2014

Innovation to Consulting
(Pvt.) ltd



[SCOPE OF WORK]
The Scope of work against RFP for the implementation of SAP ECC MM Module in Almas Group

Scope document
MM Implementation Almas Group Page 1


Contents





1.1 Scope ......................................................................................................... 2
1.1.1 Geographical and Language Scope ............................................................. 2
1.1.2 Organizational Scope ................................................................................ 2
1.1.3 Solution/Module Scope ............................................................................. 2
1.1.4 Project Methodology: ................................................................................ 3
1.1.5 Functional/Process Scope .......................................................................... 4
Post Go-Live support scope ................................................................................. 8
Security and Authorizations Scope ....................................................................... 8
Design & preparation of test script, test data, trial run and arranging acceptance
testing, of MM Module. ...................................................................................... 8
Prepare and supply User/Operation Manual for smooth and trouble free operation
in the system. ..................................................................................................... 8
1.1.6 Project Time line ...................................................................................... 8
1.1.7 Pricing Details .......................................................................................... 9
















Scope document
MM Implementation Almas Group Page 2

1.1 Scope

The SAP MM Module will be a single unified procurement system for Almas Group and the
solution should be a completely integrated available of-the shelf ERP product. The System may
have the required depth and flexibility to provide on-line information access to all the designated
users who will operate the respective business processes. The main system and database will be
residing in the Data center in the Head Quarter, Karachi. The general scope of the proposed MM
Module is as follows:
1.1.1 Geographical and Language Scope

- The Project will be executed from Karachi, Pakistan
- Only one (1) currency will be tested within the solution, that being <PKR>.
- The solution in MM will display all business data in English only
- Only one application language will be tested within the solution, that being English.

1.1.2 Organizational Scope
Innovation to Consulting will configure or implement as part of this Implementation:


Three plants, one for each location.
Three storage locations, one for each plant.
One purchasing organization.

1.1.3 Solution/Module Scope

Materials Management (MM)

Organization Structure
Material Master Data
Vendor Master Data
Quotation for Procurement


MRP (CBP)
Consumable Purchasing
Subcontracting






Scope document
MM Implementation Almas Group Page 3

1.1.4 Project Methodology:
The methodology which we will be using for implementation of this project is ASAP
(Accelerated SAP). ASAP is SAPs content reach project management methodology for
assisting with the implementation and/or upgrade and / or rollout of SAP solutions across
industries and customer environments. This has been built on SAPs experience in thousands of
SAP projects, ASAP provides content, tools, and best practices that help consultants, partners
and customers to deliver consistent and successful results across industries and environments.
The processes involved in ASAP are as follows:








Benefits of ASAP
o Reduced total cost of implementation through streamlined and modular
implementation roadmap that provides content rich implementation accelerators,
templates and guides
o Industry standard aligned project management process and guidelines
o Achieve transparency of value delivery through consistent business case
reflection
o Enables efficient project governance and quality management
o Extends across all aspects of the solution life-cycle; from strategic reviews and
analysis, to design, implementation, training and post project support
o Drive combined Business Process and IT Architecture approach (E2E)
o Covers entire project life-cycle from evaluation through delivery to post project
solution management and operations



Conduct initial
planning and
preparation; def ine
project goals, scope,
and objectives;
identif y and train
team members
Map value drivers to
implementation
scope; ref ine
business
requirements;
document the to-be
processes; def ine
f unctional solution
design; identif y added
f unctional, technical
requirements; get
business sign-of f on
requirements/design
Build and test a
complete test and
business
environment; develop
training material and
user manuals; obtain
business approval
Prepare system f or
production release;
migrate/cut over data;
execute training; and
prepare the
organization
internal/external)
f or Go-Live
Execute new systems
and processes;
monitor business
process results, and
monitor the
production
environment; build
Center of Excellence
f or support and
enhancements
Run the new
system; apply
additional SAP
operations
standards to
optimize
system
operation
Run Project
Preparation
1
Blueprint
2
Final
Preparation
4
Realization
3
Go-Live
Support
5 6
Ensure the delivery of value throughout the solution life cycle (Value Delivery)

Scope document
MM Implementation Almas Group Page 4

1.1.5 Functional/Process Scope
Procure to Pay (Materials Management)

Business Process Business Process Details
Procure to Pay
RequestedProcesses
(Materials
Management)

1. Consumable Purchasing (129)

Purpose
Purchasing of consumable goods or services
Benefits
Possibility of quick one-time-purchases: Material
consumption is directly posted, no posting into storage
Use of service entry sheets as inspection report of
performed services
Key process flows covered
Purchase order creation for consumable goods
Approval of purchase orders for consumables
Goods receipt of consumables
Purchase order creation for services
Service entry sheet creation
Service entry sheet approval
Invoice receipt by line item
Period-end plant

2. Subcontracting (138)
Purpose
This scenario covers the handling the subcontracting
process, necessary adjustment of inventory issues and
receipts.
Benefits
To monitor the goods with the vendor
To find that which subcontracting has what quantity of
material
To manage and valuate components with vendor and
finish goods
Key process flows covered
To transfer the goods to the subcontracting vendor.
To create Subcontracting PO and assign components to
Subcontracting vendors
To receive finish goods from subcontracting vendor
against the PO




Scope document
MM Implementation Almas Group Page 5

3. MRP (Consumption Based Planning)
Purpose
This planning procedures use past consumption data
(historical data) to calculate future requirements with the
help of the material forecast or static planning procedures.

Benefits
Reorder Point Planning
Forecast-Based Planning
Time-phased planning
Key process flow covered
Planning Run
Supply Source Determination
Contract Processing
Planning Workbench
Order Optimizing
Purchase Order Monitoring
Vendor Evaluation
Requirement Planning
Cross Function

SAP ERP reports for Logistics MM

List Display of Purchase Requisitions
Stock Overview
Outbound Delivery Monitor
Purchase Requisition per Account Assignment
Purchase Orders by Account Assignment
Quotation List
General Analyses: Purchase Quotation
Analysis of Purchase Order Values
Purchase Order by Material
Purchase Order by Vendor
Purchase Order by Document Number
Purchasing Group Analysis
Release Purchasing Documents
Assign and Process Purchase Requisitions
Material Document List
Display Warehouse Stocks of Material
Accounting Documents for Material
Material Documents with Reason for Movement
Availability Overview
Plant Analysis
Material Analysis

Scope document
MM Implementation Almas Group Page 6

Functional Assumptions
MM Functional Assumptions
Standard functionality of SAP MM with minimum custom changes mostly in Forms &
Reports
Only required MM transactions will be entered in SAP ECC
Required MM Master data will be created in SAP ECC
If online transfer of Data between SAP and other third party systems is compulsory then SAP
SRM has to be assessed by a SRM consultant since it will be required. This will be at an
additional cost and will be treated as a Change Request.
User departments shall create their own Purchase Requests.
One centralized purchasing organization.
Maximum up to three Plants for storage and distribution

Technical assumptions

A 3 system landscape of Dev-QA-Production is assumed.
Almas Group will provide required hardware and software to start the project on time.
All Workflows, non-standard Reports, Interfaces, Conversion programs, Enhancements and
Forms (commonly specified as WRICEF) that are not specifically mentioned in the scope
above are not part of this proposal. Requirements and efforts associated with this will be
defined during the Scope Validation phase, and estimates for such submitted to Almas Group
for approval under the Change request process.
In addition, Almas Group will be responsible for:
o Data cleansing of legacy data
o Data extraction from non-SAP systems, conversion, cleansing & validation
o Collation and cleansing of any master data for migration into the SAP systems
o Filling of the Data
o Validation of data uploaded into the SAP systems
ALMAS GROUP is required to maintain ALMAS GROUP backups, i2Cs consultants will
depend on ALMAS GROUPs executed backup and the prompt execution of the restore by
ALMAS GROUP. i2C will not be responsible for any issue arising out of ALMAS GROUPs
backup problems
ALMAS GROUP will provide expert resources to modify their legacy systems for interface
to i2C. i2C will not modify ALMAS GROUPs legacy systems. ALMAS GROUP will write
all legacy programs required for extraction, interfaces or conversions.
ALMAS GROUP will inform Innovation to Consulting project management, as and when it
intends to change, modify and upgrade the hardware, Operating System, Application
software both from SAP as well as non-SAP systems that are directly or indirectly linked to
the project. Any delays within the project timeline resulting due to the aforementioned
activities will be deemed chargeable and dealt with via the change request process.

Scope document
MM Implementation Almas Group Page 7

ALMAS GROUP will provide appropriate technical support to the i2C installation team
Installation of SAP ERP 6.0 would be performed for a 3 system landscape.
Post Installation Configuration.
Applying Kernel and Support Packages to the above systems.
Optimize SAP technical system parameters (system tuning)
Maintain SAP system profile parameters (determines technical configuration at system start-
up)
Identify & configure SAP Marketplace technical
Document and maintain project transport request & execution procedures
Perform & Troubleshoot transport errors related to the technical/architecture failures
Scheduled application of SAP Notes / Corrections during project execution.
Printer configuration in SAP.
Post go-live support for the agreed period
Performance tuning/optimization based on recommendations by SAP Support
Security design & creation of authorization matrix based on identified requirements.
As far as possible usage of SAP standard roles and creation of mandatory new roles and
authorization based on authorization matrix
Creation of users provided by the ALMAS GROUP.
Assignment of roles to user.
Support during security/roles testing

Technical exclusions
Anything which is not explicitly included in deliverables would be considered as excluded
from scope
Any activity on OS and Hardware related items.
Interfacing with third party partners
Integration and Connectivity Tests
Volume and Stress Tests
System copy activities are excluded.
Backup and restore is excluded.
SAPGUI & NWBC deployment on workstations is excluded.
The set-up of Run SAP Operations
Installation of SAP systems as part of DR setup is excluded.
High Availability / Disaster recovery related configuration is excluded



Scope document
MM Implementation Almas Group Page 8

Post Go-Live support scope
Post Go-live support until the system is fully updated and support outside the Scope of this
Implementation can be provided against a separate agreement.
Go-Live run of SAP MM module at Head Quarter, Karachi with real-time data. Roll out of the
System to the Karachi, Lahore and Islamabad. Stabilization of the System at all the locations.
Security and Authorizations Scope
- Following roles will be delivered as per ECC standard MM area
Warehouse Clerk
Purchaser
Purchasing manager
Warehouse manager
MRP Controller Deliverable
Design & preparation of test script, test data, trial run and arranging acceptance testing,
of MM Module.
Prepare and supply User/Operation Manual for smooth and trouble free operation in the
system.


1.1.6 Project Time line

Month Aug-14
Days Day 1 Day 2 Day 3 Day 4 Day 5 Day 7 Day 8 Day 9 Day 10
Project
Preparation
Business
Blueprint



Realization
Final Preparation
Post Go Live
Support







Go Live

Scope document
MM Implementation Almas Group Page 9

1.1.7 Pricing Details
Innovation to Consultings proposal includes indicative estimates for the implementation
of SAP Materials Management Module and Engineered Services where possible and keeping
customization to a minimum. Following is the breakup of total project cost.


Resource
Designation Skill level
Wage rate
per hour Total

Services Cost
Project Manager Expert 15,000 1,200,000

Installation 1,100,000
Project Support
Team Lead Expert 13,000 1,040,000

Configuration 1,000,000
Principal MM
Consultant Expert 11,500 920,000

Integration 950,000
Sr. BP Integration
Consultant Proficient 10,000 800,000

Data migration 650,000
Sr. MM/Technical
Consultant Proficient 9,000 720,000

Testing 750,000

Total
PKR
4,680,000

Documentation 185,000

Total
PKR
4,635,000


Total Cost of
Implementation
PKR
9,315,000


The total price for this project is 9,315,000.00 PKR (Nine million three hundred and fifteen
thousand Pakistani Rupees only).
This fee is based on a Fixed Price Project (FPP) implementation.