SAP Implementation in

(ECC 6.0, BW 7.X)

PROJECT CHARTER
MAGNA INTERNATIONAL

Final
Prepared by:
Members of FI/CO, SD, MM, PP, BW, BASIS Team

Complied by:

Date:

1
Document History:

Final

2
Contents
1. Project overview 4
1.1 Introduction 4
1.2 Magna International Company Profile 4
1.3 Project Concept 6
1.3.1 Assumptions 6
1.4 Goals and Objectives 6
1.4.1 The SAP ECC and SAP BW implementation would provide following benefits 6
1.5 High Level Scope 7

Final
1.5.1 Processes 7
1.5.2 Scope 7
1.5.2. Functional Scope/Roles & Responsibilities 7
1.6 Geographical Locations/Organizations 8
1.7 Critical Success Factors 8
2. High Level Project Plan & Timeline 8
2.1 Project Deliverables by Phase based on Activate Framework 8
2.2 Budget & Resource Plan 8
2.3 Project Team Organization 9
2.4 Project Team Responsibilities 9
2.4.1 Management Team Responsibilities 9
FICO – Financials & Controlling 9
BW- Business Warehouse 11
Basis 11
2.5 Quality Assurance Plans 12
Internal QA 12
External QA 12
2.6 Change Leadership Plans 12
2.7 End User Training Plans 13
3. Risk Assessment 13
4. Project Communication Practices 13
4.1 Facilitated Workshops 13
4.2 Issue Management 14
4.3 Scope Change Management 15
5. Status Reports & Meetings 16
6. Next Steps 17
7. Sign-off – Charter Approval 17
3
1. Project overview
1.1 Introduction

purchased SAP ECC 6.0 and SAP BW 7.X software and wants to implement it in order to enhance
their business process. This charter aims at formulating the goals and objectives, scope, project
organization, roles and plans to serve as the foundation for the SAP implementation. The
approval of this charter provides authorization for the SAP implementation project to proceed to
the Blueprint Phase.

1.2 Magna International Company Profile

Final
About Magna International:

We are a leading global automotive supplier with 341 manufacturing facilities and 88 product
development, engineering, and sales centers in 29 countries. We have over 171,000 employees
focused on delivering superior value to our customers through innovative processes and World
Class Manufacturing.

In the coming years, most of the growth in auto production and vehicle sales is expected to come
from China, South America, Eastern Europe and India and Magna is present in each region. Our
operations span five continents and 29 countries, giving us a global footprint to support every
major automaker in the world. An investment in Magna is an investment in a global network of
341 manufacturing operations and 88 product development, engineering, and sales centers.

About Magna in North America

The resilient North American auto industry, one of the most powerful engines driving the
economy in this region, continues to be shaped by globalization and the power of innovation. New
technologies and systems are accelerating the pace of change in an industry that is poised to
provide transportation solutions for the 21st century.
With more than 130 manufacturing facilities and over 75,000 employees throughout Canada,
Mexico, and the United States, Magna is helping to forge this dramatic shift in the continent’s
largest manufacturing industry.
By the Numbers

Presence United States Canada Mexico

Manufacturing/
54 49 31
Assembly
Engineering/ Sales/
12 9 0
Product Development
Employees 27750 19650 28400

4
Magna at a Glance

$37.8B in sales
50+ customers
343 manufacturing facilities
World’s 4th largest automotive parts supplier
168,000+ team members
29 countries

Products
Our full systems approach to innovation enables us to define problems and find the best, most
comprehensive solutions more clearly. It allows us to create technologies that seamlessly integrate
with the entire vehicle so that our partners can service their customers and build their brands

Final
while pushing the world forward.

Power & Vision- Evolution of Transportation

Transforming the way vehicles move and interact with the world around them with scalable
electrified propulsion, driver assistance systems, mechatronics, mirrors, and lighting.

● High Voltage Electrified Products

● Conventional and Mild Hybrid Powertrain Technologies

● Powertrain Modules & Components

● ADAS and Automated Driving

● Control Modules

● Mechatronics

● Mirrors

● Lighting

Body Exteriors & Structures- Shaping Tomorrow's Vehicles Today

Designing and engineering vehicle architectures with product, process, and material innovations
that maximize weight savings, strength, and adaptability.

● Body Structures

● Chassis Structures

● Exterior Systems & Modules

● Trim & Greenhouse Technologies

● Active Aerodynamics

5
 ● Energy Storage Systems

Seating Systems - Magna Flexible Seating Solutions

Innovating for comfortable, safe, and connected experience for all vehicle occupants with flexible
configurations for every use case and cargo need.

● Seat Complete

● Structural Products

● Foam and Trim

● Biosciences

Final
Complete Vehicles- Complete Expertise for Complete Vehicles

Delivering everything from concepts and systems to vehicle engineering and complete vehicle
manufacturing for the industry’s best brands.

● Complete Vehicle Engineering

● Complete Vehicle Manufacturing

1.3 Project Concept

Implementing SAP ERP system for Magna International client using ACTIVATE Framework with
Functional Modules FI/CO, SD, MM/WM, and PP to support strategic goals. The ECC 6.0
software bundle will enable Magna International to operate its business effectively and
efficiently using a single integrated information system. SAP ECC 6.0 has been designed to be the
best ERP system in the core areas of Finance & Controlling, Sales and Distribution, Materials
Management, Production Planning and Business Warehouse. SAP ECC 6.0, an international
product, fulfills the local fiscal, tax and language requirement of most nations so will best suit
Magna International to manage its global operations.

Implementing SAP BW 7.X system for Magna International client using ACTIVATE Framework
offers great query performance with very little administration effort, offers the ability to analyze
multidimensional data sources. It easily integrates with other platforms.
It acts as a good link to the planning and execution applications. This way you can gain insights
from the data and improve business processes.

1.3.1 Assumptions

It is assumed that SAP ECC 6.0 and SAP BW 7.X meet the business requirements of Magna
International and Magna International will adopt SAP ECC 6.0 standard processes and use SAP
BW 7.X for generating business reports.

6
 All policy decisions and project issues requiring resolution will be resolved by the implementation
team whenever possible. Issues and decisions not resolved by the implementation team will be
escalated to the Steering Committee.

1.4 Goals and Objectives

The main goal of the SAP implementation project is to improve the business process of Magna
International by integrating FI/CO, SD, MM/WM, and PP modules for transactions which would
simplify operations processes by eliminating unnecessary paperwork, reviews, approvals, and
duplication of efforts.

1.4.1 The SAP ECC and SAP BW implementation would provide following benefits

Final
- Elimination of manual work through automated business support processes, leading to a
reduced workload for individual employees and enhancing the processing and recording of
transactions by 25%.
- Enhanced external and internal financial reporting.
- Reduces the costs of procurement and cooperation with suppliers and increase the
effectiveness of inventory management in the company.
- Support in the optimum selection of suppliers and of the delivery execution method.
- Providing departments with direct and easy access to financial, purchasing, production, sales,
and reports data.
- Creating timely and accurate reports for better decision making.
- Establishing secure and reliable systems that are easy to use and maintain.
- Adopting best practices from SAP in daily business activities to be recognized among the best
in the industry.
- SAP BW offers great query performance with very less administration effort; it offers the ability
to analyze multidimensional data sources.

1.5 High Level Scope

1.5.1 Processes

The SAP ECC 6.0 implementation project has been defined with the objective to automate the
operational processes to make them more efficient and effective in Magna International. In
Addition, it will also eradicate the repetitive processes thereby saving resources of the company.

1.5.2 Scope

The project Scope is defined as per following three domains:

Functional Scope: Defined by the business functions proposed implementation.
Technical Scope: defined to support the defined functional activities.
Geographic and Organizational Scope: defined by the locations within Magna International into
which it is planned to implement these functions.

7
Functional Scope/Roles & Responsibilities

The following list contains the SAP modules that are to be included in the scope of this project,
which in turn will be utilized to meet Magna International’ s SAP implementation objectives. The
precise details and processes will be determined, documented, and agreed upon during the
Blueprint phase.

FICO – Financials and Controlling

SD – Sales and Distribution
MM – Materials Management
WM – Warehouse Management
PP- Production Planning
BW-Business warehouse

Final
BASIS

Geographical Locations/Organizations

The geographical organizations of Magna International will be categorized into two locations – US
and Canada for their transportation. The project will be conducted in Magna International’ s US
and Canada location.

1.7 Critical Success Factors

Critical success factors for all SAP projects at Magna International include the following:
- Top Management commitment and Support
- Developing and using a compelling project charter with both functional and
technological well-defined scope.
- Dedicated core project team members
- Selecting the right team (competence)
- Change management in the business and within the project team
- Accelerated and decisive decision-making
- Paying attention to user training and support needs
- Management Structure
- Software Development, Testing & Troubleshooting
- Integration of the system.

8
 Final
2. High Level Project Plan & Timeline
2.1 Project Deliverables by Phase based on Activate Framework

Phase Deliverables Expected Date

Prepare Company Overview
Project Charter Proposal/Sign Off
Key Data Structure
Business Blue Print Finalization
Explore Solution Validation
Gap Closure
Determination of Configuration Values
Approval of Release and Sprint Plan
Realize Configuration
Solution Walk Through
Data Migration
Testing & UAT
Deploy Organizational & Production Readiness
Cutover
In Production/Go Live
Support for Production

2.2 Budget & Resource Plan

Since it is a simulated project, it is assumed that all the expenses are to be borne by SAPSOL. The
total Budget for this simulated project implementation at, testing and end-user training is
estimated at around $50,000 which would be sponsored by SAPSOL itself.

2.3 Project Team Organization

9
2.4 Project Team Responsibilities
This section describes the management team and project team roles and responsibilities

2.4.1 Management Team Responsibilities

The management team consists of members who are actively involved in this project and whose
interest may be positively or negatively affected as a result of project execution or successful

Final
project completion.

Project Sponsor: SAPSOL

Project Office: SAPSOL Mississauga
Project Steering Committee: SAPSOL Project
Manager:

● Responsible for project deliverables and project management.

● Defining the implementation strategy, preparing maintaining the project plan, budget
and work-plan.
● Acquisition, assignment, and ongoing management of project resources.

● Communication of project status to the steering committee, project sponsor, project

office, and the project team.
● Streamlining the issue resolution process.

Core Team(s): FI/CO, SD, MM/WM, PP and BW Team(s)

FICO – Financials & Controlling

● Understanding the Business Requirements of an organization attending the meeting with

finance department and the respective stakeholders.
● Provide appropriate system solutions; identify, interpret, validate, and document customer
requirements.
● Identify gaps, issues and work around solutions and document the AS-IS and TO-BE
processes.
● Preparing the Business Blue-Print Document.

● Preparing the functional specification for all the RICEFW objects identified – Custom
Developments
10
 ● Configuring the Global settings and Enterprise Structure requirements.

● Configuring the FI modules; General Ledger (GL), Accounts Payable (AP), Accounts
Receivables (AR), Bank accounting and Asset accounting with respect to the external
reporting requirements.
● Configuring CO (controlling) modules to include cost elements, internal orders, cost
centers, profit centers.
● Document the configuration of the complete implementation.

● Act as a liaison between the business users, other functional consultants, and the technical
team.
● Preparing the operation manuals for end users and conducting user training.

Final
● Perform and document functional testing and integration testing.

● Go-live preparation and post go live support.

SD - Sales and Distribution

● Understand the business requirements, prepare TO-BE document, and sign-off with users
for Business Blue Print Document.
● Setting up Organizational Structure of Sales & Distribution and relevant configuration for
order – to cash procedures
● Configuring Master Data, Sales Orders including scheduling agreements, contracts, and
Pricing.
● Configuring Sales, Shipping and Billing documents including credit and debit memo

● Configuring integration points with MM and FICO, material determination, account

determination
● Finalization of sales groups, payment terms, procedure.

● Define and set up of Taxation structure in consultation with other consultants.

● Finalization of Number Ranges.

● Configuration of cross channel order fulfilment, available to promise (ATP) & return
management.
● Preparation of configuration document, testing document, and manuals.

● Integration testing with other modules.

● Go-Live preparation and post go-live support.

● Troubleshoot issues in the system and provide support during changes in configuration.

● Accept additional responsibility based on project requirements.

MM - Material Management
11
 ● Understand the business requirements, preparing AS-IS, and TO-BE document for Procure
to Pay process
● Sign-off with users for Business blueprint document.

● Setting up organization structure of material management and relevant configuration like

Purchase organization, valuation area plants, storage location, and warehouse structure,
etc.
● Finalization of material groups, purchasing groups, payment terms, Incoterms,

▪ Pricing Procedure.

● Finalization of various numbers ranges for material master, vendor master and all
purchasing and inventory documents.

Final
● Configuration of release procedure for purchasing document like Purchase requisition and
purchase order
● Configuring material management like material master data, purchasing and inventory
management.
● Conducting end-user training for purchasing officers and warehouse management
modules.
● Configuration of setting in material management for purchase requisition, purchase orders
and vendor master records.
● Configured and implemented Release procedure for various purchase requisition, purchase
orders and schedule agreements.
● Configuration of creation of storage location of different movement types with Goods issue
and Goods Receipt.
● Performing configuration for quality management module with emphasis on Goods receipt
inspections and vendor evaluation.
● Performing configuration and testing of complete P2P process from determination of
requirements through Logistics invoice verification.
● Preparation of testing document and internal testing

● Preparation of master data templates for various objects like material master, vendor
master, excise master, Info-record, source list, purchase order.
● Integration testing with other modules PP, SD and FI/CO.

● Preparing the user manual and imparting training to business process owners.

● Go-live preparation and post go live support.

WM – Warehouse Management
● Understand the business requirements, preparing AS-IS, and TO-BE document and

12
 ● Sign-off with users for Business blueprint document.

● Setting up organization structure of warehouse management and setting up warehouse

numbers structure for storage type, storage section, bin creation and warehouse structure,
etc.
● Setting up put-away and picking stat strategies; Put-away processes ,picking processes
using WM
● Preparation of testing document and internal testing

● Integration testing with other module PP, SD and FI/CO.

● Preparing the user manual and imparting training to business process owners.

Final
● Go-live preparation and post go live support.

PP- Production Planning

● Configure Master Data of Manufacturing Process Flows

● Enter the planned and actual costs.

● Handle the goods movements from the conversion of raw material to semi-finished goods

● Configuring integration points with MM, SD and FICO

● Preparation of testing document and internal testing

● Preparing the user manual and imparting training to business process owners.

● Go-live preparation and post go live support.

BW- Business Warehouse

● Identify the business requirements with the help of existing documents and business
needs.
● Preparation of Blue-print Document.

● Configure global settings and enterprise structure.

● Based on the requirements, determine which pre-delivered functional areas to be included.

● Technical Requirements Planning like frequency of data uploads, events to be triggered

(Process chains).
● Identify the end-user requirements (Bex, Workbook, and Crystal Report) and security
requirements.
● Verify the content activation Result.

● Data conversions and interface programs.

● Review Query performance and feasible options.

13
 ● Aggregation; compression; MultiCube.

● Develop a BW Operations Guide.

● Document the configuration of the complete implementation.

● Validate the reports requirements.

● Perform and document functional testing and integration testing.

● Prepare an end user document.

● Production support after production goes live

Basis

Final
● System Monitoring (Check SAP System, Start Stop SAP Instances)

● System Landscape and Configuration Operations

● Daily monitoring Tasks (System Health and Performance)

● Transport Management System (TMS)

● User Administration (Create, maintain user authorization /create maintain Roles)

● Profile Maintenance (System Profile/Transport Profile)

● Schedule SAP Job

● Database Management

● Client Administration (Create New Clients)

● Check SAP System Logs

● Implement SAP Notes

● Check Background Job Status

2.5 Quality Assurance Plans

The Quality assurance process for the project will be two-tiered with internal quality assurance
using the Magna International SAP methodology, and external quality assurance by SAP specialist
consultants providing formal project health checks.
In short, the quality assurance support will provide:
● A comprehensive project health check at milestones

● Greater awareness of potential implementation issues and risks

● Recommendations for alternate implementation options

● Consistent reporting across all phases of the project

14
 ● Increased confidence in project delivery by both the project team and management

● A link to Magna International quality and audit initiatives

● An audit trail of the project decision process

Internal QA

● Management and project team will review the Project Charter

● Project team and project management will review Business Blueprint design

● Training program – review by project team

Final
● Integration test plan – review by project team

● Acceptance test plan – review by project team

● Site implementation manager is responsible for reviews of acceptance criteria Where

technical specifications are produced, peer reviews will always be conducted

External QA

● External QA reviews (SAP Review Program) to be performed by SAPSOL PAP team at

the indicated project milestones
● Special developments require specific attention to ensure that the performance of the
system is not degraded in any way. All special developments will be subjected to
rigorous reviews for performance and compliance with the recommended standards.
● Use of SAP’s EarlyWatch* (a monitoring tool that monitors the essential administrative
areas of SAP components and keeps you up to date on their performance and stability.
SAP EarlyWatch Alert runs automatically to keep you informed, so you can react to
issues proactively, before they become critical.) to provide online systems diagnostics
● Possible reviews of organizational readiness, fit for purpose, risk assessment or other
specific QA reviews as required by Magna International
● External QA reviews of functional areas to be performed by SAPSOL’s PAP team as
directed by the SAP project sponsor

2.6 Change Leadership Plans

We assume that will be responsible for the change leadership program. To achieve acceptance of
SAP, the SAPSOL PAP team will incorporate business users into relevant phases of the project and
conduct awareness sessions throughout the project, culminating in "just in time" user training.
Issues of change leadership that are relevant to the success of the project, but outside the
authority of the project team, will be directed to the steering committee and to the project
sponsor SAPSOL for resolution within defined timeframes.
15
 2.7 End User Training Plans
A detailed End User Support Document will be produced during the implementation phase and
will supplement this charter. This document will provide details about the activities required to
support the change leadership activities of the project, including communications, impact
analysis, end user training and online documentation. The approach of End-user training and
documentation will be explained in detail in the End user support document. Business owners
will be responsible for ensuring that their staff attends required training sessions.
End-user training will be web-based for all casual users. Classroom sessions will be used where
the web-based learning needs to be supplemented, especially for power users.

Final

3. Risk Assessment
Below is a list of potential risk factors and strategies for managing and minimizing them. The
management of these risks is a critical factor in ensuring the success of the project. An inventory of
risks will be documented and maintained by the project Change Leadership team on an on-going
basis. The risks will be managed with active involvement from the steering committee, project
sponsors and the project managers.
16
 ● Lack of actual involvement of Magna International’s for the functional areas.

● Lack of Change Management

● Poor Data Integration

● Tight Time Schedule

Final

4. Project Communication Practices

This section describes the Project Communications methods by which information is collected,
shared, and acted on by the project team, management, and the steering committee. The
following infrastructure will be used to manage and communicate the status of the project.

17
• Facilitated Workshops
• Issue Management
• Scope Change Management
• Status Reporting & Meetings

4.1 Facilitated Workshops

Over the life of the project, various members of the project team will conduct several workshops
with the larger user community. The first series of workshops will be held during the business
blueprint phase. The purpose of these workshops will be to gain an understanding of current
business processes and the requirements of the new system. The output of these sessions will be
used in the Gap Analysis.

Final

4.2 Issue Management

The issue escalation process will be as
outlined below:

18
 Final

4.3 Scope Change Management

Change management will control any additions, deletions, or modifications to the scope of the
project and the project plan. Any type of change that affects the scope or planned deliverables
must be documented on a change request form and submitted to the project manager. The
project manager will assess the impact of the scope change on both the implementation schedule
and the business community and processes. He/she will then make a recommendation to either
approve the scope change or provide an alternate solution. The project management office and
the business sponsor must approve all scope changes.

The following diagram illustrates the formal process for introducing changes to the project’s
plan, goals, and objectives. A change request form will be used to record submissions,
investigation, review, and approval. All requests will be recorded on the change request log
where their status can be tracked.

19
 Final

5. Status Reports & Meetings

Status reporting and meetings are methods by which Project information is collected, documented,
shared, and acted on by the project team, management, and the steering committee. This project will
use the following framework for status reporting and meetings.

Meeting/Report Details
Each team lead is required to keep the assigned project tasks
Weekly Team Member Status
status current. There will be a weekly team meeting to review
Reports
the status of assigned tasks.
The weekly project status report represents the project’s
progress by team and is completed by the project managers
and distributed to the project management office at the end of
20
 every week. It contains summary information about the work
plan, changes to scope and objectives, and introductions to the
major activities that are planned for the next two weeks. This
Weekly Project Status Report
report will help managers to identify deficiencies, redirect
resources, and keep the project on track.
Weekly status meetings will be held with the entire project
Project Status Meetings team as described above.
Project management office meeting attendees will include
project managers, core team leaders, and the director of
project management.
During these meetings, the core team leaders will discuss the
current state of process integration and any issues that could
affect the scope of the project team’s objectives.

Final
The main focus of this meeting is to:
Improve communications and clarity of project issues
Weekly Project Management
Discuss any issues that affect the project
Office Meeting
Review the status of the project work plan
Focus the team on the project’s goals
Identify areas where assistance may be needed or desired
The agenda for this meeting consists of the open issues related
Steering Committee Status
to the progression of the project and a discussion of the bi-
Meeting
weekly project status report.

6. Next Steps
● Review and approval of the Project Charter

● Official announcement of the project approval – companywide.

● Identification of remaining members of the project team.

7. Sign-off – Charter Approval

Signing this document records the customer’s agreement on the contents of the Project Charter and
confirms the order of how to proceed with the remainder of the project.
21
 Organization Title Date Signature
Project
SAPSOL
Sponsor

Project
Manager

Final

22