Technical & Commercial Proposal

for
Process Documentation

at

Poddar Tyres Ltd

Ludhiana

March 2018

ARR Services PVT. LTD. Former Name( ARR Energy Pvt Ltd.)
905A,B-08 GD-ITL Tower Netaji Subhash Place New Delhi-34
 AS-IS & To-Be document for SAP implementation PROPOSAL

www.arrservices.in

© ARR Services Page 2 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

Confidentiality Statement

The content of this document shall remain the confidential property of ARR Services Pvt. Ltd. (Herein
after will be referred as ARR Services) and may not be communicated to any other party without prior
written approval from ARR Services. This document must not be reproduced in whole or in part. It must
not be used other than for evaluation purposes only by Poddar Tyres Ltd. except with the prior written
consent of ARR Services and only on condition that ARR Services and any other copyright notices are
included in such reproduction. No information as to the contents or subject matter of this Proposal or
any part shall be given or communicated in any manner whatsoever to any third party without the prior
written consent of ARR Services.

The furnishing of this document is subject to proposal and shall not be construed as an offer or as
constituting a binding agreement on the part of ARR Services to enter into any relationship. ARR Services
provides this document as guidance only to estimate costs and timelines of the predicted delivery
project. This will be subject to confirmation prior to any proposal or delivery commitment by ARR
Services.

ARR Services warrants that to the best of its knowledge, those who prepared this Proposal have taken all
reasonable care in preparing it and believe its contents to be true as of the date of this document.

ARR Services cannot however warrant the truth of matters outside its control and accordingly does not
warrant the truth of all statements set out in this document to the extent that such statements derive
from facts and matters supplied by other persons to ARR Services .The statements in this document are
qualified accordingly.

Any services to be provided by ARR Services as proposed in this document shall be subject to the
standard terms and conditions of ARR Services for the provision of the relevant services.

© ARR Services Page 3 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

Table of Contents

1.0 Executive Summary.......................................................................................................................4

2.0 Statement of Scope.......................................................................................................................6
3.0 Proposed Methodology...............................................................................................................12
4.0 Project Assumptions....................................................................................................................13
5.0 ROLES AND RESPONSIBILITIES – ARR SERVICES............................................................................16
6.0 PROJECT MANAGEMENT..............................................................................................................18
7.0 Project Schedule...........................................................................................................................21
8.0 PROJECT COMMERCIALS...............................................................................................................22

© ARR Services Page 4 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

1.0 EXECUTIVE SUMMARY

ARR Services Consulting Ltd. (referred to as ARR Services) is thankful to Poddar Tyres Mills (referred to
as BEDROCK) for giving us an opportunity to give a proposal for the As-Is & To-Be Document of their
SAP instance to the Tyre Plant . We are pleased to submit a proposal for the same.

About BEDROCK
ARR Services had a series of discussions with BEDROCK to understand
the scope and deliverables of this project and we state our
understanding as follows:
a. BEDROCK is planning to go on SAP S/4hana
b. BEDROCK wants document of their process whether it is on
Legacy system or manual. Even they are agreeing to adopt
best practices for their manual process like plant
maintenance and other modules.
c. BEDROCK wants to continue his sales part on legacy system and integrate with SAP.
d. BEDROCK wants proper document for their PP & QM in this project.

PODDAR TYRES LIMITED IS AN ISO 9001:2008 CERTIFIED COMPANY,

MANUFACTURING BICYCLE, CYCLE RICKSHAW, TWO & THREE WHEELERS’
TYRES & TUBES, UNDER ITS RENOWNED BRAND – “BEDROCK”.

“BEDROCK”, a renowned brand nationally & internationally being manufactured & marketed for the past over 50
years. Our over 5 decades of expertise, continued focus on adding brand value through innovation & superior quality
has made “BEDROCK” one of the most trusted & preferred brand with more than 700 million smiling consumers
across the globe. We have a very strong network of over 10,000 dealers, serviced through 52 sales offices spread
across the country. We enjoy over 11% domestic market share.

We are major suppliers to some of the largest Bicycle manufacturers (OEMs, Hero, Avon, Tata etc.) in the world.
“BEDROCK” Tyres, Tubes & Bicycle Components, manufactured to meet the International Quality Standards at its
state-of-the-art manufacturing plant having fully computerized testing facilities backed by a strong R&D and stringent
Quality Control, have found a wide acceptance in the global market

© ARR Services Page 5 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

About ARR Services

ARR Services’s SAP Practice is made up of experienced SAP professionals. They have successfully
delivered various solutions to a number of medium & large customers in India and abroad. Over the last
years have been efficiently delivering value to its clients.

 Established in 2013
 SAP and Beyond services
 Recognized as quality solution provider with in ecosystem
 Demonstrated and proven SAP expertise in implementation, support and enhancement projects
by providing quality service in cost effective manner.

© ARR Services Page 6 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

2.0 STATEMENT OF SCOPE

Location: Process Documentation for one Plant at single location Ludhiana (Punjab) – India

*Whether BEDROCK should go for SAP implementation or not.

2.2 Solution Objectives

 Financial and operational procedure streamlining & effectiveness.

 Real time access to information and to ensure efficient, transparent decision making
 Improved operational efficiencies by process re-engineering and automation.
 Reduction of inventory, consumable & logistics costs through Supply chain optimization
 Avoid duplication of effort & accuracy and timeliness of management information.
 Build accountability for performance across organizational levels

2.3 Business Benefits

The typical business benefits that would come from the SA) implementation for Company are:

 Unified ERP platform

 Reduction in manual effort and duplication of data
 Standardization of processes
 Integrated business view
 Transparency and efficient procurement cycle
 Integrated Production operations with stores, quality, maintenance & sales

2.4. SAP Module Scope

a. Financials Controlling (FICO)

b. Sales & Distribution (SD)
c. Materials Management (MM)
d. Production Planning (PP)
e. Plant Maintenance (PM)
f. Quality Management (QM)
g. Interface with non-SAP systems

© ARR Services Page 7 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

Finance & Controlling

Integrated view of Finance:

Integrated view of Controlling:

Finance & Controlling  Profit Center and Cost Center Accounting

 General Ledger  Executive Information System Foreign
 Accounts Receivable Trade Import Processing
 Accounts Payable  Revenue Planning
 Period End Closing Financial Accounting  Purchased Material Price Planning
 Credit Management  Product Costing

© ARR Services Page 8 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

 Cost of Sales Accounting  General Cost Center Planning

 Asset Accounting  Manufacturing Cost Center Planning
 Asset Acquisition through Direct  Standard Cost Calculation
Capitalization  Overhead Cost Accounting Actual
 Asset Acquisition for Constructed Assets  SAP ERP Reports for Accounting
(Investment Orders)  Period-End Closing Activities
 Activate Document Splitting  Value Added Tax analysis and Reporting
 Segment Reporting  Excise and Taxation
 Business Planning and Annual Budgeting  Profitability Analysis
Treasury

Business Planning & Budgeting

 Budget management
 Annual operating plans/budgets for production, sales, electricity, salt, manpower and other such
business specific parameters
 Reports to compare plan vs actual for budgetary parameters

Sales and Distribution

Integration with legacy system

Material Management

 Purchasing
 Inventory Management  Stock Handling: Scrap and Blocked Stock
 Logistics Invoice Verification  Procurement Contract
 Physical Inventory  Stock Transfer with Delivery
 Material Valuation  Stock Transfer without Delivery

© ARR Services Page 9 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

 Material Requirements Planning (MRP)  Return to Vendor

 External Services Management
 Batch & Serial Management
 QM for Procurement with Vendor
Evaluation
 Quotation for Procurement
 Import procurement & Custom Clearance
 Consumable Purchasing
 Procurement without QM
 Masters Creation
 Supplier Registration & Performance
Monitoring
 Purchase Enquiry / Quotation /
Comparison
 Purchase Order Preparation & P.O.
Scheduling & Vendor Finalization
 Indent Management
 Sourcing
 Subcontracting
 Physical Inventory / Inventory Count and
Adjustment
 Procurement and Consumption of
Consigned Inventory
 Inventory Valuation for Year End Closing
 SAP ERP Reports for Logistics
 Material Gate In
 Stores Receipt Note (SRN) & Goods
Receipt Note (GRN)
 Purchase Bill/ Service Bill/ Shipment Bill
Passing & Vendor Valuation
 Work Order & Service Order / Follow-up &
Review
 Material Issue / Return & Warehouse
Management

Production Planning

 Material Master, Bill of Material, Routing  Production Orders

and Work Center data  Make-to-Stock Production - Discrete
 Sales and Production Plans Industry
 Long Term Planning  Repetitive Manufacturing
 Demand Management  Rework Processing (Stock-Manufactured

© ARR Services Page 10 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

 Material Requirements Planning (MRP) Material)

 Capacity Requirement Planning  Goods Movement
 Shop Floor  Engineering Change Management

Quality Management

Scope of implementation will cover following processes under Plan to Product and Intercompany
Processes segment:

 Quality Check
 Quality Planning
 Quality Inspection
 Quality Certificates
 Quality Notifications
 Quality Control
 Process Inspection
 Compliance Reporting
 Batch Management
 Test Equipment Management

Plant Maintenance

Scope of implementation will cover following processes:

 Preventive Maintenance planning

 Regular & Breakdown Maintenance
 Maintenance Orders / Work Orders

© ARR Services Page 11 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

 Spare parts Inventory management

 Notifications
 Equipment Calibration
 Settlement
 Service history tracking
 Equipment unplanned downtime reports

SAP Interface with non-SAP systems

 Two Way Integration with Sales.

 One Way Integration Weighbridge Interface.

The responsibilities for ARR Services are clearly identified as carrying out:

 Project Management
 Project Preparation including a Boot Strap Workshop
 As-is To Be Documents

The proposed solution approach is different from the conventional methodologies followed by other
solution providers as it takes into consideration the current state of IT readiness and user maturity with
respect to use of automated business process platforms.

ARR Services proposes as follows.

 Boot Strap Workshop to prepare the users for the forthcoming implementation by orienting
them to the way automated business platforms work and changes that it will bring about.
 Assured success of the project by committed user participation
 Scheduled deployment of the resources from the business so that the business activities do not
suffer.
 Top management training and orientation program on how to drive performance and increase
efficiency by leveraging the outputs as documents.

Deliverables Responsibility
Project Charter ARR Services/ Poddar Tyres
Project Plan ARR Services/ Poddar Tyres
Revalidation of Project Scope
ARR Services/ Poddar Tyres
Project Team Organization
ARR Services/ Poddar Tyres
Standards & Procedures ARR Services
Broad Functional Scope/requirement Gathering ARR Services
To-Be Processes ARR Services/ Poddar Tyres

© ARR Services Page 12 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

3.0 PROPOSED METHODOLOGIES.

3.1.1.1 Key Activities:

Purpose :

 Initial Planning and Preparation

 Define the project goals, scope and objectives
 Identify and finalize, on-board and train Team Members

3.1.1.2 Deliverables:
 Project team organization, staffing and logistics

 Participate in Project Scoping

 Define Rollout Strategy
 Costs and Benefits Validation
 Set Project Standards
 Prepare Knowledge Transfer Approach

3.1.1. 3 Mile Stones and Key Decisions

 Corporate Review Completed
 Scope Defined
 Project Team Staffed
 Project Team Organization, Responsibilities and Location
 Key Stakeholders for Communications Identified

Critical Success Factors

 Clear Vision.
 Involvement of Bedrock Team with dedication.
 User acceptance strategy
 Data conversion strategy

Deliverables Responsibility
Project Kick off Meeting ARR Services/ Poddar Tyres
Internet Connectivity
Poddar Tyres
User with relevant Module
Poddar Tyres

© ARR Services Page 13 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

© ARR Services Page 14 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

How will ARR Services achieve maximize the quality of the s delivered?
Since a reference system is already available for limited work in the organization.

GAP  FIT  DOCUMENT

The most critical of the above roadmap would be Gap and Fit into standard practices. This document
serve more or less 80% purpose for the same.
The commencement of the GAP phase will be decisive in determining a successful outcome for the
project. Decisions taken in this phase determine the scope and complexity of subsequent project
activities, and therefore can have a disproportionate impact on the overall project outcomes. At ARR
Services we recognize the critical role of this initial phase and are confident that our unique approach to
the Gap & Fit analysis will set the project up for success.

 Week Zero: Through “Week Zero” ARR Services will commence Project preparation, including
Project Planning, PMO set-up, Team Mobilization, establishment of key accelerators and
planning for collaborative partner workshops. These activities are necessary to provide a
running start on “XXXX-DATE”.

 Rapid Start Workshop: A professional facilitator will run a session to align project team leads
across the Project management disciplines and create a shared vision of what delivery success
looks like. It will create clarity, consistency and consensus on the project approach.

 Key Business Requirements (KBR): ARR Services will facilitate a KBR workshop to identify KBRs.
These KBRs will provide insight on how to allocate design effort to maximize business benefit.
This clarity of priority will be a valuable input to meeting the project schedule.

 Reference Solution Delivery Methodology: Reference Solution for BEDROCK is the

stabilized functional system that will be adopted by BEDROCK . The approach would be
use the already configured processes and modify / add processes as per the KBRs and
making minimal customization in future. All existing documents will be used to create
the project related documentation such as Business Blueprint.
 It saves time and ensures consistency and adherence to standard functionality. This is
SAP best practice. In addition to bringing innovative and proven methods and tools to
achieve vital and timely success in the rollout phase, ARR Services is uniquely positioned
to address the key project risks of data and testing. 4.0 Project Assumptions

4.1 General Assumptions:

The following assumptions, dependencies and constraints are being observed for this engagement:

Knowledge Transition for 2 weeks is planned at Client location. All Documents and related knowledge of
Poddar Tyres template processes to be shared with ARR Services during this period

Poddar Tyres SAP Template Business Process Documentation, BPML, Guideline documents, Functional
Specification, technical specification documents for each RICEF and Blueprint document to be shared
with ARR Services during the KT phase

© ARR Services Page 15 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

Clarification on Basis activities / scope for ARR Services will be taken care by Client Core team.

Our assumption is that, the GST related configurations will be implemented from scratch

Blueprint document of enterprise template will be made available to ARR Services project team before
start of KT phase.

It is assumed that the business processes as configured in Template will be rolled out to Client as-it-is.

It is assumed that Client’s business users will adapt to the Template processes.

Only mandatory localization requirements will be implemented from scratch.

ARR Services need to understand that which of the following processes are already part of template and
whether require to-be re-implemented.

 GL Accounting
 Accounts payable
 Accounts receivable
 Asset Accounting
 Bank Accounting
 Cost center accounting
 Cost element and Order accounting
 Product costing accounting
 Profit center accounting
 Profitability Analysis
 Purchasing
 Physical Inventory
 Logistics Invoice Verification based
 Consignment Stock
 Sub-Contracting
 Lean Warehouse Management
 Functional Location
 Shipping
 Consignment stock
 Billing
 Quality Inspection and Rejection

4.2 Project Management Assumptions

 Licensing for any third-party software / tool necessary for the project implementation would be
provided by Poddar Tyres Mill-Caustic Soda Unit

 Project schedules, tasks, costs, and deliverables are based on our current understanding of the
project scope and objectives.

© ARR Services Page 16 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

 Poddar Tyres will review, accept and sign-off on the deliverables within a reasonable time frame
so as not to impact the projected time and cost of the project [i.e. Sign-off should be completed
within three business days from submission beyond which it would be deemed as accepted.

4.3 Dependencies

Meeting Implementation deadline is dependent upon

 Availability of develBedrockent environment and connectivity

 Availability of Documentation of Enterprise Template and knowledge transfer to ARR Services

team

 Details and accuracy of requirement/technical specification from on-site team

 Timely feedback on user acceptance testing

 Timely sign-offs for project deliverables

© ARR Services Page 17 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

5.0 ROLES AND RESPONSIBILITIES – ARR SERVICES

ARR
Services

 The project manager has overall responsibility for the successful completion
Project
of the project. The project manager is responsible for the coordination of the
Manager activities occurring at various locations. The project manager is the primary
liaison with the project sponsor and business users.

 The Project Managers (PMs) own the project deliverables and are responsible
for day-to-day project management. The PMs must proactively anticipate
project deviations and be responsible for taking immediate corrective action.
The responsibilities of the PMs include :

 Communicating project status to the steering committee, project

sponsor, and the business users
 Preparation and maintenance of the project plan, project budget, and
timeline
 Managing the project scope
 Managing the project budget
 Streamlining the issue resolution process
 Acquisition, assignment and ongoing management of project
resources
 The functional consultants will take knowledge transfer from Poddar Tyres
Functional
Template team on each business process to be implemented to Client’s SAP
Consultant system

 The functional consultants/expert users will map current business processes

as per BW template, develop and execute system-testing plans. These
resources will also map data requirements and system integration
requirements, configure the SAP application and create high level
develBedrockent specifications

 Consult and participate in planning and managing the project

 Consult and participate in blueprinting and specifying all system functionality,

business

 Business processes, policies, and procedures

 Consult and participate in specifying all system requirements including those

© ARR Services Page 18 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

for legacy data conversion and required system extensions

 Participate in configuring the SAP ECC 6 EHP 7.14 software to meet CLIENT's
needs and mentor the staff in this process

 Consult on unit, integration and acceptance testing

 Develop end-user documentation and training material

 Ensure smooth knowledge transfer from the CLIENT Core team to the project
team

 Developers will design and develop custom reports, interfaces, conversions

ABAP
and enhancements using ABAP
Consultant

 To lead the develBedrockent team and coordinating with functional team, client
and
project management.
 Understand the technical requirements and any develBedrockent changes
 Prepare technical specification and communicate with offshore ABAP team
 Carry out unit testing and ensure that the develBedrockents are in line with
requirements
 Carry out technical issue resolution
 Understand CLIENT workflow requirements and design the workflow, if any
 Customize standard workflows and objects to suit PAMR requirements
 Workflow customization and settings

SAP Basis Consultant would be responsible for

Security  Prepare Authorization Matrix
 Roles and Authorizations on SAP system and portal
Consultant

© ARR Services Page 19 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

6.0 PROJECT MANAGEMENT

This section of the proposal describes how ARR Services will carry out the project management. It covers
essential elements of the project like project status reporting, project tolls, escalation process and
highlights some of the risks involved in such project and mitigation measure taken by ARR Services India
Pvt. Ltd.

6.1 Project Organization Structure

6.2 Escalation Matrix

The Escalation Process is used to ensure critical items are raised soon enough to prevent impacts or
embarrassments to the project, and to ensure the appropriate parties are informed and involved in
critical decision-making. The project should always strive to make decisions and address issues at the
lowest possible level, however when a resolution cannot be made up to the direct project manager,
items should be escalated to ensure a decision is made before it can cause project impacts.
The figure above illustrates the structure of escalation matrix. ARR Services and the Client shall assign
key personnel at each role and communicate during the project kick off. The personnel at each role and
band shall be empowered to take decisions and drive change management.

© ARR Services Page 20 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

6.3 Governance Model

While the above figure indicates the governance model, ARR Services propose the following proactive
approach and steps for an effective governance model:

 Weekly Status Report: ARR Services PM and Poddar Tyres PM would jointly prepare and
present a weekly project status report to key stakeholders.

© ARR Services Page 21 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

 Governance Meeting on conference call: on every fortnightly basis for reviewing the status,
risks and support requirements, shall be attended by:

 ARR Services representation: Project Manager,

 Poddar Tyres representation: Project Manager, Project Sponsor

 Steering committee: shall be attended by the responsible and competent authority of ARR
Services (e.g. Delivery manager, Account manager) on the following events (5 times during
project lifecycle):

 Project kick-off
 Closure of BBP phase (in project phase-I) and sign-off
 Closure of Each Phase
 Go Live

 Effective escalation matrix mapping: the top level management members of ARR Services and
Poddar Tyres Organization

 Business Blue Print Review: An independent review by the competency center of ARR Services
and presenting the report to steering committee.

 Realization Review: An independent review by the competency center of ARR Services

 PMO Review: An independent review by ARR Services PMO after BBP sign-off and sharing the
relevant content (if any) with steering committee.

© ARR Services Page 22 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

7.0 PROJECT SCHEDULE

Based on the assumptions that Customer has 5 working days a week, eight-hour in a working Day, the
project implementation plan is prepared and tentatively following details will be the details such as time
duration of the various phases of the project as well as resource spread.

ARR Services believes that a project of this magnitude can be completed in a duration of 24 business
week.

Project Plan
Project Phases Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Project Preparation
GAP / Fit Analysis and Business Blue print
Realization and Final testing
Preparation for Go-live
Go Live and Support

The above plan is based on assumptions and initial inputs from Customer, a detailed plan will be
provided based on the SOW provided by Customer.

Proposed Project Management Team*

Role Name Profile

Project Manager To be decided

FICO Consultants Manish Bhasin and Manoj Sharma

SD Consultants Satya Parkash and Abhishek Shrivastava

MM Consultants Gaurav Suyal and Nitish Pundhir

PM Consultant Pawan Kumar

PP Consultants Aniket Awdhani

© ARR Services Page 23 of 24 14-03-

2018
 AS-IS & To-Be document for SAP implementation PROPOSAL

8.0 PROJECT COMMERCIALS

ARR Services has proposed this special rate keeping in mind its keenness to work with Poddar Tyres for
a long-term alliance and ensuring success.

8.1 Implementation/Rollout Cost

Description Fee (in INR)

(i) 6 Months Implementation INR 87,50,000 (INR Eighty-Seven Lacs Fifty
Thousand Only)

8.2 Payment Schedule

Payment Milestones based on Total Value of services (including Taxes if any)

Mile stone / Event % of payment

Project Initiation Advance 25
Business Blue Print 25
Realization 25
Final Preparation & Go Live 15

Go Live Support 10

Payment for ASM and Stabilization Phase: 100% Advance

Billing norms and payments:
 All applicable taxes& levies would be extra.
 Poddar Tyres will pay to ARR Services within 7 days of invoicing.
 Poddar Tyres will provide certificates for any tax deduction effected

Validity: The validity of this proposal is for 30 days.

Out of Pocket Expenses: All expenses incurred for Lodging, Boarding and Travel to Project Site from
ARR Services Office to be arranged by Poddar Tyres Mill-Caustic Soda Unit.

© ARR Services Page 24 of 24 14-03-

2018