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Proposed Solution forKarnak Supply Company
ProTek Presenters:
Jim Clarke
Jim Hildenbrand
Ryan Schussler
Rick Wise
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Fellow Team Members
Will Clark Teresa Costante Natalie Gendelman Steve Hark Shawn Johnson
Antony Kravchuk Nikesh Patel Paul Philips Dave Weber
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Agenda
Introduction Problem Overview Project Description Business Process Reengineering Solution Details Prototype Demonstration Lessons Learned Question and Answer Session
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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.
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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.
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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
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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
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Existing Concept of Operations
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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
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Business Process Reengineering: Proposed Solution
Concept of Operation Breakdown:
Quotation(s) Billing(s)Order(s)
Processing
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Business Process Reengineering: Quotation Process
Customer(s)
KarnakSupply
Company
Request forQuotation(s)
Supplier(s)
Issue BidRequest(s)
Return BidRequest(s)
Quotation(s)
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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)
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Business Process Reengineering: Billing Process Breakdown
Customer(s)
KarnakSupply
Company
Supplier(s)
Materials Bill(s)Payment(s)
Materials BillPayment(s)
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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
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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
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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
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Solution DetailsFunctional Overview
Source: http://compiere.org/functionality/qtc.html
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Solution DetailsRequisition-to-Pay
Source: http://compiere.org/functionality/rtp.html
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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
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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
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Technical Overview
Compiere Specifications Server Specifications Client Requirements Remote Access Security Considerations
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Technical OverviewCompiere Specifications
Open Source Solution Customizable Modules
Built Using Java Technologies Oracle 10g Database
Broader Database Support in Future Compiere Support Solutions Available
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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)
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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
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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
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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
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Prototype Demonstration
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Lessons Learned
Customer Relations Project Management Time Management Overcoming obstacles Systems Analysis Procedures Software Evaluation and Testing
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Questions