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Business Requirements

Document
Business Case Online Portal
CV PPPM Business Planning
May 2016
Version 1.00

Copyright, Confidential, Tata Motors Ltd

Date

03/06/2016

Changes
Business CaseDocument
Online
PortalBRD

Version
Number

1.00

Initial Draft

1 Document Revisions
2 Approvals
Role

Name

Title

Signature

Date

3 Introduction
3.1 Project Summary
3.1.1 Objectives

Deliver a Business Case Online Portal (BCOP) that enables faster and
more comprehensive development, storage, retrieval and analysis of
business cases

Business Case Online PortalBRD

Prepare a common format for PV and CV with greater flexibility for


providing inputs

Support text searching on project codes, gateway, version, etc

Automate the final report generation and information distribution


process

Ensure consistency and confidentiality of data while simultaneously


providing authorized access to intended users
3.1.2 Background
A Business need emerged towards managing the complexity and diversity of
project financials for all new projects in Commercial vehicle and Passenger vehicle
business units through a standardized all-inclusive IT enabled portal. This portal
will encompass the entire array of new projects in Tata Motors with desired levels
of customization, differentiation and integration.

3.1.2.1

Business Drivers

Senior Management require a portal for convenient access to business case


data and perform a comparative analysis on current as well as historical data
Project leads need to put in manual efforts for generation of final reports.
Hence, there is a need for automation in generation of these reports
Project leads also need to ensure confidentiality and consistency of the data. At
the same time, they need to ensure that access is provided to authorized users

Business Case Online PortalBRD


4 Business Process Overview
Business Case Preparation:

Project lead uses the business case template of the respective business unit
All the inputs of the new project are manually entered into the template

The computations of project financials are taken care of by the business


case template

Risk assessment techniques such as sensitivity analysis and tornado


analysis are incorporated within the business case template. These are
applied to the current business case

Once prepared, the business case resides on the project leads machine

Project financials PPT is prepared by the project lead on the basis of the
business case. The PPT consists of details such as key financial metrics,
overall business case assumptions, profit & loss statement, gateway gap
analysis and NPV cadence

The business case and the presentation are reviewed by the group lead

SPOC collates the project PPTs and generates the final review PPT

Business Case Online PortalBRD

Review:

Prior to gateway review, the business case and the presentation is mailed to
all stakeholders with read-only access

Changes discussed during the review meeting are incorporated in the


business case

Once gateway review is done and approved, the business case is frozen.
Final version is circulated with version/gateway stamp

A back-up copy of the final version is kept on the shared folder accessible
by all project leads

Business Case Online PortalBRD


Report Generation:

Monthly MIS:
o MIS data is collated in excel spreadsheets for all domestic and IB to
be launched products for all LOBs. MIS related to launched products
in the domestic product is also tracked and collated for a period of two
years from SOP
o MIS data includes a comparison between the planned and current
amounts of the following parameters: Volume, Ex Works NDP/FOB,
VME, PME, Net sales, DMC, VCC, Warranty & PDI, Outbound logistics
and Contribution
o The planned values for all parameters except volume are taken from
DR2 gateway business case. The planned values for volume are taken
from the B0 budgeted volume
o The current values for parameters such as DMC, VCC, etc. are taken
from plant MIS. The current values for parameters such as Warranty,
outbound logistics, etc. are taken from corporate MIS
o An executive summary PPT is prepared from the monthly MIS and
financial summary
o The executive summary PPT consists of the following data:

Launched products : Budget Volume Variance status, Categorywise Contribution Earners & Losers, Contribution Variance

To be launched products : Budget vs Actual Realization Gap,


Contribution Variance, Financial summary of products

Financial Summary
o Financial summary is prepared to track the key financial metrics of all
domestic and IB models in post DR2 gateway status. Launched
models are also tracked in the financial summary for a period of six
months from SOP

Business Case Online PortalBRD


o Financial metrics such as NPV, revenue, contribution and volume are
tracked for all the models at current gateway status v/s the DR2
gateway status
Scope for improvement:

The current formats used by CV & PV are suited to the needs of the
respective business units. This has resulted in some variation in the formats
of working sheets and information display

A repository of history data is maintained in a shared folder. Getting


data with various combination of parameters across project/ version-wise/
period-wise require additional manual efforts Hence, Consolidation of these
repositories into central repository will prove beneficial

Final report generation process requires some manual efforts. This


consumes time of the project leads, which can be used in more valueadding activities

To maintain the confidentiality of data, files are shared with authorized


users through e-mail. There is some scope of automation in the file sharing
process

4.1 Proposed Business Process (To-Be)


Business Case Preparation:

The project lead will enter information such as the product name into a user
interface

The user interface will be linked to a central repository

The most recent business case corresponding to the input information will
be populated into the business case

The user can modify the input values as desired

The computations of project financials are taken care of by the business


case template

Once prepared, all input values and other important variables will be stored
into the central repository

Business Case Online PortalBRD

After the maker prepares the business case, the case will be automatically
sent to the checker. Once validated, the checker will again upload the case
to the database. The case will automatically go to the reviewer. After
verification, the reviewer will certify the business case as official

Project financials PPT will be generated on the basis of new business case
data in the central repository

SPOC will collate the project PPT and generate the final review PPT

The portal must not allow the same version to be uploaded twice

All changes in the business cases must be logged

Offline access must be provided to the authorized users

Consistency and confidentiality of data must be maintained

Business Case Online PortalBRD

Review:

Prior to gateway review, the business case and the presentation will
automatically mailed to all stakeholders with read-only access

Changes discussed during the review meeting will be incorporated in the


business case. This data will get updated in the database

Once gateway review is done and approved, the business case will be
frozen. Final version will be circulated with version/gateway stamp. Only the
frozen gateway business case versions will be retained in the database

Report Generation:

be

Business Case Online PortalBRD

The interface will allow searching for any business case on the basis of
product name, project name, project code, gateway status and versions
within gateway status

The following reports will be automatically generated:


o Monthly MIS excel spreadsheet and executive summary PPT
o Quarterly report
o Financial summary
o Trend Analysis

The data for monthly MIS, executive summary and financial summary will be
automatically collected from sources as mentioned in the as-is process

Trend analysis will be available for all line items

The interface will have a feature for comparative analysis of data across
projects or across versions within the same projects. This feature will be
available for major line items such as Volume, NDP, DMC, VCC, FCC, etc.

Aligned risk assessment through simulation techniques such as Monte Carlo


Analysis, Tornado Analysis will be provided as stand-alone features within
the portal

Once reports are finalized, they will be available for three months timeline

Benefits in Proposed way of operation:

Past & Current data will be available in central database to all


authorized users

All possible validation checks will be incorporated leading to minimum


errors

File sharing to authorized users will be automated

Access to data and system can be controlled at user level and


hierarchical level

Application will generate working files, PPTs , final reports in Standard


format for any project data

Fetching data with various combination of parameters possible

Generation of waterfall and tornado graphs will be automated

Business Case Online PortalBRD

Above flexibility will lead to more comprehensive analysis on the


available data

In case of any change in business practice, change implementation


will be faster and easier

Business Case Online PortalBRD


5 Business Requirements
The requirements in this document are prioritized as follows:
Value

Rating

Description

Critical

This requirement is critical to the success of the project. The project w


without this requirement.

High

This requirement is high priority, but the project can be implemented


without this requirement.

Medium

This requirement is somewhat important, as it provides some value b


proceed without it.

Low

This is a low priority requirement or a nice to have feature, if time a

Future

This requirement is out of scope for this project, and has been include
future release.

5.1 Functional Requirements


Req#

Priority

Description

Rationale

General / Base Functionality

FR-G-001

A new central repository shall be


created to house the data
corresponding to business cases

Single repository
simplifies storage,
retrieval and analysis
of business case data
Common format will
ensure common data
types for further
processing. It will also
improve the
readability of
business cases

FR-G-002

A common template of business


case shall be created for CV and
PV

FR-G-003

The portal shall not allow same


version to be uploaded twice

To ensure data
consistency

FR-G-004

Features for aligned risk


assessment such as Monte Carlo
analysis, tornado analysis shall be
incorporated within the portal

For risk analysis


purpose

FR-G-005

File sharing shall be completely


automated.

To reduce manual
efforts

Business Case Online PortalBRD


Req#

Priority

Description

Rationale

Security Requirements

FR-S-001

All authorized users except


business planning team shall have
read-only access to the files and
database. Business planning team
shall have write access

To safeguard data
confidentiality and
consistency

Offline access shall be provided to


authorized users

To ensure availability
of data

Networking Requirements
FR-N-001

Reporting Requirements
The following reports will be
automatically generated:

FR-R-001

FR-R-002

Monthly MIS spreadsheet


and executive summary PPT
Quarterly report
Financial summary
Trend Analysis
Project financials PPT

Features for trend analysis and


comparative analysis shall be
incorporated in the portal

Automatic generation
of the reports will
save time and efforts
of the project leads,
which can be used in
more value adding
activities

For convenient and


quick comparative
analysis of data

Usability Requirements

FR-U-001

User interface shall be created


with search features on the basis
of product name, project name,
project code, gateway status and
version

This will allow for


convenient fetching
of business case and
comparative analysis
of data

Any changes made to the


business case data shall be
logged with user ID and date/time
stamp.

For change
management

Audit Requirements

FR-A-001

Business Case Online PortalBRD


5.2 Non-Functional Requirements
ID

Requirement

NFR-001

The central repository shall accommodate up to 100 users concurrently

NFR-002

High availability and backup of the database shall be maintained

6 Appendices
6.1 List of Acronyms
DMC

Direct Material Cost

FCC

Fixed Conversion Cost

FME

Fixed Marketing Expenses

FOB

Free On board

IB

International Business

LOB

Line of Business

MIS

Management Information System

NDP

Net Dealer Price

NPI

New Product Introduction

NPV

Net Present Value

PDI

Pre-Dispatch Inspection

Business Case Online PortalBRD


PI

Project Initiation

PI/ CR

Price Increase/ Cost Reduction

VCC

Variable Conversion Cost

VME

Variable Marketing Expenses

6.2 Glossary of Terms


Business Case
A Business case is a comprehensive document for financial assessment of a
business project.

Material Cost
Material Cost refers to Direct Material Cost which includes cost of all physical
aggregates.

Variable Conversion Cost


Variable Conversion Cost refers to Power & Fuel, Indirect Materials & Tools, Freight,
and Purchase Transfer of Product/Services. These vary with the number of units
produced.

Fixed Conversion Cost


Fixed Conversion Cost refers to machinery spares, Salary & Wages, Other Fixed
costs. These remain fixed within an output range and time period.

Variable Marketing Expenses


Variable Marketing Expenses are part of Selling Overheads and consist of several
items like dealer incentives, billing discounts, financier incentives, direct sale

Business Case Online PortalBRD


dealer compensations, Loss pool provisions etc. These vary with every deal at Point
of Sale.

Fixed marketing Expenses


These include promotional expenses towards Photography, Press, TV, Web, Radio,
Regional spends, Artworks, Printing, Processing and other Launch events. These
remain periodically fixed.

Pre-Dispatch Inspection
PDI refers to the expenses incurred towards the Dealer Pre-Dispatch Inspection of
vehicles.

Outbound Freight
For CV Outbound Freight is a part of Distribution Overhead and refers to the freight
expenses incurred towards vehicle dispatches from plants to various RSOs and
dealerships across the country.

Depreciation
Depreciation is a fixed non-cash cost expensed to the income statement as a
charge for using fixed tangible capital assets.

Single point of contact


Single points of contact are senior members of sections or groups within the
principle technical functions assigned to the project for key technical aspects of the
project. Operating within a matrix structure they will have dual reporting
relationships, one to the function head and two to the Project Manager