Proposed Solution forKarnak Supply Company

ProTek Presenters:

Jim Clarke

Jim Hildenbrand

Ryan Schussler

Rick Wise

Fellow Team Members

Will Clark Teresa Costante Natalie Gendelman Steve Hark Shawn Johnson

Antony Kravchuk Nikesh Patel Paul Philips Dave Weber

Agenda

Introduction Problem Overview Project Description Business Process Reengineering Solution Details Prototype Demonstration Lessons Learned Question and Answer Session

Introduction

Karnak Supply Company (KSC) presently operates as an inventory based warehouse located in a major northeastern city.

KSC lost its facilities due to eminent domain. Liquidation of company assets.

Problem Overview

Decided to move to a electronic order entry system.

This includes the creation of a new enterprise resource system: Earn government funding by employing at

least 50% handicapped persons as customer service agents.

Develop relationships with both suppliers and customers to increase profitability.

Project Description

Develop Electronic Order Processing System Prototype Customer Relations Management Enterprise Resource Planning

System Solution Documentation Functional and Technical Overview System Capabilities Security Considerations Cost Overview

Business Process Reengineering

Limitations with existing concept of operations

Reengineer the existing business process Reduce limitations of existing business process Standard Reseller Distribution Operation More effective and efficient operating environment

Existing Concept of Operations

Proposed Concept of Operations

Customers Joe’s Agents

$ $$

Customer Pays Joe’s Billfor materials

Request’s material fromJoe/Joe’s agent

Bill/Invoice =Supplier’s invoice +

overhead + profit

Bill/Invoice = Price ofGoods + Shipping +

Other Incidental Costs

Purchase order fromJoe’s agent to supplier

Joe pays supplier’s billfor materials and

shipping

Goods shipped directlyto customer

Supplier

Supplier

Supplier

Business Process Reengineering: Proposed Solution

Concept of Operation Breakdown:

Quotation(s) Billing(s)Order(s)

Processing

Business Process Reengineering: Quotation Process

Customer(s)

KarnakSupply

Company

Request forQuotation(s)

Supplier(s)

Issue BidRequest(s)

Return BidRequest(s)

Quotation(s)

Business Process Reengineering: Order Processing Breakdown

Customer(s)

KarnakSupply

Company1. Sales Order(s)

Supplier(s)

2. Purchase Order(s)

3. Product(s)

4. Shipping Confirmation(s)

5. Invoice(s)

Business Process Reengineering: Billing Process Breakdown

Customer(s)

KarnakSupply

Company

Supplier(s)

Materials Bill(s)Payment(s)

Materials BillPayment(s)

Business Justification for Proposed Solution

Preliminary Solution Package identified as BS/1 and Paradox Integrated.

Encountered Difficulties Poor interface design Integration problems Poor customer service Flat-file data storage

Business Justification for Proposed Solution (continued)

Major integration issues Purchase Order and Accounts Payable Modules No reference between purchase order and bill Risk of human error during Data re-entry Difficult referencing a particular bill to original

purchase order

Solution Details

The system will utilize Commercial Off The Shelf Software (COTS) called Compiere Open Source ERP Software with integrated CRM

Solutions Compiere provides a comprehensive solution for

small-to-medium sized enterprises in distribution and service on a global basis and covers: Supply Chain Management Customer Management Accounting Modules

Solution DetailsFunctional Overview

Source: http://compiere.org/functionality/qtc.html

Solution DetailsRequisition-to-Pay

Source: http://compiere.org/functionality/rtp.html

Solution DetailsCost Analysis

BS/1 & Paradox - Startup Costs

  Units Unit Cost Total Unit cost

Server 1 $4,251.00 $4,251.00

BS1 Application Server/Unlimited Client Licenses 1 $1,314.00 $1,314.00

Cost of BS1 source code 1 $2,409.00 $2,409.00

Cost of Paradox 25 $299.00 $7,475.00

Borland Delphi 2005 Professional 2 $999.00 $1,998.00

Microsoft Office 25 $169.00 $4,225.00

Module Developers * 2 $78,000.00 $156,000.00

Additional Client Access Licenses 10 $68.00 $680.00

       

Total $178,352.00

Solution DetailsCost Analysis

Compiere - Startup Cost

  Units Unit Cost Total Unit Cost

Server 1 $7,325.00 $7,325.00

Oracle Licensing 20 $150.00 $3,000.00

Microsoft Office 25 $169.00 $4,225.00

Compiere Licensing 1 $0.00 $0.00

Code Enhancement/Customization/System Admin* 2 $78,000.00 $156,000.00

Compiere Self-Service Program 1 $4,500.00 $4,500.00

Additional Client Access Licenses 15 $68.00 $1,020.00

       

Total $176,070.00

Technical Overview

Compiere Specifications Server Specifications Client Requirements Remote Access Security Considerations

Technical OverviewCompiere Specifications

Open Source Solution Customizable Modules

Built Using Java Technologies Oracle 10g Database

Broader Database Support in Future Compiere Support Solutions Available

Technical OverviewServer Specifications

Dell PowerEdge 2800 Server Microsoft Windows 2003 Server Standard Includes Oracle 10g SE1 Database with 10 CALs MailEnable Standard e-mail Server Software Java Development Kit (JDK)

Technical OverviewClient Requirements

Windows 2000/XP Recommended; Windows 98/ME and NT4 at a Minimum

Java Runtime Environment (JRE) Compiere Client Application High-speed Internet Connection with Firewall

Router

Technical OverviewRemote Access

VPN connectivity L2TP/IPSec Protocol

Database &Application

Server

VPN Server

Firewall Routerwith

VPN Tunneling

`

User Workstation

Switch VPNTunnel

VPNTunnel

Firewall Routerwith

VPN Tunneling

Internet

Technical OverviewSecurity Specifications

L2TP/IPSec EAP-TLS Certificate and/or Smart Card

Authentication IPSec 168-bit Triple DES (3DES) Encryption

Remote Access and Corporate Network Policies Logging Routers with Built in Firewalls and Intrusion

Detection

Prototype Demonstration

Lessons Learned

Customer Relations Project Management Time Management Overcoming obstacles Systems Analysis Procedures Software Evaluation and Testing

Questions