ERP Proposal

Bhupendra Steel

By

Solvonix Technologies Pvt. Ltd

Faridabad (Haryana)

Business Contact
Sumit Chauhan - 9910888110
May 26, 2010
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Content

1. Our understanding about your Organization in Brief

2. Objectives
3. Proposal
3.1 ERP
3.2 Configuration and Customization of ERP
3.3 Integration of Various Modules
3.4 Proposed Steps of Implementation
4. About Solvonix Technologies.
5. Technical Expertise
6. Commercial Terms
6.1 License Fee
6.2 Implementation Fee
6.3 Customization Charges
6.4 Other terms & Conditions
7. Scope Summary
8. Hardware and Software Requirements
9. Requirement from the Customer
10. Annexure

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Our Understanding

Bhupendra Steels wants to implement a complete Enterprise Resource Planning Software Solution, ERP,
which would cover all the business processes spread across the organization and its units. This solution
would facilitate the seamless flow of information across departments and would integrate the various
components of the system such as Sales & Distribution, Production Planning Control, Manufacturing,
Materials Management, Finance, Human Resource Management, etc.

Bhupendra Steels wants to implement the various components of ERP in phased manner and thus
MODULAR approach is being taken. The various modules which will be implemented in different phases
would be highly integrated and interlink the data flows between various operations. This would enable
them to get comprehensive, consolidated and timely information.

On this end has asked Solvonix Technologies to submit their proposal for implementing Bhupendra
Steels? ERP, keeping in mind the complete Enterprise Resource Planning Software Solution to be carried
out in phased manner.

Objectives

The objective is to automate in phased manner, all the operational areas of Bhupendra Steels. A Modular
Implementation approach has to be taken, leading to implementation of a full-fledged Enterprise
Resource Planning Software Solution.

The System requirement specification and implementation may be needed of a solution covering the
following tightly integrated commercial modules: -

PURCHASE
Executes all transactions related to Purchase Department.

SALES
Issue Sales Quotations and Invoices, Tracks Orders received. Barcode your products, generate
reports for Sales Orders, pending orders and more…

MARKETING
Market your products in an efficient manner. Know your customer and keep track of your
prospective customers, Budget your sales, Plan new product developments.

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INVENTORY
Cut costs by maintaining a low level of required inventories. ERP helps you in optimizing
your inventory requirements in an effective manner.

ENGINEERING
Control this important function by having complete details of bills of materials by maintaining
process and component sheets.

PAYROLL
Fed up with calculating salaries and wages manually month after month. Keep records of all
employees for daily attendance, overtime and incentives, gratuity, bonus, PF, ESI, Loans
disbursed/ recovered, Form 16, tax exemption details. Print salary sheets and individual salary
slips. Ensures complete peace of mind.

PRODUCTION PLANNING & CONTROL

Plan your production and have complete control. View sales plan with matching production
plan, material plan, consumable plan, job work plan, tool plan, machine plan, jigs & fixture plan,
process plan and manpower plan. Planned production maximizes the potential of the enterprise
by reducing costs and unnecessary processes increasing profits in the bargain.

PRODUCTION
As per the production plan one can view transactions related to shop floor. View pending orders,
orders in process. Plan your production effectively to cut costs by reducing overheads.

STANDARD ROOM
Quality can only be assured if the testing equipment is in right shape. View complete details of
equipments, history cards, calibration information, Inspection reports etc.

MANAGEMENT INFORMATION SYSTEMS

The MIS module ensures that you know your operations completely and that too at the click of
a button. It contains over 130 reports as mentioned above in respect of purchase, sales,
inventory, excise, vat, production and all other departments and processes. Although these
reports have been designed with our long experience in the industry they can be further
customized to suit the requirements of the management.

Proposal

ERP
Presenting ERP– an Enterprise Solution committed to maximize potential of an Enterprise by
creating a perfect mix of Manpower, Equipment and Resources to capitalize on opportunities.
And at a price which does not cost you a fortune. Or take up too much time to implement.
Which means, even if you are a small or a mid-sized Company, you can afford to install this ERP
tool and open up your business opportunities, virtually.

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ERP runs on Oracle 9i and Developer 2000/ Internet Developer Suit, by far the most reliable and
trusted platforms, worldwide.

ERP does not cost you a fortune to implement.

ERP is tailor made for the Indian environment by a team of techno-commercial professionals.

ERP is a business solution that is easy to customize & implement, even at the user level.

ERP is especially designed for small and medium size companies seeking a single solution for all
its operations.

ERP can help you achieve cutting down costs, time and wastage by streamlining your operations
and better utilizing your assets.

ERP helps you to boost your productivity and thereby profits.

ERP is really Enterprisingly Effective.

ERP contains over 25 modules for different departments as given below

PURCHASE ENGINEERING
SALES HR & PAYROLL
MARKETING PRODUCTION PLANNING & CONTROL
GATE ACCOUNTS
STORES PRODUCTION
 RECEIPT STORE TOOL ROOM
 ISSUE STORE MAINTENANCE
 DISPATCH STORE QUALITY ASSURANCE
INVENTORY STANDARD ROOM
EXCISE SECRETARIAL RECORDS
BUDGETING MANAGEMENT CONSOLE
FIXED ASSETS MANAGEMENT INFORMATION SYSTEMS

Configuration and Customization of ERP

ERP will be configured and deployed at Bhupendra Steels.
ERP will offer comprehensive benefits by integrating information across - functions, departments
and locations, in the organization and will offer information at fingertips through a strong MIS
module

The proposed ERP will go beyond transaction processing and will look at the origin of the
Transactions i.e. Enterprise Process Modeling whereby the system will allow the processes to be
defined/modeled by Bhupendra Steels. The system will be highly parametric, with rules based
Client Server Application, which will allow “build-in” or changing Process Rules.

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Integration of Various Modules

The different operational/functional modules can be spread out geographically in multiple
locations and still provide the necessary information flow and integration required.

The Business Process/modules within ERP will be tightly integrated. This ensures that single
point entry is made for all key transactions like purchase, Sale, Inventory, Accounts, Excise,
Production, Payroll and it is updated across the different applications automatically. This ensures
better authentication of Data and reduces any duplicity of entry.

Proposed Steps of Implementation

 Loading of Oracle on Server
 Loading of Package
 Creation of Database
 Loading of D2k Runtime on Clients and Creation of Connectivity with Server
 Creation of Masters Manually As Per Specifications
 Approval of Masters
 Loading of Masters in Package
 Loading Provisional inventory And Accounts Opening Balances in Package
 Printing of Masters, Checking and Approval
 Fixation of Data Entry Points
 Users Training Of Package
 Dry Run of Package
 Feedback from Users
 Prepare Customization Request Form
 Finalize Customization Requirements with Customer
 Approval of Customization from the Management
 Undertake Customization
 Dry Run after the Customization
 Final Approval of Package
 Reloading Of Database
 Identification of Cut off Date
 Recreation of Masters
 Creation of Opening Balances of Accounts and Inventory
 Start Using the Package

About Solvonix Technologies

We are Solvonix Technologies. An organization conceived and managed by IT professionals, financial
wizards and business integration specialists. All having expertise and extensive experience in their
respective fields. With a deep understanding of several trades and processes, we harness the power of
information technology to cater to all types of requirements. Solvonix Technologies is engaged in the
design, development, implementation, manufacture and license of ERP

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Technical Expertise
The technology areas in which we have the expertise are:

Platforms
We offer services on a range of developmental platforms including Windows/ Windows NT and
various Unix-based systems.

Rapid Application Development Tools

Our clients have a choice of tools such as Developer 2000, Internet Developer Suite and Designer
2000 and Visual Basic.

Databases
While our main strength is in relational databases such as Oracle 8/ 8i/ 9i we also have expertise in
Object Database such as SQL Server, MS Access.

Support expertise only SOLVONIX TECHNOLOGIES can offer

Solvonix Technologies offers its customers the means of achieving greater ongoing control of their
business through its vision, foresightedness and ability to define and redefine the way they do
business… as markets, customers and competitive conditions change rapidly.

We provide real time support to our clients and thereby provide end-to-end services for our clients.
We have business experts who, in close coordination with clients, develop and implement
applications ensuring that the entire software development and implementation life-cycle moves
streamlined.

Team Solvonix Technologies has the expertise in a variety of technologies from client - server based
platforms to web and PC-based applications. We are well equipped to develop, host as well as
implement distributed applications.

Quality of any solution is ensured through effective post implementation testing and trials. It is here
that we ensure complete commitment to quality - the desire to outperform ourselves. We are
perfectly geared to deliver large mission critical applications on a fixed cost, fixed time basis.

Commercial Terms

License Fee
The License fee of ERP will be as per Annexure B.

Deliverables
The following will be provided to Bhupendra Steels during Implementation.
1. One set of CDs containing the software
2. Implementation Manual

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3. User Manual
4. Data Flow Diagrams
5. Data Dictionary
6. User Control Sheets.

Payment Terms
The contracted installation fees shall be payable in the following manner:
 40% on Signing of contract.
 20% on installation of ERP solutions.
 20% on integration of modules.
 20% on successful entries.

Implementation and Customization Fee:

250 man-hours for Implementation & Customization on sight and off sight are FREE with
installation.
Any additional Implementation & Customization will be charged As per Annexure C

Payment Terms:
The implementation fee shall be billed to you on a monthly basis payment against which shall be
released by you within 7 days.

Charges for Annual Maintenance Contract:

AMC will be applicable after 12 months from signing of contract. After that AMC will be 20% of
the order value, which will be paid on half yearly basis (In advance).

Payment Terms:
The AMC charges are payable in advance for the quarter within 15 days from date of submission
of bill.

Other terms & Conditions:

 All payments should be made by demand draft/ or crossed cheque in favor of Solvonix
Technologies.
 The quoted prices are exclusive of all the duties and taxes, which will be charged extra as
applicable.
 All out of pocket expenses including traveling, boarding, lodging and other expenses will
be born by the client. Traveling, boarding & lodging expenses are not applicable in Delhi
& NCR.
 Incase of flood, fire, earth quack, natural calamities or non-payment, JASB has the right
to terminate the contract without any prior information or refund of realized payments.
The ownership of the source code of the product to be developed will at all times
remain with Solvonix Technologies. The customer will not distribute / use the product/
software or the associated documentation in any form other than agreed upon in this
proposal, without the explicit written permission from Solvonix Technologies.

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Scope Summary
The main requirement initially is to have an integrated system which links the various business
processes between the different departments of the concerned industry, especially to provide
speedy assimilation of information and avoids unnecessary duplication of work.

Hardware and Software Requirements:

Server configuration (min.) – Pentium IV, 512 MB RAM, 40 GB HDD,100/1000 Mbps Ethernet Card,
Offline Storage device such as CD Writer, Cartridge Tape Drive, Zip drive etc.

Client configuration – Pentium III, 128 MB RAM, 4 GB HDD, 100/1000 Mbps Ethernet card

Structured Cabling for the Local Area Network

Switch – 100 Mbps (nos. depending on the layout)

On-Line UPS (As per Hardware in use)

RDBMS – Oracle8i/9i Enterprise complete suite

Server – Windows NT or higher

Client – Windows 9x or higher

Runtime D2K (depending on the nos. of users)

Requirement from the customers

The customer will be required to provide the following:

1. Time and input for requirement specifications

2. Formats and specifications of the output

Live testing will be done at Bhupendra Steels.

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APPENDIX
The price lists given below supersede all our earlier price lists and would come into effect from
April 01, 2010.

Module wise prices

Sr. No Module List Price (In Rs.)
1 PURCHASE 90,000
2. SALES 90,000
3. INVENTORY 90,000
4. MARKETING 90,000
5. PRODUCTION 90,000
6. PRODUCTION PLANNING & CONTROL 90,000
7. HR & PAYROLL 90,000
8. MANAGEMENT INFORMATION SYSTEM 90,000
TOTAL 7,20,000

Combined Package Pricing

The combined cost of the package, including all the above mentioned modules for a minimum of
10 users is Rs. 5,00,000/- (Five Lac only) .

The above price lists are valid for the standard package of, ERP and does not include prices/
charges/ fees for:
* Implementation fees * Microsoft O/S user Licenses

* Customization charges * Upgrade fees

* Training Fees * Hardware Prices etc

* Annual maintenance charges * Out of pocket expenses

* Oracle User Licenses

The ERP license is available in the pack of 10 user license and thereon.

Out of Pocket Expenses and taxes as applicable are charged on actual basis