DN
APPROACH PAPER BY Practus
1
Table of Contents
Section
Page
1
General Points
Generic Flowchart of Modules in Rolling Forecast(RF)
3
Module-wise Timelines for RF
5
Approach Process Followed by Practus for RF
6
Excepted Outcomes of RF Tool
8
Key Drivers
9
Modus Operandi of RF Tool
10
2
Revenue Module
14
3
Production Module
18
4
Cost Module
21
5
Opex Module
25
Employee Cost Module
27
Sales Force Module
30
R&D Module
34
A & P Module
37
Medical Affairs Module
40
ISIT Module
43
HOO Cost Module
46
2
Generic Flow of Modules in Rolling Forecast (RF)
Start
Legends
'Strat‘ Plan & Field
Targets for Reference
Reference
Sub Modules
Domestic Sales Volumes
Export Revenue
Main Modules
Final Output Modules
Input Sheets to HOO Costs
Sales Returns
Consolidated Modules
Slide Number Connector
Pricing
Process Connector
Commercial Excellence
Trade Support &
Revenue
A
Discounts
Production
Capex
4
B
3
Generic Flow of Modules in RF Contd.
3
Sales Force
R&D
R&D
Material Costs
Costs
Opex
Employee
HOO Costs
GM, Admin &
B
Finance
Cost
Industrial
Legal
Costs
Medical
Affairs
Regulatory
Quality
Logistics Costs
A & P
Marketing
Commercial
AR 1
AR 2
AR 3
Excellence
ISIT
C
Medical Affairs
C
Operation
Schedules
HR
A
Exports
Revenue
ISIT
4
Module-wise Timelines for RF
Name of the
Weeks
Name of the Sub Module
Owner of the module
module
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Domestic Sales Volume
Rodrigo Canelas
Export Revenue
Aditya Aole
Sales Return
Sachin
Revenue
Pricing
Himanshu Bakshi
Commercial Excellence
Puspesh Kumar
Trade support & Discounts
Deepak Singh
Production
Production
Sudhakar Tadanki
and Capex
Capex
Ajay Kansal
Material cost
Harshal Darne
Industrial cost
Factory Controller
Logistics cost
Deepak Vazirani
R&D
Sonjai Uppal
ISIT
Anirudha Prasad
Employee Cost
Rajkumar
Sales force
Medical Affairs
Nandan Joshi
A&P
Himanshu Bakshi
HOO Cost
OPEX
- GM, Admin & Finance
Aditya Achalkar
- Legal
Anahita Kumar
- Regulatory
Shefali
- Commercial Excellence
Puspesh Kumar
- Operations
Sudhakar Tadanki
- Export Revenue
Aditya Aole
- Quality
Phalgun Trivedi
AR 1
Nikhil Halwalkar
AR 2
Nikhil Halwalkar
AR 3
Nikhil Halwalkar
Schedules
Nikhil Halwalkar
5
Approach Process Followed by Practus for RF
Submission of Approach Paper & Designing of RF Model
Start
Legends
Start & End
Buddy sitting
Diagnosis &
Completed Task
Defining of
exercise with HODs &
acquaintance with
modules
Pending Task
SPOCs
‘ s-is’ Process
Decision
Ideation on
Designing format &
Submission of
Page Connector
structure of
structure
approach paper
modules
Process Flow
No
Approved
Approved
Take sign off for
Yes
Yes
by
by
design from HOD &
7
Finance?
Business?
Finance
No
Changes
proposed by
No
Communicate
Yes
Business
Finance response to
approved by
Business team
Finance ?
6
Approach Process Followed by Practus for RF Contd.
Modelling & Testing of Individual RF Modules
6
Yes
Changes in
formula
Yes
Changes
Modelling of
Testing for individual
suggested
approved
individual modules
modules by Business
by Business
by Finance?
team?
Yes
No
No
Changes in
formula
Testing for
Communicate
Ditto process for
No
suggested
individual modules
Finance response to
all modules
by Finance
by Finance
Business team
team
Changes in
Modelling for
Testing for
Handover to
formula for
No
consolidated
consolidated
Business and
consolidated
module
module by Finance
Finance
module?
Yes
End
7
Expected Outcomes of RF Tool
Aligned inputs from Business.
Improved input accuracy as access to modules is given to respective HOD’s.
Ownership of sub module lies with each key stakeholder.
Visibility of variances (Actual v/s RF and RF v/s RF) along with reasons at department level.
Visibility on key business drivers to Finance.
Hard stop to RF process due to pre-agreed time lines.
Provide opportunity to redirect resources to better align with strategy
Facilitate effective discussions in CODI and MANCOM
8
Key Drivers
Volume growth
Price increase
Sales mix
New launches
Field target achievements
Sales Force attrition
CpCapacity utilisation
MinMinimum stock level
MinInventory days of
holding
Inventory days of holding
Milk and Peanut price curve
Inflation & FX rates
Cost
Training & Travel Spends
% Spends on consultants
Employee headcount & attrition
Investment/Spends in R&D
9
Modus Operandi of RF Tool
Gantt chart of Rolling Forecast(RF)
2017
2018
Particulars
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
RF 1
RF 2
RF 3
RF 4
RF 5
RF 6
RF 7
RF 8
RF 9
RF 10
RF 11
RF 12
Legends
Forecast
Actuals
Inclusion of New Quarter
10
Modus Operandi of RF Tool Contd.
Degree of Granularity of Rolling Forecast
Name of the module
Degree of Granularity
ASM level
-Channel level
Revenue
-Depot level
-Customer SKU level
Prodution
Customer SKU level
Prodution
Capex
Project level
RM/PM Family level
Material Cost
-Customer SKU level
Cost
Industrial Cost
Cost per kg of net sales (Expense head level)
Logistics Cost
Cost per kg of production (Expense head level)
Expense head level
R&D
-Project level
Cost centre level
ISIT
-Expense head level
-Application level (IO)
Department level
Employee Cost
OPEX
-Grade level
Division level
Sales Force Cost
-Expense head level
Medical Affairs
IO level
A&P
IO level
Department level
HOO Cost
-Expense head level
11
Modus Operandi of RF Tool Contd.
Provision for additional variables: Will be given in each module. E.g. SKUs, expense
heads, depots, channels, Cost Centres, etc.
Model Exclusions: Dairy business, SOP, landing figures, actual sales planning, BOM, actual
production planning, calculation of standard price of RM,PM & FG, employee wise
payroll.
Module classification: Each department will be considered as a separate module and will
have separate input excel workbooks.
No External Links: No external links to tool. Input values has to be paste specials.
Historical data: In each module from Jan-15 onwards with actuals getting populated
every month.
12
Legends for Flow Chart
Start, End
Decision
Process / Task
Page Connector
Input
Module
Information for Reference only
Derived /Output Module
Input Sheets to Sub Modules
Indirect dependency to
Derived
Module
Output
Reference
Process Flow / Direct Link to Module
Module Flow
13
Revenue Module
Module Owner
Module Owner
Finance SPOC
Raphael Radanne
Avani Gandhi
Input Module Stakeholders
Input Modules
Input Owners
Domestic Sales Volume Module
Rodrigo Canelas
Export Sales Module
Aditya Aole
Commercial Excellence Module
Puspesh Kumar
Sales Returns Module
Avani Gandhi
Trade Support & Discount Module
Deepak Singh
Pricing Module
Himanshu Bakshi
14
Interdependency of Modules
'Strat‘ Plan & Field
Targets Reference
Sales Force Module
Domestic Sales
Volume Module
Production Module
Commercial
Excellence Module
Cost Modules
Pricing Module
Revenue Module
AR 1
Sales Returns
Module
AR 2, AR 3
Trade Support &
Discount Module
Dashboard
Export Sales
Module
Employee Cost
Module
A & P Module
R&D Module
15
Input to Output Chart for Revenue Module
Input
Output
1.
'Strat‘ Plan (for reference):
1.
Gross sales volume per SKU (Production Module)
'Strat‘ Plans for 3 Years
2.
Commercial Excellence Module:
2.
Gross and net sales price per kg per SKU (AR1)
Field targets
Current market share %
3.
Projected market share %
3.
Domestic Sales Module:
Forecasted net sales volumes
4.
Commentary by Marketing HOD on sales numbers
4.
Export Sales Module :
Forecasted net exports volumes
5.
Analysis & dashboard
5.
Pricing Module:
MRP
Adjustment in MRP
Competition pricing
6.
Sales Return Module:
Provisions for returns
7.
Trade Support & Discount Module:
Forecast for trade support activities
Discounts/Rebates
8.
Sales Database/SAP:
Historical data for all sub modules
Estimated Modelling Time- 4 weeks
16
Process Flow for Revenue Module
Export Sales
'Strat‘ Plan
Forecasted export
Nikhil
Module
sales
Aditya Aole
Field targets for
CE Module
reference
Puspesh
Domestic Sales
Volume
Forecasted net
sales volume
Module
Rodrigo C.
Sales Returns
Returns volume
Module
Avani
Revenue Module
Analysis/
Forecasted gross
Dashboard
sales volume
Pricing
Pricing
Module
Himanshu
Trade Support
Trade support &
Gross & net
& Discount
sales value
Commentary
discount
Module
Deepak S.
Himanshu
17
Production Module
Module Stakeholders
Module Owner
Finance SPOC
Sudhakar Tadanki
Ajay Kansal
- Deepak Vazirani
- Harshal Darne
- Adrian Rego
Interdependency of Modules
ISIT Module
Cost Modules
Capex Module
Industrial Cost
Module
Domestic Sales
AR 1
Volume Module
Production Module
Exports Sales
AR 2, AR 3
Module
Dashboard
R & D Module
18
Input to Output Chart for Production Module
Input
Output
1. Domestic Sales Volume Module:
1. Forecasted production volumes and closing inventory
Forecasted gross domestic sales volumes
volumes with DOH
1. Export Sales Modules:
2. Check on minimum level of inventory and non negative
Forecasted gross export sales volumes
inventory
2.
S&OP Output:
3. New SKUs to be highlighted
Forecasted production volumes as per S&OP
4. Analysis & dashboard
3.
Industrial Cost Module:
Forecasted factory capex
4.
ISIT Module:
Forecasted ISIT capex
5.
SAP/Database:
Historical production volumes
Actual opening inventory volumes of previous
month
Opening capex for of ISIT & Factory
Estimated Modelling Time - 2 Weeks
19
Process Flow for Production Module
Domestic Sales Volume
SAP /
SAP
& Export Sales Module
Database
Forecasted sales
Actual production
Previous month opening
volumes
volumes
inventory volumes
Adrian
Adrian
Factory capex
Factory Controller
Capex Module
Production
Module
ISIT capex
Anirudha
Closing
Analysis &
Forecasted production
inventory
Dashboard
volumes
volumes
Adrian
S&OP Sheet
20
Cost Module
Module owner
Module Owner
Finance SPOC
Sudhakar Tadanki
Ajay Kansal
Input Module Stakeholders
Input Modules
Module Owners
Material Cost Module
Harshal Darne
Industrial Cost Module
Factory Controller
Logistics Cost Module
Deepak Vazirani
21
Interdependency of Modules
'Strat‘ Plan & Field
Targets Reference
Material Cost
Module
Production
Module
Industrial Cost
Module
Employee Cost
AR 1
Module
Logistics Cost
Module
Cost Module
AR 2, AR 3
A & P Module
Dashboard
R & D Module
22
Input to Output Chart for Cost Module
Input
Output
1.
Material Cost Module:
1.
COGS (AR 1)
Standard price per kg SKU wise, family wise & brand
wise
2.
Expense head wise logistics cost and industrial cost
Standard price of FG
(AR 1)
2.
Industrial Cost Module:
Forecasted industrial costs
3.
Revaluation of year end inventory (AR 1)
3.
Logistics Cost Module:
Forecasted logistics costs
4.
Valuation of closing inventory at standard price (AR2)
4.
Employee Cost Module:
Forecasted logistics personnel cost
5.
Purchase price variance (PPV) (AR 1)
Forecasted factory manpower costs
5.
SAP:
6.
Analysis and dashboard
Historical data for material, logistics and industrial
costs
6.
Production Module:
Production volumes
Estimated Modelling Time - 3 Weeks
23
Process Flow for Cost Module
Industrial
Cost Module
Industrial costs
Factory Controller
Material cost
Production
COGS
volumes SKU wise
family group wise
Material Cost
Production
Module
Module
Analysis and
Cost Module
Logistics costs
dashboard
Deepak V.
Logistics Cost
Module
24
Opex Module
Module Owner: Aditya Achalkar
Opex is further classified into submodules:
Opex Sub Modules
Employee Cost Module
Sales Force Module
R&D Module
A & P Module
Medical Affairs Module
HOO Cost Module
25
Process Flow for OPEX Module
Sales Force
Module
Sales Force cost
Employee Costs
Module
GM, Admin & Finance
Commercial Excellence
Legal
Marketing
Employee cost for
Regulatory
Operation
HOO Cost
FTEs and outsourced
Quality
HR
Module
Start
Medical Affairs
Exports Revenue
ISIT
R&D
Medical Affairs
R&D costs
A & P Spends
spends
Medical Affairs
R&D Module
A & P Module
Module
ISIT
ISIT Module
26
Employee Cost Module
Module Stakeholders
Module Owner
Finance SPOC
Rajkumar Gk
Aditya Achalkar
⁻ Abhinav Jain
Interdependency of Modules
GM, Admin &
Industrial Cost Module
Finance
Legal
Regulatory
Logistics Cost Module
Commercial
Excellence
Marketing
HOO Cost Module
Medical Affairs
Additional Manpower
Employee Cost Module
Operations
Requirement by
HR
Individual Departments
Sales Force Cost
Quality
Module
ISIT
Export Sales
R&D
AR 1
AR 2, AR 3
27
Input to Output Chart for Employee Cost Module
Input
Output
1. HR Team:
1. Department wise employee cost and headcount. (AR1)
Forecasted payroll and headcount including
factory workers and expats
2. Provisions for employee liabilities. (AR2)
Forecasted provision for employee benefits and
statutory liabilities
3. Provision for employee related statutory liabilities
(AR2)
2.
HR Database/SAP:
Historical payroll and headcount including factory
4. Analysis & Dashboard
workers and expats
Historical provision for employee benefits and
statutory liabilities
Estimated Modelling Time - 3 Weeks
28
Process Flow for Employee Cost Module
Forecasted payroll cost and
Actual payroll cost and
Forecasted provision for
headcount including expats and
headcount
employee benefits
factory workmen
Abhinav
Abhinav
Abhinav
HR Database
Employee Costs
Analysis &
Forecasted provision for
Module
Dashboard
employee statutory liabilities
Abhinav
29
Sales Force Module
Module Stakeholders
Module Owner
Finance SPOC
Puspesh Kumar
Avani Gandhi
Input Sheet Stakeholders
Division Level Input Sheets
Input Owners
MCC, NFH, NFT
Rajeev Agnihotri
AMN
Ashish Pande
Export
Aditya Aole
OTST
Rodrigo Canelas
Commercial Excellence
Puspesh Kumar
30
Interdependency of Modules
Revenue Module
Export Sales
OPEX Module
Module
Sales Force
Commercial
AR 1
Module
Excellence Module
Employee Cost
AR 2, AR 3
Module
Input Sheets
MCC, NFH, NFT
AMN
Commercial
Excellence
OTST
31
Input to Output Chart for Sales Force Module
Input
Output
1. Employee Cost Module:
1.
Summary of sales force costs division wise and
Historical and forecasted headcount & personnel
expense head wise (AR1)
cost
2. Individual Input Sheets:
2.
Analysis
Forecasted sales force costs (excluding personnel)
3. Commercial Excellence Module:
Historical and forecasted incentives
4. Export Sales Module:
Historical and forecasted export sales force costs
(excluding personnel)
5. Revenue Module:
Forecasted CSD sales value
6. SAP/Database:
Historical data of Sales force costs (excluding
personnel)
Estimated Modelling Time - 2 Weeks
32
Process Flow for Sales Force Module
Revenue Cost
SAP/ Database
Module
Start
Forecasted MCC, NFH,
NFT sales force costs
CSD Sales Value
Rajeev
Actuals & forecasted
Forecasted AMN sales
Actual sales force
Forecasted Agent
Outsourced
force costs
costs
commission
Ashish
Employee costs
Rajlaxmi
Rajlaxmi
Forecasted Export
sales force costs
Aditya Aole
Employee Cost
Incentive
CE Module
Module
Forecasted CE sales
force costs
Puspesh
Forecasted OTST sales
force costs
Rodrigo C.
Sales Force
Forecasted sales
Analysis
Module
force costs
Forecasted Export
Sales Force Costs
Export Revenue
Module
33
R & D Module
Module Stakeholders
Module Owner
Finance SPOC
Sonjai Uppal
Aditya Achalkar
Interdependency of Modules
Revenue Module
A & P Module
HOO Cost Module
AR 1
Revenue Module
R & D Module
AR 2, AR 3
A & P Module
R&D P&L
34
Input to Output Chart for R&D Module
Input
Output
1.
R&D Input:
1.
R&D P&L (AR 1)
Forecasted R&D costs
Forecasted data for HO spends
2.
R&D HO costs
2.
HOO Cost Module:
Forecasted & actuals HO spends & personnel
costs
3.
SAP/ Database:
Historical data for R&D costs
Historical data for HO spends
Estimated Modelling Time - 4 Weeks
35
Process Flow for R&D Module
SAP
HOO Costs Module
HO Spends &
Personnel Costs
Actual R&D costs & HO
Forecasted R&D costs
spends
Aditya Ac.
Sonjai
Forecasted
R&D Module
R&D PnL
R&D spends
(Consolidated)
36
A & P Module
Module Stakeholders
Module Owner
Finance SPOC
Himanshu Bakshi
Avani Gandhi
- Anirban Basu
- Aagusta Dsa
Interdependency of Modules
OPEX Module
'Strat‘ Plan & Field
Targets for Reference
Medical Affairs
Module 2
Trade Support &
Discounts Module
A & P Module
Logistics Module
Domestic Sales
Volume Module
AR 1
Exports Revenue
Module
AR 2, AR 3
Medical Affairs
Module 1
Dashboard
37
Input to Output Chart for A & P Module
Output
Input
1. Marketing Team
1.
Summary of A&P spends activity level, division level
Forecasted A&P spends for AMN and ELN
& business unit level
2.
Domestic Sales Volume Module
2.
Summary of Open PO’s with ageing report for
Forecasted sales volumes
medical affairs
3.
Medical Affairs Module 1
3.
Expenditure on samples
Forecasted medical affairs A&P spends
4.
Summary of total open PO’s with ageing report
4.
Export Module
Forecasted export A&P spends
5.
Forecasted provisions for open PO’s
5.
SAP/ Database
6.
Analysis & dashboard
Historical data for A&P spends
Open PO dump
Estimated Modelling Time - 4 Weeks
38
Process Flow for A & P Module
Medical Affairs
Medical Affairs
Module 2
Module 2
Provision for Medical
Medical Open PO’s
Domestics &
Affairs
Export Revenue
Provision for Open
Revenue Module
Actual A&P Spends
Open PO Dump
POs other than
Medical Affairs
Rajlaxmi
Rajlaxmi
Rajlaxmi
SAP
Export Module
Forecasted Exports A&P Spends
Analysis/
Forecasted A&P
A & P Module
Dashboard
spends
Anirban/
Aagusta
Forecasted Medical Affairs A&P Spends
Medical Affairs
Module 1
39
Medical Affairs Module
Module Stakeholders
Module Owner
Finance SPOC
Nandan Joshi
Avani Gandhi
Interdependency of Modules
Medical Affairs
‘Strat’ Plan & Field
Module 1
Targets for Reference
Medical Affairs
A & P Module
AR 1
Module 1 & 2
Medical Affairs
AR 2, AR 3
Module 2
40
Input to Output Chart for Medical Affairs Module
Input
Output
1.
A&P Module:
1. Summary of medical A&P spends activity level
Historical data of medical A&P spends
Open PO list
2. Forecast provision for open POs (AR 2)
2.
Medical Affairs Input:
3. Analysis
Activities carried out by Medical Affairs team
Forecasted medical A&P spends
Estimated Modelling Time - 2 Weeks
41
Process Flow for Medical Affairs Module 1
Medical Affairs
A & P Module
Module 2
Medical Affairs Provision
Actual Medical
Forecasted Medical
Medical Affairs 1
Analysis
Affairs Spends
Affairs spends
Nandan
A&P Module
Process Flow for Medical Affairs Module 2
Medical Affairs 2
Medical
Open PO’s
Forecasted Medical
Start
A & P Module
End
Affairs provision
Nandan
42
ISIT Module
Module Stakeholders
Module Owner
Finance SPOC
Anirudha Prasad
Aditya Achalkar
Interdependency of Modules
Sales Force
Module
Opex Module
'Strat‘ Plan/ Budget
ISIT Module
Capex Module
Reference
AR 1
AR 2, AR 3
43
Input to Output Chart for ISIT Module
Input
Output
1.
ISIT Input
1.
Summary of Intercompany spends (AR2)
Forecasted ISIT Opex spends
Forecasted ISIT Capex spends
2.
Summary of ISIT Opex spends by applications(IO)
(AR1)
1.
SAP
Historical data for ISIT Opex spends
3.
Summary of ISIT Capex spends by projects (AR2)
Historical data for ISIT Capex spends
4.
Analysis
Estimated Modelling Time - 2 Weeks
44
Process Flow for ISIT Module
SAP
Capex Module
Actual Opex & Capex
Forecasted Capex
Forecasted Opex Spends
Spends
Spends
Aditya Ac.
Anirudha
Anirudha
Analysis
ISIT Module
45
HOO Cost Module
Input Sheet Stakeholders
Input Sheets
Input Owners
GM , Admin & Finance
Aditya Achalkar
Legal
Anahita Kumar
Regulatory
Shefali Sapra
Commercial Excellence
Puspesh Kumar
Operations
Sudhakar Tadanki
Exports Revenue
Aditya Aole
ISIT
Anirudha Prasad
HR
Abhinav Jain
Quality
Phalgun Trivedi
Medical Affairs
Nandan Joshi
R & D
Sonjai Uppal
A & P
Himanshu Bakshi
46
Interdependency of Modules
Input Sheets
GM, Admin &
Finance
Legal
R&D Module
Regulatory
Quality
Marketing
OPEX Module
Employee Cost
Commercial
HOO Module
Module
Excellence
Medical Affairs
AR 1
Operation
HR
AR 2, AR 3
Exports Revenue
ISIT
R&D
47
Input to Output Chart for HOO Cost Module
Input
Output
1. Individual Input Sheet department level
1. Training calendar
Forecasted HO spends
Forecasted employee cost
2. Travel calendar
Training calendar & cost
3. Summary of HOO costs department wise, expense head
2.
SAP
wise (AR 1)
Historical data for individual HO spends
4. Analysis
Estimated Modelling Time - 3 Weeks
48
Forecasted GM, Admin
Process Flow for HOO Cost Module
& Finance spends
Aditya Ac.
Forecasted Legal HO
spends
Anahita
Forecasted Regulatory
HO spends
Shefali
SAP
Forecasted Quality HO
spends
Phalgun
Forecasted CE HO
HOO Cost
Actual HO Spends
spends
Module
Aditya Ac.
Puspesh
Forecasted Operations
Analysis
HO spends
for all
Sudhakar
input
Forecasted Medical
owners
Employee Cost
Personnel Costs
Affairs HO spends
Module
Nandan
Forecasted A&P HO
spends
Himanshu
Forecasted HR HO
spends
Abhinav
Forecasted Exports HO
spends
Aditya Aole
Forecasted ISIT HO
spends
End
Anirudha
Forecasted R&D HO
spends
Sonjai
49
50