DRAFT V0.1

1. IOD Product Direction Project PortfolioA2C - Quality insurance plan -Liège, the 27th of August 2004 DRAFT V0.1

2. Introduction • This document is aimed at presenting the work procedures related to the running of A2C phase 2 tool. • A2C Phase 2 is operational since at the end of August 2004 in order to daily process process product inquiries • Any product inquiry is created in A2C on the basis of a pre-specified product, then the product is validated and completed in regard to the common referential. The commercial product data (protocole) are available to register and price the order in SAP UOES. • A2C provides standard messages to the plants with product information (customer and technical product with associated pre-specified products and referentials) translated from Arcelor Steel Exchange Language to local languages. • For further details : • A2C Phase 2 key target processes : • Selection, Completion, Publication, Translation. Sales unit New product Inquiry A2C SAP UOES Product Selection Selected product Product Common Completion Referential Customer Product & Technical Product Protocole Product Order Publication Fulfilment Customer product & Order & Protocole Technical product & references Pre-specified product & Referentials Translation Double-click on the item to edit Legacies OU Sagunto Wallonie Avilès La Magona Centre Fos Sidmar Bremen Eko St Chély

3. Organisation Actors Main responsibilities • The following entities are out of A2C project scope • Any entities of Stainless Steels sector • Any entities of LCS, Long Carbon Steels sector • Any entities of DTT, Distribution Transformation Trading sector • APE business units (FCS sector) Industrial Operations Department • To ensure that common technical referential fit to commercial requirements, are up-to-date and validated by Commercial Department and Plants • To process the product inquiries in order to provide technical answers to commercial sales units • To ensure the products inquiries are covered by pre-specified products of Arcelor technical offer FCS Commercial – General Industry & Auto MTS Manager Technical Support • To check commercial referential are up-to-date and validate their links with technical referential • To investigate and validate specific inquiries from customers when they do not fit with pre-specified products of Arcelor technical offer FCS Commercial – Sales Agencies • To enter the product inquiries and to follow them up throughout their process Plants • To provide dimensional diagrams and feasibility rules (these rules are either managed in A2C tool or directly by the plant) • To validate new technical referential FCS Accountants and Cost Controllers • To use the product catalogue to carry out technico-economical analysis • To provide products costs data for product proximity search engine

4. A2C components (1/3) : referential Summary • COMMON REFERENTIAL • A2C Common Referential is composed of 6 static items supported by 3 dynamic catalogue management tools Commercial Targets Steel Grade • Indeed, A2C Common Referential is composed of a set of commercial targets, technical targets, customer rules, commercial and technical pre-specified products and of feasibility diagrams. • Defining commercial targets is the first step. Then, for a set of commercial targets, a technical target is defined. Pre-Technical Pre-Specified Products are built with technical targets. To push Pre-Specified Products toward the customer, there is a translation to express them in the customer language in Commercial Pre-Specified Products. Feasibility diagrams are attached to each Pre-Specified Product Customer Rules Feasibility Diagrams Technical Targets Tolerances Severity Steel Grade Surface Tolerances Sev. Protection Surface Protection Others Others Commercial Pre-Specified Products Technical Pre-Specified Products Profusion Control Toolkit Order Book Review Toolkit Change Management Toolkit Defining commercial targets is the first step. Then, for a set of commercial targets, a technical target is defined. Pre-Technical Pre-Specified Products are built with technical targets. To push Pre-Specified Products toward the customer, there is a translation to express them in the customer language in Commercial Pre-Specified Products. Feasibility diagrams are attached to each Pre-Specified Product.

5. A2C components (2/3) : PSE Proximity Search Engine rules The Proximity Search Engine (PSE) is fully operational • Proximity search engine is an advanced business tool used in A2C to propose multiple Pre-Specified Products to fulfil a customer demand at the lowest cost & risk. • It is a rules based engine including formulas and various models which measure similarity between a customer demand and its associated multi-proposals. 

6. A2C components (3/3) : Mappings Mappings diagram Mappings are required to exchange information between the different systems Code book language SAP Leverage • Products inquiries processed by A2C are seized in the commercial IS SAP Leverage and the resulting specified products are sent to the plant and the protocol (needed data for pricing) is returned to IS SAP Leverage. • Each system has its own language. • Therefore, a translation from one system to another is required. The translators contain mapping rules defined by business team. Three types of mapping exist : • SAP Leverage to A2C • A2C to SAP Leverage • A2C to Plants Inquiry Protocol A2C SEL : common language for product specification Productspecified Productspecified Productspecified Plant Plant Plant Locallanguage Translator

7. List of procedures • Process of a product inquiry • Referential update • Standard and customer specifications • Business rules • Customers rules • Pre-specified products (PSP) • Feasibility : dimensional diagrams and rules • Mappings update • Change management : versioning, propagation of referential update • Helpdesk for commercial agencies • Order book update Faire un slide (workflow et règles de gestion pour chaque procédure identifiée)

8. ProcedureProcess of product inquiry Exemple à valider Activities Responsibilities Summary Inquiry from customer • This procedure details the normal process of a product inquiry. The outputs are: • The customer and technical products, required by plants for product manufacturing and material qualification • The protocol with feasible plants, required by Sales Units for pricing and order registering 1 Seize of inquiry Agency 2 Translate inquiry IOD 3 Search PSP IOD Management rules • An inquiry is either duplicated from a protocol or created based on a PSP (Pre-specified product) •  Cases of translation errors are managed by mappings leaders. Mappings for the inquiry and protocol are managed by IOD, whereas mapping between A2C and Plant are under Plant responsibility. • PSP search is based on technical targets linked to product inquiry commercial characteristics. These links are in the referential • Feasible plants for the different PSP found are identified : either based on dimensional diagrams and restriction rules or base on the plant specification tool • Selection is based on costs and proximity criteria. In case of important gap IOD checks the inquiry specifications with Sales Units and if confirmed ask MTS for validation : • If specification is not correct, Sales Units modifies the inquiry • If MTS does not validate then the inquiry is rejected • If MTS validates, a new PSP is created • When the inquiry is validated, customer and technical products are created. One feasible plant is required for ordering on the basis of this product 4 Check feasibility Plant 5 Enrich inquiry with technical specifications IOD 6 Check and complete the inquiry with customer rules IOD 7 Select PSP IOD 8 Publish product IOD 9 Translate specified product and protocol IOD Customer and technical products + protocol with feasible plants

9. ProcedureProcess of product inquiry Exemple à valider Activities Responsibilities Summary Inquiry from customer • This procedure details the normal process of a product inquiry. The outputs are: • The customer and technical products, required by plants for product manufacturing and material qualification • The protocol with feasible plants, required by Sales Units for pricing and order registering 1 Seize of inquiry Agency 2 Translate inquiry IOD 3 Search PSP IOD Management rules • An inquiry is either duplicated from a protocol or created based on a PSP (Pre-specified product) •  Cases of translation errors are managed by mappings leaders. Mappings for the inquiry and protocol are managed by IOD, whereas mapping between A2C and Plant are under Plant responsibility. • PSP search is based on technical targets linked to product inquiry commercial characteristics. These links are in the referential • Feasible plants for the different PSP found are identified : either based on dimensional diagrams and restriction rules or base on the plant specification tool • Selection is based on costs and proximity criteria. In case of important gap IOD checks the inquiry specifications with Sales Units and if confirmed ask MTS for validation : • If specification is not correct, Sales Units modifies the inquiry • If MTS does not validate then the inquiry is rejected • If MTS validates, a new PSP is created • When the inquiry is validated, customer and technical products are created. One feasible plant is required for ordering on the basis of this product 4 Check feasibility Plant 5 Enrich inquiry with technical specifications IOD 6 Check and complete the inquiry with customer rules IOD 7 Select PSP IOD 8 Publish product IOD 9 Translate specified product and protocol IOD Customer and technical products + protocol with feasible plants

10. Acronyms • A2C : Arcelor Advanced Catalogue • IOD :Industrial Operations Department • IS : Information System • MTS : • PSP : Pre-Specified Product • PSE : Proximity Search Engine