Order Booking:
This is an optional order booking procedure used to book Project Jobs that are determined to be low-risk, with a Contract Value, and contain approved terms and conditions. A simple Order Acknowledgment letter is provided to the customer in lieu of extensive contract negotiations and the Regional Contract Manager handles any customer disagreements as the job proceeds through construction.
This policy is applicable only to Install or Service Jobs with a contract value.
- This procedure Requires a bid on approved Industry Standard Terms & Conditions.
- The Sales Rep decides whether he/she would like to use the procedure to book a job and submits request (including full Booking Package – signed Purchase Order, Honeywell bid and CAP) to Contract Manager (³ $ specified value) or Booking Admin.
- The Contract Manager (³ $ specified value) or Booking Admin (< $ specified value) determines that the job meets the conditions of the Policy i.e. :
- Bid must be on approved Industry Standard Terms & Conditions;
- Booking Admin sends the template Order Acknowledgement to the customer. This template must be approved by Contract Management.
- Booking Admin ensures approved job is booked.
- If the customer has questions or concerns regarding the Order Acknowledgement and our stated terms and conditions, the Contract Manager will work with the customer to reach a mutually satisfactory agreement as the booked job proceeds through construction.
Order confirmations:
Written Order confirmations are to be issued to acknowledge Purchase Orders, Contracts, Letter of Awards from customers and would be wholesome to send an order acceptance signed by sales execution and controller pointing out deviation if any, from agreed terms & conditions.
This acknowledgment must contain.
- Claim for advance payment if applicable
- Deviations not agreed by sales
- Overall Project execution schedule
Project Reporting under POC:
Model with the revenue recognition following the rules of the POC method (Percentage of Completion) on cost to cost basis adopting would be salubrious. The POC chapter would explain about the features of POC.
Project Account for each Order:
For each individual order, a project account (WBS) and Order Booking Document must be opened in the Enterprise Resource Planning (ERP) system, immediately upon receipt of the purchase order/ Contract from the customer. For different domain contracts, under those domains wise WBS elements to be opened, however the sales order will be one and based on customer contract.
Order Booking Document Sample Format:
GAUTAM KOPPALA ORG
ORDER BOOKING DOCUMENT
Project Name
Booking Ref
Div/Vert Mrkt
CAP No.
Financial Summary
Customer Name
Customer PO No.
In Order Currency
List Price
0.00
End User
Project Start Date
Local Currency
In US Dollars
Selling Price
0.00
Payment terms
Project End Date
Local Currency
In US Dollars
Direct Cost
-
Project No.
Warranty Period
Margin
Earning Billing Factor
Exch. Rate – USD
Approval Check List
PO Ref
Revenue
Cost
CAP Process Completed
Yes / No / NA
Terms &Conditions approved by Contracts Mgr
Yes / No / NA
Confirmed order received from Customer
Yes / No
Approval Received from SBU
Yes / No
Sales Estimate Attached to this Document
Yes / No
Estimate Reviewed / Approved by Eng
Yes / No / NA
Order type:
Line of Business Projects
Line of Business Add on Orders
Mini projects
Spare parts/ Others
Maintenance contract
Spot Service
Small Works/Channels
Add any comments if required:-
Total
0
0
Account Manager
Date:
Sales Leader
Date:
BOOKING ADMINISTRATOR
Date:
Documents to be attached:
1. Copy of Purchase order
2. Copy of CAP Approval / Sign off
3. Initial sales estimate as per Estimate Format
Sales Margin:
- Causes of not attaining Sales Margin, mentioned in the order booking:
ü New items considered, due to flaw in design.
ü Wrong Ordering
ü Over run on Bought outs
ü Overrun on Site Preparations
ü Matching the Customers Requirements
ü Short Supplies
ü Short coming in Logistics
ü Short coming in Indents
ü and others
Over Head Costs:
- Causes of Over Head Costs, mentioned in the order booking:
ü Oral commitments
ü Commercial/ Logistics Hurdles
ü Unproductive like excessive Demo or Publicity costs
ü Too many site trips by too many people
ü Diversion costs
ü Communication Costs
ü Poor Projections
ü Transit damage due to long storage of material
ü Quality Costs
ü Less Control on cash flows
ü Others
Orders Report
Short Cycle Orders Report
The Orders Report provides high-level new orders and backlog orders information by SBG and SBU. As defined in this report, “orders” are sales revenues from customer orders received. Based on the nature of the sales cycle of Company’s lines of business, two separate reports are issued: Short Cycle Orders Report and Long Cycle Orders Report. The data that is captured in these reports are compiled from each SBG’s corresponding ERP system.
The Short Cycle Orders Report captures new orders by SBG and for specific SBUs whose sales cycle is short. The report includes actual orders received Quarter-to-date (QTD), an orders forecast for the full quarter; and shows comparisons vs. latest forecast, and Prior Year (PY). The Short Cycle Order Report is a weekly report.
The Long Cycle Orders Report captures backlog orders information by SBG and for specific SBUs whose sales cycle is long, as in the case where sales are tied to long-term contracts. The report includes backlog orders by month from the beginning of the current year; and shows comparisons vs. PY. The Long Cycle Orders Report is a monthly report.
Key Financial Metric(s):
The following metric is captured in the Long Cycle Orders Report:
Current Month Ending Backlog
+ Ending backlog last month
+ New orders
– Shipments
+ Other Orders
= Current Month Ending Backlog
Sales Flash Report
The monthly Sales Flash Report provides high-level external sales and operating revenue data. The report includes: segment revenue information by SBG and SBU for current month, quarter-to-date (QTD) and year-to-date (YTD); and shows comparisons vs. latest forecast, Annual Operating Plan (AOP) and Prior Year (PY).
Key Financial Metric(s):
Revenue Growth %
Current Period
Net Sales & Operating Revenue – External (FM)
¸
Comparison Period
Net Sales & Operating Revenue – External (FM)
-1
Key Financial Metric(s):
Variable Margin % (
Variable Contribution
¸
Net Sales & Operating Revenue – External
The numerator in this metric calculation is Variable Contribution. The following calculation is performed to report the “external” view of Variable Contribution:
+ Total Revenue (Internal & External)
– Total Variable Cost of Goods Sales
= Variable Contribution
Gross Margin %
Gross Profit
¸
Net Sales & Operating Revenue – External
The numerator in this metric calculation is Gross Profit. Within FM, the following calculation is performed to report the “external” view of Gross Profit:
+ Variable Contribution
– Total Fixed Cost of Goods Sold
– Other Manufacturing Costs
– Distribution & Logistics Expense
– Other Operating Expense
= Gross Profit
The Total Fixed Cost grouping on the Income Statement Report is made up of all other operational costs that are not considered variable costs including Corporate approved adjustments. This cost grouping is used exclusively for internal management reporting purposes and is only referenced on the Income Statement Report. Total Fixed Cost should not be confused with the term Fixed Cost of Goods Sold defined in the Corporate Management Income Statement Chapter. Total Fixed Costs is the sum of the following cost components:
+ Total Fixed Cost of Goods Sold
+ Other Manufacturing Costs
+ Distribution & Logistics Expense
+ Other Operating Expense
+ Research, Development & Engineering Expense
+ Selling, General & Administrative Expense
+ Corporate Assessment (COGS) Pre Tax
+ Corporate Assessment (SG&A) Pre Tax
+ Margin Adjustment Pre Tax
+ Defined Pension Adjust Pre Tax
= Total Fixed Costs
POME LIGHTER VEIN:
Project Manager Performance Appraisal
Here are some more well-turned phrases to help you judge your charges’ capabilities:
Performance Factors
Far Exceeds Requirements
Exceeds Requirements
Meets Requirements
Needs some Improvement
Does not meet Requirements
Quality
Leaps tall buildings with a single bound
Needs a running start to leap tall buildings
Can only leap small buildings
Crashes into buildings
Cannot recognize buildings
Timeliness
Is faster than a bullet
Is as fast as a bullet
Not quite as fast as a bullet
Is as fast as a slow bullet
Wounds self with gun
Initiative
Is stronger than a locomotive
Is stronger than a bull elephant
Is stronger than a bull
Shoots the bull
Smells like a bull
Adaptability
Walks on water consistently
Walks on water in emergencies
Washes with water
Drinks water
Passes water in emergencies
Communication
Talks with God
Talks with Angels
Talks to self
Argues with self
Loses those arguments
Order Bookings Steps:
This is to facilitate the correct process for entering and managing bookings from approval to pursue opportunity/prospect to customer order and to define the Inputs, responsibilities and information flow for prospect/bookings
Note #
Who
Details
1
Sales
Sales opportunity (Prospect) has been identified and approval to pursue has been obtained in line with Approval Matrix and in accordance with company policies/procedures.
2
Sales Managers
Ensure all prospects have been approved to pursue in accordance with Company Policy/Procedures, contract approval process.
3
Sales
Enter the Prospect into ERP including but not limited to:
- Clear General Description of Opportunity with Company reference first then description of opportunity (Eg: BP – Blending System)
- Order date and Estimated finish
- Transaction Type (TTP) ie. Base, Variation
- Status ie 1 Identified Project, etc.
- Select Type ie. Project, Contract, Spot or Other* (refer definitions at the end of procedure)
- Term & Multiplier (if applicable)
- Order Value
- C/b ratio
- Probability fields of Project and Us
Enter details in the Prospect footer screen Including but not limited to:
- Allocate Sales Engineer % of booking value
- Enter Customer Details: Customer Name, key influences, End User, Contractor
- Enter Prospect Allocation fields ie. Proposal #, Proposal date, Competition, Department, BU, LOB, Market, Team
Note: ERP/ PMIS automatically allocates a Prospect Number
4
Sales; Project Managers; Team Leaders
If the approved opportunity is a variation to an existing Project enter into ERP (for Project Managers/Team Leaders) including but not limited to:
- As per Item 3 above
- Project/Contract Number
- Estimated breakdown of labour & Non-labour
- Populate book/bill profile
- Allocate Engineer
Complete All other mandatory fields
5
Sales and where applicable; Project Managers & Team Leaders
Determine if the Customer is a New Customer or existing.
- If the Customer is New advise Credit Department of prospective Customer details, prospect number, amount and brief description of opportunity being quoted to allow Credit Department to preliminary check credit worthiness.
- If the Customer is an existing Customer advise Credit Department of Customer, prospect number and amount to allow Credit Department to preliminary check existing Customers credit limit.
Note: These checks are only preliminary and more detailed checks will be required when opportunity is close to final stage.
6
Credit Department
Advise Originator of status of preliminary credit check in a timely manner.
7
Sales and where applicable;
Project Managers & Team Leaders
Ensure status of prospect always contains accurate information and are updated prior to the 1st Wednesday of the fiscal month to ensure that book/bill forecast is accurate.
Important Note: Prospect data forms the book/bill part of the financial forecast.
8
Sales Managers
Check ERP prospects for accuracy, ensuring that all of items in Step 3 & 4 have been included and that they contain up to date information.
Ensure that all prospects are updated prior to the 1st Wednesday of the fiscal month and updated before the close of business at the end of the fiscal month (if required).
9
Project Managers; Team Leaders
Update prospect status and information immediately a change is required. If there are any major changes escalate to Sales Manager.
10
Finance Manager
As part of forecast cycle review book/bill data and validate with Sales Management where applicable.
11
Sales
At final stage of proposal to ensure Customer has completed appropriate Credit application forms, where applicable, in accordance with the business policies and procedures.
Forward completed credit application to Credit Department for Credit worthiness checking along with prospect number, purchase order (if received) and any other information.
12
Credit Department
Credit check Customer for credit worthiness etc in line with Company policy and ACS policy.
13
Sales
When purchase order received from Customer update prospect and probability fields to 100% complete handover to Project Operations including but not limited to Purchase order, contract, signed, Proposal, etc.
14
Credit Department
Ensure prospect is updated to include status of credit worthiness check.
Advise originator and Project Manager of approval or otherwise.
15
Project Managers; Team Leaders; Others where applicable
Ensure that prospect is checked and consistent with proposal, contract, customer order..
Submit to Operations Management for approval.
16
Operations Manager; Service Manager
Ensure prospect is accurate and review for consistency with proposal, contract, customer order and any other relevant documentation.
Approve prospect in ERP by changing the status to BO (booked) in a timely manner prior to month end.
Advise Originator or newly created job number if Base Order booking, where applicable.
Definitions
PROJECT – “Projects and Renewals” – Projects and Renewals Guidelines
“Contract” – these involves having maintenance contracts with the customer to perform work for a set period of time, usually one year or more. The revenue for the nominated time period is a set figure. The cost may be an estimate only.
“Spot” – these jobs are smaller in value and shorter in timeframe. Order value is generally less than US$20K and for unexpected less than 5 months.
For the purposes of this procedure the following definitions have been highlighted:
Spot is defined as work that is small in value, delivered in a short period of time (considered 1 month) and does not involve a sales representative bid/estimate process. For spot work, revenue should be recognized based on billings and costs recognized as incurred. Cost may be accrued if it is determined that the revenue has been recognized with incomplete cost recognition.
All orders that do not fit the Spot, Parts or Periodic definition. This type of job requires Project Management planning and controls. Is usually delivered over an extended period of time and includes both labour and parts provision.
POME LIGHTER VEIN:
You see a gorgeous girl at a party.
You go up to her and say, “I am very rich. Marry me!”
That’s Direct Marketing.
You’re at a party with a bunch of friends and see a gorgeous girl.
One of your friends goes up to her and pointing at you and says,
“He’s very rich. Marry him.”
That’s Advertising.
You see a gorgeous girl at a party.
You go up to her and get her telephone number.
The next day you call and say, “Hi, I’m very rich. Marry me.”
That’s Telemarketing.
You’re at a party and see a gorgeous girl.
You get up and straighten your tie; you walk up to her and pour
her a drink.
You open the door for her; pick up her bag after she drops it,
offer her a ride, and then say,
“By the way, I’m very rich. Will you marry me?”
That’s Public Relations.
You’re at a party and see a gorgeous girl.
She walks up to you and says, “You are very rich.”
That’s Brand Recognition.
You see a gorgeous girl at a party.
You go up to her and say, “I’m rich. Marry me”
She gives you a nice hard slap on your face.
That’s Customer Feedback!!!!
Watch the video related to book summaries
My top 10 books/poems I read/studied at uni over the last few years. Enjoy! – there are a few i’d have liked to have had in there but, this could go on forever, i’ll cover them in another vid!
Help answer the question about book summaries
About Author
GAUTAM KOPPALA -
About the Author:
With over ten years, track record of successful leadership, excellent results through strategic skills in driving revenue and profit growth. Demonstrated ability to identify and trouble shoot critical issues impacting productivity, cost, distribution, marketing, Strategic positioning, sales and financial operations, with innate ability to build and maintain strong client relationships in operations. Expert in distilling and managing processes, enhancing internal structures, and promoting multi-skilled team competencies via nurturing mentorship and inspirational leadership. Engagements have spanned operational, strategic, technological and change management roles. Academically, I am a cum laude graduate with a Bachelor of Technology degree in Electrical and Electronics Engineering (B-Tech E.E.E.) and a post graduate in Masters in Human Resources Management (M.H.R.M.) and Masters of Foreign Trade (M.F.T.). As you will see my Post Graduation’s were been studied part-time, as well as working full-time as an Engineer. I feel that this demonstrates my ability to maintain dedication, motivation and enthusiasm for a project management over a long period of time. In addition, balancing full-time work with study has perfected my time-management and organizational skills. I believe that my college degrees and gamut certifications in combination with my extensive broad-based work experience along with my drive, resourcefulness and determination, would make me an excellent candidate for a senior management position with any company. Highlights of my background include Operations related Commercial, Supply chain, Sales with a magnificent experience in Project management, technically oriented towards Automation and Security Systems in Industrial and Building sectors. Presently, writing a book on Projects and Operations Management (comprise of 12 volumes, 6K pages), and awaited for the reputed publications. These books can be checked in Google books and scribd websites too.
