Transcript Document 7218106

Global Rollout Planning and iProcurement
Implementation at Qualcomm
Introduction: Agenda

Key Concepts

Overview of Global Rollout Planning

2 Oracle Instances

The QCT instance

The Quantum instance

Why 2 instances?

Separation of Production and Non-Prod Procurement

2007 Implementation Sites
1
Key Concepts

“Design globally; roll out locally”

Clearly state design bias and document assumptions

Understand business requirements at a high level

Involve the business early in the planning process

Implement in those intern’l sites where the need justifies the effort

Build upon prior phases, implementing required functionality as needed
2
2 Oracle instances: The QCT Instance

QCT instance has two application servers: 11.5.8 and 11.5.9 (lot controlled)

Quantum instance is an Oracle 11.5.10 instance, with min. customizations

Each organization “owns” its own inventory; common inventory items

QSCO (manufacturing) has no P&L, and will liquidate costs to other BU’s
QCT Instance
FAB Suppliers
Qualcomm
3
4B2 message from
SAT
3B2_C-O message to
SAT
3B2_C-I message
from FAB
PO for
DIE items
SAT Organizations
Service PO for
FG items
2 Oracle instances: The Quantum Instance
“01” Legal
Entity
Other legal entities
QSCO Production
Procurement
Corp Non-Prod
Procurement
4
Qualcomm Inventory Orgs Structure
Inventory Org Structure for US Entities
Last Updated: 12/12/2006
7:32 PM
QC US BUSINESS GROUP
QC US SET OF BOOKS
Snaptrack
Legal Entity
- Division 33 -
QUALCOMM
Legal Entity
- Division 01 PO: 100000000
PO: 200000000
QSCO OU
001-049
QSCO SD1
001
BLDG M
RCPT: 4000001
INVENTORY
N R
QWBS SAN DIEGO
050
BLDG M
RCPT: 1000001
INVENTORY
N R
STAGE
MRB
MRB
OFFSITE
RTS
WFR
OFFSITE
WIP
NL N
DROPSHIP
SOI
NL N
CUSTEVAL
SOI MRB
NL
HOLDS
R
REPAIR COS
ERROR
GSTAR DEV
FGSTOCK
N
STAGE
INACTIVE
NL N R
N R
QSCO MEX
BLDG MX M
002
RCPT: 1000001
INVENTORY
N R
MRB
OFFSITE
WFR
NL N
SOI MRB
NL N
NL
STAGE
NL N R
SOI
RTS
FGSTOCK
NL N R
R
N
RPR INV
NL
RPR STAGE
R
RPR IP
NL R
NL N
STAGE
NL N R
DEPOT INV
DEPOT WIP
NL N R
NL N
PROTO
NL N
NL
FGI-PSTK
NL R
N
N R
925-949
950-974
BU: 00257-QFT
QSERV
BLDG __
900
RCPT: 1000001
MUI
925
RCPT: 1000001
INVENTORY
N R
STAGE
R
WFR
RTS
WFR
191-199
RPR FG
R
RPR IP
RPR STAGE
NL R
RPR-INCMNG
WFR
R
RPR IP
NL R
WFR
STAGE
LEGEND
PO: 1XXXXXXXX
BLDG __
BU: 00001-CORP
NL
N
STAGE
SCCA5__Connect Wireless Solutions
R
RTS
SCGA1__Cetacea Sound of Atlanta
SCIL1__Illinois Auto Central Thermo King
SCIL2__Truck Centers, Inc.
SCIN1__Great Lakes Thermo King
R
SCIN2__Stoops Freightliner
SCFL1__Select Communications
SCKS1__Velociti, Inc. (Kansas City)
SCMI2__Wolverine Freightliner
SCOR1__Thermo King Northwest
SCMN1__Thermo King Sales & Service
SCPA1__Thermo King of Philadelphia
SCNC1__Carolina Engine
SCTN1__Cetecea Sound of Memphis
SCNE1__Thermo King Christensen
SCTX1__Thermo King of Dallas
SCOH1__P.J.'s - Fabricating, Inc.
SCUT1__Thermo King Intermountain
SCOK1__Central States Thermo King
SCVA1__Radio Communications of VA / MOBEX
001-049
= PO Sequence (9-10 digits:
100000001,
1100000001,
2100000001)
= Receipt Sequence (7 digits)
= Business Unit Number-Name
= Not Locator Controlled
= Nettable
= Reservable
= Default Backflush
Subinventory
= Inventory Org Codes
R
NL R
NL
= Item Validation Org
(Allows different buyer
per item per inv org)
= Item Master Org
(Houses all items
found within Oracle)
N R
5
NL N R
NL R
R
WFR
STAGE
QGTC
BLDG __
981
RCPT: 1000001
QCT Asia Pacific
Legal Entity
- Division 31 PO: 6100000000
QCTAP OU
BU: 00014 - QCTAP
QCTAP
BLDG __
986
RCPT: 1000001
QWBSS
Legal Entity
- Division 11 -
QWBSS OU
875-899
BU: 00152 - QWBSS
QWBSS
875
BLDG __
NL
OFFSITE
RTS
QGTC OU
986-990
R
QMT SJC
979
RCPT: 1000001
INVENTORY
N R
MRB
QC Global Trading
Legal Entity
- Division 25 -
981-985
QMT TWN REPAIR
978
RCPT: 2000001
RPR FG
NL R
RPR IP
NL
RPR STAGE
BLDG __
BU: 00060 - QGTC
WFR
200-224
QCINT
910
PO: 4100000000
OFFSITE
OFFSITE
RCPT: 1000001
SCCA4__Sacramento Valley Ford Trucks
MRB
R
MRB
R
QTL OU
QTL
200
N R
QMT TWN
977
RCPT: 1000001
INVENTORY
N R
BU: 00013 - TECH
SCCA2__Velociti, Inc. (Barstow)
NL
RTS
R
R
STAGE
RPR STAGE
NL N R
RTS
QMT
975
RCPT: 1000001
INVENTORY
N R
RPR IP
CORP REPAIR
276
RCPT: 2000001
RPR FG
RPR STAGE
910-924
QMT REPAIR
976
RCPT: 2000001
RPR FG
R
RTS
QWI OU
QCINT OU
BU: 00283 - QCINT
NL N R
MRB
QCT REPAIR
226
BLDG M
RCPT: 2000001
N R
OFFSITE
OFFSITE
PO: 800000000
NL
QC International
Legal Entity
- Division 04 -
975-980
MRB
OFFSITE
RTS
QMT OU
BU: 00247-QMT
QFT
950
RCPT: 1000001
INVENTORY
N R
MRB
CORP
275
RCPT: 1000001
INVENTORY
N R
STAGE
OFFSITE
BU: 00010 - QSERV
QC MEMS
Legal Entity
- Division 74 PO: 5100000000
QFT OU
BU: 00099-MUI
900-909
BU: 00001 - CORP
00017 - INVC
00018 - QPROJ
00092 - MFT
00008 - QPAG
00016 - QCCU
00167 - QCDT
00195 - QCSEC
00204 - QGBD
00106 - QCWK
PO: 3100000000
MUI OU
QSERV OU
N R
SCCT1__Freightliner of Southern Connecticut
REPAIR NPI
SOI
RTS
HOLD
QWI
BLDG __
191
RCPT: 1000001
NL R
SERVICE CENTERS
055
RCPT: 5000001
NL N R
MRB
QGST
BLDG __
183
RCPT: 1000001
NL R
SCCO1__Thermo King of Denver
NL N R
R
STAGE
QGST OU
MRB
NL R
REPAIR COS
PO: 700000000
RPR PSTK
INVENTORY
STAGE
N
QWBS REPAIR N.CAROLINA
054
BLDG CAR A
RCPT: 4000001
RPR IP
RPR FG
QCT
BLDG W
225
RCPT: 1000001
INVENTORY
N R
BU: 00011 - QWI
RPR IP
RPR INV
NL
RPR FG
RPR STAGE
QAPP
BLDG __
175
RCPT: 1000001
183-190
QGOV REPAIR
126
BLDG M
RCPT: 2000001
R
BU: 00003 - QCT
00009 - QCTST
BU: 00166 - QGST
QWS MEX
102
OFFSITE
INACTIVE
DROPSHIP
RPR IP
MRB
DEBUG
WFR
RPR FG
QSCO QCT
006
BLDG W
RCPT: 6000001
INVENTORY
N R
WFR
WIP
RTS
OFFSITE
QWS REPAIR
101
BLDG AK
RCPT: 2000001
R
RTS
OFFSITE
RESERVED
NL R
N
NL N R
MRB
R
RTS
QWBS REPAIR MEXICO
053
BLDG MX M
RCPT: 3000001
RPR COMP
RPR STAGE
STAGE
MRB
R
QWBS REPAIR SAN DIEGO
052
BLDG M
RCPT: 2000001
RPR FG
R
RPR STAGE
QGOV
125
BLDG M
RCPT: 1000001
INVENTORY
N R
NL N R
STAGE
RPR IP
GSTAR RSVD
WIP
QWS
100
BLDG AK
RCPT: 1000001
INVENTORY
N R
275-299
225-249
175-182
BU: 00004 - QAPP
BU: 00005-QGOV
PO: 2100000000
PO: 1100000000
CORP OU
QCT OU
QAPP OU
125-149
BU: 00007-QWS
PO: 900000000
PO: 500000000
PO: 600000000
QGOV OU
100-124
BU: 00002-OMNI
ITEM MASTER
000
PO: 400000000
QWS OU
050-099
BU: 00300-QSCO
RTS
PO: 300000000
QWBS OU
QC Flarion
Legal Entity
- Division 77 -
MediaFLO USA
Legal Entity
- Division 82 -
NL N R
QMT Cayman Islands
Legal Entity
- Division 76 -
QMTCI OU
850-875
BU: 00250 - QMTCI
QMTCI
850
BLDG __
Why two instances?
The QCT instance is geared to Qualcomm’s chip manufacturing
business, is heavily customized, and uses “lot control” and other
features that are not attractive to the Qualcomm discrete
manufacturing businesses

The QCT instance uses two application servers, one Oracle 11.5.8
and the other, an Oracle 11.5.9 instance, primarily to support Oracle’s
Advanced Supply Chain Planning (ASCP) engine

The QCT instance does not include project accounting, nor does it
make allowance for international rollout

There is continuing discussion in the press about “spinning off” the
chip business

6
Separation of Prod and Non-Prod Procurement
Qualcomm USD Set of Books
Direct
and
NPI
Shelter
and
Bldg M
CORP (NonProduction
Procurement)
QSCO
(Production
Procurement)
Oracle Services
Procurement
MRP/ASCP
Completely automated
Procurement Process
iProcurement
Oracle Contracts
EMRs
Indirect
and
Services
Corp
Procure
** EMR’s also directed to QGTC, MUI, QMT and QSCO based on department
7
Quantum Implementation Sites
Russia (2)
Canada (1)
UK(5)
San Diego
SD1
QMT San Jose
Tijuana, Mexico
SD2
Mexico(6)
EU (DE, ES, FR,
IT, NE, SE) (6)
Korea(2)
Japan(2)
China(3)
Israel(1)
Taiwan (3)
QMT Taiwan
India(3)
Vietnam(1)
Singapore (1)
Indonesia (1)
Brazil (1)
South Africa (1)
Australia (2)
Argentina (1)
Actual sites, 2007 rollout
Potential sites, 2008 + global rollout
8
Services Procurement and Intern’l Planning: Agenda

Business Processes

EMR- related transactions and iProcurement (Phase I and ongoing)

Supplier visibility to transactional data using iSupplier (Phase I and ongoing)

Intercompany transactions between legal entities (Phase I)

International Requirements

International Sites Planning

Next Steps and Action Items

Additional Considerations

Next Steps and Action Items
9
Intercompany Transactions
Internal Sales Order for transaction between Legal Entities
MediaFLO
QWS
1. Create Internal Sales Order
2. Pick Internal Sales Order
3. Ship Internal Sales Oder
• Internal Req initiates process
MediaFLO OU
• Internal Sales Order created
Product
IC AR
Invoice
• Ship against Internal SO (QSCO)
• Accounting driven by Interco Rel
• Process defined in Shipping Net
Internal Requisition
IC AP
Invoice
Payment
External Customer
Finished Good
QWS OU
AR Invoice
• Both IC AR and AP Invoices
1. Receive Part into Inventory
2. Pick External Sales Order
3. Ship External Sales Oder
Internal Drop Shipments for ’01’ transactions
• Shipment initiates process
External
Customer
• No Internal Sales Order
• Ship against order placed in IO
• Accounting driven by Interco Rel
• Process defined in Shipping Net
QC Invoice
Drop Shipment
(Product)
QWS
IC AR/AP Invoice
QSCO
• Both IC AR and AP Invoices
10
International Requirements Gathering
• Needs assessment driven by the business
• Focus in on tangible benefits that accrue by implementing Oracle
• Offices grouped by size, affiliation to U.S. legal entities
• Benefits ranked by the business in order of importance
11
Potential Sites and International Rollout Considerations
Div #
Location
BU
Outsourced
72
Bangalore
QCT
In house
47
Germany
QCT
Outsourced
32
UK
QCT
In house
4
Hyderabad
QCT
In house
2
Israel
QCT
In house
51
Japan
QCT
In house
49
China
QCT
In house
26
Korea
QCT
Outsourced
83
Taiwan
QCT
Outsourced
93
Italy
QCT
Outsourced
75
Taiwan
QMT
In house
43
Europe
QGBD
Outsourced
4
China
QGBD
In house
4
Taiwan
QGBD
Outsourced
15
Korea
QGBD
Outsourced
52
India
QGBD
Outsourced
19
JapanKK
QIS
In house
Beijing Expat
QIS
In house
40
Cambridge (UK)
QIS
In house
78
Pool (UK)
QIS
In house
4
UK (expat)
QIS
In house
4
International Rollout Considerations:
 Set of Books (Calendar, Currency, Chart
of Accounts), Doc Sequencing in Europe
 Statutory Reporting Requirements
 Currency and Exchange Rates
 Common Modules and Common
Business Processes vis-à-vis local business
requirements from process perspective
 Tax Rates and Reporting
 Languages (both forms and reports)
 Document layout by Country
 Knowledge of Oracle, e.g. AX and MRC
 GAAP versus STAT (local) accounting
 Consolidations/ FASB 52 Requirements
12
Standard Oracle (“Silo”) Multi-Org Model
All Subsidiaries are Parallel Entities
Ledger Consolidation
Central Ger
L1410 1462
Fra U.K Ita Swe Den Hol Bel Swi Aus Spa Pol
1475 1473 1463 1444 1432 1461 1442 1465 1415 1467 14xx
Fra
Inventory:
EE
Mea
Swe Den
Nor
Fin
One Planning Org and One Global Master.
13
Spa
Por
Option I: Proposed Multi-org Structure using MRC
Global Multi-org Proposal
Master Inventory Organization
Business Group and Human Resources
Global Consolidated SoB
Cal: 4/4/5
Cur: USD
COA: Global
Germany
Italy
Netherlands
Israel
Korea
Cal: 4/4/5
Cur: IDR
COA: Global
India
Korea
MFG
France
Statutory
SoB
EUR
Germany
Statutory
SoB
EUR
UK
Statutory
SoB
GBP
Czech
Statutory
SoB
CZK
Swiss
Statutory
SoB
CHF
Spain
Statutory
SoB
EUR
Austria
Statutory
SoB
EUR
Belgium
Statutory
SoB (?)
EUR
Sweden
Statutory
SoB
SEK
Denmark
Statutory
SoB
DKK
Norway
Statutory
SoB
NOK
Operating Unit (OU) and MRC Key:
CnR Mexico not coupled to
QC Oracle implementation.
Statutory SoB
U.S. GAAP to Local GAAP
Adjustments
CURRENCIES
AUD
CAD
CZK
DKK
EUR
GBP
CHF
NOK
SKK
SEK
USD
Australian Dollar
Canadian Dollar
Czech Koruna
DanishKrone
EU Euros
British Pounds
Swiss Francs
Norwegian Kroner
Slovak Koruna
Swedish Krona
US Dollars
14
BRL
CHY
HKD
IDR
JPY
KRW
MYR
MXN
PHP
SGD
TWD
THB
PRC
Statutory
SOB
CHY
Brazilian Real
Chinese Yuan Renminbi
Hong Kong Dollar
Indian Rupee
Japanese Yen
South Korean Won
Malaysian Ringgit
Mexico New Peso
Philippine Peso
Singapore Dollar
Taiwan Dollar
Thai Baht
Thailand
Statutory
SOB
THB
South Korea
Statutory
SOB
KRW
Malyasia
Statutory
MYR
Mexico ?
Statutory
SOB
MXN
Singapore
Statutory
SOB
SGD
Taiwan
Statutory
SoB
TWD
Hong Kong
Statutory
SoB
HKD
Canada
Statutory
SoB
CAD
Statutory SoB
Italy
Statutory
SoB (?)
EUR
MRC SoB forUK GBP
Detailed Ledgers
Japan
UK
India
Cal: 4/4/5
Cur: IDR
COA: Global
INV
Spares
Israel
Cal: 4/4/5
Cur: JPY
COA: Global
OU
France
Japan
Cal: 4/4/5
Cur: JPY
COA: Global
SoB
UK MRC
Cal: 4/4/5
Cur: CHK
COA: Global
Europe
Cal: 4/4/5
Cur: EUR
COA: Global
Set of Books and Currency Key:
Hong Kong
Statutory
SoB
HKD
Set of Books
Statutory SoB in Bold indicates
mandatory Chart of Accounts.
Currency
Option II: Proposed Multi-org Structure without MRC
Global Multi-org Proposal
Master Inventory Organization
Business Group and Human Resources
Global Consolidated SoB
Cal: 4/4/5
Cur: USD
COA: Global
Germany
Italy
Japan
Cal: 4/4/5
Cur: JPY
COA: Global
Israel
Cal: 4/4/5
Cur: JPY
COA: Global
UK
Japan
Israel
Netherlands
India
Korea
MFG
France
Statutory
SoB
EUR
Germany
Statutory
SoB
EUR
UK
Statutory
SoB
GBP
Czech
Statutory
SoB
CZK
Swiss
Statutory
SoB
CHF
Spain
Statutory
SoB
EUR
Austria
Statutory
SoB
EUR
Belgium
Statutory
SoB (?)
EUR
Sweden
Statutory
SoB
SEK
Denmark
Statutory
SoB
DKK
Norway
Statutory
SoB
NOK
Operating Unit (OU) and MRC Key:
CnR Mexico not coupled to
QC Oracle implementation.
Statutory SoB
U.S. GAAP to Local GAAP
Adjustments
CURRENCIES
AUD
CAD
CZK
DKK
EUR
GBP
CHF
NOK
SKK
SEK
USD
Australian Dollar
Canadian Dollar
Czech Koruna
DanishKrone
EU Euros
British Pounds
Swiss Francs
Norwegian Kroner
Slovak Koruna
Swedish Krona
US Dollars
15
BRL
CHY
HKD
IDR
JPY
KRW
MYR
MXN
PHP
SGD
TWD
THB
PRC
Statutory
SOB
CHY
Brazilian Real
Chinese Yuan Renminbi
Hong Kong Dollar
Indian Rupee
Japanese Yen
South Korean Won
Malaysian Ringgit
Mexico New Peso
Philippine Peso
Singapore Dollar
Taiwan Dollar
Thai Baht
Thailand
Statutory
SOB
THB
South Korea
Statutory
SOB
KRW
Malyasia
Statutory
MYR
Mexico ?
Statutory
SOB
MXN
Singapore
Statutory
SOB
SGD
Taiwan
Statutory
SoB
TWD
Hong Kong
Statutory
SoB
HKD
Canada
Statutory
SoB
CAD
Statutory SoB
Italy
Statutory
SoB (?)
EUR
MRC SoB forUK GBP
Detailed Ledgers
Korea
Cal: 4/4/5
Cur: IDR
COA: Global
INV
Spares
India
Cal: 4/4/5
Cur: IDR
COA: Global
OU
France
UK
Cal: 4/4/5
Cur: EUR
COA: Global
SoB
Europe
Cal: 4/4/5
Cur: EUR
COA: Global
Set of Books and Currency Key:
Hong Kong
Statutory
SoB
HKD
Set of Books
Statutory SoB in Bold indicates
mandatory Chart of Accounts.
Currency
MRC Explained
Convert Direct Entered JVs
from Euros to GBP
Europe Primary SOB (Euros)
UK Reporting SOB (GBP)
Post Transactions to
Functional SOB
UK Operating Unit (Euros)
Post Transactions to
Reporting SOB
Order
Management
Accounts
Receivable
Purchasing
Accounts
Payable
UK Operating Unit in GBP
16
Subledger
Reporting in
Euros
Subledger
Reporting in
GBP
Additional Globalization Considerations
Common Country Features




Set of features that apply to a general region or set of
countries together (e.g. High Inflation Latin American
countries)
Supports VAT processing and subledger reporting in
support of VAT
Contains some functions specific to certain countries
(Receipt Acknowledgement for Greece and Portugal)
Globalization fields for additional data collection
17
Additional Globalization Considerations
Common Country Features
Inflation
Management
Statutory
Accounting
Subledger
Accounting
Tax

GL Balance Inflation Adjustments

Asset Inflation Adjustments

Support processes

GL Entry Reconciliation to Control Accounts

Allocation Accounting

Statutory Account Classes and Trial Balance Reporting

Gapless Document Sequencing

Customer Balance Reporting

Supplier Balance Reporting

Regional Reporting (Receipt Acknowledgement, Regional Invoice)

Latin Tax Engine

VAT Reporting Ledgers (GL/Payables/Receivables VAT Registers)
18
Additional Globalization Considerations
Common Country Features





For implementations with VAT or specific statutory reporting
requirements, Common Country Features are highly
recommended
Supports country specific globalizations and in conjunction with
base financial capabilities
Additional “Globalization” fields are provided which allow you
to add country specific information to subledger transactions
based upon the country of operation (e.g. Scandinavian
Invoice Info)
Access country specific functionality/fields through Country
specific responsibilities
DOES NOT replace Global Accounting Engine
19
Additional Globalization Considerations
Countries with Country Specific Financials are:
Argentina
Australia
Austria
Belgium
Brazil
Canada
Chili
Columbia
Czech Republic
Denmark
Finland
France
Germany
Greece
Hungary
Italy
Japan
Korea
Mexico
the Netherlands
Norway
Poland
Portugal
Singapore
Spain
Sweden
Switzerland
Taiwan
Thailand
Turkey
Note that China, India and Russia are not listed.
Bolded countries are within scope of the Qualcomm global implementation.
20
Conclusion