Example-Project Brief

BMW Group Page 1Project Brief / <HK Credit Acceptance CAP Scorecard> of 6

1

Project Brief

for < HK Credit Acceptance CAP Scorecard > Version: 1.0Date: 02.04.2014Status: in progress / presented / releasedAuthor: < Peter Zhou>File: prj_brief_HK Credit Acceptance CAP Scorecard.doc

Distribution:< HK >< IT >

< Jessie Zhang; Iron Wu; Kiva Tam><Liyu Yuan ; Subramanian Shankar>

cc: < COO, PMQ >

< Patrick Kara; Jamie Harrison, Aaron Leung , Mat-thew Zane>

Amendment Log:Ver-sion

Date Autors Changes

1.0 09.04.2014

Peter Zhou First Draft

2.0 16.06.2014

Peter Zhou Second Draft

3.0 08.05.2014

Peter Zhou Third Draft

1

document.docx 28.09.2016

General references: Please do not use abbreviations Keep specifications as short as possible but complete Use complete phrases If it makes sense the content from the ticket can be copied into the corresponding

chapter. Discussion of the Project Brief in the Project Brief Forum:

o Mark the text changes in the new version in a different colour o Unmark the changes in the final version


Project background

Currently HK Credit Acceptance customer financial analysis including scorecard calcu-lation process is handled manually leading to the decreased efficiency with impact to Opex. The current process requires manual underwriting by using an Excel spread-sheet for financial analysis and scorecard calculation. Customer's credit application information was cut and pasted from CAP to Excel to generate financial analysis and if adds up the time for related documentation preparation it will take over 60% of the overall process time. In addition, this manual data entry exposes the business to risk of data integrity for the customer financial analysis which credit decision is based upon.

As of Oct. 31st, 2013 the cost per contract for Hong Kong was €295.35 vs. the target of €313. However, the Operations cost per contract was €68.25 vs. the target of €65.90). From July to October, 5 members from the credit acceptance team have been re-quired to work overtime on average of 148 hours each month to support the new busi-ness volume growth. The total 148 hours monthly overtime translates to 0.88 units of additional headcount resources needed to fulfill the extra workload. This extra over-time resource makes up 16% of the current credit acceptance team size.

Objectives – measurable

The objective of this initiative is to implement a credit acceptance financial analysis module in the CAP system for Hong Kong. The benefit and goal of this project will be to improve the integrity of the Hong Kong credit acceptance process, reducing 50% turnaround time on Manual Underwriting (Financial Analysis) from 20 minutes to 10 minutes. The project will also eliminate the intensive excel oriented manual underwrit-ing routine and benefit HK settlement team for quick customer financial data/file transaction between CAP and e-DMS.

The annual estimated total time reduction equates to 0.64HC in HK Credit Acceptance which approximates to €49,000 per annum in savings. In 2014, Cost per contract with this initiative is targeted to drop by €8.13 Euros per contract.

Requirements (outline, regarding the project deliverable)

Scorecard

Scope Hong Kong New Business credit application volume for BMW, MINI, and Alphera Financial analysis module in Netsol System Policy rules HK dealers commission calculation HK customer application information syndication with CAP (including approval let-

ter) Not in Scope

China Mainland Acceptance HK Operating Lease

Interfaces affected (to organisations, projects, systems and processes with names of re-sponsible persons)



Credit Acceptance expects to get rid of the current excel spread sheet data inputs & cal-culation for customer credit assessment but utilize the CAP system for customer financial data input and credit assessment result. Then Settlement team could easily Obtain the customer financial related electronic document (i.e. Approval Letter) from CAP and then save that to e-DMS system directly as a necessary step before settlement. Approach (planned project activities and deliverables with interim acceptances)HK Credit Acceptance CAP Scorecard

Dependency verification April 28th , 2014 HK team raises CR May 19th, 2014 Vendor Quotation June 30th, 2014 Vendor System Development July 31st , 2014 User Application Test August 30th, 2014 Release September 19th, 2014

Constraints and AssumptionsConstraint:

Business expects to see the project go-live within the defined timeline in year 2014 to reach the cost saving target

Assumption: Dependency verification result supports the expectation

Risks (risks with respective measures, persons responsible and dates)

Risk Description Counter Measure Owner Due DateNetsol project quotation might be more expensive than expectation

Look for more IT resource to negotiate with Netsol on technical details if BMW can‘t afford the high cost

Liyu Yuan 08/31/2014

Alternative solutions (outline form, if already known)

No alternative solution

Open issues – Already happened, risk is to be happened.N/A

Profitability / project justification< includes business case (capital value, cash flow, rate of return), monetary benefit that can not be siphoned (e.g. opportunity costs, split capacities (saved ones), retaining efforts / resources while at the same time in-creasing the volume), KPIs of business processes and description of the quality benefit. >

Costs, benefits (quality, quantity):

Cost Type Price (Euro) RemarkIT Cost 45917.60 €Material Cost 40717.60€IT Resource Cost 5,200€

Cost Type Price (Euro) RemarkBusiness Cost 7,800€



Material Cost 0.00€Business Re-source Cost

7,800.00

Cost Type Price (Euro) (7 Months)

Remark

Collectable Bene-fits

49,000.00€

Material Costs 0.00€Personal Costs (Performance In-crease)

49,000.00€

Revenue 0.00€

Sustainability / benefitNr. Measurable project goals / benefit with

reference to the business (Ability of the business)

When does benefit objective enter?Is measured thru:

1 Reduce process risk of complex commu-nication and manual documentation, fil-ing and data input

2 Ensure data consistency for all reports and communications

3. Reduce an average 1.63 manpower in credit acceptance by reducing excel copy and paste efforts

1.63*35000*12 =684600 RMB saving for each year

(Business KPIs or control target values level 3)

Costs and funds coverage:ROI calculation: see Business Case in system GRIPPS, GRIPPS Ticket-/Project-ID ...

Project organisation – Org Chart to be defined hereProject Sponsor: Andreas Modlmayer

Steering Committee: Monthly Project Steering CommitteeEscalation Board:

(if different from SC)Jessie Zhang, Shankar Subramanian, Jamie Harrison

Project Leader: Peter ZhouTeam:

(as far as defined yet)Business Team – Jessie Zhang, Iron Wu, Kiva TamIT Project Team- Liyu Yuan, Xin Yue, Shiping TaoMulti Project Management – Peter Zhou

Quality Assurance in the Project:

(mandatory for projects with critic-ality 1 and 2)

other roles as required, e.g.: Chief Architect:

(mandatory for projects creating an IT solution)

CC Sajeevkumar, FG-350

IT Security Delegate in pro-ject:

(mandatory for projects with critic-



ality 1 and 2)Start-up Manager in project:

(binding agreement with the re-sponsible IT operations depart-

ment)

Project planningMilestones/Gateways/

Dates: Project start (Project

Brief): Further milestones phases

according to the ap-proach:

Acceptance for produc-tion/

Go Live (5a): Transition into organiza-

tion (5b): Project end (closedown re-

port 5c):

02/04/2014

19/09/201429/09/201401/10/2014

Budget: Internal services:

(in man-days)Cumulative values for the project and regular efforts

External services: Cumulative values for the project and regular effortswhere applicable:

HW/SW budget, network connections, miscel-

laneous costs of materials

Cumulative values for the project and regular efforts

Invest (capital ex-penditure):

Cumulative values for the project and regular efforts

Project Sponsor IT Senior Manager

....................................................................

.........Date / Signature Patrick Kara

......................................................................

........ Date / Signature Shankar Sub-ramanian

Business Senior Manager IT Project Manager

....................................................................

.........Date / Signature Jessie Zhang

......................................................................

........ Date / Signature Liyu Yuan



Business Project Leader

....................................................................

.........Date / Signature Peter Zhou


Documents

Example-Project Brief