Post Office Limited End to End Re-Architecture Feasit
y Study Ref: BD/BRD(017
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Document Title:
Document Type:
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Business Requirements - End to End Re-Architecting Post Office
Product, Branch, Client, Cash and Stock Processes & Systems
Feasibility Study
Business Requirements Specification
NA
This document is output as a review of the joint Post Office and
Fujitsu Services activity to understand requirements for end-to-end
re-architecture of end-to-end Post Office processes. In order to
establish feasibility of re-architecting the processes.
DRAFT
Sue Harding
Dermot Martin, Stephen Hirst, Ruth Holleran, Jacky Mackenzie,
Clive Read, Neil Salter and Numerous Workshop Attendees.
David Pamell, Karen Hillsden, John Cresswell, Daniel Hawthome,
Bob Gumey, Phil Boardman.
Name
Position Signature Date
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Post Office Limited
End to End Re-Architecture Fe
Business Requirements
COMMERCIAL IN CONFIDENCE
BD/BRD/O17
2 OL
Date: 21/02/2001
0.0 Document Control
0.1 Document History
Version No. I Date
Reason for Issue
0.1 21/02/03
First Issue
0.2 Review Details
Review Comments by :
Review Comments to
Mandatory Review Authority Name
Optional Review / Issued for Information
(*) = Reviewers that retumed comments
0.3 Associated Documents
Reference [ Version I Date Title
Source
Unless a specific versio
the current approved versions of the documents.
0.4 Abbreviations/Definitions
referred to above, reference should be made to
Abbreviation
Definition
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Post Office Limited End to End Re-Architecture Fe: lity Study BD/BRD17
Business Requirements. 2 OL
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
0.5 Changes in this Version
Version Changes
0.6 Changes Expected
Changes
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0.7. Table of Contents
1.0 INTRODUCTION .
LL Scopes
2.0 BUSINESS CONTEXT
21 Background.
2.2 Approach..
2.3. Assumptions
24 Exclusions ..
3.0 BUSINESS BENEFITS ..
3.1 Overview.
3.2 E2E Benefit Summary
3.3 Cash and Funds Managemen
3.4 Accounting, Reconciliation and Settlement, including Debt Recovery and Branch
Control 26
3.8 Selling Products and Services, including Client and Customer after-Sales Service .n.31
3.6 Stock Management...
3.7 Reference Data sass
3.8 Management Information...
3.9 Benefits arising from Fujitsu Agreement Schedule 1
4.0 REQUIREMENTS OVERVIEW..
4.1 Selling Products and Services, including Client & Customer Aftersales Service .
4.2 Cash and Funds Managemen
4.3 Accounting, Recon
Control 52
tion and Settlement, including Debt Recovery and Branch
44° Stock Management. = oe oa
4.8 Management Information...
4.6 Reference Data ..
5.0 ENVIRONMENT CONSTRAINTS.
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6.0 FUNCTIONAL REQUIREMENTS.
6.1 Post Office Processes within Scope
62 Selling Products and Services, including Client & Customer Aftersales Ser
6.3 Cash and Funds Management.
64 Accounting, Reconciliation and Settlement, including Debt Recovery and Branch
Control 73
65 Stock Management.
6.6 Management Information...
6.7 Reference Dat
7.0 OPERATIONAL CHARACTERISTICS ...
8.0 NON FUNCTIONAL REQUIREMENTS ..
8.1 Non-Functional Requirement Assumptions.
9.0 PO BUSINESS CHANGE PLAN REQUIREMENTS .
9.1 Current Business Change Pla
10.0 DELIVERABLES...
11.0 SERVICE ACCEPTANCE REQUIREMENTS...
APPENDIX A — INFORMATION USAGES BY PROCESS...
APPENDIX B — PROCESS MODEL NOTES..
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1.0 Introduction
1.1 Scope
‘This document is a key element of a feasibility study to look at simplification
of the end to end sales and accounting process,
End to end simplification will include:
© Defining a new end to end business process for Post Office Ltd
focussing on
© Accounting, reconciliation and settlement, including debt
recovery and branch control
© Stock management
© Selling Products and Services, including client & customer
aftersales service
© Cash and funds management
* Defining the related data and information needs for:
© Management information
© Reference Data
* Re-architecting the systems environment including:
© Horizon
© POL back end systems
2.0 Business Context
2.1. Background
Post Office Ltd have had a long standing desire to improve the end to end
sales and accounting processes and to enhance the information which is used
to manage that process. In order to achieve this it needs to leverage and
simplify the current technology baseline to maximize the financial and
operational benefits achievable.
Fujitsu Services have committed, as part of the contract renegotiations, to
make changes within their own technical and operational domain, which
would support this and reduce the operating costs of the Horizon environment
(both operationally and during the development lifecycle). These opportunities
have been broadly documented within the new contract.
There are also potential savings from consolidation, removal or replacement of
Post Office Ltd systems (e.g. OpTIP, CBDB)
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Previous work now needs to be consolidated and refined into a delivery plan
with associated Business Cases, aligned to other change activities.
2.2 Approach
This piece of work will be a feasibility study which will analyse current state,
opportunities and solutions to a level sufficient to inform a set of delivery
projects, a migration plan and Business Cases, prior to formal requirements
analysis.
Post Office Ltd’s desire is that the delivery plan will consist of a number of
small projects, with the aim being that each should deliver:
= A positive NPV at 16%
= A payback within 12 months, where achievable
= Realisable and incremental benefits
In overall terms the programme should aim towards:
= Anet cost of £1-2m in 2003/04
= Ant benefit, or zero impact, in 2004/05
2.3. Assumptions
The following assumptions have been used throughout the study:
© Cash inventory management, warehousing and distribution will remain
within Post Office Ltd
* Stock inventory management and distribution will remain within Post
Office Ltd.
The value stock warehouse (Hemel) moves to Royal Mail Group and is out
of scope
‘* Current boundaries with Royal Mail Group processes and systems will
remain
* The Post Office Ltd change plan will be delivered, specifically AP
Enhancements, Mails and PAF
2.4 Exclusions
‘The following are out of scope of the study:
‘* Introduction of new channels into the end to end sales and accounting
processes (cash centres, BFPO’s ete are in scope)
‘* Development of customer relationship systems and processes
* Re-engineering of products currently within the Change Plan or where
current process and system capability exists
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3.0
3.1
3.2
3.2.1
Business Benefits
Overview
In each of the E2E Feasibility Study requirements capture workshops, a
benefits identification session was conducted with the Post Office business
representatives. Prior to the workshops, the business domain owners had
identified the key business priorities and benefits for their respective areas.
This information was used as the starting point for the benefits sessions. The
results of these sessions were captured as Benefits Results Chain Models
showing the actions and outcomes required to deliver the target benefits and
the associated sequencing and inter-relationships. The model was also used to
capture the benefits identified at the workshops together with associated
working notes and follow up actions.
These Benefit Result Chain Models and associated information captured at the
workshop, including feedback subsequently provided by the businesses, are
reproduced below. A further Results Chain Model has been included showing
the relationship between benefits and dependent Post Office actions identified
by Schedule 12 of the Post Office Agreement with Fujitsu,
In their current state, this section represents work in progress and it is
envisaged that they will be developed further as further detail is captured
regarding the E2E requirement definition and the key target business benefits
are refined and confirmed. The resulting material will be used to help
construct the benefits case for the E2E business case.
‘A summary of the main benefits identified to date precede the detailed outputs
from the workshops.
E2E Benefit Summary
CASH & FUNDS MANAGEMENT
CASH & FUNDS MANAGEMENT BENEFIT
£m p.a.
I. Automated order processing from branch through to cash
centre
Decreased cash centre write offs (€2m to £5m) 2.0 to 5.0
2. Automated accounting for cash deliveries and collections
from branches
* Eliminate order processing cash centre resources a
(€400k) °
3. Improved understanding of cash cycle to decrease
borrowing costs
* Decreased DTI borrowing costs (£200k)
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Version: 0.1
Date: 21/02/2001
CASH & FUNDS MANAGEMENT
BENEFIT
£m p.a.
‘© Decreased commitment costs (£100k)
© Decreased collateral costs (£50k)
© Decreased cash processing costs
04
4. Creation of a substantiated balance sheet
© Business imperative — avoids audit criticism and risk of
qualified accounts
5. Improved understanding of cash cycle to improve cash
flow
* Decreased holdings in cash centres by £15m (£700k)
* Decreased cash cushion at branches by £20m (£1m)
© Increased visibility of holdings of other cash items by
£10m (£500k)
2.2
6. Increased understanding of product profitability
Sub-Total: CASH & FUNDS MANAGEMENT
£5-8m p.a.
3.2.2. STOCK MANAGEMENT
STOCK MANAGEMENT
BENEFIT
£m p.a.
[Automated order processing (Transaction Stock)
# Reduction in centralised order team
© Decrease in Swindon costs -
Headcount (£30k)
ii. Postage etc 7 — 8000 returns weekly
(£80k)
04
2.Planned order capability (Value Stock)
# Reduction in Hemel costs —
i, Headcount (£300k)
ii, Local destruction - staff at Hemel = 13
-assume 10 (£200k)
# Reduction in stock specials
i, Transport (£200)
Improved inventory management
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STOCK MANAGEMENT BENEFIT
£m p.a.
7. Stock write offs (£60k) 08
ii, Decrease in the number of re-orders
3. Re-engineering of products/forms
© Elimination of centrally produced forms (1p per form)
© Elimination/automation of forms costing £2.8m
Sub-Total: STOCK MANAGEMENT £1.2m pa.
3.2.3. ACCOUNTING, RECONCILIATION & SETTLEMENT
ACCOUNTING, RECONCILIATION & SETTLEMENT
BENEFIT
£m p.a.
T. Single authoritative transaction data source
* Elimination of need to match with client data
* Decreased client debt
© Decreased client settlement write offs
2. Re-engineering of products and forms
© Decreased product matching requirements and resource
needed (£200k)
© Decreased errors
02
3. Creation of effective debt management process
* Decreased debt write offs (€1m)
* Reduce aged debt - 20% of aged debt at £15m (£50k)
1.0
4, Implementation of new accounting model
Increased robustness of POL accounts
* Decreased resource requirements in client settlement
(€75k)
O1
3. Elimination of legacy systems (OpTIP, CBDB, small
systems)
6.2
Sub-Total: ACCOUNTING, RECONCILIATION &
SETTLEMENT
£75m p.a.
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Version: 0.1
Date: 21/02/2001
3.2.4 SELLING PRODUCTS & SERVICES
SELLING PRODUCTS & SERVICES
BENEFIT
£m p.a.
1. Automation of existing validation at the counter — defined
as:
* Remainder of AP product re-engineering which cannot
fit into AP (as now) or APC (Additional Data
Capture). This will cover fundamental reference data
changes and on-line authorisation (eg. MOT
Validation, Asylum Seekers). Benefits to quantify
are:
o “New” reference data/on-line validation
Decreased penalty payments to clients
(dependent on contract)
© Added value to client of data quality
o Decreased branch work due to removal of
summaries
Nb: amount to quantify will be a percentage of AP
re-engineering which remains
0.5 to 2.0
2. Increased exploitation of key product competencies —
defined as :
© Development of an outpay facility and
printing facility for tax dises, ticketing, transaction stock
etc at the branch
0.5 to 2.0
3. Increasing sales — defined as:
# Increased selling time for branch staff leading to
increased sales and throughput
© Creation of product related cross selling prompts
Nb: use industry standard norms if appropriate
0.5 to 2.0
4. Conformance — defined as:
* Increased use of prompts
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Version: 0.1
Date: 21/02/2001
SELLING PRODUCTS & SERVICES
BENEFIT
£m p.a.
Nb: use example of non conformance and extrapolate
> 05
Sub-Total: SELLING PRODUCTS & SERVICES
£2-6.5m p.a.
3.2.5 © REFERENCE DATA
REFERENCE DATA
BENEFIT
£m p.a.
T. Implementation of single authoritative source of reference data
* Decreased resourcing requirements for reference data
maintenance
# Decreased call centre work
© Decreased instances of temporary procedures
© Increase capability to implement organisational change
¢ Elimination of inconsistent reference data
05
2. Implement Virtual team
© Elimination of duplicated verification work
© Fujitsu saving £0.2m p.a. (included below)
© Post Office saving tba
© Decreased time to implement reference data driven
business change
3, Elimination of various reference data legacy systems
Sub-Total: REFERENCE DATA
07
£1.2m pa.
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3.2.6 I MANAGEMENT INFORMATION
MANAGEMENT INFORMATION BENEFIT
£m p.a.
1. Implementation of back to profit plan
© Increased reliability of information being produced
* Increased visibility of poor performance
© Increased alignment of staff costs to workload 0.5 to
2.0
2. Creation of product profitability reporting
© alignment of staff incentive schemes (self funding) 0.5 to 2.0
3. Elimination of MI legacy systems
Sub-Total: MANAGEMENT INFORMATION £1-4m p.a.
3.2.7. I FUJITSU AGREEMENT BENEFITS ~ SCHEDULE 12
FUJITSU AGREEMENT BENEFITS - SCHEDULE 12 BENEFIT
£m p.a.
I. Variation in Horizon SI Commitment Fee 42
2. Variation in Horizon Operating Charge 06
Sub-Total: FUJITSU AGREEMENT BENEFITS — £4.8m p.a.
SCHEDULE 12
3.3. Cash and Funds Management
The following notes describe the draft Benefits Results Chain model that was
produced at the E2E Cash Management workshop on 6/2/03. The Results
Chain was developed as a number of views in the workshop and is reproduced
below as follows:
a Fig. 3.1.1: Cost Benefits
Fig. 3.1.2: Borrowing Cost
Fig. 3.1.3: Balance Sheet
Fig. 3.1.4: Write Offs
Fig. 3.1.5: Cash Flow
Fig. 3.1.6: Product Profitability
ooocges
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The descriptions of the model components and asso
the workshop, supplemented by subsequent feedback from attendees, are
reproduced following the Result Chains,
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Fig. 3.1.
End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
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(
: Cash Management Operating Cost Benefits Results Chain from 5-6/2/03 E2E workshop
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Scream
Indreases
Fig. 3.1.2: Cash Management Borrowing Cost Benefits Results Chain from 5-6/2/03 E2E workshop
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between SAP ADS deliveries and
and ledgers collections at the
branch
36 Create automated
Create linkage (ire of cash’
substantiated
freate separatio) balance sheet
between cash/
cash equivalents]
and stock
transaction data }
double entry ite
Fig. 3.1.3: Cash Management Balance Sheet Benefits Results Chain from 5-6/2/03 E2E workshop
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sectors athe fieingcr, 20)
Fig. 3.1.4: Cash Management Write Offs Benefits Results Chain from 5-6/2/03 E2E workshop
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°
Diécreased cushion
‘ONCH at branches
flexible planning }
Increased
understanding of
(cash characterisics
of individual products
péccoased OT cathy
porrowingsto support
network cash
requirements
Improved cash ow
reate flexible
denomination
supply & isue
yelicy
Greased vabillXot
holdings of other
cash tems
Decreases
‘commitment coats
Fig. 3.1.5: Cash Management Cash Flow Benefits Results Chain from 5-6/2/03 E2E workshop
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14
Increased
understanding off
product profitabili
understanding of
cash characteristics }
of individual produd
Increased
timeliness of
transaction
information
3
Need to mow cost
of cash
Cash Cycle
Fig. 3.1.6: Cash Management Product Profitability Benefits Results Chain from 5-6/2/03 E2E workshop
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OUTCOME
Ol-Decreased cash centre/branch reconciliation write-offs
Currently £5m write-off p.a. associated with cash remittance problems
Target reduction £m p.a. (Savings achieved by providing a full link from
Branches to CC's that would transmit value, pouch details, electronic receipt
and differences on day of despatch or receipt. Note original savings thought to.
be to optimistic although further detailed work may increase this figure)
03-Created clear visibility of cash funds in the business
O4-Decreased DTI cash borrowings to support network cash requirements
£40m reduction
O5-Increased accuracy of cashflow forecasts
06-Created separate accounting for client and business funds
07-Created visibility of overall indebtedness of clients
O8-Created vi
cash equivalents)
lity of physical cash at branch (i.e. distinct from cheques/
09-Decreased cushion ONCH at branches
£10-20m reduction in branch holdings - equates to £0.5-Im p.a. interest saving
010-Improved cash flow
£40m
O11-Decreased borrowing costs
£200k
012-Decreased operating costs
From 42 & 44,
Need assessment from Keith Barney
O13-Create a substantiated balance sheet
Business imperative
Avoids audit criticism and risk of qualified accounts.
014-Increased understanding of product profitability
Understanding of cost of methods of payment associated with product
Benefit achievable through consequential action by Sales & Marketing
015-Increased accuracy/ visibility of branch cash position
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016-Increased effectiveness of flexible planning
O17-Increased accuracy of product means of payment
018-Implemented cash Rems accounted for immediately at branch
Covered in OL
019-Increased timeliness of transaction information
Covered in OL
020-Decreased holdings in cash centres
Flexible planning is already targeting savings in this area, danger of
duplication.
Current £140m
Target reduction, say £15m = £0.7m interest saving
021-Create flexible denomination supply & issue policy
Would in theory save production hours in cash centre's in the future but
difficult to quantify at this moment in time due expected future changes across
the business
022-Increased accuracy/ visibility of cash centre cash position
Reduction in cash flow of between £1-5m p.a. - unsure of this figure - would
need more detailed analysis to verify (MP)
023-Increased accuracy of client settlement
Could be a dis-benefit because currently forecast positive
024-Increased co-ordination of marketing forecasts
025-Increased visibility of holdings of other cash items
Uncleared cheques, foreign currency, etc
£10m p.a. cash flow benefit realisable = £0.5m interest
026-Increased robustness/ accuracy of liquidity forecast
Impacts interest rates,
Target improvement £50k
027-Decreased commitment costs
Forward commitments to DTI which incur costs
Base cost £1.5m
Reduction target, £100k
028-Decreased collateral costs
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Security provided to Bank of England
Current cost £0.75m
Minimal benefit here, say £50k
029-Create link from flexible planning to cash centre forecasting
030-Increased accuracy of Cash Flow Forecasting System
031-Improved understanding of Cash Cycle
Main contribution to achieving this will be the new Post Office accounting
model and the capabilities that it provides to drill from the company ledger to
individual Branch details.
Other factors that will contribute include:
a availability of more timely MI
@ _ timely/accurate visibility of method of payments
032-Decreased cash "cushion" held at branch (mainly) and Cash Centres
033-Increased effectiveness of process planning
034-Increased visibility of Cash In Transit (CIT) position
Increased accuracy of Cash in Transit (CIT) should enable the level of
collateralisation to be reduced assuming that current estimating processes over
provision to err on the safe side.
035-Create improved Track and Trace capability for remittances
Ability to know at any time where cash is located - granularity to be confirmed
20% contribution to cost saving
037-Decreased effort in TP and Cash Centres addressing remittance
problems
Could reduce staff costs if errors were reduced. One PA duty per cash centre
* 7 (Approx. £100k per annum)
038-Decreased contact with branches concerning remittance errors
Could reduce staff costs if errors were reduced. One PA duty per cash centre
* 7 (Approx. £100k per annum)
039-Decreased work at branches concerning remittance bookings
040-Decreased complexity of branch cash declarations
041-Decreased administrative work at branches
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042-Decreased cash processing costs
Currently Cash Centres process every note received. If cash (notes) could be
placed into Bond more rapidly, by not processing every note immediately,
benefit would arise due to:
Q —_ earning more interest through earlier deposit into Bonded store
a reduced note processing costs (assumed that proportion of notes
processed is determined by risk management)
Processing of notes is required to determine MOS status (suitability for use in
ATMs which are more expensive).
Duties would reduce if pouch volumes dropped. Difficult to assess numbers at
this moment in time.
043-Improved production planning
044-Eliminate order processing cash centre resources
Probably potential for reduction of 15 staff in call centre staff (MP)
045-Create cash as a double entry item in ledgers
046-Create separation between cash/ cash equivalents and stock
047-Creation of branch account from transaction data
048-Method of payment identified at branch
049-Create hierarchy of cash holdings from company level down to branch
050-Create alignment of accounting periods between branch and centre
052-Elimination of keying of P16, 20D form data
It is understood that elimination is dependent on both of:
@ creation of linkage between SAP ADS and ledgers
a automation of a
‘counting for branch cash deliveries and collections
053-Increased visibility of method of payment
054-Increased understanding of cash characteristics of individual products
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055-Elimination of keying of Cash Centre Cash Accounts
056-Increased use of planned cash levels (Push) and less use of branch
estimates (Pull)
INITIATIVE
I1-Automate order change process at branch through to cash centre systems
12-Implemented new Post Office accounting model
13-Implemented link from flexible planning to cash centre forecasting
14-Implement improved Track and Trace capability for remittances
15-Implement linkage between SAP ADS and Post Office ledgers
20% contribution to cost saving
16-Implement automated accounting of cash deliveries and collections at the
branch
Probably will contribute 60% of total target saving
ASSUMPTION
AI-Effect unclear
A2-Adequate contingency provisions exist
A3-Need to know cost of cash
Ad-Acceptable level of risk associated with delays in opening/ counting
contents of money bags
A5-Assume current estimating processes over provision to err on the
cautious side and overstate CIT position
A6-What's reducing the borrowings?
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3.4 Accounting, Reconciliation and Settlement, including
Debt Recovery and Branch Control
The following notes describe the draft Benefits Results Chain model that was
produced at the E2E Accounting, Reconciliation and Settlement workshop on
31/1/03.
‘The descriptions of the model components and associated benefits captured at
the workshop, supplemented by subsequent feedback from attendees, are
reproduced following the Result Chains.
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Fig. 1.4.1: Accounting, Reconciliation and Settlement Benefits Results Chain from 31/1/03 E2E workshop
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OUTCOME
Benefit estimated as up to £5m pa
02-Decreased client settlement write offs
There have been instances in the recent past of up to £1m being ‘written off
due to unreconciled balances in the client ledger. In practice these have been
manageable within the Balance Sheet without affecting bottom line.
Any benefit would be about minimising the possibility of similar ‘write offs’
occurring in the future - ie. it is risk management rather than a specific saving.
03-Eliminate need for matching with client data
‘TP to comment.
O5-Increased client satisfaction
Review value of benefit with Sales team
O7-Eliminate time differences on transaction data
TP to comment.
09-Increased robustness of data on which to settle
This is mainly about reducing the risk of adverse external audit comment. We
do occasionally have audit qualification on specific benefits groups, but I
cannot recall any specific loss arising.
We have incurred losses and penalties on value and non value stock such as
BT Savings Stamps (up to £275k?) when they were withdrawn and Local
‘Schemes ‘tickets’ (up to £100k?), We'd need to be sure that the project was
addressing the root cause of these types of ‘stock’ losses.
010-Increased debt recovery
Target is 20% reduction of aged debt (currently £15m) p.a. - TP to comment.
O11-Decreased time to recover debt
TP to comment.
012-Decreased operating costs
Stephen/Ruth to view overall costs including systems costs. TP to comment as
they manage the key systems involved (Steve Beddoe in IT holds the budgets)
013-Improved cash flow
Stephen to advise re-benefit. Linked to (i) reducing overall debt and (ii)
decreasing the time taken to recover debt. Need to understand what TP
believes it can achieve and then quantify the resulting cash flow affeets.
O14-Karlier identification of debt
‘TP to comment.
O15-Decrease paper document matching requirements
‘TP to comment.
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016-Decreased errors
TP to comment.
O17-Increased management focus on debt recovery
‘TP to comment.
018-Increased clarity of debt reporting
Debt is currently not ledgered - TP to comment.
019-Consolidation, centralisation of debt function and giving higher profile
‘TP to comment.
020-Create effective debt management process
‘TP to comment.
021-Decreased resource requirements
Reduction in errors
Centralisation
Automation
Target saving £200k p.a. (10 staff)
024-Decreased debt write offs
f£lmpa.
026-Decrease operational cost of client settlement
This depends on what is being suggested will change. Fuller automation of the
settlement calculations, electronic accounting, automated banking and simpler
reconciliation may save, say up to 5 POs (c. £75k).
028-Decreased manual acti
ty due to elimination of matching client data
TP to comment.
029-Decreased client debt
TP to comment.
032-Increased robustness of Post Office accounts
Benefit to be scoped
034-Created capability to base client settlement on Post Office data
Should reduce the likelihood of creating client debt. See above.
035-How is benefit quantified?
037-Increased product and form automation
038-Created alignment between branch (Wednesday) and central (Sunday)
accounting periods
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No significant cost saving, but linked to improved robustness of accounts and
reduced likelihood of external audit criticism.
INITIATIVE
12-1
Establish single authoritative transaction data stream from branches
Matching required to address:
Remove paper documents matching
Client data streams matching
19-Re-engineer products & forms
111-Implemented new Post Office accounting model
ASSUMPTION
Al-Earlier detection increases chances of recovery
This assumption is only partially true. Decreasing estimating reduces the risks
associated with estimating, but also reduces the opportunities to manage cash
flow in our favour. On balance we would prefer to retain significant elements
of estimating
A3-Require client agreement to change
Ad-Contribution questioned
AS-Assume doesn't matter which day of week branch performs stock check
A6-Assume robust cash & cash equivalent declaration on daily basis at
branch
A9-Clients agree to product & form rationalisation
Alo-
lients agree to settlement on Post Office Data
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3.5 Selling Products and Services, including Client and
Customer after-Sales Service
The following notes describe the draft Benefits Results Chain model that was
produced at the E2E Sales workshop on 31/1/03.
The descriptions of the model components and associated benefits captured at
the workshop, supplemented by subsequent feedback from attendees, are
reproduced following the Result Chains.
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Fig. 1.5.1: Selling Products and Services Benefits Results Chain
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OUTCOME
02-Increased selling time for branch staff
03-Increased support for our staff
06-Decreased transaction errors
07-Decreased back office costs
O8-Decreased branch work due to removal of summaries
09-Decreased penalty payments to clients
010-Decreased time to get products to market
012-Decreased complexity of Horizon products at point of sale
013-Increased use of prompts
014-Create product related cross selling prompts
O15-Increased exploitation of key product competencies
016-Increased effectiveness of Horizon user interface
O17-Increased effectiveness of Post Office product approval processes
O18-Clearer and more generic costs
019-Quicker business case construction - easier to make commitments
022-How is this benefit manifested/ realised?
023-Does this result in reduced agent training, errors, etc?
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024-Does this result in increased sales?
025-Increased quality of client data
026-Increased Client Satisfaction
INITIATIVE
12-Automation of existing validation performed manually at branch
13-Implement product simplification and standardisation
14-Implement simplified Reference Data Management processes
15-Implement Horizon user interface enhancements
17-Implement customer focussed sales culture
ASSUMPTION:
Al-May increase time at counter
A4-What action is required to remove which specific summaries
3.6 Stock Management
The following notes describe the draft Benefits Results Chain model that we
started to produce at the E2E Stock Management workshop on 27-28/1/03.
The notes relating to the model components are presented first followed by the
draft_model which has been presented grouped around the following
perspectives:
a Automated Ordering at Outlet - Transaction Stock
a Planned Orders - Value Stock
a Product and Form Re-Engineering
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Fig 1.6.1: Automated Ordering at Outlet - Transaction Stock Benefits Results Chain
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<=—m
agar eon
Fig 1.6.2: Planned Orders - Value Stock Benefits Results Chain
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vows ee
one tomcat =— oe
Fig 1.6.3: Product and Form Re-Engineering Benefits Results Chain
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OUTCOME
Many thousands of stock items
Cost of all forms/consumables approx. £2.7-£2.8m
02-Elimination of centrally produced personalised forms
Cost of Lp per form - currently not cross charged to client
Total value of benefit to be established
O4-Increased standardisation of forms
Particularly sizes, variants of same form, ete
05-Local printing of forms
Includes local personalisation of forms
Made easier if forms are standardised
Benefit to be scoped
Cost benefit can be associated with each form
O7-Decrease out of date stock
08-Eliminate slow moving items from Swindon
09-Decrease Swindon operational costs
010-Decrease Hemel operational costs
£6m annual operating cost for Hemel
O11-Decrease Swindon transport costs
012-Decrease Hemel carriage costs
£11-14m annual transport cost for Hemel
013-Decrease warehouse space requirements
014-Decrease warehouse charges
017-Decreased re-ordering from outlet
Due to better visibility of order status - what is the resulting benefit?
Benefit to be scoped
018-Decreased Swindon postage, phone, ete costs
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7-8,000 weekly retums to Swindon
Similar quantities for Hemel
Benefit to be scoped
019-Decreased mail budget
021-Decreased requirement for Hemel manual order taking
022-Reduce number of orders for specials
For every special order there is a direct incremental transport cost - £1.3m p.a.
(of the £17-£20m) currently but is being reduced by other initiatives. Current
target is to reduce by 80%, i.e. to £300k p.a.
Expect to be able to substantially eliminate this cost - would need to leave
some residual provision (say £100k p.a.)
023-Improved inventory management
Desire to move just in time order for value stock
024-Decreased packing requirements
025-Improved POL cash flow
Discuss quantification with Stephen Hirst
026-Improved stock accounting
028-Increased use of local destruction of value stock
Approx. 13 staff in retums team at Hemel
Realisation of benefit dependent on number of lines allowing local destruction
Some products require retums capability, e.g. motor tax licences 6/12 month.
How do retums costs and re-printing costs compare?
029-Decreased wastage at the outlet
030-Decreased number of re-orders
Benefit to be scoped
031-Create capability to move stock between outlets
032-Decreased stock write offs
Current write offs of £120k p.a. - reduction opportunity possibly of 50%
033-Decreased stock outs
How are stock outs detected/measured?
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034-Increased sales
035-Decreased incidences of excess (dead) stock
036-Decrease requirement for serialised stock
040-Decreased requirement for centralised order taking
INITIATIVE
11-Implement planned order capability for value stock
12-Re-engineer products & forms
13-Implement automated order processing for transaction stock at outlet
Swindon have access to package for ordering, track and trace
Automated Order placing
Transactional stock tracking - daily updates
Value stock tracking - daily updates
14-Reduce number of employees in centralised order taking team
Potential to reduce Swindon costs by £300k p.a. through reduction in
headcount
16-What contributes to reduced Swindon transport costs?
17-What do we reduce that delivers the reduction in operational costs???
18-Reduce number of employees in Hemel order taking team
Potential to reduce Hemel costs by £300k p.a. through reduction in headcount
ASSUMPTION
Al-Assumes space can be re-used by other customers
A2-Requires step change to realise benefit
A3-Assumption that stock outs constrain sales
A4-Can measure/ detect stock outs
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AS-Ability exists to identify/ measure excess stock
A8-Is this due to reduced returns and/or re-ordering???
Al11-Benefit arising from decreased serialised stock needs to be quantified
BASIC CONTRIBUTION
Explain how decreased wastage contributes to reduction in Hemel carriage
costs
3.7. Reference Data
‘The following notes describe the draft Benefits Results Chain model that was
produced at the E2E Reference Data workshop on I 1/2/03.
‘The descriptions of the model components and associated benefits captured at
the workshop, supplemented by subsequent feedback from attendees, are
reproduced following the Result Chains.
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Fig. 1.7.1: Reference Data Management Benefits Results Chain from 1 1/2/03 E2E workshop
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OUTCOME
O1-Decreased operational costs
02-1
imination of inconsistent reference data
03-Increased consistency of reference data processes
O4-Decreased time to implement reference data based business change
06-Elimination of existing reference data systems
Accounts for a saving of circa £0.5m p.a
07-Decreased resourcing requirements for reference data maintenance
08-Increased capability to implement organisational change
09-Increased capability to produce robusttimely management information
O12-Increased accuracy of Post Office data
013-Decreased call centre work
015-Decreased Fujitsu verification work
016-Decreased Post Office verification work
018-Elimination of duplicated verification work
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021-Daniel’s point regarding organisational change
023-Decreased Fujitsu service charges
INITIATIVE
11-Implemented single authoritative source of reference data
12-Implement improved front end validation
13-Implement "virtual" team covering Validation and data entry functions
ASSUMPTION
A4-Assumes cost reductions can be realised
3.8 Management Information
The following notes describe the draft Benefits Results Chain model that was
produced at the E2E Management Information workshop on 14/2/03
The descriptions of the model components and associated benefits captured at
the workshop, supplemented by subsequent feedback from attendees, are
reproduced following the Result Chains.
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Fig. 1.8.1: Management Information Benefits Results Chain from 14/2/03 E2E workshop
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OUTCOME
O1-Increased income
03-Increased profit
02-Decreased costs
04-Increased customer satisfaction
O5-Increased sales
06-Increased product profit margins
O7-Increased Charges
08-Increased understanding of where business is failing
09-Cash and Stock out information
010-Customer satisfaction tracking
O11-Increased exploitation of existing Mystery shopper surveys
O12-Increased timeliness of data
013-Increased accuracy of data
014-Increased alignment of data to organisational structure
015-Increased reliability of information being produced
017-Increased alignment of staff costs to workload
O18-Create visibility of costs not charged
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Error notes
Specials
Non-direct costs (Costs flip chart covers them all)
019-Eliminate free issue
020-Increased visibility of sickness records
021-Better information to challenge business processes that do not add
value
023-Create capability to support performance management
024-Increased capability to deliver against business plans
025-Increased plan delivery performance
e.g. QOS plan, Cost plan, Sales plan
Last year £9m mis-aligned due to absence of accurate information - £12m paid
out for £3m performance
Des Docherty can help advise regarding current year's scheme
027-Creation of product profitability reporting
028-Increased responsiveness to implement recovery plans
029-Increased visibility of (poor) performance
Stuart Stevens dealing with Service Efficiency/Continuing Efficiencies
Mystery Shopper, QOS
030-Delivery of directly managed cost plan
INITIATIVE
11-Implement performance related pay
13-Take action to reduce costs
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3.9
Check with Dermot for benefit level
Benefits arising from Fujitsu Agreement Schedule 12
Schedule 12 of the Post Office Agreement with Fujitsu identifies planned
savings in Horizon SI Commitment Fees and Operating Charges that Post
Office can realise. The savings relate to reductions in costs of the Fujitsu
supplied Horizon services that can be achieved through simplification of the
Post Office End to End business processes and of the technical boundaries
between Horizon and the remainder of the Post Office systems estate.
The benefits to Post Office are the avoidance of the following costs:
@ Variation in Horizon SI Commitment Fee of £4.2m p.a. from 1 April
2005 which equates to a total saving of £21m over the period of the
Agreement (Schedule 10, 6.1.1 and 6.1.2)
a Variation in Horizon Operating Charges of £0.6m p.a. from 1* April
2005 which equates to a total saving of £3m over the period of the
Agreement (Schedule 12 Annex B)
The simplifications on which these benefits are dependent are detailed in
Schedule 12 of the Agreement. The following benefits Results Chain model
illustrates the sequence of actions and associated outcomes that are required to
enable the realisation of the Schedule 12 benefits.
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Cac esha
(erates —
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Fig. 1.9.1: Fujitsu Agreement Schedule 12 Benefits Results Chain
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4.0 Requirements Overview
4.1 Selling Products and Services, including Client & Customer
Aftersales Service
4.1.1 Scope
+ capture and validation of transactions at the point of sale (or other channel)
against pre-determined business rules
+ provide support to agents/clerks in the conduct of the sales process
+ authorisation of transactions where appropriate
+ settlement of customer sessions
+ dealing with customer and client enquiries at the point of sale and beyond
Key Priorities
Current priorities are completion of the Product Re-engineering Review and planning
of activities needed to achieve objectives as set out in the Change Plan,
4.1.3 Business Drivers/Issues
* Developing & maintaining processes delivering products to ensure value is
delivered to clients to support retention of Post Office Limited’s existing client
base
© Opening new markets and developing new product offerings with new and
existing clients to bridge the earnings gap created by the loss of existing products
© Improving the contribution to earnings to Post Office Limited by reducing costs of
delivering and administering existing products
© Having an IT capability that supports the customer propositions
© Having exit strategies for non profitable products
© Designing non conformance out
The approach being adopted is to change from being Client focussed to being
Customer focussed ic. changing from the client led business of the past, where the
needs of the client led the products sold, the way they were sold and the way they
were administered; to being more customer led, actively identifying the opportunities
to leverage the relationship with Post Office Limited’s customers, identifying
segments of customers and groups of products that they would “purchase” from POL,
and taking this as a proposition to clients.
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4.2
4.2.1
4.2.2
4.2.3
Cash and Funds Management
Scope
Management of physical cash within branches and cash centres including:
Inventory Management
Replenishment Planning
* Overnight Cash Holdings (ONCH) Control
¢ Distribution of Cash
Management of the overall liquidity of the business including:
¢ Cashflow
+ Borrowings
Key Priorities
2 fundamental changes have made Post Office Limited’s funding position a critical
business survival issue:
© The business is trading at a loss
© The migration of benefits to ACT will be accompanied by the loss of pre-funding
by government departments of the necessary cash in the network
The business now has to borrow funds to fund its trading losses and to fund working
capital needed in branches, Such borrowing is limited in availability and its costs add
to the trading loss. From April 2003 DTI will provide a loan and will require a robust
statement of cash holding as security.
Business Drivers/Issues
‘There is a requirement to
© Drive down cash holdings and therefore reduce the DTI borrowing requirement,
which in turn will reduce the level of interest paid.
© Bring together all the elements of cashflow and provide cohesive management to
deliver cashflow targets.
¢ Improve management information, linked to financial statements, to support the
management of cash (funds)
¢ To improve the financial controls for cash remittances, where there are losses of
£5m per
* To account separately for client and business funds to give a clear view of the
actual assets and liabilities of each.
¢ To clearly show the overall indebtedness of clients.
© To be able to accurately identify physical cash at outlet rather than overall cash
which can include cash equivalents such as cheques.
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43
43.1
43.2
¢ To be able to forecast and manage cashflow within the DTI target (£330m for
2002/03)
© To have a single, comprehensive view of cash (funds) in one place
+ To improve the integration of cash centre holdings into cashflow management
Accounting, Reconciliation and Settlement, including Debt
Recovery and Branch Control
Scope
¢ Interface of data to RMG financial systems
¢ Management of PO Ltd Bank Accounts
* Capture, Validation, Verification and Correction of client transaction data from
any channel where applicable
¢ Provision of validated client transaction data to int and ext recipients
© Responding to client/branch enquiries concerning transaction data
¢ Accounting at branches
¢ Branch control
© Recovering debt from branches, clients ete (ine non-transaction) debt
Key Priorities
¢ Make the identification of debt easier
* Reduce the amount of reconciliation required
¢ Increase the amount of debt recovered.
© Put the emphasis on clients and customers to validate the data
Simplify branch processes by reducing the amount of paper
© Centralise/consolidate agents debt
¢ Enable matching of cash at branches with settlement with client
Business Drivers/Issues
Re-focus on Debt Recovery (financial recovery of money), target 95%
© Only 10% of discrepancies are actually debt
Establish a central debt monitoring environment to enable the identification of
debt with a high degree of accuracy.
Toreport Business and Client information separately and accurately.
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4.4
441
4.4.2
© To increase accounting control in branches
Alignment of management and accounting information
Establish an appropriate and flexible accounting hierarchy
* Performance measures of throughputs and the actual financial debt.
© Rationalise systems in place to report client and business information
* To modify the method of recovering debt e.g. using payroll for agents.
Enable proper accounting of cash and stock
© Improve timing, accuracy, granularity and summarisation levels.
© Avoidance of losses from remittances and client settlement
© Accounting and settlement on our data, not clients
Manual journal documents and human intervention produce errors
© Accounting period alignment — branch Wednesday, business Sunday.
© Settlement estimating can produce positive or negative interest position
© Cash centre accounting is manual, weekly, therefore no through view from
transaction to settlement.
Stock Management
Scope
Central stock inventory management
stock replenishment planning
order processing — central
branch stock control
control of overall stock levels
inward/outward order processing at branches
‘There are two types of stock to manage:
Value stock - Stock items such as postal stamps, bus tickets, licences etc. These
can be either held as consignment (ie on behalf of clients) or pre-purchased by
Post Office Limited
Transactional stock - Stock items such as forms, leaflets, sales and promotion
materials
Key Priorities
‘Cost reductions in the areas identified below.
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4.4.3 Business Drivers/Issues
‘Transactional stock (20% of stock belongs to POL):
* Reduce cost of sales.
* Decrease stock cost by reducing amount of spending money for printed
documents and stationary.
© Reduce warehousing/ distribution costs
© 96% stock availability is required in branches, POL wants to stabilize this level
without increasing stock costs.
© Reduce cost of stock transport orders.
© Reduce operation charges in warehouse.
Value stock (10% of stock belongs to POL — POL plus Royal Mail = 50%)
© Stock availability
© 99% availability for Royal Mail products
© 98% availability for other value products (fishing licenses, local authority
schemes)
* Reduced cost
© Centrally managed stock transport orders.
* POL liabilities for losses.
* Reduced operation charges in warehouse
¢ Reduced cost for transportation
© Derived sales figures (CBDB) currently used for MI and settlement
* No single, consolidated view of stock
4.5 Management Information
Scope
There is a three tiered scope:
© MI requirements which underpin the key business processes and which are
distinct from operational reporting
¢ Performance MI required to be delivered to the operation for which Neil Salter’s
team is the focal point
© MT required at branch level required by the branch manager to enable him to run
his branch
Currently the Sales MI deliverable has produced a first cut data warehouse with sales
transactions from Horizon and reference data in order to:
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45.2
© Deliver sales data into the operation in order to drive up sales
© Delivering sales data to Sales & Marketing for marketing purposes
Key Priorities
© Having systems which enable the quick production of MI to flexible organisation
structures
© Generating a commercial based culture in the retail line via profit and loss
¢ Timeliness of information
Business Drivers/Issues
Sales MI has been delivered but its primary focus of gaining a quick view of what is
happening has been obscured by demands to use the data for other things eg.
Settlement. The business has stated that this should not be the case, although the data
can be used for providing interim figures
‘There is lack of clarity between MI and operational reporting
There is a need to be able to reflect current and ever changing organisational
structures in the delivery of MI. Current systems cannot do this and are based around
old organisational structures which means the data produced is of little value.
Historical data needs to move with changes in the organisation so that it accompanies
those changes. Currently this is not possible
‘The current granularity of the data used within Sales MI (Item/Branch/Day) is not
deemed to be sufficient for future needs
Potential gaps exist eg. Data from other channels like internet transactions
Business ownership of the data warehouse and the organisational structure required
for MI
Need to report out to the operation
Use of staff hours as an efficiency measure
Use of Mystery Shopper and report out results
Need to have more robust costing data and break down overheads into their
constituent components.
Reference Data
Scope
© The current reference data processes and systems within POL are complex,
inflexible and inconsistent, therefore the quality of reference data is mistrusted.
© There are several systems within POL which master items of reference data and
there are several more systems which key in their own reference data which exists
in master systems.
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© The process of making reference data changes is complex and lengthy leading to
allegations that the business cannot get its products to market quickly enough,
This is compounded by a boundary between POL and Fujitsu Services with
various systems and process interfaces between the boundaries
The scope of this work is to simplify the processes and systems within POL and
Fujitsu.
4.6.2 Key Priorities
To ensure consistency in reference data usage within Post Office and Fujitsu
«To simplify the current processes
To allow changes, such as organisational changes, to be implemented in a more
timely fashion
4.6.3 Business Drivers/Issues
Support data driven change within the business
Reduction in operation costs
* Removal of inconsistent reference data being used within the organisation
«Allow for new processes which effect a vastly improved speed to market
Lack of a fully automated end to end process to capture reference data changes
leads to delays and errors.
© Locally held reference data will need to be removed and made available from a
central source.
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5.0 Environment Constraints
Any new processes and system(s) must provide the following interfaces:
= With Royal Mail Accounts System
© provide accounting entries of POL business as defined in Produce POL
Sub Ledgers through to Royal Mail accounts system (ES-FS)
© It is unlikely that the Royal Mail Accounts System will be re-
developed and so assumption should be that interfaces will be the same
as, or very similar to, existing interfaces.
= With Royal Mail (SAP) HR System: the new systems(s) will need to provide
summary outlet transaction data by volume and value to the SAP-HR System
for agent remuneration processes.
© Itis assumed that SAP-HR will perform as it does now receiving feeds
from various places to perform the calculations
= With Client Systems:
© ally new processes and system(s) will need to provide transaction data
or summarised data to clients’ systems:
© any new processes and system(s) will need to provide client settlement
amount information to clients’ systems:
© any new processes and system(s) may need to provide reference data to
some clients’ systems:
© any new processes and system(s)may need to receive client
information (to update reference data with) from some clients’
systems.
© We cannot assume that clients systems will be significantly developed
in the timescales and so must assume that these interfaces will be the
same as, or very similar to, existing interfaces.
= With Banking Systems
© any new processes and system(s) will need to initiate banking
transactions on banking systems (make payments to clients):
© any new processes and system(s) will need to receive bank statements
information from banks, in order to identify and reconcile payments
from clients.
© We assume that these interfaces will be the same as, or very similar to,
existing interfaces
= With Online (Client) Services (including NBE):
© any new processes and systems will need to request and receive client
authorisations and inform clients of completed transactions for some
client products (e.g. network banking transactions).
© We cannot assume that clients systems will be significantly developed
in the timescales and so must assume that these interfaces will be the
same as, or very similar to, existing system interfaces.
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6.0 Functional Requirements
‘The functional requirements were identified by producing a process model of the
processes to be supported within the scope of the new system(s). The process model,
information analysis and any business design assumptions are documented within this,
section.
During the production of the Process Model various notes were taken and added to the
model. For completeness the notes are included in Appendix B of this document.
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ited End to End Re-Architecture Feasi
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ity Study
6.1 Post Office Processes within Scope
Product Design Rules
Product Change info
‘Customer Requirements
Ref: BD/BRD/O17
Version: 0.1
Date: 21/02/2001,
‘Management formation
AS
POL Business Ledger Entries
‘Transaction Data
22
Dscrepencies
‘Stock Usages through Transact
Bock Holling hformetion
Supplier Orders
‘Stock Receipts
a Stock Despatches
Cash Usages through Transactions, ‘Cash Centre Cash Holding Information
Branch Cash Holding
Cash Receipts
Cash Despatches
mr Cash Orders
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6.2 Selling Products and Services, including Client & Customer Aftersales Service
Reference Data & Susiness Rules
Restart Trnsaction/Session Paused Transaction Session
Reterence Osta & Business Rules
Customer Requirements Canceled Transaction
Transacton Data
Inia Transaction Info
Canceled Transaction
ference Oda & Business Ril i Mindell =——
Stock Holding jntormation 75
Transaction Aftharsaton / Extra Informat
puthorsation into (Fa
a) Session Adjustments
Non-Authoristion
rence DataI& Susiness Rulgs
Client Authorisations
es to Enquiries
pees to Eras
————
“iol Sales Enquiries Requests for Authorisation trom Cie
Enquiries
Branch Paint of Sale int
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6.2.1 Settle Customer Session
Ref: BD/BRD/O17
Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001,
Reference Data & Bushes Rules
‘Transaction Authoisaion/ Extra informaton
e400
> ‘Session Adustments
Payment Althorsation rfo(f required)
Payment Authorsabon!Non- Authorisation
a)
Payment formation
Reference Data & Business Rules
Transaction Data
ie
4 ‘Tansocton curtain
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6.2.2 Business Design Assumptions
6.2.3
6221 It is assumed that transaction data will be required to identify the outlet
agent to enable agent performance to be measured.
6.2.2.2 It is assumed that the data relating to transactions (products sold, numbers
of, value, session id) are stored within Horizon data to enable effectiveness of
cross-selling initiatives to be measured.
6.2.2.3 It is assumed that not all products will be tokenised and a “rump” will
remain which will have to be dealt with differently
6.2.2.4 There is a requirement to be able to tie up MOP to the transaction as
opposed to the session
Previously Identified Requirements
Extensive detailed requirements have been specified for the Sales process (and can
be made available if required). However, the vast majority of these are now being
implemented by a number of other related projects/programmes eg. Mails, AP
Enhancements etc. There will be a number of residual requirements which,
therefore, need to be taken into account during the more detailed analysis phase
specifically around
any remaining AP product re-engineering required after AP Enhancement
© (Additional Data Capture)
an outpayment facility
printing of transaction documentation at branch eg. tax dises/event ticketing
* etc
© use of prompts and cross selling
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Descriptions of Functions —(Formatted: Bullets and Numbering i}
Client Authorisation The activity of client receiving and authorising requests
from a branch. Typically through on line banking
‘Customer Enquiries [Customer making an enquiry for a product or service
Launch Session Entry point to a transaction or service
‘Capture and Validate Capture and validation of data required to undertake the
Transaction Data transaction
Authorise Transaction Authorisation of a transaction where this is required.
Could be on-line or local depending on product
Settle Customer Session
“Authorise Payment ‘Authorisation of payment through use of specifie MOP
eg. Debit eard
Make Take Payments
Produce Receipt Printing ofa receipt for the eustomer
Print Transaction Printing of items at either POS or Branch back office eg
Documentation Tax dises/insurance certificates ete
Record Transaction Delails I Electronically recording of transaction details
Request Settlement Request for the customer session to be closed through
payment
6.2.5 Information Usages
‘The information usages of the lowest level processes are identified in Appendix A
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6.3 Cash and Funds Management
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6.3.1 Branch Cash Management
Branch Cash Heng
‘Cash Usages Trough Transactions I
Branch cash Heng
Opening aah
‘Arcunts to Despatch
‘Renned Cash Orders
Local Gash Requirements frm os Eeroeiciie Cmeereqane
(Chaques Despatched
[=] —
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6.3.2 Branch Central Cash Management
(Cash Fw & Hokings Performance Data
Naeting Forecasts
‘ie Ranring Pararaters
ranch Cash Heldrg
cash fom
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6.3.3 Cash Centre Central Cash Management
Forecast Performance Reports
Norhatng Forecasts
Seasonal Data
Fanned Cash Orders
Cash Cente Cash Hating eration
‘Custer Trane scons
(cash Flow & Hokings Partermance Data
Cash Conte Forecasting Parameters
cash Forecasts & Hing Fans
5
Ferformance Feecback
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6.3:46.3.4 Business Design Assumptions
6.
1 All cash management activities from ordering and control for the outlet
through to central inventory management and supply and warehousing of the cash
centrally are ineluded in scope
6.3.4.2 Accounting for cash between outlets and cash centres will be within the
scope of this study
63.4.3 It is assumed that it is the agent’s responsibility to make cash and stock
declarations.
6.3.4.4 Any forward planning needs should be determined by historical data
63.45 It is assumed that facilities to handle stock/eash discrepancies will provide
support to the following processes;
= Outlet may identify a eash discrepancy as part of outlet liability. He may make
this good himself or (if disputing) identify as an unidentified diserepancy in the
outlet liability. This diserepaney will be ledgered,
‘= Investigations may take place centrally and with outlet to determine if the
discrepancy is true or otherwise. If it is agreed that the outlet is liable then a
correcting transaction will be generated by Debt Recovery for automated
acceptance by the outlet. This transaction will be flagged as “pending
acceptance by outlet” . The automated acceptance by the outlet will update the
outlet liability which, in turn, will be flagged in the outlet liability statement
which, in tum, will remove the centrally flagged “pending acceptance by outlet”.
‘The ledgers will be updated accordingly. If for any reason the outlet does not
accept the correeting transaction, then the outlet liability will not be updated and
the central flag will remain alerting the centre that non-acceptance has taken
place and needs to be pursued.
6.3.5 Previously Identified Requirements
The following requirements are still valid and are focussed mainly around Branch
Cash Management in addition to other requirements which have emerged from the
workshops.
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Requirement Priority
ID Description HWMIL I Ver
CASH MANAGEMENT
General
2001 _I There must he sufficient cash in the oullet to cover all wansactions fa 20
2.002 I The cash levels held at the outlet must be optimised H 20
2.004 _I An up-to-date inventory position must be available to the outlet at any time. ii 20
72,009 _I The system will prompt clerks to perform cash lis T 20
ZI _I The sales process will decrement stock at the ltem/serial number level i 2
2.012 I When selling from common stock, accountability will be maintained by the system, H 20
2.013 I When transferring stock between positions, the system will prompt the receiving tilt I M 20
book it in
2014 I Receipts will be printed for completed transfers M 20
2017 _I Teis essential that systems and connectivity have a high degree of resilience it 20
2.018 I Central Inventory Management must be aware of outlets where the system or M 20
connectivity is down
2019 _I Message between suppliers, Central Inventory Management and outlets must not be io 20
accessible by unauthorised individuals
2.020_I A hierarchy of access controls to system functions will be required. M 20
2.021 _I Administration processes need to have varying levels of prompts and controls M
2.022 I Stock may need to be activated at the point of sale M 20
2,024 _I Signing-on to and signing off from tills must be quick H 20
Thward Orders
2.100 _I Records will be produced for each inward order activin i 20
2.101 I The system must support the concept of planned orders for delivery of cash/stock to the I H 20
outlet
2.102 _I Inventory items will be replenished by denomination i
2.103 _I All inward orders will include details of the content and planned delivery date H 20
2.104__I Inward orders may only be raised for inventory items that can be sold at the outlet H 2.0
2.105 _I The outlet must have the facility to change planned orders H 2.0
2.106 _I Orders supplied by 3° parties will be co-ordinated by Central Inventory Management I H 20
2.107 I Central Inventory Management must have visibility of known exceptional cash M 20
requirements
2.108 I The outlet must have the facility to raise an inward order H 20
2.109 I Messages between outlets and Central Inventory Management must be timel H 2.0
2.110 I Product substitutions must be highlighted i 2.0
2.111 _I The date on a planned order cannot be changed by the outlet M 2.0
2.112_I Revised delivery dates must be transmitted to the outlets #
2.113 I A confirmation of order details will be transmitted to the oullet prior to despatch a
2.114 I Order confirmation messages must be confirmed as read at the outlet M
2.115 _I Tokens will be used for all inward orders H
2.116 I Each order must contain a picking list/ delivery note giving the order number and H
content details
ZAI7_I Goods receipt token swipe must be linked to the delivery notification message at the a 2
outlet
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Requirement Priority
ID Description H/MIL I Ver
2.118 _I The receipt process must be controlled H 2.0
2.119 _I The delivery outlet will be verified at receipt H 2.0
2.120 _I The order details will be automatically booked into the outlet on delivery H 2.0
2.121 _I The carrier's driver wil be given a physical receipt i 2.0
2.122 I Confirmation of the order receipt will be transmitted to Central Inventory ManagementI H
2.123 _I Unchecked orders will be recorded with a holding status H 20
2.124 I All inward orders must be counted by the end of the trading day H 2.0
2.125 I Outlets will be liable for discrepancies in unchecked orders. M 2.0
2.126 I Must be able to sell from an unchecked pouch H 2.0
2.127_I Checking of receipts will be aided using prompis M 2.0
2.128 I Pouch contents will be checked against the system H 20
2.129 I Token technology will be exploited to the full to aid order receipt checking M 2.0
2.130 _I Partial order receipt checks will be allowed M 2.0
2.131 _I Inward order discrepancies will be transmitted to Central Inventory Management H 2.0
2.132 I A facility will be available to correct order checking input errors M 2.0
‘Outward Orders
2.200 _I Records will be produced for each outward order activity int 20
2.201 I Central Inventory Management will plan return orders from outlets H 2.0
2.302 _I Replenishment planning will include rules for ‘out-of-date’ recalls H 2.0
2204 I Planned return order details will be transmitted to the outlet by Central Inventory H 20
Management
The outlet will be able to change planned orders within a defined timescale i 20
The date on a planned return order cannot be changed by the outlet M
The outlet will have a facility to raise return orders H 20
The outlet will inform Central Inventory Management of unscheduled return orders H 2.0
“Messages between outlets and Central Inventory Management must be timel H 2.0
Central Inventory Management will inform the outlet of delivery dates for outlet H 20
requested return orders
2211 _I The process for returning note/ coin bag shortages and surpluses must be simplified M 20
2.212 _I The frequency of return of inventory items will be governed by business rules M
2.213 _I Token technology will be used where possible to aid picking, and packing H 20
2.214 I The system will provide help during the picking/ packing, process to prevent packing M 20
together of incompatible items
‘When an order is packed, the inventory items will be changed to a holeling status H 20
“Hele! orders will be highlighted by prompts after a defined period of time M 2.0
Order handover from the outlet to the supplier will be tightly controlled H 20
Central Inventory Management will be informed when orders are despatched M 2.0
Cash Handling & Distribution will open cash returns within the next working day H 2.0
2201 I Despatch of outward orders will not be limited to a single till M 20
2.222 I Outward order discrepancies will be communicated to the outlet by Central Inventory I M 20
Management
Quilt to Outlet Orders 20
2,300 _I Outlet to outlet orders will he allowed subject to authorisation M 2.0
2.301_I Business rules will determine whether the outlet to outlet orders can take place M 20
2.302 I Outlet to outlet orders will he controlled via the Central Inventory Management system I M 2.0
2.308 _I Outlet to outlet orcler messages will be sent to Central Inventory Management M 2.0
2.304 _I Where possible, the outlet system will be used to enforce rules for outlet to outlet orders I M 2.0
2.305 _I Transport controls are required for outlet to outlet orders M 2.0
2.306 __I Transfer from an outlet to an outlet that cannot sell the inventory item will not be allowed I H 20
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Requirement Priority
1D __I Description HMIL [Ver
2.307 _I Error rules for outlet to outlet orders will be as for standard inward/ outward orders M 20
Cash Declaration
2a00_I Cash declarations must be carried out dai a 20
2401 I The cash declarations will support both the Inventory management and accounting, H 20
processes
2A02_I Cash at a held status (unchecked recelp) must be checked before a declaration canbe I H 20
made
2.403 _I The system will allow cash to be input by denomination 20
2.404 I The outlet must be able to distinguish country, mutilated/ spoilt notes etc, from usable I M 20
notes to aid accurate replenishment and outward orders
2.405 I Cash declaration discrepancies will be displayed, and prompts/assistance given to aid M 20
resolution
72.406 _I Discrepancies may be overridden at the outlet H 20
2.407_I Cash declarations will be confirmed authorised using a PIN or password H 2.0
Miscellaneous Adjustments/ Burglaries/ Robberies
2750_I A facility to record miscellaneous adjustments (eg, following a burglary) is required H 20
2751 _I Details of Miscellaneous Adjustments will be passed to Outlet Liability and Central H 20
Inventory Management
Reporting/ MIS
2.800 I Must be able to report stock levels by product by outlet fa 20
2.801 I Lost sales opportunities need to be captured and analysed M 2.0
2.802 _I It must be possible to reconcile the movements of secure stock throughout the network at_I M 0
the lowest evel
2803 _I The cost of replenishment needs to be calculated fa
2.804 I Undelivered orders must be reported H 20
2.805 I Outlet to outlet orders will be monitored H 2.0
2.806 I Any Horizon till being reported on must not have its performance adversely affected. H 20
2.807_I It must be easy to isolate and print suspect transactions on the transaction log. H 2.0
2.808 _I End of day reporting must be automated H
72.809_I Reporting processes must be efficient H 20
62:26.3.6 Descriptions of Functions (Formatted: Bullets and Numbering )
Cash in Transit Cash in the course of conveyance, in the form oF
remittances, between cash centre’s and branches in either
direction,
Also refers to the organisation engaged in the activity of
transporting cash hence CHD is a cash in transit operator.
Branch Cash Management
Record and Monitor Cash Maintains a running total of eash holding
Holding
Cash Verification and ‘Compares actual with branch system derived view of eash
Declaration holding and identifies discrepancies
Review Planned Ordersand I Aetivity performed at branch to review the planned cash
Request Changes onder and request changes to that order if necessary
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Receive and Verify Cash
Z-phase process — at receipt of pouch process ouiputs
Delivery recognition of amount of cash assumed to be as on
consignment note to be recorded on branch accounts.
At some time later the verification/acceptance of amount
take place
Despatch Cash Outward remittances being retumed to the eash centre
Batch and Despatch Cheques,
Batching of cheques taken over the branch eounter during,
the day and despatch of cheques to EDS.
Cash Centre Cash The operational activities associated with the processing of
Management cash on receipt into or despatch from a cash centre.
Cash Centre Central Cash The activity which determines the appropriate levels of
Management cash necessary to be held in cash centre’s in onder to meet
operational requirements, to monitor actual holdings and
drive any necessary improvement/re-balancing activit
Cash Centre Conformance
Monitoring
Activity to monitor the eonformance of cash centre’s to
operational instruetions. In the context of cash
‘management such instructions will relate to production
plans, bond deposits/withdrawals, and instructions relating
to the movements of cash to and from institutions.
Cash Centre Forecasting
‘Activity to predict the flows of eash into and out of eash
centre’s whether as remittances or other flows, e.g.
customer direct deposits/withdrawals, deposits to bond or
transfers to other financial institutions, from which eash
holding levels, re-balancing cash movements, investment
decisions and bank of England reporting are facilitated.
Cash Production Planning and
Cash trading
Activity to determine the levels of bulk eash processing,
and inter financial institution trading necessary to meet
operational outflows within the constraints of the Bank of
England Note Circulation Scheme and at minimum levels
consistent with supply/demand variability
Monitoring Cash Centre Cash
Holding Performance
‘Activity to monitor the eash holding performance of cash
centres against targets derived from forecasts of in and
outflows of eash and bulk processing requirements,
Flexible Plannin;
Branch Central Cash Activity undertaken by inventory management team in
Management cHeD
Monitor Branch Cash holding I This information feeds into the flexible planning tool to
performance establish the standard rem order by branch
IThe system which creates the standard rem order
Manual Adjustments
“Adjustments to remittances as a consequenee of branches
requesting changes to remittance.
Branch Despatch
Conformance Monitoring
Conformance check to establish whether Branches are
sending inward remittances as requested by Flexible
Planning system.
Delivery Schedule Planning
Delivery pattems inclading route and frequency.
6.3.7 n Usages
The information usages of the lowest level processes are identified in Appendix A
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6:3:46.4 Accounting, Reconciliation and Settlement, including Debt Recovery and Branch-— {Fermatted: bulets and Numbering )
Control
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6.4.1 Client Settlement to Client
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6.4.2 Client Settlement from Client
it Terms
Adjustments to Future Settlements
Payment Request tothe client
I
Cent Ledger Adjustments
Settoment Dscrepencies
‘Settlement Amounts
Debt Recovery hems
—
‘Transaction Corrections
Finance
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6.4.3 Verification
‘Transaction Corecsons
Ledger Eney Infomation — Summary Level Discrepencies
I
Branch Paperwork
‘Activity Exception Reports
Discrepencies
‘Transaction Conections
——
Cheques Processed
‘Transacton Data
‘lent Athonsations =I
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6.4.4 Debt Recovery
Deoeracovey Pn tomato
Fess of Dat Recovry Acton
Tm
=
t
Lesa ey Wormaton
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6.4.5 Produce POL Ledger
Leno Ere
Ref: BD/BRD/O17
Version: 0.1
Date: 21/02/2001,
— I tive
er —— 1 _..
— fF oe al ae
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6.4.5.1 Branch Liability Management
Brarch Ledger enified Ten rns
—=_—__i Deb Recovery ms
Dat Recovery tems
ented Tn rns
Dacrepences
(Cosing Branch Suspense tems
an
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ity & Funds Management
POL Business Ledger (ES-FS)
Ref: BD/BRD/O17
Version: 0.1
Date: 21/02/2001,
interest Report
ABC Data
Costing Analysis
Settlement Amounts
‘Seasonal Data
Marketing Forecasts
Mandatory Data (eg. BOE Statement)
Cash Flow Forecasts
vestments & Borrowings
‘Cash Flow & Holdings Performance Data
Forecast vs Actual Data
Forecast Performance Reports
cash tefor
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6.4.7 Business Design Assumptions
64.7.1 It is assumed that SAPHR and ESPS are outside of the seope of the end-
to-end reengineering
OAT2 The Outlet Liability Statement is prepared locally at the outlet. The
process will be required to support adjustments resulting from agent inspection
and agent acceptance. It is assumed that the agent will be required to confirm
Outlet Liability on a weekly basis,
64.7.3 Itis assumed that debit card payments are handled as a MOP
64.7.4 It is assumed that produet choice for the new accounts system is not
constrained to SAP if significant cost benefits can be achieved through alternative
products that meet the requirements of the accounts process.
OATS It has been assumed that an agent remuneration file will be passed to
SAPHR for processing,
6.4.7.6 Any financial accounting data will be input to ES-FS as itis now
64.7.7 It is assumed that the existing agent payment model will be retained, ie
no provision is being made for changes in the way that agents are paid. Debt
recovery may deduet from pay
64.78 There is a requirement to make enquiries on transaction records held
centrally . Five types of enquiry are to be assumed, i.e. by customer, client, by
Outlet, by date and product. Search eriteria are required to support a “wild card”
character.
64.7.9 Two escalation levels are required for management approval of
‘compensating transactions in the ledgers.
64.710 It is assumed that there will be facilities required by accountants/finance
department to identify and address discrepancies
64.7.1 It is assumed that there is not a requirement to integrate the various
solution components at the user interface, e.g. there will not be a requirement to
drill down through a ledger to a transaction held in the SDS. Each solution
component will therefore support a user interface that only accesses data hosted
on that solution component.
64.712 ‘There is a requirement for authorised Counter users to be able to access
the Outlet Liability Statement and to be able to drill down to individual
transactions from which it has been calculated
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6.4.7.13 There is assumed to be a need to be able to view, at the Outlet, the current
state of the Liability Statement at any time.
6.4.8 Previously Identified Requirements
The following requirements are still valid and are focussed mainly around Branch
Liability, ledgering and settlement in addition to other requirements which have
emerged from the workshops.
Requirement Priority
ID __I Description H/MIL_I Ver
ACCOUNTING
General
3.101 I Cash declaration must be as close as possible to the end of day to drivereplenishment I H 20
planning.
3.102] System must distinguish between transactions before and after stock-take to meet H 20
SAPADS requirements.
3.103 I SAPADS and front end system must have stock check flexibility for operational purposes, I H 20
e.g. do more than one stock check for a product line per outlet per day.
3.104 I Ensure integrity between stock holdings and stock transactions - they should always be I H 20
aligned
3.105__I Supporting documents, where required, should be generated by the outlet system. A 20
3.106 I Product should be re-engineered to ensure that fallback can be performed at the outlet I H 2.0
when the system is down.
3.107 _I Accounting arrangements must use open item ledger principles. i 20
3.108 I Outlet level information to he kept for audit / MI/ control purposes which can be agreed I H 2.0
to the ledgers
3.109 I Ledger all transactions which have happencd Unll the closing Ume/date H 20
(day/quarter/ half year/ year) in the correct period by close of ledgers.
3.110 I Transactions carried over should have the correct transaction date even if the posting H 20
date is recorded as the next period.
BAIT _I The reconciliation of AP products should be supported by the application of consistent I H 20
harvesting rules for the data sent through to client systems and PON’s own back-end
systems
B12] ‘One shop’ password for auditors ~ this process needs sireamlining as I lakes too long to I M 20
arrange the passwords at the moment.
3.114 I To record counter transactions such as to create consistent views of the lability of agents I 20
to the Post Office and the Post Office to its clients by products
3.115 I To record transactions such that views can be generated in arrears for any period. (eg. I H 20
daily, weekly, monthly, quarterly, annually.)
3.116 _I To record transactions by product, by value and oF volume and by transaction type ii 20
3.117 I Torecord the source of ledger postings. H 2.0
3.118 I To enable reporting on each category of “product” within the Ledger system to meet i
business centre and head office finance requirements, including robust identification of
VAT liabilities, cost of sales and associated stock accounting,
3.119 I Specific product groups to be established which reflect the accounting entries required by I H 20
the business.
3.120 _I Transactions will need to be captured and recorded in all reporting and accounting, H 20
systems by volume and value.
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Requirement Priority
ID Description H/MIL I Ver
3.121 I There needs to be flexibility in the system to change and build hierarchies as may be H 20
required in the future both in respect of products/clients and outlets/ retail network
manager/ regions etc.
3.122 _I Adjustments for errors need to be identified as a adjustment for a specified reason 80 H 20
settlement can be itemised accordingly. The date of the transaction needs to be captured
as well as the posting date.
3.123] The system must he able to give “Instantly” accessible reports that show the total dient I H 20
debt view.
3.124 I To be able to adjust errors in a practical way. To do this the system must provide highly I H 20
automated facilities
3.125 _I Toe able to print “on demand” a valid VAT receipt i 20
3.126 I Toreplace need for Agent to physically sign a Cash Account to confirm legal H 20
responsibility with a means of “electronic signature” to confirm shortage/ surplus and
record of cash & stock held,
3.127 I Error corrections and adjustments need to be fed into the process at the same point as the I Hi 20
originating error
Outlet Liability
3201 I Outlet liability to enable clerk, outlet & cenire to have a common view of outlet lability. I A 20
Tiability data to be available quickly at all levels i 20
Providea traceable/ audit trail of transactions to confirm balance and track errors. H 2.0
‘Atstock check, a loss affects outlet liability - depending on the product & agent & client I 2.0
contract details.
3.205 I Record gains/losses by product, which enables the liability to be derived and posted toa I H 20
stock gain/loss suspense account, with a time & date stamp.
3.206 I Stock gain/losses and their quantity recognition at the outlet is ecognised/ posted at I H 20
stock declaration
3.207 _I Value at loss may be different from sales value M 20
3.208 I Report required for monitoring amendments to stock quantity for control purposes. M 2.0
3.209 I Discrepancy arising from stock declaration is not immediately converted to cash M 20
equivalent gain/loss in suspense account, (defined by business rules - product/total
value).
3.210 _I Stock check confirmation posts discrepancy quantity to stock gain/loss suspense account. I H 20
3.211 I Outlet data should also be available at a national level for client losses / provisioning and I H 0
probity purposes.
3212 I Cash declaration will be committed to CH&D before discrepancies are handled, CH&D’s I H 20
timescales to be adhered to.
‘Anti-fraud monitoring shall be system driven by exception reporting. A 20
Retail line must have appropriate authorisation routine for carry forward balances H 20
according to appropriate business rules
3.215 _I Distinct transaction types must be captured “distinctly” by the outlet system. H 20
3.216 I Combined with 3.215. H 20
3.217 I Outlets to be able to see sales and loss or gain values on stock declaration discrepancies, I H 20
so they know their lability(loss) and can investigate value discrepancies (sales)
3.218] POL needs access to liability data for control purposes - including cash which goto the I H 20
appropriate business ledgers. ? different settlement?
3.219 _I Clear set of business rules for reversals & corrections which are able to be enforced i 20
3.220_I System facilities must support putting notices to the right account - must be able to record I H 20
transactions against different owners for the same outlet.
3.221 I Swapping of agent ownership, for example, would require a special auditors code tobe I H 20
entered for changeover.
3222_I Retain accounting data at outlet and central level for 6years for legal purposes - method I 20
to be defined,
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Requirement Priority
ID Description H/MIL I Ver
3.223, I Torecard errors identified by verification routines or by other system procedures (eg. I H 20
remittance errors/ stock take discrepancies) such as to create consistent views of the
liability of agents to the Post Office for those errors and of the Post Office to its clients by
product.
3.224 _I To account for errors by date of original transaction as well as by posting date. H 20
3.225 _I To provide a means of adjusting errors that is compliant with the operating process. H 2.0
3.226 I To provide an “invoice” to each agent/ manager for the net amount due/ to be paid, H 2.0
itemising al errors.
3.237 _I To be able to re-instate “excused” net losses i
3.228 I Analysis will be carried out to restrict items put to suspense A
Verification
3.301 I Any paper docaments that have to leave the office are checked appropriately tosystem I H 20
information before despatch.
3.302 _I Verify at front-end rather than confirm against paper stream in verification centre. ii 20
3.303 I Where outlet system summary data is found to have errors,(e.g, batch header totals on I H 2.0
cheques) appropriate correcting transactions should be raised and the summary data
regenerated.
‘Glient Settlement Inpayment
301 _I Align settlement for inpayment to PON cleared funds, asa minimum. Payment date for I H 20
settlement should be based on transaction date, method of payment and client contract.
3.402] Consolidate all payments that fall due on the same date and maximise payment periods I H 20
for all payment types within business rules and according to contracts.
3.403 I Settlement. Commission will need to be segregated from client settlement although the I H 20
client may require that they are combined for payment purposes, but not before
ledgerin
Glient Settiement Outpayment
3.501 I Settlement. Require system facilities to make estimation for outpayments more accurate I H 20
and automatic.
Glient Settlement Inpayment and Outpayment
3.601 I Transaction reports of sufficient detail to support client contracts will be available to H 20
support client settlement.
3.602 _I For settlement, single stream of data to provide client transaction reports and in 20
payment/collection data.
3.603 I Settlement should be driven out of a single system which provides consistent data H 20
(product, timing, quantity, value, outlet) to satisfy the client that all transactions have
been reported accounted for and paid /collected
3.604 I Method of payment analysis for settlement and client negotiating purposes. i 20
3.605 I Transaction feeds from other sales channels will be required (other than PON H 20
EPOS/Horizon) for the integrated system (MIS/Ledger) to power settlement. (MI, outlet,
remuneration, audit and the records from outlet liability will also be driven from the
integrated system.
3,606 I Settlement. Amend client contracts to enable new setilement process to work more H 20
efficiently (Le. actual data will be available earlier than before). This is an issue for
migration.
3.607 I To enable automatic billing of clients for “management fees” where these are volume I H 20
related.
3,608 _I To enable client balances to be ascerlained by clients’ accounting periods. i 20
3.609 I The system should be capable of dealing with a large number of clients and beable to I H 20
differentiate between different products held in the same PLU-—such as local authority
products.
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2102/2001
Requirement
Priority
ID
Description
HML
Ver
3.610
Ability to identify amounts owed to and from clients by product so that payment can be
made or received. To achieve this it may be necessary to maintain separate accounts for
each client product in the purchase and sales ledger.
H
20
End to End Process
3701
‘Common, agreed trading day rules between PON and clients
control procedure to ensure consistent data
coding of exceptions (errors)
control on these exception to ensure progress ~ reports & messages
3702
Exception list must be analysed by current day, cumulatives & age of entry
3.703,
100% of transaction to be harvested by the end of the day after the transaction,
3.704
Where data Collection/ packaging/ transmission exceptions are identified, they should be
actioned” at the appropriate point (subject to authorisation) in the data flow N.B. not
necessarily the data source.
* auto invoked or provided & authorised by control body.
zI=]2I
3705,
Controls must ensure that although client data may have errors they will be corrected
over time, Each stream must have its own in-built reconciliation points (do not reconcile
between process streams)
Integrity checks should be appropriate to process - don’t build complexity into process,
so that you are over-reliant on integrity checks (which may fail).
3.706
Move to Human Computer Interface (HCI) industry standards
2.0
3707
‘Centre must be aware when the outlets are not in touch (heartbeat), and this must be
communicated to the outlet. In addition the outlet system must be able to inform /
prompt the counter staff that there is no communication with the centre.
2.0
6-2:26.4.9 Descriptions of Functions
Accounts and Settlement
‘Agent Remuneration The value of payment made fo agents for transactions
undertaken.
Liability Statement of eash, stock and other value,
fully auditable.
Create and Verify Branch ‘A continuous view of what a branch actually has in terms
This would be derived from sales transactions, cash and
stock movements and any losses or gains. This must be
Report Customer Data to ‘Automatically transmit
Client
jent required data to ehients
‘Summarise Transaction Data I Automatic activity of summarising all data items
transmitted prior to psosting to ledger entries
this may be a net payment where the client product
includes outpaymenis
Client Settlement to Client I Make payments to elients to pass on the value of their
impayments taken over the branch counters. In some eases
Identify Settlement Terms Check client contract to determine what the payments,
terms are, This may include such things as timings,
I method of payment, whether to use estimates or act
Caleulate Payment Due to the format required to make the settlement.
Client on Client Data
summarise Sales and Take the source data from the elient and summarise into
Amounts due. This may be because the actual data
time to make the settlement on actuals,
Settle on Fstimated Settlement I Use estimated transaction data to ealeulate the settlement
not available in
imate is based
on historie trends, known seasonal factor, growth factors
and price changes. Normally agreed with elient in advance.
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‘Compare Settlement Data
with Transaction Data
If settlement is based on a source other than Horizon data
the settlement is later compared with the Horizon
transaction data. The resultant difference may be between
estimates and actual or Horizon data and the alternative
data source.
Resolve Discrepancies
Differences between settlement data and Horizon data
need to be resolved by determining which stream is
correct
Subsequent corrections will be made to the transaction,
data stream or the client data stream dependent on cause. If
cause not identified ean result in losses or gains to the
business
‘Authorise , Make and Account
for Payments
Client Settlement From Client
Receive payments from clients who pass on the value of
outpayments made on their behalf over the branch counters
for example DWP.
Tdentify Settlement Terms
Estimate and Agree Amounts
Due From Clients
I Ideally settlements for outpayment products are prefunded
Cheek the client contract to determine what the payment
terms are.
Includes timings, method of payment ete.
so this will often involve using estimates in the first
instance. This is negotiated and agreed with the client
based on historical trends and current market.
Request Payment From Client
Usually in the form of a letter or statement of account
rather than an invoice which shows the next month’s,
agreed estimates.
Check Amounts Have Been
Received
Client Cashier is notified of amounts to expect into the
bank account and monitors whether the amounts have been
received as agreed. If not the client is contacted to request
settlement.
Compare Settlement Data with
Transaction Data
If settlement is made based on a souree other than Horizon
data the settlement made is later compared with the
Horizon transaction data. The resulting differences may be
between estimates and actual or Horizon data and the
alternative data source.
Resolve Discrepancies
‘Verification
business
Differences between settlement data and Horizon data
need to be resolved by determining which stream is
correct.
Subsequent comections will be made to the transaction
data stream or the client data stream dependent on cause. If
cause not identified can result in losses or gains to the
‘Automated Reconciliation
Derived from transaction data, This ean be an automatic
verification such as DRS and AP but will also include
manual verification for clients such as AON and Camelot.
This will also include input of MOD eash accounts and
may include any rump of non-tokenised products.
May also be used to verify effectiveness of validation at
the counter on a sampling basis.
Cheque Verification
Back office process to verify value of cheques despatched
to payment processing centre
Rota Checks Verification against streams of data for non-tokenised
products. This is a sample check not a full check and is
based on Business rules.
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Transaction Data Set Verification that the data for the transaction conforms to
Criteria Checks
the criteria defined for the product
jon Activity Level
Investigates patterns of transactions that are outside the
norm of pattems for the branch.
Investigate Transaction Data
Ability to enquire back fo individual transactivon data
level to answer customer enquiries or further progress
verification actoivities to this level
Debt Recovery
‘Assess Actions on Debt
I The decision point to ascertain the debt route taken. The
decision will be based on value, age ete
Simple Recovery
Recovery of debt simply by contaeting the agent and/or
client and requesting payment
Sell The Debt
Debt factoring which is currently not used.
‘Make Provision for Bad Debts
Analysis of total debt and creation of provision dependant
on anticipated recovery rate.
Write OF The debis, which are deemed irrecoverable, and therefore
the value is written off through the ledgers system.
Tnitiate Recovery Through I An agent or employee may agree to recovery of debt
Payroll directly from their salary. For agents this would be via
agent remuneration and for employees via HR/SAP
payroll.
Defer The Debt
‘The ability for the agent to defer debt for a period of time
or until the branch is sold.
(Criminal and Civil Litigation
Investigations
The point at which it is deemed unlikely that the agent will
repay the debt without using the court systems. At this
point the agent will be requested
Produce POL Sub Ledgers
Produce Client Ledger
Produce Branch Liability
Ledger
I Created using transaction data from Horizon and
I Created using transaction data to create branch liability.
settlement data to ereate liability to elients as a
vonsequence of transactions undertaken at the branch
This would inelude any items in the branch suspense and
error notices.
Produce Personal Agent
Ledgers
This would encompass the branch liability and would also
include items of debt which are not as a consequence of
transactions undertaken at the counter e.g. licence fees and
security sereens.
Produce Cash and Bank
Ledgers
Balances, payment and receipt of eash, and bank account
transactions
Branch Liability Management
Investigate Suspense Items,
Investigations to establish cause of suspense items. This is
performed on a risk management basis.
Investigate Diserepancies
Investigation of items identified. This would accumulate
any necessary evidence for future eriminal investigations
Tnvestigate Unusual Outside
Nomms) Values in Branch
Liabilit
This would highlight unexpected values such as stock
inflation. There may not be a known error but may indicate
and expected/anticipated error.
Branch Closing and Transfers
Identification of branch closure and therefore acceleration
of error analysis and debt recovery for the specific branch.
Ledger Profit and Loss Items
from Branch Accounts
This would include items from branch transactions which
impact the business P & L account eg eash sales from
postal orders and bureau
Produce Borrowings and
Investments Ledger
This would include any borrowings, including DTT, and
investments
Produce Stock Ledger
This would only include real stock such as retail items
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Produce Nominal Ledger This activity is the end product ofall the business ledger
entries
Reconcile, Consolidate, This is the overall process undertaken to verily the ledger
Review and Report and consequently support the ledger items.
Liquidity and Funds ‘Analysis of PO Lid daily eash requirements. Twice daily
management reporting to Group for investments/borrowings
requirements
Business Funds Analysis
Client Funds Analysis
Daily Funds Requirement
Forecast Performance
Analysis
6.4.10 Information Usages
‘The information usages of the lowest level processes are identified in Appendix A
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6.5 Stock Management
Aimnsc Sock Orcas
earch SackHolirg
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‘SaxkDepactes 2
ka ranch eck Rec
StxkDespaes
GakMoemb: Racers
SockMunaenes, Watauga Ditton
‘iggeonc Faire Sarcing Orcas
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6.5.1 Branch Stock Management
Stock Aguaments
‘Stock Receives
‘Gah Um genthough Tranmcvons
Branch Stocking
Branch Steck Holding Paicy
Local Recuiremert Knowledge
Value SockOwer
StockMovernent Roques Consonant Nowe
Stock Despatches
Branch Back Otfee I
Stock Dewpatchee
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6.5.2 Central Stock Management & Replenishment
Rrodkt Merketng Knowledge
Flannned Stock Orders
tie Stock Holang Foley
Valve Stock Order
Rrodtct Ostributon Poices
rehouse Stock Holding
Recep’ Dscrepency Erors
Buk & Out Stock Recepts
Stock Manager inefoor and Dstrbuton
Stock Holdng normation
‘Stoek Moverent Requests
ty Managed Supplier Orders
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Business Requirements
COMMERCIAL IN CONFIDENCE
Study
01
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6.5.3
Business Design Assumptions
65.3.1 It is assumed that items suitable/unsuitable for local destruction of stock at
the outlet will be identified within reference data. Those items unsuitable for local
destruction will be retumed to the central warehouse for destruction. Reference
data will define, for each product identified as suitable for local destruction,
business rules for; maximum amounts of local destruction (by volume, by value,
in a single destruction transaction and over a period, by outlet risk classification
(high risk/medium risk ete), stock values (for inclusion in outlet liability
statement), roles at outlets allowed to utilise local destruction functionality,
acceptable reason codes for destruction, whether or not serial numbers should be
entered.
It is assumed that these rules will be applied locally at the outlet at time of
entering stock destruction information. It is assumed that users will need to re-
affirm their identity (retype their password) to use the local destruction
functionality. It is assumed that the data as to who destroyed what, for what
reason, and when will be stored for subsequent analysis/auditing.
Its assumed that only held stock ean be destroyed (no negative stock) and that
stock balances, and therefore outlet liability will be updated as a result of stock
destruction.
6.5.3.2 It is assumed that the process for stock control will be centrally driven.
65.3.3 It is assumed that it is the agent’s responsibility to make cash and stock
declarations.
65.3.4 It is assumed that the current model for Stock Units is to be retained to
reflect the fact that individuals are responsible for stock items.
65.3.5 It is assumed that outlet stock position will be calculated locally and
reported to the centre.
65.3.6 It is assumed that the central stock management process will notify the
agent concerning the proposed stock ordering position. The agent will then be
required to make any necessary adjustments and confirm the resulting order. This
is in principle existing functionality, except that the request to vary the planned
order is currently by telephone. It is assumed that extension to allow display of,
and request amendment to planned orders is required.
65.3.7 It is assumed that every stock item (e.g. individual stamps) consumed/sold
as part of a transaetion, will be identified in transaction data and used to maintain
accuracy of stock tracking,
65.3.8 To support stock movements between outlets, it is assumed that the central
stock management process will request the stock from the outlet and the resident
agent will prepare a separate pouch for onward transmission of the stock.
65.3.9 It is assumed that adjustments, following identification of loss of valued
stock (¢.g. vouchers), are performed locally in the outlet via ereation of adjusting
transactions. Some items may have a liability value, which is different to their sale
value, Where a loss occurs in this instance the liability value will be identified as
such and included on the outlet liability statement.
BD/BRD/O17
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6.53.10 It is assumed that the current, human processes within outlets for
“borrowing” stock items (between stock units) to complete a purchase are
sufficient for needs and that there are no further requirements for managing those
(ie. it is the agents responsibility to reconcile stock holding between stock units
within the outlet). It is assumed, however, that at the time of stock
declaration/outlet liability statement posting, negative values for stock holding at
the outlet level would be flagged as unacceptable and that other aetions would be
required (remitting in of received stock/ stock found declarations) before these
actions could be completed.
653.11 It is assumed that the current stock ownership model remains in force and
that stock is owned by Post Office
6.5.3.12 It is assumed that facilities to handle stock discrepancies will provide
support to the following processes;
= Outlet may identify a cash/stock diserepaney as part of outlet liability. He
may make this good himself or (if disputing) identify as an unidentified
discrepancy in the outlet liability. This diserepaney will be ledgered,
‘= Investigations may take place centrally and with outlet to determine if the
discrepancy is true or otherwise. If it is agreed that the outlet is liable then a
correcting transaction will be generated by Debt Recovery for automated
acceptance by the outlet. This transaction will be flagged as “pending
acceptance by outlet” . The automated acceptance by the outlet will update the
outlet liability which, in tum, will be flagged in the outlet liability statement
which, in turn, will remove the centrally flagged “pending acceptance by
outlet”. The ledgers will be updated aecordingly. If for any reason the outlet
does not accept the correcting transaction, then the outlet liability will not be
updated and the central flag will remain alerting the centre that non-aeceptance
has taken place and needs to be pursued.
6.5.4 Previously Identified Requirements
The following requirements are still valid and are focussed mainly around Branch
Stock Management in addition to other requirements which have emerged from the
workshops.
Requirement Priority
ID Description HMIL I Ver
STOCK MANAGEMENT
General
2.003 _I Stock availability requirements will vary by items, products and potentially outlet types._I H 20
2.004 I An up-to-date inventory position must be available to the outlet at any time. H 2.0
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Requirement Priority
ID Description HWMIL I Ver
2010 _I New consolidated stock position to be made available fo outlet manager by product i 20
2.011 _I The sales process will decrement stock at the item/ serial number level H 20
2.012 I When selling from common stock, accountability will be maintained by the system, H 20
2.013 I When transferring stock between positions, the system will prompt the receiving till t» I M 20
book itin
2.014 _I Receipts will be printed for completed transfers M 20
2.015 _I The outlet system must support the use of virtual stock H
2.016 _I Serial numbers should be allocated from a common stock unit for virtual stock H 20
2.020_I A hierarchy of access controls to system functions will be required. M 20
2.021 I Administration processes need to have varying levels of prompts and controls M
2.022 _I Stock may need to be activated at the point of sale M 20
2.023 I Commemorative coins will be treated as discrete products M 20
2.024 I Signing-on to and signing off from tills must be quick H 2.0
Inward Orders
2.100 _I Records will be produced for each inward order activity i 20
2.101 I The system must support the concept of planned orders for delivery of cash/stock to the I 20
outlet
2.102_I Inventory items will be replenished by denomination H
2.103 _I All inward orders will include details of the content and planned delivery date H 20
2.104 I Inward orders may only be raised for inventory items that can be sold at the outlet i 2.0
2.105 _I The outlet must have the saa to uni ina ‘orders i 2.0
2108 I The outlet must have the facility to raise an inward order H 20
2.109 __I Messages between outlets and Central Inventory Management must be timely H 20
2.110 I Product substitutions must be highlighted H 2.0
2.111_I The date ona planned order cannot he changed by the outlet M 2.0
2.112 _I Revised delivery dates must be transmitted to the outlets H
2.113 _I A confirmation of order details will be transmitted to the outlet prior to despatch # 20
2.114 I Order confirmation messages must be confirmed as read at the outlet M 2.0
2.115 __I Tokens will be used for all inward orders H 2.0
2.116 I Each order must contain a picking list/delivery note giving the order number and H 20
content details
217 I Goods receipt token swipe must be linked to the delivery notification message at the H 20
outlet
218 _I The receipt process must be controlled H 20
2.119 I The delivery outlet will be verified at receipt H 2.0
2.120 _I The order details will be automatically booked into the outlet on delivery H 20
2.121 _I The carrier's driver will be given a physical receipt H 2.0
22 I Confirmation of the order receipt will be transmitted to Central Inventory Management I H.
2.123 I Unchecked orders will be recorded with a holding status A 20
2.124 _I All inward orders must be counted by the end of the trading day H 20
2.125 _I Outlets will be lable for discrepancies in unchecked orders M 2.0
2.126 _I Must be able to sell from an unchecked pouch H 2.0
2.127 I Checking of receipts will be aided using prompts M 2.0
2.128 I Pouch contents will be checked against the system H 2.0
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Requirement Priority
ID Description HWMIL I Ver
2.129 _I Token technology will be exploited to the full to aid order receipt checking M 2.0
2.130_I Partial order receipt checks will be allowed M 2.0
2.131 _I Inward order discrepancies will be transmitted to Central Inventory Management H 2.0
2.132 I A facility will be available to correct order checking input errors M 2.0
‘Outward Orders
2.300 _I Records will be produced for each outward order activity A 20
2.201 I Central Inventory Management will plan return orders from outlets H 2.0
2.202 _I Replenishment planning will include rules for ‘out-of-date’ recalls H 2.0
2.208 I Stock returns to 3" party suppliers will be co-ordinated through Central Inventory H 20
Management
2204 I Planned return order details will be transmitted to the outlet by Central Inventory H 20
Management
The outlet will be able to change planned orders within a defined timescale ii 20
The date on a planned return order cannot be changed by the outlet M
The outlet will have a facility to raise return orders H 20
The outlet will inform Central Inventory Management of unscheduled return orders H 2.0
“Messages between outlets and Central Inventory Management must be timely H 2.0
Central Inventory Management will inform the outlet of delivery dates for outlet H 2.0
requested return orders
2211 _I The process for returning nole/ coin bag shortages and surphises must be simplified. M 20
2.312 _I The frequency of return of inventory items will be governed by business rules M
2.213 _I Token technology will be used where possible to aid picking and packing, H 20
2.214 I The system will provide help during the picking/ packing process to prevent packing I M 20
together of incompatible items
‘When an order is packed, the inventory items will be changed to a holding status a 20
“Held! orders will be highlighted by prompts after a defined period of time M 2.0
‘Order handover from the outlet to the supplier will be tightly controlled H 2.0
Central Inventory Management will be informed when orders are despatched M 2.0
Cash Handling & Distribution will open cash returns within the next working day H 2.0
Stock returns to Hemel and other suppliers will be opened within the next working day _I M 2.0
Despatch of outward orders will not be limited to a single til M 2.0
‘Outward order discrepancies will be communicated to the outlet by Central Inventory I M 20
Management
Outlet to Outlet Orders 20
2,300 _I Outlet to outlet orders will he allowed subject to authorisation M 2.0
2.301 I Business rules will determine whether the outlet to outlet orders can take place M 2.0
2.302 I Outlet to outlet orclers will be controlled via the Central Inventory Management system I M 2.0
2.303 I Outlet to outlet order messages will be sent to Central Inventory Management M 2.0
2.304 I Where possible, the outlet system will be used to enforce rules for outlet to outlet orders I M 2.0
2.305_I Transport controls are required for outlet to outlet orders M 2.0
2.306 _I Transfer from an outlet to an outlet that cannot sell the inventory item will not be allowed I H 2.0
2307_I Error rules for outlet to outlet orders will be as for standard inward/ outward orders M 2.0
‘Stock Declaration
7500_I The stock declaration system will support industry best practices A 20
72.501_I A stock check may take place at any time, on any inventory items H 20
2.502 I The outlet will have the facility to perform a stock check ona single product or a ange of I H 20
products
72503 _I A stock check may not begin until all relevant inward orders have been opened and H 20
counted
2504 _I Stock declarations will be system driven to permit tracking from sales through stock int 20
2.505 _I Stock inventory items will be counted by quantity or volume, not value. H 2.0
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Requirement Priority
ID Description H/MIL I Ver
2.506 I Inventory item serial numbers will be recorded during the stock declaration process H
where appropriate
2.507 _I Postal fee value data will not be visible during, a stock check M 20
2.508 I Stock declaration differences will be displayed, and prompts/assistance given to aid M 2.0
resolution
2509 _I Stock declarations will be confirmed /authorised using a PIN or password i 20
2.510 I Stock declaration discrepancies will be reported to Central Inventory Management and I H 20
outlet liability
2511 _I The interface to Central Inventory Management for stock declarations must be consistent I Hl
with CH&D requirements
25I2_I The system must be capable of instructing Outlets to return excess stock a
2513 _I Stock declaration records should be held electronically M
Local Destruction/ Write-Off
2.600 _I Outlets will have the ability to locally destroy certain types of stock i 20
2.601 _I The local destruction process must be fully auditable H 2.0
2,602 I Details of local destruction and local write-offs will be passed to outlet lability and H 20
Central Inventory Management
Product Withdrawal
2650 I Stock Management of product withdrawal and product introduction is only required for I HL 20
inventory items only
2651 _I Suppliers must be capable of creating flexible withdrawal schedules for products i 20
2,652_I The date after which stock has no value wil be set by product, M 2.0
2.655 _I The distribution of product withdrawal messages to outlets must be mel H 2.0
Product Introduction
2.675 _I Time to market must be reduced, but without impacting the current fast-track process I H 20
2.676 I Existing product data will be used to determine the locations where new products will be I M
introduced
2.677 _I Suppliers will be given sufficient time to introduce products to outlets it 20
2.678 _I Reference data must be available at the outlet by the time the product is delivered H 2.0
2.679 _I Product activation start/end dates will vary by outlet or outlet type H 20
Revaluation/ Repricing
2.700_I Revaluation (repricing) can be done on any day of the week M 20
2.701_I Revaluation (repricing) must be complete in time for the start of a trading day H 20
2.702 I The system will prompt the outlet to perform a stock check the day before the revaluation I H 20
(repricing)date
2703 _I The outlet system will automatically re-value (reprice)all stock on hand and record H 20
accounting contras
2.704 _I The revaluation (repricing) process needs to be tolerant of failures int 20
2.705 I Outlets failing to count their stock will be liable for any revaluation discrepancies H 2.0
2.706 I Accounting rules will be used to manage stock in transit at the time of revaluation H 0
Miscellaneous Adjustments/ Burglaries) Robberies
2.750_I A facility to record miscellaneous adjustments (e.g, following a burglary) is required ii 20
2.751 I Details of Miscellaneous Adjustments will be passed to Outlet Liability and Central H 2.0
Inventory Management
Reporting/ MIS
7,800_I Must be able to report stock levels by product by outlet A 20
2.801 __I Lost sales opportunities need to be captured and analysed M 2.0
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Requirement Priority
1D __I Description HMIL [Ver
2.802 I It must be possible to reconcile the movements of secure stock throughout the network at I M 20
the lowest level
2803 _I The cost of replenishment needs to be calculated i
2.804 I Undelivered orders must be reported H 0
2.805 I Outlet to outlet orders will be monitored H 2.0
2.806 I Any Horizon tll being reported on must not have its performance adversely affected H 2.0
2.807 _I It must be easy to isolate and print suspect transactions on the transaction log. H 2.0
2.808_I End of day reporting must be automated H
2.809 I Reporting processes must be efficent H 20
5.5 Descriptions of Functions + — (Formatted: Bullets and Numbering i)
6.5.6
Branch Stock Management
Record and Monitor Stock
Holding
Update of stock position through either sale of stock item
or receipt/despatch of stock rems or local destruction of
stock
Stock Take and Stock
Declaration
Declaration of stock position at item level by comparing
actual stock with system held position
‘Assess Planned Order
Branch review and amendment if required of scheduled
order
Receive and Verily Stock
Delivery
2-phase process — at receipt of pouch process outputs
recognition of amount of stock assumed to be as on
consignment note to be recorded on branch accounts.
At some time later the verification/acceptance of amount
take place.
Despatch Stock
Destroy Stock
Central Stock Management &
Replenishment
[Outward remittances being retumed to the stock centre
I provided audit trail is maintained
Local aetivity, driven by business rules, allowing the
branch to destroy stock items rather than returning them
Generate Planned Stock
Orders
Centralised calculation of expected orders for branches for
given time period using historical data
Validate Stock Orders
Sense check of stock orders prior to despatch to warehouse
POL Inventory Management
‘Warehousing and Distribution
I monitoring of stock levels nationally
“Management of stock inventory ine redistribution of stock,
Role of Hemel Hempstead
‘Stock Check Transaction
Stock
Declaration of stock position at item level by comparing,
actual stock with system held position
Transaction Stock Order
Processing
Central Transaction Stock
Management and
Replenishment
Information Usages
‘The information usages of the lowest level processes are identified in Appendix A
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6.6 Management Information
Management Information Requirements were identified throughout the requirements
analysis and are summarised in this section.
6.6.1 Selling Products and Services, including Client & Customer
Aftersales Service
MI needs were documented from the Sales workshop as below:
Sales
+ Outlet Sales
— Average transaction times
— Product profitability
— Product performance
— Campaign management
— Authorisation Response Times
~ Basket Analysis
— Time of day transactions take place
— Sales incentivisation
* Verification
— Numbers of errors from verification
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6.6.2
Cash and Funds Management
BD/BRD/O17
01
2102/2001
MI needs were documented from the Cash Management workshop as below:
Cash Management
+ Central Cash management
— Method of payment analysis by product
— Cash ledger analysis
— Office closures through cash outs
6.6.3 Accounting, Reconciliation and Settlement, including Debt
Recovery and Branch Control
MI needs were documented from the Accounting and Debt Recovery. workshop as
below:
Accounting & Debt Recovery
* Outlet Liability
~ Value of Debt
= Suspense Value
Number/indebtedness of problem branches
— Type of liability
— Performance Measures
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Accounting & Debt Recovery
* Debt Recovery
— Debtor days
~ Total value of trend and debt
— Debt written off
~ Aged debt analysis
~ Type of debt
— Interest cost
Accounting and Debt Recovery
* Client Settlement
— Creditor days
~Total value of creditors
- Value written off
— Ratio of cash creditors
— Interest benefits
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Version:
BD/BRD/O17
01
2102/2001
Accounting and Debt Recovery
Produce Ledgers
—Days to close
~—Timeliness
— Clean audit
—Value of unreconciled items
6.6.4 Stock Management
MI needs were documented from the Stock Management. workshop as below:
Stock Management (cont)
+ Warehouse
— Planned demand versus actual demand
— On time in full
* Order picked when it should be , with all the
items it should have
— Stock holdings and amounts/values of
stock adjustments
— Stock availability
— Balance Sheet reductions
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Stock Management
* Branch
Time between receiving order and booking
itin
—Number of specials dispatched to each
outlet
— Customer satisfaction questionnaires used
to measure despatch accuracy/timeliness
6.6.5 Operational MIS Reporting Requirements
a Sales MI — at COO level
© National Sales Report
"= Weekly - Monday for sales to previous Sunday
= Summation of Products - Not All Products
o Income Generated
* Based on Notional Income Factor
¢ Based on ABC model
© National and General Manager Level of Granularity
© Drill Down Facility Required to GM Level
a Sales MI — at General Manager level
© National Sales Report
= Weekly - Monday for sales to previous Sunday
= Summation of Products - Not All Products
o Income Generated
= Based on Notional Income Factor
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* Based on ABC model
© National, Segment and Head of Area Level of Granularity
© Drill Down Facility Required to RLM Level
a Sales MI at Head of Area level
© National Sales Report
* Weekly - Monday for sales to previous Sunday
* Summation of Products - Not All Products
o Income Generated
* Based on Notional Income Factor
* Based on ABC model
© General Manager, Head of Area Level and Regional Line Manager
Level of Granularity
* By multiple partner e.g. Sainsbury, Dillons, ete
© Drill Down Facility Required
* to Branch Level for Directly Managed and Commercial
Branches
= to Post Code area for Community Branches
a Sales MI -at Regional Line Manager level
© National Sales Report
= Weekly — Monday for sales to previous Sunday
= Summation of Products - Not All Products
o Income Generated
= Based on Notional Income Factor
¢ Based on ABC model
o Head of Area, Regional Line Manager and Branch Level of
Granularity (for Directly Managed and Commercial Branches — Post
Code Area Level for Community Areas)
© Drill Down Facility NOT Required
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a Sales MI — at Branch level for Directly Managed branches (of which there are
581)
© At Branch Level
© National Sales Report
* Weekly ~ Monday for sales to previous Sunday
* Summation of Products - Not All Products
o Income Generated
* Based on Notional Income Factor
* Based on ABC model
© Drill Down Facility Required
= By product
+ By Clerk (not till)
© Sales by Timeline (15 minute slots)
+ Workloads
* Average Transaction Times
= By Product
+ By Branch
= By Clerk
* By Products
* By Mix of Products
a Sales MI - at Branch level for Commercial branches (of which there are
approx. 8000+)
o AtBranch Level
* By clerk TBC
© National Sales Report
* Weekly ~ Monday for sales to previous Sunday
= Summation of Products - Not All Products
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o Drill Down Facility Required
= By product
o Income Generated
= Calculated by numbers of transactions
a Sales MI — at Branch level for Community branches (of which there are
approx. 10,000)
© AtBranch Level
© National Sales Report
= Issue over Frequency (and period for which) required
* Expected to be (on demand)
© Drill Down Facility Required
* By product
a Cash MI at Branch Level
o AtBranch Level
o Non-Conformance
* Specials
o Holdings
= Movements
a Cash MI at Regional Line Manager Level
o As Above
© Non-Conformance
* Holdings against Targets
* Specials
* Non-Despatches
+ Non-Declaration
= Cash-outs
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o Holdings
= Movements
© Summarised to RLM level
a Cash MI~ at Head of Area Level and above (GM & COO)
© As Above
© One level below
© Summarised to their level
a Stock MI- at Branch Level
o Holdings
* By products
= Movements
o AtBranch Level
o Non-Conformance
* Movements
© See outputs from Stock Workshop
a Stock MI- at Regional Line Manager Level
o As Above
© Non-Conformance
* Holdings against Targets
* Specials
* Non-Despatches
+ Non-Declaration
= Stock-outs
o Holdings
* Movements
o Summarised to RLM level
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a Stock MI - at Head of Area Level and above (GM & COO)
o As Above
o One level below
o Summarised to their level
a Profit and Loss MI — at Branch Level for Directly Managed branches
© Income
© Managed Costs
© Other Costs
© Performance Ratios (£/Sale)
a Profit and Loss MI - at Branch Level for Commercial & Community branches
o NOT required
a Profit and Loss MI — at Regional Line Manager Level
© Summaries of ALL of above
= Byarea
0 Drilldown by branch
a Profit and Loss MI — Head of Area Level and above (GM & COO)
© Summaries of above to their level
© Drilldown to one level below
a Accounting MI - at Branch Level for all types of branches
o Summaries of transactions
© Stock levels and movements
o Cash levels and movements
© Methods of Payments
© Error Notices
© Discrepancies
* By clerk (ideally)
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* By stock unit (otherwise)
o Debt Items
a Accounting MI — at Regional Line Manager Level
© By branch
o Debt
o Non-conformance
= Recovery
= Stock Mgmt
= Cash Memt
* Frrors/Discrepancies
a Accounting MI — at Head of Area Level
o Debt
o Non-conformance
= Recovery
= Stock Mgmt
= Cash Mgmt
= Frrors/Discrepancies
© Summarised to RLM level (+ post code levels for Community Socials)
a Accounting MI — at General Manager Level
o Debt
o Non-conformance
= Recovery
= Stock Mgmt
= Cash Mgmt
* Frrors/Discrepancies
o Summarised to HOA level
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a Accounting MI — at COO Level
o Debt
o Non-conformance
= Recovery
= Stock Memt
= Cash Mgmt
«= Frrors/Discrepancies
o Summarised to GM level
a Non-financials MI — at Branch Level for Directly Managed branches
© Mystery Shopper
© Staff Hours
= Overtime
= Standard time
= Absence
* Sick
© Other
= Training time
© Counter Serving Hours
© Multiple AP Transactions
o Client Related Errors
© People Satisfaction Tracking
© Customer Satisfaction Tracking
° Office Closures
= Reasons
Force Majeur
¢ Network reinvention
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© Re-openings
a Non-financials MI — at Branch Level for Commercial & Community branches
o Mystery Shopper
© Counter Serving Hours (if paid for)
© Client Related Errors
© People Satisfaction Tracking
© Customer Satisfaction Tracking
© Office Closures
= Reasons
¢ Force Majeur
Network reinvention
© Re-openings
a Non-financials MI - at Regional Line Manager Level
o As for branch level summarised up to RLM level with drilldowns to
branch level
o Multiple AP transactions for RLM of Community & Commercial
branches
a Non-financials MI — at Head of Area Level
o As for RLM level summarised up to HOA level with drilldowns to
RLM level
a Non-financials MI - at General Manager Level
o As for HOA level summarised up to GM level with drilldowns to HOA.
level
a Non-financials MI - at COO Level
© As for GM level summarised up to COO level with drilldowns to GM
level
6.6.5.1 Costs Definitions
© Direct Costs
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fs BD/BRD/O17
sion: 0.1
2102/2001
© Indirect Costs — info needs
= Stock
© Standards/Specials
© Cost to provision
= Cash
* Holdings
* Standards/Specials
© Overnight holdings
© Cost to provision
= Accounting
© Errors & Associated Penalties
© Horizon Costs
= Equipment
= Overheads
© Depreciation
© Controllable Other Costs
Other MI Requirements — to be defined
© League Tables ~ Rankings
© Migrations of Sales on Office Closures
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Ref: BD/BRD/O17
2 Ol
Date: 21/02/2001
6.6.6 Previously Identified Requirements
‘The following requirements are still valid in addition to other requirements which
have emerged from the workshops.
Requirement Priority
ID __I Description HMI. _I Ver
REPORTING
TOO1 I Outlet daily sales by Stock Unit in 20
4.002_I Outlet daily sales by clerk i 20
4.003 I Outlet daly sales by time H 2.0
41004 I Outlet transactions 1 20
4.005 I Outlet Daily Sales i 20
006 _I Outlet Daily Sales by Product i 20
4.007 I Outlet Daily Sales by Counter i 2.0
£008 I Outlet Product Stock Levels, i 20
£009] Outlet Stock Taking Report i 2.0
F010 I Outlet Stock Count Forms, i 2.0
FOU I Outlet Cash Report i 2.0
4012 _I User Session Reporting i 2.0
4013 _[ Outlet Batch Control Total i 2.0
4.014 I Outlet transactions making up control total i 2.0
O15 _I Report expected outlet events which have not occurred 7 2.0
4016 I Report future outlet events int 20
4.017 _I Monitor sales against targets i 20
4018 I Report Client Product Sales against Targets i 20
4019 I Analyse product sales by all method of payments Ht 20
4.020 _I Analyse al sales by all methods of payment i 20
021_I Analyse sales of the product group mail by destination i 2.0
4.022 _I Report sales of the International Mails Products by destination and weight iH 2.0
£023_I Report on customer enquiries i 2.0
4.024 I Report-cales-in- multiple outlets Replaced by Requirement 4081
“Analyse sales by outlet within RNM cluster 7 20
4026 __I Analyse Client Product Sales in 2.0
“F027 _I Analyse customer sessions M 2.0
4028 __I Analyse Client Product Sales by Time 1 2.0
4.029 I Analyse refunds by outlet i 20
4.030 _I Analyse refunds by product M 20
4.031__I Monitor Planned Order amendments M 20
4.032 _I Monitor Inward Order Discrepancy by Outlet M 20
£033 _I Monitor inward order discrepancies, M 20
41034 I Report on local destruction and write off by product for specified products H 20)
4.035 _I Report on destruction and write off by outlet within RNM cluster i 2.0
“£036 _I Report on local destruction and write ofl by clerk i 20
£037 I Monitor transfers between outlets M 2.0
038 _I Monitor withdrawal of products i 2.0
41039__I Report stock items by serial number in 2.0
4040 _I Report on deliveries rejected at outlets for Inter Business Agreement Managers i 2.0)
“£041_I Report on stock on hand by product for specified products i 2.0
“4.042 _I Report on emergency orders made M 20
4043 _I Report on Stock-outs M 2.0
4.044 I Report effect of Past Stock Outs M 2.0
4.045__I Analyse Product Errors Ht 20
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Requirement Priority
ID Description H/MIL I Ver
4046 I Analyse Errors by Organisational Unit i
4.047 I Outlets repeatedly not returning cash/stock amounts asked for M
4048 _I Correlate usage of interactive help against help desk by user, over Hime 0
4.049 _I Monitor message failures i
4.050 I Monitor system availability i
4£051_I Amount collected per time period by product i
4.052__I Amount paid out per time period by product Ht
41053 _I Amount collected on behalf of client vs amount paid out to client a
£053 Amount paid out on behalf of clent vs amount collected from client i
£055 _I Identify unusual amounts of inpayment/outpayment sales i
£056 _I Amount collected per time period by client i
4057_I Income by client and product 1
4058 _I Report Unmatched Items i
4059 I Code Balance Analysis H
4060 _I Whole Office View i
4061_I Identify outlets meeting performance characteristics i
4.062__I Summarise amounts owed to the outlets iH
4063 _I Summarise amounts owed by the outlets H
4.064 I Pre-funding Report Ht
4.065_I Report on Transaction Numbers H
£066 _I Exceptional Item Report on cumulative error balance i
4.067 I Exceptional Item Report on cumulative error volume H
41068 I Provide information allowing the true-cost-of replenishment to be-determined Replaced by
Requirement 4.082
4069 __I Unusual Postings H 20
£070_I Analyse settlement amount by transaction i 20
L071_I Report errors under enquiry i 20
4072_I Analyse uncleared errors i 20
“4073_I Aged outlet error analysis i 2.0
41074 I Report individual errors over a certain size in 20
075 _I Report on cumulative write-off igure H 2.0
4076 _I Aged Emror Analysis i 20
4077_I Outlet Product Summary 1 2.0
4078 _I Outlet Product Transactions in 2.0
4.079 I Outlet Stock Movements i 20
4080__I Tentify Outlets with unusual cash outpayments 1H 2.0,
4.081_I Partner Reporting i 20
4.082__I Support Activity Based Costing i 20
4083 _I Provide Outlet Scheduling Information H 2.0)
4.084 I Outlet Daily Sales by Method of Payment i 2.0
1500 I Apply current Product Organisation view to historical data Ht 20
4501_I Outlet Reporting Performance in 2.0
F502 I Outlet Reporting Tailoring. i 20
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Non Functional Requirements
Although specific non functional requirements have been identified and captured as
part of the Blueprint, in general at this stage non functional requirements are
expressed only at a high level. During the Functional Specification phase detailed non
functional requirements will be developed,
High level non-functional requirements have been considered under the following
headings:
Legal
Security and Access Control
Performance
Audit
Data Integrity
Usability
Data Retention and Archiving
Printing
Within the non functional requirements section the term system is used to encompass
any computer system which meets ERA requirements
Unless stated otherwise the Horizon system must continue to meet existing non
functional requirement.
Legal
Data Protection Act
5.001 As under some circumstances personal details will be collected, the system
must comply with the 1998 Data Protection Act. The main effect on ERA is that
personal details must only be collected and stored where there is a legitimate business
purpose, used only for that purpose and the data subject" must be aware of that
purpose. Within the Functional Specification detailed requirements will cover:
© the collection of personal data;
© storage of personal data;
© confidentiality of personal data
© the rights of the individual in terms of subject access etc.
Companies Act 1985 and 1989
"Data Subject - the term is defined in the DPA but essentially the person identified by the personal details is the
data subject
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5.002 The system must take account of the Companies Act. The effect on ERA will
be that any accounting information retained within the system must meet the statutory
requirement of the Act.
Computer Misuse Act 1990
5.003 The system must take account of the Computer Misuse Act 1990 which covers
unauthorised access or modification of computer material, While this act creates a
number of offences for individuals, prevention of such offences is preferable and so
security and access control requirements will be generated.
Electronic Communications Bill 2000
5.004 The Electronic Communications Bill is intended to facilitate e-commerce
There are areas of ERA that fall into this area such as the authorisation of cash
accounts. Detailed requirements that are developed during the Functional
Specification phase will take account of this Bill.
Value Added Tax
5.005 The system must take account of the UK legislation governing VAT (Value
‘Added Tax Act 1994 etc). The potential areas of ERA affected will be that the content
of any VAT receipts, the keeping of records and the calculation of VAT.
Money Laundering Regulations 1993
5.006 The system will take account of the Money Laundering Regulations. ‘The areas
of ERA affected will be the keeping of records, and the prompting for the checks
which are required.
Security and Access Control
5.020 Only authorised users must be able to access the system.
5.021 It must be possible to determine who has been logged on to the system and so
the logging on and logging off of users is an event that must be recorded
5.022 Every user must be uniquely identifiable by the system
5.023 Every authorised user must belong to one defined user group which will:
© determine the system functions that he/she can access
¢ fora system function determine any restrictions. For example, there may be
more than one group of users who can authorise a transaction but one user
group may be able to authorise a higher value transaction than another.
5.024 The definition of user groups must be a global function. The assignment of an
individual to a user group can occur locally.
5.025 ‘The assignment of an individual to a user group is a transaction that must be
audited.
5.026 Where data is exchanged between systems, sensitive information must be
protected against unauthorised access
5.027 Access to value stock must be controlled.
Performance and Timing
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Where an individual requirement has an associated performance or timing
requirement, this is identified on the individual requirement within the requirements
catalogue. During the functional specification phase when functions are identified
performance and timing requirements will be specified where these are critical
5.040 Within the outl
of any system dialogues.
it must be possible to print without affecting the performance
5.041 Within the outlets staff need to change counter positions during the day.
‘Therefore, signing-on and signing-off at tills needs to be rapid
5.042 Within the outlets there must be the ability to connect simultaneously to
multiple external systems e.g. where different transactions requiring authorisation
from different services are occurring at the same time.
Audit
5.060 There will be an audit trail of all transactions. For any transaction as well as the
transaction details it will be possible to determine:
© who recorded it;
© authorisation details (if applicable)
© date, time and location.
5.061 No audit information can be altered under any circumstances.
Data Integrity
5.080 Wherever data is transmitted, it must be possible to prove that the data
transmitted is the same as the data received and that no records are lost, created or
amended during the transmission.
5.081 Where it is shown that data has been lost, created or amended during a
transmission the facility to correct this must exist
5.082 Where it is identified that the contents of an electronic message must be
protected, there must be a means of detecting any changes or corruption. An example
of this would be a message that related to an electronic funds transfer.
5.083 Wherever a data stream is split controls must be in place to ensure and prove no
data is lost as a result.
5.084 Wherever a balance figure exists it must be possible to demonstrate that the
balance figure is correct.
5.085 Once a transaction has been committed it must not be possible to amend it. Any
corrections will be accomplished by means of an adjustment transaction.
Usability
5.090 Any new features introduced into the POS system must be consistent in look
and feel with the agreed style
5.091 The system must provide guidance to the user and assist the user to record valid
transactions. This will be accomplished in two ways:
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© Use of prompts and interactive help. The requirements for this are
described in the requirements catalogue.
* Guiding the user through a transaction. Each choice that the user makes
when recording a transaction should constrain the next set of choices to
only those that are valid. So for example, selecting a destination for a
mails product would constrain the type of service available.
5.092 There must be a facility to suspend and resume an activity e.g. Help, CBT
Package.
5.093 There must be the facility to move a customer session to a different till.
5.094 The clerk at the outlet must be alerted to the presence of a suspended activity.
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666.7 Reference Data
Reference Data Requirements & Associations
Data Mapagement
Associated Reference Data Needs
Pre-Approved Reference Data Updates maine bee a Oem
Decision to Cancel Business Change Authorised Reference Data Changes
Verified Reference Data Infamaton
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Business Change Management
tence ta Rogunornts 8 Asocatins
anos tean ata Naas
Ref: BD/BRD/O17
Version: 0.1
Date: 21/02/2001,
eater Buss de Upitae
Deckente Cancel uahoss Charge
va
aac ara
cnn Owners
4
(esnts Caneaibuanes Charge
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6.7.2 Define & Agree Reference Data Changes
Reference Data Requirements & Associations
Reference Data and Business Rule Updates Intted Business Charge
Change Owners
Pre-Approved Reference Data Updates
‘Associated Reference Data Needs
\Verified Reference Data Information
Business Change Definiton
Decision to Cancel aL Change Authorised Reference Data Changes
I
Change Ow ners
(Change Management 277
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6.7.3 Implement Reference Data Changes
‘Authorised Reference Data Changes
Pre-Approved Reference Data Updates
Reference Data Requirements& Associations
Verified Reference Data Information
—d
Updated Ref Data
Ref, Data Vitual Team
Product Change Info
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6.7.4 Business Design Assumptions
6.74.1 thas been assumed that the Enhanced AP Handling activity will cover the
improved data capture requirements, at the counter, previously covered by ERA.
The re-architecting study however assumes; that data capture requirements at the
counter will be defined through reference data, that enhanced validation definition
will be defined through reference data, that reference data management processes
will be streamlined and that improved management of AP data through back-end
systems will be implemented.
6.74.2 It is assumed that organisational change (e.g. opening/elosing of outlets,
re-organisation of regions, impact on accounts, ete) will be managed by definition
of reference data,
6.7.4.3 It is assumed that Product reference data will define whether session
adjustments are permitted for a produet. This could occur if the Customer had
insufficient funds to pay for all transactions conducted within a session.
6.7.4.4 It is assumed that the Produet Design process will include requirements
for handling the following within reference data: Although the reference data
system and processes should cater for future reqts but not necessarily implement
them
Help and Cross-Selling prompts
Customer Service support for Product,
Details of Client associated with Product,
6745 It is assumed that user and organisational information will be
communicated and maintained by Reference Data. The reference data will provide
sufficient information to determine:
a user entitlement to access system functionality
authority required to authorise an individual's transactions
(where appropriate) e.g. payment/write-off authorisations
6.74.6 It is assumed that Reference Data will be used to communicate with E2E
systems details of changes to:
product hierarchy
2 —_ outlet status open new/elose old
mapping of outlet to a group (of outlets)
6.74.7 It is assumed that the current reference data structures are not flexible
enough to meet the requirements
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6.7.5 Previously Identified Requirements
6.7.5.1 Access
MRDS/Access/CROI0 The MRDS user interface must be accessible by any authorised user
connected to the Consignia Intranet.
MRDS/Access/CRO20 It must be possible for Post Office System Administrators to restrict
the access to reference data for any specific class of user.
6.152 People
MRDS/People/CRO10 ~MRDS must enable reference data maintenance to be brought within
the direct control of the data owners.
MRDS/People/CRO20 Users must have adequate training prior to using the MRDS and
continuing support available subsequently, to ensure that they are
properly skilled in the use of the system.
MRDS/People/CRO30_ MRDS must eliminate the need for duplicated data entry b
replacing current legacy systems (RDS and NNDB - EASE,
with a single master reference data source.
MRDS/People/CRO40_ The MRDS must allow groups of detailed reference data changes
comprising a single business change to be viewed and managed as a
single integrated business change as they progress within the
MRDS
MRDS/People/CROSO ~MRDS must enable any combination of the following events to be
active concurrently:
different users carrying out data maintenance tasks on separate
business changes simultaneously
simultaneous enquiries from other users
data extracts for data transfer to other systems
6.7.5.3 Process
6.7.5.3.1 Update
MRDS/Process/CRO10 The MRDS must provide mechanisms to allow the entry,
verification, authorisation and distribution of detailed data changes
to be permanently associated with the business change they are part
of, and with other detailed changes comprising the same business
change
MRDS/Process The MRDS must provide workflow messaging to allow any business
CRO20 change to be progressed and it’s progress to be tracked. The
workflow processes must be configurable, and it must be possible to
change the workflow life cycle and introduce new additional life
cycles.
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MRDS/Process ‘The MRDS must be provide for the allocation of reference data
/CRO3O maintenance tasks to be changed and reorganised to allow the
business to improve it’s manual processing systems, reducing
duplicated data handling and improving change implementation
times.
MRDS/Process ‘The MRDS must provide a bulk upload facility to allow the update
/CRO4O of large volumes of similar changes. A typical example would be
the linking of products to all the outlets it will be offered in.
6.75.3.2 Reports
MRDS/Process/CROSO ‘The MRDS must provide facilities for authorised users to produce
standard report sets and user defined ad hoc reports using the Post
Offices preferred reporting tool
MRDS/Process/CROS2_ The MRDS must support the introduction and amendment of
MRDS/Process/CR054
6.7.5.3.3 Mana
MRDS/Process
/CRO60
MRDS/Process
/CRO70
MRDS/Process
/CRO80
MRDS/Process
/CRO90
6.754 Content
MRDS/Content/CRO20
standard and ad hoc reports by authorised users using the Post
Offices preferred reporting tool
The MRDS must produce the Office Details Report (ODR) by outlet,
by RLM or by territory when required
\gement Information
‘The MRDS must provide information on the progress and processing
of reference data changes so that the update process can be monitored
and improved
Validation
‘The MRDS data structures must apply business rules directly to
ensure the integrity and quality of data,
‘The MRDS must provide facilities for enforcing the automated
verification of reference data changes by double keying while this
remains a process requirement. It must be possible to remove the
requirement for all or certain sections of the data if the business
process changes.
‘The MRDS must provide a single master repository for reference
data so that errors due to replicated data entry in multiple systems are
eliminated.
and Functionality
‘The data must be held in data structures that accurately reflect the
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Post Office business.
MRDS/Conten/CRO30 The closure or deletion of any reference data object in the database
must automatically cause the closure or deletion of all its children
MRDS/Content/CRO40_—' The MRDS must record all versions of reference data objects and
be able to show the changes to the object and the user who made
them The MRDS must be able to apply reference data changes
from or to specific dates and times.
MRDS/Conten/’CROSO The MRDS must be able to display all versions of a reference data
object to any authorised user, and must provide an automatic
means of comparing different versions of the object.
MRDS/Content/CR060 The MRDS must provide facilities for users to configure the
default view of reference data summary screens to allow them to
select the information they want to see.
MRDS/Content/CRO70 It must be possible for MRDS administrators to redefine the user
interface to meet the developing needs of the business based on the
structure of the database, and without the need for modification or
addition to the system software. MRDS Administrators must be
able to define search criteria for the user interface for a reference
data object on any of it’s fields
6.155 Organisation
MRDS/Org/CRO10 The MRDS must ensure that the implementation technology does
not impose technical limitations on the implementation of business
change.
MRDS/Org/CRO20 The MRDS must provide a flexible means of controlling the
passage of a reference data change through the organisation. This
must be able to be adapted to changing business organisation,
methods and priorities.
6.7.5.6 Interfaces
MRDSJInterface/CROOS ‘The MRDS must provide facilities for the automatic scheduling of
file extracts and batch interfaces, automatic generation of control
files, and the automatic transfer of extract \ interface files to the
target system. It must also provide facilities for the automatic
receipt and processing of any incoming files, including the
generation of control files. This process must be configurable.
MRDS/Interface/CR030 IThe MRDS must provide for modification of content and format of
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extracts without the need for software development and extensive
lead times,
MRDSJInterface/CRO40_ ‘The MRDS must provide automatic means by which new extract
or upload file formats will become effective at a scheduled date
and time and old interface formats will cease to be valid at a
specific date and time
6.75.7 Technology
MRDS/Tech/CRO10 "The MRDS User interface must be web browser based and
supported by a scaleable web server architecture.
MRDS/Tech/CRO20 The user interface must be dynamically generated from
information supplied by the MRDS at the time each screen is
invoked.
MRDS/Tech/CRO030 The MRDS must conform to the Consignia Strategic Architecture
at the point of delivery (the Managed Service Boundary). Within
the Managed Service Boundary the technical architecture is at the
discretion of the supplier.
MRDS/Tech/CR040 The MRDS service must be delivered from the Managed Service
Boundary to user desktops through the Consignia IT
communications network, and utilise the users normal computer
and printer equipment.
MRDS/Tech/CROSO ‘The MRDS must provide access to an MRDS reporting database,
kept up to date with the main MRDS database and accessible by
the Post Offices preferred reporting tool (currently Business
Objects) at the Managed Service Interface.
6.158 Support and Maintenance
MRDS/Support/CRO10 The MRDS must be supported throughout its life. The supplier
must provide a single point of contact or help desk for reporting
support problems, and this must be staffed during the whole of the
period that the MRDS is required to be available.
MRDS/Support/CRO20 ‘The supplier must maintain a capability to maintain and modify the
MRDS throughout its life.
MRDS/Suppor/CRO30__'The MRDS must provide functionality for Post Office System
Administrators to be able to modify the following through
configurable parameters held as part of the MRDS
user interface
search criteria on reference data objects
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extracts.
6.75.9 Testing and Migration
MRDS/TesvCRO10 All releases of the MRDS must be rigorously tested before
implementation to ensure that business objectives of the release
have been achieved, that the release is compatible with other
systems and users in the end to end automation system, and that
the new release can be implemented without disruption to the
overall service provided by the Post Office
MRDS/Test/CRO20 ‘The testing must ensure that any data that is required to be loaded
to the MRDS is verified, and included in the test programme.
MRDS/Test/CRO30 ‘The test programme must include a User Acceptance Test
MRDS/Test/CRO40 ‘The MRDS supplier must provide discrete services to support
testing and data generation and migration when these are required
6.75.10 Availability and Resilience
MRDS/Avail/CRO10 ‘The MRDS will be available for user operation between 6am and
9pm each day from Monday to Saturday. The service provider
must make the service available for defined periods outside these
when requested with 48 hours prior notice.
MRDS/Avail/CRO20 During the period of user operation the MRDS must achieve an
availability of 99%, measured at the Managed Service Boundary.
MRDS/Avail/CR030 In the event of a failure occurring caused by a catastrophic event
that is outside the control of the service provider the service must
be reinstated within 24 hours of the failure. (Such events will not
be included in the measurement of availability).
6.75.11 Security
MRDS/Secure/CRO10 ‘The MRDS must conform to the MRDS Security Policy. This has
been produced in compliance with ISO/IEC 17799:2000 the Code
of Practice for Information Security Management
MRDS/Secure/CRO20__' The MRDS must provide configurable access controls allowing
separate control of user access to update and view data. The
control must allow access rights to be defined at attribute level,
and scoped within a suitable parameter elsewhere in the data
structure.
MRDS/Secure/CR030. MRDS access controls must be capable of being allocated to user
groups or profiles that can be applied to groups of similar users.
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MRDS/Secure/CRO40 The MRDS must provide adequate backup facilities for data,
database, software and infrastructure configuration to ensure that
the system can be restored without loss in the event of a failure
MRDS/Secure/CROSO The MRDS must provide adequate archiving that archive data at a
fixed period after it has ceased to be live. It must be possible to set
the default archiving period, and to enter an overriding run time
period. Initially the default archiving period will be set to 18
months
6.7512 Usability
MRDS/Use/CRO10 ‘The MRDS User Interface must use industry standard internet
browser navigation methods and techniques.
MRDS/Use/CRO20 ‘The MRDS must use standard screen layouts and consistent
designs for finding, adding, changing and deleting reference data.
MRDS/Use/CRO30 ‘The MRDS must provide drill down functionality through
hierarchies of reference data objects
MRDS/Use/CRO40 Asa guide an animated model of the required user interface has
been produced, and service providers should base their user
interface design upon this. The final user interface design must be
agreed with the Post Office before construction,
6.75.13 Performance
MRDS/Perf/CRO10 ‘The performance of the MRDS must be monitored automatically at
the Managed Service Boundary, and the results made available to
the Post Office
MRDS/Perf/CRO20 ‘The MRDS must be capable of supporting agreed service levels for
enquiry, update and batch processing functions concurrently.
MRDS/Perf/CR030 ‘The system must be able to perform all batch processing within the
required batch schedules.
MRDS/Perf/CRO40 ‘The MRDS architecture must be scaleable to allow for future
growth of data and processing volumes.
6.75.14 Implementation
MRDS/Imp/CROLO ‘The MRDS must be implemented without disruption to the service
provided to the Post Office business or to other systems supporting
Post Office Automation
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MRDS/Imp/CR020
MRDS/Imp/CR030
MRDS/Imp/CR040
6.
MRDS/Train/CRO10
MRDS/Train/CRO20
MRDS/Train/CRO30
MRDS/Train/CRO40
‘The implementation process must include adequate fallback
provision to prevent service disruption in the event of unexpected
problems. Fallback provisions must remain in place until the
MRDS is proven.
Adequate training and support must be given to users of the MRDS.
and to users supporting fallback provisions during the
implementation process..
Source data for the MRDS must be validated and errors in the data
corrected prior to implementation
5 Training and Support
‘The Post Office must be able to give training, documentation and
support to users of the system covering the operation of MRDS and the
business processes involved in maintaining the data. The training given
should be relevant to the needs of individual user groups/profiles.
‘The MRDS must provide an integrated on line help system covering all
aspects of the on-line system in the context of the overall business
process.
After initial implementation training, continuation training will be
necessary to maintain the skills and induct new users.
Support for the system and business process must be available during
the period of operation of the system.
6.75.16 Data Quality
MRDS/DQ/PFO10.
The quality of the data in RDS and NNDB is not reliable, particularly
regarding the outlet data that is not sent to Pathway. It is reported that
the data sent to external users and systems, particularly data to NBSC
and territories, has an unacceptable level of errors, is out of date or
untimely and, in many cases, is incomplete. Data Quality is one of the
significant factors that lead to the widespread duplication of data, and
the duplicate maintenance of local databases. It also leads to
expensive manual checking of data exported by RDS and NNDB, and
manual re-entry to correct errors.
ILis also reported that the business change process does not give
comprehensive coverage of all reference data maintenance
requirements and means a large section of reference data changes
never reach official systems.
In implementing the MRDS the overall quality of data must be
improved, and the Business Change Process improved and extended
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MRDS/DQ/PF020.
MRDS/DQ/PF030.
MRDS/DQ/PF040,
to ensure the quality of Reference Data does not regress.
Lack of formal data ownership mechanisms in current systems means
that the maintenance of data is not clearly within any one persons
responsibilities or accountability. It is thought that this also
contributes to the problems of addressing the quality problems.
‘The MRDS will provide data ownership mechanisms which will
allow these responsibilities and accountabilities to be enforced. In
implementing the MRDS formal data ownership must be allocated to
the appropriate business users to ensure accountability for data
quality.
NBSC need access to accurate records of outlet closures, re-openings
and contact telephone numbers. to support their customer and intemal
support services. The quality of the information held in current
systems is not adequate for this purpose.
Itis reported that the Reference Data interface between RDS and
Remedy introduces “data quality problems”.
The MRDS interface with Remedy will must pass a complete,
accurate data set.
6.75.17 Data Duplication
MRDS/DD/PF010
Operations staff need to have direct access and visibility to the
MRDS to enable them to maintain network records. Currently access
and visibility are restricted and local systems have been initiated to
fill the gap, and the update of NNDB is patchy as a result, Particular
information outside of Horizon are
certain types of equipment record (not maintained by the Outlet
Equipment Team of the Customer and Network Specification
Section)
Outlet Contact Name
Nature of Private Business
Scale of Private Business
Cut-off times
Alternative Offices
Frontage Type
Particular problems exist with data that is used by Horizon as well as
territories. Territories are not authorised to update this data directly,
while the time scale limitations on Horizon changes mean that the
changes are missed and the data is inaccurate. This information is :
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MRDS/DD/PF020.
MRDS/DD/PF030
MRDS/DD/PF040,
6."
MRDS/DS/PFO10
MRDS/DS/PF020
Outlet Status
Outlet Opening Times
Non Standard Transactions
The MRDS should produce monthly reports of outlets by territory,
giving total numbers of outlets by outlet type, and details of those that
have changed over the month with reason for change. Reasons are
New office
Re-opened
Closed “Force Majeure”
Closed “Public Consultation”
Seasonal Opening
Seasonal Closure
Change of outlet status (e.g. BO to SPSO)
Such reports are currently produced in territories using local systems
holding appropriate reference data.
Operations staff should have access to ad hoe reporting tools
accessing reference data through a MIS interface. Local systems are
being developed to supply Reference Data MIS to territories fed
through regional exports of outlet information. It would be more
efficient if such information could be provided without the need to
duplicate data.
It should be possible to rationalise the MRDS with NSBC data bases
that duplicate the same information . This should result in cost
savings in system maintenance, data replication and ensure that the
data used by NBSC is up to date. At present the interface to NBSC is
scheduled weekly. The process should ensure that NBSC data is
updated at least nightly.
8 Data Scope
Increase the scope of data held in the in MRDS, particularly :
to replace the SCALES Database
to replace local systems and spreadsheets that are currently used and
maintained by regions
to support requirements such as configuration management and outlet
equipment that require more detailed information on objects currently
held as reference data
to support reference data for other Post Office Ltd units such as CHD.
to replace any other reference data update that is carried out
independently of the MRDS.
‘The NBSC require additional information to be available about
offices. The items identified are:
Equipment
Contract type
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MRDS/DS/PF030
MRDS/DS/PF040
MRDS/DS/PF0SO
MRDS/DS/PF060
MRDS/DS/PF070
Format( e.g. Fortress)
OOH contact list
Trial (to show the office is participating in a particular trial e.g. Your
Guide)
Office Manager
Availability of accurate and reliable data of these types would save
NSBC resources in maintaining Out Of Hours data, would help a
future project to identify requirements, would improve customer
service and ensure accuracy, and would improve knowledge of the
outlet and key contacts.
NBSC require some data, particularly the OOH contact list to be
available 24 hours per day.
Any data that is not actually used should be removed from the scope
of reference data, (It is suspected that there are examples in NNDB of
data that is maintained, but never used. It would require some
investigation to ensure only unused data is removed)
The MRDS should include equipment data and processing to support
the equipment information required by the Outlet Equipment Team of
the Customer and Network Specification Team... This team currently
maintains outlet equipment records on local Excel and Access
systems. The data is more detailed than the equipment data on
NNDB.
The team also maintain NNDB equipment records when requested to
do so by Territory staff. The coverage of the equipment is patchy, and
the overall process is inefficient. All the equipment information
entered on NNDB has previously been entered by the equipment
team on local systems, somehow noticed by Territory staff who
collect the information independently of the equipment team, and
then submit it to the team for manual entry. This process means that
both comprehensiveness and accuracy of the NNDB equipment
records suffer.
Security equipment is not included in the scope of this team.
A link should be provided between the MRDS outlet and appropriate
source of up to date postmaster information (potentially held
externally to MRDS) to allow postmaster contact information to be
made available with the office records. Uses of this information are
NBSC help desks and the Outlet Details report.
A comment facility should be attached to outlets to allow territories
to keep notes of significant happenings and events and ensure they
are available to any authorised user.
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MRDS/DS/PFO80
MRDS/DS/PF090
Some outlets have different opening hours in summer to those in
winter. Currently the opening hours have to be changed twice a year
(if they get notification). The MRDS should be able to cope with this
change automatically.
The Reference Data interface between RDS and Remedy is not
providing a complete data set. The particular example quoted is the
“unlisted telephone number flag” which is necessary to prevent
disclosure of ex-directory telephone numbers. This is not passed in
the file. Itis thought that there are other additional data requirements.
6.75.19 Product and Outlet Management
MRDS/POM /PFO10
MRDS/POM /PF020
MRDS/POM /PF030
‘The MRDS should provide facilities to group objects, particularly
products & outlets into structures to provide an effective means of
managing similar products as a block. It is expected that the grouping
structures would be hierarchical , and that individual products may
need to be included within a number of different groups, both
“formal” and “informal”
Structuring products and outlets is expected to generate benefits from
simplifying the process of allocating products to outlets, promoting
consistency between related products and eliminating the need for
specially skilled resources to implement bulk changes. Appropriate
structures may also be used by reporting systems to aid decision
making, and supporting swift reaction to change
Improved Product and Outlet Management must provide:
simple means of allocating a new product to all relevant outlets based
on the allocations of a similar or complementary product or products.
simple means of allocating product ranges to a new store based on the
allocations of products to similar stores
simple means of ending the associations between groups of related
items and groups of related outlets
effective mechanism for applying reporting structure updates to
outlets falling under a RLM, Area, HOA and organisational segment
The implementation of product and outlet structures must
substantially reduce the need to apply high volume changes to
reference data. The structuring of the products and outlets must allow
normal operational changes to be applied without the need for special
processes or large scale update. These structures should improve the
visibility and clarity of the change, reduce the resource required,
improve the implementation speed and reduce errors.
Facilities must still be retained to allow large volume “one off”
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changes (e.g, an external restructuring of telephone codes) to be
implemented by special proce:
MRDS/Process Itis likely that the overall process of managing product and outlet
/PFO40 data could be improved by adopting new structures to make the
allocation of products to outlets more manageable, and to align it
with other retails. This would require business analysis to establish
the detailed requirement.
6.75.20 Reporting and Management Information
MRDS/RMI /PFO10 There is likely to be a growing requirement for reporting to support
the business, and business decisions.. The scope of this management
information will include, but is not limited to, reference data.
Although there are some reports that only require reference data, the
main value would come from the ability to combine reference data
with transaction data. The reference data system reporting is best
provided through a general data warehousing solution, that will
enable reports to be constructed across all classes of data
MRDS/RMI/PFO20 The Office Details Report should include postmaster information
The format of the report should be redesigned to make it easier to
understand by Postmasters.
MRDS/RMI/PF030 It should be possible to supply lists of Post Offices by geographical
area, as these are used by charities and other organisations in
publicity and in providing information to their customers.
6.75.21 Business Change Process
MRDS/BCP/PFO10 ‘The change process should cover the complete range of reference
data changes that occur within the Post Office A unique change
control number should be allocated automatically to each business
change, and this should be linked automatically to all consequential
data changes. The automatic allocation process for change control
number must enable controls to be classified by type of change (as
currently implemented in change control numbers and suffixes) and
the number generated accordingly.
The implementation of an effective and efficient change process
should improve the accuracy, timeliness and completeness of the data
and, as a consequence, improve the quality of customer service.
MRDS/BCP/PF020 Reference Data update must be provided by an efficient Business
Process that ensures that resources are used to greatest effect, and
must be integrated into the wider Post Office change management
and configuration management processes
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MRDS/BCP/PF030.
MRDS/BCP/PF040_
MRDS/BCP/PF0S0.
MRDS/BCP/PF060.
The process should enable reference data changes to be brought to
market faster, reduce the costs of reference data maintenance, reduce
the costs of distributing erroneous data to customers and generally
improve the visibility of data to the business at large.
The business process must be automatically controlled by a workflow
system. This will allocate jobs required in support of the change and
have facilities for follow up and escalation of jobs not completed on
time. The workflow system must be capable of supporting different
workflows for different types of change. The control system must be
configurable so that individual workflows can be amended, new ones
created and closed when they are no longer required.
The current process for introducing a change involving Horizon data
is complicated and largely based on passing manual forms between
the sections involved in the change. The work is repetitive and
inefficient resulting in longer lead times and high error rate There is,
no systematic visibility of the progress of the change, and manual
notification of progress is patchy. ‘The process ends up with
electronic data in spreadsheets being printed off in order to re-enter it
into RDS/NNDB.
The Business Process should be re-engineered to create a streamlined
efficient means of introducing business changes. The IT support to
the Business Change process should provide end to end visibility of
the change status and data by those with a need to know throughout
the change process, and contain work flow capabilities to automate
and control the change.
The new business process must provide for changes to be built up
over a period of time as information about the change becomes
available, allowing amendment to the data by authorised staff at any
time up to the release of the data for implementation. The release
process must include adequate controls to ensure the integrity and
accuracy of the data. The release process must be available only to
data owners and authorised deputies and must enable the staff to set
release priorities and time scales. There should be no significant lead
time requirement between the release of the data and delivery to
recipient systems, During the whole process visibility of the reference
data must be available to users with a need to know...
The business process must have clear ownership of data enforced by
the MRDS, with effective responsibilities and accountability for the
accurate maintenance of the data. Data ownership must be applied to
each element of data. This will ensure that the data is accurate,
updates are timely and an audit trail is maintained.
Process must be fully configured with change management in place.
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Amendment workflows must be configurable /
Reference data changes faster to market
Reduced loss of revenue caused by wrong data to customers
Improved ability for Joe Public to react with the business
Reduced cost of data maintenance (staff time, head count)
Resource savings in territories/ The issue of data ownership needs to
be addressed by the business.
MRDS/BCP/PF070. The MRDS will allow changes to be entered into a product or outlet
record up to the time that the record is authorised for release to
Pathway. This enables the release to be delayed until the data needs
to be sent to Pathway so that late changes can be incorporated.
(Currently changes entered into RDS can not be amended after entry)
In order to take advantage of this added flexibility the Business
Change Process needs to incorporate “just in time” change
authorisation .
62.26.7.6 Descriptions of Functions
Business Change Management
‘Aclivities in the business to define changes required which
will result in changes to reference data
Organisational Change
Product Change ‘As above for products
Product Introduction As above for products
Product Withdrawal As above for products
[As above for organisation
Define and Agree Reference
Data Changes
‘Accounting Structure Changes I
‘As above for accounting changes
Initiate Business Change
For each individual change the start of specifying
reference data changes required
Identify Associated Business
Management of the associated reference data reqts
Change Reqts
‘Approve/Authorise Reference I Authroisation to implement reference data changes
Data Change
Implement Reference Data
Changes
Translate Business Change to I Creates reference data items to support each business
ref Data Change I change
Verify Ref Data Verifies reference data items to support each business
change
Deliver Ref Data
Delivers reference data items to support each business
change
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+ —( Formatted: Bullets and Numbering )
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6.7.7 Information Usages
I 6.6.2The information usages of the lowest level processes are identified in Appendix>—( Formatted: Bullets and Numbering )
A
7.0 Operational Characteristics
Unless entries in the table identify otherwise the following
made:
mptions have been
Availability: Standard office hours will be required, with some setup and close
down time around those. i.e. no 24 hour working.
Data Retention: Data should be retained as long as required to perform the
processing required on that data and can then be archived normally. ‘This is
generally stated at the highest activity level on the assumption that data
retention for the whole process is the same —except where specific examples
are cited and where the process covers different organizational areas (eg,
branch and central). In this case the differences are shown at that level.
Potential for Change: No significant change other than normal ongoing care
and maintenance is foreseen
Usability: Requirements for “designed-in intuitive usability” will increase as
the number of users increases. No area will suffer any greater or lesser user
churn than any other.
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Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
HMIL
Reference Data
Management
Business Change I Activities in the
Management business to define
changes required which
will result in changes to
reference data
Product Change I As above for products I Sales & 1 London Product Hours of
Marketing (30 introductions Service 8am
people currently occur at I to 6pm
assumed) arate of around I Monday to
10 per month Friday.
maximum. Restore from
backup within
24 hours.
Product ‘As above for products I Sales & T London Product Hours of
Introduction Marketing (30 introductions Service 8am
people currently occur at I to 6pm
assumed) arate of around I Monday to
10 per month Friday.
maximum. Restore from
backup within
24 hours,
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Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
Product ‘As above for products I Sales & T London Would anticipate I Hours of
Withdrawal Marketing (30 the rate of Service 8am
people product to 6pm.
assumed) withdrawals to I Monday to
match that of Friday.
product Restore from
introductions backup within
24 hours.
‘Organisational As above for Operations 1 Bristol 2? I Organisational I Hours of
Change organisation 5 users change currently I Service 8am
occur ata rate of I to 6pm
around 1000 per I Monday to
month maximum. I Friday.
Restore from
backup within
24 hours.
‘Accounting ‘As above for Finance T Chesterfield I Potentially one I Hours of
Structure Changes I accounting changes Luser set of changes per I Service 8am
year to 6pm
Monday to
iday.
Restore from
backup within
24 hours.
Define and Agree
Reference Data
Changes
© Post Office Ltd 2003
COMMERCIAL IN CONFIDENCE
Page 139 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
Tnifiate Business I For each individual Business Tondon ‘As per above Hours of
Change change the start of Owners for I Bristol business changes I Service 8am
specifying reference I product, Chesterfield to 6pm.
data changes required I organisation, Monday to
accounting Friday.
plus Virtual Restore from
Reference backup within
Data team 24 hours.
Identify Management of the Business London As per above Hours of
Associated associated reference I Owners for __I Bristol business changes I Service 8am
Business Change I data reqts product, Chesterfield to 6pm
Reqts organisation, Monday to
accounting Friday.
plus Virtual Restore from
Reference backup within
Data team 24 hours.
‘Approve/Authorise I Authroisation to Business London ‘As per above Hours of
Reference Data I implement reference I Owners for __I Bristol business changes I Service 8am
Change data changes product, Chesterfield to 6pm
organisation, Monday to
accounting iday.
plus Virtual Restore from
Reference backup within
Data team 24 hours.
Implement
Reference Data
Changes
© Post Office Ltd 2003
COMMERCIAL IN CONFIDENCE
Page 140 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
Translate Business I Creates reference data I Virtual Ref I London ‘As per above Hours of
Change to ref Data I items to support each I Data team Bristol business changes I Service 8am
Change business change Chesterfield to 6pm.
Monday to
Friday.
Restore from
backup within
24 hours.
Verify Ref Data I Verifies reference data I Virtual Ref I London As per above Hours of
items to support each I Data team Bristol business changes I Service 8am
business change Chesterfield to 6pm
Monday to
Friday.
Restore from
backup within
24 hours.
Deliver RefData I Deliversreference data I Virtual Ref I London ‘As per above Hours of
items to support each I Data team Bristol business changes I Service 8am
business change Chesterfield to 6pm
Monday to
iday.
Restore from
backup within
24 hours.
© Post Office Ltd 2003
COMMERCIAL IN CONFIDENCE
Page 141 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/OI7
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes,
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
HMIL.
Sales
Client The activity ofa client I Branch Point I 17,500 Aspernow(at I Normal office
Authorisation receiving and of Sale Branches completion of I__I hours maybe
authorising requests (40,000 sales banking) with —_I occasional
froma branch. positions) expected 20% I exception
‘Typically through on growth to allow
line banking for other on-line
products
‘Customer ‘Customer makingan I Branch Point I 17,500 Typically 3% of I Normal office
Enquiries enquiry for a product or I of Sale Branches alltransactions, I hours maybe
service (40,000 sales therefore between I occasional
positions) 300k — 450k per I exception
Launch Session I Entry point toa Branch Point I 17,500 Normal office
transaction or service I of Sale Branches hours maybe
(40,000 sales occasional
positions) per week exception
11 million
sessions per day
peak.
© Post Office Ltd 2003 COMMERCIAL IN CONFIDENCE Page 142 of 180
Printed on: 11/08/22
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/OI7
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) _I running the service hours? I retention needs?) I changes,
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
HMIL.
Capture and Capture and validation I Branch Point I 17,500 80 million Normal office
Validate of data required to of Sale Branches transactions per I hours maybe
Transaction Data_I undertake the (40,000 sales week. occasional
transaction positions) 20 million exception
transactions per
day peak
Estimate of 90%
of transactions
and 80% of
products will be
tokenised
Authorise ‘Authorisation of a Client 17,500 ‘As per banking I Normal office
‘Transaction transaction where this branches allowing for 20% I hours maybe
is required. Could be growth occasional
on-line or local exception
depending on product
Settle Customer
Session
Authorise Authorisation of Branch Point I 17,500 ‘Normal office
Payment payment through use of I of Sale Branches hours maybe
specific MOP e.g. (40,000 sales occasional
Debit card positions) exception
Make Take Branch Point I 17,500 Normal office
Payments of Sale Branches hours maybe
(40,000 sales
positions)
occasional
exception
© Post Office Ltd 2003
COMMERCIAL IN CONFIDENCE,
Page 143 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
Produce Receipt I Printing of a receipt for I Branch Point I 17,500 ‘Asnow Normal office
the customer of Sale Branches hours maybe
(40,000 sales occasional
positions) exception
Print Transaction I Printing of items at Branch Point I 17,500 100 daily Normal office
Documentation I either POS or Branch I of Sale Branches hours maybe
back office eg. Tax (40,000 sales occasional
dises/insurance positions) with exception
certificates ete access to one
point per
branch
Record Electronically Branch Point I 17,500 ‘Asnow Normal office
‘Transaction recording of transaction I of Sale Branches hours maybe
Details details (40,000 sales occasional
positions) exception
Request Request for the Branch Point _ I 17,500 ‘Asnow Normal office
Settlement customer session to be I of Sale Branches hours maybe
closed through payment I (40,000 sales occasional
positions) exception
© Post Office Ltd 2003
COMMERCIAL IN CONFIDENCE
Page 144 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process ‘Description Role (incl. Location (s)_ I Volumes (What I Availability I Data Retention I Potential for I Major
numbers (How many I frequency of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) __I running the service hours? I retention needs?) I changes,
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
HMIL.
Branch Stock
Management
Record and Update of stock Branch Point I 17,500 After every Normal office
Monitor Stock I position through either_I of Sale and I Branches transaction hours maybe
Holding sale of a stock item or I Back Office. oceasional
receiptidespatch of 40,000 counter exception
stock rems or local positions
destruction of stock
Stock Take and Declaration of stock Branch Back Occurs Normal office
Stock Declaration I position at item level I Office. 17,500. I Branches periodically hours maybe
by comparing actual I Branches depending on occasional
stock with system held I (Note: Stock product (Assume I exception
position Unit role also most frequently at
needs to be frequency of
considered) weekly)
‘Assess Planned I Branch review and Branch Back _ I 17,500 Stock deliveries I Normal office I Latest version of
Order amendment if required I Office. 17,500 I Branches are twice weekly I hours maybe _I orders only to be
of scheduled order Branches on average. occasional I maintained
(Note: Stock exception
Unit role also
needs to be
considered)
© Post Office Ltd 2003 COMMERCIAL IN CONFIDENCE Page 145 of 180
Printed on: 11/08/22
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
Receive and Zphase process at I Branch Back _ I 17,500 Stock deliveries I Normal office
Verify Stock receipt of pouch Office. 17,500 I Branches are twice weekly I hours maybe
Delivery process outputs Branches on average. occasional
recognition of amount I (Note: Stock exception
of stock assumed to be I Unit role also
as on consignment note I needs to be
to be recorded on considered)
branch accounts.
At some time later the
verification/acceptance
of amount take place.
Despatch Stock I Outward remittances I Branch Back I 17,500 Stock despatch I Normal office
being retumed tothe I Office. 17,500 I Branches weekly hours maybe
stock centre Branches occasional
(Note: Stock exception
Unit role also
needs to be
considered)
Destroy Stock Local activity, driven I Branch Back — I 17,500 Stock destruction I Normal office
by business rules, Office. 17,500 I Branches weekly hours maybe
allowing the branch to. I Branches occasional
destroy stock items (Note: Stock exception
rather than returning
them provided audit
trail is maintained
Unit role also
needs to be
considered)
© Post Office Ltd 2003
COMMERCIAL IN CONFIDENCE
Page 146 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/OI7
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes,
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
HMIL.
Central Stock
Management &
Replenishment
Generate Planned I Centralised calculation I Stock ‘Assumed Stock items = Hours of
Stock Orders of expected orders for Management, I London 830. Service 8am
branches for given time I Warehousing Orders/despatches I to 6pm
period using historical I and =9.5m item lines I Monday to
data Distribution, per year, average I Friday.
Cash 150 item lines per I Restore from
Management. order, max 400 I backup within
100 users item lines for 24 hours.
assumed largest office.
Returns =
650,000 item
lines per year
Validate Stock Sense check of stock I Stock ‘Assumed As above Hours of
Orders orders prior to despatch I Management, I London Service 8am
to warehouse Warehousing to 6pm
and Monday to
Distribution, Friday.
Cash Restore from
Management. backup within
100 users 24 hours.
assumed
© Post Office Ltd 2003 COMMERCIAL IN CONFIDENCE, Page 147 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
POL Inventory I Management of stock __I Stock ‘Assumed3 I This will need to_I Hours of
Management inventory ine Management, I locations handle 1000 Service 8am
redistribution of stock, I Warehousing dispatches per I to 6pm
monitoring of stock and day and to Monday to
levels nationally Distribution, monitor 9.5m I Friday.
Cash item lines per Restore from
Management. year. backup within
100 users 24 hours.
assumed
Warehousing and _I Role of Hemel Nia Na Nia
Distribution Hempstead
Stock Check Declaration of stock I Branch Point _ I 17,500 Occurs Normal office I As per the current
Transaction Stock I position at item level I of Sale and —_I Branches periodically hours maybe I transaction
by comparing actual I Back Office. depending on occasional I process at the
stock with system held I 40,000 counter product (Assume I exception branch unless
position positions most frequently at stated otherwise
frequency of
weekly)
Transaction Stock Branch Point I 17,500 Transaction stock I Normal office
Order Processing ofSaleand I Branches deliveries are hours maybe
Back Office. twice weekly on I occasional
40,000 counter average. exception
positions
© Post Office Ltd 2003
COMMERCIAL IN CONFIDENCE
Page 148 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
Central Stock ‘Assumed I Approximately I Hours of Two years tobe
‘Transaction Stock Management, I locations 1000 Transaction I Service 8am I maintained.
Management and Warehousing stock pouches are I to 6pm Current year plus
Replenishment and sent from the Monday to I previous year.
Distribution, centre Friday.
Cash Restore from
Management. backup within
100 users 24 hours.
assumed
© Post Office Ltd 2003
COMMERCIAL IN CONFIDENCE
Page 149 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/OI7
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequency of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) __I running the service hours? I retention needs?) I changes,
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
HMIL.
‘Accounts and
Settlement
‘Agent The value of payment I Automated ‘Agents paid
Remuneration made to agents for link from. monthly
transactions PIVOT to
undertaken. HRVSAP
Create and Verify I A continuous view of — I Branch Back — I 17,500 Tobe produced — I Normal office I As per the current
Branch Liability I what a branch actually I Office. 17,500 I Branches daily (or as hours maybe I transaction
Statement has in terms of cash, I Branches required, the occasional process in the
stock and other value. agent may wish to I exception branch
This would be derived request one on
from sales transactions, demand).
cash and stock
‘movements and any
losses or gains. This
must be fully auditable.
© Post Office Ltd 2003 COMMERCIAL IN CONFIDENCE, Page 150 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/OI7
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequency of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes,
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
HMIL.
Report Customer I Automatically transmit I Automated I Various PO I Depends on This service I As per the current
Data to Client client required data to Locations, I Product (usually I needs tobe I transaction
clients daily, sometimes I available from I process in the
weekly) 8amto6pm I branch
Monday ~
Friday
Summarise Automatic activity of I Automated I National Batch process
‘Transaction Data I summarising all data
items transmitted prior
to psosting to ledger
entries
Client Settlement I Make payments to Total number I I location
to Client clients to pass onthe I of staff Chesterfield
value of their involved in all
impayments taken over settlement
the branch counters. In I activities = 25
some cases this may be
‘a net payment where
the client product
includes outpayments
Identify Settlement I Check client contract to I As above ‘As above This service
‘Terms determine what the needs to be
payments terms are. available from
‘This may include such 8am to 6pm.
things as timings, Monday —
method of payment, Friday
whether to use
estimates or actuals:
© Post Office Ltd 2003 COMMERCIAL IN CONFIDENCE Page 151 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study
Business Requirements
Ref: BD/BRD/O17
Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
Summarise Sales I Take the source data I As above ‘As above Daily This service
and Calculate from the client and needs to be
Payment Due to I summarise into the available from
Client on Client I format required to 8am to 6pm
Data make the settlement Monday
Friday
Settle on Use estimated ‘As above As above Daily This service
Estimated transaction data to needs to be
Settlement calculate the settlement available from
Amounts due. This may be 8am to 6pm
because the actual data Monday ~
is not available in time Friday
to make the settlement
on actuals, Estimate is
based on historic
trends, known seasonal
factor, growth factors
and price changes.
Normally agreed with
client in advance.
© Post Office Ltd 2003 COMMERCIAL IN CONFIDENCE
Page 152 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
‘Compare Ifsettlement is based I Asabove ‘As above Daily This service
Settlement Data I on a source other than needs to be
with Transaction I Horizon data the available from
Data settlement is later 8am to 6pm
compared with the Monday
Horizon transaction Friday
data, The resultant
difference may be
between estimates and
actual or Horizon data
and the alternative data
source
Resolve Differences between I Asabove ‘As above Daily/Weekly This service
Discrepancies settlement data and needs to be
Horizon data need to be
resolved by
determining which
stream is correct.
Subsequent corrections
will be made to the
transaction data stream
or the client data stream
dependent on cause. If
cause not identified can
result in losses or gains
to the business.
available from
8am to 6pm
Monday
Friday
© Post Office Ltd 2003
COMMERCIAL IN CONFIDENCE
Page 153 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/OI7
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes,
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
HMIL.
‘Authorise , Make
and Account for
Payments
Client Settlement I Receive payments from I As client ‘As above
From Client clients who pass on the I settlement to
value of outpayments I client (see
made on their behalf I above)
over the branch
counters for example
Dwe.
Identify Settlement I Check the client ‘Asabove ‘As above This service
Terms contract to determine needs to be
what the payment terms available from
are, 8am to 6pm
Includes timings, Monday —
method of payment etc. Friday
Estimate and Ideally settlements for I Asabove ‘As above This service
Agree Amounts ‘outpayment products needs to be
Due From Clients are prefunded so this available from
will often involve using 8am to 6pm.
estimates in the first Monday —
instance. This is Friday
negotiated and agreed
with the client based on
historical trends and
current market.
© Post Office Ltd 2003 COMMERCIAL IN CONFIDENCE Page 154 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study
Business Requirements
Ref: BD/BRD/O17
Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
Request Payment I Usually in the form ofa I As above ‘As above Weekly/Monthly I This service
From Client letter or statement of needs to be
account rather than an available from
invoice which shows 8am to 6pm
the next month’s Monday
agreed estimates. Friday
Check Amounts I Client Cashier is ‘As above As above Daily This service
Have Been notified of amounts to needs to be
Received expect into the bank available from
account and monitors 8am to 6pm
whether the amounts Monday ~
have been received as Friday
agreed. If not the client
is contacted to request
settlement,
‘Compare Ifsettlement is made I As above As above Daily/Weekly I This service
Settlement Data I based on a source other needs to be
with Transaction I than Horizon data the available from
Data settlement made is later 8am to 6pm
compared with the
Horizon transaction
data, The resulting
differences may be
between estimates and
actual or Horizon data
and the alternative data
source
© Post Office Ltd 2003 COMMERCIAL IN CONFIDENCE Page 155 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/OI7
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
HMIL
Resolve Differences between I Asabove ‘As above Weekly This service
Discrepancies settlement data and needs to be
Horizon data need to be available from
resolved by 8am to 6pm
determining which Monday
stream is correct. Friday
Verifi cation
Subsequent corrections
will be made to the
transaction data stream
or the client data stream:
dependent on cause. If
cause not identified can
result in losses
to the business.
or gains
© Post Office Ltd 2003
COMMERCIAL IN CONFIDENCE
Page 156 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
‘Automated Derived from ‘Automated I National ‘As pernow ‘Asnow
Reconciliation I transaction data, This
can be an automatic
verification such as
DRS and AP but will
also include manual
verification for clients
such as AON and
Camelot. This will also
include input of MOD
cash accounts and may
include any rump of
non-tokenised products.
May also be used to
verify effectiveness of
validation at the
counter on a sampling
basis.
‘Cheque Back office process to I Debt Recovery I Chesterfield [10% of current I Thisservice I One year then
Verification verify value of cheques I Unit work load. needs tobe I archived for a
despatched to payment I assumed 200 Typically 1,700 I available from I further year
processing centre
users
branch outlets per
week.
8am to 6pm
Monday —
Friday
© Post Office Ltd 2003
COMMERCIAL IN CONFIDENCE
Page 157 of 180
Printed on: 11/08/22
FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
Rota Checks Verification against I Debt Recovery I Chesterfield I This willreview I This service I One year then
streams of data for non- I Unit ~ all branch liability I needs tobe I archived fora
tokenised products. assumed 200 statements (1700 I available from I further year
This is a sample check I users per day). In 8am to 6pm
not a full check and is, addition it will I Monday
based on Business also need to Friday
rules, review
transaction data
over long period,
week, month or
quarter, therefore
it will require
transaction data
access.
Transaction Data I Verification that the I Debt Recovery I Chesterfield I The results from I This service I One year then
Set Criteria data for the transaction I Unit the previous needs tobe I archived for a
Checks conforms to the criteria I assumed 200 process, available from I further year
defined for the product I users anticipated to be I 8am to 6pm
by branch by day. I Monday ~
Friday I
Transaction Investigates patterns of I Debt Recovery I Chesterfield I 10% of current I This service I One year then
‘Activity Level I transactions that are I Unit ~ work load. needs tobe I archived for a
Checks outside the norm of I assumed 200 Typically 1,700 I available from I further year
patterns for the branch. I users branch outlets per I 8am to 6pm
week. Monday —
Friday
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FUJ00098198
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Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
Investigate Ability to enquire back I Debt Recovery I Chesterfield This service I Assumed
Transaction Data I to individual Unit - 200 needs tobe I individual
transactiuon data level users available from I transaction data
to answer customer 8am to 6pm _I needs to be kept
enquiries or further Monday for 56 days on
progress verification Friday line and the
actoivities to this level. remainder
archived.
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Post Office Limited End to End Re-Architecture Feasibility Study
Business Requirements
COMMERCIAL IN CONFIDENCE
Ref: BD/BRD/O17
Version: 0.1
Date: 21/02/2001
Process Description
Debt Recovery
ete
Role Gnel. Location (9)
numbers (How many
performing I locations)
role)
‘Assess Actions on_I The decision point to. I Asabove ‘As above
Debt ascertain the debt route
taken. The decision will
be based on value, age
Volumes (What _ I Availability
frequency of (What are the
running the service hours?
process? Any What fallback
periodicity?) procedures are
in place?)
This service
needs to be
available from
8am to 6pm
Monday —
Friday
Data Retention
(Any special data
retention needs?)
Potential for
Change (Are
changes
likely or is
the process
relatively
stable?)
Volatility
HMIL.
Major
Exceptions
currently not used.
Simple Recovery I Recovery of debt Asabove As above Daily This service
simply by contacting needs to be
the agent and/or client available from
and requesting payment 8am to 6pm
Monday —
Friday
Sell The Debt Debt factoring which is_I As above ‘As above Unlikely to occur I This service
needs to be
available from
8am to 6pm
Monday —
Friday
rate,
Make Provision I Analysis of total debt I As above ‘As above
for Bad Debts and creation of
provision dependant on
anticipated recovery
© Post Office Ltd 2003
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FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
Write OF The debts, which are I Asabove ‘As above Periodic review I This service
deemed irrecoverable, probably needs to be
and therefore the value quarterly available from
is written off through 8am to 6pm
the ledgers system. Monday
Friday
Initiate Recovery I Anagent or employee I Asabove As above Maximum This service
‘Through Payroll I may agree to recovery monthly needs to be
of debt directly from available from
their salary. For agents 8am to 6pm
this would be via agent Monday ~
remuneration and for Friday
employees via HR/SAP
payroll
Defer The Debt I The ability for the ‘As above ‘Asabove Maximum This service
agent to defer debt for a monthly needs to be
period of time or until available from
the branch is sold. 8am to 6pm
Monday ~
Friday
Criminal and Civil I The point at which itis_ I Asabove ‘As above ‘Approximately I This service
Litigation deemed unlikely that 100 per year. needs to be
Investigations the agent will repay the available from
debt without using the 8am to 6pm
court systems. At this
point the agent will be
requested
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FUJ00098198
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Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/OI7
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes,
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
HMIL
Produce POL Sub
Ledgers
Produce Client I Created using Mainly ipdated daily, I This service
Ledger transaction data from I automatic closed monthly. I needs to be
Horizon and settlement Number of entries I available from
data to create liability determined by I 8am to 6pm
to clients as a Chart of Accounts I Monday —
consequence of Friday
transactions undertaken
at the branch
Produce Branch I Created using Mainly 1 Updated daily, I This service
Liability Ledger I transaction data to automatic closed monthly. I needs to be
create branch liability. 17,500 branches. I available from
‘This would include any Number of entries I 8am to 6pm
items in the branch determined by I Monday —
suspense and error Chart of Accounts I Friday
notices.
Produce Personal I This would encompass I Mainly 1 Updated daily, I This service
Agent Ledgers the branch liability and I automatic closed monthly. I needs to be
would also include 17,500 branches. I available from
items of debt which are Number of entries I 8am to 6pm
not as a consequence of determined by I Monday —
transactions undertaken Chart of Accounts I Friday
at the counter e.g.
licence fees and
security screens.
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FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/OI7
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes,
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
HMIL.
Produce Cash and I Balances, payment and I Mainly T Updated daily, I This service
Bank Ledgers receipt of cash, and automatic closed monthly. I needs to be
bank account 17,500 branches. I available from
transactions Number of entries I 8am to 6pm
determined by I Monday —
Chart of Accounts I Frida
Branch Liability
Management
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FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
Investigate Tnvestigations to Debt Recovery I Chesterfield I Daily This service
Suspense Items I establish cause of Unit assumed needs to be
suspense items. This is I to be circa 300 available from
performed on a risk users 8am to 6pm
‘management basis. Monday
Friday
Investigate Investigation of items I Debt Recovery I Chesterfield I Daily This service
Discrepancies identified. This would I Unit assumed needs to be
accumulate any to be circa 300 available from
necessary evidence for I users 8am to 6pm
future criminal
investigations
Investigate This would highlight I Debt Recovery I Chesterfield I Weekly
Unusual (Outside I unexpected values such I Unit assumed
Norms) Values in I as stock inflation. to be cirea 300 available from
Branch Liability I There may not be a users 8am to 6pm
known error but may Monday
indicate and Friday
expected/anticipated
error.
Branch Closing I Identification of branch I Debt Recovery I Chesterfield I Ad hoe This service
and Transfers closure and therefore I Unit assumed needs to be
acceleration of error I to be circa 300 available from
analysis and debt users 8am to 6pm
recovery for the
specific branch.
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FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study
Business Requirements
Ref: BD/BRD/O17
Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
Ledger Profitand I This would include Mainly T Updated daily, I This service
Loss Items from I items from branch automatic closed monthly. I needs to be
Branch Accounts I transactions which 17,300 branches. I available from
impact the business P Number of entries I 8am to 6pm
& L account eg cash determined by I Monday
sales from postal orders Chart of Accounts I Friday
and bureau
Produce This would include any I Mainly T Updated daily, I This service
Borrowings and borrowings, including I automatic with closed monthly. I needs to be
Investments DTI, and investments limited manual 17,300 branches. I available from
Ledger IV’s input Number of entries I 8am to 6pm
determined by I Monday
Chart of Accounts I Frida
Produce Stock This would only Mainly 1 Updated daily, I This service
Ledger include real stock such I automatic closed monthly. I needs to be
as retail items 17,500 branches. I available from
Number of entries I 8am to 6pm
determined by I Monday ~
Chart of Accounts I Friday
Produce Nominal I This activity is the end I Mainly T Updated daily, I This service
Ledger product of all the automatic closed monthly. I needs to be
business ledger entries 17,500 branches. I available from
Number of entries I 8am to 6pm
determined by I Monday
Chart of Accounts I Frida:
© Post Office Ltd 2003 COMMERCIAL IN CONFIDENCE
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FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role Gnel. Location (s)_I Volumes (What I Availability I Data Retention] Potential for I Major
numbers (How many I frequeney of (What are the I (Any special data I Change (Are I Exceptions
performing I locations) running the service hours? I retention needs?) I changes
role) process? Any What fallback likely or is
periodicity?) procedures are the process
in place?) relatively
stable?)
Volatility
MAL
Reconcile, This is the overall 3 T Daily/Weekly I This service
Consolidate, process undertaken to needs to be
Review and Report I verify the ledger and available from
consequently support 8am to 6pm
the ledger items. Monday
Friday
Liquidity and Analysis of PO Lid 3 1 Daily This service
Funds daily cash needs to be
‘management requirements. Twice available from
daily reporting to 8am to 6pm
Group for Monday ~
investments/borrowings Friday
requirements.
Business Funds
Analysis
Client Funds
Analysis
Daily Funds
Requirement
Forecast
Performance
Analysis
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FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/OI7
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role (incl. I Location(s) I Volumes Availability I Data Potential I Major
numbers (How many I (What (Whatare the I Retention —_I for Change I Exceptions
performing I locations) frequency of I service hours? I (Any special I (Are
role) running the I What fallback I data retention I changes
process? Any I procedures are I needs?) likely or is
periodicity?) I in place?) the process
relatively
stable?)
Provide Provision of
Management I management
Information I information at 3 levels:
= operational
performance
for retail line
- MI for each
business
process
- MI for
branches
Produce This will bea I This service
Operational combination of I needs to be
Performance MI the data available from
warehouse 8am to 6pm
holding 5 years I Monday —
data at outlet I Friday
product day
level and up to
8 data marts
Produce Debt ‘Accounting I This service
Recovery component I needs to be
Performance volumes low I available from
8am to 6pm
Monday ~
Friday
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Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/OI7
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Produce Cash This service
Management MI needs to be
available from
8am to 6pm
Monday —
Frida
Produce Stock Data mart This service
Management MI derived from I needs to be
the data available from
warehouse 8am to 6pm
Monday —
Friday
Produce Sales Data mart This service
and Marketing derived from I needs to be
MI the data available from
warehouse 8am to 6pm
Monday
Friday
Produce ‘Accounting I This service
Accounting MI component I needs to be
volumes low I available from
8am to 6pm.
Monday —
Frida
Produce Branch Produced at I Normaloffice I Upto3
Level MI the outlet hours maybe I months
based on occasional
locally held I exception
data - volumes
low
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FUJ00098198
FUJ00098198
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Process Description Role (incl. Location(s) I Volumes (What I Availability Data Potential for I Major
numbers (How many I frequency of I (Whatare the Retention Change (Are I Exceptions
performing I locations) running the service hours? I (Any special __I changes
tole) process? Any ‘What fallback data retention likely or is
periodicity?) I procedures are I needs?) the process
in place?) relatively
stable?)
Cash
Management
Cash In Transit Cash in the course of 1,667 26 centres Up to 1000 This service As per current.
conveyance, in the transit needs to be current central
form or remittances, movements per I available from I cash
between cash centre’s day 8am to 6pm management
and branches in either Monday ~ processes
direction. Friday
Also refers to the
organisation engaged
in the activity of
transporting cash
hence CHD is a cash
in transit operator.
Branch Cash
Management
Record and
Monitor Cash
Holding
Maintains a running I Branch Back
total of cash holding Office. 17,500
Branches
(Note: Stock
Unit role also
needs to be
considered)
At 17,500
outlets —
volumes low per
outlet
‘Normal office
hours maybe
occasional
exception
© Post Office Ltd 2003
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Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Cash Verification I Compares actual with I Branch Back — I 17,500 At 17,500 Normal office
and Declaration I branch system derived I Office. 17,500 I Branches outlets ~ hours maybe
view of cash holding I Branches volumes low per I occasional
and identifies (Note: Stock outlet exception
discrepancies Unit role also
needs to be
I considered)
Review Planned I Activity performed at I Branch Back — I 17,500 At17,500 Normal office
Orders and branch to review the I Office. 17,500 I Branches outlets hours maybe
Request Changes planned cash order and I Branches volumes low per I occasional
request changes to that I (Note: Stock outlet exception
order if necessary Unit role also
needs to be
I considered)
Receive and 2-phase process—at I Branch Back — I 17,500 At 17,500 Normal office
Verify Cash receipt of pouch Office. 17,500 I Branches outlets hours maybe
Delivery process outputs Branches volumes low per I occasional
recognition of amount I (Note: Stock outlet exception
of cash assumed to be I Unit role also
as on consignment needs to be
note to be recorded on I considered)
branch accounts
At some time later the
verification/acceptance
of amount take place.
Despatch Cash I Outward remittances I Branch Back I 17,500 At17,500 Normal office
being returned to the I Office. 17,500 I Branches outlets ~ hours maybe
cash centre Branches volumes low per I occasional
(Note: Stock outlet exception
Unit role also
needs to be
considered)
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Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Batch and Batching of cheques I Branch Back — I 17,500 At 17,500 Normal office
Despatch taken over the branch I Office. 17,500 I Branches outlets hours maybe
Cheques counter during the day I Branches volumes low per I occasional
and despatch of (Note: Stock outlet exception
cheques to EDS. Unit role also
needs to be
considered)
Cash Centre Cash I The operational 700 T centres Daily This service
Management activities associated (ote) needs to be
with the processing of 3 centres available from
cash on receipt into or (Coin) 8am to 6pm
despatch from a cash Monday —
centre. Friday
Cash Centre
Central Cash
Management
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Business Requirements
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Cash Centre Activity to monitor the I 7— 10 Tnote
Conformance conformance of cash I These staff 3 coin
Monitoring centre’s to operational I carry out
instructions. In the conformance
context of cash monitoring,
management such cash flow
instructions will relate I forecasting and
to production plans, I cashflow
bond performance
deposits/withdrawals, I monitoring
and instructions
relating to the
movements of ¢
roles
ash to
and from institutions.
Ref: BD/BRD/O17
Version: 0.1
Date: 21/02/2001,
Weekly This service
needs to be
available from
8am to 6pm
Monday —
Friday
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Business Requirements
COMMERCIAL IN CONFIDENCE
Process Description
Cash Centre I Activity to predict the
Forecasting flows of cash into and
out of cash centre’s
whether as remittances
or other flows, e.g.
customer direct
deposits/withdrawals,
deposits to bond or
transfers to other
financial institutions,
from which cash
holding levels, re-
balancing cash
movements,
investment decisions
and bank of England
reporting are
facilitated.
Role (incl. Location (s)
numbers (How many
performing locations)
role)
7-10 Tnote
These staff
carry out
conformance
monitoring,
cash flow
forecasting and
cashflow
performance
monitoring
roles
Ref: BD/BRD/O17
Version: 0.1
Date: 21/02/2001,
Volumes (What
frequency of
running the
process? Any
periodicity?)
Daily
‘Availability
(What are the
service hours?
What fallback
procedures are
in place?)
This service
nm tobe
available from
8am to 6pm
Monday —
Friday
Data
Retenti
(Any special
data retention
needs?)
Usability (user
interface /
training
requirements,
(What rate of
turnover of
users?)
© Post Office Ltd 2003
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Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
Cash Production I Activity to determine I 5 1 Daily This service
Planning and the levels of bulk cash needs to be
Cash trading processing and inter available from
finaneial institution 8am to 6pm
trading necessary to Monday —
meet operational Friday
outflows within the
constraints of the Bank
of England Note
Circulation Scheme
and at minimum levels
consistent with
supply/demand
variability.
Monitoring Cash I Activity to monitor the I 7-10 Tnote Weekly/Monthly I This service
Centre Cash cash holding ‘These staff needs to be
Holding performance of cash I carry out available from
Performance centres against targets I conformance 8am to 6pm
derived from forecasts I monitoring, Monday ~
of in and outflows of I cash flow Friday
cash and bulk forecasting and
processing cashflow
requirements. performance
monitoring
roles
Branch Central I Activity undertaken by I 31 (as Cash I 3 locations I Daily This service
Cash inventory management I centre central needs to be
Management team in CH&D cash mgt) available from
8am to 6pm
Monday
Friday
Monitor Branch I This information feeds I As above ‘As above m This service
Cash holding into the flexible needs to be
performance planning tool to available from
establish the standard 8am to 6pm
rem order by branch Monday —
Friday
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ited End to End Re-Architecture Feasi
Business Requirements
COMMERCIAL IN CONFIDENCE
ity Study
Ref: BD/BRD/O17
Version: 0.1
Date: 21/02/2001,
Flexible Planning I The system which ‘Automatic 1 Runs daily This service
creates the standard needs to be
rem order available from
8am to 6pm
Monday —
Friday
Manual ‘Adjustments to 31 (As Branch) I 3 locations I Daily This service
Adjustments remittances as a needs to be
consequence of available from
branches requesting 8am to 6pm
changes to remittance Monday ~
Friday
Branch Despatch I Conformance check to I As above 3 Dailyjweekly I This service
Conformance establish whether needs to be
Monitoring Branches are sending available from
inward remittances as 8am to 6pm
requested by Flexible Monday —
Planning system, Friday
Delivery Delivery patterns 31 (As branch) [1 Periodically This service
Schedule including route and Usually yearly I needs to be
Planning frequency. available from
8am to 6pm.
Monday ~
Friday
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Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
8.0
Non Functional Requirements
The scope of the this initial study has not included in detail the requirements in this
area however the section is left to provide a focus for subsequent activities which will
populate this section. The section will describe any requirements that apply to the
end-to-end service, or which do not specifically apply at the above service boundaries
‘These will include: -
© Security and any associated liabilities
© What security requirements are placed on PO by other bodies (incl.
regulatory)
© Whatare the threats to the PO business that it is required to protect against
¢ What are the implication to the PO business of these threats to the
business process — cost of breach of security
¢ What is the acceptable/current/planned level of risk such breaches
© Audit - information type, retention period, data retrieval
© What audit requirements are placed on PO by other bodies (incl
regulatory)
© What are the implications to the PO business of missing audit data in this
business process — risk of fraud/errors
© What is the acceptable/current/planned level of such risk
© MIS - information type, analysis, summation, recipients, forms of delivery
© What MIS requirements are placed on PO by other bodies (incl.
regulatory)
© What other business measures may this process provide information feed
for?
«¢ What are the business measures for the business processes that are
required to be supported/automated
© Reconciliation - type, purpose, periodicity, deliverables
© What reconciliation requirements are placed on PO by other bodies (incl
regulatory)
What are the implications to the PO business of inaccuracies in business
data transmitted
© What is the acceptable/current/planned level of such inaccuracies
© Legal and Regulatory requirements
© Potential for Change - limits, types
© Anticipated lifespan of process automation/support and likelihood of
variation of process/tse of process over lifespan.
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Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
8.1
8.1.1
¢ Explicitly required Documentation
© Availability
© What availability requirements are placed on PO by other bodies (incl.
regulatory)
« What are the implications to the PO business of unavailability of this
business process — risk of loss of business/loss of credibility
© What is the acceptable/current/planned level of such risk
© Usability
© What usability requirements are placed on PO by other bodies (incl.
regulatory)
© What are the implications to the PO business of inability to use in this
business process ~ risk of loss of business/loss of credibility
© Whatis the acceptable/current/planned level of such risk
Non-Functional Requirement Assumptions
Security
‘The security policy should be as per the Network Banking security policy which is in
line with Royal Mail Group Policy (ISO 17799)—What-working assumptions should
‘pe-made-cones costs-ef- implement or
del_Net
Lee Bi Tee aS I ee aa eee ee iS eA that the-cost
prineip PE s we—Ass
implement " ele Hane € Il be cheap
‘Action:- Gareth Jenkins to-list-security-assumptions-to-be-used-for-solution-costings
i ae ts from Post Office threat 2 "
made-available tothe study.
Audit e
Itis assumed that there are no special requirements to support auditors other than the
enquiries detailed_under Accounts and Settlement. It_is_assumed_that “standard”
auditing facilities, as provided by an off-the-shelf accounts package, will be sufficient
for auditing by external auditors.
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{ Formatted: Bullets and Numbering )
Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
9.0
PO Business Change Plan Requirements
The scope of this study has not included in detail the requirements in this area
however the section is left to provide a focus for subsequent activities. This section
will cover any specific requirements associated with establishing and implementing
the requirements in the Post Office business and will cover: -
«Target Business Benefits and measurement requirements
* Required implementation timetable including identification of target releases as
defined by the joint Post Office/Fujit ¢ planning proc
© Required phasing or pilot operation. Reference should be made to those
requirements that are to be phased or included in any pilot etc.
© User Training requirements
© Migration activities
© Other Ready for Service’ dependencies and requirements
This section provides information regarding the proposed intention for the
introduction of the business change that will include the work package solution. This
will help inform the designer regarding facilities that will be required to support
service introduction and migration.
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Post Office Li \d to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001,
9.1 Current Business Change Plan
nae attics: atid ain iii Patines i asottr atin
Release $30 - Including Debit Cards, Smartmail, Banking Fixes (incl. Remote Key Management)
Release 40 - inci Welsh Language Receipts, Smartmail Ref Data, Transaction Log improvements, Cash Account Ref Data, APS Enhancements, LFS Pouch Collection Delivery Receipts
Pesavoevewmmen’ TTT TT Pi litt te ’
a Br earn hers,
jotted lines shows impact of including Bureau de Change in S40 ;
“or
tpn REL ri
‘ rt Hat ust \ny consequent impact on $50 -below- not Siig : : ‘
1 I 4 I foatconte upqade T>>>>>>>) iT yt ’ a - Pit i
byt PY pptotI 3555355 ii Pit
istribution/Commital
IRelease $50 - Including E-Top-Ups, OWH/DRS switch to Solaris, ADSL capability,
Design/Development; I 2: Tt Trt
!istribution/commital_! fa tit
seit (6 yet
‘Distribution/Commital
© Post Office Ltd 2003 COMMERCIAL IN CONFIDENCE Page 179 of 180
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Post Office Limited End to End Re-Architecture Feasibility Study Ref: BD/BRD/O17
Business Requirements Version: 0.1
COMMERCIAL IN CONFIDENCE Date: 21/02/2001
10.0 Deliverables
‘The scope of the initial study has not included in detail the requirements in this area
however the section is left to provide a focus for subsequent activities. This section
should describe all explicitly required deliverables.
11.0 Service acceptance requirements
‘The scope of the initial study has not included in detail the requirements in this area
however the section is left to provide a focus for subsequent activities. This section
describes the process by which Post Office will verify that the solution meets the
requirement for the purpose of acceptance. This may involve a Post Office witnessing
programme, and may also require 3" party accreditation. If a formal Acceptance
activity is required then the principles of how this will operate should be described,
particularly with regard to positioning within the overall programme life cycle. This
should describe the scope and method of achieving ‘Acceptance’,
Any additional requirements to support an overall end-to end Service acceptance
process, where Post Office have specified that a multi service domain solution is
required and are acting as overall System Integrators, should also be specified
It is expected that a sensible and realistic proposal for acceptance testing will be
provided.
Appendix A — Information Usages by Process
The attached spreadsheet documents the Data Entities and their usage through the
business process.
Appendix B — Process Model Notes
‘The attached document reports the notes captured within the process model during
process modelling.
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