JD EDWARDS ENTERPRISEONE VERSION 8.
12 IMPLEMENTATION With Accel HRMS Interface for HR Module
Business Analysis: As Is Study Document Module: Human Resources & Payroll For
Altek Beissel Needles Limited, Kelampakkam.
By
Implementation Partner: Accel Frontline Ltd 54, Greams Road, CHENNAI-600 006
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Document details Particulars Project Title Project ID Project Cycle/Module Study Period Document Title Document ID Document Version Author of this Document This Page / Total Pages Inputs received from key users Document Distribution Date Responsibility Process Owner ERP Delivery Head ABNL Key Users Details JD Edwards Enterprise One ver. 8.12 Implementation at ABNL 10/IMP/ERP/06002/WO/001 Business Analysis / As-Is / Human Resources & Payroll 24th October, 2006 to 10th November, 2006 Business Analysis As-Is Document Human Resources & Payroll BA/AI.HR 1.0 Ms.Sujatha V 2 / 27 Mr. T.H.Pushparaj-ManagerHR&Admn 15th November, 2006 Approvals Name & Designation Signature Mr. S.Ganesh M.D., ABNL Mr. K.Joseph G.M., ERP Division Mr.T.H.Pushparaj Manager HR & Admn
ABNL Project Leader Accel Project Leader Accel Project Manager.
Mr. P. Senthil kumar Mr.Balagopal. GN. Mr. Sundaram. KA. Revision History Revision Details Requested By
Revision No
Doc. No.
Date
Modified By
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Table of Contents
1 INTRODUCTION...............................................................................................................................4
1.1 Document Scope...................................................................................................4 1.2 Abbreviations.......................................................................................................5 1.3 Requisition process..............................................................................................7 1.4 Requisition process .............................................................................................8 1.5 Interview Process ................................................................................................9 1.6 Salary review / performance appraisal............................................................11 1.7 Training process ................................................................................................12 1.8 Training process Job discription card-category wise ..................................13 1.9 Welfare activity .................................................................................................15 1.10 Termination process .......................................................................................17 1.11 Termination process........................................................................................18 1.12 Payroll process ................................................................................................19 1.13 Payroll process ................................................................................................20 1.14 Pay structure :Benefits...................................................................................22 1.15 Benefits .............................................................................................................24 1.16 Pay structure deductions................................................................................25 1.17 Incentive/bonus/allowances.............................................................................28 1.18 Reports .............................................................................................................29
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1 Introduction 1.1 Document Scope
This document is the detailed understanding of the business processes followed by the HR Department of Altek Beissel Needles Ltd. This document is compiled based on the discussions held with ABNLs HR Department Executives during the As-Is study conducted and various documents shown to Accel consultants. The purpose of this document is to clearly depict the Business Process of the HR Department of ABNL and will form the basis upon which the ACCEL ERP consultants will map the processes on to the ERP Product and finalize the To-Be and Gap Documents. This document is to be signed off by Altek Beissel Needles Ltd. About Human Resources & Payroll in ABNL Human resources encompasses all the applications necessary for handling personnel-related tasks for corporate managers and individual employees. Recruitment Management Process 1. Manpower planning 2. Data bank 3. Tabulate response 4. Shortlist from the table 5. Call letters through email 6. History of interview 7. Evaluation / assessment criteria 8. Interview results Appointment 1. Category analysis 2. Job responsibilities 3. Induction
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Retainment Management Employee Personnel Profile & Reporting, Employment History, Recruitment, Appraisal and Termination Management Job Position and Wage Profiles Budgeting and Cost Control and Government Compliance Reporting Track Discipline Actions Benefits Management Base Benefits Benefits Administration Reward Management Health and Safety Record and investigate incidents of injury and illness (Employees / Contractors / Equipments / Vehicles) Segregate incidents in to Negligence / Occupational Hazard etc and Manage claims Logging of first aid records and reports Detect and monitor hazardous conditions (areas) and materials Payroll Management Employee Payroll Profile User Balances Automated Time Sheet
1.2 Abbreviations
Sl.No. 1 2 3 4 5 6 7 Abbreviation ABNL DA EA ESI HOD HR HRA Expansion Altek Beissel Needles Limited Dearness Allowance Education Allowance Employee State Insurance Head of the Department Human Resources House rent allowance
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8 9 10 11 12
LTA MD PF TDS WA
Leave Travel Allowance Managing Director Provident Fund Tax Deduction at Source Washing Allowance
Personnel Management process flow 1.ABNL personnel management flow is depicted below schematically. The total no of employees in the organization is 171.
SNO 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 EMPLOYEE TYPE Managing Director Manager HR Manager Maintenance & Tool room Manager Industrial Eng & purchase Manager Quality Assurance Manager Production Senior Executive Executive Sales Executive Staff Section Captain Technical Assistant Trainees Act apprentice Plant Assistant Contract workers NOS 1 1 1 1 1 1 4 5 4 7 10 3 27 3 36 16
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18 19
Outsourced contract workers Casual daily wages girls
18 32
TOTAL
171
1.3 Requisition process
Requisition form filled in The resp dept
Submit to the resp HODs
HOD send the req to MD NOO Approval by MD YES
Select candidates from Consultants/portal Leading Daily
Interview process1 staff & above Interview process 2 staff & above NO YES If selected
Back to data bank
Position the employee
Induction programme
Salary negotiation Personnel dept
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1.4 Requisition process
Requisition form : From the concerned department the manpower requirement requisition will be raised (manpower requirement form).The HODs will fill the form. Approval process : The HODs will forward the requisition to the Managing Director After the approval from the MD the recruitment process will start. Salary negotiation : The salary negotiation will be done by the personnel dept. Induction programme will be conducted for all new employees about company culture,hierarchy,dept available, leave rules ,company discipline. Manpower requirement form contains : Present strength category wise Name of the operation No.of Machines Shiftwise Manpower Details Present Production Target Required Manpower Qualification for manpower Experience Brief justification for additional requirement The recruitment process is done through advt/naukri.com/from existing databank. Currently the applicant database is in Excel sheet . Every HOD will have a chart to fix up the target for production. Based on the target the manpower recruitment will be decided . The Databank contains the following information: Name, Age, Qualification Years of experience Address and phone no
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Current CTC Remarks Email ID Prior employment
1.5 Interview Process
Interview process : The shortlisted applicant will be called for an interview,through mail or through courier/post. Interview stages 1) call letter 2) first interview 3) second interview 4) Final negotiation 5) Offer letter 6) appointment letter .If the candidate is selected he/she will be positioned in the organization .If not the list will be sent back to the applicant database. The probation period for staff and above is 6 months. A temporary access card will be issued for a months time and a permanent access card will be issued after that No of shifts : once the applicant became an employee he will be assigned to a particular shift . The total no of shifts operating in the company are as follows: 1st shift 8am 4.30pm 2ndshift 4.30pm 1pm 3rdshift 1pm 8 am Outsourcing recruitments- For higher cadre through reputed consultancies
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Salary Review /Performance Appraisal Flow
Salary review
Appraisal form filled by HOD
Trainees
Staff & above
Plant assistant
5 years agreement upto Nov 2010 HOD will rate based on performance, Behaviour and attendance HOD will rate face to face Based on performance,behaviour,attendance
NO
YES
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Approval by MD
No change
Salary change
1.6 Salary review / performance appraisal
Salary review /change The Respective HODs will do the appraisal for the worker category .For others the face to face appraisal will be done by HODs . Approval: The HODs will send the filled in appraisal recommendation form to the managing director .The MD will finally approve and the salary will be revised. Performance appraisal Annual appraisal will be done by the respective HODs and the same will be approved by the MD .The appraisal is based on the performance ,behaviour and attendance. The HOD will fill in the appraisal form and directly talk to the staff .(do self appraisal).For workers (Trainees, contractors and act apprentice)no self appraisal. The HOD will fill the form and get the approval from the MD. Salary Disbursement :Salary is auto deposited every month by 30th or 31st for staff and above .For workers it will be deposited on the 5th of every month. The salary period is between 26th of last month and till 25th of current month. If 30th ,31st or 5th happens to be a holiday it will be deposited before that date. Salary is Credited in UTI bank.
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1.7 Training process
All staff/traineesHODs Induction programme Safety measure programme
Duration 1 week
Duration 20 minutes
Trainees /act apprentice
On the job training
Safety measure programme
Duration 6 months
Duration 20 minutes
Technical assistant and above/HODs
Tech training/non tech training
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Technical Trainees assistant /act and apprentice above/HODs
Arranged through On the institutions job training Tech Duration Arranged training/non 6through months tech Private training Pvt institutions
Safety measure Duration Safety 20 measure minutes programme programme
1.8 TRAINING PROCESS JOB DISCRIPTION CARDCATEGORY WISE
Induction programme : All the new employees will be given an induction programme before they actually involve in their respective jobs. The induction programme will be all about the companys structure, policies they follow and how the operation works on daily basis. The duration for the induction programme will be 1 week Safety measure programme : This safety measure includes fire safety, electrical safety, housekeeping, pathway handling,handling equipments etc. This will be done in batches for 15 to 20 minutes for all the employees. The duration for safety measure programme will be for 15 to 20 minutes. On the job training : The on the job training is given only for the trainees and the act apprentice .This training explains the responsibilities in their respective jobs and how to handle it .The duration for on the job training will be for 6 months -1 year The trainees will submit a report after the completion of their training to the concerned HOD.Min 1 year training will be given for both trainees and act apprentice. Technical and non technical training : The technical and non technical training is being conducted for the technical assistants and above category . The company will send the technical assistants and the above staff for the training programme
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conducted by the private institutions, which will be held in city hotels. The technical training basically been given to improve their technical skills. Wherein the non technical is been given to improve their communication and presentation skills. Training as per ISO Procedure Training procedures as per ISO standards are described under clause 4.18 4.18.1 PURPOSE To identify the training needs of all personnel performing activities affecting quality To provide drawing to those personnel identified so that quality related activities are performed effectively.
4.18.2 SCOPE The procedure is applicable to all employees whose work has a bearing on quality.
4.18.3 RESPONSIBILITY Primary responsibility Secondary responsibility Head of the Department Personnel Other Heads of departments and MD
4.18.4 DESCRIPTION A documented system is established and maintained for : Identifying the training needs based on the requirement for existing employees and on the basis of interview assessment form for newly recruited employees. Formulating and imparting the training as identified. Maintaining the training records of employees who have undergone the training.
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Ensuring that personnel performing specific assigned tasks are qualified based on suitable training experience / education.
A detailed procedure is available in the form of Doc. No.QP/PERS/4.18/01 Welfare activity Welfare activity
For all employees
Sports
Library
Family day
Cultural Programme
Canteen
1.9 Welfare activity
Canteen : An exclusive committee is formed to monitor the Canteen Activities. Committee members are elected once in a year. A Committee comprises of 6 members are elected from different category. The cost per lunch is Rs. 21.50/-. 2/3rd of the amount is borne by the company. Manager 1; Staff 1; Section Caption 1; Plant Assiatant 2 and Personnel Dept. -1
WELFARE ACTIVITIES :
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The following welfare activities are carried out in this organization . These activities are carried out in order to inculcate team work, togetherness and to motivate the employees. Library : Altek Beissel maintains library for the employees. The employees will make use of such facilities it upgrade their knowledge level. Family day : Yearly once family day will be celebrated with all family members of Altek Team, which also a recreation and entertaining aspect. Cultural programme : Cultural programme will be celebrated during ayuda pooja every year .All the employees will participate in the pooja. Sports : The sports activity will be conducted for all employees in order to have fun and entertainment and also to motivate the employees to be more active and sportive .
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1.10 TERMINATION PROCESS
Workers
Staff Termination
Trainees/act apprentice
1 month notice
3 months notice
1 day notice
Calculate EL /PF/Gratuity Settlement
Delete the name form the employee master
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1.11 Termination process
The organization is having its own approved Standing Orders through which the entire work force is governed. In detail be it disciplinary action or such other termination process are all governed and followed as per the approved Standing Orders of the Organisation. The termination process differs from category to category. They are as follows:
Workers: The workers can resign the organization by giving 1 month prior notice . This is being followed very strictly. After the notice period the personnel dept will calculate the workers earned leave ,provident fund and gratuity and will settle the amount within a month .
Staff : The staff cadre can quit the organization by giving 3 months prior notice. After the notice period the personnel dept will calculate the workers earned leave , provident fund and gratuity and will settle the amount within a month .
Act apprentice : As per Apprentice act they will be given training only one year. On completion of training Apprentice certificate will be issued. Trainees : Initially they will be given one year training. On satisfactory completion of I year they will be given 2nd year training.
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1.12 Payroll process
Payroll
Attendance
Leave card
Calculation of DBAs
Payroll gernerated by personnel dept
Calculation of tax details , PF, etc by finance
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Remittance to statutory bodies by finance
Auto deposit in employee A/C by finance
1.13 Payroll process
Payroll Process : The payroll process is being done in Altek Beissel by taking 3 factors into consideration: 1) Attendance 2) Deduction/benefits/accruals 3) Leave card Current Legacy Softwares used : HR & payroll SAVIOR Attendance software Fox pro (i.e. swipe card will be linked and attendance tracked) Attendance tracked through SAVIOR and imported in excel sheet and then the payroll generated through Sofia .(from excel sheet to SOFIA manual entry only) The Attendance is fetch through the swipe card /punching card .Currently the time card is being generated through a local package called Savior . From the local package the personnel dept will take the list export in excel sheet and generate payroll through a package called Sofia . Also they maintain manual register for signing the daily attendance in the gate for cross reference . Deduction /benefits/accruals: Each employee will be eligible for a particular DBAs .This will be entered at the time of employee confirmation . The personnel
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SOFIA Visual basic
dept will fetch the required DBAs for the particular employee and generate the payroll at the end of each month. Leave card.: Leave card is considered as an important aspect for generating payroll . Each employee is provided with a leave card .Whenever the employee takes leave this leave card has to be filled up with the prior information to the respective department heads.
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1.14 Pay structure :Benefits
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Staff & above
Plant assistants
Trainees &Act Apprentice Stipend
Casual Girls (Packing & Visual Inspection) Daily Wages
Basic
Basic
HRA(based on category)
DA(varies every year) HRA
Training allowance
Washing allowance
Conveyance(based on category) Education allowance(based on cateogoy) Books periodicals(based on category) Special allowance(marketing executives) Washing allowance(all category) Other allowance(only HOD)
Special allowance
Washing allowance
Educational allowance Special allowance(who are in shifts) Washing allowance Production incentive Attendance bonus
Production incentive(only 50% )
Incentive(only Visual Inspection Girls )
Over time (Double OT)
Over time (Double OT)
Production incentives(based on the production .Only for worked days
Over time (double OT)basic/30/8*2* no of man hours LTA one month basic will be given yearly once(on completion of 1 year).Based on category Medical reimbursement quarterly basis(1 month basic)
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Plant assistant: Below mentioned is the salary structure for Plant Assistant. From 1-11-05 till 31-10-06 From 1-11-06 till 31-10-07 From 1-11-07 till 31-10-08 From 1-11-08 till 31-10-09 From 1-11-09 till 31-10-10 Dearness Allowance: Variable DA will be calculated every year in the month of April. Basic Rs.300 Rs.200 Rs.200 Rs.200 Rs.200 HRA 300 100 100 100 100
1.15 Benefits
Medical insurance : The mediclaim is eligible for the HODs ,Sr.Executives,Executive, and sales executives -1 month basic per annum.It is not eligible for ESI covered employees act apprentice. For eligible married employees wife/husband and kids below 21 yrs .For unmarried self only . Medical reimbursement : Eligible for all category of employees. The medical bills can be claimed quarterly once. Accruals : Only during appraisal. If the employee gets an appraisal ,that amount will be given the next month as an arrears.
Tax deduction at source : TDS calculated only for HODs .Others will not be eligible .
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1.16 Pay structure deductions
Deductions :
Staff & above For all categories except Act apprentice Provident fund 12% for actual Basic and DA ESI 4.75% employer contribution and 1.75% employee contribution. Salary Rs,10,000 & above are covered under ESI. Prof tax-based on slab TDS Lunch deductions(186 /- per month)
House rent & electricity.A fixed amt will be deducted every month. Who are in quarters .Note: double bedroom 400/- single bedroom 300/-
Transportation charges only for 1st shift 100/- per month will be deducted .only working days. Calculation- 100/26 * no of days in I shift
Salary advance if any(max 2000/- under emergency)
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Types of leave :
Earned leave Should be informed in advance(15 days before)
Medical leave It is eligible for ESI non covered employees. 6 days per calendar year . (if it is above 2 days medical certificate have to provided.1/2 day allowed (Max 30 days can accumulate)
Casual leave 6days per calendar year.1/2 day not allowed .Should inform earlier.6 days cannot be carry forward.
Compensatory off If the emp work on holidays compensatory off will be given.8 hours should be completed before or after this off.
Only on completion of 240 days as per rules.(man worked days only be calculated ) Eligibility -3 days and above Only. Eligible employees can avail this leave 3 times per year.
Not more than 2 days in a month. If they take more than 2 days it will be considered as LOP.
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Earned leave and Casual leave : If the employee exceeds the available leave except washing allowance it will taken as LOP and will be deducted from the salary . Leave card : The leave card will be filled in by the employees which will be updated in the system also . Leave travel allowance : One month basic for eligible person , LTA given only on completion of 1 yr and it is annually paid. Gratuity : Last Drawn / Basic * 15/26 * no of years service completed . EL encashment : Basic +DA/30 * no of credit EL days in credit Calendar year For leave calculation they take calendar year(Jan- Dec ) .For PF and others they take financial year Leave encashment : The leave encashment should have the following criterias Workers and below - 30 days accrual HODs -60 days accrual- for executives,Sr .executive and HODs
Bonus The statutory bonus will be given yearly once to all the employees in order to motivate them and to improve the companies production .
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Loans- The loans will be given to employees upon request and will be deducted in equal installments from the employee salary.Max Rs.2000/- eligible for workers only.
1.17 Incentive/bonus/allowances
Attendance bonus- The attendance bonus have certain criterias which have to be fulfilled . Based on that the bonus will be given. 1 day leave eligible ,more than 1 day is not eligible. Washing allowance The washing allowance is paid fully to employees even on Loss of pay . Production incentive Based on slab. Based on production volume it is fixed. For eg : for this may month it will be paid in April .Since the production volume have to be calculated .Min achievement should be 63% yield, 35 lakhs production eligibility is allowed. Swaging not calculated for prod incentive. Incentive amt * no of days worked / days in a month Yield Committee : An exclusive committee is formed to monitor the yield and production. Committee members are elected every month. Committee members are elected from each category. Accounts Manager Quality Manager Production Manager Section Caption - 1 Plant Assiatant - 2 Incentive for sales executives: The organization holds 4 sales executives . There is no separate incentives for the sales executive .A consolidated salary has been paid to them .
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Overtime : The overtime is calculated only for act apprentice, trainee and plant assistant . Extra hours : The extra hours calculated only for technical assistant and section captain .They have a slab .If they work 2 hrs extra an amount will be given. If they work for 4hrs there is a slab and if they work for 8 hrs there is a slab fixed .
1.18 Reports
1.MIS reports done manually now .The following data are being fetched and a monthly report has been generated every month having information for the month as well as cumulative for the year. Category wise month wise Personnel Strength Details of new appointments and left employees Contract payments for the month and cumulative for the year Profiles of Age Group, Qualification, Experience, Marital status Accident report for the month List of Employees department wise as on date Consolidated Salary Statement for the month and annual Absenteeism chart for the month and cumulative for the year
2.The payroll are being generated for all employees and reports are generated. 3. Statutory reports Leave register Bonus statement calculation PF annual returns Salary register- category wise Prof tax calculation ESI half yearly and annual returns.
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4.List of registers maintained for the Inspector of factories 1. Adult register 2. Attendance register 3. National and festival holidays register 4. Health register 5. Accident register 6. Dangerous occurrence register 7. Wage register 8. Leave with wages register 9. Maternity register 10. Register of exemptions 11. Particulars of rooms in the factory 5.Forms 1. 2. 3. 4. 5. 6. 7. 8. 9. Form 21- Half yearly return Form 22- Annual return Form 18- Report of accident Form 6- ESI (half yearly and annual returns) Form 3A ,6A,remittance details annual return Form 5 ,form 10,form 12 A PF returns-monthly return Form c and form d Bonus act Form 1 gratuity Form A labor welfare fund
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