Knet Open ERP Proposal

Project Name

Cloud Based Enterprise Resource Planning Using Open ERP Document Title

Response to Request for Proposal Document No

Document Date

Document Version

Document Status

102192014

September 24, 2014

Version 1.0

Initial Proposal

Prepared for:

PT. Knet Indonesia Menara Jamsostek South Tower 7th Floor JL. Jend. Gatot Subroto No.38 Jakarta - 12710, Indonesia. http://knet.co.id Prepared by :

PT. Zenith Adicipta Nusantara Jl. Sekelimus Tengah No.12 Bandung - 40262, Indonesia. http://zenith-nusantara.com 1

Contents Contents

2

Executive Summary

3

I.

Initial Requirements

4

II.

Project Scope

6

III.

Solution Overview

6

IV.

Approach Method

7

V.

Development Scope

8

VI.

Development and Delivery Methodology

8

VII.

Performance Tuning

9

VIII.

Documentations

9

IX.

Training and Knowledge Transfer

10

X.

Project Management

10

XI.

Estimated Milestones and timelines

11

XII.

Proposed Budget

12

2

Executive Summary This document is intended to propose development and deployment of a cloud based enterprise resources planning application to simplify and fasten workflow process in KNET Indonesia. Scope of application will cover following aspect of corporate business process : starting with solution design activity for sales department, create bill of material and bill of quantity along with pricing, the application will enable seamless workflow and communication between sales, engineer, accounting and finance within application and by email. The project also include development of corporate website with content management system capability.

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I.

Initial Requirements

Understanding how each user interact with the systems is important in designing a functional and reliable ERP Application. Prior to ERP application development, KNET employs manual procedures for sales business process for following activity : 1. Solution proposal preparation still using word editor and spreadsheet application by sales department then manually reviewed by technical department and finance department. 2. Sales department must notify by phone or email when particular solution proposal is submitted for review. 3. Calculation of BoQ and BoM is conducted manually with spreadsheet application thus makes it difficult to maintain document version whenever changes is occurred. 4. Design review by technical department and approval from finance department takes long time to conduct KNET recognized limitation of existing procedures by being slow especially when sales department is negotiating with customer and a system to simplify and fasten workflow process. Functional Requirements Functional requirements of application typically follow specific task of each division within KNET. The division are : 1. Sales Division - Offering company’s product and service and follow project opportunity - Gather specific requirement of project and pass it to engineering division - Take design proposal from engineering department with detailed BoM and BoQ. - Conduct negotiation and making deal with customer

2. Design Division - Create design and planning proposal according to requirement received from sales division - Prepare BoM and BoQ of particular project - Consult unit price of product and service within BoQ with Finance Division 3. Engineering Division - Create S curve for project approved by financial division - Plan and submit budget to implement the project - Create detailed report on project implementation (actual cost) compared to planned cost 4. Finance division - Conduct Profit/Loss analysis on BoM and BoQ submitted by Design Division - Approve or reject BoM and BoQ from design division as well as give advice to determine correct unit price for each particular product and service within BoQ. 4

-

Receive payment from customer Conduct payment for engineering division

5. Accounting Division - Create accounting report based on report from engineering division about project implementation - Accounting report is including posting to journal, posting to ledger, cashflow report, income statement report and balance sheet. 6. HR Division - Specify and monitor KPI of each staff Those are functions of each division which will utilize the use of ERP application automate business process to became faster and simpler. Primary business process relation between division are described below.

Sales Follow Project Requirement

Negotiate with customer ↓ Assist customer in releasing note of order (nota dinas) ↓ Get Purchase Order from customer

Design Planning and Design ↓ Create BoM and BoQ ↓ Specify unit price for each particular product and service

Receive approved BoQ

Engineering

Finance

Receive BoQ proposal Receive BoQ proposal from design division from design division ↓ ↓ Create plan of work Conduct Profit / Loss (PoW) Analysis ↓ Approve or Reject BoQ Proposal

Create S Curve ↓ Create planning and project budget according to PoW ↓ Implement project ↓ Create report

Approve or reject

5

Besides ERP application, KNET would also implement Content management system for its websites to give real time information about KNT to customer and stakeholder. Main objectives of ERP application are: 1. 2. 3. 4. 5. 6.

Speed up survey process Rapid approval process Tracking changes and status of proposal Chief or staff of department can live monitoring workflow process Get notified instantly via email when a task need to be done Reduce paper usage & print cost

II. Project scope ERP implementation must include following 1. 2. 3. 4. 5.

User Design Study ERP Implementation Content Management System for Corporate Website Application Performance Tuning Documentation, Training and Knowledge Transfer

III. Solution Overview In response to KNET ERP requirements, Zenith proposes cloud-based (off-premise) ERP Application using Open ERP. Backend services and administration web app (or Content Management System – CMS) will be hosted on preferred cloud services provider like Indonesian Cloud, Google cloud, Microsoft Windows Azure, or Rackspace. A cloud platform that provides a wide range of internet services such as compute, database and storage. Cloud platform enable us to develop highly scalable and reliable service without infrastructure cost overheads and capital expense. All platform services are charged by the usage and billed monthly, hence the cost is translated to operational expense (opex). With cloud platform we can start with small deployment scale for development and testing and increase servers scale as the usage growth. Cloud provider offers several cloud service development options from fully Infrastructure as a service (IaaS) through Virtual Machines, to Platform as a service (PaaS). In IaaS, we can choose to use Windows or Linux OS and have to manage deployments, redundancy and scaling manually by ourselves. IaaS is recommended if we already have servers running on premise and want to move infrastructure to cloud environment without lots of code changes. PaaS provide standard ways of development and deployments, but come with easy to setup redundancy and scaling. At this stage Zenith proposes IaaS approach to deploy ERP Application with Virtual Networks to connect to existing KNET system.

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IV. Approach Method Customizable form Application forms are stored as JSON formatted string in metadata servers. Forms can be easily modified by Branch or HQ using Web application. This provides flexibility to handle form update.

Customizable workflow, allow per-department assignment and modification Workflow is sequence of process defined by KNET to process document or task from submission to approval. Workflow is customizable using Web application with each branch can have different workflows.

Easy, centralized mass deployment Provisioning and distribution of application to client devices (PC) are managed within cloud server using internet connection (must online).

Integration/communication with existing system (if any) Integration will follow current practice in KNET. Communication between ERP hosted on cloud and KNET system is managed using Virtual Private Networks (VPN).

Provide task list web app Task list data are stored in metadata servers. Client can be notified using push notification when new task available.

Access Control List Provide different views for different credentials group (sales, engineer, analyst, branch managers, finance, risk management, operation). Access Control is managed within core ERP application.

Workflow Workflow controls how data and documents move within system from collecting to approval decision. Workflow can be customized based on needs.

Allow two way form flow between field officer and staff at the office As part of the workflow, forms can be submitted from mobile surveyor to office staff. When data update needed, office staff can send request to mobile surveyor.

Location and activity logging Application can log device location and user activity and push it periodically or stored in as history in cloud server. This information is used to monitor surveyor activities and its history.

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V. Development Scope This section will outline scope of the ERP Application development by Zenith : 1. Zenith conducts requirement gathering from all stakeholders to understand ERP system as a whole. 2. Zenith provides ERP application UI design. 3. Zenith implements ERP application with following features: a. Login and forget password. b. Create form and workflow for sales, technical, finance and accounting c. Secure data transfer with HTTPS (TLS) and HTTP authentication and binary encryption. d. Collect and upload user activity and location data. e. Push notification for task or update request. f. Standard settings. g. Documentation and user guide. 4. Zenith will conduct testing including stress test, integration test, user acceptance test and other tests that might be required. 5. Zenith provide training for KNET staffs. 6. Zenith does not develop monitoring application for servers deployed. Optionally monitoring application can be added to develop or using third party services. 7. Zenith provide managed services for application deployment and maintenance hosted on cloud server. These services is billed monthly separated from development cost. 8. Commercial third party libraries and services are accounted differently (e.g email). 9. Zenith provide estimates that might be added and/or updated in the future. 10. This initial scope is subject to change after extensive requirement gathering and overall cost will follow accordingly.

VI. Development and Delivery Methodology Zenith will use agile development to complete ERP Implementation Project. Development will be performed in short cycle features implementation and iterations. Each iteration will run from seven to fourteen working days. This process ensures high quality deliveries as every feedback and changes are accounted in short period of time rather waiting for the end of term of the project. Zenith recognize that software development is highly volatile and changes might be occurs along the way. Process started with gathering user requirements and collecting user stories to understand how ERP should work for all identified users. Based on requirements and stories, backlogs of features are inventoried. Then project entering system design phase where architecture and data are outlined. Each feature is implemented depending on their priority. API, web applications and mobile application development shall run in parallel fashion.

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A feature development task will include user interface design and its functionalities. Task time estimation will include test, working on bugs and possible iterations. Several tasks are grouped into milestones which will define deliverables. Major changes including UI/UX and altering initial stated functions will be counted as Change Request (CR). Should new feature added after initial requirements, it will be added as CR. CR will adjust cost and timeline of the project.

Requirement gathering During this phase, Zenith will meet stakeholders of ERP Implementation in KNET to collect requirements and user stories. In addition to requirements described in this proposal, requirement gathering will provide more insights on user interface and system design. Requirements are interpreted into features and grouped into milestones. These initial requirements will be used to create scope documents which clearly stated and determined scope of the project. Zenith provides initial scope outlined Development Scope section above. Some requirements might be added in later stage. This is due to new information obtained during gathering phase. At this step, it is highly probable that estimated timeline will far exceeded KNET expectations. Priorities will be set to allow development to achieve all requirements stated by Zenith in timely fashion and adjustment to features might be needed.

System design After most of requirements are listed, Zenith will design the system and architecture. Based on the RFP, Zenith have outlined proposed architecture as described in previous chapters: Cloud based ERP hosted on Cloud Server to integrate with existing KNET system. However, the architecture might be updated to accommodate what KNET needed. System design includes planning the database and how listed features are implemented in the applications.

User interface design User interface design is based on user stories which depict how user should interact with the application. User interface design will run in parallel with system design.

Development Actual software development will be divided into several phases. As outlined in estimated time frame, much of works are assigned to make web applications easy to use (UI/UX).

VII. Performance tuning Based on requirements from KNET, Zenith will create server to monitor ERP application performance indicator. This might be numbers of request it processes, number of query per seconds, resource usage per survey process and so on. Should one indicator required tunings, Zenith will optimize the system subject to constraints such as server capacity and network latency.

VIII. Documentations At each developed ERP subsystem (sales, engineer, finance, accounting, etc), Zenith will produce both technical and user documentations. 9

IX. Training and knowledge transfer Zenith will conduct training for KNET staff that include for both technical and user training. Training will be held in KNET office or other places. Training will not held for all of KNET employees from surveyor and officers but limited to selections of users that will in turn train other KNET employees.

X. Project Management Project management application Project management tool is used to track features and milestones development. This eliminated the need to create detailed report which can be time consuming by itself. At Zenith, we use slack (https://slack.com). This choice is flexible according to KNET common practice.

Communication schedule After the kick-off meeting in KNET, regular weekly / two week teleconferences will be scheduled throughout the development of ERP application. During development, regular small scale deployment and tests will be conducted after each defined milestone. Minutes will be taken at all meetings and will be distributed to all team members involved with the project. Given distance between KNET and Zenith office, we propose most meetings will be held using Skype. Face-to-face meetings can be arranged when it is importance in nature.

On-Site Works If on site works is needed, Zenith will conduct works at KNET offices / sites.

Change Request (CR) New features that added after project started will be counted as CR. CR will be billed separately in the following month and timeline will be adjusted accordingly. This is to ensure high quality delivery to be maintained by Zenith.

Source control Source control might be hosted in KNET or using others. Zenith usually use private GIT repository which may be hosted on GitHub (https://github.com) or BitBucket (https://bitbucket.org). As the repository is private, there will be no security concern. That choice is flexible according to KNET common practice.

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XI. Estimated Milestones and Timelines No 1 2 3 4 5 6 7 8 9 10 11 12 13

Task Preliminary Study Solution Design Development Sales Department Module Technical Department Module Finance Modul Accounting Modul Corporate Websites Application Testing Unit test stress test User Acceptance Test Deployment Email Integration Training and knowledge transfer

1

2

3

4

5

6

7

8

9

10 11 12 13 14 15 16 17

Application development is estimated to finish in 16 weeks / 4 months period.

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XII. Proposed Budget Development I.

Personnel Cost

No

Role Description

Qualification

Qty

1 2 3 4 5

Project Manager Lead Programmer Programmer UI/UX Programmer Workflow Software Quality Assurance

S2 - 5 years exp S1, Certified - 6 years exp S1 - 2 years exp S1 - 3 years exp S1 - 5 years exp

1 1 1 1 1

Duration (months) 4 4 3 3 2

Billing Rate* Rp Rp Rp Rp Rp

17,550,000 18,150,000 9,100,000 9,100,000 16,650,000 Total

Cost Rp Rp Rp Rp Rp Rp

70,200,000 72,600,000 27,300,000 27,300,000 33,300,000 230,700,000

*billing rate is based on Bappenas Billing Rate Guide for year 2013. II. Operational Cost No 1

2

Description Reports, Technical Documentation and user guide Transportation and accommodation for weekly meeting (PP Bandung Jakarta)

Unit Price

Duration / Frequency

1

Rp.1.500.000

4 months

1

Rp.500.000

Qty

z

Rp.6.000.000

Per visit / week

Rp.500.000

Training and Knowledge Transfer No

1

Role Description Instructor (Including accommodation in Jakarta during training)

Qualification

Qty

Duration (months)

S1 - 3 years exp

1

1

Billing Rate Rp Total

10,000,000

Cost Rp

12,000,000

Rp

12,000,000

12

Managed services No

1

Description Cloud Server 4 core processor, 8 GB RAM, 40 GB SSD System Disk, 80 GB SSD Database Disk, 5 TB / month bandwidth, 99.9% SLA Availability Including Managed Services for implementation and support for cloud server, ERP application and websites

Qty

1

Unit Price

Cost per month

US$ 800

US$ 800

Total

US$ 800

Notes : 1. Exclude Value Added Taxes (if any) 2. Term of Payment  10% installment at the end of 1st month  10% installment at the end of 2nd month  10% installment at the end of 3rd month  50% installment upon application deployment on cloud server (after user acceptance test, estimated at the end of 4th month)  20% installment within 1 month after application go live. 3. Minimum 2 year contract for managed services

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