RFQ for Project Parivartan: Scope of Work (SOW)

Transcription

1 RFQ for Project Parivartan: Scope of Work (SOW)

2 Contents Contents... 2 Scope of Work Purpose of this Document Project Background Project Objectives Implementation Approach and Plan General Terms and Conditions relating to Scope of Work High Level Scope of Work Project Preparation Phase Formation of Teams/Committees Project Charter Project Office setup Training Strategy Familiarization training Specialist Training Training Server Phase Deliverables Framework Formulation Phase Business Process Study (As-is) Technical Training on Business Intelligence Tool Business Process Transformation Organization Change Management Setup of Development and Test Environments Phase Deliverables Conference Room Pilot Application Configuration Customization Business Process Demonstration and Review Finalization of Business Blueprint Phase Deliverables Realization Phase Custom developments and BI

3 Interface / Integration Development Unit and Integration Testing Supply and Installation of Infrastructure for Production and DR Setup Preparation of Data Migration templates and Scripts Configuration Review Phase Deliverables Final Preparation Phase Training Plan and Go-Live Criteria Data Conversion and Migration Training to Divisional Functional and Technical Expert teams Users Creation and Authorizations Training to Divisional End users Stress and Volume Testing Phase Deliverables Go-Live and Hand Holding Phase Go-Live Hand Holding Performance Monitoring and Tuning Audit of the Implemented Solution System administration Phase Deliverables Project Finalization Phase Project Finalization Phase Deliverables AMC and Support Phase Software Maintenance Support Performance Monitoring and Bug Fixing IFS Life Cycle Support (LCS) Note: A separate confirmatory order will be placed for IFS Life Cycle Support after satisfactory completion of hand holding support (ref para ) and review of IFS Product Version upgrade roadmap Operations Support (Functional) Annual Technical Support (ATS) for Oracle Database Hardware Maintenance Support Additional Manpower Support Annexures Annexure-S Centralized ERP Implementation Groups

4 Annexure-S1A Proposed Project Plan Annexure-S Broad Expectations and Key Objectives of the Project Annexure-S Business Processes Implemented in existing ERP Annexure-S Functional Requirement Specifications Annexure-S Technical Requirement Specifications Annexure-S Specialist Training Solution Technology Annexure-S Experience Criteria for Subject Matter Experts for BPT Annexure-S Integration with Other Applications Annexure-S9A Bill of Materials for Production Setup Annexure-S9B Suggested Bill of Materials for Test and Development Setup Annexure-S9C Suggested Bill of Materials for Backup Solution Annexure-S9D Suggested Bill of Materials for DR Solution Annexure-S9E Suggested Bill of Materials for Oracle Software Annexure-S10A Performance Requirements Annexure-S10B Test for Performance Requirements Annexure-S10C Test for Performance Requirements Note: For the purposes of this test, the result (for WAN) is to be achieved in the WAN having a maximum bandwidth of 40 Kbps per client for logged in user Annexure-S Team Profiles CVs Annexure -S

5 ERP Functional Audit Remediation Annexure-S SLA matrix for Software Maintenance support and Additional Support Manpower Annexure-S Detailed Scope of Work for BI Implementation Annexure-S Minimum Specifications for PMO Annexure-S SLA matrix for Hardware Maintenance support Annexure-S Deliverables of the Audit of Implementation Annexure-S Pre Qualification Criteria for Auditor Annexure-S Scope of Audit

6 Scope of Work 1.1 Purpose of this Document The objective of this document is to solicit proposals from the prospective bidders for Turnkey Project on Upgradation of existing IFS ERP system at HAL. 1.2 Project Background Currently, 22 of HAL s Divisions have implemented ERP application - IFS in an independent and phased manner on separate instances. The major modules under use include Configure and Make to Order (Manufacturing, Quality etc.), Distribution (IMM, Customer Services, Out-sourcing etc.), Financials, Maintenance Repair and Overhaul, Human Resources, Payroll, Service Management and Enterprise Asset Management etc. In addition to the ERP application, these Divisions also have several in-house developed applications and reporting platforms to cater to the information requirements at various levels in the organization. A few Divisions/units, where ERP is not currently implemented, also depend on in-house developed applications and reporting platforms. Due to the largely decentralized information technology landscape, there is variation in methodology of business process execution and monitoring across the organization. In order to meet the challenges of evolving business scenarios and to ensure sustaining competitiveness and customer focus, HAL has initiated Project Parivartan, a comprehensive Business transformation exercise. Project Parivartan is expected to be driven by an upgraded and centralized ERP, which will form a strong foundation to spearhead future growth. This exercise will enable HAL to streamline and standardize business processes across the organization and to adopt some of the global best practices being followed in similar industries. 1.3 Project Objectives In pursuit of its objective for value maximizations and seamless Integration of all its business units, HAL intends to upgrade its existing ERP to a centralized instance for the entire organization. The key objectives envisaged in this Integrated ERP Solution are: 6

7 1. Standardization, Rationalization and Integration of business processes and systems across HAL to deliver business value, through consolidation of data and rationalization of processes to achieve Operational Excellence. 2. Measurement of KPIs, Generation of process efficiency scorecards, Early warning on exceptions, Alerts using Business Intelligence tools/cpm to achieve informed decision making, quicker Turnaround time for Financial Transactions, Reporting, Analysis, Feedback and improved accountability. 3. Integrated Planning mechanism comprising of Master Production Schedule, MRP, Shop Floor Scheduling, Procurement Planning, Outsourcing Planning etc. considering targets, capacity and constraints to improve utilization of resources as well as on-time delivery. 4. Optimization, Automation and Simplification of Processes by use of intelligent data capture devices like Barcode scanners to enable efficient and accurate use of system. 5. Centralization of ERP Processes & Data and integration with other applications (PLM, Biometric Attendance system, existing non-erp applications like PAR,MAT etc) to provide Enterprise wide visibility of relevant information and bridging Digital Disconnect across business units 6. Integration of Supplier Relationship Management (SRM) functionalities with ERP to facilitate enhanced Collaboration so as to achieve improved supply chain efficiency. 7. Implementation of Corporate Governance and Risk Compliance (GRC) Norms through System driven controls, checks & balances for achieving transparency, tighter adherence to regulations and statutory requirements in the financial transactions and Operations. 1.4 Implementation Approach and Plan The project is envisaged to be executed by a competent System Integrator (SI), on a turnkey basis, with responsibility for all the aspects of the project. The project is to be carried out in three stages viz., (1) Business Process Transformation (BPT) (2) Implementation (3) Support. Each stage comprises multiple phases with different activities. To start the activities under next stage, it is mandatory that preceding stage key activities, required to meet 7

8 the business objectives from that stage are completed and written communication is issued by HAL. Project Plan (Stages and Phases) Stage I BPT Project Preparation Framework Formulation Conference Room Pilot Stage II - Implement ation Realization Final Preparation Go-Live and Hand Holding Project Finalization Iterative for Pilot and Rollouts Stage III - Support AMC and Support for 5 years Each stage comprises of multiple phases with different activities. Broad timelines proposed for each activity/ phase/ stage are indicated in Annexure -S1A. The methodology to be deployed by the SI to implement the ERP solution will have different work elements and activities. All these activities and the work elements should coherently focus on achieving the following key results Quality of the solution deployed Customer satisfaction while deploying and during usage Successful implementation in terms of completeness and timely accomplishment of the outcome While there are different techniques and tools available as a part of the methodology, the following are expected to be part of the implementation methodology to be adopted by the SI. a. Workshops with different stake holders for capturing business requirements, creating awareness of best practices, communicating the changes, building consensus on process design, for signing off the deliverables etc. These need 8

9 to be organized at different intervals and in different places throughout the duration of the projects as demanded by the context. b. Stake holder consultation other than workshops, with those stake holders who will be identified by HAL, for the purpose of critical inputs, review, suggestions, process description etc. c. Review sessions with different stake holders for signing off the deliverables, walking through the deliverables for facilitating quick understanding d. Documentation of proceeding recording the developments, discussions, deliverables, using standard methodology and native tools available with the ERP solution e. Work standards/practices for documentation, configuration, testing, data migration etc. Tentative list of Divisions / units proposed for Pilot and rollout groups is placed at Annexure-S1 (Centralized ERP Implementation Groups).HAL reserves the right to interchange the Divisions in the pilot/ rollout groups depending on the ease of roll out, geographical, technical and administrative constraints, at that point of time. 1.5 General Terms and Conditions relating to Scope of Work 1. The Bidder responding against this RFQ shall be deemed to have read and understood the Scope of Work and have responded to the same. The Bidder will be responsible for the complete implementation of proposed solution and supporting the operation of the proposed solution during and post implementation as per the contract. 2. SI and OEM shall participate in monthly meetings with HAL Project Management and ITSS Team and provide updates on Project progress, Risk parameters (if any), Resource requirements, immediate next project steps, and any obstacles in project. This meeting is meant to be a forum for seeking and getting approval for project decisions. Other than the planned meetings, in exceptional cases, HAL/SI/OEM may call for meeting with prior notice to all other parties. 3. In addition, SI shall submit to HAL a written progress report of the Project every week against the project plan. SI shall also report exceptions and issues that require action along with proposed effective solutions and timelines for implementing such solutions to remedy such issues. SI shall suggest the formats and contents of the weekly progress reports at the start of the project preparation 9

10 phase which will be approved and finalized by HAL. HAL reserves the right to ask SI/ OEM for the project review reports other than the standard weekly review reports. 4. The bidder, while responding to this RFQ document via various formats for Technical/ Price Bids etc. must ensure that all necessary Hardware, Software, Licenses, Implementation, Training, Annual Technical Support, Documentation, Support & maintenance, Integration Tools/software etc. for creating and sustaining the entire Integrated Solution have been factored suitably. All the components required for completeness of the project to meet the broad expectations are to be considered, even though it is not explicitly mentioned. Any additional cost, not factored suitably in the response, but necessary for completeness of the Integrated Solution shall be solely borne by the SI. 5. User feedback and internal review: a. The SI is expected to build adequate mechanisms to get the feedback from different users of the ERP Solution during different stages of the project. These users/stake holders for giving feedback will be identified by HAL. b. The SI is expected to deploy in this project the expertise gained through experience of similar projects carried out earlier by OEM. It is expected that all the key deliverables will go through a review with these OEM experts. Similarly the SI is expected to deploy all the quality assurance mechanisms as per international quality standards for this project. c. The SI should clearly indicate up front what are the deliverables which will go through internal review, what type of expertise will be deployed for these reviews and what are the deliverables which will follow the quality assurance plans. If any of the deliverables are not acceptable to HAL or its appointed experts, it will have the right to seek deployment of experts from SI/OEM to review the deliverables. 6. Mechanism to adopt feedback/audit findings: There are three types of feedback for the deliverables from the statutory / Government agencies, from the users/stake holders of HAL and from the internal experts of the SI/OEM. The following is expected from the SI on these feedbacks/audit findings. a. All the feedback will be discussed with HAL and based on the guidance of 10

11 HAL, will be incorporated into the project b. Since the feedbacks/audit findings for any rework is by nature correcting the inadequacy of quality of the work produced in the first place, additional effort incurred by SI towards these reworks will be without any obligation to HAL. c. SI has to build in adequate mechanisms to control the risks of time over runs possibly due to effort required to rework bad quality deliverables d. SI has to indicate in the beginning and during the start of each phase how it plans to take feedback and the mechanisms to incorporate the feedbacks into the project plan and deliverables. SI will report to HAL how the feedbacks have been incorporated into the project deliverables and take a sign off from the designated authority of HAL. 7. Issue Management: An issue is a formally identified matter that may hinder progress on a project or program and about which no agreement has yet been reached. Those items that require documentation, formal investigation and approval should be managed as issues and this Issue management methodology has to be proposed by the SI. 8. Since this is a fixed price project with clearly identified scope of solution and services, the SI is expected to complete the project without raising any requests for change and seeking the payments for them Obligations of ERP OEM i) Supply of ERP Software & Licenses The ERP Product OEM will be responsible for supplying the latest versions of ERP application licenses and related software, integration tools and support the Bidder for installing the same. The licenses shall be supplied by the ERP Product OEM only on the basis of written requisition of HAL. The ERP Product OEM shall carefully consider the functional scope of work and support the SI in providing a solution (base ERP software/ industry and/ or functional solutions) that best meet HAL's requirements. HAL is a complex organization conducting design, manufacturing and MRO of Aircrafts, Helicopters and Aeroengines. Looking forward, the HAL expects this project to be the source of providing business intelligence to aid in strategic decisions. 11

12 The ERP product OEM shall provide necessary assistance to the System Integrator for achieving the functionalities in the Software so as to meet the Business Expectations as mentioned in this RFQ. A tentative list of Broad Business Expectations is placed at Annexure S2 and tentative details are also available under FRS (Annexure S4). For this purpose, ERP Product OEM should deploy senior business consultants (as per Annexure R1J) and also assist the SI in deploying the Subject Matter Experts (as per terms of this RFQ) to drive the following as mentioned under para 1.8.3: Process Standardization and Optimization Process Simplification Enhancement Decision Support System using BI Centralization Planning Methodology Integration with other Applications The ERP Product OEM shall supply: Core ERP software & licenses (Latest version). Advanced/Additional modules & related components software & Licenses (Latest version) such as Crystal Report, Oracle Autovue as required. Tools, accessories, documentation and provide a list of the same. Tools and accessories shall be part of the offered solution. Product Documentation: Two sets of Product Documentation in soft copy to be supplied along with licenses and shall include but not limited to following: Technical manuals Installation guides User manuals System administrator manuals Toolkit guides and Troubleshooting guides All the above documents mentioned or any other standard documentation for the product should be included in the cost of the license. Hardcopies of documents, if any requested by HAL, shall be provided. All the tools, accessories, software and 12

13 media supplied under the contract shall be original copies and warranted against damages or not working, for 90 days from the date of installation and will be replaced without any cost to HAL. Add-on Modules should have sufficient provisions to meet the functionality &business requirement keeping the ERP user licenses as mentioned above. ii) Software Maintenance Support The ERP Product OEM shall provide support, maintenance & upgrades for all the software products versions (ERP Licenses) supplied as mentioned in the Bill of Material as mentioned in scope of work section iii) Leading Business Process Transformation HAL strongly feels that the success of this project to derive optimum Business benefits depends on Business Process transformation exercise. This exercise will require inputs on the best practices being followed on IFS Platform globally and also in other Public Sector Units along with Technological capabilities built in the IFS Solution to integrate with the other devices such as Barcode scanners etc. Therefore, it is obligated that OEM will assist SI in identification of suitable Subject Matter Experts in line with the qualification criteria mentioned in the RFQ and also associate with the Subject Matter Experts to devise the Framework Formulation. ERP Product OEM shall deploy Senior Business Consultants along with the System Integrator project team to drive the overall business process standardization and Optimization. iv) Participation in Program Management Office HAL s experience in ERP implementation indicates that strong project governance is critical to timely and successful completion of the project. ERP Product OEM s participation in the Program Management Office in the following areas is mandatory: a) Program Manager The program manager from the ERP Product OEM need to have a deep understanding of offered ERP product and Solution, identify the top issues, and drive the resolution process.hal expects the ERP Product OEM Program Manager shall work towards a timely delivery of the ordered activities in accordance with the terms as set forth. The Program Manager should focus in these areas during ERP project implementation 13

14 Insight on achievement on Business benefits intended from this project and to steer the vision accordingly To ensure that the information required at various levels to assist in strategic decision making starting from Board of Directors, CEOs and GMs level is met in a efficient way using tools like Dashboards, BI reports etc. Identifying potential areas for performance improvement of the core business processes, technical stability of the ERP solution, data consistency and stable operation of critical interfaces and operations readiness. Identifying potential areas for optimization of ERP Software solution. Coordinating the support process for ERP solution till the start of AMC and Support phase. To co-ordinate & resolve the issues raised by implementation team, requiring intervention from IFS Global R&D. Implementation of recommended actions (including providing reports on support related topics) resulting from ERP's deliverables. Provide guidance to support team on the use of ERP tools, if required. Work with project team in sharing relevant best practices with End User Team. The services should also include the following: Project Review and Monitoring Drive Quality Review Process Participate in Project Steering Committee meeting and CAB Meeting Escalations to steering committee and CAB Oversee Change Management b) Organization Change Manager ERP Product OEM shall deploy one senior Change Management Consultant, who will define and drive the Change Management strategy evolved from Business Process Transformation across the HAL, seamlessly aligned with the implementation methodology. The Change Manager from ERP Product OEM shall conduct the assessment, recommend strategy for Change Management, align the change 14

15 management program with the implementation methodology and coach change agents of HAL on how to drive change across all units. The key deliverables are: Getting the sponsoring leaders to align on the benefits, goals, metrics and accountabilities Getting business unit managers to own the success of the implementation and to drive the realization of benefits Change Management along with HAL Team Preparing, training, and supporting the power users who will be using the system regularly to input data and conduct business transactions. Availability of the System, Confidentiality and Information Security aspects Integration of ERP with different systems of HAL including PLM v) Project Review Project Review will take place at the end of each phase of implementation. Project review should cover project management, implementation road map, key deliverables of the phase, and critical success factors. This is required at the end of each major milestone defined in the project. vi) Business Blueprint Review The solution review should cover the application design and business process parameters. The objective of this exercise is to review the business blueprint / model proposed / gaps identified inert system. The review team should make suitable recommendations towards use of ERP functionalities and features and shares the practices followed in other similar implementations. The ERP Product OEM should carry out solution review at the end of critical phases in the project. This review should be conducted in the functional area (functional modules) identified and across these modules for the purpose of integration. vii) Technical Review Technical Review will be an analysis of the technical implementation components and operational procedures, such as security, backup, performance management, 15

16 printing, and desktop operations. This review shall be conducted after each go-live as per the scope of work. viii) Development and Customization Review Development and Customization Review will help determine whether the design and customization adheres to proven standards such as upward compatibility where custom developments or enhancements to the ERP systems are planned. The scope of this review will be to study programs and applications that have been developed explicitly for HAL (Customizations). The feedback provided will mainly deal with ways and means of optimizing the custom developments to achieve better performance. ix) Hardware/ Infrastructure Sizing ERP Product OEM shall certify the hardware sizing for the Production setup prepared by the System Integrator as mentioned in section Such sizing shall necessarily factor optimal re-use of HAL s existing hardware inventory. The sizing estimates must consider all aspects of sizing such as server configuration, storage, network, type of platform, number and type of users, HAL s expected service levels, desired response time etc. HAL also expects that the sizing estimate is backed up by appropriate testing undertaken by ERP Product OEM to validate the sizing estimate (Ref Annexure R2A format of Test Certificate). x) Transfer of Source Code ERP Product OEM (IFS) will transfer the complete source code to HAL subject to the confirmation that the source code provided by IFS will not be used for any unauthorized purpose/ IPR infringement. In case the policy of ERP Product OEM does not allow transferring the source code, the ERP product OEM shall arrange for an Escrow Agreement with HAL, at no cost to HAL, through a reputed Indian Agency. The source code has to be verified jointly by HAL and IFS before entering into the agreement. The Escrow agreement, if required, to be formalized before or during Project Finalisation Phase. The SI shall submit an agreement letter from ERP Product OEM acknowledging the scope of work as detailed in this RFQ and confirmation to Obligation of ERP OEM as indicated in Annexure R2C of RFQ. 1.6 High Level Scope of Work 16

17 Following is the high level scope of work. Detailed Activity wise scope is mentioned in subsequent sections. 1. To undertake Business Process Transformation exercise to arrive at Framework formulation so as to meet and exceed the Broad Functional Expectations (refer Annexure-S2) through filling up of gaps. An indicative list of Processes of major functional areas is placed in Annexure-S3 (Business Processes Implemented in existing ERP), which is followed in present IFS (ERP) system implemented at various Divisions. 2. To provide the ERP solution for meeting the Functional Requirements Specifications listed under Annexure-S4. The list of the Functional requirement, at Annexure-S4 is indicative and the associated requirements are not explicitly mentioned. In addition, the solution must also cater to all the business requirements arising out of BPT stage. 3. To ensure that the offered solution (along with hardware platform) will match the Technical Requirement Specifications listed under Annexure S5. The sizings mentioned in the document are the bare minimum and the bidder shall offer the required sizing to comply with the following. Commercials to be considered accordingly in the proposal. The offered sizing shall meet the required performance parameters given by HAL, in the above document, during pre-despatch inspection. The Sizing shall be assessed and certified by the ERP-OEM for the offered solution. The ERP-OEM shall submit a Certificate of Guarantee stating that the offered hardware platform (including make and model) will meet the required performance parameters in production servers up to fully loaded condition with users. 4. To establish Project Office, Test Environment, Development & Production Environment, DR setup for the complete requirement of this project as per guidelines mentioned under Technical requirement in the Scope of Work. 5. To implement and roll-out the ERP software along with all its components including required training across the HAL Production units, R&D Centres and Offices. Also to 17

18 make the solution available to the stake holders such as Suppliers and Customers as per the functional scope. 6. To undertake the Change Management programme, so as to bring in control, manageability and required buying-in among the stake holders required for effective implementation and transition. 7. To undertake data and application migration activity for seamless end user experience. 8. To provide Functional & Technical support for the complete solution till the end of AMC and Support phase complying to, but not limited to, the following: a. Incident/Problem Management Monitoring, Tracking and Closing Incidents / Problems reported by the users b. Configuration & Release Management Maintaining the latest and all previous versions of the software source code configuration and its release management to various environments like Development, Test and Production c. Service Desk Ensure proper manning of service desk as per the SLA requirements d. Service Level Management Maintain, Track and Control Service Level agreements as defined by HAL e. Capacity Management - Ensure optimum capacity and its availability of various resources to meet the service requirements Activity wise scope of work is detailed below: 1.7 Project Preparation Phase The major activities / deliverables during this phase would be as follows: Formation of Teams/Committees Activity: Formation of Teams/Committees Project Preparation Phase Scope The Bidder shall provide list of personnel from SI and OEM for various committees and teams for the project. SI has to setup a Project Management Office with the following structure during the entire project duration from project launch to project post-implementation support: Steering Committee consisting of the HAL s top management, CEO from the SI, CEO/ Senior representative delegated by CEO from IFS 18

19 India and Representative from IFS Global at the Director Level (on as required basis). The Steering committee will conduct monthly review of the project progress, Risk parameters (if any), Resource requirements, immediate next project steps, and any obstacles in project. The Steering committee meeting will be a forum for seeking and getting approval for project decisions. All relevant records of proceedings of Steering Committee should be maintained and shared with the Steering Committee and Project Management Office. Other than the planned meetings, in exceptional cases, HAL may call for Steering Committee meeting with prior notice to the Bidder. Project Management Office (PMO), consisting of a Program Manager and Project Manager from the HAL, Program Manager and Functional Integration Consultant (Change Manager) from IFS, Project manager and PMO-in-charge from SI. The Project Management Office would do weekly and monthly meetings and provide weekly and monthly reports like Progress against the Project Management Plan, Status of all risks and issues and status of Testing. Other than the planned meetings, in exceptional cases, HAL may call for meeting with prior notice to the SI. The formats and contents of the weekly and monthly progress reports will be finalized at the start of the project preparation phase. HAL reserves the right to ask the SI for the project review reports other than the standard weekly review reports. Business Process Transformation (BPT) Team will consist of Subject Matter Experts hired on mutual agreement between SI and IFS, Representatives from IFS, SI and Team of FUNCTIONAL EXPERTS from HAL. Core Group, consisting of functional experts, technical experts and infrastructural experts provided by the SI and IFS, Members from the Functional Expert Resource Pool and ITSS Members from HAL. Power User Group consisting of the end users/power users in HAL, and the support team (resources from both HAL and SI). The Qualification and Experience of all the personnel should be in-line with the details as at Annexure-R1J. The CVs of all the personnel to be submitted at the beginning of project preparation phase in the format mentioned at Annexure- S11. HAL reserves the right to request for a change of resource, if HAL is not 19

20 Team Criteria satisfied, any time (even post-approval) due to capability and/or performance limitations/unsuitability or any other constraint decided by HAL. The SI shall promptly provide substitute for the same by providing forthwith similar or higher experience, qualification and capability. In case, there is a requirement for substitution/change of resource by SI/OEM, the same shall be effected with due approval from HAL and SI/OEM shall ensure smooth transition at no cost to HAL. Further, the SI/OEM shall, at no additional cost to HAL, augment its resources to recover implementation gaps and delays whether in the opinion of HAL or in its own opinion, as the case may be. The CVs of Subject Matter Experts to be submitted at the beginning of project preparation phase in the format mentioned at Annexure-S11. SI must ensure that proposed SMEs are decided in consultation with OEM (IFS).Various Project Teams and committees consisting of HAL, SI, and ERP OEM will be notified with respective responsibilities. NIL Responsibility of SI Responsibility of HAL Responsibility of OEM 1. Providing list of SI/ OEM 1. Formation and 1. Nomination of personnel for different teams notification of teams Program Manager, 2. Providing detailed CV of all in consultation with Organization Change team members proposed to be IFS and SI. Manager and other associated with the project OEM Representatives (including Subject Matter for various teams for Experts for BPT) the project. 2. Assistance to SI in identification of suitable Subject Matter Experts in line with the qualification criteria mentioned in the RFQ Project Charter Activity: Project Charter Project Preparation Phase Scope The Bidder should prepare the Project Charter consisting of: Implementation Methodology. 20

21 Team Criteria Project Organization chart. Detailed Project Schedule with a detailed Project Plan detailing all tasks including the person in charge, resources allocated, timelines for each activity (within the phase timelines accepted by the SI in Annexure-R2H), milestones, black-out period and deliverables. Project Risk Management Plan. Project governance mechanism including Escalation Procedures. Resource deployment plan. Help desk setup & operation Plan. Minimum 20% of the team should be from OEM Responsibility of SI Responsibility of HAL Responsibility of OEM 1. Preparation of draft project 1. Approval of Project 1. Review & Feedback charter Charter. 2. Presentation at Required Levels 3. Revision(s) by Incorporating feedback from stakeholders 4. Getting approval from HAL Project Office setup Activity: Project Office setup Project Preparation Phase Scope The Bidder should setup the project office at a location provided by HAL in Bengaluru. The space allocated for project office may be in multiple premises with nearest network connectivity within approx. 500 meters. The project office setup will comprise seating space for 40 personnel from System Integrator, OEM and HAL (including min.15 personnel from HAL). The bidder should make necessary infrastructure setup for the project including office furnishing, computers/laptops, project management software tool, printers/multi-function Printers, UPS, Network points/components (Active and Passive), projectors, stationery, accessories etc. required for the smooth conduct of the project. In addition, bidder shall also setup necessary infrastructure (Projectors, White board, furniture etc.) for adequate number (Minimum 3 nos.) of discussion rooms. The project office should also have facility (including desktops) to provide hands-on training for a batch of 20 personnel. HAL will provide covered 21

22 office space with basic amenities. Minimum infrastructure requirements for project office are detailed in Annexure-S15. The SI is responsible for installation and maintenance of PMO setup during the project and will be the single point of contact for the same. In addition, the bidder should maintain a Project Management Portal for showcasing Project Milestones/status online during complete Project Life Cycle. Team Criteria NIL Responsibility of SI Responsibility of HAL Responsibility of OEM 1. Supply and Installation of all 1. Providing covered infrastructure components office space with including hardware and basic amenities software required for Project Office setup. 2. Supply and Installation of all infrastructure components required for Discussion rooms. 3. Managing and maintaining all infrastructures in the project office and discussion rooms till the end of support period Training Strategy Activity: Training Strategy Project Preparation Phase Scope SI shall submit a document containing training strategy with the following information: Team The facilities, support materials and program including mode of training (standard/ self-paced). List of training areas for training to be provided to Core team, end users and technical users. Duration, frequency and venue of training. NIL 22

23 Criteria Responsibility of SI Responsibility of HAL Responsibility of OEM 1. Preparation of draft training strategy 2. Revision(s) by Incorporating 1. Approval of Training Strategy by Project Management Team. feedback from project management team 3. Getting approval from Project Management Team Familiarization training Activity: Familiarization Training Project Preparation Phase Scope The SI should provide familiarization training of minimum 5 days to the HAL s ITSS and 3 days to Core Team members with the aim to provide an overview of the solution and understand the capabilities of modules. The training should cover at least the following areas: IFS Application overview System functionalities (for each module) and basic configuration System Security features Business Intelligence and KPIs Introduction to reports, interfaces, customization, forms, Administration, Access Control and workflows etc. Team Criteria NIL Responsibility of SI Responsibility of HAL Responsibility of OEM 1. Conducting familiarization 1. Deputing the training for HAL s Core participants for the group. training 2. Providing Training material, Attendance reports and participant feedback forms to HAL. 23

24 1.7.6 Specialist Training Activity: Specialist Training Project Preparation Phase Scope a) To Provide Specialist training for 2 weeks duration for 15 HAL Personnel by OEM Specialists, on Core ERP Technology Areas. The main objectives of specialist training are: To understand the detailed IFS architecture to assess feasibility of process mapping to meet business requirements To explore capabilities of IFS ERP solution to integrate with third party and in-house developed applications To learn global best practices in aerospace /manufacturing industries based on previous experience of global IFS team To understand and assimilate effective use of KPIs and Business Intelligence tools to facilitate Corporate Performance management decision making. The Specialist training on Core ERP Technology Areas should cover the following: IFS Product Technology - Foundation Layer, Layered Architecture, Customization (Development outside the core) possibilities in the latest IFS Application version that would get implemented. Interaction with Research & Development teams to understand in depth the Integration layer of IFS (IFS Extended Server) and various options available for interfacing with 3rd party products and technologies such as Barcode, Single sign on, PLM, Biometric Attendance, in-house developed applications etc. Use of IFS Solution Manager to manage large number of application messages and queues. Configuration, tuning and troubleshooting of IFS Middleware server including Oracle Weblogic as an embedded platform IFS Advanced System Administration training, segregation of duties, GRC, IFS Security Framework New features in latest version of IFS Corporate Performance Management and business decision support 24

25 systems Site visit to one Global Aerospace Industry The training must be arranged at Global Aerospace / R&D Center of Excellence of OEM. Appropriate training materials and practice exercises to be provided. Training feedback should be taken after each session and inadequacies if any to be addressed. The bidder to arrange for Training Space, Boarding, Lodging and Local Conveyance for all the participants during the Training, without any additional cost to HAL. Cost towards travel for HAL personnel will be borne by HAL. Team Criteria Team of Specialist trainers will be 100% from OEM Responsibility of SI Responsibility of HAL Responsibility of OEM 1. Coordinating between 1. Deputing the participants 1. Conducting specialist OEM and HAL for for the training training for HAL s successful conduct of 2. Coordinating travel, identified teams. training boarding and lodging for 2. Obtain feedback from HAL personnel participants and address inadequacies, if any. 3. Providing training material to participants Training Server Activity: Training Server Project Preparation Phase Scope The SI shall establish a training server of the base ERP product at HAL s premises for HAL to have hands-on experience of the configured standard processes of the product. The training server should comply with the minimum hardware specification mentioned in Annexure-S9A Sl. No 3. At this stage no software licenses will be procured. Team Criteria NIL Responsibility of SI Responsibility of HAL Responsibility of OEM 1. Supply and Installation 1. Acceptance certificate of Training Server with 25

26 Base ERP Product. 2. Getting acceptance certificate from ITSS Phase Deliverables The deliverables for this phase shall include infrastructure and signed off documents covering but not limited to the following: 1. Composition of various teams/ committees with roles and responsibilities. 2. Equipped Project Office 3. Approved Project Charter 4. Training Strategy Document 5. Familiarization Training for the ITSS and Functional Expert Teams. 6. Specialist Training 7. Training Server setup 8. Project Management portal showcasing Project Milestones/status online. 26

27 1.8 Framework Formulation Phase The major activities / deliverables during this phase would be as follows: Business Process Study (As-is) Activity: Business Process Study (Asis) Framework Formulation Phase Scope To carry out an As-is study of existing processes of HAL. To visit all departments in the HAL Divisions considered for pilot implementation phase, interact with functional users and IT coordinators for the purpose of this study. For other Divisions, a concise study can be made on changed processes by way of brief interaction with IT Team. This Business Process Study will enable the Project Team to get first hand understanding of the business processes that will be implemented at HAL through the Integrated Solution. It would also help them understand the specific role played by each module / system in the existing ERP and identify other existing on-erp systems, which would be retained after implementation of the Integrated Solution. Team Criteria NIL Responsibility of SI Responsibility of HAL Responsibility of OEM 1. Conducting As-is business 1. Coordination by ITSS and process study for all HAL Divisions covered in pilot phase. Divisional IT heads of pilot Divisions. 2. Preparation of draft As-is 2. Sign Off by HAL Project document. 3. Presentation to HAL s ITSS, Management Team functional experts and Project management team. 4. Revision(s) by incorporating feedback. 5. Getting approval from Project Management Team 27

28 1.8.2 Technical Training on Business Intelligence Tool Activity: Technical Training on Business Framework Formulation Intelligence Tool Phase Scope This training will be of 1 week duration including architecture, modeling, Report/ KPI/ Dashboard development, Data Extraction from ERP and other systems etc. for 15 HAL personnel and will be provided by ERP OEM. Appropriate training materials and practice exercises should be provided for the team. Theorem should obtain training feedback after each session and address inadequacies if any. Note: SI need not to bear any Cost towards travel expenses, boarding, lodging etc. for HAL personnel, within India Team Criteria Team of trainers will be 100% from respective OEM Responsibility of SI Responsibility of HAL Responsibility of OEM 1. Coordinating between 1. Deputing the participants 1. Conducting BI training OEM and HAL for for the training for HAL s identified successful conduct of 2. Coordinating travel, teams. training boarding and lodging for 2. Obtain feedback from HAL personnel participants and address inadequacies, if any. 3. Providing training material to participants Business Process Transformation Activity: Business Process Framework Formulation Phase Transformation Scop e This exercise is to be led by SME (Subject Matter Experts) as per Experience mentioned under Annexure-S7 and supported by senior Team members from ERP OEM. SI will have to take approval of HAL for deputing SME as per the Annexure- S7 and other team members of BPT Team. Based on the As-is Business process study, the exercise, should identify and suggest opportunities and options for Business Process Transformation (BPT). 28

29 This BPT effort should result in Business Process Optimization across the enterprise like removal of non-value added activities, automated steps wherever applicable etc. The BPT team shall augment the findings of As-is study with best industry practices and HAL requirements, and arrive at proposed global business template. The team should provide multiple process mappings for each business activity with corresponding benefits and challenges. The team should also identify the processes which are not mentioned in the As-is document, but are required for completeness of the Integrated Solution. The team shall prepare and submit the entire end-to-end integrated business process and workflow chart with granular activities and integration of the proposed ERP solution with other applications/ systems. The team shall suggest optimum strategy for rolling out Global Business Template. The business process features available in existing IFS ERP should be made available, either as it is or with improvement in the upgraded solution. A brief listing of existing IFS ERP process is placed at Annexure-S3. In addition, Functional Requirements as listed under Annexure-S4 shall be provided in the upgraded solution. The list of the Functional requirement, at Annexure-S4 is indicative and the associated requirements are not explicitly mentioned. In addition, the solution must also cater to all the business requirements arising out of BPT stage. The functionalities which are not mentioned in the shared existing processes but are required for completeness of the optimal Integrated Solution shall form the part of the Functional Scope and have to be provided at no additional cost to HAL. It will be the part of the exercise undertaken by the BPT team to arrange for inputs through various workshops and also the buying-in for the best re-engineered solution. Adequate number of such workshops to be planned considering the size of the organization. BPT activity will focus on the following: Process Standardization and Optimization ERP Product OEM shall deploy senior business consultants along with the System Integrator project team to drive the overall business process standardization. HAL has units having various processes running, ERP Product OEM should be able to 29

30 recommend HAL on how to standardize and harmonize the business processes based on standard and global best practices available in their ERP solution. As part of these services provided by the ERP Product OEM, HAL expects ERP Product OEM to focus in following areas during ERP project implementation. Identifying potential area for standardization of business processes in the functional areas covered as scope of this implementation Preparing necessary templates and strategy for standardization and governance mechanism for sustaining the standardization process Change Management Strategy Document Identifying potential areas for optimization (continuous improvement) of ERP Software solution. Forming a systems group, for executing and maintaining the standardization program. Data migration and Cut-Over strategy. Process Simplification The BPT exercise should focus on simplification of business processes by incorporation of state-of-the-art tools like Barcode Scanners, etc. The proposed solution should ensure minimal system navigation and user clicks. This should enable HAL to reduce data capturing effort resulting in improvements in productivity, system usage and performance. A tentative list of components required to carry out the Business process simplification is indicated at Annexure S15 - Components Required for Undertaking BPT. However, these components to be supplied only after written communication from HAL on as and when required basis. Enhancement The team should identify the processes which are not mentioned in the As-is document, but are required for completeness of the Integrated Solution and to incorporate best industry practices. The suggested enhancements shall cater to the needs of all HAL stakeholders including Customers and Suppliers. Decision Support system using BI The BPT exercise should include the design of Business Intelligence (BI) landscape in HAL with capability of providing on-line information to facilitate strategic, tactical and operational decision-making. 30

31 The BPT exercise should identify &demonstrate standard KPIs used in aerospace industry. HAL shall identify additional KPIs / modification to standard KPIs, if required. The team should work in close conjunction with the HAL functional Experts to identify improvements that could be brought out through the solution and realize the same. The team shall identify the baseline/benchmark for all the KPIs, duly approved by HAL, which will be used for comparisons. The BI landscape should also include design of Dashboards and early warning systems (Alerts) catering to four levels (Board, Complex, Divisional and Operational Levels) of management. The Proactive mail/message alerts should be classified by severity of event and level of reporting for each business process. Centralization As part of the BPT exercise, the BPT team should provide master plan and methodology for centralized single instance ERP implementation with unified Master data like Parts, Suppliers, Account Codes, and Work Centers etc. This should include detailed Data Migration Strategy with type of data to be migrated and strategy for unification of code across HAL and Data Cleansing and Formatting. This shall be in line with the requirements mentioned in the activity mentioned under i.e. all master and transaction data to be migrated for seamless experience of the user. Planning Methodology The BPT exercise should particularly focus on incorporating an industry standard planning methodology aligned with the HAL corporate mission of global competitiveness and world class performance standards. This planning methodology should enable HAL to execute MRP for different intervals to arrive at Purchase/Production plan, configure Production Schedule, and daily/weekly/monthly work center wise loading plan with rescheduling features. Integration with other Applications Over the years, HAL has developed/procured various application systems to support its business. These systems provide certain business benefits to HAL, which HAL intends to improve from the proposed solution. Indicative list of applications is given in Annexure-S8.BPT Exercise will device action plan for integration of such system with proposed solution, to derive the best business benefits. 31

32 In cases where data has to be transferred from IFS to another application, SI shall ensure availability of required data as per mutually agreed formats/mechanisms such as CSV, XML, web services etc. In cases where data has to be transferred from other applications to IFS, HAL shall ensure availability of required data as per mutually agreed formats/mechanisms such as CSV, XML, web services etc. and SI shall ensure the transfer of data to IFS.SI shall provide appropriate middleware/ monitoring mechanisms to ensure uninterrupted data transfer across the platforms. SI shall develop necessary integration scripts, with support from HAL, required for integration of existing applications like Divisional Production/Finance/IMM/HR Dashboards, e-procurement integration, MAT/PAR, PLM etc. with the newly implemented solution to ensure un-interrupted services for end users. Proposed Global Business Template to be arrived after Multiple level discussions across the functional experts and users of Harland shall cover the following: Multiple process mappings (based on practices followed by Aerospace Companies in supply chain, manufacturing, planning, MRO etc. and practices followed by Maharatna Companies in the areas of Materials Management, Finance, HR etc.) for each business activity with corresponding benefits and challenges, including detailed process map for required enhancements to meet the Broad Expectations and fill gaps. KPIs to be measured and monitored at various levels for each business process Detailed Data Migration Strategy for consolidation of data (Master & Transactional) across HAL Divisions. Strategy for unification of codes across HAL as appropriate. Strategy for Data Cleansing and formatting. Mapping of Overall Organization structure in the Integrated Solution Mapping of proposed Business processes to Integrated Solution capabilities/features Definition of parameters for system configuration. Details of Customizations to be done. Proactive mail/message alerts classified by severity of event and level of reporting. 32

33 Details of reports - standard and customized with templates. Details of applications integration approach Defining reports from the system leading to adherence to Governance and Risk Compliance (GRC) Norms and Enterprise level Integrated Financial Parameters. The BPT team will make presentations about proposed business template to HAL s Functional Experts Team which will select the process to be implemented out of the multiple process mappings suggested. After incorportaing the suggestions, BPT team will make presentations to the following HAL teams: (1) Divisional COMs (Committees of Management) of pilot Divisions (2) Complex COMs (For Divisions other than pilot Divisions). After incorporating the suggestions of the above HAL teams, BPT team and Functional Experts Team will present to CAB the policy changes required for implementing the processes identified in Propsed Global Business Template. After incorporating suggestions by CAB, the proposed business template will be signed off by HAL functional experts team. Team Criteria BPT Team will comprise Subject Matter Experts as per Annexure-S7 and remaining resources from ERP OEM. Responsibility of SI Responsibility of HAL Responsibility of BPT Team 1. Co-ordination 1. Provide strategic 1. Carry out Business between HAL and direction and necessary Process Re-engineering. BPT team. support to BPT team. 2. Sign-off and co-ordination 2. Prepare Proposed Global Business Template. by Functional Experts. 3. Presentation to HAL Functional experts team 33