PDM项目BR08 BudgetingForecasting 0205精品文档Word下载.docx

1、Information Technology Strategy and Plan ConsultancyPhase 3 ReportFebruary 1999Scope and ObjectiveThis project is concerned with creating an environment of greater operational planning and control through upgrading the annual budgeting process, introducing a mechanism for completing rolling forecast

2、s throughout Huawei and reporting performance against both budget and forecast. This project addresses the following: Budget and forecast preparation. Budget approval. Performance analysis and reporting actual against budget / forecast.The focus of this project is on the operational aspects of the b

3、usiness and as such excludes project budgeting. Expenditure approval and cost monitoring for individual projects is addressed in the “Project Investment Management” initiative.The scope of the project will cover all areas of Huaweis business operations, in that each part of the business will need to

4、 be involved in creating budgets and forecasts and in reporting performance against those budgets and forecasts. The main area of impact will be in the finance operation, which will be responsible for management of the budgeting and forecasting process.In designing new budgeting and forecasting proc

5、esses this project will seek to Ieverage the features provided in the General Ledger and General Ledger Desktop Integrator （GLDI） modules of the Oracle suit of applications. Use of these Oracle applications is recommended as the General Ledger is already standard within Huawei and the introduction o

6、f GLDI will allow budgets and forecasts to be created using the flexibility of PC spreadsheets, with the results uploaded to the main financial systems for reporting and performance monitoring.Specific areas included in the scope of Budgeting & Forecasting include: The budget cycle. Overall approach

7、 to budgeting within Huawei. Frequency of forecasting. Level of detail to be included in forecasts. Budgeting / forecasting responsibilities. Performance reporting.The objectives of this project are to: Create and introduce a regular budget cycle. Create and introduce a regular forecasting cycle. Cr

8、eate a mechanism for managing the Budgeting & Forecasting process. Create a performance review mechanism where areas of the business are measured against budget and forecast results.When completed this project will deliver the following improvements as recommended in the IT Strategy and Plan Consult

9、ancy Phase 1 report: A process for preparation of budgets by individual functions, with management review and approval, and monthly reporting of performance. Responsibility centres and review levels for implementing Responsibility Accounting. Measurement standards （trigger levels） for budget varianc

10、e analysis and review. A system of rolling financial forecasts. Modifications to the existing Oracle FIN module controls to enable needed budgetary capabilities and reporting. A spreadsheet based system to provide financial forecasts. A spreadsheet based system to simplify budget preparation.Note: T

11、his project has specifically excluded any reference to Year 2000 capability including Year 2000 contingency planning and compliance issues. As such the IBM consultant team has not provided any advice nor does it make any recommendations in respect of ensuring Year 2000 compliance for any existing or

12、 proposed systems. In all cases where technology solutions are referenced the technology supplier should be contacted to determine Year 2000 compliance status.Business BenefitsIssues being resolvedThis project will have a positive impact on overcoming the following specific issues identified in the

13、IT Strategy and Plan Consultancy Phase 1 report: 50% sales forecast accuracy. Lack of coordination of the annual budgeting process.Intangible benefitsThis project will provide the following intangible benefits: Better vision of actual performance against planned performance. Greater accuracy and thu

14、s reliability in forecasts over time. Clearer assignment of responsibilities. Greater rigour and standardisation in the planning process. Early warning of upcoming likely results and thus an ability to react more quickly.Tangible benefitsThis project will provide the following tangible benefits: Cre

15、ation of budget cycle Creation of forecasting cycle Improvement in cash flowApproachThis project will be undertaken in 3 phases.FocusThe Focus phase is concerned with defining the role budgeting and forecasting will play in supporting the business （e.g. planning, performance evaluation, effort coordination）, and the relationship between budgeting and forecasting. Approaches such as top-down or bottom-up budgeting, functional or process budgeting, fixed or flexible budgeting and correspondi