FLYON GROUP 24th December 2013 PROPOSAL FOR THE INTEGRATED INFORMATION SYSTEM REALSOFT ERP SOFTWARE SOLUTION
No: 9092013-INKE160(Revised-2)
Tel: + (91-484) 2624991 Email:
[email protected] Visit us: www.realsoft.in
TABLE OF CONTENTS A. Executive Summary ------------------------------------------------------------------------------------3 B. Background ------------------------------------------------------------------------------------------------4 B.1. FLYON GROUP . ---------------------------------------------------------------------------------4 B.2. Business Challenges---------------------------------------------------------------------------4 B.3. Business Process ------------------------------------------------------------------------------ 5 C. Methodology -----------------------------------------------------------------------------------------------6 C.1. Implementation Methodology and Tools -----------------------------------------------6 D. Scope of Work -------------------------------------------------------------------------------------------7 D.1. Solutions ------------------------------------------------------------------------------------------7 D.2. Project Scope -------------------------------------------------------------------------------------7 E. Functional Scope -----------------------------------------------------------------------------------------7 E.1. Functional Scope -------------------------------------------------------------------------------8 F. Project Management ---------------------------------------------------------------------------------- 10 F.1. Project Management Plan ------------------------------------------------------------------ 10 G. Commercials ------------------------------------------------------------------------------------------- 11 G.1. License and Maintenance fee ------------------------------------------------------------ 11 G.2. Implementation Service Terms and Conditions ------------------------------------ 11 H. Critical Success Factors------------------------------------------------------------------------------ 13 H.1. Critical Success Factors ------------------------------------------------------------------- 13 H.2. Commitments from FLYON GROUP .for the success -------------------------------- 14
EXECUTIVE SUMMARY The RealSoft Implementation initiative at FLYON GROUP.represents a strategic program which is critical to the successful delivery of the RealSoft solution. Coral Solutions (CORAL) is committed to working with FLYON GROUP.to deliver a successful RealSoft Implementation; we believe our partnership will be extremely strong. This proposal is for the implementation of the first phase of RealSoft Enterprise solution and for license of the software. The first phase of the implementation will be for the company in Thrissur . CORAL proposes to a technology platform will enable FLYON GROUP.to reduce the total cost of ownership in the long run and also to provide for a bridge to connect current and future systems. The RealSoft implementation project envisages an implementation time of two months for Go live for the Thrissur office followed by a 2 week onsite support period. Since this project involves an investment of time of the functional users from various functional areas, the timelines proposed are those which are achievable and yet do not disrupt regular business activities of FLYON GROUP.. This implementation will cover the Commercial modules of Finance, Accounts, Inventory, Purchase, Project Management, Job Costing, HR, Payroll, Time Sheet, Contracting, Tender Management and Administrative modules, Sales.
B. BACKGROUND B.1. FLYON GROUP. A celebrated name in the field of electrical contracting and cable tv servies, one of the fastest growing contractors and service providers in Kerala, with over decades of experience in the business of electrical contracting, cable tv services and construction, FLYON GROUP. Have completed a wide variety of projects and have a huge customer base. With a team of efficient and dedicated engineers, supervisors and other officials, FLYON GROUP. Leaves no stone unturned.
B.2. Business Challenges FLYON GROUP. Has been using different softwares and manual process for their day-to-day operations. However the Management of FLYON GROUP. Has found that the information and the output from the existing system is not to their specific requirements and FLYON GROUP. Approached Coral Business Solutions to address the strategic and operational challenges faced by the organization and to take into account the information needs of the organization. Some of the challenges faced by the company are listed below:
G..
Strategic Timely availability of integrated information across the company Analytic reports – by branches, projects, lines of business, market segments and customers Financial metrics for the entire company Making full company automation
II) Tactical and Operational Coral Business Solutions with their RealSoft ERP package will attempt to address these needs in order to be able to assess the fit of the RealSoft ERP package, Coral Business Solutions conducted a study in their Thrissur office for all accounting and commercial functions of the enterprise. These are listed out in detail in the section scope of work in this document.
B.3BUSINESS PROCESS Actual business process will be studied by Coral’s Implementation Engineers .They will design a work flow and based on that implementation will be carried out.
C. METHODOLOGY C.1. Implementation Methodology and Tools CORAL Implementation Methodology CORAL Methodology –for Rapid Successful Implementation The CORAL implementation methodology is a phased, process oriented methodology, and is the umbrella for CORAL’s toolset that streamlines implementation projects and minimizes risk. The Methodology takes a disciplined step-by-step approach to project management, supporting project teams’ with templates, tools, questionnaires/checklists, including technical guidebooks and accelerators. It empowers companies to exploit the power of the accelerated features and tools already built into Coral Solutions. Benefits of using the methodology include:
Faster implementations
More reliable projects by following a structured approach
Lower risk
More efficient use of resources
Reduced costs
Effective project management based on PMI-aligned templates
CORAL Professional Services drives the success of all projects using its methodology, which sequences the entire project lifecycle into five key and non-overlapping phases: 1. Initiate 2. Design 3. Implementation 4. Deliver 5. Support
Key Activities in the Phases as per the Methodology PHASE 1 – INITIATE
During this phase, project goals, a high level scope and a project plan are defined and the implementation strategy is defined and approved. At the same time, the project procedures, standards, organization and staffing are finalized. Roles and responsibilities of the entire project team are agreed upon and documented as are the deliverables and the appropriate sign off authorities. The Project Charter is documented and signed off as a part of this methodology. PHASE 2 – DESIGN
In this phase, all functional and technical key designs are documented in, the Business Solution Design document. This phase is lead by functional and industry experts from CORAL Professional services. A key part of this process is to conduct a series of requirements and process workshops with all key project resources to ensure the resulting business process design is effective, efficient, simple and complete. An important activity addressed is the data conversion strategy which includes identification of data sources, data cleansing and conversion procedures. PHASE 3 – IMPLEMENTATION
In the implementation phase, the RealSoft system will be configured to meet the solution design requirements as decided in the previous phase. A pilot system will be designed which represents the core business process settings. This is verified by the key functional team users assigned to the project. All development such as interfaces, data conversion programs, reports, and any required customizing is built. Legacy data conversion programs are created and tested. Test cases are created along with a test plan, which is used to manage an extensive testing process. All systems are tested thoroughly in this phase using test scripts covering the entire business scenario. PHASE 4 – DELIVERY
In this phase detailed transition and cutover plans are created and executed. The production system is installed and setup with sample and data developed during the project. An internal help desk mechanism to address issues in Go Live will be created as a part of this phase. PHASE 5 – SUPPORT
An easily accessible production support organization must be in place to support the end user community, not just for the first critical days of production operations, but also for long-term support. Finally, the completed project is closed, and support responsibility is passed to the internal help desk organization.
D. SCOPE OF WORK Understanding of Scope of RealSoft Professional Services From business point of view, FLYON GROUP. Expects to implement RealSoft ERP solution in their Thrissur office. In this proposal, the details for Phase I are highlighted. Some of the guiding principles for working out the scope of the project are: % Provide accurate financial and inventory reporting of data for effective monitoring % Provide the backbone for implementing any other Coral Solutions in the future
D.1. Solutions Overview This section covers the indicative solution that is required by FLYON GROUP.. The solution fit to FLYON GROUP.business requirements are discussed separately in the corresponding sections under Project Scope, as well as our current understanding of the envisaged integration scenario and landscape. Further project-level activities are required to refine this understanding, and planned during the Initiate phase and Design phase.
D.2. Project Scope The purpose of this section is to clearly state the scope of the project so that it can be understood by FLYON GROUP.steering committee and evaluation team. The CORAL implementation will be carried out on the RealSoft version 1.6.315 software. The following is the scope statement serving as the foundation for the resource estimate.
Enterprise Scope The geographical and organizational scope of the project would be as follows: Organizational scope: FLYON GROUP. Geographical scope: FLYON GROUP. Offices – Thrissur
E.1 FUNCTIONAL SCOPE Identifying assumptions at the outset of the project helps to ensure that CORAL meets FLYON GROUP.critical requirements and expectations. Accordingly, CORAL has made the following assumptions about scope based on the information provided by FLYON GROUP.and Coral’s earlier experiences with similar system implementations. All the assumptions will be listed in the technical document of the project and it will be agreed and signed between the authorities in advance.
General Assumptions 1. The initial implementation will focus on meeting the most critical business needs, and standardizing process. As such, FLYON GROUP.needs to support a culture of teamwork, in which every desire of every user will be satisfied during the implementation. 2. FLYON GROUP.will provide administrative support to aid in the creation and maintenance of project documentation, communications and schedules. 3. All documentation and related materials will be developed in English. 4. All deliverables will be developed for industry standard Microsoft Windows-based PCs using appropriate Microsoft Office applications (Microsoft SQL Server 2005 and Excel). CORAL will
provide project team members the necessary hardware and software to develop these deliverables. Microsoft SQL Server is the back-end database using for the solution and FLYON GROUP.should provide this application with appropriate server machine. The costs associated with developing any materials using other software or hardware will be reviewed separately with FLYON GROUP. 5. Any data cleansing or data cleanup is wholly the responsibility of FLYON GROUP.. 6. FLYON GROUP. Will provide data-entry resources to load conversion data if it is mutually agreed that this is the most efficient method
Environment and Access Assumptions 1. FLYON GROUP.will provide any unique hardware or software required for access to its CORAL solution(s), other information systems, or FLYON GROUP.networks. 2. CORAL will be provided with full access to FLYON GROUP.facilities necessary for the project, including all necessary identification material (badges, cards, etc). This includes full access to buildings and systems during and after normal business hours, on weekends, and on holidays. Limitation of CORAL access during these times may reduce Coral’s ability to maintain proposed schedule.
Project Team Training Assumptions 1. FLYON GROUP.will provide any needed classrooms or conferencing systems for end user training and will take responsibility for ensuring that networked computers in the classrooms function properly. 2. The success of the project is largely dependent on FLYON GROUP.providing access to key employees, conducting rapid technical reviews, and granting approvals of draft materials. FLYON GROUP.and CORAL will agree on turnaround requirements during the project’s analysis phase.
Time and Cost Overrun Assumptions CORAL has assumed two month implementation period for Go live followed by two weeks implementation support period after the implementation. CORAL shall charge and FLYON GROUP.shall compensate CORAL for the time and cost overrun as per the average man day rate of this project, for the period of delay as the commercial proposal. All delay as and when proactively identified by CORAL Project Manager or FLYON GROUP.Project Manager will be brought to notice of the other party immediately, and the subsequent impact of the delay in terms of cost and time overrun will be calculated and presented to the steering committee or project sponsor whoever is available. If the delay however, is directly and solely attributable to CORAL, CORAL shall complete all deliverables as per the Project Plan without any extra charges to the Licensee. All delays, as and when proactively identified by any of the Project Managers will be brought to the notice of the other party on a regular basis.
F. PROJECT MANAGEMENT F.1. Project Management Plan One of the key factors in successfully delivering the FLYON GROUP.project will be establishing a structured and disciplined project management capability. Coral’s comprehensive approach to project management focuses on jointly defining project expectations, managing progress against plan, completing deliverables as efficiently and effectively as possible, and achieving the expected project results.
Project Approach Proposed Project Timeline: CORAL will work with FLYON GROUP.to ensure that the RealSoft solution offering is delivered in the first phase for the Thrissur and other sites In accordance with the project plan, the timelines for the implementation is as follows: IMPLEMENTATION TIMELINES
Phase/ Elapsed Days Initiate Design Implement Deliver & Support
1-7
8-14
15-45
45-60
*** Note: This implementation project will be the first phase in the Thrissur . It is envisaged that Go live will be at the end of the 8th week period. Thereafter, two week onsite support period is assumed in the proposal. The proposed approach for the FLYON GROUP. Implementation project consists of the following phases. • Initiate – the organization, project processes, and technology components are prepared to begin the implementation. • Design – this phase focuses on design, gap assessment and tailored fit. • Implementation– the primary objectives of this phase are to finalize building and testing of the tailored design and continue knowledge transfer. • Deliver – this phase focuses on preparing the business and systems for go-live and post support. • Support Phase – the system is cutover into a production environment initiating the beginning of formal support
G. COMMERCIALS G.1. License and Maintenance fee RealSoft license fee for their Thrissur location is offered to FLYON GROUP. On a special basis. The license fee for the Head office is following: Particulars
Qty
Fees
Amount (INR)
RealSoft License Fee for Electrical Contracting
1
1,60,000
1,60,000
Realsoft License Fee for General Contracting
1
60,000
60,000
Realsoft License Fee for Cable Network
1
1,30,000
1,30,000
Implementation Charges
1
30,000
30,000
30,000
30,000
Special Discount (INR Three Lakh and Fifty Thousand only)
Total
3,50,000
This fee includes a free 12 month warranty from the date of initial installation at the respective sites. Maintenance fee will be optional at 20% of the prevailing list price at the time of expiry of the warranty period. Project Customization beyond the scope of present requirements or additional modules will be charged additional as amendment. Payment Schedule for License and maintenance fee For License fee, the payment terms are as follows: Milestone Billing Percentage
Milestone
Billing Amount (%)
At the time of release of the Purchase order for License fee
40%
After Training
30%
On System Live
30%
G.2. Implementation Service Terms and Conditions Payment Terms FLYON GROUP. needs to make payment within 7 working days from the date of submission of invoice. Mobilization of Implementation Team CORAL would require a mobilization time of one weeks from the time of signing the Purchase Order / Professional Services Agreement to start the project. Quality Assurance The relevant Quality Assurance policies and procedures for this project are incorporated under project plan and have been described under corresponding sections earlier in the proposal. CORAL will work closely with FLYON GROUP.to ensure that such policies and procedures are followed. Project Office The project office is assumed to be in FLYON GROUP.office in Thrissur Project Holidays and Other Events The project timeline indicated in the corresponding section refers to overall project duration, which needs to be adjusted accordingly depending on project commencement date and public / project holidays. Should the project target require CORAL and FLYON GROUP.project team members to work on certain holidays, the same will be discussed by the project managers of CORAL and FLYON GROUP.and mutually agreed. Working Hours and Days The project timeline indicated in the corresponding section have been estimated taking into account normal CORAL working days. In case the Project Manager or Consultants are required to take leave or participate in other internal CORAL events, such schedules Manager will be communicated well in advance to FLYON GROUP..This will be as per mutually agreed upon schedules and will ensure that Project deliverables are not compromised. Acceptance of Deliverables by FLYON GROUP.. CORAL’s deliverables submitted shall be reviewed and signed-off within five working days of submission. The deliverables will be taken as accepted at the end of the said period, if there is no feedback within this period. Project Commencement On acceptance of this proposal FLYON GROUP. and CORAL will enter into an Implementation Services Agreement as per the standard service agreement of CORAL, which will be signed within 15 days of formal acceptance of the proposal communicated through a Purchase Order. Please note that CORAL shall mobilize the resources only after the agreement is signed. CORAL will require a lead-time of 1 week to mobilize the resources from receipt of the formal purchase order.
Project Extensions In the event of delays of the deliverables by the Policy Team or the Change Management team beyond the CORAL project timelines FLYON GROUP.shall compensate CORAL for the additional effort arising out of such extensions. In the event of any extensions in the Project Schedule or delay on account of items beyond the scope of the Project as defined in proposal, here to, FLYON GROUP.shall compensate CORAL for the additional effort arising out of such extensions. The rate applicable for project extensions will be the average man-day rate for the project. Change Control The efforts and cost estimates given are for fixed scope, man-days, and timeline. Any scope changes or any changes in assumptions listed, or any delay caused by FLYON GROUP.which has direct impact on efforts estimate of CORAL, will be brought to the notice of FLYON GROUP.Project Manager / Steering Committee through monthly status report. CORAL and FLYON GROUP.will jointly discuss to mitigate the impact. In the case where total CORAL efforts (man-days) need to be increased to cater to the additional work, FLYON GROUP.will need to compensate CORAL additionally, as per the rates agreed in the contract. Validity The prices and terms offered are valid for a period up to 7 days from the date of this proposal.
H.1. Critical Success Factors The nature of an enterprise wide implementation indicates a shortened timeframe and the need to progress at a reasonably rapid pace. The following list outlines the key critical success factors that are needed in the FLYON GROUP.implementation project. • Talent. The quality of the project team impacts the quality of the implemented solution. The goal
for FLYON GROUP.should be to have the best, most talented resources of the organization dedicated to the RealSoft implementation. They must be empowered to resolve key issues in a timely manner. • Ownership. Visible and ongoing management ownership of the project is crucial. Senior
management should be active participants in the Project Executive Steering Committee, ensuring that effective decisions take place. Additionally, every Project Team member must feel responsible for the overall success of the project. • Partnership. This project will bring together resources from many areas of the FLYON
GROUP.organization, as well as from CORAL. The project structure represents various organizational and technical perspectives and must be supported to provide explicit issue resolution and an environment of teamwork. • Scope. The boundaries and objectives of this implementation have been clearly defined and
communicated in this document. There should be no doubt as to the goals the project needs to achieve and the commitment required for success. • Knowledge Transfer. The transfer of knowledge from the RealSoft consultants to project teams
and to the end user community must be managed effectively. Knowledge of the solution should be viewed as a valuable organizational asset given the potential value and extent of the integration with other processes. Extensive end user training will be required to ensure the successful operation of the RealSoft installation. • Acceptance. The transition to the RealSoft solution will involve change in the work environment of
both the user and systems personnel. Building commitment to this change is an important responsibility of both the Executive Steering Committee and the project team. Solid acceptance and commitment require time. In addition specific actions must be planned and executed at each stage of the implementation process. • Empowerment. Quick decision-making to resolve issues is critical to meeting project deliverables.
All team members must be empowered to make decisions and resolve issues as they arise throughout the project lifecycle Experience has shown that the following additional factors will play a critical role in the success of the FLYON GROUP.RealSoft implementation: • The need to develop a business case with strategic and tangible benefits • Focus on the organization and team scope • Insistence on visible, real, top management involvement during and after the implementation • Adequate emphasis on change management • Implementation of creative project team incentives which extend into the post implementation period • Rigorous project and partner management • Reengineer in correct dosages • Pay attention to demanding training/support needs during and after implementation: train and retrain.
• Free exchange of information within the team, and the communication of overall project news throughout the organization. Use the business case to track performance and manage change • Identify and define ownership of the benefits—go beyond signoff • Keep everyone focused on benefits and capabilities, not just the “go-live” • Align expectations of benefits timing at all levels: make the implicit explicit • Extend the planning horizon beyond go-live
H.2. Commitments required from FLYON GROUP.for success of this project In order to ensure that the project is successful, the following commitments are required from the senior management of FLYON GROUP.. 1. A Steering Committee of Senior Company management will be in place to guide and advise the Project Team. 2. The project team, including FLYON GROUP.project team members and CORAL project team members will be co-located at FLYON GROUP.facility at Thrissur . 3. Policy decisions will be made within strict turn around guidelines, normally within 24 to 48 hours. 4. All deliverables will be signed off within 5 working days from their submission as per the Project Plan 5. Weekly or Fortnightly status reports and regular team meetings will be held to facilitate the communication of the project status and deliverables; these will be completed/attended by all key team members. FLYON GROUP.staff has knowledge of the existing legacy systems from a technical perspective. Additionally, it is anticipated that any support from other Company entities, as might be needed (infrastructure, network, desktop support), will be available to the project team and will not detriment Coral impact the project timeline.
(Authorized Signature)
Coral Business Solutions
(Authorized Signature) FLYON GROUP
