Documentation Video overview of the Ellipse solution concept eg equipment, organization structure Company specific documents for the process: o o o Policies Work instructions Forms to initiate the process, if required Templates are provided for policy documents, work instructions and forms to streamline the creation of these documents. 4 PROCESS MODELS OVERVIEW 4.1 PROCESS HIERARCHY The business processes are organized into 3 levels as shown in the diagram below: Level 1 Process Category o Functional stream, e.g. Manage People Level 2 Process Group o o Related business processes, e.g. Manage People Information Each process group is described using the process context model, which shows how the processes within the process group interact Level 3 Business Process o These are the processes executed using Ellipse and document each step within the process 2018 ABB. All rights reserved. Page 2

6 o Each business process can contain events, decisions and tasks, e.g. On-board New Person 4.2 PRE-CONFIGURED PROCESSES The following diagram provides an overview of the process groups within each category. These are described in more detail in the sections below. The processes are defined and documented within Ellipse EAM, using the process modelling application. This application also provides the capability to change these processes and create new processes. The screen shot below shows an example business process model: 4.3 PROCESSES CATEGORY INCLUSIONS The following sections describe each of the five process categories (level 1) and the process groups (level 2) that are included in each category ABB. All rights reserved. Page 3

7 4.3.1 Manage Assets The Manage Assets process category covers those processes that enable asset-intensive organisations to manage their assets' complete lifecycle. These processes encompass defining asset management policies and strategies, the acquisition or modification of assets, managing asset identification and relationships, and processes to ensure alignment between operational activities and the organisation's strategies. Processes within Manage Assets are designed to ensure that all of the organisation's assets are appropriately maintained, taking into account the optimum mix of preventative and reactive work and balancing the maintenance effort against set performance and production output. Manage Assets processes Process Group Manage Capital Projects (Assets) Description Manage Capital Projects Assets includes the processes that enable new assets to be acquired or constructed. This process is an integral part of the asset management process; because its initial design function has a considerable impact on ongoing equipment maintenance. It is during this phase that much information is provided with respect to recommended spare parts holdings and maintenance procedures. Initiate Project Plan and Schedule Estimates Monitor and Control Project Define and Manage Asset Policies Manage Project Change Construct Install and Commission Asset An organisation's Asset Policy is the formal documentation that describes how Asset Management will contribute to the delivery of the organisation's strategies. The document is intended to guide every Asset Management decision and activity that the organisation performs. Processes are required to ensure this important documentation effectively meets these objectives. Administer Asset Management Policy Manage Asset Configuration Administer equipment data contains the processes that ensure all of the information related to equipment is kept up-to-date. This includes both descriptive and relationship data. Administer Equipment Register Administer Equipment Relationships Administer Equipment System Configuration 2018 ABB. All rights reserved. Page 4

8 Process Group Manage Asset Maintenance Strategy Description Based on the Asset policy and information collected in the capital work process, appropriate maintenance strategies are required to be developed, deployed and optimised for each item of equipment, if it is sufficiently important, or for each equipment type for general equipment. This will identify such categories as run to failure, usage based maintenance, or all condition-based maintenance, depending on criticality and condition. This includes control over such activities as planning, scheduling, execution, work completion and, where appropriate, detailed failure analysis. Develop and Deploy Maintenance Strategy Develop Maintenance Budget Optimize Deployment of Strategy Analyse Asset Performance An important step of the asset management process is to analyse the outcomes and determine whether they have been successful, whilst continually seeking ways to improve the process. This analysis should include looking at both effectiveness, which is defined as how well the strategy was followed, and efficiency, which determines whether the required equipment performance was delivered at an appropriate cost. Analyze Asset Manage Warranty Claims Manage Asset Life Dispose of Asset Dispose of Asset contains the processes required to decommission an item of equipment, remove it from service and finally managing its disposal through sale or scrapping. Dispose Asset Manage Work The Manage Work category of processes covers those processes that ensure that work is managed efficiently through the processes of initiation, planning, scheduling, execution, completion and analysis. The prime function of these processes is to ensure that the work defined by the asset management strategy is effectively carried out. The primary goals of this category of processes is to Reduce the asset lifecycle cost, Improve resource utilisation by having the right skills, the right spares, at the right place, at the right time, Increase plant and equipment productivity, Utilise a large workforce, which may include contract resources, Manage complex maintenance tasks including plant overhauls and outage While the prime function of this process is to ensure that the work defined in the asset management process is effectively carried out, the process can also be applied to any non-asset management activity where resources need to be effectively planned, such as training and production activities ABB. All rights reserved. Page 5

9 Manage Work processes Process Group Define and Manage Work Policies Initiate Work Evaluate Work Plan Work Schedule Work Execute Work Description Define and manage work policies covers the processes of creating and distributing the work management policies of the organization. Administer Work Policy The Initiate Work group of processes is responsible for clearly identifying work that needs to be carried out. It caters for work that is generated as a consequence of the maintenance strategy and it also deals with the creation of ad hoc or breakdown work. Create Work Request Create Work Order Record Shift Events Servicing and Re-fuelling Create Work from Work Request Action Inspection Results Create Work from Condition Alarm Record Equipment Condition Statistics Create ad-hoc work Automated Recording of Statistics Create Work Orders for Multiple Equipment Evaluate work covers the process of ensuring that the identified work is accurate, is not a duplicate and has an appropriately identified priorities to allow for effective planning. Evaluate initiated work The plan work process is about ensuring that the content of the job is well defined and complete. Before any job can be executed the planning process must occur. Plan Work Content Administer Standard Job Administer Application Parts List (APL) Schedule work covers the processes required to define the timing of the job. Schedule Available Work Schedule Shutdown Work Requisition Material (non-inventory) and Services Requisition Material and Services Administer Work Groups Dispatch Work Execute work covers all the processes required to actually carry out the work. This no-name includes the work itself but should also include quality and safety procedures. Execute Assigned Work Perform Inspection 2018 ABB. All rights reserved. Page 6

10 Process Group Complete Work Analyse Work Performance Description Complete work covers the processes required to finalize the documentation around the completed work. This should include descriptions of what was done, recording appropriate labour and parts usage, maintaining statutory records, and documenting any Job failure codes. Complete Work History Return Material to Warehouse Manage Waste Analyse work performance covers the procedures required to review all work and to ensure that it is being done efficiently and effectively. Analyze work Manage Materials The purpose of the Manage Materials process category is to manage the activities required for the sourcing, procurement, tracking, distribution and payment of goods and services required for the efficient and effective operation of the business, including production, administration and maintenance. The objective is to balance the criticality of an asset's impact on operations with the cost of maintaining spare parts inventory and deliver: An efficient supply chain that reduces inventory and inventory carrying costs while improving service levels, Increased in-stock performance and enhanced abilities to increase internal customer satisfaction, Improved asset productivity, Improved warranty recovery, Reduced Order cycle times and purchasing costs. Ellipse EAM Materials Management offers a user-definable framework of parameters to establish and maintain inventory policies and procurement policies, automate the replenishment of stores, and ensure warehouse and supplier management Manage materials processes Process Group Define and Manage Material Policies Description Material Polices includes the processes of developing and maintaining the policies required to provide the framework to control and measure the performance of the Materials Management processes. Administer Procurement Policy Administer Catalogue Policy Administer Inventory Policy Administer Warehouse Policy 2018 ABB. All rights reserved. Page 7

11 Process Group Determine Material Requirements Manage Suppliers and Agreements Procure Material and Services Description Determine Material Requirements includes the processes that determine which items (i.e., material items or spare parts) will be utilised and what strategy to apply to the item to optimally manage it within the organisation s operational constraints. Administer Catalogue Item Assess Material Strategy Managing Suppliers and Agreements involves the determination of where to procure the materials or services in order to satisfy the demand. Determining factors include criticality of goods, quality of goods or services, certainty of supply, warranty, terms and conditions and pricing and historical performance. As well and managing the set-up and administration of purchasing agreements. Administer Supplier Data Evaluate Supplier Performance Create Purchasing Agreement Administer Purchasing Agreement Purchasing involves the ordering of all materials and services required for the business. The 'Procure' process supports the prompt purchasing of the right item at the right price, while reducing inventory costs, and ensuring best value. The Procure processes manage the procurement lifecycle of goods and services from the point where the need is registered, through acquisition to acceptance of delivery. The processes provide for: - Management of repairable items from initial purchase through repair and final disposal - Manual and automated purchasing - Approval workflows - Funds checking and commitment accounting - Automated expediting - E-procurement - Receipt of goods and services - Both on-site and off-site and tracking of goods in transit - Quality inspection process - Recording and managing discrepant goods - Returns of discrepant goods to suppliers - Management of recalls Manage Inventory Administer Purchasing Data Process Purchase Requisition Process Recommended Order - Buy Maintain Purchase Order Expedite Purchase Order Process Invoice Price Mismatch Manage Outstanding Order Discrepancies The objective of these processes is to provide efficient handling and storage of goods. Manage Inventory processes provide: 2018 ABB. All rights reserved. Page 8

12 Process Group Description - Integration with the Manage Works processes to coordinate material and services demand with the works planning and scheduling processes - Full lifecycle management of goods in inventory from triggering reprovisioning, stock taking, transfers, condition management, inspections and disposals - Satisfaction process searches through echelons of inventory and applies item substitutions (alternate items, items used with, etc.) - Ability to easily return to store incorrectly supplied or excess items - Management of material discrepancies via other processes, e.g. receiving, inspections, stock counts, etc. - Automated identification of surplus, expired, obsolete inventories and management of process for evaluation of disposal candidates through to disposal. Manage Warehousing Administer Inventory Item Adjust Inventory Holdings Process Recommended Order - Stores Process Warehouse Transfer Manage Disposals of Inventory Manage Supplementary Stocktake Manage Cyclic Stocktake Warehouse management includes the processes of satisfying demand for goods from inventory within service levels, delivering goods to the requestor, and also tracking and monitoring the shipment of goods both internally and externally to their destination. The processes provide for: - Support for freight forwarding - Material redistribution - Ability to maximise the inventory availability by sharing across locations and entities (i.e., companies, sites) - Between warehouses or from warehouse to end user - Demand driven or program driven - In transit tracking and visibility Receive Material (non-inv) from Supplier Receive Material from Supplier Receive Warehouse Transfer Transport Consolidation Track Shipments Perform Stock Count Receive Inventory Returns to Warehouse Manage Inventory Discrepancy Issue Inventory from Warehouse Administer Goods Holding Manage Returns to Supplier Process Invoice Quantity Mismatch Manage Bulk Materials 2018 ABB. All rights reserved. Page 9

13 Process Group Performance Analysis Description Performance Analysis includes processes to measure and manage the performance of the materials processes across the full lifecycle. Manage Procurement Performance Manage Inventory Performance Manage Warehouse Performance Manage People The Manage People processes manage the entire human resource requirements of an organisation. They enable effective management of the positions and position incumbents that comprise the organisation from recruitment and on boarding to performance management and separation, as well as providing visibility of the availability and capability of the resources needed to support efficient and effective work planning. The Manage People processes also encompass Payroll enabling the timely, accurate processing of payroll through integration with time management, absence management and salary administration. Additionally, processes relating to Employee Self-Service allow for greater accessibility and control over personal information by employees, reducing the level of day to day administration of this information by Human Resources Manage People processes The following process groups are included in Manage People: Process Group Define and Manage HR Policies Manage Workforce Planning and Recruitment Manage Organisation Structure Description Define and Manage HR Policies covers the processes for developing a framework to identify and communicate the principles, conventions, rules and practices that are to be applied by the organization when carrying out its operation in relation to the management of people. Administer HR Policy The Manage Workforce Planning and Recruitment processes are designed to align the workforce requirements with the needs of the organization. It covers processes which identify and plan for required capacity, and processes to fill any shortfalls in capacity with the appropriate talent. Manage Workforce Planning Manage Recruitment and Selection The Manage Organization Structure processes deliver the ability to define how roles and responsibilities are assigned and controlled to meet organizational goals. Administer Organization Hierarchy Administer Position 2018 ABB. All rights reserved. Page 10

14 Process Group Manage People Information Manage Performance, Training and Development Manage Attendance Manage Health, Safety, Social Responsibility and Environment (HSSRE) Manage Payroll Description The Manage People Information processes enable the organization to build a profile of its workforce by recording and maintaining key biographic and organisation specific information. This information can then be used to meet organizational objectives and fulfil obligations as an employer in line with relevant legislation. On-board New Person Administer Person Record Review and Maintain Employee Data (ESS) Administer Position Placements Manage HR Terminations Provide the capability to develop the skills and expertise within the organization to meet the demands of the business. This involves the ongoing monitoring and assessment of each person's performance and skills, and how that person s skills may be developed with training to align with the needs of the organization. Manage Scheduled Performance Management Manage Diminished Performance and Misconduct Develop Training Strategy Maintain Training Catalogue Administer Training Record and Maintain Individual Abilities Manage Attendance includes processes to enable the organization to effectively manage the availability of resources. It covers the processes that control the assignment of rosters to individuals and groups, as well as the ability to record and approve timekeeping transactions and leave requests in line with organizational policy. Administer Roster Manage Leave Requests (ESS) Record Approved Leave Requests Manage Employee Time Exceptions (ESS) Record Approved Employee Time Exceptions Processes to support the organization in fostering a safe, healthy work environment and to operate in a sustainable and positive manner with respect to society and the environment. It covers processes that provide the ability to monitor and ensure active compliance with the spirit of the law, ethical standards and international best practice. Manage Health and Safety Events Monitor Employee Health Manage Employee Rehabilitation Create and manage information required to support an accurate and timely payroll delivery. It covers the processes to manage employee data, adjustments, terminations and end of period processing, as well normal pay run processing ABB. All rights reserved. Page 11

15 Process Group Description Maintain Employee Payroll Data Maintain Salary Adjustments Maintain Employee Termination Process Payroll Process Immediate Payments Maintain Payroll Process Setup End of Year Payroll Process Maintain Exception Payments Manage Finance The Manage Finance processes covers the full finance accounting and management accounting processes needs of an asset intensive organisation to manage all the financial aspects of the business. The Ellipse EAM financial management is centred around supporting asset management and the business processes reflect this while also catering for the standard processes required to provide fiduciary control, management accounting, reporting and governance Manage finance processes The following process groups are included in Manage Finance: Process Group Maintain Financial Policies and Procedures Administer Financial Structure and Configuration Description Finance Polices includes the processes of developing and maintaining the policies required to provide the framework to control and measure the performance of the Financial Management processes. Administer Accounting Policy Manage Financial Master Data includes the processes that determine how the organisations financial management and reporting processes will be operated and managed. Examples of configuration decisions include: - Corporate structure - Definition of chart of accounts - Reporting hierarchies - Accounting calendars Administer Exchange Rates Administer VAT / GST Administer Chart of Accounts Administer Profit and Cost Hierarchies Administer Labour Rates Administer Financial Statistic Codes 2018 ABB. All rights reserved. Page 12

16 Process Group Perform Planning, Budgeting and Forecasting Process Accounts Payable Process Accounts Receivable Manage Cash Manage Fixed Assets Description This group of processes caters for the development, maintenance and deployment of all budgeting and forecasting processes. Develop Capital Budget Develop Operating Budget Approve Capital Project Funds Approve Request Accounts Payable processes ensure that supplier invoices are processed efficiently and paid accurately on a timely basis. The integration of Accounts Payable and Purchasing processes allows automation of controls over the processing and approval of invoices. Process 1099 Information (USA Only) Administer Supplier Bank Detail Process Invoice Match Administer Recurring Payments Administer Retentions Load Credit Note Load Invoice The Accounts Receivable processes manage the creation of receivables invoices, record and receive monies owed by customers and other debtors. Administer Customer Details Invoice Customer Process Customer Credit Process Monies Received Manage Collections Perform A/R Period-End Activities The Manage Cash processes manage all aspects of cash management, from payment of invoices, bank reconciliations and cash forecasting. Perform Invoice Payment - EFT Perform Invoice Payment - Cheque Perform Bank Reconciliation Process Cancelled Cheque Perform Manual Payment Prepare Cash Forecast Manage Fixed Assets processes provide for the accounting for fixed asset transactions, including acquisitions, retirements, transfers, adjustments, and depreciation expenses. The processes establishing entries in the fixed assets register, tracking fixed assets through physical inventories, and calculating and recording depreciation and expenses related to fixed asset maintenance and repair. These processes are intended to support tax, statutory, and regulatory reporting by providing data on fixed assets to the interested stakeholders ABB. All rights reserved. Page 13

17 Process Group Perform General Accounting Manage Grants Description Administer Fixed Assets Data Perform Capitalization of Fixed Asset Perform Fixed Asset Transfer Perform Fixed Asset Administration Perform Fixed Asset Revaluation Perform Fixed Asset Depreciation Perform Fixed Asset Retirement Perform Fixed Asset Reporting Perform Asset Count The General Ledger processes ensure accurate account balances and the timely availability of financial information for management and statutory reporting Administer Reallocation Rules Administer Standing Journals Perform Period-End Close Perform Journal Processing Perform GL Account Reconciliation Perform Year-End Close Perform Cost Reallocations Perform Daily Transaction Verification Correct Accounting Errors Record Labour Costs Review Labour Costing Transactions Perform Re-measurement Perform Translation Perform Joint Venture Accounting Perform Financial Consolidation Manage Grants provides processes to record and maintain grants funding details from external sources, including identification and management of external grants together with the recording of funding values and sources and the costs incurred and receipts of amounts reimbursed from external sources. The processes also provide accurate information about expenditures incurred against grants and to ensure that those expenditures do not exceed the agreed grant values. Administer Grants Check Grant Funds Claim and Finalise Grant 2018 ABB. All rights reserved. Page 14

18 5 LEVEL 3 BUSINESS PROCESSES MODELS 5.1 MANAGE ASSETS Process Group Process Name Process Purpose PG.MA.001 Define and Manage Asset Policies PG.MA.002 Manage Asset Configuration PG.MA.003 Manage Asset Maintenance Strategy PR.MA.005 Administer Asset Management Policy PR.MA.040 Administer Equipment Register PR.MA.045 Administer Equipment Relationships PR.MA.055 Administer Equipment System Configuration PR.MA.060 Develop and Deploy Maintenance Strategy PR.MA.065 Develop Maintenance Budget PR.MA.070 Optimize Deployment of Strategy The Administer Asset Management Policy process includes those tasks to review the organization's strategy, gather historical data, define or maintain an existing policy, and review, approve and distribute the policy. Provides tasks to make controlled changes to the equipment register. A single piece of equipment may have links with a number of other entities that enable the efficient management of that piece of equipment. This process includes those tasks to maintain those relationships to other entities, such as make/model groupings, document links, productive unit groupings, logical lists and standard work templates. Administer the configuration of standard information that should be captured against items of equipment. This includes items such as numbering structures, description attributes and structured failure analysis codes if appropriate. The process includes the definition of maintenance schedules and maintenance activities that are to be employed in order to meet the defined maintenance strategy for a piece of equipment. This process uses the organization's asset maintenance strategies that are currently in place in order to project the work requirements for an upcoming period, and thus provide budgetary estimates that may feed into an operational budgeting process. Maintenance strategies may be adjusted in order to influence the budget estimates. Defines the steps required to ensure that a deployed maintenance strategy is reviewed and optimized over time. This process is an integral part of any continuous improvement to the maintenance strategy ABB. All rights reserved. Page 15

19 Process Group Process Name Process Purpose PG.MA.004 Analyze Asset Performance PG.MA.005 Dispose of Asset PG.MA.006 Manage Capital Projects - Assets PR.MA.075 Analyze Asset PR.MA.080 Manage Warranty Claims PR.MA.085 Manage Asset Life PR.MA.090 Dispose Asset PR.MA.010 Initiate Project PR.MA.015 Plan and Schedule Estimates PR.MA.018 Create Compatible Unit PR.MA.020 Monitor and Control Project PR.MA.025 Manage Project Change Assess the total performance of the asset, taking into account both maintenance expenditure, failures and production output. This process enables the review of all available information on an asset's performance to ensure an optimal outcome. Manage the full life-cycle of warranty claims from identification to settlement. A potential warranty can be identified from two sources. The source can be either from a warranty expiry date on the equipment register, or via warranty days defined against a material item for a specific vendor. Review equipment and component life predictions based on condition monitoring information and determines if the maintenance strategy should be amended. The Dispose of Asset process includes tasks to physically decommission an asset, decide on whether to sell or scrap the item, update financial records, and manage the sale or disposal of the asset. Tasks to identify a requirement, perform initial costings and assessment of alternatives, and approve and register the requirement to proceed and be managed as a project. Assesses the list of pending estimates, refines estimates, and identifies work packages. The details of estimates can be exported if required. A Compatible Unit is a standard assembly or construction unit that organises a large activity into a number of smaller tasks or components. These components are arranged in a hierarchical structure and are classified as compatible unit items. The use of compatible units are widespread in industries when estimating for capital or construction jobs such as installing, removing or relocating assets. Manages the schedule, budget and scope, communications, risk, quality and contracts with external parties. Tasks to manage changes to design for the deliverable ABB. All rights reserved. Page 16

20 Process Group Process Name Process Purpose PR.MA.030 Construct Install and Commission Asset Construct Install and Commission Asset enables the recording of Labour Costs during the construction of the asset, requisitioning of material or services from external sources, managing the installation and commissioning tasks, and handing over the asset for operation. 5.2 MANAGE FINANCE Process Group Process Name Process Purpose PG.MF.001 Define and Manage Finance Policies PG.MF.002 Administer Financial Structure PR.MF.005 Administer Accounting Policy PR.MF.030 Administer Exchange Rates PR.MF.031 Administer VAT / GST PR.MF.032 Administer Chart of Accounts PR.MF.035 Administer Profit and Cost Hierarchies PR.MF.040 Administer Labour Rates PR.MF.045 Administer Financial Statistic Codes PR.MF.048 Maintain Cost Categories Manage the development and maintenance of the organization's general Accounting Policy used to communicate the principles, conventions, rules and practices that are to be applied by the organization when carrying out its operation in relation to the management of Finance. Enables the maintenance of foreign currency exchange rates in which organization entities shall transact. Administration of Goods and Services Tax (GST) or Value Added Tax (VAT) rates that are required by the business. Manage the maintenance of the Chart of Accounts, which includes Cost Centre segments, Expense Elements, General Ledger Codes and Posting Accounts. Administration of account relationships which enable organizational entities to develop multiple reporting structures. Tasks to administer labour costing rates. Setup and maintenance of statistic codes that allow organization entities to record statistical data that can be used for reallocations, calculating depreciation values, reporting statistical values and KPIs. This process relates to the use of cost categories to assist in the analysis of project costs. Cost categories are defined by nominating the account codes and/or transaction types and/or transaction categories in order to summarise costs ABB. All rights reserved. Page 17

21 Process Group Process Name Process Purpose PG.MF.003 Plan, Budget, Forecast and Approve PG.MF.004 Process Accounts Payable PG.MF.005 Process Accounts Receivable PR.MF.050 Develop Capital Budget PR.MF.055 Develop Operating Budget PR.MF.060 Approve Capital Project Funds PR.MF.065 Approve Request PR.MF.066 Process 1099 Information (USA Only) PR.MF.069 Administer Supplier Bank Detail PR.MF.070 Process Invoice Match PR.MF.075 Administer Recurring Payments PR.MF.080 Administer Retentions PR.MF.085 Load Credit Note PR.MF.095 Load Invoice PR.MF.100 Administer Customer Details PR.MF.105 Invoice Customer PR.MF.110 Process Customer Credit PR.MF.115 Process Monies Received Develop, update and record the capital budget and forecasts within the system. Develop, update and record the production budget within the system. Allocate funds to individual capital projects or the approval of funds at a set (gate) within a project's life-cycle. Approval of funding requests with respect to organizational delegation limits. Manage the 1099 tax reporting requirement for USA customers only. Administration of bank details for a supplier. It is separated from the process to administer other supplier details in order to provide a separation of duties between maintaining supplier details, the approval of supplier changes, and any amendments to banking details. Invoice Match process encompasses the tasks to co-ordinate the investigation of any mismatches between that which has been ordered, the material that has been received, and the amount that has been invoiced. It may include liaising with the supplier and agreeing upon a correction before the invoice can be paid. Tasks to configure a recurring payment schedule for a supplier. Allow for partial payments to suppliers, and enable the full payment at a later date. Loading and filing of a credit note received from a supplier. Load, match and approve an invoice in preparation for payment. Review and approve the creation and maintenance of details relating to a Customer. Request, print and distribute an invoice to a customer. Raising and distribution of a Credit Note for a customer. Receive payments, record the payment against an outstanding invoice, deposit payments with bank (if by cheque) and deliver receipts as required ABB. All rights reserved. Page 18

22 Process Group Process Name Process Purpose PG.MF.006 Manage Cash PG.MF.007 Manage Fixed Assets PR.MF.120 Manage Collections PR.MF.125 Perform A/R Period-End Activities PR.MF.130 Perform Invoice Payment - EFT PR.MF.135 Perform Invoice Payment - Cheque PR.MF.140 Perform Bank Reconciliation PR.MF.145 Process Cancelled Cheque PR.MF.150 Perform Manual Payment PR.MF.155 Prepare Cash Forecast PR.MF.165 Administer Fixed Assets Data PR.MF.170 Perform Capitalization of Fixed Asset PR.MF.175 Perform Fixed Asset Transfer PR.MF.180 Perform Fixed Asset Administration PR.MF.185 Perform Fixed Asset Revaluation PR.MF.190 Perform Fixed Asset Depreciation Identification of late payments, pursuing collection activities, and performing write-offs if required. End of month closing of the Accounts Receivable system and producing of customer statements. Electronic payment of outstanding invoices, including the delivery of electronic payment data to the bank. Nominate invoices to be paid, printing cheques and delivering to the supplier. Tasks to perform the reconciliation of bank statements. Cancellation of a payment made either by cheque, or via EFT. Tasks that allow for one off payments (via cheque). Tasks to be performed to develop a cash forecast. This includes obtaining information from Accounts Payables, Accounts receivables, operating and capital budgets. Maintenance of customer configurable data to classify Fixed Assets, as well as account profiles which determine what accounts codes will be used when generating accounting transaction for Fixed Asset activities. Identification of a new asset, assessment of subassets and asset classes, review and capturing of data relevant to that asset, and the notification of interested stakeholders. Transfer all or part of a sub-asset to an existing or new sub-asset. This process is initiated upon request from the business, assessed and approved by the asset owner, and the new structure is reflected within the application system. Tasks to identify, request, assess, approve and modify information relating to a fixed asset. Assess current market value of an asset, compare that current book value, identify a revaluation is required, and the steps to approve and perform that revaluation. Depreciation of a fixed asset's value on a cyclical basis, and involves tasks to review, execute and finalise the depreciation action ABB. All rights reserved. Page 19

23 Process Group Process Name Process Purpose PG.MF.008 Perform General Accounting PR.MF.195 Perform Fixed Asset Retirement PR.MF.196 Perform Fixed Asset Reporting PR.MF.197 Perform Asset Count PR.MF.200 Administer Reallocation Rules PR.MF.205 Administer Standing Journals PR.MF.210 Perform Period-End Close PR.MF.215 Perform Journal Processing PR.MF.220 Perform GL Account Reconciliation PR.MF.225 Perform Year- End Close PR.MF.230 Perform Cost Reallocations PR.MF.235 Perform Daily Transaction Verification The Fixed Asset Retirement process responds to requests to dispose of a fixed asset and reflect that disposal of the asset in the system. Generate the various fixed assets reports required to enable verification and reconciliation of the fixed asset register to the general ledger. Ensure that the Ellipse fixed asset register is accurate through a regular count and reconciliation of physical and recorded assets. Tasks to manage the configuration rules that are implemented when performing the process to reallocate costs (Perform Cost Reallocations process). Creation and review of journal entries that are posted every month, providing an efficient method to post the same dollar amounts to the same accounts each month. Full suite of tasks that are performed at the end of every period. It includes tasks to rollover a period, perform any required fixed asset depreciation, account reconciliation and reallocations, and produce required taxation and financial reports. Tasks to apply and review additional journal entries to accounts. Reconciliation of General Ledger accounts, including tasks to ensure all outstanding transactions for the period have been posted, run a trial balance, produce reports of outstanding liabilities, fixed asset monthly depreciation, customer aged trial balance, reconcile and correct any discrepancies. Tasks to ensure that accounts are closed out, correcting any anomalies, carry forward balances and open accounts for the upcoming year. The Perform Cost Reallocations process is performed cyclically at the end of a period and includes tasks to validate posted entries and reallocate amounts between accounts. Verify accounting transactions that have occurred through daily activities in the source systems and perform corrections if required. (AP, AR Fixed Assets Journals etc.) 2018 ABB. All rights reserved. Page 20

24 Process Group Process Name Process Purpose PR.MF.240 Correct Accounting Errors PR.MF.244 Record Labour Costs PR.MF.245 Review Labour Costing Transactions PR.MF.250 Perform Remeasurement PR.MF.255 Perform Translation PR.MF.260 Perform Joint Venture Accounting PR.MF.265 Perform Financial Consolidation Correct accounting transactions that were identified as in error (in Perform Daily Accounting Transaction Verification process). Collection of labour costs against appropriate costing items. Review of posted labour costing transaction, and notifying an appropriate person to enable any errors to be corrected. Remeasuring of account balances that have been affected by accounting transactions that were initially transacted in a currency other than the functional currency. Currency conversion of the balance sheet for a company (caters for the scenario where the currency of a subsidiary company is different to that of its parent). Allocation of costs between Joint Venture partners. This process enables consolidation of multidistrict accounts into a single consolidation district for regulatory and reporting purposes. PG.MF.009 Manage Grants PR.MF.280 Administer Grants PR.MF.285 Check Grant Funds PR.MF.290 Claim and Finalise Grant Manage, the tracking and reporting of expenditure related to grants. Validation to ensure transactions recorded against project and grants are correct and that they do not exceed the approved grant value. Creation of invoices related to grants. 5.3 MANAGE MATERIALS Process Group Process Name Process Purpose PG.MM.001 Define and Manage Material Policies PR.MM.005 Administer Procurement Policy Development and maintenance of the organisation's Procurement Policy used to communicate the principles, conventions, rules and practices that are to be applied by the organisation when carrying out its operation in relation to procuring material and services ABB. All rights reserved. Page 21

25 Process Group Process Name Process Purpose PG.MM.002 Determine Material Requirements PG.MM.003 Manage Suppliers and Agreements PR.MM.010 Administer Catalogue Policy PR.MM.015 Administer Inventory Policy PR.MM.017 Administer Warehouse Policy PR.MM.020 Administer Catalogue Item PR.MM.025 Assess Material Strategy PR.MM.030 Administer Supplier Data PR.MM.035 Evaluate Supplier Performance PR.MM.038 Manage Tenders PR.MM.040 Create Purchasing Agreement Development and maintenance of the organisation's Cataloguing Policy used to communicate the principles, conventions, rules and practices that are to be applied by the organisation when carrying out its operation in relation to maintaining the Catalogue of Material. Development and maintenance of the organisation's Inventory Policy used to communicate the principles, conventions, rules and practices that are to be applied by the organisation when carrying out its operation in relation to maintaining its spare parts and consumables Inventory. Development and maintenance of the organisation's Warehouse Policy used to communicate the principles, conventions, rules and practices that are to be applied by the organisation when carrying out its operation in relation to the storage, handling and distribution of material. Assess the request for a new item or modification to an existing item in the stock catalogue. It includes tasks to create, amend, review and activate a catalogue item and notify the requestor of the outcome. Manage the request to create or modify an item of material and its associated attributes. These attributes may include; item description, fitment, criticality, drawings, specifications, suggested inventory control and purchasing information. At the end of its life-cycle, a catalogue/inventory item should be retired. This process enables this assessment, and initiates a disposals process if required. Assess requests for new or changes to the organisation's suppliers. It may include tasks to qualify a supplier, contact a supplier to ensure an accurate record of information, and approval of all changes. Assess supplier's performance and take any action as necessary. Determine requirements, documentation, calling of tenders, evaluation and awarding of contracts/agreements for the supply of goods and services. Establish supply agreements, including: - Identifying material items that should be supported by agreements. - Distribution and assessment of requests for quote. - Awarding an agreement to a supplier ABB. All rights reserved. Page 22

26 Process Group Process Name Process Purpose PR.MM.045 Administer Purchasing Agreement PR.MM.050 Administer Contracts Manage and maintain the data related to the procurement of an item. It includes: - Identifying the best source of supply (e.g. in-house, Suppliers), for material items. - Negotiating terms and conditions. - Negotiating prices and lead times. - Identifying specific part numbers. Creation and administration of contracts recorded in Ellipse. PR.MM.055 Process Contract Valuations Creation and maintenance of supplier payments (valuations) against contracts. PG.MM.004 Procure Material and Services PR.MM.060 Administer Purchasing Data PR.MM.065 Process Purchase Requisition PR.MM.070 Process Recommended Order - Buy PR.MM.080 Maintain Purchase Order This process allows various combinations of stock item and supplier data. Attributes such as cost, lead time and delivery terms can be held for each supplier. A preferred supplier can also be nominated to allow automatic purchasing. Manage the processing of user created and authorised Purchase Requests into Purchase Orders. The process includes: - Obtaining quotations - Selecting a suitable supplier - Processing Purchase Requisition into a Purchase Order - Authorisation of the Purchase Order Process a recommended order, including : - Reviewing the item for continued suitability for purchase and quantity to purchase; - Selecting a suitable supplier. - Using pre-negotiated terms and conditions or; - Obtaining prices and terms and conditions, either directly or via the quotation process. - Processing Recommended Order into a Purchase Order. - Authorisation of the Purchase Order. React to a change required of a Purchase Order. It assesses the requirement for change, agree to the change with the Supplier, modify or cancel the order, generate new approvals as required, and if necessary generate and transmit a change order ABB. All rights reserved. Page 23

27 Process Group Process Name Process Purpose PG.MM.005 Manage Inventory PR.MM.085 Expedite Purchase Order PR.MM.090 Process Invoice Price Mismatch PR.MM.093 Manage Outstanding Order Discrepancies PR.MM.100 Administer Inventory Item PR.MM.103 Adjust Inventory Holdings PR.MM.105 Process Recommended Order - Stores PR.MM.110 Process Warehouse Transfer PR.MM.115 Manage Disposals of Inventory PR.MM.120 Manage Supplementary Stocktake PR.MM.121 Manage Cyclic Stocktake Follow-up of a supplier on the delivery of material. This process may generate and transmit expedite letters automatically or generate reports to enable a purchasing officer to contact the supplier on order status. Process Invoice Price Mismatch enables the purchasing group to investigate and resolve any discrepancies between the price on the Invoice and that which was on the Purchase Order. This may involve contacting the supplier for resolution. Investigation and resolution of all discrepancies raised in relation to the supply of material. Maintain a stock item's inventory control information from establishment to retirement and monitors the processes to support warehouse management and life cycle of material movement. Finalise an adhoc stock count for an item that has been requested by warehouse personnel. The count is finalised and transactions are completed to balance inventory holdings. This process enables Recommended Orders to be created by either an item breaking its reorder point, or created manually by an Inventory Controller to meet a business requirement. It provides tasks to review the recommended order created and modify if required before passing the requirement to purchasing for fulfilment, either by purchase or transfer. Re-distributes material (either automatically or manually) between warehouses, depending upon need. Disposal of surplus material, including tasks for: - Identifying surplus, excess or obsolete stock; - Analysing selected stock items and determining an appropriate action; - Approving write-offs; - Picking of stock items and disposing. Enables the definition and implementation of a supplementary stocktake programme over a period of time to allow the counting of stock to align with the Inventory Policy. Enables the definition and implementation of a cyclic stocktake programme over a period of time to allow the counting of stock to align with the Inventory Policy ABB. All rights reserved. Page 24