GAP ANALYSIS REPORT for KEYA GROUP

MM & WM Module

KEYA GROUP Confidential

Material Management:
The grouping of management functions supporting the complete cycle of material flow, from the purchase and internal control of production materials to the planning and control of work in process to the warehousing, shipping, and distribution of the finished product. Here are the some key mandatory gaps between our proposed ERP system and current Matrix system very few to mentioned. Master Planning Functionality Available in Proposed ERP System
In the proposed system, it would be possible to carry out a forecast for a single material only/ several materials at once/ selected materials and using this forecasted result in Sales & Operations Planning (SOP). Forecasted results can be possible to use in Demand Management and during the requirements planning. This monthly requirement can be possible to divide into either daily or weekly requirements Sales and Operati ons Plannin g (SOP) In the proposed system it would be possible to create SOP in product level, material level & able to create different planning versions.

GAP in Matrix
It is not possible forecasting materials in current system similar manner. Current system doesnt offer this kind of planning options. This kind of master planning is not possible in matrix system. There is no such aggregated SOP in the matrix system.

Comment
Yearly forecasting might be given in the system manually in some concerns. Require function for demand planning. Needed for operational activity. Mandatory requirement for production planning Only possible to create 4-6 months demand planning for Knit Composite.

Forecas t Processi ng

Demand Manage ment

It should be possible to create a demand program by copying the material forecast, the results of SOP, original plan, and planned independent requirements (PIR) of another material. In the proposed system. It is also possible to create customer requirements for demand planning. It should be possible to carry out MRP Planning at plant or at MRP area level. It should be possible to carry out a planning run for a single material or product group. Most of the MRP features like procurement quantities calculation, different types of procurement proposals, BOM explode, scheduling order to calculate the start & finish dates for the procurement proposal, plan individual storage locations separately, and different company code level MRP run. In the proposed system, it should be possible to create Planned Orders automatically and manually by carrying out an MRP run.

There is no such integrated demand planning in the existing system.

Not possible in current matrix system. In the current system MRP is not total functioning with SOP & demand planning. Its not possible in Matrix. This kind of advanced MRP based master planning not possible in Matrix system. Only in Cosmetics covering part of MRP.

Material Requirement Planning (MRP)

In the proposed system planned order via MRP run is not possible. Not possible in the current system. Existing system this feature is not available.

Planned Order Processi ng

It should be possible to check the availability of components according to both ATP Logic and or existing PIRs. In our proposed system it will be possible to convert a Planned Order into a Purchase Requisition and / or into a Process Order.

Manual planned order is adopted somewhat in the current practices. Mandatory requirement

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KEYA GROUP Confidential

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KEYA GROUP Confidential

Purchasing & Inventory Functional Available in Proposed ERP System ity

The vendor numbers should be assigned automatically by the ERP system. It should be possible to store data in the vendor master record with reference to certain specific organizational levels (company code and purchasing organization) within the enterprise. In addition to the data applicable to a specific purchasing organization, it should be possible to maintain purchasing data or partner roles for a certain plant or vendor sub-range (terms of payment or Inco terms) that differ from that at the purchasing organization level. The system has the ability to store multiple vendor names for the same material / group The system has the ability to share a single vendor data attributes within purchasing system The system has the ability to check that a vendor is not on the blacklist The system has the ability to register online for vendors using standard form Maintain Vendor Master The system has the ability to automatically inform vendors via email when there are changes to registration status The system has the ability to attached legal document of vendor such as: Trade License, VAT registration, etc. The system has the ability to put additional information on Vendor master, such as: Payment method (e.g. GIRO, L/C) Multiple Vendor Payment bank, including address, account number, currency Cheque detail including: cheque number, date of issue, date of maturity Preferred payment bank account and currency The system has the ability to restrict authorization for creating vendor based on type of products/services: - Parts vendor - Consulting Services vendor - Construction vendor - Network vendor, - IT vendor, etc. The system has the facility to prevent payment processing for vendor with hold payment status In our proposed system has ability to integrate purchase orders (contracts) with vendors report cards/ performance The system has the ability to monitor/ track vendor performance based on user defined criteria (i.e. on time delivery, price competitiveness, quality etc.) Proposed system has the ability to show vendor performance evaluation on management dashboard (comparison of one vendor performance against others)

GAP in Matrix
In Matrix system manual alphabetical numbering possible only. This is not possible in the Matrix system.

Commen t
Must have requirement. Required for various reporting purposes.

Not possible in the existing system.

Not possible in the existing system. Not possible in the existing system. Not possible in the existing system. Not possible in the existing system. Would not be possible in the Matrix. Current Matrix system doesnt accommodate such features. In the Matrix ERP some of this function is

Must needed requirement Required for risk minimization Nice to have for collaboration purpose

Mandatory requirement

No such authorization restriction in the existing Matrix system.

Nice to have requirement for reporting clarity

No such option in the Matrix ERP. Current system doesnt accommodate such feature. Not possible in the existing system. Do not have such advanced feature in the Matrix.

Must have requirement for risk controlling

Must have requirement It will help to make decision easier

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KEYA GROUP Confidential

If a purchase requisition should be created automatically by a MRP-run, order quantity and delivery date need to be determined automatically based on the data in the material master. The system has the ability to verifies funding availability from the department's budget, and alert if requisition exceed budget In our proposed system has the ability to restrict purchases from the approved/qualified suppliers only The system has the ability to do repeated requisition by copying previous requisition documents Proposed system has the ability to handle multiple currencies in a single purchase requisition The system has the ability to attach text descriptions, images and drawings to purchase requisition In our proposed system has the ability to create one purchase requisition consisting of goods/parts and services The system has the ability to define and maintain requisition of services (which does not require a 'receiving' process) Proposed system has the ability to automatically close requisition after a certain period In our proposed has the ability to support an electronic multi-level requisition approval process Maintain Purchase Request Approval In the current Matrix system it is not possible at that moment. Not possible in the current system. Existing system doesnt offer such control mechanism. Not possible at that moment. Matrix ERP doesnt fulfill such requirements. Not possible in the present situation. Only covers the goods or products part not the service part yet. Not accommodate in the existing system. Not possible in the existing Matrix ERP. In the current system approval process is not present. Not possible in the Matrix ERP Currently not possible Its not possible into existing system Existing system doesnt offer any features regarding RFQ and/or contracts. Currently not Possible Nice to have Required for flexibility Will improve the efficiency CMD sirs requirement Needed for controlling purpose Will improve the efficiency Will improve visibility & clarity Mandatory requirement s for all PR

Maintain Purchase Request

Will improve the efficiency Must have requirement for controlling & visibility

The system has the ability to define different multi level PR Approval path/ strategy based on PR amount The system has the ability to make a revision in purchase requisition (other than value) so that no PR approval is required The system has the ability to easily change the approval process in the system if the Keya Group policy changes It should be possible to create a RFQ either manually or by referencing to an already existing RFQ, requisition, or outline purchase agreement. There should be an internal number assignment for RFQs and also possible to create a rejection letter. The prices and conditions set out in the quotation submitted by the vendor should be adopted into the RFQ document. A comparative appraisal of several vendor quotations by means of the price comparison list should be carried out by the system. The individual quotations should be compared item by item. The mean value quotation should represent the average value of the individual quotes. The most favorable quotation should be saved in an info record and ERP will send rejection letters to unsuccessful bidders. The system has the ability to notify when a bid/quotation is about to expire The system has the ability to record both initial and final price quoted The system has the ability to combine the purchase requisition into one tender document/RFQ (Request for Quotation)

Doesnt have in the current system Not Possible in the Matrix

Maintain RFQ and Quotation

Required for controlling purposes

Doesnt have in the current system Currently not Possible Its not possible into existing system Not Possible in Matrix

Nice to have

Required for reporting purpose

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KEYA GROUP Confidential

It should be possible to create a contract either manually or by referring to a former document (purchase requisition, RFQ/Quotation, other contract) and there should be an internal number assignment for contracts. The system has the ability to attach contract criteria that is related to Purchase Order Contract related part are not accommodate in the existing system. Not possible due to current system doesnt accommodate contract part. Not possible in the current system but Matrix can generate an automatic (internal) reference number for PO Not possible due to missing of contract in the Matrix ERP. Current system doesnt cover this feature. Not possible in the present system. Doesnt exist in the Matrix system. Not possible in the current system. Only able to cover the goods/products part. Doesnt cover by Matrix ERP. Current system doesnt cover this part. Current system covers this part. Current system partially covers this part. Not possible in the existing system. Not possible in the Matrix ERP system. Matrix doesnt cover this part. Not possible in the current system. Matrix doesnt cover this part currently. Not possible in the Matrix. Currently not available. Currently not available. Must have requirement Required Required for flexibility Nice to have Requirement for controlling purposes Must Required Mandatory requirement

Maintain Contract

Purchase Orders conditions should apply at various levels: To the entire purchase order At item level, to the material to be supplied or to the set of service specifications in the case of services In our proposed system has the ability to provide contract number reference for every PO created The system has the ability to capture different type of purchasing based on limit value (cash purchase, direct order, limited bid, open bid) Proposed system has the ability to do repeated purchasing (from the previous vendor) and copy previous contract terms and conditions The system has the ability to handle multiple currencies in a single purchase order Proposed system has the ability to attach text descriptions, pictures and drawings to purchase orders In the proposed system has the ability to create one purchase order consisting of goods/parts and services The system has the ability to define and maintain purchase of services (which does not require a 'receiving' process) The system has the ability to block the capability to create Purchase Order without any reference to any approved Requisition Proposed system has the ability to list outstanding PR for a specific purchaser/buyer, so that purchaser know that they need to follow up The system has the ability to convert requisitions to a purchase order automatically when requisition is approved In the proposed system has the ability to type/ enter reasons due to purchase order rejection/ cancellation The system has the ability to support multiple schedule delivery for each item in PO (one item has multiple schedule delivery) The system has the ability to support PO with multi currency In the proposed system has the capability to close PO automatically if related PO has already expired (user can specify their own expiration date for the PO) The system has the ability to support an electronic multi-level purchase order approval process Proposed system has the ability to define different multi level PO Approval path based on PO amount If batch management is activated in the material master and the user does not enter a batch number, the system should assign an internal batch number. If a minimum remaining shelf life is maintained in the material master, the system should ask for an

Required for flexibility

Mandatory requirement for controlling

Maintain Purchase Order (PO)

Mandatory requirement

Maintain Purchase Order Approval Manage Goods Receipt

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KEYA GROUP Confidential

expiration date when the goods receipt for a new batch is posted. When posting goods receipt an accounting document should be created automatically by the system. When entering a goods movement, the system should automatically create output documents (goods receipt slips). The user should have the possibility to define through an indicator that no output document is created. The system has the ability to support GR more than quantity in PO (over delivery) for certain user defined tolerance The system has the ability to reverse goods receipt for materials which do not match to agreed quality It should be possible, to create a vendor return with reference to a purchase order or with reference to a material document. If the user does not know the storage location or batch number when creating a vendor return with reference to the purchase order, it should be possible to show a batch selection list based on the batch selection. By creating the return delivery, the system should refer to the purchase order and check that the returned quantity does not exceed the delivered quantity. When posting the return delivery, the system should refer to the purchase order and reverse other updates that occurred by posting the goods receipt from purchase order (e.g. goods receipt into consumption). The system has the ability to receive the services delivered by supplier as a progress acceptance (e.g. percentage)and produce the acceptance document when services are accepted It should be possible, to set a payment block manually for invoice management. Proposed system should set a payment block, if the quality inspection process still is in progress or if there are variances between the invoice and purchase order outside the tolerance limits. When processing an invoice, the ERP System should check each item for variances between the invoice and the purchase order or goods receipt. The different types of variances are defined in tolerance keys. In our proposed system should automatically determine the accounts to be posted and the amounts for posting. The system has the ability to accommodate level of authorization to approve unmatched invoice Proposed system has the Invoice Aging Report (incl. Remarks field) and has the Matching Detail Report (incl. Matched & unmatched data) The system has the ability to group items by several characteristics, including (but not limited to): - Material number - Material type - Other user-defined parameter The system has the ability to analyze & categorize products into several categories based on specific parameters (e.g. fast moving, moderate, slow moving, etc) Example: ABC analysis In the proposed system has the ability to accommodate split valuation; System must be able Not happening currently. Need manual interference to create this document. Not possible in Matrix ERP system. Must have requirement

Not possible in the existing system. Its not possible in the matrix system. In Matrix its not possible currently. Currently its not possible in Matrix.

Mandatory requirement Must have requirement

Nice to have

Not possible in the existing system. Currently its not possible in the Matrix system.

Must have requirement

Manage Service Acceptance

Matrix doesnt cover any service acceptance part. Not possible in the current system Existing system doesnt cover the part. Not possible in the existing system.

We need to capture all the transaction. Required for controlling purpose Mandatory requirement

Maintain Invoice Matching

Its not possible in the existing system. Matrix doesnt cover this. Not exist in the current system. Not possible to use several characteristics Must have requirement Required for reporting purposes

Manage item/material master

Matrix ERP doesnt provide such flexibility

Required for reporting purposes

In the current system its not existing

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KEYA GROUP Confidential

to allow for a material to be carried at multiple values The system has the ability to support bar coding technology for real-time material/item tracking purposes The proposed system has the ability to provide complex material classification, such as product hierarchy Product hierarchy must be able to support the multiple levels of logical relationships of separate material attributes. Grouping by product hierarchy is useful for sales/commercial team to understand the nature of sales by different product groupings The system has the ability to keep material number pictures in material number master data In our proposed system has the ability to maintain different costs for different geographical locations The system has the ability to maintain electronic voucher stock within ERP (either amount or Qty) Proposed system provides material/item search functions by: - Material/item number - Material description - Material/item type - Etc The system has the ability to user barcode for put away and picking activities The system has the ability to communicate (interfacing) GI/delivery data with external application (weighing scale, card inventory application) System must be able to automatically perform GI once it received the GI data from card inventory application. The required GI data includes material number, quantity, unit of measurement, etc In our proposed system has the ability to perform cross-docking activities & to accommodate transportation cost calculation in goods transfer process The system has the ability to perform reservations as a mean to plan or request goods movement & to provide reservation to reserve consumable items. Proposed system must be able to print barcode label for warehouse operation purposes and able to monitor own stock that are currently located in customer side The system has the ability to accommodate quality and quantity checking process The goods movements caused from a stock difference should be seen in the lot traceability. In our proposed system has the ability to utilize product categorization as a parameter to set up cycle count's frequency The system has the ability to print count tag sheet needed for physical inventory process The system has the ability to define expiration date based on receiving date/shipping date The system has the ability to provide information required to write off outdated parts based on inspection team report The system has the ability to track the status of the materials proposed to be written-off and also have to perform stock write-off for obsolete materials

Matrix does not have such features Not possible in the current system.

Search function

Matrix doesnt offer this kind of advanced features Existing system doesnt support this feature Not possible in the current Matrix system Does not have several search functions only can search by name.

Nice to have

Required for reporting

Issuing goods capabilities

Not possible in the existing system In the current system its not possible due to absence of external device

Mandatory requirement

Transferring goods capabilities Stock Reservations capabilities

Not possible in the existing system Matrix doesnt have such feature Existing system not provide this feature Only quantity inspection possible. Not possible in Matrix ERP Existing system doesnt have such feature. Not existed in Matrix. Current system doesnt have such feature Not possible in the current system. Matrix doesnt have such features.

Required for efficiency Required

Quality Inspection Physical Inventory Perform cycle count Inventory expiration Inventory adjustments

Mandatory Requirement

Required for reporting purpose

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KEYA GROUP Confidential

The system has the ability to perform standard MRP functions, such as: - Re-order point - Consumption based planning (CBP) - Etc The system has the ability to maintain safety stock based on quantity and/or time The system has the ability to generate PR automatically based on planning results The system has the ability to determine expected delivery date based on material number lead time Lead time information is stored in material master data The system has the ability to allocate via fixed or variable rates/costs on a project by project basis (e.g. identification of where to charge costs to for a project) The system has the ability to support multiple costing methods: - Standard costing - Moving average costing - Etc If, in the source determination process, several vendors are then found, one of which is flagged as the regular vendor, this vendor should be suggested. The system should determine the source of supply of a requested material in the following order: Quota Arrangement Outline agreement Source list Info Record The unique number of the subcontracting order should be assigned internally and it should be possible, to provide the vendor with components by inventory management as well as by shipping. The following transfer postings should be available: Currently maintaining only at Keya Cosmetics ltd. Mandatory requirement for planning purpose Mandatory Nice to have Nice to have

Inventory planning

Existing system doesnt have this function Matrix doesnt cover this feature Not possible in the existing system.

Matrix doesnt provide such flexibility. Currently operating under only one single method. Required for flexibility in the costing Nice to have

Inventory costing

In Matrix is not possible to perform any source determination activities Not possible in the existing system

Table of Contents

Mandatory for sourcing requirement

Table of Contents

Matrix doesnt cover any sub-contracting features.

Required for flexibility In the operation Mandatory requirement

Transfer Posting

Quality inspection stock to unrestricted-use stock Unrestricted-use stock to quality inspection stock Quality inspection stock to blocked stock Blocked stock to quality inspection stock Unrestricted-use stock to blocked stock Blocked stock to un-restricted use stock Posting from material to material Posting from batch to batch

Matrix doesnt offer those transfer posting options in their ERP system.

Table of Contents

In case of stock transfer from plant to plant the goods receipt should be posted into the quality inspection stock. An inspection lot should be created for the transferred goods. It should be possible to create a BOM for the following range of use: Subcontracting

Currently not maintaining by Matrix

Matrix doesnt cover any feature related on subcontracting Not possible in the existing Matrix system.

Nice to have

Maintenance of Bill Of Materials

The initial creation as well as every change should be seen in a change history with the following data: Date of the change User who carried out the change The content of the field before the change The content of the field after the change Every change of a batch master should be recorded in a change document. The following information should be available in the change history: Name of the user who executed the change Date and time of the change

Mandatory for risk minimization & controlling purposes Required for reporting & controlling purposes.

Maintenance of Batch Masters

Existing system doesnt provide this feature

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Content of the field before the change Content of the field after the change Currently not available

For the manual administration of batches the following functions should be available: Creation of a batch master Change of a batch master Display of a batch master The batch number should be assigned in this way: internally, if no batch number is entered externally, if a batch number is entered manually The system has the ability to have & display several stock status (available, not available, damaged, etc) The system has the ability to provide report(s) on inventory aging analysis & to generate reports on inventory turnover (ITO). The system has the ability to generate statistical report on quality inspection results & to record and report on special stock which is in vendor site (future business requirement) System should be able to categories the type of Vendors (Material Vendor / Service Vendor / Maintenance Vendor / Sub-Contractor) System should be able to set different statuses for each Vendor (Approved / Preferred / Blocked / Obsolete) System should allow workflow approval for Vendor creation. User should be able to enter details of a new Vendor within the System, but a new record within the Vendor Master can only be created after Approval. System should have Vendor Evaluation Form for annual Vendor review. Users should be able to enter the results of an annual Vendor review, and access it as part of the Vendors History for future evaluations. System should be able to auto-populate data into the Vendor Evaluation Form. System should allow user to create PR to request for Quotation and update the price into the PR once the quotations have been received. Purchasing will follow up and obtain the quotations from vendors.

Manual feeding not possible Not available currently in Matrix Existing system does not provide such report Not possible in the current system Matrix doesnt have such reporting Currently not possible Existing system doesnt have such advance feature Not possible in the current system Matrix doesnt have this reporting Existing system does not provide such report Currently not possible Not possible in the Matrix system. Not existed in the current system.

Required for flexibility Must Required Mandatory requirement

Capable to provide inventory related reports

Required for Reporting & controlling Required for reporting purpose Nice to have Mandatory requirement for controlling Required for reporting purposes

Mandatory requirement Required for efficiency Required

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KEYA GROUP Confidential

Warehouse Management (WM):

With warehouse management, you can optimize warehouse activities including inbound and outbound processing, facility management and storage, physical inventory, and planned and opportunistic cross docking. You can take advantage of data collection technologies such as radio frequency identification (RFID) and voice and new workload balancing tools. Though Keya Group doesnt implement Warehouse Management module in Matrix ERP they cover part of the functionality by Inventory Management. So it is very unrealistic to compare to different module functionality. But my attempt is here to provide the features of the warehouse management module rather finding gaps of Matrix system. Functionalit y Available in Proposed ERP System
Following storage types are required: High Rack Storage Shelf Storage Fixed bin storage Hazardous materials warehouse Pallet storage GR area GI area Returns Shipping area Stock transfers Quarantine Area It is possible to block / unblock storage bins for put away or removal & define a picking strategy for each storage type. In our proposed system, it should be possible to store storage type specific material data. It should be possible to create records for each individual storage bin that identifies the warehouse number and the storage type in which it is located. Table of Contents In our proposed system it should be possible, to indicate a material master as dangerous based on the Corporate HSE Guidance. Processing a goods receipt in IM that is posted to a WM-managed storage location, the quantity is automatically posted to an interim storage area. Additional system should create a transfer requirement for the following types of stock movement: Goods receipt Goods receipts from MM, which affects the warehouse, should create a transfer requirement or a posting change. System should provide suitable storage bins according to the put away strategy and the properties of the material / batch.

GAP in Matrix
As mentioned above, matrix doesnt have such advanced features of WM

Comment
We need these advanced features to maximum utilization of Keya resources and reducing the cost of the inventory holding.

Tabl e of Cont ents

Not possible in the Matrix

Required for controlling & reporting purposes Mandatory requirement Mandatory for material movement.

Existing system doesnt have such method. Current system doesnt have such features.

In Matrix the material master classification does not cover such features. Current system doesnt have such features. Required for controlling purposes & minimizing risk.

Tabl e of Cont ents Tabl e of Cont ents

Put away process and its feature doesnt exist in the Matrix system. Doesnt have such feature in the existing ERP system.

Its a mandatory process in WM. Will improve efficiency of daily activities

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If material is classified as hazardous good, system must check the compatibility of material and storage area. For goods issue postings system should be able to search for suitable stocks / storage bins according to the picking strategy. Tabl e of Cont ents For goods issue postings it should be possible to enter the quantity to be picked (per storage bin) manually or system should calculate it automatically as proposal. The transferred quantity of material out of the warehouse should not be available for use if confirmation is still pending. If material is classified as hazardous good, system must check the compatibility of material and storage area during an internal stock transfer. Tabl e of Cont ents For goods issue postings system should be able to search for suitable stocks / storage bins according to the picking strategy. For goods issue postings it should be possible to enter the quantity to be picked (per storage bin) manually or system should calculate it automatically as proposal. Table of Contents The goods movements caused from a stock difference should be seen in the lot traceability. In our proposed system, it should be possible to interfaces with Weighing scale, Radio Frequency devices, label printers, material handling devices, Automated Storage and Retrieval Systems and External Warehouse Execution Systems. Not existing in the current system. Required for Health & Safety (HSE) issue

There is no such removal process in according to picking strategy in the Matrix ERP. Existing system doesnt provide such flexibility in the operation.

Will improve efficiency in the day-2-day operation.

This feature is not available in the current system.

Matrix doesnt offer such kind of checking capability for interim transfer. Existing system doesnt provide such flexibility in the operation. Not available in the current system.

Required for Safety issue.

Will improve efficiency in the day-2-day operation.

Currently not possible in the Matrix system. In the existing system there are no such external devices for interfacing with Inventory Management module.

Required for reporting purposes. Mandatory requirement for warehouse management smooth functioning.

Tabl e of Cont ents

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