By Wesley Gordon,2014-04-29 02:32
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    Merloni TermoSanitari



Merloni TermoSanitari ( Wuxi ) Co., Ltd.

    BPCS System Implementation Project

    Phase II

    Proposal for Providing Professional Services

    December 15, 1998

Merloni TermoSanitari

    Table of Contents 1. PROJECT BACKGROUND 3






    Appendix A Standard Terms and Conditions

    Appendix B Curriculum Vitae of Project Team Members


    Merloni TermoSanitari

    1. Project Background

Merloni TermoSanitari (Wuxi) Co., Ltd. (“MTSW”) is a wholly foreign owned

    investment entity of Merloni TermoSanitari Group (MTS) in which MTSW is

    engaged in the manufacture and sale of high quality electric water heaters.

In order to enhance MTSW’s management system efficiency and be compatible with

    MTSW’s headquarters' existing system, MTSW plans to implement BPCS

    Distribution, Financial and Manufacturing modules phase by phase. Phase I

    Distribution Module started in June, 1998 and Arthur Andersen was engaged to

    provide implementation support services. Phase I successfully went live in

    November. For phase II - Finance Module. MTS expects the project to be

    implemented in early December and go life by July 1, 1999, when starting operation

    in the new plant. In this regard, MTSW intends to still retain AA to support Phase II


    2. Project Objectives and Scope

The objectives of the project - Phase II can be specified as follows:

    ? Implement BPCS Finance Modules as specified below with necessary


    ? Develop relevant business operation policies and procedures to enhance

    the finance management system;

    ? Provide BPCS system training to end users;

    ? Obtain accounting software certificate approved by local Finance Bureau

According to our understanding with Mr. Mario Cioccolo, MTS IT Manager, the

    second phase of BPCS implementation will cover the following modules:

    ? Accounts Payable

    ? Accounts Receivable

    ? Configurable Enterprise Accounting

    ? Currency Translation

    ? Multiple Currency Translation


    Merloni TermoSanitari

    3. Project Approach

Based on the methodology of BASIS, requirements and implementation schedule of

    MTSW, below is the summary of key tasks to be performed:

    Steps Detail Objectives Key Tasks Perform

     By 1. Project Identify areas need to be AA ? Detail and finalize the project’s

    Definition complied with Italy objectives, scope, administrative roles

     Headquarter’s requirements and responsibilities, timing and training

    and procedures schedule

    Identify areas in the system AA

    design need to be complied

    with local finance and

    accounting rules &


    Prepare Project Definition AA

    Memorandum and Training



    ? Project Definition Memorandum

     ? Training Plan

    2. Implementation Analyze Italy Headquarter AA ? Identify required changes to software Preparation Prototype and business processes

     ? Obtain agreement on all required

    Analyze current operation AA changes

    and requirements ? Design all changes Benchmark against Global AA

    Best Practices Database and

    prior engagement

    experience, if necessary AA

    Conduct Prototyping with AA

    reference to Italy Headquarter


    Prepare New Business System AA


    Prepare Requirement AA

    Definition Report


     ? New Business System Map

    ? Requirement Definition Report


    Merloni TermoSanitari

    Steps Detail Objectives Key Tasks Perform

     By 3. Explain to the end users on AA Improvement the new business processes ? Make all required changes to business

    And processes

    Confirmation Support to resolve issues AA/ ? Make all required changes to BPCS

    during new business process MTSW software

    implementation ? Approve all changes

    Work with MTS to supervise AA/

    customization progress * MTSW

    Perform customization testing AA

    Design reports formatting, if AA/

    necessary * MTSW

    Conduct Conference Room AA/

    Pilot MTSW


     ? Approved new system

    4. Implementatio? Ensure the readiness of procedures, Conduct End User Training AA n personnel and data Workshop

     ? Convert static and variable data to the

    new system Prepare data and System AA

    ? Cut-over to the new system Conversion Plan

    Resolve data conversion AA

    issues and test converted data

    Prepare Cut-Over Readiness AA


    Monitor cut-over and resolve AA

    cut-over issues


     ? End User Training Workshop

    ? System Conversion Plan

    ? Cut-over Readiness Checklist

    ? New System Operating

    5. Review the implementation AA New ? Evaluate the Effectiveness of the New progress of new system System System Operation ? Assist MTS Wuxi in obtaining the Identify possible major AA

    Accounting Software Certificate from implementation problems

    the local Finance Bureau

     Recommend further AA


    Arrange New System AA

    Evaluation Meeting

    Prepare data and documents MTS

    required for approval

    Assist MTS to get the AA

    approval **


    ? New System Evaluation Meeting

    ? Approve from Local Finance/Tax



    Merloni TermoSanitari

    * AA will arrange Program Customization with program subcontractors for MTS


**AA will perform the following detail tasks:

    - Hold discussion with project team the arrangement and preparation of

    the financial bureaus approval meeting;

    - Review the approval documentation prepared by MTSW;

    - Manage the status of the approval procedures;

    - Attend financial bureaus approval meeting in order to facilitate the

    approval procedures.


    Merloni TermoSanitari

    4. Project Team Organization

Project Organization

As the success of this implementation project requires significant commitment of

    MTS management and employees, we propose the following project team


     Project Steering Committee

    MTS Senior Management AA Project Director Norman Sze

    Internal Project Manager Project Management MTS Designated Personnel AA Project Manager

     User Representative and Functional and System

    System Support Consultants MTS Key Users AA Consultants

? The Project Team will consist of personnel from both Arthur Andersen and MTS


? The Steering Committee will take responsibilities of authorization, direction,

    resource assurance, and quality control.

? The project director from MTSW, project manager and consultants from Arthur

    Andersen will work together to manage project activities, resources allocation,

    and resolving project issues.

? The project team will also include at least one user representative from each

    business function within the project scope.

? The key users must be familiar with business processes of their responsible

    business function(s), and have authorities to authorize changes in business

    processes as a result of this project. The key users will also be responsible, with

    the assistance from Arthur Andersen consultants, for training end users of their

    responsible business function(s).

? Software vendor will provide technical services on solving system bug and data




Merloni TermoSanitari

5. Time Schedule and Estimate of Resources Requirement

Based on our understanding of your needs and our initial work plan, we estimate that the project duration will be approximately 6 months

    to complete the tasks described above. A high-level work plan by project steps is presented below.

    98,12 99, 1 99, 2 99, 3 99, 4 99, 5 99, 6 99.7 99.8

    1. Project Definition

2. Implementation


3. Development and


4. Implementation

5. New System



Merloni TermoSanitari

    Key Assumptions:

    ? MTSW’s senior management is committed to support our implementation and solve

    any issues during the project in a timely manner;

    ? MTSW will assign a full-time project manager, and he will be fully delegated to the


    ? The key users and end users will be available when the training is conducted;

    ? With the supervision from Arthur Andersen, MTSW will be responsible for the

    preparation and input of data;

    ? MTSW will be required timely sign-off the deliverables developed during the

    implementation on critical milestones;

    ? We understand that MTSW do not require major modification on BPCS system. If

    modification is needed, we will discuss with MTSW and prepare a separate fee


    ? Since the license agreement is signed between SSA and MTSW, SSA will undertake to

    indemnify MTSW in all matters concerning licensing rights and third party liability

    regarding the use of the package. In addition, SSA will provide assurance that BPCS

    V6.0 is year 2000 compliance


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