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