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IMPACT Overview & R3/S80 Update
Briefing for Development and
ITU teams to support
awareness + impacting/
estimate production
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Agenda FUJITSU
» Objectives
>» IMPACT Programme Release Schedule
» Implications for Horizon estate
— Pre-S60 overview
— Release 1/S60 overview
— Release 2/S70 overview
— Release 3/S80
— Highlights
— Initial position
— Migration overview
— During migration
— End position
— Requirement summary
>» Next Steps
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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Objectives FUJITSU
Provide briefing on overall IMPACT Programme requirements and
proposed solution design
— for general awareness
— to help preparations for the Release 3/S80 costing/resourcing estimates for
solution testing, introduction and on-going support that are currently
scheduled to be completed during March
Programme Context - Release 1 (S60), Release 2 (S70) and Release 3
(S80)
Requirements for S80 originally scheduled for sign-off by mid-March
with Design Proposal sign=off by 31/3/04. Requirements currently
behind schedule (+1 week)
Post Office need revised costing to support 31/3/04 business case
review to obtain authorisation against projected budget requirements
Work conducted under CT179 which is managed by Bill Reynolds
Commercial Terms are currently scheduled for completion by 1/4/04
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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IMPACT Programme Release Schedule FUJITSU
» Release 1/S60 — introduction of new POL FS (SAP) system
to support cash ledgers
» Release 2/S70 — new POL reference data system (NRDS)
and enhanced POL Sales MIS (no Horizon change
requirements)
>» Release 3/S80
— POL FS (SAP) becomes POL operational financial system
— Weekly Cash Account replaced by monthly Branch Trading
Statement
— OPTip/CBDB family of legacy systems decommissioned
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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Overview ... Pre-S60
Counter
Application
Reference
Data
Management
Information
‘Transaction
Management
(Horizon Host)
Logistics Feeder I
IMPACT R3/S80 Overview
(SAP/ADS)
Cash
Management
Stock
Warehouse
Management
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Reference
Data
Management
Information
Stock
Warehouse
Management
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IMPACT Release 1/S6Q¢
)
Lf
“<
Counter
Application
‘Transaction
Management
FUJITSU
RMG
Financials
Cash
I Management
I (SAP/ADS)
7
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IMPACT Release 2/S70 Overview FUJITSU
Me RMG
Financials
(ES-FS)
ort ir
RMG
HR
and d (SAP/IR)
j
to
Transaction
( Management
a
ee
Reference
Data
Logistics Feeder fh
Service I fp
IMPACT R3/S80 Overview — Development & ITU 8/3/04
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IMPACT Release 3/S80 Highlights FUJITSU
POL FS (SAP) becomes Post Office operational accounting system
- Ledgers based on daily Horizon summarisations replacing weekly Cash Account feeds to
legacy/CBDB systems
- CBDB decommissioned following cut-over to POL FS.
— POL FS feeds corporate Royal Mail Group financial systems
— Handling significantly more data/users than at S60
— Additional external feeds
Production of weekly Cash Account at branch replaced by Monthly Branch Trading
Statement (BTS)
- BTSis a local branch report that is not forwarded to the central systems
— Data retention at branch extended to 42 days (to be confirmed based on infrastructure constraints)
— Branch reports processing month’s data and therefore will take longer
All non-transaction Stock is “controlled” (becomes value stock)
—- Branch reports present stock holdings in volume (not value) terms
Horizon host system (TMS) becomes primary data source
— OpTIP feed de-commissioned
- TMS flows to/from POL Sales MIS, SAP HR, CAPO, SAP ADS, POL FS (analysis on-going in this
area)
- Simplified reconciliation processes/reporting from Horizon
Requirement for significant reference data management support in build up to and
during migration process
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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IMPACT Release 3/S80 Initial Position
Clients
Counter
Application
Reference
Data
Other POL &
Client SystemsI a ah
Information
-
‘Transaction
Management
Logistics Feeder
Service
IMPACT R3/S80 Overview
Cash
Management
(SAP/ADS)
Stock
Warehouse
Management
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IMPACT R3/S80 Migration Overview FUJITSU
Wed
Week 1
capa
POL-FS
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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IMPACT R3/S80 End Position FUJITSU
Clients Management EMG
Information Euaneials
(SAP/HR) (ES-FS)
: Stock
ae ee ec ic) Warehouse
pplication agement Management
Other POL &
Client Systems
Reference I
Data ogistics Feed
Cash :
Management I
Service
(SAP/ADS)
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IMPACT R3/S80 Requirement Summary FUJITSU
» Branch Trading Statement
— Replaces Cash Account but still produced on Wednesdays
— Monthly trading period timetabled by ref data
— Branches can be on different timetables to optimise central support
— Signed copy of Statement held at branch, event sent to POL MIS
— Branch office staff notified at login if in wrong trading period
Daily Cash Declarations
— Option to identify variances for shared SU declarations
— Reminder to optionally declare at login if not completed previous day
— Office level “Variance” report to support local branch management
Stock
— Adjustments accounted for at “adjustment” rather than sale price
Revaluation
— Removal of revaluation process
» Data Retention
— Branch data retention increased from 35 to 42 days (to be confirmed)
IMPAC 'S80 Overview — Development & ITU 8/3/04
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v
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IMPACT R3/S80 Requirement Summary ..... FUJITSU
> Transaction Correction
— Automating current paper based “Error Notices” for actioning POL
authorised handling of branch suspense accounts
— POLFS issues Transaction Corrections to be performed at branch by
manager/supervisor
— Manager/supervisor notified at login if outstanding Transaction Corrections
» Stock Unit Balancing
— To balance SU need to either “make good” (new function) or address
variances through new “local adjustment” function
- “Make Good” function modifies previous declarations and is included on
variance Report
— “Local adjustment” clears SU discrepancy and effectively move variance to
“adjustment account” held at branch level to be addressed by
manager/supervisor
— “Local adjustment’ transactions to be added to existing Office Weekly
Suspense Account report
— To balance final SU at branch, manager/supervisor must clear local
adjustment account to zero value, e.g. make good, arrange with POL central
to convert to a loan (actioned via Transaction Correction)
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S80 Overview — Development & ITU 8/3/04
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IMPACT R3/S80 Requirement Summary .....
>» Reports
— Data range added to Sales Report
— Reprints to apply to previous and current trading periods
— New trial/final balance report
>» TMS
— Summarisation for POL FS ledgers
— Feeds POL MIS, SAP HR, POL FS, SAP ADS, etc
— Simplified reconciliation removing APS/TPS report
FUJITSU
— all reports involving stock changed to remove value information
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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Next Steps FUJITSU
>» CD comments back to customer 18" March
— Phil Boardman consolidating Fujitsu comments
— Feedback to Phil by lunch time Tuesday 16° March
— Internal review of comments Wednesday 17‘ March
» CD assumed to be baselined by 23 March for purposes of
DP/CT work
Post Office Business Case review 31% March
— Initial round of design/costing completed 26' March
— Fujitsu review to determine release of input for POL Business Case
» Final DP/Costings/CT to be completed mid-April
— Final costings to be available for internal review by 8" April
v
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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FUJITSU
THE POSSIBILITIES ARE INFINITE
Fujitsu -
The Possibilities Are Infinite
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Automated (Cash) Rems FUJITSU
>» New process for cash Rem In/Out at branch
— Handling of stock Rem In/Out unchanged
» Objective
— Branch liable for cash at point of delivery until collection
— Accurate and more timely accounting for cash in network
— Improved cash management
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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Automated (Cash) Rems ...Rem In FUJITSU
>» SAP ADS will provide Horizon with details of cash pouches
prepared at cash centre for delivery to branches
» Agent selects cash pouch delivery (n.b. different from stock)
» Pouch bar code scanned (new type C reference data used
to distinguish between cash and stock pouches)
» Pouch id used to locate details provided by SAP ADS
— Details manually entered using printed document provided in pouch
if no electronic notification available
» Stock unit cash position updated immediately to reflect
delivery value (change to current process)
» Remittance In receipt printed for checking pouch contents
» Discrepancies handled as per current process
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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Automated (Cash) Rems ...Rem Out (1) FUJITSU
Pouch Preparation and Rem Out
» Pouch bar code scanned
» Pouch filled and remittance details entered
— Bar code indicates whether remittance for cash or stock pouch
» Remittance Advice Note printed and placed in pouch
» Remittance Receipt printed for pouch which is held awaiting
collection
» Cash Rem’d Out of Stock Unit into branch suspense
account (new product), I.e. change to current process
» New Remittance Reversal transaction provided to enable
cash pouches awaiting collection to be reversed and the
cash re-allocated to a branch Stock Unit
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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Automated (Cash) Rems ...Rem Out (2) FUJITSU
Cash Pouch Collection
» New Reference Data introduced to identify branches that
use carriers to make cash collections
» Bar code on carrier id card (Authorised Collection Card -
ACC) swiped/checked on Horizon
— Manual entry of ACC id also supported
— New Reference Data used to define validation rules
>» Pouch(es) awaiting collection scanned and matched with
Horizon records
— Facility to manually input date/time for contingencies
» Pouch collection receipts printed for carrier and branch
» Branch accounts updated to reflect cash collection
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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Derived Cash Position
> Current branch ONCH (overnight cash on hand) process
forwards branch cash declaration details to SAP ADS at
EOD (7pm)
>» EOD process extended to calculate Horizon derived cash
position taking into account previous starting position and
movements within the day (sales and Rems)
— Value of cash in pouches awaiting collection shown separately
— Derived position to be used by SAP ADS for cash planning if no
declaration available
— If non-polled, SAP ADS uses historical data for planning
» Existing LFS/SAP ADS AIS extended to include additional
information
— Proposed that current SLAs/timescales will be retained
oO
New Branch ONCH Processes (1) FUJITSU
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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New Branch POL FS Summary Processes (1) _ FUJITSU
Branch Cash Position for POL Ledgers
» EOD process at branch calculates overall cash movement
that have occurred at the branch during current trading day
— Cash and near cash totalled separately by individual category, e.g.
cheques despatched, cheques on hand, etc
— Rem In/Out data includes pouch ids
— Reference Data defines mapping between Horizon products and
POL Chart of Account lines, also whether transaction summarisation
required or individual transaction details
» Data harvested from branches (new flow)
» If data not sent to centre (e.g. non-polled, counter down),
branch will also calculate and forward individual records for
previous, as well as current period at next EOD
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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New Branch POL FS Summary Processes (2) _ FUJITSU
Branch Cash Position for POL Ledgers ...
» New Horizon/POL FS(SAP) AIS currently being defined
— Expected to be similar to approach adopted for OpTIP file transfer,
l.e. multiple files
— Data has to be in POL FS by 7.30am on day B
— Hosting of POL FS, procurement and infrastructure associated with
interface will be subject of separate design/costing activity
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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Migration FUJITSU
» POL FS (SAP) Ledger flow
— Opening cash/near cash positions at branch
— Based on same product/chart of account mappings
> Soft Launch options
— Branch opening positions for ledgers (activation/deactivation)
EOD transaction summaries for ledgers
— EOD derived cash position for SAP ADS
Cash pouch details from SAP ADS distributed to branches
Revised cash Rem-In & Rem-Out/collection processes
Note: Reference data requirements for soft launch products??
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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New Reference Data - Recap FUJITSU
» Authorised Collection Card (ACC) bar code details
— Type C data in line with standard practice for tokens
— Format details used to verify validity date and check digit
» Remittance Pouch bar code details
— Type C data in line with standard practice for tokens
— Format details used to verify correct pouches used for cash/coin collection
» Carrier Cash Collection branches
— Type Areference data (dummy product) indicating whether branch supports
carrier or Royal Mail Special Delivery cash collections
» New “Cash in Pouch” product
— Type A data includes mapping to Cash Account line
— Used to record value of cash pouches made up and awaiting collection from
branch
» Product to Chart of Accounts mapping
— Type C data
— Defines mapping and transaction summarisation requirements
» Products to support Soft Launch requirements
IMPAC 'S80 Overview — Development & ITU 8/3/04
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Available Documentation ..... Requirements FUJITSU
» Conceptual Designs produced by POL
Planned to be baselined by 23/9/03
Draft documents currently available for ONCH and Automated Rems
Draft LFS/SAP ADS AIS update available
Draft Horizon/POL FS (SAP) AIS planned for 19/9/03
Assumed no changes required to RDS/RDMC AIS
“Project 1 CD” and “Project 3 CD” folders in:
<shared drive>\E2E Re-Engineering\Initial Requirement Analysis\
Conceptual Designs\Release 1
Process models and user interface definition logic modelled in
Popkin System Architect with diagrams reproduced in MS Word
Documents
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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Available Documentation ..... Design FUJITSU
» Design Proposal produced by Fujitsu
— Planned to be baselined by 3/10/03 (assuming no significant last
minute changes to requirement)
— Draft document produced by Gareth Jenkins
— “Release 1” folder in: <shared drive>\E2E Re-Engineering\Initial
Requirement Analysis\ DesignProposal
IMPACT R3/S80 Overview - Development & ITU 8/3/04
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Next Steps
FUJITSU
Planning to agree Fujitsu approach and produce costing/resourcing
estimates by 23/9/03
CS/Testing confirm activity achievable within S60 timescales
Testing activities:
Confirm requirement statements in CDs are testable
Establish cost/resource estimates for E2E specific testing activities
statements (doesn’t need to be completed by 23/9/03)
Identify support required to achieve above
CS Activities:
— Review/revise/verify SLA obligations adequately covered in CDs
Review/revise draft acceptance criteria associated with requirement
— Establish incremental cost/resource estimates for E2E specific release and
on-going support activities
— Identify support required to achieve above
Co-ordinate response via Bill Reynolds (E2E PM)
S80 Overview — Development & ITU 8/3/04
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FUJITSU
THE POSSIBILITIES ARE INFINITE
Fujitsu -
The Possibilities Are Infinite