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ACKNOWLEDGEMENT
I express my profound & heartiest regards to Mr R. K. Chugh Vice President Energy Distribution who gave me this opportunity to conduct the project work in the organization. I am also highly indebted to my esteemed guide Mr. Aditya Dubey whose continued and valuable guidance can never be forgotten by me and without whom, this study could not have got present shape. I am immensely grateful to my esteemed faculty guide Prof. Pratima Sharma for her constant guidance behind the screen, giving me support whenever I needed for my project. I am also thankful to Mr. Kuldeep Tickoo his constant guidance and support at every step of my project. Last but not the least, I would also like to express my thanks to my family & friends who inspired me to put in my best effort for the preparation of the project report.
Himanshu Goel PGDM (General) Roll No.: 2K91A67 Asia Pacific Institute of Management, New Delhi
Declaration
This is to certify that the Summer Internship Project Report titled Development of Product Code Generation and Pricing Tool for enhancing operational efficiency of channel business is prepared by me is an original work that this work has not been submitted to Asia Pacific Institute of Management or elsewhere in any form earlier. My indebtedness to other works / publications has been duly acknowledged at the relevant places and in the bibliography. The project work was carried during the period of 1st April 2010 to 31st May 2010 in Siemens Ltd, Gurgaon.
Project Guide:
Himanshu Goel
PGDM (General) 2K91A67
Date:
Certificate of Attendance
This is to certify that Mr. Himanshu Goel, a student of Asia Pacific Institute of Management, was engaged in Summer Internship Project in our organisation from 1st April 2010 to 31st May 2010. He has been Regular and punctual during the tenure of the Internship Project.
Mr. Aditya Dubey Senior Executive Product and Sales Siemens Ltd.
Content
Acknowledgement Authenticity Certificate Certificate of Attendance Table of Content List of Figures Executive Summary Introduction Need of the Project Benefits of the Project Objective and Scope Methodology Conclusion and Finding Recommendation 8 8 8 8 9 9 10 2 3 4 5 7
1. Companies Profile 1.1 Introduction 1.2 Energy automation 1.2.1 Introduction 1.2.2 List of Protection Devices 1.2.3 Market & Competition 2. Operation / Workflow of Siemens Ltd. 2.1 ED-EA Process Workflow 2.2 Operations in SIEMENS Ltd. (ED-EA PRO) 2.2.1 Order Acquisition Stage 2.2.2 Order Execution Stage 2.2.3 After Sales Service 2.3 Operations Scheduling 15 16 16 16 17 18 11 12 12 13 14
3. VAR (Value Added Resellers) and Distributor Partners Business Model 3.1 Siemens Distribution Scenario 3.2 VAR Model 3.3 Process Workflow for VAR Channel Partners 3.3.1 Activities as per Workflow Process 19 20 21 21
4. Developing Pricing Tool for VAR (Value Added Resellers) and Distributor Partners Business 4.1 Problem Identification 4.2 Problem Statement in the operation 4.3 Need of the Project 4.4 Focus On: Order Acquisition and Order Processing workflow 4.5 Proposed Solution 4.6 Useful resources / Tools 4.7 Steps involved in Developing Tool 4.7.1 Developing a Tool to achieve the Maximum Retail Price of the product. 4.7.2 Developing the Tool to generate the Product Information Code, RRN number and Maximum Retail Price simultaneously 4.8 Working of the Tool 4.9 Result 4.10) Advantages of the Tool 26 26 30 33 25 24 24 24 25 25 25 25
Recommendation Reference
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List of Figures
Figure 1.2 Energy Automation Product Portfolio Figure 2.1 ED-EA-PRO Process Workflow Figure 2.2 Customer Relationship Process Figure 3.1: Past Scenario of Siemens Ltd. Figure 3.2: Present Scenario of Siemens Ltd. Figure 3.3 : VAR Model for Distribution segment
Figure 3.5: Process Workflow for VAR Channel Partners Figure 4.1 Focus Area of the workflow Figure 4.2 Sample Sheet of MRP Developing Tool Figure 4.3 Sample sheet of the PRODUCT INFORMATION CODE, RRN no. generation Tool
Executive Summary
Introduction:
Value Added Resellers (VARs) are business partners that purchase goods, supply them with (for system) or without (for product) an additional value and finally resell them to the end customer. Sales & Engineering for system is done by VAR Partner and the Overall project implementation responsibility rests with VAR. Distributor Partner are pure dealers that act in the capacity of resellers that sell the relays to the end customers in Industry segment in loose and operate in the defined territory.
Generation of the Relay Reference Number and Maximum Retail Price of the product.
To reduce the processing time during the order acquisition process. Provide instant information to the customer without process delays.
To speed up the process of order acquisition and order processing through VAR channel partners, it is required to develop a tool through which Maximum Retail Price, Product Information Code, and Relay Reference number can be generated simultaneously. This tool will be provided to the VAR partners and Distributors, with the help of which they will get all the information required, while dealing with the end customer instantaneously and hence provide better response to the customer.
Methodology
Study the Customer Relationship Management Process of Siemens ED-EA-Product. Study the Supply Chain Management process of Siemens ED-EA-Product.
Identify the products and different variants available. Develop the Maximum Retail Price generation sheet for each product using Microsoft
Excel.
Develop the Relay Reference Number (RRN) generation sheet for each product using
Recommendations
MRP tool to be used for VAR customer to customer business.
RRN Generator and MRP in an integrated tool shall be useful for improving response
to customers. These tools to be standardized for sales and for VAR business.
Process performance to be monitored to measure the results and further improvements.
Chapter: 1:
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Company Profile
1.1) Introduction
The Siemens Group in India has emerged as a leading inventor, innovator and implementer of leading-edge technology enabled solutions operating in the core business segments of Industry, Energy and Healthcare. The Groups business is represented by various companies that span across these various segments. Siemens brings to India state-of-the-art technology that adds value to customers through a combination of multiple high-end technologies for complete solutions. The Group has the competence and capability to integrate all products, systems and services. It caters to Industry needs across market segments by undertaking complete projects such as Hospitals, Airports and Industrial units. The Siemens Group in India comprises of 22 companies, providing direct employment to over 17,000 persons. Currently, the group has 18 manufacturing plants, a wide network up of Sales and Service offices across the country as well as over 500 channel partners. Today, Siemens, with its world-class solutions plays a key role in Indias quest for developing modern infrastructure.
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A seamless integration of a diversified product portfolio, business processes, and networked services define Energy Automation (EA). One of the power centres in the Siemens portfolio, EA forms the nucleus of Siemens One solutions. From bay level to automation system, from primary technology to service, and from individual product to turnkey solution, EA opens up a world of options with its offerings. Energy Automation Products (Protection + Automation) Sub-station Automation & Communication System
SOL PRO SYS
Protection Relays
Overcurrent-Time Relay. Earth Fault Detection Relay. Distance Relay. Differential Protection Relay.
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Energy Automation (EA) offers solutions for Power system Protection, Automation, Monitoring & conditioning of power quality in Power Transmission & Distribution market.
EA is one of the leading market players in this segment. The EA market is classified in three tiers with High end requirements in Transmission segment- Utility Customers, Mid end requirements in Sub Transmission Utility & Industry Customers and Low end requirements in Distribution Utility & Industry Customers.
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Chapter: 2:
Operation / Workflow of EA-Products. 2.1) ED-EA PRO Process Workflow:
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approached by the companys representative (sales) in their respect regions (South, North, East, and West). And during the interaction process with the customer, sales representative tries to identify the customers requirement on the basis of which they provide an offer for the requirement.
As soon as the quotations are transferred, companys representative start doing follow-
up with the customer and determines the status and on the basis of which further process or revised-quotations are sent and try to satisfy the customers need in respect of product, quality, quantity, and pricing.
If company receives the order then it is forwarded to execution department. Otherwise,
an analysis is done on the follow-up and the entire conversation with the customer and company tries to find out the problem where they went wrong. As a result of the analysis occurrence of similar problem is avoided in future.
department. Where execution department first verify the order and after the verification further process is carried out.
After verification, execution representative send the requirement to the production
unit. And production unit look for the availability of materials required for completing the order in their inventory and if any part is missing it refers back to execution department for ensuring the availability of the parts. Then execution department order
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those parts in manufacturing and ensures the availability of the parts in a particular time span to the production unit.
As soon as the product gets ready, then the product is made to pass through different
sets of tests at different location. The test series are as: Pre-FAT Test FAT Test Pre-SAT Test SAT Test
Pre-FAT and FAT (Factory Acceptance Test) are done in the factory, where reliability of the product is tested and is verified that the product is meeting the requirement and specification provided to them as per the customers requirement or not. When these tests are passed by the product then the product is sent to their customer. But, at the customer site as well it is tested in actual loading condition which is termed as PreSAT and SAT (Site Acceptance Test) Test.
As soon as the product passes these test series, the product is handed over to the end
customer.
follow laid guidelines provided by Siemens Ltd. through which they identify that in which possible best way they can help out their customers such that maximum satisfaction can be provided to their customers.
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Chapter: 3:
VAR (Value Added Resellers) and Distributor Partners Business Model 3.1) Siemens Distribution Scenario:
Previously, before the introduction of VAR Siemens Ltd. product and service distribution was directly to their end customers.
Figure 3.1: Past Scenario of Siemens Ltd. As per the market requirement, a new strategy was introduced EPC contractors Turnkey Project Solution. In which end customers are connected through these EPC contractors with Siemens Ltd. The result of this strategy was appreciated in the field of Transmission Segment (>132KVA) and Generation Segment. However, Sub-Transmission Segment (<66KVA, >132KVA), and Distribution segment was not affected as such. So to address this market requirement, new strategy of distribution was adopted for developing channel partners called as VAR (Value Added Resellers) and Distributor Partners.
Figure 3.2: Present Scenario of Siemens Ltd in Distribution and Sub-Station Automation.
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3.2
It is to supply products, to the external partner who will perform following activities as shown in Figure 3.3:
Identification of Business prospect and order acquisition by VAR Siemens supplies Product(s) with technical support The Value Added Reseller (VAR) purchases goods, supplies them with (for system) or without (for product) an additional value and finally resells them to the end customer.
Sales & Engineering for system is done by VAR Partner Overall project implementation responsibility rests with VAR Siemens trains, certifies and supports the Product/system handling
SIEMENS Sieme ns
Integrated Automation Systems for New Markets like Industrial Automation, Pipeline Automation
Figure 3.3: VAR Model for Distribution Segment
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Sal
Execution
Order.
Sales:
Order Acquisition. Order Transfer to Sales. Order Acknowledgement to VAR. Delivery Extension. Internal Factory Process.
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Commercial:
Verifying and checking documentation requirements as per Siemens standard
guidelines.
Order Booking in SAP. Other processes as per Siemens guidelines.
Order Execution:
Check Delivery requirement matching in purchase order and order booking sheet.
Performa Invoice/ Dispatch Instructions & Road permit request to E-SL. Delivery Confirmation to VAR/ Distributors Performa Invoice/ Dispatch Instructions to Logistics, Kalwa with Relay Reference Number.
Check Delivery date, Relay Reference Number, Product Information Code, MRP,
Product Information Code price with Purchase Order and Costing Sheet.
Logistics:
Execution.
packing.
Invoicing.
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Chapter: 4:
Developing Pricing Tool for VAR (Value Added Resellers) and Distributor Partners 4.1) Problem Identification
To compete with their competitor company used to renew their system by implementing new strategies on time to time basis. Now the need of the hour is calling to integrate a system/tool through which speed of workflow will increase which can result in the increase in the operational efficiency and effectiveness of Siemens. Now an opportunity is find where a tool can be developed through which order acquisition and order processing can become faster.
Standardisation of Product Prices among the channel partners Generation of the Relay Reference Number and Maximum Retail Price of the product.
Relay Reference Number, and Maximum Retail Price can be done simultaneously. This can be provided to all VAR channel partners and also to internal Sales team.
4.7) Steps involved in Developing Tool 4.7.1) Developing a Tool to achieve the Maximum Retail Price of the product.
Identify the product type. Identify the different variants available for that product. Identify the transfer factor for the product given from Germany. Looking for the legal obligations as Tax and all which are to be paid to the government. Example: Excise duty, VAT etc.
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Creating the Excel sheet with the basic prices of different variants and options which are taken from the Siprotec Price Guide and Reyrolle Price Guide.
Final MRP of the product is obtained as per the laid guidelines of the organization.
4.7.2) Developing the Tool to generate the Product Information Code , RRN number and Maximum Retail Price simultaneously
Prepare a preliminary sheet with the guidelines how to use the tool. Insert macros on the preliminary sheet for different sheet selection which include
Product Selection, Price Scheduling, and Product Selection Guide which makes tool user friendly.
Create the main product sheets for each product by forming list of the options and
variants which can be selected as per the requirement or the specification of the customer. This will generate the Product Information Code and RRN number for the product.
Attach the respective MRP generating sheet with there respective PRODUCT
Maximum Retail Price, Product Information Code and RRN number together in simplified manure. This sheet contain all the product type available which are interlinked to their respective product.
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From Sheet 1 f the tool, click the button on which Product Selection and Costing is written. This will open sheet number 2.
Step 2: On sheet-2 there are number of buttons each button will lead u toward different type of protection device as 1st button-> Overcurrent protection relay, 4th button-> motor protection device. From here select the type of device which customer wants. This will open the sheet for that device. Lets say u have selected Argus M 7SP22 Directional Relay then the sheet will open as shown in figure 4.3
L is t P ric e
P ric e S c h e d u le P ric e
P r o d u c t S e le c tio n G u id e o c S e le tio n u
1364 49M L F B
80 0
5 7SR2 2
6 7 0 3 | | | |
8 9 1 0 11 12 - 13 14 15 16 2 B A 1 1 - 0 D A 0
0 01 A 0 9 - A Y A Z
| | | | | | | | | | | | | | | | | | | | | | | |
P ro tectio n Pro du c t 10 0 O v ercurrent - D irec tio nal 0 C a se I/O an d F ac ia 12109 2 8 C as e, 5 C T , 4 V T , 13 B inary In put / 14 B inary O u tputs , 16 L E D s E 10
0
M easuring Inp ut 0 1/ 5 A , 63.5/1 10V , 50/60 H z A uxillia ry V o lta ge 10 0 30 to 22 0V D C , B inary In put T h re sho ld 8 8V D C 0 C o m m un ica tio n Interfa ce 10 0 S tanda rd V ers io n - Inc lud ed in all m odels , U S B front port, R S 485 re ar port 0 P ro to c o l 10 0 IE C 608 70-5-103 and M odbu s R T U (use r se lec table S ettin gs ) 0 P ro tectio n F u nctio n Pack age 10 1 5357 .2 tanda ld V ers ion - P lus 79 - A u torec los er S 0 A dd itio na l F un ctio nality 10 0 N o A dd itio nal F unc tion ality
10 0 0
| |
| | | |
| | | | | |
| | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | |
Figure 4.3 Sample sheet of the PRODUCT INFORMATION CODE, RRN no. generation Tool The portion in gray colour are a form of list when someone click on that several option will come, select the type and the additional function as per customer requirement. Then the sheet looks like figure 4.4.
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L is t P ric e
P r o d u c t S e le c tio n G u id e c le n u
5 7SR 2 2 | |
6 7 0 3 | | | |
8 9 1 0 11 12 - 13 14 15 16 2 B A 1 1 - 0 D A 0
0 01 A 0 9 - A Y A Z
| | | | | | | | | | | | | | | | | | | | | | | |
P ro tectio n Pro duc t 10 0 O vercurrent - D irec tio nal 0 C a s e I/O and F ac ia 12109 E 8 C as e, 5 C T , 4 V T , 13 B inary In put / 14 B inary O u tputs , 16 L E D s 2 10
0
M easuring Inp ut 0 1/5 A , 63.5/1 10V , 50/60 H z A uxillia ry V o lta ge 10 0 30 to 22 0V D C , B inary In put T h re sho ld 8 8V D C C o m m un ic a tio n In terfa ce 0 10 0 S tanda rd V ers io n - Inc lud ed in all m odels , U S B front port, R S 485 re ar port P ro to co l 0 10 0 IE C 608 70-5-103 and M odbu s R T U (use r se lec table S ettin gs ) P ro tectio n F unctio n Pac k age 0 1 5357 .2 tanda ld V ers ion - P lus 79 - A u torec los er S 10 A dditio na l F u nc tio nality 0 10 0 N o A dd itio nal F unc tion ality
10 0 0
| |
| | | |
| | | | | |
| | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | |
Area covered by blue dotted line will give the relay reference number. This is used for the ordering and execution of that relay.
1000
1000
1000
100 100
A1M2203-O- 001A09-AYAZ
Next figure shows how different options are selected and the place shown by dotted red colour will give the maximum retail price of the product.
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List Price
Argus M 7SR22 (Directional O/C Relay) Price Schedule Product Selection Guide
Total MRP
PRODUCT INFORMATION CODE 1500
Protection Product | Overcurrent - Directional 0 | Case I/O and Facia 1000 E8 Case, 5 CT , 4 VT, 13 Binary Input / 14 Binary Outputs, 16 LEDs
001 09 - A Y AZ A
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Measuring Input | | 0 | | 1/5 A, 63.5/110V, 50/60 Hz Auxilliary Voltage | 0 | 30 to 220V DC, Binary Input Threshold 88V DC Communication Interface 0 Standard Version - Included in all models, USB front port, RS 485 rear port Protocol IEC 60870-5-103 and Modbus RTU (user selectable Settings) 0 Protection Function Package 500 Standald Version - Plus79 - Autorecloser Additional Functionality No Additional Functionality 0
Option as per MRP
1000
1000 1000
500 500
Step 3rd:
Now select the Price Schedule button then another sheet will open which will show all three things i.e. MRP, Product Information Code , and RRN Number.
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2nd Sheet
100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
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70
10
10
10 10 10 10 10
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The tool is made user friendly so, its very easy to operate and will help the VAR partners to get the product prices instantly. Increase in Accuracy: In general, the chances of error increase with the increase in the number of steps in the chain of operation.
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Recommendations
to customers These tools to be standardized for sales and for VAR business.
Process performance to be monitored to measure the results and further improvements.
References
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Supply chain Management Guide as per Siemens Policies. Customer Relationship Guide as per Siemens Policies. VAR Model Guide Guidelines of weights and measures for Industrial Products- Government of INDIA.
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