Helping you succeed

Partnering MJL in the

S/4HANA Transformation
Journey

Aug 2019

Commercial Proposal
 1 About MJL Bangladesh, our understanding
2 Scope and Time-line
3 Commercials

Topics of
Discussion
 Our Understanding of MJL, Bangladesh

Page 3
 Background : MJL Bangladesh Limited
.

Your Background

MJL Bangladesh Limited (formerly Mobil Jamuna Lubricants Limited) is the joint venture company between state owned Jamuna Oil
Company and EC Securities Limited ( a subsidiary of the East Coast Group). The journey of blending world-class lubricants in Bangladesh
started in 1998 when Mobil Corporation (later known as Exxon Mobil Corporation) decided to set up Mobil Jamuna Lubricants Limited in
partnership with the state owned Jamuna Oil Company Limited.
Your Assets

MJL Group is engaged in Lubricants business including Automotive Lubricants & Industrial & Speciality Lubricants. Automotive Lubricants
include Car Engine Oils, Motorcycle Engine Oils, Bus & Truck Engine Oils & Vehicle care & other lubricants.

Your Vision

To retain market leadership, focusing on long term business sustainability and selling productivity with consistent growth potential.

Your Values

MJLBL uses a highly sophisticated computerized system to measure and dynamically control the flow of varieties of Base Stocks and
Additives, which are fed into the system in measured quantity as per the formulation to produce desired grade of Lube Oil.

Page 4
 .

SAP modules and sub-modules in MJL

Accounting & Cost Order to Cash Procure to Pay Maintenance Human Capital
Plan to Product
Management Management
 Sales Master Data  Supplier Master Data  Maintenance
 General Ledger  Production BOM Management  Organization
Management Planning
Management Management
 Asset Accounting  Sales Contract & Order  Supplier evaluation  Maintenance
 Production Planning  Personal
 Inventory Accounting Management and  Contract Management Scheduling
Production execution Administration
 processing Maintenance
 Accounts Payable  Requisitioning 
and control  Recruitment and
 Order Fulfilment Execution
 Accounts Receivable  Purchase/Service order Employee
 Batch Management processing
 Logistics Management  Reporting Administration
 Closing Operations
 Quality Engineering, Goods Issue/Receipt
 Basic Shipping 
 Learning and
 Cost Management Inspection &
Improvement  Basic Order Promising/  Invoice Processing & Performance
 Profitability & Cost Management Management
Available to Promise
Analysis  Materials
Billing & Invoicing  Spend analysis &  Payroll Management
Financial & Requirement 
 visibility
Management Planning  Claims, Returns &
 Basic Warehouse
Reporting  Basic subcontracting Refund Management
Management
 Multiple GAAP & external  Manage Credit
processing  Manage Returns
reporting  Sales Monitoring &
 Reporting &  Reporting & Monitoring
 VAT determination & Reporting
reporting Monitoring

5 | Driving value through S/4HANA

 Scope of the transformation journey

6 | Driving value through S/4HANA

 Scope
Scope At a Glance
Work steps Core Enablement (Track 1) Geographical Scope

Functional Areas : Project Location:

Project Planning ► Record To Report (FICO) ► MJL Bangladesh Corporate Office, at Dhaka,
1 ► Order to Cash ( SD)
Bangladesh
► Procure to Pay (MM )
► Design to Deliver (PP & QM) ► Factories which are located at Tongi and the depots

Operating Model Alignment ► Expand to Maintain ( PM) throughout countries

2 ► HCM – Time Management , OM, PA & Payroll
Legal Entities (SAP)
► MJL Bangladesh Limited
Technical Scope
3 Business Blue Print

Technical Scope: Timeline Scope

► ABAP – for developing customized objects 100
4 Realization RICEFW objects* Operating Model Alignment
► FIORI. 10 Standard Apps & 5 Custom Apps ► 3 months from Project Kick Off
► BASIS.
► Interfaces – Integration with VAT software, and Process Implementation (SAP)
5 Final Preparation and GO Live
Integration between HCM Payroll and PF software. ► 8 months from Project Kick Off

HANA Analytics of Cloud (Track 2) Post Implementation Scope

6 Post Stabilization Support ► 3 month value add post Go-live Governance
Functional Areas :
► HANA Analytics on Cloud – 6 Dashboard X 5 KPIs each
Analytics on Cloud Dashboard Go-Live
► HANA Analytics cloud for Demand Planning
► 9 months from Project Kick-off

7 | Driving value through S/4HANA

 Option 1: Our Proposed Timelines (Kick-off till ERP Enablement) Time to Invest

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

Readine
Track 0

Readiness Training

ss
Planning

enablement
S/4 HANA
Build & Test and Trail Data Loads
Track 1

Solution Design Year End

Functional Closing
Go Live
Final Prep
Post Go-Live Support

Embedded
Analytics
Track 2

Analytics Requirement Analytics

Gathering Go-Live
Embedded Analytics
And Analytics for Planning Design
Readiness Training will consist of all Core functional module training to core team , ABAP and BASIS training to IT team
Key Deliverables

Plan & Operating Model Design Solution and Build Phase Data Migration Post Go Live Assistance
Alignment Phase

 Project Plan  Solution Design Document  Functional &  Configuration  Cut Over Strategy  Production Support (Change
 Project Charter (Business Blue Print) Technical Solution Document  Cut Over Data Management, Issue Resolution,
 Master Data Templates Specification  Test Scripts Templates Knowledge Transfer and Training
 Process Flowcharts Document manual, Quality Assurance)
 Process Narrative  Training Manuals
 KPI & MIS

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 Commercials

9 | Driving value through S/4HANA

 Commercials

Description Cost
Track 0 :
Readiness of core team by SAP functional training of all modules and
technical Training of ABAP , BASIS and Fiori
BDT 36,00,000 Only
( This is optional, but we recommend to include it for securing the most
effective Business Blueprinting process and ensuring project success)
Track1 :
Enablement of SAP Core Modules ( 6 months)
Track 2:
Analytics on Cloud Dashboards and Analytics Cloud for demand BDT 2,62,28,000 Only
planning ( 4 Months )
Post Implementation Hypercare Onsite Support with Month End
closings (3 months )

The above fee is inclusive of all EY costs, AIT and exclusive of VAT.
Food , accommodation and Local Transport for the consultants to be arranged by MJL.

The client shall pay all other applicable taxes incurred in connection with the services provided as per Bangladesh Govt.
Laws and the price is exclusive of the same.

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Proposed Payment Milestones

MileStone Completion Time % of Fee Payable

Project Initiation and Resource Mobilization At Project Kick-off 10%
Completion of Readiness Training After 2 Months from Project Kick-off 7.5%
Completion of BBP After 4 Months from Project Kick-off 12.5%
Core Completion of system configuration and Moving to Quality After 6 Months from Project Kick-off 10.0%
Enablement Completion of UAT After 7 Months from Project Kick-off 10.0%
Immediately after Go-Live After 8 Months from Project Kick-off 12.5%
First month PGLS and Month end Closing After 9 Months from Project Kick-off 7.5%
Second Month PGLS and Month end closing After 10 Months from Project Kick-off 5.0%
3rd Month of PGLS and Month end closing After 11 Months from Project Kick-off 5.0%
Analytics on Completion of Analytics requirement Gathering After 7 Months from Project Kick-off 10%
Cloud Analytics Go-Live After 9 Months from Project Kick-off 10%
Total 100.0%

The above Milestone Break up of Fee structure is considering the fact that there will be 3 months of On-site Post Go-Live support.

Also this is a proposed payment milestone plan which shall be further deliberated upon during finalization of the Engagement
Agreement.

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 Assumptions and Dependencies

Project Organization and governance

► MJL will appoint engagement coordinators at corporate office as well as at Business Units with overall responsibility for this initiative
within the organization. Client will commit appropriate resources, including the involvement of the concerned departments/functions,
during the transformation.
► All the activities of the Project will be executed from MJL offices at Bangladesh or EY Offices in Bangladesh/India /EMEIA
► Deployment of resources will be made on on-site & off-site basis as per project requirements and activities. VPN/Remote access to SAP
systems will be provided for consultants to use when working offsite.
► All resources assigned to the project will be based out of the project offices and if required, MJL team that work out of other locations
will travel to the project office during the project.
► All communication reports and deliverables for this project will be done in the English language only
► MJL would assign a program manager for this project that would act as the SPOC and would perform internal coordination within MJL.
► MJL Program Manager will ensure regular presence of MJL core team members in all the discussions and workshops. It is assumed
that MJL will assign a competent core team with requisite knowledge on its business processes and this core team will be available as
required to this project. It is also assumed that all the core team members assigned to the project will be available at MJL project
location
► MJL will designate an appropriate and competent resource to be responsible at all time for the client’s decisions and to oversee and
acknowledge responsibility over the services
► The train the trainer’s approach will be followed, where the project team will prepare trainers from your side who will train actual end
users. Relevant training documents will be prepared.
► EY will do its utmost to get the presented staff available for MJL. Will this not be the case, a replacement with the same qualifications
will be presented.

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 Assumptions and Dependencies
Approach
► Any major changes in the process mapping or developments that are requested after the sign-off of the business blueprint document
will be taken through a “Change Request” (CR) procedure.
► EY may use appropriate training/testing/project management tools at its discretion. MJL core team will have the primary
responsibility of preparing the test script and test scenarios for the UAT (User Acceptance Testing), EY will assist MJL in the
preparation of the test scripts by providing standard templates or unit test scripts to be adjusted by MJL.
► MJL will complete the review and approval of any project deliverable/document within an agreed upon period of days from
submission. Documents subject to review and approval would be deemed “accepted” if reviews/approvals are not completed within
the agreed upon stipulated time, unless extensions have been previously agreed to.
► MJL will provide access to all the required documentation, applications, and servers as necessary for execution of this project
including process related documentation of current systems if available. When documentation is not available, walkthrough or
knowledge transfer sessions are to be organized if needed.
► EY will not be accountable for performance testing, security penetration testing, testing but will facilitate the process if such testing
is required.
► Defining the test strategy and detailed planning of all tests will be done during the Explore phase of the implementation roadmap,
execution of testing will be based on this strategy and plan
► QA systems required for testing would be build out early in the build phase
► Active participation from MJL Business users in identifying test cases and scenarios will ensure completeness which is a key success
factor
► Finalization of the user acceptance test plan and ensuring availability of users as per plan will be a key responsibility of MJL
► Resolution of test defects resulting from Non-SAP scope will be MJL’s responsibility

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 Assumptions and Dependencies
Overall Scope

► Customization scope of work and any interfaces (external or internal between SAP products) will need to be discussed during
business blueprint (BBP) phase and will be considered as part of RICEFW list.
► Post Explore Phase the effort is to be reviewed based on the clarification that the client will be providing, any change in the
implementation strategy, the final design, and any gap will be managed in a “Change Request” (CR).
► In case MJL requires any changes vis-à-vis the scope as mentioned in the proposal, this would need to be routed through a ‘Request
for Change’ procedure to be agreed with MJL during project initialization
► Changes to organization structure (e.g., new entities, acquisitions, reorganizations) may cause changes in the project scope if MJL
requests that these need to be included as part of the project and the same shall be processed in accordance with the ‘change
request procedure’
► Systems upgrades and change of functionalities or customization following their implementation due to new releases is not part of
the scope. Changes to the project will be processed in accordance with the ‘Change request procedure’. The investigation and the
enablement of project changes may result in modifications to the estimated schedule, charges, and other terms of these services to
be provided by EY
► Version changes and expected benefits of implementing versus demerits of implementing are to be discussed during the
implementation. Based on the findings all parties should be involved in the decision of a Go or no go for any upgrade/release/patch,
involving Design authority and Steering committee where necessary
► Business processes, policies, procedures and job descriptions development and redesign is out of scope. Business process
descriptions, policies, procedures and job descriptions should be provided and if necessary changed by MJL. EY will advise on
necessary changes

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 Assumptions and Dependencies
Data
► EY assumes that MJL will perform the cleansing, extraction and transformation of data in format prescribed by EY as part of the
overall Data Conversion approach.
► MJL will validate and sign off all the data which has been prepared by EY resources prior to upload into QAS and PRD environment
within a defined timeframe included in the overall Data Conversion approach; data uploads will resume only once sign off is obtained;
any delay of uploads due to missing sign off will be at the responsibility of MJL
► Data migration for master or transactional data in production system will be done jointly by MJL and EY project teams after Business
sign-off on the data to be uploaded and NDA signature. EY will train MJL on the templates and the tools to use to execute the upload
► MJL core team members will participate in the definition of mapping and conversion rules for the data
► Cleaning of data will be the responsibility of MJL team.
► EY expects no significant duplicate data in current systems, any effort on de-duplication of data is not included in the estimates
► Data migration efforts exclude any third-party vendor management, coordination of activities that a third-party vendor is
performing, or organizing, participating or leading working sessions related to third party involvement and we assume that vendor
has a proper understanding on SAP components Offshore resource model is proposed for AMS
► Any additional RICEFW object over and above those identified in the scope will need to go through the ‘Request for Change’
procedure
► New configuration/changes/support on any of the existing software solutions/legacy systems is not part of EY scope of work. MJL
will be responsible for the coordination with third parties for interfaces requirements and testing
► Customizations/Data Migration objects/Custom Reports/Custom Forms other than those included in the scope, if any, will need to be
prioritized to ensure that the planned project timeline is met. They will be charged extra as per estimation

15 | Driving value through S/4HANA

 Assumptions and Dependencies
Infrastructure, project office and other arrangements
► Enablement or support of any third-party software is excluded from the scope of this assignment
► MJL will need to provide appropriate seating facility for EY consultants & core team in its project office, with power connections, network access points
with internet connectivity, printers and intercom telephone facility.
► MJL will also provide meeting rooms with the requisite infrastructure. In addition, MJL will need to provide stationery and VPN connectivity as and when
needed for the project

Software
► EY will not be responsible for the resolution of any product related bugs/issues or improvements that require change in SAP source code. EY will handle
aspects related to such issues, if any, by raising Technical Assistance Requests (message) through SAP OSS with the help of MJL. EY will not be held
responsible for resolution of the same
► All prerequisites required for setting up of the SAP landscape will be fulfilled by MJL’s IT infrastructure team during the implementation, and such
prerequisites will be fulfilled in a timely manner
► MJL will provide their SAP service marketplace user IDs (S user IDs) to EY resources during the course of the engagement
► EY will not make any changes to the SAP source code. Making any changes to the source code of SAP may result in discontinuation of SAP’s product
support to MJL and may also result in inconsistencies in the SAP system. EY will only make changes to code through appropriate custom developed
objects such as Reports, Interfaces, Conversions, Enhancements, Forms or workflows Functionality provided within standard SAP will be
transformation/governance for all the modules considered in the proposed scope.
► Any software tool, apart from EY DELIVERS PM Tool, that will be utilized on this project (except for Microsoft Office and Microsoft Project) will be the
responsibility of and procured by MJL. Any such tools may be allowed for offshore use by EY resources, in case such need arises.
► This proposal involves the enablement and support of the listed software within scope with the standard functionalities and required customizations as
defined in the scope.
► SAP is responsible for the resolution of any product related bugs/issues or improvements that require change in SAP source code. EY will handle aspects
related to such issues, if any, by raising Technical Incident Requests through SAP support portal with the help of MJL. EY will not be held responsible for
resolution of the same.

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Thank you

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