SEMESTER PROJECT REPORT – 2011

BUSINESS PROCESS OF STANDARD ERP MODULE IMPLEMENTED IN PSO

SUBMITTED BY ….
SYED AKBAR SHAH (54203)

SYEDA QURATULAIN (54140)

UMAIR BUTT (53397) SUBMITTED TO ….

SHAN ALI (54299) PROF .EHSAN – UL – HAQ
)

ACKNOWLEDGEMENT

We are heartily thankful to our supervisor, Mr. EHSAN – UL – HAQ, whose encouragement,
guidance and support from the initial to the final level enabled us to develop an understanding of
the subject.

Lastly, we offer our regards and blessings to all of those who supported us in any respect during
the completion of the project.

Special thanks to Madam Shaista Zaidi, senior executive management information system at
PAKISTAN STATE OIL.

SYED AKBAR SHAH

SYEDA QURATUL AIN

UMAIR BUTT

SHAN ALI

ERP stands for Enterprise Resource Planning. ERP is a way to integrate the data and processes of an
organization into one single system. Usually ERP systems will have many components including
hardware and software, in order to achieve integration, most ERP systems use a unified database to
store data for various functions found throughout the organization.

The term ERP originally referred to how a large organization planned to use organizational wide
resources. In the past, ERP systems were used in larger more industrial types of companies.
However, the use of ERP has changed and is extremely comprehensive, today the term can
refer to any type of company, no matter what industry it falls in. In fact, ERP systems are used
in almost any type of organization - large or small.
In order for a software system to be considered ERP, it must provide an organization with
functionality for two or more systems. While some ERP packages exist that only cover two
functions for an organization (QuickBooks: Payroll & Accounting), most ERP systems cover
several functions.

Today's ERP systems can cover a wide range of functions and integrate them into one unified
database. For instance, functions such as Human Resources, Supply Chain Management,
Customer Relations Management, Financials, Manufacturing functions and Warehouse
Management functions were all once stand alone software applications, usually housed with
their own database and network, today, they can all fit under one umbrella-the ERP System.

Integration is an extremely important part to ERP's. ERP's main goal is to integrate data and
processes from all areas of an organization and unify it for easy access and work flow. ERP's
usually accomplish integration by creating one single database that employs multiple software
modules providing different areas of an organization with various business functions.

Although the ideal configuration would be one ERP system for an entire organization, many
larger organizations usually create and ERP system and then build upon the system and
external interface for other stand alone systems which might be more powerful and perform
better in fulfilling an organizations needs. Usually this type of configuration can be time
consuming and does require lots of labor hours.

Evolution of ERP System:

An ideal ERP system is when a single database is utilized and contains all data for various
software modules. These software modules can include:

Manufacturing: Some of the functions include; engineering, capacity, workflow management,

quality control, bills of material, manufacturing process, etc.

Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash
management, etc.

Human Resources: Benefits, training, payroll, time and attendance, etc

Supply Chain Management: Inventory, supply chain planning, supplier scheduling, claim
processing, order entry, purchasing, etc.

Projects: Costing, billing, activity management, time and expense, etc.

Customer Relationship Management: sales and marketing, service, commissions, customer

contact, calls center support, etc.

Data Warehouse: Usually this is a module that can be accessed by an organizations customers,
suppliers and employees.

Figure:
Before ERP systems, each department in an organization would most likely have their own
computer system, data and database. Unfortunately, many of these systems would not be able
to communicate with one another or need to store or rewrite data to make it possible for cross
computer system communication. For instance, the financials of a company were on a separate
computer system than the HR system, making it more intensive and complicated to process
certain functions.

Once an ERP system is in place, usually all aspects of an organization can work in harmony
instead of every single system needing to be compatible with each other. For large
organizations, increased productivity and less types of software are a result.

Figure:
Implementing an ERP system is not an easy task to achieve, in fact it takes lots of planning,
consulting and in most cases 3 months to 1 year +. ERP systems are extraordinary wide in scope
and for many larger organizations can be extremely complex. Implementing an ERP system will
ultimately require significant changes on staff and work practices. While it may seem
reasonable for an in house IT staff to head the project, it is widely advised that ERP
implementation consultants be used, due to the fact that consultants are usually more cost
effective and are specifically trained in implementing these types of systems.

One of the most important traits that an organization should have when implementing an ERP
system is ownership of the project. Because so many changes take place and its broad effect on
almost every individual in the organization, it is important to make sure that everyone is on
board and will help make the project and using the new ERP system a success.
Usually organizations use ERP vendors or consulting companies to implement their customized
ERP system. There are three types of professional services that are provided when
implementing an ERP system, they are Consulting, Customization and Support.

Consulting Services - usually consulting services are responsible for the initial stages of ERP
implementation, they help an organization go live with their new system, with product training,
workflow, improve ERP's use in the specific organization, etc.

Customization Services - Customization services work by extending the use of the new ERP
system or changing its use by creating customized interfaces and/or underlying application
code. While ERP systems are made for many core routines, there are still some needs that need
to be built or customized for an organization.

Support Services- Support services include both support and maintenance of ERP systems. For
instance, trouble shooting and assistance with ERP issues.

Figure:

There are many advantages of implementing an EPR system; here are a few of them:
  A totally integrated system
 The ability to streamline different processes and workflows
 The ability to easily share data across various departments in an organization
 Improved efficiency and productivity levels
 Better tracking and forecasting
 Lower costs
 Improved customer service

While advantages usually outweigh disadvantages for most organizations implementing an ERP
system, here are some of the most common obstacles experienced:

Usually many obstacles can be prevented if adequate investment is made and adequate
training is involved, however, success does depend on skills and the experience of the
workforce to quickly adapt to the new system.

 Customization in many situations is limited

 The need to reengineer business processes
 ERP systems can be cost prohibitive to install and run
 ERP's may be too rigid for specific organizations that are either new or want to move
in a new direction in the near future.

ERP MODULES v.4.6

•SAP BC (BASIS Components) accessed through SAPGUI
SAP BASIS addresses all security issues by incorporating an authorization module. With increased
potential for security breaches in the computer systems around the world, BASIS consultants face a tough
task of maintaining the integrity and administering the security of SAP systems. In SAP, security is
administered for objects (profiles and authorizations). Users are only authorized to see or change the
parts of the system required by their respective job responsibilities.

•SAP FI (Financial Accounting)

The SAP FI (Financial Accounting) Module has the competence of meeting all the accounting
and financial needs of an organization. Along with other managers, Financial Managers within
your business and same module can review the financial position of the company in real time as
contrasted to legacy systems which necessitate overnight updates before financial statements
frequently and can be generated for management review. The real-time functionality of the
SAP modules allows for better decision making and strategic planning. The FI Module
incorporates with other SAP Modules such as MM (Materials Management), PP (Production
Planning), SD (Sales and Distribution), PM (Plant Maintenance), and PS (Project Systems). The FI
Module also assimilates with HR (Human Resources) that includes PM (Personnel
Management), Time Management, Travel Management, Payroll. Document transactions
occurring within the precise modules generate account postings by means of account
determination tables.

•SAP CO (Controlling)

The SAP CO (Controlling) Module provides supporting information to Management for the purpose of
planning, reporting, as well as monitoring the operations of their business. Management decision-making
can be achieved with the level of information provided by this module. Some of the components of the
CO(Controlling) Module are as follows: 

·         Cost Element Accounting

·         Cost Center Accounting

·         Internal Orders

·         Activity-Based Costing (ABC)

·         Product Cost Controlling

·         Profitability Analysis

·         Profit Center Accounting

•SAP HR/HCM (Human Resource/Human Capital Management)
SAP Human Capital Management (SAP HCM) is a global Human Resources management system solution,
with personal administration, organization management, personnel development, recruitment, benefits,
and payroll and time management capabilities including standard language, currency and regulatory
requirements for more than 30 countries. This SAP HCM training course not only prepares you for the
SAP HCM certification exam, but it also equips you with core configuration skills and sound functional
knowledge, to perform an impressive work at job. 

•SAP AM (Asset Management) / EAM (Enterprise Asset Management)

Enterprise asset management (EAM) means the whole life optimal management of the physical assets of
an organization to maximize value. It covers such things as the design, construction, commissioning,
operations, maintenance and decommissioning/replacement of plant, equipment and facilities.
"Enterprise" refers to the management of the assets across departments, locations, facilities and, in
some cases, business units. By managing assets across the facility, organizations can improve utilization
and performance, reduce capital costs, reduce asset-related operating costs, extend asset life and
subsequently improve ROA (return on assets).

•SAP MM (Material Management), MRP (Materials Requirement Planning),

Material Ledger)
SAP MM is the materials management module of the SAP ERP software package from SAP AG that is
used for Procurement Handling and Inventory Management. Materials management is integrated with
other modules such as SD, PP and QM. Materials management is used for procurement and inventory
management.

The module has two important master data - material and vendor. Broadly, the various levels that can
be defined for a SAP MM implementation are: Client, Company Code, Plant, Storage Location and
Purchase Organization.

SAP Materials management covers all tasks within the supply chain, including consumption-based
planning, planning, vendor evaluation and invoice verification. It also includes inventory and warehouse
management to manage stock until usage dictates the cycle should begin again. Electronic Kanban/Just-
in-Time delivery is supported.
It can be divided into five major components. There are: materials management, plant maintenance,
quality management, production planning and control, and a project management system. Each is
divided into number of subcomponents.

SAP MM is all about managing the materials i.e the resources of an organization. These resources
include man, manpower and materials. The main functionality within MM includes purchasing,
Inventory management, valuation and assignment, batch management and classification.

•SAP SD (Sales & Distribution)

SAP SD handles sales activities and distribution, also called shipping. The main activities are the sales
order handling, and the distribution of shipments to customers. Also the billing process, customer
invoice, delivery, and risk management is handled from the SD module.

•SAP PP/DS (Production Planning and Detailed Scheduling)

Manufacturing in any company has at its disposal various resources. The nature and the constraints of
these resources are determined by some strategic decisions. The day-to-day running of manufacturing
rests with Production Planning and Control (PP&C) The purpose of PP&C is to ensure that manufacturing
runs effectively and efficiently and produces products as required by customers. SAP R/3 has a highly
integrated Production Planning System. The PP module is divided into two Sub-modules, 'PP-PI' and
'Production General'. PP-PI sub-module is designed for process industries like Oil and Gas.

•SAP PM (Plant Maintenance)

The SAP Plant Maintenance comprises of the following activities such as inspection, to measures and
establish the actual condition of a technical system, preventive maintenance to measures and maintain
the ideal condition of a technical system, repair to measures and restore the ideal condition of a
technical system and other measures that need to be taken using the maintenance organization. SAP
PM is closely integrated with other modules (for example, Materials Management, Production, Sales and
Distribution, Personnel Management, and Controlling) the data is always kept current and processes
that are necessary for Plant Maintenance and Customer Service are automatically triggered in other
areas (for example, a purchase requisition for non-stock material in the Materials
Management/Purchasing area).
•SAP QM (Quality Management)
The SAP QM module supports tasks associated with quality planning, quality inspection and quality
control throughout an enterprise. It sets the specifications for quality and standard testing procedures,
controls the creation of quality certificates and manages notifications related to quality. It also stores
the quality data for raw materials, goods-in-process and finished goods.

•SAP PLM (Product Lifecycle Management)

SAP Product Lifecycle Management (PLM) is the integrated SAP solution that focuses on all product-
related information needed for efficient product development and manufacturing from start to end. It
supports exchanging essential information with business partners and provides access via Web
technology.

•SAP PS (Project System)

Projects are generally part of the internal processes of a company. To be able to control all tasks in
project execution, you need an organizational form that is specific to the project and which is shared by
all departments involved. Before you can carry out a project in its entirety, the project goals must be
precisely described and the project activities to be carried out must be structured. A clear, unambiguous
project structure is the basis for successful project planning, monitoring, and control.

•SAP DMS (Document Management System)

SAP DMS are for storing documents such as CAD drawings, Materials pictures etc. with the document
management system, users will be able to view the documents with ease within their SAP systems.
•SAP BW (Business Warehouse) BIW (Business Intelligence & Data
Warehousing)
In the fiercely increasing competition amongst corporations it has become mandatory to make quick and
sound crucial business decisions based on analysis of business critical data. This is the point where data
warehouses come into play. Although many companies are relying on data warehouses, they are still
struggling to achieve positive results due to fragmented and inconsistent data. For them SAP’s Business
Information Warehouse (BW) provides a complete information factory solution. BW is the central
component in the SAP suite of applications with an added advantage of being a software package that
can be used in both SAP and non-SAP environments.

SAP Business Information Warehouse (SAP BW) is the name of the Business Intelligence, analytical,
reporting and Data Warehousing (DW) solution which is one of the major enterprise software
applications produced by SAP AG. It was originally named SAP BIW, (Business Information Warehouse),
but is now known as "SAP NetWeaver BI".

ERP 6.0 (2005) with ECC 6

•SAP CRM (Customer Relationship Management)

Customer relationship management (CRM) is a broadly used term that covers concepts used by
organizations to manage their relationships with customers and stakeholders to reduce costs and
increase profitability by solidifying customer loyalty. CRM brings together information from all sources
within and outside an organization to give one, holistic view of each customer in real time. Customers
can benefit from their data being utilized within a CRM system. For instance, an increase in unsolicited
telemarketing calls is generally resented by customers while a small number of relevant offers is
generally appreciated by customers. CRM software can enhance the collection and analysis of customer
behavior leading to more relevant communications with customer.

Figure:
•SAP SCM (Supply Chain Management)
Supply chain management (SCM) is the oversight of materials, information, and finances as they move in
a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain
management involves coordinating and integrating these flows both within and among companies. It is
said that the ultimate goal of any effective supply chain management system is to reduce inventory
(with the assumption that products are available when needed). As a solution for successful supply chain
management, sophisticated software systems with Web interfaces are competing with Web-based
application service providers (ASP) who promise to provide part or all of the SCM service for companies
who rent their service. Supply chain management’s three main flows: The Product Flow, the Information
Flow, and the Finance Flow.

The product flow includes the movement of goods from a supplier to a customer, as well as any
customer returns or service needs. The information flow involves transmitting orders and updating the
status of delivery. The financial flow consists of credit terms, payment schedules, and consignment and
title ownership arrangements.

The SAP® Supply Chain Management (SAP SCM) application offers companies not only planning and
execution solutions to manage operations but also helps boost visibility and collaboration to extend
their operations beyond corporate boundaries. SAP SCM empowers companies to adapt their supply
chain processes to an ever-changing competitive environment, transforming traditional supply chains
from linear, sequential processes into an adaptive supply chain network in which communities of
customer-centric, demand-driven companies share knowledge, intelligently adapt to market changes
and proactively respond to shorter, less predictable life cycles.

Figure:

•SAP SRM (Supplier Relationship Management)

Supplier relationship management is a comprehensive approach to managing an enterprise's
interactions with the organizations that supply the goods and services it uses. The goal of supplier
relationship management (SRM) is to streamline and make more effective the processes between an
enterprise and its suppliers just as customer relationship management (CRM) is intended to streamline
and make more effective the processes between an enterprise and its customers. SRM includes both
business practices and software and is part of the information flow component of supply chain
management (SCM). SRM practices create a common frame of reference to enable effective
communication between an enterprise and suppliers who may use quite different business practices and
terminology. As a result, SRM increases the efficiency of processes associated with acquiring goods and
services, managing inventory, and processing materials.

According to proponents, the use of SRM software can lead to lower production costs and a higher
quality, but lower priced end product. SRM products are available from a number of vendors, including
12 Technologies, Manugistics, PeopleSoft, and SAP.

SAP SRM simplifies and automates procurement. The SAP SRM process integrates supplier qualification,
negotiation, and contract management more tightly and cost-effectively with other enterprise functions
and their suppliers’ processes – through a single framework with support for multichannel suppliers.

The SAP SRM application is designed as a long-term foundation to secure the cost and quality
advantages of center-led purchasing and broadened supplier involvement for enduring value and long-
term results.

Figure:
•Master Data Management (MDM 5.5 SP04)
There is a wish for consistent master data, but its realization is made difficult by increasingly scattered
storage of data in different systems, the global use of master data and employment of one and the same
set of data in various contexts. Managing an object’s partial attributes in different systems, caused by
system-spanning processes, is becoming more complicated. Approaches aimed at integrating systems
are only partially capable of solving the problems of scattered data because integration scenarios are
built on correct master data that is often not available. Without consistent master data, however, the
complexity of business information processes cannot be reduced. In addition, incorrect or insufficient
master data management will result in significantly restricted data quality in the medium to long term.
This will lead to increased efforts being required for ongoing maintenance and migration, increased cost,
and, in the worst case, a loss of business partners or competitiveness. SAP Master Data Management
provides users with a tool to optimally master any challenges with respect to central master data
management and maintenance.

Benefits:

Companies that manage their business processes based on consistent data across system
boundaries will derive significant benefits from master data management, such as:

 Companywide consistent data

 Data consistency across systems and the company within the business network
 Improved collaboration with business partners
 Optimized business processes
 High-quality data
 Cleaned-up inconsistent or outdated master data
 Lower cost for data management, data distribution and correction of erroneous data
 Improved competitiveness
 Figure:

•SAP CPM (Corporate Performance Management)

SAP-systems consulting services to help companies get fit for Business Intelligence and Corporate
Performance Management and gives support to cover all questions and matters concerning strategy,
conceptual design and corporate-wide implementation of SAP BI & CPM software components.

 Introduce key performance indicator systems

 Set up control loops for operative process improvements
 Set up and optimize corporate-wide information systems and data warehouses
 Set up solutions for integrated planning, simulation, and forecasting
 Introduce integrated control solutions and management cockpits

Figure
•SAP SEM (Strategic Enterprise Management)

SAP Strategic Enterprise Management (SAP SEM) delivers end-to-end ERP software capabilities
to support the entire performance management life cycle, including:

 Consolidated financial reporting – With SAP SEM, you can generate consolidated
financial and managerial reports for a globally distributed business or entity. The
application can aggregate financial data from SAP and non-SAP systems into a single
analytical reporting environment, enabling you to monitor the financial performance of
individual subunits.
  Planning, budgeting, and forecasting – SAP SEM helps enables you to model various
planning options and use preconfigured planning software to get a quick start on
operational planning tasks such as cost center planning and sales planning. The
application supports traditional budgeting and rolling forecasts as well as collaborative
planning.
 Corporate performance management and scorecards – With SAP SEM, you can develop
KPIs that support a number of popular scorecard methodologies, including balanced
scorecard, economic value-added and activity-based costing methods. You can link
operational and strategic plans and develop scorecards and performance measures
based on financial and nonfinancial data.
 Risk management – SAP SEM helps you identify, quantify, and analyze business risks
within individual business units and manage risk-reducing activities.

Figure:
   

INTRODUCTION OF THE COMPANY

PSO is the market leader in Pakistan’s energy sector. The company has the largest network of retail outlets to serve
the automotive sector and is the major fuel supplier to aviation, railways, power projects, armed forces and
agriculture sector. PSO also provides Jet Fuel to Refueling Facilities at 9 airports in Pakistan and ship fuel at 3 ports.
The company takes pride in continuing the tradition of excellence and is fully committed to meet the energy needs
of today and rising challenges of tomorrow.

Pakistan State Oil, the largest oil marketing company in the country, is currently engaged in storage, distribution
and marketing of various POL products. The company’s current market share of 82.3% in the black oil market and
59.4% share in the white oil market, alone speak volumes about its success.
   

HISTORY:
The creation of Pakistan State Oil (PSO) can be traced back to the year 1974, when on January 1st; the government
took over and merged Pakistan National Oil (PNO) and Dawood Petroleum Limited (DPL) as Premiere Oil Company
Limited (POCL).

Soon after that, on 3rd June 1974, Petroleum Storage Development Corporation (PSDC) came into existence. PSDC
was then renamed as State Oil Company Limited (SOCL) on August 23rd 1976. Following that, the ESSO
undertakings were purchased on 15th September 1976 and control was vested in SOCL. The end of that year (30th
December 1976) saw the merger of the Premier Oil Company Limited and State Oil Company Limited, giving way to
Pakistan state Oil (PSO).
After PSO’s inception, the corporate culture underwent a comprehensive renewal program which was fully
implemented in 2004. This program over the years included the revamping of the organizational architecture,
rationalization of staff, employee empowerment and transparency in decision making through cross functional
teams. This new corporate renewal program has divided the company’s major operations into independent
activities supported by legal, financial, informative and other services. In order to reinforce and monitor this
structural change, related check and balances have been established by incorporating monitoring and control
systems.
Human Resource Development became one of the main priorities on the company’s agenda under this corporate
reform.

It is due to this effective implementation of corporate reform and consistent application of the best industrial
practices and business development strategies, that PSO has been able to maintain its market leadership in a highly
competitive business environment.
   

DETAILED ERP MODULE IMPLEMENTATION:

SAP in PSO

SAP is Enterprise Resource Planning (ERP) software. Use of SAP makes it possible to track and manage, in
real-time, sales, production, finance, accounting and human resources in the company. It is been widely
used in the company’s head office and upcountry locations including depots, installations etc. Eleven
modules have been procured to cater the wide spectrum needs of the PSO employees. Brief description
of all the modules is as under.

Modules used in PSO

1. Controlling (CO)
2. Finance (FI)
3. Human Resource (HR)
4. Material Management (MM)
5. Plant Maintenance (PM)
6. Production Planning (PP)
7. Project System (PS)
8. Quality Management (QM)
 9. Sales & Distribution (SD)
10. SILO
11. TD

Finance & Controlling (FI & CO)

FI module is being designed for automated management and external reporting of general ledger,
accounts receivable, accounts payable and other sub-ledger accounts with a user defined chart of
accounts. As entries are made relating to sales production and payments journal entries are
automatically posted. This connection means that the "books" are designed to reflect the real situation.
CO Controlling--represents the company's flow of cost and revenue. It is a management instrument for
organizational decisions. It also automatically updated as events occur.

Departments using FI & CO module are:

 Admin
 Aviation & Marine with all airport locations
 Brand management
 Cards
 Construction & RF
 Corporate Planning
 Finance (General Accounts, FR, Treasury, Insurance, Freight Pool, CCB, AP, Payroll)
 HR
 HSE
 QA
 IC with all divisional offices
 IRD
 IS
 L&C
 Legal Affairs
 Logistics
 LPG
 Operations with all depots and terminal
 Procurement & Services
 Retail with all divisional offices
 Security & Services
 Supply
 T & OD

Human Resource
The HR module enables effective management of information about the people in the organization. It is
integrated with other SAP modules and external systems. From the Organization Management
perspective, companies can model a business hierarchy, the relationships of employees to various
business units and the reporting structure among employees. The Personnel Administration (PA) sub
module helps employers to track employee master data, work schedules, salary and benefits
information. The Personnel Development (PD) functionality focuses on employees' skills, qualifications
and career plans. Finally, the Time Evaluation and Payroll sub modules process attendance and
absences, gross salary and tax calculations, and payments to employees and third party vendors.

Departments using HR module are:

 Finance (Payroll)
 HR
 IRD
 T & OD

Material Management (MM)

SCM (Supply Chain Management) is being handled through this module. Process comprises of
Purchasing, Inventory Management and Vendor Payment. Strong MIS ensures the timely availability of
reports ranging from the middle management to higher management.

Departments using MM module are:

 Admin
 Aviation & Marine with all airport locations
 Brand management
 Cards
 Construction & RF
 Corporate Planning
 Finance (General Accounts, Treasury, Insurance)
 HR
 HSE
 QA
 IC with all divisional offices
 IRD
 IS
 L&C
 Legal Affairs
 Logistics
 LPG
 Operations with all depots and terminal
  Procurement & Services
 Retail with all divisional offices
 Security & Services
 Supply
 Afghan Export
 T & OD

Plant Maintenance (PM)

This module is being used for maintaining & Restoring target condition of equipments.

Departments using PM module are:

• Admin
• Aviation & Marine with all airport locations
• Finance (General Accounts, AP)
• IS
• Operations with all depots and terminal
• Procurement & Services

Production Planning (PP)

SAP Production Planning is an Integrated Production Planning & Production Control Tool

Production Planning is being used at:

• Lubricant Manufacturing Terminal – Korangi

• Lubricant Manufacturing Plant A – Kemari
• Can Manufacturing Plant – Korangi
• L&C Dept Head Office
• Product Accounts

BUSINESS PROCESSES:
Project System is an Integrated Project Management Tool. The primary functions of Project System
are to plan, execute and monitor the Costs and Progress of the Project. The business process starts
from Budget Proposal phase to Capitalization of the cost into Assets.
 • In PSO, PS is used for the following activities
• Budget Proposals
• Budget Approvals
• Budget Availability
• Material Procurements
• Services Procurements
• Settlements of costs
• Capitalizations at project end.

Departments using Project System are:

• Admin
• Aviation & Marine
• Construction & RF
• Corporate Planning
• Finance (General Accounts, AP)
• IC
• IS
• L&C
• LPG
• Operations
• Procurement & Services
• Retail
• Security Services

Quality Management (QM)

QM is a quality control and information system supporting quality planning, inspection, and control for
manufacturing.

Departments using QM are:

• Lubricant Manufacturing Terminal – Korangi

• Lubricant Manufacturing Plant A – Kemari
• L&C Dept Head Office

Sales & Distribution (SD)

SD module helps to optimize all the tasks and activities carried out in sales, shipment and billing. Key
elements are; pre-sales support, inquiry processing, quotation processing, sales order processing,
delivery processing, billing and sales information system.

Departments using SD are:

 Aviation & Marine with all airport locations

 Cards
 Construction & RF
 Finance (CCB Department)
 IC with all divisional offices
 L&C
 Logistics
 LPG
 Operations with all depots and terminal
 Retail with all divisional offices
 Afghan Export

SILO
The Silo Management System, which provides functionality for managing physical inventories in tanks by
creating tank, dips in the R/3 System, and comparing those inventories at any time with the book stocks.
In that way, gains and losses can always be determined, and goods movements can be monitored.

Departments using SD are:

 Aviation & Marine with all airport locations

 Finance (Product Accounts)
 Operations with all depots and terminal

TD
The Transportation and Distribution (TD) application area covers the logistics activities related to:

 Delivery of product from a delivering plant to a customer

 Transfer of product between two company-owned locations
 Receipt of purchased product from a vendor

These activities are carried out across the processes of scheduling, load confirmation, and delivery
confirmation.
  Aviation & Marine with all airport locations
 Logistics
 Afghan Export

Modules used in PSO

1. Controlling (CO)
2. Finance (FI)
3. Human Resource (HR)
4. Material Management (MM)
5. Plant Maintenance (PM)
6. Production Planning (PP)
7. Project System (PS)
8. Quality Management (QM)
9. Sales & Distribution (SD)
10. SILO
11. TD

In the standard by sap

We have selected the business process of

1 Quality management

2. Plant management.

Business PSO Standard %age

process
Quality
management
Plant
management