BPO Operations

A Summary

NIBU JACOB




This report provides details regarding the completed tasks and assignments.
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Table of Contents
1: TEAM MEMBERS ................................................................................................................................. 3
2: IMPLEMENTED PROCESSES ................................................................................................................. 3
3: STATISTICS ........................................................................................................................................... 4
4: MONTHLY STATISTCS OF EACH PROCESS ........................................................................................... 5
5: UTILIZATION ........................................................................................................................................ 8
6: FUTURE PLAN .................................................................................................................................... 17
7: SUPPORT REQUIRED ......................................................................................................................... 19
8: TRAINING AND DEVELOPMENT ........................................................................................................ 19
9: OTHER MATTERS ............................................................................................................................... 19
10: RECOMMENDATION FOR FUTURE .................................................................................................. 19
11: BOOK KEEPING AND ACCOUNTING TEAM ...................................................................................... 20
12: RESPONSIBILITIES OF BOOK KEEPING AND ACCOUNTING TEAM ................................................... 20











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1: TEAM MEMBERS
The following team members are involved in Al Essa Back office operations. There are 4 members
who are assigned to back office works.
NAME DESIGNATION
Nibu Jacob Process Lead- Accounts
Sajan S Supervisor/Executive
Santosh Babu Executive
Anitha S Executive

Three resources (Sajan, Santhosh and Anitha) are exclusively for Back office operations.
2: IMPLEMENTED PROCESSES
The following processes are implemented.
A. ITEM CREATION AND/AMENDMENTS
B. PRICE CREATION AND/AMENDMENTS
C. SALES ORDER VALIDATION
D. SUPPLIER BILL ACCOUNTING OF ACCOUNTS PAYABLE
E. MIS REPORTING
F. DOCUMENT MANAGEMENT( ON IMPLEMENTATION STAGE)
ITEM CREATION AND/AMENDMENTS
When a new sales order is received at any particular business unit, that business unit representative
will check in the ERP whether the item description for that particular item is already there in the
system or not. If the description is there in the system it is understood that the company has a trading
history for that particular item, and if the Item description is not there in the system it will be taken as
a new item to be traded. Then the first step is to create in the ERP an ITEM CODE for that new item.
This process is called ITEM MASTER CREATION.
PRICE CREATION AND/AMEDMENTS
When a new Customer order is received by any particular business unit, then the first step is to create
in the ERP an Item code for that new item. After creating the Item codes for new Items or Identify the
existing Item codes for the Items in the customer order from ERP. We have to put NEW PRICES for the
Item Codes as per the customer order. This process is called PRICE MASTER CREATION.
SALES ORDER VALIDATION
Sales Order Validation is the process in which customer enquiry, supplier quotation; Al-Essa
quotation and customer order are checked in compliance and approved to proceed for Purchase
Order.
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Sales order is validated to ensure that the item ordered are as per the customer purchase order
requirement and meets all criteria to place purchase order. The benefit of this would make to ensure
that customer order is exactly matching with the purchase order.
SUPPLIER BILL ACCOUNTING
Enter all suppler Invoices into ERP Accounts Payable Module.

MIS REPORTING
Creation of monthly consolidated performance reports, corporate performance reports and BU wise
performance reports.

DOCUMENT MANAGEMENT
Systematic arrangement of the Al Essa E- Documents by uploading the documents to Share Point
and tagging it as per management instructed codes.

In addition to the above processes, we are doing Tender Management Date entry process also, which
has been started before I join. Currently we are doing only data entry which takes only 2 hour per
week. Anitha is handling now
3: STATISTICS
As on Oct 2014
# PROCESS NAME USER
PROCESS
START
TOTAL
1 Item Master Creation ANITHA DEC -2013 4557
2 Price Creation SANTHOSH BABU NOV-2013 4461
3 Sales Order Validation SANTHOSH BABU JAN -2014 600
4 Accounts Payable SAJAN
MAY -
2014 1234
5 MIS Report SAJAN JUN-2013 280
6 Document Management ANITHA SEP-2014 Implementation stage

Sales order validation process: This process is being implemented in phase by phase manner. Started
working for MTG01 and now its extended to MTG 02, 03, 05, ATG 01, 02, 04, 05 and ATG 07. In
future this processes to be applied to more and more business units.
Document management process is under implementation stage



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4: MONTHLY STATISTCS OF EACH PROCESS

ITEM MASTER CREATION


Monthly average= 414 nos











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PRICE CREATION



Monthly avergae=371 nos
SALES ORDER VALIDATION


Monthly averge=54 nos
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SUPPLIER BILL ACCOUNTING


Monthly average=205. Since ERP was under maintenance during the month of OCT we were able to
do only 32 nos. This shortage can be cover up during the month of Nov.

MIS REPORTS

This process has started from June onward. Average=28 nos

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5: UTILIZATION

The time taken to complete the above processes (ITEM MASTER, PRICE CREATION, SO VALIDATION,
and SUPPLIER BILL ACCOUNTING) has reduced considerably when compared to the time that was
spent on the initial stages. This shows increase in efficiency and reduction in utilization. The
following table and chart shows the efficiency and utilization.

All the time for each process is computed on the average basis



TIME EFFICIENCY CHART FOR ITEM MASTER CREATION
The following chart shows the time take to complete ITEM MASTER creation process from its
inception till now





Initially we took 20 minutes and gradually it comes down to 15 and settled in 10 minutes. Now we
need minimum 10 minutes to complete one process. While computing this time we took into
consider the speed of the system.

#In the May the time has increased because the resource who is working for this process has
immediately left the organisation and Anitha took charge in place of him.





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TIME EFFICIENCY CHART FOR PRICE MASTER CREATION
The following chart shows the time take to complete PRICE CREATION process from its inception till
now


Initially we took 10minutes and gradually it comes down to 7and settled in5 minutes. Now
we need minimum 5 minutes to complete one process. While computing this time we took into
consider the speed of the system




















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TIME EFFICIENCY CHART FOR SALES ORDER VALIDATION

The following chart shows the time take to complete PRICE CREATION process from its inception till
now



Initially we took 120 minutes and gradually it comes down to 90 and settled in 60 minutes.
Now we need minimum 5 minutes to complete one process. While computing this time we took into
consider the speed of the system. Please note that this is an average time.























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TIME EFFICIENCY CHART FOR ACCOUNTS PAYABLES

The following chart shows the time take to complete PRICE CREATION process from its inception till
now




Initially we took 20minutes and gradually it comes down to 15 and settled in 10 minutes. Now we
need minimum 10 minutes to complete one process. While computing this time we took into
consider the speed of the system. Please note that this is an average time




















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TIME EFFICEIENCY CHART FOR MIS REPORTS



We took the time only from Nov onwards although we started this process from JUNE onwards





























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TIME UTILISATION CHART FOR ITEM MASTER CREATION

The following chart shows the time spent on item master and percentage of time. The percentage is
based on 176 hours in a month (22 working days @8 per hour)



TIME UTILISATION CHART FOR PRICE MASTER CREATION

The following chart shows the time spent on price creation and percentage of time. The percentage
is based on 176 hours in a month (22 working days @8 per hour)









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TIME UTILISATION CHART FOR SALES ORDER VALIDATION

The following chart shows the time spent on sales order validation and percentage of time. The
percentage is based on 176 hours in a month (22 working days @8 per hour)




TIME UTILISATION CHART FOR ACCOUNTS PAYABLES
The following chart shows the time spent on supplier bill accounting and percentage of time. The
percentage is based on 176 hours in a month (22 working days @8 per hour)





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TIME UTILISATION CHART FOR MIS REPORTS

The following chart shows the time spent on MIS reports and percentage of time. The percentage is
based on 176 hours in a month (22 working days @8 per hour)





UTILIZATION PER TEAM MEMBERS- ANITHA

The following utilization per individual is calculated on last 3 months performance. Since Document
management process is under implementation stage we put some provision time for that also



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UTILIZATION PER TEAM MEMBERS- SANTHOSH BABU

The following utilization per individual is calculated on last 3 months performance. Document
management process is under test basis we put that time as a provision.




UTILIZATION PER TEAM MEMBERS- SAJAN

The following utilization per individual is calculated on last 3 months performance. Document
management process is under test basis we put that time as a provision.




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UTILIZATION TEAM AVERAGE

The productive time of BPO resources are only 63% and balance are non- productive time. This time
can be utilized for performing additional identified tasks.


6: FUTURE PLAN
A. Implementation of existing process through share point
B. Preparation of Bank reconciliation statement
C. Sales order validation4th Phase to incorporate ATG06, CON, MTG04, SSG09, SSG02
D. Sales order validation5th Phase to incorporate SSG03, SSG04, SSG05 & Projects
E. Bank guarantee process
F. GRN entry process
G. Payment voucher entry
H. Expense voucher entry
I. Cash voucher entry
J. Purchase order validation
A. Share Point implementation

In existing process, Various business units send mail to back office with standard attachment
stating that the various tasks should be finished
The main disadvantages of this flow is that the person who sends the mail is not able to
trace the progress of this work unless and until he sends the mail or make call to the persons
responsible for the assigned tasks.
When share point is implemented, Instead of sending mail to back office, the business units
upload the standard attachment in the share point or standard document can be created in
share point where business units can update the details
Advantages of Share point implementation
This will eliminates sending of mails to and fro.
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Since attachments are send by mail there are chances of delay or bouncing the mails, if
the size of attachment is high. When documents can be uploaded in share point, these
problems can be eliminated.
Any persons in the loop can trace the progress of the work by accessing to the share
point without making contacting the responsible persons.
Work log can be generated automatically thereby avoiding the manual creation of work
log.
History of the task can be known
Implementation stage

We have shared the process flow with Mr Salahudeen and he is working on this to
proceed. It will take another two or three months to implement


B. Bank Reconciliation Process
Reconcile all the Al Essa Bank accounts with the help of uploaded documents in
share point.
This process has already started on a trial basis. Because of incompleteness of
ledger, we were not able to continue the same.
However, we are planning to resume this process with the help of vouchers
uploaded in share point.
Ensure that all the Bank vouchers are serially numbered and saved in the respective
Bank folders. Once all the vouchers are serially numbered and stored, we should be
able to perform BR without much difficulty.
We are in the process of verifying the documents uploaded in share point. Once it is
finished we are able to start bank reconciliation on trial basis.
C. Sales order validation
We are planning to implement 4th and 5th stage implementation of sales order
validation process in 6 months
These are for ATG06, CON, MTG04, SSG09, SSG02, SSG03, SSG04, SSG05 and
projects
D. Other process.
The following processes we have identified and now it is in the pipeline
Bank Guarantee monitoring
GRN entry
Payment voucher entry
Expense voucher entry
Cash voucher entry
Purchase order validation-Review of PO created by order processing team
MIS Hubs: On test basis we have generated some specified reports for head office
team. But this is not going to implement in immediate future as these reports are
very crucial for the end user for making any decisions. We can look into this process
later on once everything is set.
In respect of above process, priorities are given to share point, Bank reconciliation and sales order
validation process. Once it is finished we will look into other identified process
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7: SUPPORT REQUIRED
For implementing the processes the support and co-ordination is required from
Management
Accounts
Order processing team
ERP
IT
8: TRAINING AND DEVELOPMENT
Persons working for back office have undergone training at real time environment at Kuwait.
The knowledge they acquired can be imparted for developing any additional resources, once
they joined.
In case of any updation of the process, the main office will intimate us and provide guidance
and training before start of the work.
In case of any issues, the matter will be escalated to the management to resolve the same.
9: OTHER MATTERS
We maintain work log and time sheet
We prepared process document and process for all the processes that we implemented.
We conducted survey among the main office team and they are all satisfied with the Back
office services. Only concern they raised is timing and holidays.
Regarding the holidays, we intimate the Kuwait in advance so that they can plan the work
accordingly
The real cost benefit can be reaped only in long run. For eg When one persons work is
handled by back office team, that same person can be assigned with higher responsibility
by way of promotion or assigning another responsibility when another resource resigns
without recruiting a new one
10: RECOMMENDATION FOR FUTURE
OPTION 1
Since Kowdiar 2
nd
phase has completed with 20 seats, these facilities can be utilized for
doing outsourcing work for external parties.
Outsourcing can be accounting outsource, date entry outsource etc
If we explore US markets or even Middle East markets, this can be possible. Only thing is we
need a contact person to procure work for us.
For this purpose a team should be created at Kowdiar second phase and they will work
exclusively for external customers. This team is an extension of VITS.
The income generated from these operations should be bonus to us rather than
transferring income from one bucket to another.
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OPTION 2
Expand the VITS software operations.
Software team should be divided. One team should cater the needs of Group company and
other team should be engaged in external parties( both local and international clients)
For this purpose a team should be created at Kowdiar second phase and they will work
exclusively for external customers.
Only minimum software resources should be utilized only for catering the needs of Group
companies.
The income generated from these operations should be bonus to us rather than
transferring income from one bucket to another.

11: BOOK KEEPING AND ACCOUNTING TEAM
The following are the team members involved in book-Keeping activities
NAME DESIGNATION
Nibu Jacob Process Lead- Accounts
Ratheep.A.R Accounts Assistant
Bipin Kumar Accounts Assistant

12: RESPONSIBILITIES OF BOOK KEEPING AND ACCOUNTING TEAM
Day to day maintenance of books of accounts.
Preparation of POs from clients, Invoices, proforma invoices, and issue of Purchase Orders
for Asset Procurement & Payments thereon etc
Cash management
Preparation of Payroll of employees
Calculation of service tax, TDS, PF ESI and other statutory dues
Filing of Service tax return, TDS , PF and ESI returns and issue of Certificates as applicable
Banking Activities
Communication and updation of payment related activity with Service Providers
Collection follow-up with Clients and through Marketing