Newco Singapore Pte Ltd29 July 2016
Organisational Operations
Business Process Analysis 29/7/2016
139 10 11 12
Organization Process Analysis1
Newco Singapore Pte Ltd2 3 4 5 6 7 8
Gen Mgt
budget
AnnualBudget
Finance
budget
HR
budget
Mkt&Sales
budget
Purchasing
budget
Manufacturing
budget
Warehouse
budget
Logistics
budget
QC Dept
budget
Admin
budget
Plg & Contr
budget
IT
budget
Annual OpsPlan
Plan Plan Plan Plan Plan
Engineering
budget
Plan Plan Plan Plan Plan Plan Plan
Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual
variance variance variance variancet variance variance variance variance variance variance variance variance
Raw Matstocks data
Production
Delivery call-offs
Packaging
Micro ProdPlan
QC
Productsstocksdata
Store Holdingbatch coding
QCpalletization
SalesInvoice/DO
sales orders
Order Entry
checkavailability
InwardLogistics
OutwardLogistics
ProdPlanning
Customers
AccountsReceivable
payment
AccountsPayable
HR AdmRec & Resign
TrainingSalary Adm
Cash-flowAsset Mgt
Mgt ReportsExch Rate
Bus DevCRM
Mgt Reports
SourcingVendor MgtContracting
Plan MaintCap DevelQual AssCAPEX
Hdlng MCsInvent Mgt
CustomsContractorsForwarders
QC Protocol Office MainSecurity
Insurance
ForecastingMacro PlanMicro PlanMgt Report
MIS serviceEmail
Asset MgtIT Support
Mc MaintWorkshop
Corp GovernComms
vendors
supplycontracts
ManagementMeeting
waste disposal
Utility (boilers,power, air, etc)
PlannedMaint
GeneralUpkeep
IT ServerRoom
WH Mgt
Laboratory
ERPSystem
Reception
Mails
DeliveryVehicles
Security
WSH
Website
BankFaciltiies
HR
Jacob Business Armour Pte Ltd Confidential JaICPR
failed low < average normal > average excellentclass ratio year
Line1ALine1B
Line2ALine2B
Line3ALine3B
Line4ALine4B
Line5ALine5B
Line6ALine6B
Line7ALine7B
Line8ALine8B
Line9ALine9B
Line10ALine10B
Line11ALine11B
Line12ALine12B
Line13ALine13B
Line14ALine14BLine14B
Line15ALine15B
Line16ALine16B
Line17ALine17B
Line18ALine18B
Highlights
Activity or Efficiency ratios:
Liquidity ratios:
Solvency ratios:
Profitability ratios:
Valuation ratios:
Cla
ss R
atio
s
18
5
9
10
Inventory Turnover
Working Capital Turnover
Asset Turnover
Inventory:Total Asset
Working Capital Ratio
Quick Liquidity Ratio
Average Collection Period
Debt ratio
Financial Leverage Ratio
Interest Coverage Ratio
Net Profit Margin
Return on Equity
Return on Asset
Earnings Per Share
Price Earnings Ratio
Book Value-Price Ratio
Net Book value:Share capital
Net Book value - Market Capital
1
2
3
4
6
7
8
11
12
13
14
15
16
17
2015
20152014
2015
2015
2014
2014
2015
2015
Overall profitability performance is negative. , Return on Equity is/are negative.
Net Book (tangible) value has been increased by 333.4% from shareholder equity.
2015
2015
2015
2015
Solvency is dangerously low. Debt ratio, Financial Leverage Ratio is negative and situation is critical.
2015
2015
2015
2014
2014
2014
2014
2015
2014
Business efficiency is average, now try to improve further.
Overall liquidity is too low. Inventory:Total AssetQuick Liquidity Ratio is negative, situation is critical.
2014
2014
20142015
2015
2015
2015
Newco Singapore Pte LtdAssignment Date: 1 Jul 2016
2014
2014
2014
2014
2014
2014
2014
A
B
C
D
E
A
A
A
B
B
B
B
C
C
C
D
D
D
E
E
E
E
E
JaCCM Review 8/8/2016
Newco Singapore Pte Ltd
SN Department Mission VCN M1 M2 M3
1 Gen Mgt Provide organization the business targets, direction, resources and control to achieve theorganization's mission as set by shareholders. 4 3 3 2
2 Finance Manage financial and accounting needs to support the operation of the organisation. 8 5 5 4
3 HR Dept Arrange an on-going provision of suitable employees and staff to support and operate theorganization's functions. 5 4 7 1
4 Mkt & Sales Establish and build customer base that will purchase the goods and services created by theorganization. 6 11 6 3
5 PurchasingAcquire according to specifications and at optimal purchase terms and conditions the rawmaterials, services and required plant and equipment that the organization require to carryout business activities.
4 3 6 5
6 Manufacturing Produce the products and/or services at the set quality standards and sufficient quantity thatthe organization sells to customers. 3 0 18 13
7 Warehouse Store, maintain and administer the stocks of raw materials and auxiliary materials to makesuch stocks available to production as required. 3 0 5 7
8 Logistics Arrange for the physical movement, storage and distribution of raw materials and finishedgoods. 6 5 9 2
9 QC Dept Conduct quality control actions on production of goods so as to establish if they meet withthe set quality, safety and operational requirements. 3 2 4 1
10 Admin Provide administrative services to support and facilitate the organization's operations. 4 5 0 0
11 Planing & Control Plan and control the scheduling of various manufacturing processes so as to accomplish theoptimal time of delivery of fiinish products to meet with sales obligations or targets. 3 3 2 3
12 IT Dept Provide the services to manage the business information of the organization so that dataand records can be made available, confidential and secured. 4 1 9 2
13 Engineering Provide maintenance to plant and equipment and manage the engineering projects that theorganization require. 3 9 13 5
Mission Statement
Newco Singapore Pte Ltd
No Departments Supervision Peo Mat Eqpt Proc Data Doc Fin Cus Supplier Law & Reg
1 Gen Mgt 2 . 1 . 1 1 . 1 . 1 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 1 . 0 0 . 0 . 0 0 . 1 . 0
2 Finance 0 . 1 . 3 0 . 2 . 1 0 . 0 . 0 0 . 1 . 1 0 . 2 . 0 1 . 1 . 0 1 . 1 . 1 1 . 0 . 0 0 . 0 . 0 0 . 0 . 0 1 . 1 . 0
3 HR Dept 1 . 2 . 1 1 . 1 . 0 0 . 0 . 0 0 . 0 . 0 0 . 1 . 0 2 . 1 . 0 1 . 1 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 1 . 0
4 Mkt & Sales 1 . 1 . 0 1 . 2 . 0 0 . 0 . 0 0 . 0 . 0 1 . 1 . 0 0 . 0 . 0 3 . 0 . 0 0 . 0 . 0 4. 2 . 3 0 . 0 . 0 1 . 0 . 0
5 Purchasing 0 . 2 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 1 . 2 . 1 1 . 1 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 1 . 1 . 4 0 . 0 . 0
6 Manufacturing 0 . 2 . 2 0 . 1 . 3 0 . 4 . 0 0 . 2 . 3 0 . 2 . 1 0 . 2 . 0 0 . 2 . 0 0 . 0 . 0 0 . 0 . 0 0 . 2 . 3 0 . 1 . 0
7 Warehouse 0 . 1 . 2 0 . 2 . 0 0 . 0 . 1 0 . 2 . 0 0 . 0 . 1 0 . 0 . 0 0 . 0 . 3 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0
8 Logistics 0 . 3 . 1 0 . 3 . 0 0 . 0 . 0 2 . 2 . 0 0 . 0 . 1 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 2 . 1 . 0 1 . 0 . 0 0 . 1 . 2
9 QC Dept 1 . 0 . 0 0 . 3 . 0 0 . 0 . 0 1 . 1 . 0 0 . 0 . 1 0 . 0 . 1 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0
10 Admin 1 . 0 . 0 1 . 0 . 0 0 . 0 . 1 0 . 0 . 0 1 . 0 . 0 0 . 0 . 0 1 . 0 . 0 0 . 0 . 1 0 . 0 . 0 0 . 0 . 0 1 . 0 . 0
11 Planing & Control 0 . 1 . 0 1 . 1 . 0 0 . 0 . 0 0 . 0 . 0 1 . 0 . 0 1 . 0 . 3 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0
12 IT Dept 0 . 1 . 1 0 . 1 . 0 0 . 0 . 0 0 . 1 . 2 0 . 4 . 0 0 . 1 . 0 1 . 1 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0
13 Engineering 0 . 2 . 0 0 . 1 . 2 4 . 2 . 1 4 . 2 . 2 0 . 4 . 0 0 . 0 . 0 0 . 1 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 1 . 1 . 0
14
Rating Report
Newco Singapore Pte Ltd Department Report for: Finance
No Rating VCN Risk Solution Remarks Action
1 M3 SupervisionManaged by CFO and CEO, who both can seek bankfacilities. Chairman should sign bank documents exceeding $1million.
Discuss at Board, and formalise this as SOP This will avoid APB-type case Yes
2 M3 Supervision CFO is qualified but is too busy Train a successor or back-up Maybe Stephanie Teo can besuccessor Yes
3 M3 Equipment ERP constantly gives problems, and sometimes seriouserrors. Review conditions for change to SAP system. Call current vendor to correct
before deciding to explore SAP. Yes
4 M3 DocumentationSometimes, payments to suppliers are not supported bysigned Goods Receipt Vouchers. This can result in falsepayments
To ensure that the 3-document check system for payment isstrictly upheld.
Problem is putting the 3-documents together into sets. Tommy
5 M2 Supervision The AR Finance Supervisor is often away on sick leave. Thisresults in slower collection of ARs.
Speak to the supervisor and/or appoint another person to takeover. This is more a personal issue. Yes
6 M2 People There is insufficient finance staff, who have often to work toomuch overtime. Vigilance and accuracy may be uncertain. Recruit additional person. This happens only during month
end closing. No
7 M2 People Sales persons often do not offer assistance to chase forpayment. CFO to speak to Sales Manager on getting required support. Need to formalise coordination via
a regular meeting. yes
8 M2 Process Sometimes there are duplicate POs raised for samepurchase. This can result in repeat payments. Purchasing Department should correct this problem. PO raised are not properly
recorded. Yes
9 M2 Documentation Issuance of Aging Accounts is often not done on time. Due tothis, it is hard to see the AR position.
Check if the ERP system can be used to generate the ARAging Accounts by 1st week every month.
Important to alleviate payment ofsalaries and AP. Yes
10 M1 Data Due to exchange rates, actual costs of imported materials arehigher than budget. CFO to discuss with CEO to consider hedging.
Consider keeping an US$ accountto receive and payment overseassuppliers.
Yes
11 M1 Documentation Currently, Invoice and DO documents are printed at Financeand sent to Logistics Department. Consider allowing Logistics Dept to print documents. Talk with IT Department. Linda Teo
12 M1 Finance Occasionally, there can be shortage of cashflow to makepayments to suppliers.
Improve the system of cashflow forecasting, and to make ARcollection more effective.
Tony (IT Dept) to discuss issuewith CFO. Yes
13 M1 Law&Reg ACRA Reporting sometimes gets delayed. Inputs not alwaystimely. Review and set proper time planning This is the best possible, nothing
better can be done. No
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