Global Rollout Planning and iProcurement Implementation at Qualcomm

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Global Rollout Planning and iProcurement
Implementation at Qualcomm
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Introduction Agenda

• Key Concepts
• Overview of Global Rollout Planning
• 2 Oracle Instances
• The QCT instance
• The Quantum instance
• Why 2 instances?
• Separation of Production and Non-Prod
  Procurement
• 2007 Implementation Sites

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Key Concepts

• Design globally roll out locally
• Clearly state design bias and document
  assumptions
• Understand business requirements at a high level
• Involve the business early in the planning
  process
• Implement in those internl sites where the need
  justifies the effort
• Build upon prior phases, implementing required
  functionality as needed

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2 Oracle instances The QCT Instance

• QCT instance has two application servers 11.5.8
  and 11.5.9 (lot controlled)
• Quantum instance is an Oracle 11.5.10 instance,
  with min. customizations
• Each organization owns its own inventory
  common inventory items
• QSCO (manufacturing) has no PL, and will
  liquidate costs to other BUs

QCT Instance
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2 Oracle instances The Quantum Instance
01 Legal Entity
Other legal entities
QSCO Production Procurement
Corp Non-Prod Procurement
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Qualcomm Inventory Orgs Structure
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Why two instances?

• The QCT instance is geared to Qualcomms chip
  manufacturing business, is heavily customized,
  and uses lot control and other features that
  are not attractive to the Qualcomm discrete
  manufacturing businesses
• The QCT instance uses two application servers,
  one Oracle 11.5.8 and the other, an Oracle 11.5.9
  instance, primarily to support Oracles Advanced
  Supply Chain Planning (ASCP) engine
• The QCT instance does not include project
  accounting, nor does it make allowance for
  international rollout
• There is continuing discussion in the press
  about spinning off the chip business

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Separation of Prod and Non-Prod Procurement
EMRs
Indirect and Services
Direct and NPI
Shelter and Bldg M
Corp Procure
EMRs also directed to QGTC, MUI, QMT and QSCO
based on department
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Quantum Implementation Sites
Russia (2)
Canada (1)
UK(5)
EU (DE, ES, FR, IT, NE, SE) (6)
San Diego
Korea(2)
SD1
Japan(2)
QMT San Jose
China(3)
Israel(1)
Tijuana, Mexico
Taiwan (3)
SD2
QMT Taiwan
India(3)
Mexico(6)
Vietnam(1)
Singapore (1)
Indonesia (1)
Brazil (1)
Australia (2)
South Africa (1)
Argentina (1)
Actual sites, 2007 rollout
Potential sites, 2008 global rollout
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Services Procurement and Internl Planning Agenda

• Business Processes
• EMR- related transactions and iProcurement (Phase
  I and ongoing)
• Supplier visibility to transactional data using
  iSupplier (Phase I and ongoing)
• Intercompany transactions between legal entities
  (Phase I)
• International Requirements
• International Sites Planning
• Next Steps and Action Items
• Additional Considerations
• Next Steps and Action Items

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Intercompany Transactions
Internal Sales Order for transaction between
Legal Entities

• Internal Req initiates process

• Internal Sales Order created

• Ship against Internal SO (QSCO)

• Accounting driven by Interco Rel

• Process defined in Shipping Net

• Both IC AR and AP Invoices

Internal Drop Shipments for 01 transactions

• Shipment initiates process

• No Internal Sales Order

• Ship against order placed in IO

• Accounting driven by Interco Rel

• Process defined in Shipping Net

• Both IC AR and AP Invoices

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International Requirements Gathering

• Needs assessment driven by the business
• Focus in on tangible benefits that accrue by
  implementing Oracle
• Offices grouped by size, affiliation to U.S.
  legal entities
• Benefits ranked by the business in order of
  importance

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Potential Sites and International Rollout
Considerations
Div Location BU Outsourced
72 Bangalore QCT In house
47 Germany QCT Outsourced
32 UK QCT In house
4 Hyderabad QCT In house
2 Israel QCT In house
51 Japan QCT In house
49 China QCT In house
26 Korea QCT Outsourced
83 Taiwan QCT Outsourced
93 Italy QCT Outsourced
75 Taiwan QMT In house
43 Europe QGBD Outsourced
4 China QGBD In house
4 Taiwan QGBD Outsourced
15 Korea QGBD Outsourced
52 India QGBD Outsourced
19 JapanKK QIS In house
4 Beijing Expat QIS In house
40 Cambridge (UK) QIS In house
78 Pool (UK) QIS In house
4 UK (expat) QIS In house
International Rollout Considerations

• Set of Books (Calendar, Currency, Chart of
  Accounts), Doc Sequencing in Europe

• Statutory Reporting Requirements

• Currency and Exchange Rates

• Common Modules and Common Business Processes
  vis-à-vis local business requirements from
  process perspective

• Tax Rates and Reporting

• Languages (both forms and reports)

• Document layout by Country

• Knowledge of Oracle, e.g. AX and MRC

• GAAP versus STAT (local) accounting

• Consolidations/ FASB 52 Requirements

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Standard Oracle (Silo) Multi-Org Model All
Subsidiaries are Parallel Entities
Ledger Consolidation
Central L1410
Ger 1462
Fra 1475
U.K 1473
Ita 1463
Swe 1444
Den 1432
Hol 1461
Bel 1442
Swi 1465
Aus 1415
Spa 1467
Pol 14xx
Spa
Fra
Swe
Den
Por
Nor
EE
Mea
Fin
Inventory
One Planning Org and One Global Master.
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Option I Proposed Multi-org Structure using MRC
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Option II Proposed Multi-org Structure without
MRC
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MRC Explained
Convert Direct Entered JVs from Euros to GBP
Europe Primary SOB (Euros)
UK Reporting SOB (GBP)
Post Transactions to Functional SOB
UK Operating Unit (Euros)
Post Transactions to Reporting SOB
Order Management
Accounts Receivable
Subledger Reporting in Euros
Accounts Payable
Purchasing
Subledger Reporting in GBP
UK Operating Unit in GBP
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Additional Globalization Considerations
Common Country Features

• Set of features that apply to a general region or
  set of countries together (e.g. High Inflation
  Latin American countries)
• Supports VAT processing and subledger reporting
  in support of VAT
• Contains some functions specific to certain
  countries (Receipt Acknowledgement for Greece and
  Portugal)
• Globalization fields for additional data
  collection

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Additional Globalization Considerations
Common Country Features

• GL Balance Inflation Adjustments
• Asset Inflation Adjustments
• Support processes

Inflation Management

• GL Entry Reconciliation to Control Accounts
• Allocation Accounting
• Statutory Account Classes and Trial Balance
  Reporting
• Gapless Document Sequencing

Statutory Accounting
Subledger Accounting

• Customer Balance Reporting
• Supplier Balance Reporting
• Regional Reporting (Receipt Acknowledgement,
  Regional Invoice)

• Latin Tax Engine
• VAT Reporting Ledgers (GL/Payables/Receivables
  VAT Registers)

Tax
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Additional Globalization Considerations
Common Country Features

• For implementations with VAT or specific
  statutory reporting requirements, Common Country
  Features are highly recommended
• Supports country specific globalizations and in
  conjunction with base financial capabilities
• Additional Globalization fields are provided
  which allow you to add country specific
  information to subledger transactions based upon
  the country of operation (e.g. Scandinavian
  Invoice Info)
• Access country specific functionality/fields
  through Country specific responsibilities
• DOES NOT replace Global Accounting Engine

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Additional Globalization Considerations
Countries with Country Specific Financials are
Argentina Australia Austria Belgium Brazil Canada
Chili Columbia Czech Republic Denmark Finland
France Germany Greece Hungary Italy Japan Korea Me
xico the Netherlands Norway Poland
Portugal Singapore Spain Sweden Switzerland Taiwan
Thailand Turkey
Note that China, India and Russia are not listed.
Bolded countries are within scope of the Qualcomm
global implementation.
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Conclusion