MM Scope Document by Mansoor Ali Seelro

2014 Innovation to Consulting (Pvt.) ltd

[SCOPE OF WORK] The Scope of work against RFP for the implementation of SAP ECC MM Module in Almas Group

Contents

1.1

Scope ......................................................................................................... 2

1.1.1 Geographical and Language Scope ............................................................. 2 1.1.2 Organizational Scope ................................................................................ 2 1.1.3 Solution/Module Scope ............................................................................. 2 1.1.4 Project Methodology: ................................................................................ 3 1.1.5 Functional/Process Scope .......................................................................... 4 Post Go-Live support scope ................................................................................. 8 Security and Authorizations Scope ....................................................................... 8 • Design & preparation of test script, test data, trial run and arranging acceptance testing, of MM Module. ...................................................................................... 8 • Prepare and supply User/Operation Manual for smooth and trouble free operation in the system. ..................................................................................................... 8 1.1.6 Project Time line ...................................................................................... 8 1.1.7 Pricing Details .......................................................................................... 9

Scope document MM Implementation Almas Group

Page 1

Scope

1.1

The SAP MM Module will be a single unified procurement system for Almas Group and the solution should be a completely integrated available of-the shelf ERP product. The System may have the required depth and flexibility to provide on-line information access to all the designated users who will operate the respective business processes. The main system and database will be residing in the Data center in the Head Quarter, Karachi. The general scope of the proposed MM Module is as follows: 1.1.1 Geographical and Language Scope -

The Project will be executed from Karachi, Pakistan Only one (1) currency will be tested within the solution, that being . The solution in MM will display all business data in English only Only one application language will be tested within the solution, that being English.

1.1.2 Organizational Scope Innovation to Consulting will configure or implement as part of this Implementation: • • •

Three plants, one for each location. Three storage locations, one for each plant. One purchasing organization.

1.1.3 Solution/Module Scope

Materials Management (MM)    

Organization Structure Material Master Data Vendor Master Data Quotation for Procurement

Scope document MM Implementation Almas Group

 MRP (CBP)  Consumable Purchasing  Subcontracting

Page 2

1.1.4 Project Methodology: The methodology which we will be using for implementation of this project is ASAP (Accelerated SAP). ASAP is SAP’s content reach project management methodology for assisting with the implementation and/or upgrade and / or rollout of SAP solutions across industries and customer environments. This has been built on SAP’s experience in thousands of SAP projects, ASAP provides content, tools, and best practices that help consultants, partners and customers to deliver consistent and successful results across industries and environments. The processes involved in ASAP are as follows:

1

Project Preparation Conduct initial planning and preparation; def ine project goals, scope, and objectives; identif y and train team members

2

Blueprint Map value drivers to implementation scope; ref ine business requirements; document the to -be processes; def ine f unctional solution design; identif y added f unctional, technical requirements; get business sign-of f on requirements/design

3

Realization Build and test a complete test and business environment; develop training material and user manuals; obtain business approval

4

Final Preparation

5

Prepare system f or production release; migrate/cut over data; execute training; and prepare the organization internal/external) f or Go-Live

Go-Live Support

6

Execute new systems and processes; monitor business process results, and monitor the production environment; build Center of Excellence f or support and enhancements

Run Run the new system; apply additional SAP operations standards to optimize system operation

Ensure the delivery of value throughout the solution life cycle (“Value Delivery”)

Benefits of ASAP o Reduced total cost of implementation through streamlined and modular implementation roadmap that provides content rich implementation accelerators, templates and guides o Industry standard aligned project management process and guidelines o Achieve transparency of value delivery through consistent business case reflection o Enables efficient project governance and quality management o Extends across all aspects of the solution life-cycle; from strategic reviews and analysis, to design, implementation, training and post project support o Drive combined Business Process and IT Architecture approach (E2E) o Covers entire project life-cycle – from evaluation through delivery to post project solution management and operations

Scope document MM Implementation Almas Group

Page 3

1.1.5 Functional/Process Scope Procure to Pay (Materials Management) Business Process

Business Process Details 1. Consumable Purchasing (129)

Procure to Pay RequestedProcesses (Materials Management)

Purpose  Purchasing of consumable goods or services Benefits  Possibility of quick one-time-purchases: Material consumption is directly posted, no posting into storage  Use of service entry sheets as inspection report of performed services Key process flows covered  Purchase order creation for consumable goods  Approval of purchase orders for consumables  Goods receipt of consumables  Purchase order creation for services  Service entry sheet creation  Service entry sheet approval  Invoice receipt by line item  Period-end plant 2. Subcontracting (138) Purpose  This scenario covers the handling the subcontracting process, necessary adjustment of inventory issues and receipts. Benefits  To monitor the goods with the vendor  To find that which subcontracting has what quantity of material  To manage and valuate components with vendor and finish goods Key process flows covered  To transfer the goods to the subcontracting vendor.  To create Subcontracting PO and assign components to Subcontracting vendors  To receive finish goods from subcontracting vendor against the PO

Scope document MM Implementation Almas Group

Page 4

3. MRP (Consumption Based Planning) Purpose  This planning procedures use past consumption data (historical data) to calculate future requirements with the help of the material forecast or static planning procedures. Benefits  Reorder Point Planning  Forecast-Based Planning  Time-phased planning Key process flow covered      

Planning Run Supply Source Determination Contract Processing Planning Workbench Order Optimizing Purchase Order Monitoring  Vendor Evaluation  Requirement Planning

SAP ERP reports for Logistics MM Cross Function

                    

Scope document MM Implementation Almas Group

List Display of Purchase Requisitions Stock Overview Outbound Delivery Monitor Purchase Requisition per Account Assignment Purchase Orders by Account Assignment Quotation List General Analyses: Purchase Quotation Analysis of Purchase Order Values Purchase Order by Material Purchase Order by Vendor Purchase Order by Document Number Purchasing Group Analysis Release Purchasing Documents Assign and Process Purchase Requisitions Material Document List Display Warehouse Stocks of Material Accounting Documents for Material Material Documents with Reason for Movement Availability Overview Plant Analysis Material Analysis

Page 5

Functional Assumptions MM Functional Assumptions  Standard functionality of SAP MM with minimum custom changes mostly in Forms & Reports  Only required MM transactions will be entered in SAP ECC  Required MM Master data will be created in SAP ECC  If online transfer of Data between SAP and other third party systems is compulsory then SAP SRM has to be assessed by a SRM consultant since it will be required. This will be at an additional cost and will be treated as a Change Request.  User departments shall create their own Purchase Requests.  One centralized purchasing organization.  Maximum up to three Plants for storage and distribution Technical assumptions   



A 3 system landscape of Dev-QA-Production is assumed. Almas Group will provide required hardware and software to start the project on time. All Workflows, non-standard Reports, Interfaces, Conversion programs, Enhancements and Forms (commonly specified as WRICEF) that are not specifically mentioned in the scope above are not part of this proposal. Requirements and efforts associated with this will be defined during the Scope Validation phase, and estimates for such submitted to Almas Group for approval under the Change request process. In addition, Almas Group will be responsible for: o Data cleansing of legacy data o Data extraction from non-SAP systems, conversion, cleansing & validation o Collation and cleansing of any master data for migration into the SAP systems o Filling of the Data o Validation of data uploaded into the SAP systems







ALMAS GROUP is required to maintain ALMAS GROUP backups, i2C’s consultants will depend on ALMAS GROUP’s executed backup and the prompt execution of the restore by ALMAS GROUP. i2C will not be responsible for any issue arising out of ALMAS GROUP’s backup problems ALMAS GROUP will provide expert resources to modify their legacy systems for interface to i2C. i2C will not modify ALMAS GROUP’s legacy systems. ALMAS GROUP will write all legacy programs required for extraction, interfaces or conversions. ALMAS GROUP will inform Innovation to Consulting project management, as and when it intends to change, modify and upgrade the hardware, Operating System, Application software both from SAP as well as non-SAP systems that are directly or indirectly linked to the project. Any delays within the project timeline resulting due to the aforementioned activities will be deemed chargeable and dealt with via the change request process.

Scope document MM Implementation Almas Group

Page 6

     

        

  

ALMAS GROUP will provide appropriate technical support to the i2C installation team Installation of SAP ERP 6.0 would be performed for a 3 system landscape. Post Installation Configuration. Applying Kernel and Support Packages to the above systems. Optimize SAP technical system parameters (system tuning) Maintain SAP system profile parameters (determines technical configuration at system startup) Identify & configure SAP Marketplace technical Document and maintain project transport request & execution procedures Perform & Troubleshoot transport errors related to the technical/architecture failures Scheduled application of SAP Notes / Corrections during project execution. Printer configuration in SAP. Post go-live support for the agreed period Performance tuning/optimization based on recommendations by SAP Support Security design & creation of authorization matrix based on identified requirements. As far as possible usage of SAP standard roles and creation of mandatory new roles and authorization based on authorization matrix Creation of users provided by the ALMAS GROUP. Assignment of roles to user. Support during security/roles testing

Technical exclusions  Anything which is not explicitly included in deliverables would be considered as excluded from scope  Any activity on OS and Hardware related items.  Interfacing with third party partners  Integration and Connectivity Tests  Volume and Stress Tests  System copy activities are excluded.  Backup and restore is excluded.  SAPGUI & NWBC deployment on workstations is excluded.  The set-up of Run SAP Operations  Installation of SAP systems as part of DR setup is excluded.  High Availability / Disaster recovery related configuration is excluded

Scope document MM Implementation Almas Group

Page 7

Post Go-Live support scope Post Go-live support until the system is fully updated and support outside the Scope of this Implementation can be provided against a separate agreement. Go-Live run of SAP MM module at Head Quarter, Karachi with real-time data. Roll out of the System to the Karachi, Lahore and Islamabad. Stabilization of the System at all the locations. Security and Authorizations Scope -

Following roles will be delivered as per ECC standard MM area  Warehouse Clerk  Purchaser  Purchasing manager  Warehouse manager  MRP Controller Deliverable

•

Design & preparation of test script, test data, trial run and arranging acceptance testing, of MM Module.

•

Prepare and supply User/Operation Manual for smooth and trouble free operation in the system.



1.1.6 Project Time line Month Days Project Preparation Business Blueprint Realization Final Preparation Post Go Live Support

Aug-14 Day 1 Day 2

Day 3

Scope document MM Implementation Almas Group

Day 4

Day 5

Day 7

Day 8

Day 9

Day 10

Go Live

Page 8

1.1.7 Pricing Details Innovation to Consulting’s proposal includes indicative estimates for the implementation of SAP Materials Management Module and Engineered Services where possible and keeping customization to a minimum. Following is the breakup of total project cost. Resource Designation Project Manager Project Support Team Lead Principal MM Consultant Sr. BP Integration Consultant Sr. MM/Technical Consultant

Skill level Expert

Wage rate per hour 15,000

Total 1,200,000

Services Installation

Cost 1,100,000

Expert

13,000

1,040,000

Configuration

1,000,000

Expert

11,500

920,000

Integration

950,000

Proficient 10,000

800,000

Data migration

650,000

Proficient 9,000

720,000 PKR 4,680,000

Testing

750,000

Documentation

185,000 PKR 4,635,000

Total

Total

Total Cost of Implementation

PKR 9,315,000

The total price for this project is 9,315,000.00 PKR (Nine million three hundred and fifteen thousand Pakistani Rupees only). This fee is based on a Fixed Price Project (“FPP”) implementation.

Scope document MM Implementation Almas Group

Page 9