2. GPS Contracts Savings
• Why GPS Contract Savings developed and
used for?
– Sourcing Decision Analysis
– Cost management (CoMa) Reporting
– Means of tracking Buyers, suppliers
commodity managers etc. performance.
3. How GPS Savings Calculated?
• Initially savings are calculated using Action plans.
• Following problems reported due to using Action
plans to calculate Savings:
– Multiple Actions plans were created because Standard
blanket contract issued only for Approved action plans.
– Creation of multiple Action Plans covering the same
effective dates, which artificially inflates savings.
4. GPS Savings in GPS Antwerp
Release
• An enhancement was implemented in the
GPS Antwerp Release to allow the creation
and/or maintenance of Standard Blanket
CLIs without an Action Plan.
– This causes savings (positive or negative) to be
underreported.
5. Contracts Savings
• To overcome the mentioned problems
World-Wide Purchasing Cost Management
and the Global Business Process Owner
proposed to use ‘Contracts’ instead of
Action plan to calculate Savings.
6. Contracts Savings
• Advantages of using Contracts
– Savings are accurate.
– Total Price is used to calculate Savings instead
of ‘A’ price.
Ref:
Total price =Base Price + Total Base Material
Cost + Price Add-Ons + Taxes
‘A’ Price = Base Price + Total Base Material
Cost
7. Contracts Savings
• Advantages of using Contracts
– Savings for a contract can also be allocated to
the plants using the contract, instead of all
plants using the part (as is done on Action
Plans).
8. Contracts Savings
• Initially Contract Savings functionality was
part of Global Purchasing Reporting System
(GPRS).
• Later moved to Supply Chain Metrics
Reporting (SCMR).
• Finally detached from SCMR and
implemented as separate enhancement in
GPS.
9. 700
GPS
PLIPC1B
CSIDS
PLIPC1B
MMDB
PLIPC1B
GPDS
PLIPC1B
WPCS
PLIPC4B
Supplier Name & Address,
Supplier Contracts
DSM = D
WWP/PC&L
DS/DRM
06/01/98
PRIMO
PLIPC4B
MPS
PLIPC1B
GQTS
(SAMPLE/PPM)
PLIPC1B
Contract
DSM = S
GMTOPS
PLIPC4B
MGO-A
MGO-C
PLIPC4B
TMS
PLIPC1B
SPA
Contract
Supplier
Contracts
eFX
PLIPC1 B
Shadow File
DSM = D
DSM = D
Currency
Conversion
Rates
Part Cost
Organization
Name, Buyer,
Contract
DSM = D
DSM = D
DSM = D
Part Volumes
Part Validity
DSM = D
Parts per Million
Country, Supplier,
CISCO Supplier,
Quality Ratings
Part
Shared
Purchasing
Data
GPS
Datastore
Multiple IPCs
Steel
Parts
DSM = D
Tooling POs
Units Of Measure,
INCO Codes
EISIS
Contract
LEGACY
DATA
Parts, Volumes,
Suppliers, Contracts
Supplier
Quality
Ratings
SPDI, MPCE
Contract
Savings
Savings
GPS-Contract Savings
10. Contract Savings Architecture
•
Contract Savings
File
CS Adjustment
GPS
DB2
TROY SQL
Server
Stored Procedure
for Merging Contract
Savings Batch and
Adjustment data and
create MDB files
MDB files
MS IIS Server
ASP Pages
GPS APP Center
MS ACCESS
FTP
Contract
savings
file
PLIPC1B
Mainframe at PLANO
USTRSGSCM025
CS Web Adjustment
CS Reporting
CS Batch Process
USTRSGSCM025 Update ADJMNT /
ADJMNT_DTL SQL tables
User Downloads
Detail, Summary,
Left Side, Variance
and Exception
report MDB files.
Using SQL server DTS
store Contract Savings
File into SQL table.
11. Contract Savings
Batch Process
CS-1
Extract and Prepare
Timeline records
(add Currency
Conversion Rate, add
GPS CLI info., break
into months, match
with Volumes, etc.)
CS-2
Calculate
Performance for
each monthly
record
CS-3
Add Action Plan
Information to each
monthly record
CS-4
Send Contract
Savings file(s) to
Reporting Server
CONTRACT
SAVINGS
BATCH PROCESS
12. When Contract Savings batch
process run?
• The creation of Contract Savings information is expected
to be a weekly batch process, which runs after the jobs to
post GPS and Legacy contracts to Timeline.
• The Contract Savings Batch Process must run immediately
after Posting to Timeline because given the way the
Contract Savings Part trigger(s) are created, this is the only
time when the GPS Contract data, Timeline Contract Data,
and Contract Savings Part trigger data is synchronized.
• The Contract Savings Batch Process relies on the fact that
this data will be synchronized to work properly and to
report correct, consistent results.
13. Contract Savings Release 1.0,
December, 2000
• This release implemented when the GPS
Contract Savings Batch Process to calculate
Contract Savings finalized.
14. Contract Savings Release 2.0, Currency
Conversion Release, December, 2001
• Released when the Currency Conversion method
for Contract Savings was modified to:
– Report contracts for European receiving plants in EUR
instead of USD. Approximately 95% of European
contracts now have a currency of EUR. Reporting
these contracts in EUR instead of USD will lessen
inaccuracies due to currency conversion from European
performance data. USD and EUR are the only valid
destination currencies etc.
15. Contract Savings Release 3.0, Part
Relationship Release July, 2002
The original design of Contract Savings only looked back
one generation of replaced parts and then only at
confirmed replaced part relationships.
This led to many parts having no performance calculated or
performance being calculated against Costbook because
an Old Price could not be determined.
A great deal of manual effort was then spent to track down
what the performance for a part should have been and
add the resulting information into the Contract Savings
Adjustments application.
16. Contract Savings Release 3.0, Part
Relationship Release July, 2002
• This led to many parts having no
performance calculated or performance being
calculated against Costbook because an Old
Price could not be determined.
17. Contract Savings 3.1, Net Material
Performance Release, March 2003
• An issue was discovered with the Option
Adjusted Forward (OAF) rates maintained by
NYTO and the algorithm defined for
currency conversion. Because of this issue
the currency conversion algorithm for future
months is being modified to use the rate most
recently provided by NYTO for that month.
18. Contract Savings Adjustment
(CSA)
The Contract Savings Adjustment (CSA) module
enables users to enter, maintain, and view
adjustments for Contract Savings in the Contract
Savings process in GPS.
The users of the CSA module will interact with it
through multiple pages and through graphical data
selections.
The Contract Savings Reporting Database merges
the contract savings adjustments with the contract
savings from GPS.
19. Contract Savings Adjustment
(CSA)
The CSA module is comprised of the following page
types:
1.Adjustment related
– Enables adjustment inquiries, modifications and additions. This
first page enables entry and viewing of key adjustment
information.
2.Security related
– Login, User Maintenance, Change Password Etc.
3.Feedback
– The Feedback module provides all General Motors users the
ability to send written feedback to the System Owner via E-Mail
regarding the CSA application.
20. Contract Savings Reports
The Contract Savings Reporting Database merges
the contract savings adjustments with the contract
savings from GPS.
Using Contract Savings Reporting Database
following reports are created
– Summary Reports
– Variance Reports
Analysts use the Reports to identify which records
has changes in their performance (savings) from
one reporting cycle to the next.
21. Contract Savings 4.0
• Client: GM WWP IS&S
• Customer: GM WWP Cost Management
• Other Stakeholders:
GM WWP
GMASB
GM Supply Base
GM Platform Management Team
GM SMTs
22. Contract Savings 4.0
1.Commercial Savings: Part relationships are not confirmed in GPS
in many cases. These relationships are crucial to calculating
savings as part numbers change due to EWO’s. Contract
Savings compares today’s price to the price on year ago to
measure part performance, then tracks how engineering
changes have affected that price in order to derive purchasing
performance.
2.Contract Savings will be used as the GMNA common system to
track material cost. This means that Engineering Performance
(Technical Savings) will be tracked from the system as carefully
as Purchasing Performance (Commercial Savings). This will
require enhancements to the system to allow adjustments to
Engineering Performance, and perhaps other changes (Web
Adjustment tool).
23. Contract Savings 4.0
3. Need to be able to track savings (Commercial and Technical) by
product line. Currently, volume records do not have required
product line information.
4. In order to globalize the system, enhancements will be
required due to Brazil’s savings calculation against an index of
inflation and devaluation. Similar issues may exist in Asia
Pacific.
24. Contract Savings 4.0
Goals of Contracts Savings
The two primary goals of the project are:
• Reduce the amount of manual reconciliation required
to provide accurate Material Performance Tracking
Information
• Utilize a common Contract Savings reporting process
for GM
25. Scope of Contract Savings 4.0
• The following changes are in scope
• 1. Changes to the contract savings master file
• 2. Changes to GPS
• 3. Changes to the Contract Savings Web
• Adjustment tool
• The following changes are not in scope:
• 1. Changes to legacy system data feeds to GPS
• 2. Changes to WWP/Financial savings definition
and policies
• GPS changes not directly related to contract savings
26. Action Plan
• An Action Plan is a document that is created by a
buyer to solicit pricing information for parts from
available suppliers who produce these parts.
• This is accomplished by issuing Request for
Quotes (RFQ) to selected suppliers, updating this
information in the action plan and submitting a
recommendation for an award.
27. Action Plan
• There are five types of action plans for Product
Purchasing:
1. Advanced Purchasing Action Plan—new parts not
production released.
2. Global Sourcing Action Plan—parts released and on
current contracts.
3. Supplier Negotiation Action Plan—price changes
with current supplier.
4. PICOS Action Plan—workshop at supplier’s facility.
5. Value Management Action Plan—similar to PICOS,
only on a broader scale.
