Description
Human Resource Information management system implementation in Sandvik using Peoplesoft
source Management Informa
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t is only used for sending notifications.)
his mailbox is only used for sending notifications. Contact your local HRSC for any assistance.
1
TABLE OF CONTENTS
Sandvik – An Overview________________________________________________3
Corporate Structure.........................................................................3
Human Resource Management Information System_________________4
Human Resource Processes..............................................................4 Sandvik HR Information system........................................................5 About PeopleSoft.............................................................................5 PeopleSoft HCM Implementation at Sandvik......................................5
Database System at Sandvik__________________________________________8 Manager Self Service (MSS)___________________________________________9
Introduction....................................................................................9 Business Process...........................................................................11 Inputs and Outputs........................................................................13 Reports.........................................................................................15
eRecruitment_________________________________________________________18
Introduction..................................................................................18 Business Process...........................................................................20 Inputs and Outputs.......................................................................23 Reports.........................................................................................26
Project Implementation______________________________________________29
Development and Testing...............................................................29 Migration, Integration and Support.................................................30 Advantages and Limitations...........................................................32
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SANDVIK – AN OVERVIEW
Sandvik is a Swedish company founded Göransson in in 1862 by Göran Fredrik Sandviken. It is a high-technology engineering group and a world-leader in tooling, materials technology, mining and construction. It has about 44,000 employees in 130 countries, with annual sales of approximately SEK 86 billion.
CORPORATE STRUCTURE
Sandvik consists of three business areas as following:
? ? ?
Sandvik Material Technology Sandvik Tooling Sandvik Mining and Construction
MATERIALS TECHNOLOGY
The Materials Technology business area specializes alloy steels and, to a lesser extent, other special alloys.
SANDVIK TOOLING
in
speciality
The tooling business area is primarily concerned with the production and development of metal cutting tools. Manufactures of carbide tipped tooling for metal cutting applications. It is composed of several brands as a result of Sandvik acquiring other corporations and keeping their brands. Tooling began as Sandvik Coromant and Coromant remains one of Sandvik Tooling's most important brand.
?
Another brand is the Dormer Tools company of Sheffield, England. Formerly known as the "Sheffield Twist Drill and Steel Co. Ltd" whose brand name is "Dormer".
?
MINING AND CONSTRUCTION
? ?
Crushers (hammers)
Hydraulic breakers for Excavators and demolition machines.
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Manufacture cutters and ground engagement wear parts (Cutting tools and replaceable teeth)
? ?
Mining machinery
HUMAN RESOURCE MANAGEMENT INFORMATION SYSTEM
Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. In simple sense, HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.
HUMAN RESOURCE PROCESSES
Human resources management comprises several processes. These processes can be performed in an HR department, but some tasks can also be outsourced or performed by line-managers or other departments. When effectively integrated they provide significant economic benefit to the company. The broad processes are
? ? ? ? ? ? ? ? ?
Workforce planning Recruitment (sometimes separated into attraction and selection) Induction, Orientation and On boarding Skills management Training and development Personnel administration Compensation in wage or salary Time management Travel management (sometimes assigned to accounting rather than HRM)
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? ? ? ? ?
Payroll (sometimes assigned to accounting rather than HRM) Employee benefits administration Personnel cost planning Performance appraisal Labor relations
SANDVIK HR INFORMATION SYSTEM
Sandvik selected PeopleSoft's Human Capital Management (HCM) solution to manage its human resources (HR) information for 37,000 employees worldwide in June 2003. It decided to deploy PeopleSoft as part of a comprehensive re-engineering project to create consistent HR processes across the 130 offices and significantly streamline administration.
ABOUT PEOPLESOFT
PeopleSoft, Inc. was a company that provided human resource management systems (HRMS) and customer relationship management (CRM) software, as well as software solutions for manufacturing, financials, enterprise performance management, and student administration to large corporations, governments, and organizations. It existed as an independent corporation until its acquisition by Oracle Corporation in 2005. The PeopleSoft name and product line are now marketed by Oracle. PeopleSoft is the world's leading provider of application software for the real-time enterprise. PeopleSoft pure Internet software enables organizations to reduce costs and increase productivity by directly connecting customers, suppliers, partners and employees to business processes on-line, in real time. PeopleSoft's integrated, best-in-class applications include Customer Relationship Management, Supply Chain Management, Human Capital Management, Financial Management and Application Integration. Today more than 5,100 organizations in 140 countries run on PeopleSoft software.
PEOPLESOFT HCM IMPLEMENTATION IN SANDVIK
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SOFTWARE
Sandvik has chosen PeopleSoft HCM ERP solution. The version used is 8.9.
IMPLEMENTATION STYLE
Sandvik has chosen to retain some of the modules of PeopleSoft HCM without any customizations, while it has decided upon a few mildly customized modules and one completely customized module. In other words, the implementation is a mix of vanilla and customized style. Also, the implementation and maintenance is mainly carried out by Accenture Services Pvt Ltd while the operations are jointly handled by Sandvik and Accenture in the form of a Shared Service Centre (SSC). If we look at the conversion strategy from legacy system to the ERP, it has been done in a phased manner across Sandvik based on geographies.
STATUS AND PHASE
As mentioned earlier, the system was implemented in a phased approach. The various rollouts and their respective geographic regions are as follows: Rollout 1st 2nd 3rd 4th
MODULE
Regulatory Region Sweden, Finland and USA Great Britain and Germany France India and South Africa
Phase Onward and Upward Onward and Upward Shake down Go live
The implementation currently involves four modules
• • • •
Employee Self Service (ESS) Manager Self Service (MSS) Workforce Administration eRecruitment
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SYSTEM SUPPORT
As graphically illustrated above, the system allows the end user to carry out some basic transactions. However, certain transactions require the involvement of the operations team, Shared Service Center (SSC). There are two types of transactions at this level. The first type includes the transactions that require no decision making. This is handled by the Accenture part of the SSC, called the PeopleLine. The second type includes the transactions that require some decision making. This is handled by the Sandvik part of the SSC. The fourth type of transaction requires the HR managers of Sandvik to take crucial decisions.
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DATABASE SANDVIK
SYSTEM
AT
Sandvik utilizes Oracle database for the ERP implementation. The chief record is the job data table PS_JOB. The record contains all the job related information for all employees across the organization ordered by the employee id and the effective date. The various key fields are
• • • • •
Employee ID Employee Record Number Effective Date Effective Sequence Transaction Type
PeopleSoft has a strong technical advantage of effective date. Effective date is the date from which the row becomes effective. It does not reflect the date of addition of the row. It helps in planning as well as execution. The user has the option to add a present row, future row or a past row. Employe e ID 1234 Employe Effective e Record Date No 1-1-2000 0 Effective Sequenc e 0 Effective Status A Transactio Salary n Type HIR 2000 Supervis or 5555
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1234
0 0 0 0 1 1
1-1-2001 1-1-2002 1-1-2002 1-1-2003 1-1-2004 1-1-2005
0 0 1 0 0 0
A A A I A I
PRO XFR XFR TER REH TER
3000 3000 3000 3000 3500 3500
6666 7777 6666 6666 8888 8888
1234 1234 1234 1234 1234
Job Data Sample
In the above example, an employee (1234) is hired wef 1st Jan’00 with a salary of 2000 and he is required to report to 5555. He is promoted wef 1 st Jan’01 and his salary increased from 200 to 3000. His new supervisor is 6666. The HR department transfers him to a new supervisor 7777. However, on the employees’ resistance, the action is reversed by transferring him back to 6666 with the same effective date 1st Jan’02. He is terminated wef 1st Jan’03. His effective status becomes inactive. He is rehired wef 1st Jan’04 with a new salary and supervisor. His employee ID is retained and his status is made active. However, to distinguish between the jobs, his employee record number is changed from 0 to 1. He is terminated wef 1st Jan’05.
MANAGER (MSS)
INTRODUCTION
SELF
SERVICE
MSS is a completely customized module developed by Accenture on request of Sandvik. The functional objective of the module is to allow managers to initiate a transaction on any of their direct reportees. The ultimate technical objective can be seen as the insertion of a row in the Job Data table for the reportee. The row carries new information about the job and other related aspects.
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TRANSACTIONS
The module can be used to initiate any of the following transactions:
• • • • • • •
Transfer Promotion Salary Change Status Change Termination Leave of Absence Reporting Change
SCOPE
The module can be used to change any of the several job details. Some of the important ones are:
• •
Supervisor Compensation eligible for Compensation Period monthly Location Department working in Status leave
- Whom will the employee report to in future - What is the compensation the employee is - What is the frequency i.e. hourly, weekly, - Where would the employee be working - What department would the employee be - What is the status i.e. active, inactive or on
•
• •
•
ACCESS
The module is accessible to all the users provided with managerial access to the PeopleSoft portal. It is used by managers (employees with direct reportees), HRAs (human resource administrators) and SSC (shared service center).
ROLES
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Typically, in a MSS transaction, each user plays one of the below mentioned roles. However, not all the roles are required in all the transactions. The roles are:
ORIGINATING LINE MANAGER
OLM is the manager who initiates the MSS transaction on his direct reportee. He decides upon the new attributes of his job. He is also required to choose the RLM, GFR and HRA for approval of the transaction. He can save the transaction as a draft or submit the transaction for initiating the approval process.
RECEIVING LINE MANAGER
RLM is the manager who would become the new supervisor of the employee if the transaction is successfully completed. Obviously, RLM is required only in transfer, promotion and reporting change transaction. He can change any detail in the new profile of the employee. He can approve, deny or pushback the transaction.
GRANDPARENT
GFR is a peer of the OLM and his role is to review the transaction and make a comment if required. He cannot edit any fields. He cannot deny or pushback the transaction.
HUMAN RESOURCE ADMINISTRATORS
HRAs are the HR managers of Sandvik. They have complete autonomy to change the fields. They can approve, deny or pushback the transaction.
SHARED SERVICE CENTER
The SSC is a group of database administrators who finally approve the transaction and signal automatic insertion of a row into the job data. Their job is to look out for any potential issues or incompatibilities on the database side. They also act as the last check before the data is finally entered.
BUSINESS PROCESS
All MSS transactions have a predefined approval process depending on the type of the transaction. However, there are special cases when the
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approval process for the same transaction varies slightly across different countries.
TYPICAL MSS TRANSACTION
All MSS transactions involve the initiation and all or some of the 4 steps of approval. The generic transaction process is as depicted below.
MSS Transaction Business Process
The diagram is self explanatory. The green arrow represents the normal flow required for approval. The red arrow represents pushback to the OLM. The process is terminated whenever an approver denies the transaction, if he has the right to. However, as mentioned above, not all transactions require all the four steps. The steps involved in each transaction are as per the table below. OLM Transfer Promotion Salary Change Status Change ? ? ? ? RLM ? ? GFR ? ? ? ? HRA ? ? ? ? SSC ? ? ? ?
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Termination Leave Absence Reporting Change
PROCESS
? of ?
? ?
? ?
?
?
?
?
A typical MSS transaction takes the following course of action.
1. 2. 3. 4. 5. 6. 7.
Manager (OLM) selects an employee from the list of direct reportees OLM chooses one of the transactions and the effective date OLM chooses the RLM, GFR, HRA OLM fills in the other relevant details OLM submits the transaction The details of the transaction enter the MSS table A mail is sent to all the stakeholders informing them of the transaction The transaction appears in the worklist of the next approver
8.
MSS Transactions appearing in the worklist 9.
The approver views the transaction and reviews/edits it approver approves the transaction
10. The
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11. A
mail to sent to all the stakeholders informing them of the approval 8 to 12 are repeated for each approval step
12. Steps 13. After
the SSC step, a mail is sent to all the stakeholders informing them of the completion data is copied from MSS table and entered in the job data table
14. The
INPUTS AND OUTPUTS INPUTS
The entire MSS transaction takes place within the organization. The decision to initiate the transaction rests with the OLM and the entire process of initiation, approval and completion happens online through PeopleSoft. The transaction is initiated through the following three pages.
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Initiation of MSS transaction by a manager Business Documents Mail informing the approver of the pending transaction
As mentioned earlier, the entire MSS organization and happens online. Hence, business documents at any point during every step, notification mails are sent transaction. The format is as given below
process is internal to the there is a minimal scope for the transaction. However, at to the stakeholders of the
The above mail is automatically sent by the system whenever an approver approves the transaction and it moves to the worklist of the next approver. It, thereby, informs the new approver of the present status of the transaction and the action pending on his part.
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REPORTS ESS REPORTS
Executive Support System reports might be required by the top management to analyze trends in the human resources at the organization. Two of them are listed below.
REPORT 1: ALL COMPLETED TRANSACTIONS WITH EFFECTIVE DATE IN THE LAST FISCAL YEAR WHERE THE SALARY CHANGE HAS BEEN MORE THAN 20% OF THE OLD COMPENSATION Objective: To understand the compensation appraisal trend of the organization in the last year Employe e Employ ee Name Jack Effective Date Transactio n Old Compensati on 2000 % Increase HRA HRA Name
22341
12/01/200 9 31/03/200 9 18/11/200 9
Promotion
22.30
34231
Annika
12134
Tom
Transfer
5000
27.00
23443
Gunnar
56543
Nelson
Sal Change
6000
21.22
34231
Annika
REPORT 2: ALL COMPLETED TERMINATION TRANSACTIONS WHERE THE DURATION OF WORK IS LESS THAN 1 YEAR (FROM HIRE TO TERMINATION) AND THE REASON FOR QUITTING IS “PURSUING HIGHER STUDIES”
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Objective: To analyze the reasons for early attrition in the organization and map important factors like compensation and job profile to the trend Employe e Employe e Name Hire Date Terminatio n Date Duratio n in days 304 Compensati on Job Des
26782
Maria
02/03/200 8 05/06/200 8 20/01/200 9
02/01/200 9 30/01/200 9 20/04/200 9
4500
Marine Engineer HR Manager
34114
Nelly
205
5500
87765
Bob
90
3300
Programmer
DSS REPORTS
Decision Support System reports might be required by the middle management, say HRAs to track the performance of managers or identify departments facing frequent transfers.
REPORT 1: ALL PENDING TRANSACTIONS IN A DEPARTMENT AWAITING APPROVAL AT A STEP FOR MORE THAN 30 DAYS Objective: To identify long pending transactions and follow up with the approvers to complete the process Transactio Employee Date n ID Initiation ofEffective Date Transaction Pending With Days Since Pending
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224657
22341
22/01/2009
12/05/2009
Promotio n Transfer Sal Change
Jones
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224889 225987
12134 56543
23/02/2009 08/03/2009
20/05/2009 02/06/2009
Miller Steven
41 39
REPORT 2: ALL DEPARTMENTS WITH MORE THAN 20 PENDING COMPLETED TRANSFER TRANSACTIONS IN THE PAST 30 DAYS
AND
Objective: To identify departments with frequently changing staffs in order to streamline staffing and improve productivity Departmen Department t ID Description Department Manager No of pendingNo Transfers completed Transfers 23 17 18 42 32 26 of Department Size
2242 2254 2287
IT Sweden Steel Works Sandberga
21442 32889 52544
553 432 339
MIS REPORTS
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Management Information System reports might be required by the shared service center (SSC) to check for possible warnings before inserting the row in job data table and find a list of all pending transactions.
REPORT 1: ALL PENDING TRANSACTIONS WITH EFFECTIVE DATE PRIOR TO THE CURRENT ROW DATE IN THE JOB DATA TABLE Objective: To identify transactions that would ultimately throw a warning and seek reconfirmation with HRAs Transactio Employee Effective Date Current Row Transaction n ID Date 224657 224889 225987 22341 12134 56543 22/04/2009 18/05/2009 01/06/2009 12/05/2009 20/05/2009 02/06/2009 Promotion Transfer Sal Change HRA
Mia Annika Larsson
REPORT 2: ALL TRANSACTIONS PENDING WITHIN THE COUNTRY ORDERED BY EFFECTIVE DATE Objective: To estimate the workload for distribution within the SSC team and prioritize work according to nearness of effective date Transactio Employee Effective Date Transaction n ID 224657 224889 225987 22341 12134 56543 22/04/2009 18/05/2009 01/06/2009 Promotion Transfer Sal Change HRA
Mia Annika Larsson
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E-RECRUITMENT
INTRODUCTION
Barring a few minor customizations, eRecruitment is a vanilla module of PeopleSoft used by Sandvik. The module serves as an end to end solution for talent acquisition and management across the organization.
FUNCTIONS
The module basically performs the following five functions.
• • • • •
Creation of job opening Receiving applications for a job opening Filtering of applications Extension of job offer Creation of candidate pool
ACCESS
The module allows different levels of access to each set of users. Managers can create job openings and track the status of created job openings. HRAs can approve/view JOs created in their departments. Recruitment executives have access to the filtering and posting part of the module. Applicants can view JOs and apply to them.
ROLES
Through all the functions performed by the eRecruitment module, there are five distinct roles to be played. They are as follows:
MANAGER
Managers across the organization use eRecruitment to create Job Openings. They can also track the status of pending JOs created by them. The second utility is to approve the shortlist of candidates sent to them by
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the SSC. Also, they have an option to create a pool of candidates who don’t fit the profile of the JO they have applied for, but might be suitable for a future requirement.
HUMAN RESOURCE ADMINISTRATORS
HRAs use eRecruitment extensively for various purposes. The first one is to approve JOs and create/edit advertisements and posting details. The second use is to approve the shortlist of candidates previously approved by the JO manager. Finally, the HRA sends the list of the selected candidates to the SSC and ask them to go ahead with inducting them into the system.
SHARED SERVICE CENTER
SSCs have three major roles to play in the module. First, they are required to approve JOs for adding a row in the JO database and then post them on the various sites. Second, they filter the applications based on a set of primary requirements specified by the manager and the HRA. After filtering, the list is sent back to the manager and the HRA for approval. Third, after receiving the list of selected candidates, the SSCs are required to extend the job offer to the candidates and induct them into the system upon acceptance.
EMPLOYEES
Employees can access the module to browse through the JOs within the organization and apply to the JOs they find interesting.
EXTERNAL APPLICANTS
Their role is almost similar to that of the internal applicants (employees). Additionally, they are required to create a profile for themselves in the system.
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BUSINESS PROCESS
As mentioned above, the eRecruitment module has five major functions. The business processe for each of the functions is graphically explained below.
CREATION OF JOB OPENING
OPENING
&
APPLICATION
TO
THE
POSTED
JOB
Creation of JO and application to the posted JO by the candidates have been merged into one process to depict the interaction of the organization recruitment system and the external applicant at the interface i.e. Sandvik’s portal (indicated by the explorer icon).
JO creation by manager and JO application by applicants
In the process, the HRA is required to design the JO posting and decide the channels through which the JO will be advertised. The SSC has two jobs. First job is to check for any incompatibilities before inserting into the JO database. Secondly, he has to post the JO on the channels selected by the HRA. The applicants include both internal and external applicants. Internal applicants browse the job through the PeopleSoft portal on the intranet. External applicants access the JO on the external portals of Sandvik and sister companies like Walter, Dormer and Valenite Safety under the “Careers” tab. The red arrow indicates the “Pushback” path.
FILTERING OF APPLICATIONS
While creating the JO, the manager has the option to specify criteria for filtering the applications. The criteria are used by the SSC to filter applications. SSCs match the requirements specified in the JOs with the profile of the applicants in the application database.
Filtering of applications by SSC
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The shortlisted candidates are informed by the SSC about the impending process. The red arrow indicates the “Pushback” path.
EXTENSION OF JOB OFFER AND HIRING
After the selection process, the HRA informs the SSC of the finally selected candidate. After acceptance of the job offer, the SSC runs the application through various verifications and finally inducts him into the organization as an employee. On the database side, a HIRE row is added in the job data table for the new employee.
Hiring of selected candidates by SSC
CREATION OF CANDIDATE POOL
Managers and HRAs select some profiles which do not meet the requirements of the present JO but seem promising for future requirements. They can create a Candidate Pool in their name and might wish to source applications from the pool as well, in future JOs.
Creation of Candidate Pool
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INPUTS AND OUTPUTS INPUT SCREENS
Job Opening Title Page
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Job Opening Details Page
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OUTPUT
Mail sent by the system to an applicant offering the job
REPORTS ESS REPORTS
Executive Support System reports might be required by the HR and Recruitment heads across the organization to find important data about the recruitment drives and to predict recruitment targets for coming year based on recruitments of the last year.
REPORT 1: ALL NEW HIRES IN THE PAST YEAR ACROSS THE THREE VERTICALS OF THE COMPANY - MINING & CONSTRUCTION (SMC), MATERIAL TECHNOLOGY (SMT) AND TOOLING (TOOL) Objective: To understand the recruitment trend across the three verticals and the cost to the organization 26
Business Unit
Employ ee 22341 12134 56543
Employee Name Jack Tom Nelson
Hire Date
Joining Date
Compensation
SMC SMT TOOL
12/01/2009 31/03/2009 18/11/2009
22/01/2009 05/04/2009 22/12/2009
5000 6000 7000
REPORT 2: NUMBER OF NEW HIRES IN THE PAST EIGHT QUARTERS Objective: To find the rate of recruitment through consecutive quarters in the past two years Quarter Start Date Quarter End Date White Collar Employee 31/09/2009 31/06/2009 31/12/2008 31 28 40 Blue Collar Average Employee Compensation 27 25 18 5000 6000 7000
01/07/2009 01/04/2009 01/09/2008
DSS REPORT
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DSS reports are used by HRAs to evaluate the labour demand of various departments and response to job openings.
REPORT 1: ALL NEW HIRES IN DEPARTMENTS UNDER THE HRA
THE
PAST
YEAR
WITHIN
VARIOUS
Objective: To find the new labour provided to each department and hence predict future demand Business Unit Department New Hires Terminations Average Compensati on 5500 4500 6000
SMC SMT TOOL
2142 4313 4220
57 64 77
21 34 20
REPORT 2: STATUS OF ALL JOB OPENINGS IN TERMS APPLICATIONS, NO OF REQUIREMENTS AND JOINING DATE
OF
NO
OF
Objective: To find the effectiveness of job opening advertisement and plan any action if the deadline is near
Job ID
Opening
Job Code
Requirements
Applicants
Hires
Joining Date 21/03/2010 25/03/2010 02/04/2010
324556 325671 324993
000000342 000000775 000000441
4 3 5
21 20 25
1 2 0
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MIS REPORTS
MIS reports are extracted by SSC to find the status of applicants to be hired and list of job openings to be posted.
REPORTS 1: TO FIND THE STATUS OF APPLICANTS SELECTED BY HRAS BUT NOT HIRED YET Objective: To find the status of applicants and plan priority according to the nearness of joining date Job Opening ID 332445 332479 332510 Applicant ID 21425 21447 21476 Status Job Offered Offer Accepted Offer Rejected Joining Date 21/03/2009 03/04/2009 07/04/2009
REPORTS 2: TO FIND THE LIST ADVERTISEMENTS TO BE POSTED
OF
PENDING
JOB
OPENINGS
WITH
Objective: To create priority of job advertisements to be posted Job Opening ID 334556 334572 JO Manager Adam Jones Posting Date 30/08/2009 02/09/2009 HRA Angela Nikki
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334582
Michael
05/09/2009
Mika
PROJECT IMPLEMENTATION
DEVELOPMENT AND TESTING DEVELOPMENT
Accenture follows the V-model of development. The team has three subgroups
•
Application Development
o
The group develops new functions and processes as and when required by Sandvik. Also, the group takes care of the biannual roll outs when the scope of the ERP is extended to a new country. It works in the DE# environment, where # is the release number.
•
Application Maintenance
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o •
The groups’ chief task is to fix bugs as reported by the user and solve other tickets. It works in the DEV environment.
System Testing
o
The group is concerned with the system testing of bug fixes as well as new releases. It works on the TS# environment while testing releases and TST environment while testing fixes.
TESTING
The testing of the new developments and bug fixes follow different approaches. • New Development o All new developments are bunched together to form a new release. The release is implemented every six months. It also includes the roll-out of the system for any new country. The AD team unit tests the development. The system testing is kicked off 45 days in advance by migrating the entire release to the TS# environment. • Bug Fix o Regular bug fixes are bunched together to form monthly releases. Once the development is complete, the developer unit tests the fix and the supervisor assigns the fix to another team member for peer review. Once reviewed, the fix is migrated to the TST environment. The system testing is assigned to the ST team. At both the levels, the testing team is required to carry out positive testing of the functionality and various validation checks on the user interface. However, negative testing is also encouraged.
MIGRATION, INTEGRATION AND SUPPORT PROJECT MIGRATION
The project utilizes various environments for the purpose of development, testing and actual operation. The migration across the various environments happens through the Data Migrator provided by PeopleSoft.
DATA MIGRATION
Before each release, data from the new country is cleansed and changed into ‘csv’ format. The database administrator would migrate the data into the test database and checks for inconsistency. After duly testing the new data, it is migrated to the PRD environment.
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INTEGRATION
Sandvik deploys SAP as the Finance & Payroll solution. The HRMS system is required to be integrated with the Finance & Payroll system for various purposes. Two of the chief ones are as follows:
•
The payroll system needs to know the new hires, promotions, terminations etc The finance system needs to know the cost center to which the salary of each employee is linked.
•
The technique used for integration is file layout and it is batch processed. Global Payroll Interface (GPI) is an application developed for integrating the systems. It compares the present value of some pre-configured fields in the database with the value one day back. In case of a change, it prepares a change report (?) and publishes it through file layout. The file is received by the finance and payroll system.
SUPPORTING SYSTEM
Sandvik used Siebel as a CRM solution for internal reporting between Sandvik (Customer) and Accenture (Service provider). It switched from Siebel to PeopleSoft CRM solution 9.0 in January, 2010. The application is used by the managers, HRAs and SSCs to raise bugs and requirements in the form of tickets. The AM and AD team of Accenture accesses the tickets to assign job, track SLAs and report status. However, there is no hard integration between the HCM solution and CRM solution.
TRAINING
Training and knowledge transfer is provided at two levels. At the team level, all major developments/changes in the system are explained to other team members by the owner of the development. Also, intensive training is provided to the team before each biannual rollout with specific emphasis on problem solving and new functionalities added. At the project level, before each rollout, the development team provides training to the client side usually through conferences as the teams are located at different geographical locations. Special attention is paid to make sure SSCs learn the technical limitations of the system and possible deadlocks that might occur in future.
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ADVANTAGES AND LIMITATIONS ADVANTAGES
The implementation of PeopleSoft HCM 8.9 has various advantages over the legacy system. Some of the most prominent advantages are as follows.
INTEGRATION OF STANDALONE SYSTEMS
Before implementing PeopleSoft HCM Solution, Sandvik used individual legacy systems for each of the HR processes like workforce administration, compensation, recruitment. The integration was cumbersome and could not be achieved in real time. The implementation saw a unified system for all the processes, thereby reducing chances of errors and considerably decreasing the time taken for transactions.
EASE OF CUSTOMIZATION
In the version implemented by Sandvik, PeopleSoft has delivered a few readymade applications for easy customization avoiding any backend coding. For instance, approval engine can be used to add, remove or edit
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the roles of approvers in any transaction from the frontend portal itself. This gives Sandvik enhanced capabilities to maintain the system on its’ own.
BEST PRACTICES
One of the biggest advantages of implementing the ERP solution of an established brand like PeopleSoft is the exposure it provides to the best practices followed by the most efficient organizations around the world. Sandvik has adopted some of the HR practices, like data validation approval process when an employee tries to change his name, marital status or bank account.
LIMITATIONS
Despite the various advantages, there are certain limitations of the system.
INTEGRATION AMONG THE DIFFERENT FUNCTIONS
Sandvik uses SAP for its’ Finance and Payroll functions and PeopleSoft CRM 9.0 for internal reporting. The use of PeopleSoft HCM 8.9 has critical implementation issues as, in spite of usage of standard implementation techniques, problems frequently occur on account of the vast differences among the underlying technical framework of the integrating systems. This also prevents real time integration between the systems.
RESISTANCE FROM EMPLOYEES
The HRAs of the organization faced minimal threat to their jobs from the system as it was introduced not for substituting but smoothening the processes. However, there was a considerable resistance while transitioning from the legacy system to the new centrally integrated HR software. It was perceived as a costly and complex software which would require considerable training to effectively utilize.
SUPPORT FROM PEOPLESOFT
Oracle provides support to its clients by publishing bundles of bug fixes and enhancements. However, due to customizations of varying degree throughout the system, sometimes the bundles are not compatible with the implemented system. Hence, the organization loses out on the free support provided by the vendor.
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35
doc_264417108.docx
Human Resource Information management system implementation in Sandvik using Peoplesoft
source Management Informa
pID: 34221, PRO). The transaction is pending in your worklist awaiting approval.
t is only used for sending notifications.)
his mailbox is only used for sending notifications. Contact your local HRSC for any assistance.
1
TABLE OF CONTENTS
Sandvik – An Overview________________________________________________3
Corporate Structure.........................................................................3
Human Resource Management Information System_________________4
Human Resource Processes..............................................................4 Sandvik HR Information system........................................................5 About PeopleSoft.............................................................................5 PeopleSoft HCM Implementation at Sandvik......................................5
Database System at Sandvik__________________________________________8 Manager Self Service (MSS)___________________________________________9
Introduction....................................................................................9 Business Process...........................................................................11 Inputs and Outputs........................................................................13 Reports.........................................................................................15
eRecruitment_________________________________________________________18
Introduction..................................................................................18 Business Process...........................................................................20 Inputs and Outputs.......................................................................23 Reports.........................................................................................26
Project Implementation______________________________________________29
Development and Testing...............................................................29 Migration, Integration and Support.................................................30 Advantages and Limitations...........................................................32
2
SANDVIK – AN OVERVIEW
Sandvik is a Swedish company founded Göransson in in 1862 by Göran Fredrik Sandviken. It is a high-technology engineering group and a world-leader in tooling, materials technology, mining and construction. It has about 44,000 employees in 130 countries, with annual sales of approximately SEK 86 billion.
CORPORATE STRUCTURE
Sandvik consists of three business areas as following:
? ? ?
Sandvik Material Technology Sandvik Tooling Sandvik Mining and Construction
MATERIALS TECHNOLOGY
The Materials Technology business area specializes alloy steels and, to a lesser extent, other special alloys.
SANDVIK TOOLING
in
speciality
The tooling business area is primarily concerned with the production and development of metal cutting tools. Manufactures of carbide tipped tooling for metal cutting applications. It is composed of several brands as a result of Sandvik acquiring other corporations and keeping their brands. Tooling began as Sandvik Coromant and Coromant remains one of Sandvik Tooling's most important brand.
?
Another brand is the Dormer Tools company of Sheffield, England. Formerly known as the "Sheffield Twist Drill and Steel Co. Ltd" whose brand name is "Dormer".
?
MINING AND CONSTRUCTION
? ?
Crushers (hammers)
Hydraulic breakers for Excavators and demolition machines.
3
Manufacture cutters and ground engagement wear parts (Cutting tools and replaceable teeth)
? ?
Mining machinery
HUMAN RESOURCE MANAGEMENT INFORMATION SYSTEM
Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. In simple sense, HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.
HUMAN RESOURCE PROCESSES
Human resources management comprises several processes. These processes can be performed in an HR department, but some tasks can also be outsourced or performed by line-managers or other departments. When effectively integrated they provide significant economic benefit to the company. The broad processes are
? ? ? ? ? ? ? ? ?
Workforce planning Recruitment (sometimes separated into attraction and selection) Induction, Orientation and On boarding Skills management Training and development Personnel administration Compensation in wage or salary Time management Travel management (sometimes assigned to accounting rather than HRM)
4
? ? ? ? ?
Payroll (sometimes assigned to accounting rather than HRM) Employee benefits administration Personnel cost planning Performance appraisal Labor relations
SANDVIK HR INFORMATION SYSTEM
Sandvik selected PeopleSoft's Human Capital Management (HCM) solution to manage its human resources (HR) information for 37,000 employees worldwide in June 2003. It decided to deploy PeopleSoft as part of a comprehensive re-engineering project to create consistent HR processes across the 130 offices and significantly streamline administration.
ABOUT PEOPLESOFT
PeopleSoft, Inc. was a company that provided human resource management systems (HRMS) and customer relationship management (CRM) software, as well as software solutions for manufacturing, financials, enterprise performance management, and student administration to large corporations, governments, and organizations. It existed as an independent corporation until its acquisition by Oracle Corporation in 2005. The PeopleSoft name and product line are now marketed by Oracle. PeopleSoft is the world's leading provider of application software for the real-time enterprise. PeopleSoft pure Internet software enables organizations to reduce costs and increase productivity by directly connecting customers, suppliers, partners and employees to business processes on-line, in real time. PeopleSoft's integrated, best-in-class applications include Customer Relationship Management, Supply Chain Management, Human Capital Management, Financial Management and Application Integration. Today more than 5,100 organizations in 140 countries run on PeopleSoft software.
PEOPLESOFT HCM IMPLEMENTATION IN SANDVIK
5
SOFTWARE
Sandvik has chosen PeopleSoft HCM ERP solution. The version used is 8.9.
IMPLEMENTATION STYLE
Sandvik has chosen to retain some of the modules of PeopleSoft HCM without any customizations, while it has decided upon a few mildly customized modules and one completely customized module. In other words, the implementation is a mix of vanilla and customized style. Also, the implementation and maintenance is mainly carried out by Accenture Services Pvt Ltd while the operations are jointly handled by Sandvik and Accenture in the form of a Shared Service Centre (SSC). If we look at the conversion strategy from legacy system to the ERP, it has been done in a phased manner across Sandvik based on geographies.
STATUS AND PHASE
As mentioned earlier, the system was implemented in a phased approach. The various rollouts and their respective geographic regions are as follows: Rollout 1st 2nd 3rd 4th
MODULE
Regulatory Region Sweden, Finland and USA Great Britain and Germany France India and South Africa
Phase Onward and Upward Onward and Upward Shake down Go live
The implementation currently involves four modules
• • • •
Employee Self Service (ESS) Manager Self Service (MSS) Workforce Administration eRecruitment
6
SYSTEM SUPPORT
As graphically illustrated above, the system allows the end user to carry out some basic transactions. However, certain transactions require the involvement of the operations team, Shared Service Center (SSC). There are two types of transactions at this level. The first type includes the transactions that require no decision making. This is handled by the Accenture part of the SSC, called the PeopleLine. The second type includes the transactions that require some decision making. This is handled by the Sandvik part of the SSC. The fourth type of transaction requires the HR managers of Sandvik to take crucial decisions.
7
DATABASE SANDVIK
SYSTEM
AT
Sandvik utilizes Oracle database for the ERP implementation. The chief record is the job data table PS_JOB. The record contains all the job related information for all employees across the organization ordered by the employee id and the effective date. The various key fields are
• • • • •
Employee ID Employee Record Number Effective Date Effective Sequence Transaction Type
PeopleSoft has a strong technical advantage of effective date. Effective date is the date from which the row becomes effective. It does not reflect the date of addition of the row. It helps in planning as well as execution. The user has the option to add a present row, future row or a past row. Employe e ID 1234 Employe Effective e Record Date No 1-1-2000 0 Effective Sequenc e 0 Effective Status A Transactio Salary n Type HIR 2000 Supervis or 5555
8
1234
0 0 0 0 1 1
1-1-2001 1-1-2002 1-1-2002 1-1-2003 1-1-2004 1-1-2005
0 0 1 0 0 0
A A A I A I
PRO XFR XFR TER REH TER
3000 3000 3000 3000 3500 3500
6666 7777 6666 6666 8888 8888
1234 1234 1234 1234 1234
Job Data Sample
In the above example, an employee (1234) is hired wef 1st Jan’00 with a salary of 2000 and he is required to report to 5555. He is promoted wef 1 st Jan’01 and his salary increased from 200 to 3000. His new supervisor is 6666. The HR department transfers him to a new supervisor 7777. However, on the employees’ resistance, the action is reversed by transferring him back to 6666 with the same effective date 1st Jan’02. He is terminated wef 1st Jan’03. His effective status becomes inactive. He is rehired wef 1st Jan’04 with a new salary and supervisor. His employee ID is retained and his status is made active. However, to distinguish between the jobs, his employee record number is changed from 0 to 1. He is terminated wef 1st Jan’05.
MANAGER (MSS)
INTRODUCTION
SELF
SERVICE
MSS is a completely customized module developed by Accenture on request of Sandvik. The functional objective of the module is to allow managers to initiate a transaction on any of their direct reportees. The ultimate technical objective can be seen as the insertion of a row in the Job Data table for the reportee. The row carries new information about the job and other related aspects.
9
TRANSACTIONS
The module can be used to initiate any of the following transactions:
• • • • • • •
Transfer Promotion Salary Change Status Change Termination Leave of Absence Reporting Change
SCOPE
The module can be used to change any of the several job details. Some of the important ones are:
• •
Supervisor Compensation eligible for Compensation Period monthly Location Department working in Status leave
- Whom will the employee report to in future - What is the compensation the employee is - What is the frequency i.e. hourly, weekly, - Where would the employee be working - What department would the employee be - What is the status i.e. active, inactive or on
•
• •
•
ACCESS
The module is accessible to all the users provided with managerial access to the PeopleSoft portal. It is used by managers (employees with direct reportees), HRAs (human resource administrators) and SSC (shared service center).
ROLES
10
Typically, in a MSS transaction, each user plays one of the below mentioned roles. However, not all the roles are required in all the transactions. The roles are:
ORIGINATING LINE MANAGER
OLM is the manager who initiates the MSS transaction on his direct reportee. He decides upon the new attributes of his job. He is also required to choose the RLM, GFR and HRA for approval of the transaction. He can save the transaction as a draft or submit the transaction for initiating the approval process.
RECEIVING LINE MANAGER
RLM is the manager who would become the new supervisor of the employee if the transaction is successfully completed. Obviously, RLM is required only in transfer, promotion and reporting change transaction. He can change any detail in the new profile of the employee. He can approve, deny or pushback the transaction.
GRANDPARENT
GFR is a peer of the OLM and his role is to review the transaction and make a comment if required. He cannot edit any fields. He cannot deny or pushback the transaction.
HUMAN RESOURCE ADMINISTRATORS
HRAs are the HR managers of Sandvik. They have complete autonomy to change the fields. They can approve, deny or pushback the transaction.
SHARED SERVICE CENTER
The SSC is a group of database administrators who finally approve the transaction and signal automatic insertion of a row into the job data. Their job is to look out for any potential issues or incompatibilities on the database side. They also act as the last check before the data is finally entered.
BUSINESS PROCESS
All MSS transactions have a predefined approval process depending on the type of the transaction. However, there are special cases when the
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approval process for the same transaction varies slightly across different countries.
TYPICAL MSS TRANSACTION
All MSS transactions involve the initiation and all or some of the 4 steps of approval. The generic transaction process is as depicted below.
MSS Transaction Business Process
The diagram is self explanatory. The green arrow represents the normal flow required for approval. The red arrow represents pushback to the OLM. The process is terminated whenever an approver denies the transaction, if he has the right to. However, as mentioned above, not all transactions require all the four steps. The steps involved in each transaction are as per the table below. OLM Transfer Promotion Salary Change Status Change ? ? ? ? RLM ? ? GFR ? ? ? ? HRA ? ? ? ? SSC ? ? ? ?
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Termination Leave Absence Reporting Change
PROCESS
? of ?
? ?
? ?
?
?
?
?
A typical MSS transaction takes the following course of action.
1. 2. 3. 4. 5. 6. 7.
Manager (OLM) selects an employee from the list of direct reportees OLM chooses one of the transactions and the effective date OLM chooses the RLM, GFR, HRA OLM fills in the other relevant details OLM submits the transaction The details of the transaction enter the MSS table A mail is sent to all the stakeholders informing them of the transaction The transaction appears in the worklist of the next approver
8.
MSS Transactions appearing in the worklist 9.
The approver views the transaction and reviews/edits it approver approves the transaction
10. The
13
11. A
mail to sent to all the stakeholders informing them of the approval 8 to 12 are repeated for each approval step
12. Steps 13. After
the SSC step, a mail is sent to all the stakeholders informing them of the completion data is copied from MSS table and entered in the job data table
14. The
INPUTS AND OUTPUTS INPUTS
The entire MSS transaction takes place within the organization. The decision to initiate the transaction rests with the OLM and the entire process of initiation, approval and completion happens online through PeopleSoft. The transaction is initiated through the following three pages.
14
Initiation of MSS transaction by a manager Business Documents Mail informing the approver of the pending transaction
As mentioned earlier, the entire MSS organization and happens online. Hence, business documents at any point during every step, notification mails are sent transaction. The format is as given below
process is internal to the there is a minimal scope for the transaction. However, at to the stakeholders of the
The above mail is automatically sent by the system whenever an approver approves the transaction and it moves to the worklist of the next approver. It, thereby, informs the new approver of the present status of the transaction and the action pending on his part.
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REPORTS ESS REPORTS
Executive Support System reports might be required by the top management to analyze trends in the human resources at the organization. Two of them are listed below.
REPORT 1: ALL COMPLETED TRANSACTIONS WITH EFFECTIVE DATE IN THE LAST FISCAL YEAR WHERE THE SALARY CHANGE HAS BEEN MORE THAN 20% OF THE OLD COMPENSATION Objective: To understand the compensation appraisal trend of the organization in the last year Employe e Employ ee Name Jack Effective Date Transactio n Old Compensati on 2000 % Increase HRA HRA Name
22341
12/01/200 9 31/03/200 9 18/11/200 9
Promotion
22.30
34231
Annika
12134
Tom
Transfer
5000
27.00
23443
Gunnar
56543
Nelson
Sal Change
6000
21.22
34231
Annika
REPORT 2: ALL COMPLETED TERMINATION TRANSACTIONS WHERE THE DURATION OF WORK IS LESS THAN 1 YEAR (FROM HIRE TO TERMINATION) AND THE REASON FOR QUITTING IS “PURSUING HIGHER STUDIES”
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Objective: To analyze the reasons for early attrition in the organization and map important factors like compensation and job profile to the trend Employe e Employe e Name Hire Date Terminatio n Date Duratio n in days 304 Compensati on Job Des
26782
Maria
02/03/200 8 05/06/200 8 20/01/200 9
02/01/200 9 30/01/200 9 20/04/200 9
4500
Marine Engineer HR Manager
34114
Nelly
205
5500
87765
Bob
90
3300
Programmer
DSS REPORTS
Decision Support System reports might be required by the middle management, say HRAs to track the performance of managers or identify departments facing frequent transfers.
REPORT 1: ALL PENDING TRANSACTIONS IN A DEPARTMENT AWAITING APPROVAL AT A STEP FOR MORE THAN 30 DAYS Objective: To identify long pending transactions and follow up with the approvers to complete the process Transactio Employee Date n ID Initiation ofEffective Date Transaction Pending With Days Since Pending
17
224657
22341
22/01/2009
12/05/2009
Promotio n Transfer Sal Change
Jones
34
224889 225987
12134 56543
23/02/2009 08/03/2009
20/05/2009 02/06/2009
Miller Steven
41 39
REPORT 2: ALL DEPARTMENTS WITH MORE THAN 20 PENDING COMPLETED TRANSFER TRANSACTIONS IN THE PAST 30 DAYS
AND
Objective: To identify departments with frequently changing staffs in order to streamline staffing and improve productivity Departmen Department t ID Description Department Manager No of pendingNo Transfers completed Transfers 23 17 18 42 32 26 of Department Size
2242 2254 2287
IT Sweden Steel Works Sandberga
21442 32889 52544
553 432 339
MIS REPORTS
18
Management Information System reports might be required by the shared service center (SSC) to check for possible warnings before inserting the row in job data table and find a list of all pending transactions.
REPORT 1: ALL PENDING TRANSACTIONS WITH EFFECTIVE DATE PRIOR TO THE CURRENT ROW DATE IN THE JOB DATA TABLE Objective: To identify transactions that would ultimately throw a warning and seek reconfirmation with HRAs Transactio Employee Effective Date Current Row Transaction n ID Date 224657 224889 225987 22341 12134 56543 22/04/2009 18/05/2009 01/06/2009 12/05/2009 20/05/2009 02/06/2009 Promotion Transfer Sal Change HRA
Mia Annika Larsson
REPORT 2: ALL TRANSACTIONS PENDING WITHIN THE COUNTRY ORDERED BY EFFECTIVE DATE Objective: To estimate the workload for distribution within the SSC team and prioritize work according to nearness of effective date Transactio Employee Effective Date Transaction n ID 224657 224889 225987 22341 12134 56543 22/04/2009 18/05/2009 01/06/2009 Promotion Transfer Sal Change HRA
Mia Annika Larsson
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E-RECRUITMENT
INTRODUCTION
Barring a few minor customizations, eRecruitment is a vanilla module of PeopleSoft used by Sandvik. The module serves as an end to end solution for talent acquisition and management across the organization.
FUNCTIONS
The module basically performs the following five functions.
• • • • •
Creation of job opening Receiving applications for a job opening Filtering of applications Extension of job offer Creation of candidate pool
ACCESS
The module allows different levels of access to each set of users. Managers can create job openings and track the status of created job openings. HRAs can approve/view JOs created in their departments. Recruitment executives have access to the filtering and posting part of the module. Applicants can view JOs and apply to them.
ROLES
Through all the functions performed by the eRecruitment module, there are five distinct roles to be played. They are as follows:
MANAGER
Managers across the organization use eRecruitment to create Job Openings. They can also track the status of pending JOs created by them. The second utility is to approve the shortlist of candidates sent to them by
20
the SSC. Also, they have an option to create a pool of candidates who don’t fit the profile of the JO they have applied for, but might be suitable for a future requirement.
HUMAN RESOURCE ADMINISTRATORS
HRAs use eRecruitment extensively for various purposes. The first one is to approve JOs and create/edit advertisements and posting details. The second use is to approve the shortlist of candidates previously approved by the JO manager. Finally, the HRA sends the list of the selected candidates to the SSC and ask them to go ahead with inducting them into the system.
SHARED SERVICE CENTER
SSCs have three major roles to play in the module. First, they are required to approve JOs for adding a row in the JO database and then post them on the various sites. Second, they filter the applications based on a set of primary requirements specified by the manager and the HRA. After filtering, the list is sent back to the manager and the HRA for approval. Third, after receiving the list of selected candidates, the SSCs are required to extend the job offer to the candidates and induct them into the system upon acceptance.
EMPLOYEES
Employees can access the module to browse through the JOs within the organization and apply to the JOs they find interesting.
EXTERNAL APPLICANTS
Their role is almost similar to that of the internal applicants (employees). Additionally, they are required to create a profile for themselves in the system.
21
BUSINESS PROCESS
As mentioned above, the eRecruitment module has five major functions. The business processe for each of the functions is graphically explained below.
CREATION OF JOB OPENING
OPENING
&
APPLICATION
TO
THE
POSTED
JOB
Creation of JO and application to the posted JO by the candidates have been merged into one process to depict the interaction of the organization recruitment system and the external applicant at the interface i.e. Sandvik’s portal (indicated by the explorer icon).
JO creation by manager and JO application by applicants
In the process, the HRA is required to design the JO posting and decide the channels through which the JO will be advertised. The SSC has two jobs. First job is to check for any incompatibilities before inserting into the JO database. Secondly, he has to post the JO on the channels selected by the HRA. The applicants include both internal and external applicants. Internal applicants browse the job through the PeopleSoft portal on the intranet. External applicants access the JO on the external portals of Sandvik and sister companies like Walter, Dormer and Valenite Safety under the “Careers” tab. The red arrow indicates the “Pushback” path.
FILTERING OF APPLICATIONS
While creating the JO, the manager has the option to specify criteria for filtering the applications. The criteria are used by the SSC to filter applications. SSCs match the requirements specified in the JOs with the profile of the applicants in the application database.
Filtering of applications by SSC
22
The shortlisted candidates are informed by the SSC about the impending process. The red arrow indicates the “Pushback” path.
EXTENSION OF JOB OFFER AND HIRING
After the selection process, the HRA informs the SSC of the finally selected candidate. After acceptance of the job offer, the SSC runs the application through various verifications and finally inducts him into the organization as an employee. On the database side, a HIRE row is added in the job data table for the new employee.
Hiring of selected candidates by SSC
CREATION OF CANDIDATE POOL
Managers and HRAs select some profiles which do not meet the requirements of the present JO but seem promising for future requirements. They can create a Candidate Pool in their name and might wish to source applications from the pool as well, in future JOs.
Creation of Candidate Pool
23
INPUTS AND OUTPUTS INPUT SCREENS
Job Opening Title Page
24
Job Opening Details Page
25
OUTPUT
Mail sent by the system to an applicant offering the job
REPORTS ESS REPORTS
Executive Support System reports might be required by the HR and Recruitment heads across the organization to find important data about the recruitment drives and to predict recruitment targets for coming year based on recruitments of the last year.
REPORT 1: ALL NEW HIRES IN THE PAST YEAR ACROSS THE THREE VERTICALS OF THE COMPANY - MINING & CONSTRUCTION (SMC), MATERIAL TECHNOLOGY (SMT) AND TOOLING (TOOL) Objective: To understand the recruitment trend across the three verticals and the cost to the organization 26
Business Unit
Employ ee 22341 12134 56543
Employee Name Jack Tom Nelson
Hire Date
Joining Date
Compensation
SMC SMT TOOL
12/01/2009 31/03/2009 18/11/2009
22/01/2009 05/04/2009 22/12/2009
5000 6000 7000
REPORT 2: NUMBER OF NEW HIRES IN THE PAST EIGHT QUARTERS Objective: To find the rate of recruitment through consecutive quarters in the past two years Quarter Start Date Quarter End Date White Collar Employee 31/09/2009 31/06/2009 31/12/2008 31 28 40 Blue Collar Average Employee Compensation 27 25 18 5000 6000 7000
01/07/2009 01/04/2009 01/09/2008
DSS REPORT
27
DSS reports are used by HRAs to evaluate the labour demand of various departments and response to job openings.
REPORT 1: ALL NEW HIRES IN DEPARTMENTS UNDER THE HRA
THE
PAST
YEAR
WITHIN
VARIOUS
Objective: To find the new labour provided to each department and hence predict future demand Business Unit Department New Hires Terminations Average Compensati on 5500 4500 6000
SMC SMT TOOL
2142 4313 4220
57 64 77
21 34 20
REPORT 2: STATUS OF ALL JOB OPENINGS IN TERMS APPLICATIONS, NO OF REQUIREMENTS AND JOINING DATE
OF
NO
OF
Objective: To find the effectiveness of job opening advertisement and plan any action if the deadline is near
Job ID
Opening
Job Code
Requirements
Applicants
Hires
Joining Date 21/03/2010 25/03/2010 02/04/2010
324556 325671 324993
000000342 000000775 000000441
4 3 5
21 20 25
1 2 0
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MIS REPORTS
MIS reports are extracted by SSC to find the status of applicants to be hired and list of job openings to be posted.
REPORTS 1: TO FIND THE STATUS OF APPLICANTS SELECTED BY HRAS BUT NOT HIRED YET Objective: To find the status of applicants and plan priority according to the nearness of joining date Job Opening ID 332445 332479 332510 Applicant ID 21425 21447 21476 Status Job Offered Offer Accepted Offer Rejected Joining Date 21/03/2009 03/04/2009 07/04/2009
REPORTS 2: TO FIND THE LIST ADVERTISEMENTS TO BE POSTED
OF
PENDING
JOB
OPENINGS
WITH
Objective: To create priority of job advertisements to be posted Job Opening ID 334556 334572 JO Manager Adam Jones Posting Date 30/08/2009 02/09/2009 HRA Angela Nikki
29
334582
Michael
05/09/2009
Mika
PROJECT IMPLEMENTATION
DEVELOPMENT AND TESTING DEVELOPMENT
Accenture follows the V-model of development. The team has three subgroups
•
Application Development
o
The group develops new functions and processes as and when required by Sandvik. Also, the group takes care of the biannual roll outs when the scope of the ERP is extended to a new country. It works in the DE# environment, where # is the release number.
•
Application Maintenance
30
o •
The groups’ chief task is to fix bugs as reported by the user and solve other tickets. It works in the DEV environment.
System Testing
o
The group is concerned with the system testing of bug fixes as well as new releases. It works on the TS# environment while testing releases and TST environment while testing fixes.
TESTING
The testing of the new developments and bug fixes follow different approaches. • New Development o All new developments are bunched together to form a new release. The release is implemented every six months. It also includes the roll-out of the system for any new country. The AD team unit tests the development. The system testing is kicked off 45 days in advance by migrating the entire release to the TS# environment. • Bug Fix o Regular bug fixes are bunched together to form monthly releases. Once the development is complete, the developer unit tests the fix and the supervisor assigns the fix to another team member for peer review. Once reviewed, the fix is migrated to the TST environment. The system testing is assigned to the ST team. At both the levels, the testing team is required to carry out positive testing of the functionality and various validation checks on the user interface. However, negative testing is also encouraged.
MIGRATION, INTEGRATION AND SUPPORT PROJECT MIGRATION
The project utilizes various environments for the purpose of development, testing and actual operation. The migration across the various environments happens through the Data Migrator provided by PeopleSoft.
DATA MIGRATION
Before each release, data from the new country is cleansed and changed into ‘csv’ format. The database administrator would migrate the data into the test database and checks for inconsistency. After duly testing the new data, it is migrated to the PRD environment.
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INTEGRATION
Sandvik deploys SAP as the Finance & Payroll solution. The HRMS system is required to be integrated with the Finance & Payroll system for various purposes. Two of the chief ones are as follows:
•
The payroll system needs to know the new hires, promotions, terminations etc The finance system needs to know the cost center to which the salary of each employee is linked.
•
The technique used for integration is file layout and it is batch processed. Global Payroll Interface (GPI) is an application developed for integrating the systems. It compares the present value of some pre-configured fields in the database with the value one day back. In case of a change, it prepares a change report (?) and publishes it through file layout. The file is received by the finance and payroll system.
SUPPORTING SYSTEM
Sandvik used Siebel as a CRM solution for internal reporting between Sandvik (Customer) and Accenture (Service provider). It switched from Siebel to PeopleSoft CRM solution 9.0 in January, 2010. The application is used by the managers, HRAs and SSCs to raise bugs and requirements in the form of tickets. The AM and AD team of Accenture accesses the tickets to assign job, track SLAs and report status. However, there is no hard integration between the HCM solution and CRM solution.
TRAINING
Training and knowledge transfer is provided at two levels. At the team level, all major developments/changes in the system are explained to other team members by the owner of the development. Also, intensive training is provided to the team before each biannual rollout with specific emphasis on problem solving and new functionalities added. At the project level, before each rollout, the development team provides training to the client side usually through conferences as the teams are located at different geographical locations. Special attention is paid to make sure SSCs learn the technical limitations of the system and possible deadlocks that might occur in future.
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ADVANTAGES AND LIMITATIONS ADVANTAGES
The implementation of PeopleSoft HCM 8.9 has various advantages over the legacy system. Some of the most prominent advantages are as follows.
INTEGRATION OF STANDALONE SYSTEMS
Before implementing PeopleSoft HCM Solution, Sandvik used individual legacy systems for each of the HR processes like workforce administration, compensation, recruitment. The integration was cumbersome and could not be achieved in real time. The implementation saw a unified system for all the processes, thereby reducing chances of errors and considerably decreasing the time taken for transactions.
EASE OF CUSTOMIZATION
In the version implemented by Sandvik, PeopleSoft has delivered a few readymade applications for easy customization avoiding any backend coding. For instance, approval engine can be used to add, remove or edit
33
the roles of approvers in any transaction from the frontend portal itself. This gives Sandvik enhanced capabilities to maintain the system on its’ own.
BEST PRACTICES
One of the biggest advantages of implementing the ERP solution of an established brand like PeopleSoft is the exposure it provides to the best practices followed by the most efficient organizations around the world. Sandvik has adopted some of the HR practices, like data validation approval process when an employee tries to change his name, marital status or bank account.
LIMITATIONS
Despite the various advantages, there are certain limitations of the system.
INTEGRATION AMONG THE DIFFERENT FUNCTIONS
Sandvik uses SAP for its’ Finance and Payroll functions and PeopleSoft CRM 9.0 for internal reporting. The use of PeopleSoft HCM 8.9 has critical implementation issues as, in spite of usage of standard implementation techniques, problems frequently occur on account of the vast differences among the underlying technical framework of the integrating systems. This also prevents real time integration between the systems.
RESISTANCE FROM EMPLOYEES
The HRAs of the organization faced minimal threat to their jobs from the system as it was introduced not for substituting but smoothening the processes. However, there was a considerable resistance while transitioning from the legacy system to the new centrally integrated HR software. It was perceived as a costly and complex software which would require considerable training to effectively utilize.
SUPPORT FROM PEOPLESOFT
Oracle provides support to its clients by publishing bundles of bug fixes and enhancements. However, due to customizations of varying degree throughout the system, sometimes the bundles are not compatible with the implemented system. Hence, the organization loses out on the free support provided by the vendor.
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