MASTER DATA MANAGEMENT (MDM) FOR VENDOR MASTER OF ESSAR GROUP OF COMPANIES

Global Sourcing Process Owner Sign-off Name:

Mr. R A Khandalkar / Mr. Ajoy Ghosh

Sign-off Date: Signature:

EEC Process Owners Sign-off Name:

Mr. Nandkumar / Mr.Shankaran Iyer

Sign-off Date: Signature:

ESTL Process Owner Sign-off Name:

Mr G K Iyer

Sign-off Date: Signature: EPOL Process Owner Sign-off Name:

Mr. Sandip Sinha

Sign-off Date: Signature: EOL Process Owner Sign-off Name:

Mr. S L Ravi

Sign-off Date: Signature: EITL Consultant Sign-off Name:

Mr. Bharat Ghelani / Mr Balaji Raghavan / Mr V R Venkatesh / Mr Mohile / Mr V Anantnarayan

Sign-off Date: Signature:

Finance Name: Mr. Vasant Savla / Mr Azad Somani / Mr V D Mutha / / Mr K Natrajan /

Mr J L Patel Sign-off Date: Signature:

MASTER DATA MANAGEMENT (MDM) FOR VENDOR MASTER What is Master Data Management (MDM): An organization’s database is always stored in heterogeneous IT system and applications. However, data maintenance and updating still take place almost exclusively in the database being used. Due to this, other parallel databases remain unchanged and diverge – data consistency is no longer ensured. The consequences are redundancies, duplications and inconsistencies in the data that affect the efficiency of the entire business process. It is hence very important to have a centralized process of data management which effectively eliminates the problems mentioned above. Objective: After the implementation of SAP- ECC6 and Vendor Unification Initiative at group level, all group companies shall be operating with unified Vendor Master as well as unique vendor codes. All Vendor Master Activities under such scenario will be a centralized process, which will be handled by a team called Master Data Management (MDM) team. MDM is a workflow-driven process in which business units and IT collaborate to harmonize, cleanse, publish and protect common information assets that must be shared across the ESSAR group. MDM ensures the consistency, accuracy, stewardship and accountability for the core information of the enterprise. Role & Responsibility: It will be the sole responsibility of the MDM Team (located at Mumbai and will be represented by a co-ordinator in Hazira & Vadinar) to cater to all Vendor Master Processes & requirements of various business units / locations. MDM team will monitor all Vendor Creation/Change/Extension requests, authenticate them and take appropriate action on the request. Vendor codes will be created through “Vendor creation request” tool once request is approved by MDM team. They will be responsible for monitoring of all vendor master (in SAP MM module) related activities and will carry out periodic updations as and when necessary. Any change request in the existing data to be supported by authentic documents and will have to be approved by MDM team before they are incorporated into the system.

Business Process Description: Master Data Management focuses on the data to be managed and the processes surrounding the management of the data including the following: Define: Master data is a set of core data elements with their associated attributes, properties, legal entity, vendor, geographical location, employees, etc that span the company’s IT system and drive the business. Master data is not transaction data. Cleanse: Cleansing the existing master data to create a clean MASTER copy. Maintain/Govern: Defining the processes to manage the generation of master data (centrally or on-going in various systems) Distribute: Distributing the master data to linked applications. The following methodology will be followed for Vendor code request creation, interface with SAP, providing user access, Vendor code generation and information back to user.

Requirement comes from various User departments for creation of New Vendor Code. It is the responsibility of user to check the existence of vendor code in the system before they make the request. The request to be approved by concerned approval authority (As per annexure I)

User Log into SAP and need to fill up the “Vendor creation form “by using the link URL: http://www.essar.com/vrf/login/l_Login.asp from the SAP screen itself.

Request created in “Vendor creation form “is based on the SAP mandatory fields.

Request is then validated & approved by the respective HOD. (List of approval authority is attached in annexure 1).

Request is then again crosschecked by MDM in “Vendor database / library” by using

the auto check tool for all proper Value & attributes and existence of vendor data / SAP vendor code in vendor database.

If the detailed information of the requested vendor along with its approved tag is available in vendor database, then the new vendor code will be created in SAP. An e-mail is sent to the user stating the new code.

If existing SAP code is available in the vendor database then an auto generated mail

is sent to the user stating the existing SAP code. If it requires to be extended to the user company code or and other purchasing organization then system will accept the request for extension.

If the detailed information of vendor is not available in vendor database then the

vendor needs to be registered and approved as per the vendor management policy and then new SAP code will be created. An e-mail is sent to the user stating the requirement of vendor approval followed by the new SAP code.

New SAP vendor code will be created for any urgent / emergency requirement by

skipping step no 8 subject to the approval with valid justification from the concerned

HOD. But the vendor approval (Pre registration evaluation) formalities need to be completed at the earliest.

Following are the phase wise plan for Unified vendor code in ECC 6 against existing

client:

a. Existing client no 040, 041 & 042: From 1st week of April 2007, all vendor codes will be created in ECC 6.

b. Existing client no 010 & 020: Before it is the part of ECC 6 vendor code platform, their entire vendor creation request to be processed by MDM team as per the above mentioned procedures. Unified code will be created 1st in ECC 6 and with reference of unified code; vendor code will be created in 010 & 020. After the inclusion of 010 & 020 in ECC 6, the unified code will only be used by the user of 010 & 020 for business transaction.

c. Mapping table of unified vendor code, client & company specific code will be available to the user.

Data will be transferred using the interface (BDC program) between vendor database

& SAP,

Vendor code is created in SAP based on the client.

For ESSAR OIL, Unified code will be created 1st in ECC 6 and with reference of unified code; vendor code will be created in 400 systems. Mapping table will be maintained between unified codes and 400 codes.

A flowchart depicting above activities is shown in Annexure II. MDM Team: The members of MDM team will be located In Mumbai, Hazira & Vadinar and will be headed by Chiranjib Datta. The team will comprise of the following persons. 1. Chiranjib Datta ECL Mumbai 2. Atual Phalhari ECL, Mumbai 3. Rohit Dabre ECL,Mumbai 4. Kirti Naringrekar ECL,Mumbai 5. Viral K Joshi ESTL, Hazira 6. S Sutradhar EPol, Hazira 7. Anand Menon EOL, Vadinar 8. Aseem Garg EOL, Vadinar (Marketing) 9. Chekrapani Das EOL , IST Mumbai 10.Boudhayan Mukharji EOL, IST Mumbai Benefits of implementing MDM: Master Data Management provides mechanisms for enabling global data acquisition and interchange, particularly across application areas. Data definitions and descriptions are precise to support reuse or multiple users of data. Documentation of data characteristics to support automated sharing of data, including retrieving, and exchange of data.

MDM provides uniform guidance for the identification, development, and description of elements and domains. An important part of master data consolidation is handling the rejections from the cleansing process. The web based front-end also provides the functionality to manage the ‘create’ process of master data. New master data needs to be created in the central repository with the use of the front-end. Master data management usually deals with high volumes and to provide easy data governance is essential. Flexible workflow routing and integration with e-mail provides the framework to effectively manage the quality of master data in the repository.

ANNEXURE – I

LIST OF HOD AUTHORISED FOR VENDOR CODE CREATION APPROVAL Mr G K Iyer / Mr Dipak Sindkar ESTL Mr Sandip Sinha / Mr Vijay Khadke EPoL Mr Ajoy Ghosh / Mr Nandkumar ECL Mr R A Khandalkar / Mr Rakesh Kumar ECL Mr J N Desai ECL Mr S K Vaidya ECL Mr Srinivas Reddy EOL, Vadinar Mr Deepak Saxena EOL, Vadinar Mr K Natarajan EOL, Marketing Mr Sanjeev Rathi EOL, IST Mr D Subramanian ECL Mr D V Chaudhary Global Supplies FZE, China

Annexure II Vendor code creation flow chart

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YES

SAP

EMAIL TO USER

NEW VENDOR CODE CREATION THROUGH VENDOR CODE CREATION (VCC) FORM

NECESSITY OF NEW CODE FOR VENDOR CREATION FROM VARIOUS USERS

USER LOG INTO VCC FORM FROM SAP SCREEN THROUGH URL: http://www.essar.com/vrf/login/l_Login.asp/NEW VENDOR CODE

(USER MUST CHECK THE EXISTENCE OF VENDOR SAP VENDOR CODE IN VENDOR DATABASE BEFORE MAKING THE REQUEST)

REQUEST CREATED IN VCC FORM IS BASED ON SAP

MANDATORY FIELDS

REQUEST TO BE APPROVED BY CONCERNED APPROVAL AUTHORITY AS MENTIONED

IN ANNEXURE OF MDM DOCUMENT

APPROVED REQUEST SAVED IN VENDOR

DATABASE FOR VENDOR CODE

CREATION

NEW SAP CODE

USE THE EXISTING SAP CODE / PUSH THE

DATA TO SAP FOR NEWCODE CREATION

AUTO CHECKS DONE FOR THE AVAILABILITY OF VENDOR

INFORMATION INCLUDING APPROVED TAG / EXISTING

SAP CODE

VENDOR DATABASE

VENDOR APPROVAL AS PER VENDOR

MANAGEMENT POLICY(EXCLUDING

VADINAR OPERATIOANL ITEM)