PROJECT 123

1. PROJECT 123 Business Case March30, 2001

2. Executive Summary Background Scope Approach Resource Requirements Costs and Benefits Assumptions Conclusion Table of Contents 1 2 3 4 5 6 7 8

3. Executive Summary • Situation Summary • Company1 has carried out a Package Software Evaluation and selected XYZ as the solution for its enterprise application needs. In order to mitigate project risk as well as providing the project with a kick-start , this short scoping study project will define the work to be done, the phasing of it and define the organizational structure company1 that needs to be realized in XYZ system. • Recommendation • Hierarchy workshop to establish Company1 organizational structure • Utilization of “AFrame” methodology to define scope • Development of phase program to identify implementation approach and sequence. • Investment • The investment in the proposed study is estimated at 5K to 6K. • In the following , you will find an outline of the scope, the approach we will take, the deliverables you should expect, and the costs to complete thisscoping study project.

4. Background - Need for Scoping Study Establishing the scope of a project is oneof the most critical steps in order to mitigate the risk of any IT project . The project scope should be a written statement giving a description of what functionality , legal entities and business units are in and also OUT of scope and should be signed off by the steering committee. Establishing a well-defined scope: • Sets accurate expectations. • Defines the quantity of work to be done. • Sets the boundaries for the work that is to be done. The project scope includes the following areas: • Number of business units (size, geography, complexity) • Level of commonality planned across business units • List of processes in and out of scope • Level of organizational change (structure, relationships) • Company locations or number of sites • Line of business or product lines included and excluded in the scope . The scope also describes the functional areas to be covered by the Project and the degree of standardization (chart of accounts, cost center organization, master data, globally standardized business processes, etc.) as well as the freedom left for local modifications and add-ons.

5. Project Scope • The overall functional scope of this project is to identify the organizational and accounting structure of Comany1 to be implemented in XYZ, to identify the business processes and modules required to meet Company1 business requirements, and to provide a road map (phase plan) of how Company1 will get there. • The scope of the activities within this project consists of the following: • XYZ Hierarchy workshop • High level Requirements to identify project scope (business process and module) • Project phase planning

6. Approach and Methodology Saltlane use the AFrame method. This s a proven approach for rapid development and requirements assessment. Saltlane AFrame Methodology Opportunity Assessment Options Evaluation Deploy Solution Planning Baseline Solution Build Solution Solution Ready • Capture business requirements • Evaluate options • Plan the project • Prepare the Business Case • Architecture design • Test planning • Build Solution • UAT • Pilot • Training • Implement • End-user support • Establish team, roles, and tools • Quick look at scope and benefits

7. Company1 Project Manager (PM) Business Process Owner (BPO) Key Business Personnel Saltlane Project Manager (PM) XYZ Functional Consultant Required Personnel

8. Detail of Work The exact sequence of these workshops will be decided given company 1 personnel availability.

9. Investment for scoping study project Estimates cited in this section are based upon the scope, approach and assumptions described in this document. Our fee for this work is based on our established hourly billing rates for the assigned staff and the hours required for the project. We have determined the time and pricing for your project as follows: Services Rate Dates Estimated Investment Project Management $200/Hour Financials and Controlling $180/Hour Materials Management $180/Hour Production Planning $180/Hour Sales and Distribution $180/Hour Profitability Analysis $180/Hour 11-13 Days 13-15 Days 5-6 Days 3-4 Days 3-4 Days 3-4 Days $ 17,600 - $20,800 $ 18,720 - $ 21,600 $ 7,200 - $ 8,640 $ 4,320 - $ 5,760 $ 4,320 - $ 5,760 $ 4,320 - $ 5,760 Estimated Days Estimated Cost 38 - 46 $ 56,480 - $ 68,320 Estimated travel expenses (if applicable): 10% - 15% Travel and expenses will be charged additionally and separately. The figure above only represents an estimate. Saltlane, as a firm, works under a time and materials policy. Company1 will be billed weekly based on the actual hours worked by our consultants. The estimates will be adjusted accordingly if the scope of the project expands or the work is completed in less time. The included estimates are based on the scope stated in this proposal. Any changes would be jointly agreed upon in writing. The figures quoted do not include any travel costs or expenses that may be necessary.

10. Benefits Tangible, short term Tangible, long term • Increased revenue • New revenue streams through new products • General cost reductions • Reduction of cycle time • Reduction of inventory costs • Increase of sales revenue • Increased contribution • Improved service levels • Increased inventory turnover • Improved on-time delivery • Reduction of product defects • Reduced planning cycles • Reduction of finance closing cycle • Shortened order availability check • Shortened time for invoice generation • Standardisation of data and processes • Internal company paradigm changes Intangible, long term Intangible, short term • Elimination of doubled work processes • Improved data accuracy • Increased speed of data exchange • Increased quotation activities • Improved accuracy of projections • Centralised billing • Improved quality • Increased speed of delivery • Increased distribution readiness • Improved customer service • Increased first call response • Reduction of customer complaints • Improved motivation of employees • Change towards innovation culture • Increased product customisation • Alignment of management and employeesaccording to business objectives • Increased staff/team creativity • Improved corporate image in market

11. Key Assumptions • Company 1 will assist the Saltlane Project Manager in coordinating and scheduling project meetings and workshops. • Identified team members will be available in a timely fashion. • Each key participant, chosen for these workshops, will attend all the workshop sessions. • Saltlane will not be responsible for any project delays that may result from issues with the infrastructure, hardware and third-party software used on the project. • All deliverables will be produced in English. • Location of the workshops will be at an agreed location. • A Global CFO has been identified by Company 1 • The Global CFO understands the company local accounting and legal accounting requirements for all Company 1 sites.

12. Company 1 has a mission to establish a visionary business system that is global, open, scalable, secure, and easily accessible, requiring minimal maintenance and human intervention to allow management control and monitoring of the growing business. Saltlane would like to help realize that vision. We would like to be your XYZ implementation partner. The requirements of this project lie at the heart of our core competencies; cost effective XYZ implementation with an emphasis on business process integrity. As a first step towards this vision, Saltlane suggest that this short scoping study be undertaken. We look forward to a successful project. Conclusion