[Implementer Logo]

Proposal for the implementation of

SAP Prepared for
[Company Logo]

PT. Company

Published: February 2002

The information in this PROPOSAL shall not be disclosed outside of Company and shall not be duplicated, used or disclosed in
whole or in part for any purpose other than to evaluate the PROPOSAL. This is a Company - IMPLEMENTER confidential
document.

[Company/client Logo]

[Implementer Logo]

TABLE OF CONTENTS

1.

EXECUTIVE SUMMARY...........................................................................................5

2.

INFORMATION......................................................................................................7
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10

3.

PT. COMPANY..........................................................................................................7
IMPLEMENTER MANAGEMENT CONSULTANTS.......................................................................8
OBJECTIVES............................................................................................................9
BUSINESS PROCESS RELATED OBJECTIVES.........................................................................9
IMPLEMENTATION OBJECTIVES.......................................................................................9
SYSTEM RELATED OBJECTIVES.....................................................................................10
BENEFITS FOR PT. COMPANY......................................................................................11
STRATEGIC BENEFITS MADE POSSIBLE WITH SAP...............................................................11
OPERATIONAL BENEFITS MADE POSSIBLE WITH SAP............................................................12
SYSTEM BENEFITS MADE POSSIBLE WITH SAP...............................................................12
SCOPE OF WORK..................................................................................................13

3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
4.

PROJECT SCOPE.....................................................................................................13
FUNCTIONAL SCOPE.................................................................................................20
IMPLEMENTATION METHODOLOGY.................................................................................21
PROJECT SCHEDULE.................................................................................................27
DEVELOPMENT OF SAP PT. COMPANY TEAM.....................................................................28
PROJECT ORGANIZATION...........................................................................................29
PROJECT TEAM ROLES AND RESPONSIBILITIES..................................................................29
RESOURCES..........................................................................................................32
COMMERCIAL PROPOSAL.....................................................................................34

4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8

MAN-DAYS CALCULATION...........................................................................................34
IMPLEMENTATION FEES..............................................................................................35
PROJECT EXPENSES.................................................................................................35
PAYMENT TERMS.....................................................................................................35
PROPOSAL VALIDITY PERIOD.......................................................................................35
PROJECT FACILITIES.................................................................................................35
IMPLEMENTER STRENGTHS..........................................................................................36
ADDITIONAL IMPLEMENTER SERVICES AND PRODUCTS FOR SAP IMPLEMENTATIONS........................36

Proposal: SAP R/3 Solution for PT. Patra Jasa

2 of 42

[Company/client Logo]

[Implementer Logo]

List Of Figures
Figure 1-1 Project Organisation Structure....................................................................................6
Figure 2-1 PT. Company Business Units.......................................................................................7
Figure 2-2 Implementer Organization Chart.................................................................................8
Figure 3-1 Project scope........................................................................................................13
Figure 3-2The main objectives................................................................................................21
Figure 3-3 Implementer business vision....................................................................................21
Figure 3-4 Magian BOS model.................................................................................................22
Figure 3-5 The Integration Between Magian and ASAP.................................................................23
Figure 3-6 Transfer of knowledge in an SAP implementation project................................................24
Figure 3-7 Stages for the Implementation of SAP at PT. Company...................................................25
Figure 3-8 Importance of the conceptual design stage.................................................................26
Figure 3-9 Project Time Frame for options 2.....................................................................................28
Figure 3-10 Project Time Frame for options 3.............................................................................28
Figure 3-11 Project organisation structure.................................................................................29

Proposal: SAP R/3 Solution for PT. Patra Jasa

3 of 42

[Company/client Logo]

[Implementer Logo]

List of Table
Table 3-1 Functional scope in terms of business process, master data & cross application ....................17
Table 3-2 Project Responsibilities and Deliverables......................................................................19
Table 4-1 Man-days Calculation for option 2......................................................................................34
Table 4-2 Man-days Calculation for option 3......................................................................................35
Table 4-3 Project Fee............................................................................................................ 35

Proposal: SAP R/3 Solution for PT. Patra Jasa

4 of 42

[Company/client Logo]

1.

[Implementer Logo]

EXECUTIVE SUMMARY
At present, PT. Company is planning to implement SAP. Implementer Management
Consultants (Implementer), SAP Consulting and Implementation Logo Partner, has
been asked to provide a proposal that highlights our SAP implementation solution
and support for PT. Company.
The implementation of SAP system will cover Financial Management, Controlling
Management, and Human Resources Management.
Implementer
Implementer established itself in Indonesia in 1997, when other consultancies
opted out. Since then we have grown into the largest and most successful SAP
implementation partner in Indonesia. We have committed ourselves to being the
best SAP implementation partner in Indonesia with global presence and
knowledge, and local resources and execution. This guarantees PT. Company
ongoing support for SAP in the future.
Our SAP consultant base is the largest in Indonesia, and has some of the most
experienced local consultants. It has strong skills, experience and knowledge in
improving business performance by implementing application software, in
particular SAP. We offer our clients one of the most challenging solutions
nowadays: the integration of business processes within the organisation and the
support of business processes by information technology.
SAP Functionality
The functional areas where SAP will be implemented in PT. Company are Financial
Accounting, Controlling, and Human Resources modules, all integrated in one
system. In our observation and discussion about the scope, we found that what
SAP can offer is matched with PT. Company requirements.
To provide the most flexibility for PT. Company, our proposal offers three options
for implementing SAP
1. Feasibility study, since Implementer needs more time to investigate the right
SAP functionality that will suitable for PT. Company. Implementer proposes the
feasibility study on that. There will no additional fee for this activity.
2. Basic SAP foundation, this option will provide PT. Company with basic SAP
modules on financial, controlling and human resource. An interface might be
developed from existing system to SAP to pass the relevant accounting entries
3. Complete functionality, this provides PT. Company with complete SAP modules
on financial, controlling and human resource. The implementation will cover all
sub modules for each functionality based on PT. Companys RFP.

Proposal: SAP R/3 Solution for PT. Patra Jasa

5 of 42

[Company/client Logo]

[Implementer Logo]

Project structure

S t e e r in g C o m m it t e e

P ro je c t M a n a g e m e n t
Change
M anagem ent

F in a n c e
W o rkgrou p

C o n t r o llin g
W o rkgro up

Hum an
R eso urce
W orkgroup

T e c h n ic a l
W orkgrou p
(A B A P / 4 & B a s is )

Figure 1-1 Project Organisation Structure

In the project organisation structure, Implementer proposes that change

management, and abap/4 developer are the responsibility of PT. Company. Please
refer to scope of work for project organisation, roles and responsibilities and key
resources.
Timeframe
By using a pragmatic approach during the Conceptual Design phase, and using
standard SAP best-practice processes as a basis for the design, Implementer
proposes three different time frames for three different options to implement the
SAP:
1. Time frame for option one, Implementer requires two weeks to discover the
functionality that might be needed to implement for PT. Company, and to
formulate the project time frame.
2. Time frame for option two, Implementer feels comfortable with a project
timeframe of six months which is five months is for preparation until
realisation, and one month is for post go-live support stage.
3. Time frame for option three, The implementation will be finished in 7 months
including preparation stage until realisation, and one month for post go live
support.
Scope in term of organizational entities
From our point of view, SAP modules that should be implemented in PT. Company
are as follows: Financial (FI), controlling (CO), and Human Resources (HR) and
the implementation will cover the Jakarta office for office rental and house rental
and for hotels will cover Bali or Jakarta.
Financial proposal
The project fee will be based on scope in term of organisation entity, the time
frame of consultant involvement. Implementer proposes different project fee for
every option and can be seen Commercial Proposal.

Proposal: SAP R/3 Solution for PT. Patra Jasa

6 of 42

[Company/client Logo]

[Implementer Logo]

2.

INFORMATION

2.1

PT. Company
Vacantie Oord Poentjak NV was established in 1936, where their business scope
was only covered services and vacation/recreation. In 1975, Vacantie Oord
Poentjak NV has become PT. Company consequently the business scope was
getting bigger, the following are their new business scope:
Hotel, motel, office rental and tourism business
Real estate business such as: [planning, contracts, constructions of new
buildings
Land transportation business
Land surveyor, fill (with soil, sands, etc)
General trading
Today, PT. Company has three business units, which are hotel industry, office
space and house rents. PT. Company head office is located at Jl. Gatot Subroto,
Jakarta.

P T . P a tra Ja sa

H o te l
In d u s t r y

O f f ic e S p a c e
In d u s t r y

B a li
P a tra J a sa

Ja k a rta
P a tra Ja sa

C ir e b o n
P a tra J a sa

S e m a ra n g
P a tra Ja sa

B a n d u n g
P a tra J a sa

M e d a n
P a tra Ja sa

A n y e r
P a tra J a sa

J a k a r t a B ir a
C o tta g e s

P a tra Ja sa
B u ild in g

H o u se R e n ta l
In d u s t r y

K u n in g a n
V illa g e

Figure 2-2 PT. Company Business Units

At the moment, PT. Company in the stage of selecting an SAP implementation

partner, who can support the organisation in implementing SAP within the time
frame and budget. Implementer Management Consultants (Implementer), SAP
Consulting and Implementation Logo Partner, has been asked to submit the
proposal for the SAP implementation project for PT. Company.
This implementation proposal will cover the implementation approach, effort and
financial proposal of SAP R/3 implementation for PT. Company.

Proposal: SAP R/3 Solution for PT. Patra Jasa

7 of 42

[Company/client Logo]

2.2

[Implementer Logo]

Implementer Management Consultants

2.2.1 Implementer organisation

Implementer Management Consultants (Implementer) is an international
operating consultancy firm with more than 600 professional consultants.
Implementer in Asia has more than 300 consultants. Implementer has, in addition
to our office in Indonesia, offices in Malaysia, Thailand, Singapore, Philippines,
Taiwan, Hong Kong, Australia, The Netherlands, Belgium and the USA. In
Indonesia Implementer has 125 consultants.

B o ard of
D ir e c t o r

B u s in e s s
L in e M E I

B u s in e s s
L in e E R P

ecSugar

SA P

a c ia M a r k e t

O r a c le

M 2M

P e o p le S o ft

B u s in e s s
L in e B 2 B

B u sin e s s
L in e V A R

B u s in e s s
L in e M S S /
A SP

Figure 2-3 Implementer Organization Chart

Implementer started its business in Asia in 1992 to serve our clients on a regional
basis and to optimise and share our resources within the Asian region. Our
business in Asia has continued to develop prosperously based on our objectives
for long-term presence, as many as possible local consultants.

2.2.2 Implementer core business and experience

Implementer has strong skills, experience and knowledge in improving business
performance by implementing application software, in particular SAP. We offer our
clients one of the most challenging solutions nowadays: the integration of
business processes within the organisation and the support of business processes
by information technology.
SAP and Implementer Asia announced our Regional Business Partner agreement in
1996 to develop synergy between services and products of the two companies
and deliver strategic functional and consulting services to customers all over the
Asian region.

Proposal: SAP R/3 Solution for PT. Patra Jasa

8 of 42

[Company/client Logo]

[Implementer Logo]

Implementer has participated in many projects globally. In Asia the following

clients in the distribution areas, telecommunication, services, and manufacturing
have used our services. Please refer to Appendix 2. Company Profile
2.3

Objectives
At present, PT. Company is in the middle of developing Information Technology
infrastructure and business application to satisfy its needs and business growth
and IT technology trend.

2.4

Business process related objectives

In more specific terms it is understood that PT. Company wants to improve the
organisation and its business processes that will bring advantages:

Truly integrate on an enterprise wide level the financial, controlling, and

human resource functionality and data in line with overall business process
improvement strategy.
Provide an integrated business solution system that can provide the
management with timely and accurate information.
Standardise and improve the performance and the efficiency of the
administrative business processes.
Improve data capturing, data processing and data sharing at the head quarter
and other three business units.
Provide management information and executive information system flexibly,
timely and more accurate
Provide a robust, online and real time system to the business process owner

The SAP solution and required changes need to be implemented without

obstructing or limiting each business units operational flexibility while ensuring
maximum benefits for the company as a whole.
The client server architecture, system scalability and continuous functional
expansion of SAP will support PT. Company in achieving its growth targets for the
coming years.
PT. Company has indicated that their current business processes and procedures
need to be reviewed and optimised if required. The business process efficiency is
guaranteed through the online integration between the different functional areas
(i.e. finance, controlling, human resources, etc). This ensures that one business
event can be captured at the source and is only processed once.
2.5

Implementation objectives
Key priority in this SAP implementation project is to enhance and increase the
performance of PT. Company business process activities. The objective can be
achieved by replacing as much as possible of the island solutions currently in
place. This means that Financial (FI), Controlling (CO), and Human Resources
(HR) functionality of SAP need to be implemented.
Implementing an extensive and rich Enterprise Resources Planning (ERP) package
like SAP requires prioritising functional requirements to present quick wins and

Proposal: SAP R/3 Solution for PT. Patra Jasa

9 of 42

[Company/client Logo]

[Implementer Logo]

direct benefits in a short time frame. Requirements that are not essential should
not compromise the implementation deadline but should be added to the SAP
system foundation in subsequent project phases. To keep these opportunities
open for the future, the system configuration should be designed accordingly,
adding the objectives:

Allow for adding of non essential functionality after the first going live date
Ensure that additional modules can be added to the system in later phases
Allow for SAP functional upgrades in the future by not modifying the SAP
source code.

Since the current PT. Company information systems are will be impact on the
environment of company, a change management program will be needed to
introduce the PT. Company staff with the concepts of Enterprise Resource
Planning.
2.6

System related objectives

Implementer strives for an overall SAP design, which realises the benefits that
experienced users expect from an integrated software package like SAP. Examples
of such objectives and derived benefits include:

Single point of data entry. The SAP system adopts a single point entry
concept where each single transaction goes through an online validity check
and updates all other related modules across SAP. This reduces manual data
entry and therefore minimises data entry errors. For example, specific vendor
account details entered in the FI-AP modules during the purchasing cycle are
immediately available in the FI-GL module for subsequent vendor payment
processing.

No manual reconciliation of data across the system. In SAP there is no

need to manually reconcile values between different modules of the system.
This understanding speeds up the process of reporting reliable information
from all parts of the system.

Real-time processing and on-line reporting. Exploiting real-time

processing and on-line reporting capabilities enables faster decision-making.
For example, the accounting effects of posting an invoice are immediately
available in the AP module, and in the CO module for further cost allocations if
required. In many standard reports, the system offers drill-down functions
enabling users to inquire on the source of a business transaction from an online financial report.

Minimise paper document flows. In theory, the system can be implemented

to support a paper-less environment concept. In practice, such an
implementation is difficult, if only due to what people have been used to doing
for years. For this SAP-system we will aim to design procedures that seek to
minimise paper document flows. As user confidence in the system grows,
management may choose to eliminate even more paper document flows
attached to a business procedure.

Enhance overall computer skills of PT. Company staff. It is a well-known fact

that the system leads the client-server Enterprise Resource Planning (ERP)
application market worldwide. The system has over 1,000 industry wide

Proposal: SAP R/3 Solution for PT. Patra Jasa

10 of 42

[Company/client Logo]

[Implementer Logo]

business processes, each based on best practice business and information

technology concepts. Our aim is to enhance existing IT knowledge and skills of
key users and IT staff, by encouraging their direct involvement in the design
and implementation of the system for TI.
2.7

Benefits for PT. Company

Major strength of SAP is the integration between accounting, controlling,
purchasing, inventory management, production planning, sales, distribution and
other business functions such as human resource. This integration will provide
more detailed, accurate and consistent information. SAP will support the day-today administrative business processes for PT. Company and the design should
allow the flexibility to accommodate changes in business processes or the
organisation.
SAP will replace a number of systems, which are currently used. Main advantage
is that this will decrease system administration costs, prevent manual interfacing
and reconciliation and will speed up period closing and budget reporting.
The primary benefits expected to accrue from the SAP implementation are:

2.8

Simple and shortened close at month and year end

Improve ability to service customers through information on profitability based
on customer orders and line of businesses.
Reduce administrative overhead, enabling staff to concentrate on analysis
rather than transactional issues, implying a focus on the present and future as
opposed to reconciling and reporting the past
Provide an integrated solution to the shortfalls of the current systems
Support information sharing and access
Provide a feed of enterprise transaction data to any future data repositories
and decision support tools

Strategic benefits made possible with SAP

The introduction of SAP is providing the following strategic benefits to PT.
Company:

Management has accurate information about the profitability of the products

and services offered
Management has accurate information about overhead costs and services
A solid back office system will facilitate the introduction of new internet
services
The system can facilitate more complex business processes and products in
the future

In addition, the PT. Company administrative systems will be flexible to expand

with the future growth. PT. Company can upgrade to new releases of SAP, making
use of the experience, research and development of a global software corporation.

Proposal: SAP R/3 Solution for PT. Patra Jasa

11 of 42

[Company/client Logo]

2.9

[Implementer Logo]

Operational benefits made possible with SAP

Implementing SAP will provide PT. Company with the following operational
advantages:

2.9.1 Operational Benefits Financial Accounting

Improved period-end processing and financial statement creation

Automatic payment processing and open item clearing
Minimise manual accounting posting
Multi-currency transactions are possible
Accurate and detailed information about financial history of assets (i.e.
acquisition/construction value, depreciation, maintenance costs, break down
costs, etc.)

2.9.2 Operational Benefits Controlling

2.10

Cost reductions through cost centre planning and budgetary controls

Improvement in accuracy and efficiency of the cost allocation transactions
Flexibility in cost and revenue reporting

System benefits made possible with SAP

The implementation of SAP will make the PT. Company system landscape less
complex because of the replacement of certain applications.
The integration and one system concept of SAP has the following benefits:
Elimination of system/data duplication
Simplified system administration
Scalability of hardware and application modules based on user demands
Improved authorisation and control
Online reports and queries with increased reporting functionality

Proposal: SAP R/3 Solution for PT. Patra Jasa

12 of 42

[Company/client Logo]

[Implementer Logo]

3.

SCOPE OF WORK

3.1

Project Scope
Scope in term of organizational entities
In the organisation structure PT. Company has three business units; these are
hotel industry, office space and house rents. In the hotel industry. PT. Company
has seven hotels including hotels in Bali, Jakarta, Cirebon, Semarang, Bandung,
Medan and Anyer. The location of the office space rental and house rental
business units are in Jakarta.
From our point of view, SAP modules that might be implemented in PT. Company
are as follows: Financial (FI), controlling (CO), and Human Resources (HR) and
the implementation will be cover the Jakarta office for office rental and house
rental and for hotel will cover Bali or Jakarta.

Scope of SAP R/3

Implementation

P T . P a tra Ja sa

H o te l
In d u s t r y

O ff ic e S p a c e
In d u s t r y

B a li
P a tra Ja sa

Ja k a rta
P a tra Ja sa

C ir e b o n
P a tra Ja sa

S e m a ra n g
P a tra Ja sa

B a n d u n g
P a tra Ja sa

M e d a n
P a tra Ja sa

A n y e r
P a tra Ja sa

J a k a r t a B ir a
C o tta g e s

P a tra Ja sa
B u ild in g

H o u se R e n ta l
In d u s t r y

K u n in g a n
V illa g e

Figure 3-4 Project scope

It is our practice to define the scope of a SAP-implementation project from three

dimensions:

Business processes: which business processes should be supported by the new

system?
Organisational entities: which departments or organisational entities will be
directly affected by the SAP implementation project?
Systems: which SAP -modules will be implemented and how will the system
architecture look like?

Proposal: SAP R/3 Solution for PT. Patra Jasa

13 of 42

[Company/client Logo]

[Implementer Logo]

3.1.1 Scope in terms of business processes

The business process groups considered to be in scope of the project are as
follows:

General Ledger
Currently in PT. Company, the transaction posting process to General Ledger is
done using a non SAP system that not directly integrates with other
functionalities such as; human resources. In the new SAP system, PT.
Company requirement is to have an integrated process between the General
Ledger and Sub Ledgers. SAP provides this kind of standard integration
processes. All standard functionality and financial reporting in General Ledger
will be in the scope of the project plus the special purpose ledger.

Accounts Receivable
Credit management and receivables from customers are managed in the
accounts receivable module. PT. Company is going to have the ability to
analyse the customers receivable, monitor the aging, and process the
payment at real time, since this module is fully integrated with cash/bank
processing in General Ledger. Dunning to customer as reminder also useful to
control potential bad debt. The standard features in the accounts receivable
will be in scope and can be integrated to front-end application (Fidelio).

Accounts Payable
In the Accounts Payable module, invoice posting as a result of the
procurement process is done automatically, with the capability to trace back
the original delivery documents and purchasing documents. On the payment
side, the automatic payment function is closely related with cash/bank posting
in General Ledger. PT. Company is going to have the ability to monitor the
payable balances in general ledger and analyse the detail in accounts payable
immediately.

Assets Management
In the new system, PT. Company requires multiple depreciation methods for
several purposes such as for booked depreciation and tax posting.
This functionality is provided within the asset management module, whereas
the users have the flexibility to design their depreciation scenarios. This
module is integrated with the general ledger for asset posting and
depreciation. All functionality for asset posting and depreciation will be in
scope.

Legal Consolidation
In the new system, PT. Company requires legal consolidation to combine the
individual financial statement data of relevant companies in order to prepare
the consolidated financial statement for a corporate group. These consolidated
statements show the financial position of the group as for a single business
entity. The standard features in the legal consolidation will be in scope.

Cash Management
PT. Company requires cash management in order to monitor payment flow and
safeguard liquidity, so PT. Company can meet all payment commitment.

Cost Center Accounting

By implementing Cost Center Accounting, PT. Company is going to have a
flexible functionality to monitor and analyse budgeted costs versus actual

Proposal: SAP R/3 Solution for PT. Patra Jasa

14 of 42

[Company/client Logo]

[Implementer Logo]

costs of a cost responsibility unit as well as group of the units, which are called
as cost center and cost center Group in SAP. So far, since there is no complex
requirement for a cost allocation, the standard functionality in SAP is sufficient
for PT. Company. As a best business practice, this cost allocation process is
managed separately with processes in Financial Accounting (G/L, A/P, A/R),
since this allocation is only for management accounting purposes and does not
affect financial position in PT. Company external reporting.

Profit Center Accounting

Business units in PT. Company as revenue responsibility units currently make a
report to head office show its sales performance. PT. Company management
wants to know every business unit profitability.
From an organization point of view, the combination of business units
(operating unit) and business line (division) will be considered as the smallest
unit of a profit center or revenue responsibility unit in PT. Company. In SAP
PCA, PT. Company management will have a great flexibility to see the
performance per revenue responsibility unit and grouping them by division,
regions or legal structure.

Internal Order
PT. Company requires internal orders and will be used to plan, collect, and
settle the costs of internal jobs and tasks. The SAP system enables you to
monitor your internal orders throughout their entire life-cycle; from initial
creation, through the planning and posting of all the actual costs, to the final
settlement and archiving.

Profitability Analysis
Profitability Analysis is a powerful module for PT. Company management
accounting to analyse the profitability in many different angles and
combination of any characteristics, such as by product or services by sales
area, by customer by product or services group, etc. PT. Company will have
the flexibility to generate the reports on line and real time. It is one of the
added values of SAP implementation in PT. Company.

Project System
PT. Company may require Project system to ensure the project will be
executed efficiently, on time and within the companys budget. The project
includes large-scale project such as: new hotel and small scale project such
as: fair or seminar whish require precise planning of the many detailed
activities involved. Standard functionality of SAP is in the scope.

Product Costing
PT. Company may require managing monitor, controlling and calculating
production-processing cost. Product costing covering product cost planning,
cost object controlling, actual costing/material ledger, and product cost
controlling information system.

Activity Based Costing

PT. Company can use the Activity-Based Costing component to provide a
process-oriented, cross-functional view of overhead in addition to the
traditional. The Activity-Based Costing component thus enhances the Cost
Center Accounting component. The Activity-Based Costing component
allocates process quantities based on resource and process drivers, allowing

Proposal: SAP R/3 Solution for PT. Patra Jasa

15 of 42

[Company/client Logo]

[Implementer Logo]

PT. Company to define cost allocation more exactly along the Value added
chain than is possible with overhead rates.
ABC is not easy to implement, PT. Company should have implemented ABCs
concept in their operation and has been legalized or recommended by. Public
Accountant.

Recruitment
PT. Company can use the Recruitment administration module to captured and
stored application data electronically, there should be on-line application
tracking on the status of the application processing.

Organizational Management
PT. Company can use the Organizational Management module to produce
Organization charts and each position shall be assigned to an employee to
purposes of position control.

Employee Administration
PT. Company can use the Employee Administration module as a part of
Personnel Management to record and capture employee master data,
employee transfer by department, employee promotion, employee terminate /
retire, etc.

Time Management
PT. Company can use the Time Management module to determined employee
working schedule, calendar facility and captured employee attendance
electronically via employee-swiped card. The attendances, absences, leave
entitlement and overtime can be calculated by the system automatically.

Payroll Administration
PT. Company can use the Payroll Administration module to administer and
calculate financial data related to employees salary, additional payments and
deductions. The system is able to compute the gross pay, deductions and net
pay for each employee for each period. In addition the payroll administration
module provide the electronic reconciliation and electronic posting of all control
account found in payroll and general ledger system.

Career & Succession Planning

PT. Company can use the Career & Succession Planning module to maintain
staff career path, identify potential candidate, succession planning and career
movement.

Training and Event Management

PT. Company can use the Training and Event Management to identify the
required training, training schedule information, training courses available and
capture comprehensive data on training courses attended by staff.

As a summary, we decompose functional business areas into the scope of project.

Implementer maintains a list of SAP based best practise business processes,
which will be used as the going-in position for the project. In this proposal,
Implementer propose the scope of the project including business process, master
data and cross application are as follows:

Proposal: SAP R/3 Solution for PT. Patra Jasa

16 of 42

[Company/client Logo]

[Implementer Logo]

Scope of Project
Item

SAP

Sub Item

Business
Process

Master Data

FI-GL Basic Settings

FI-GL General Ledger Accounting
TR-CM Cash Management
Financial
Accounting

FI-BL Bank Accounting

FI-AP Accounts Payable
FI-AR Accounts Receivable
FI-AA Asset Accounting
FI-LC Consolidation
CO-CCA Cost Centre Accounting
CO-PCA Profit Centre Accounting
CO-OPA Internal Order

Controlling

CO-PA Profitability Analysis

PS

Project System

CO-PC Product Cost Controlling

CO-ABC Activity Base Costing
HR-RE Recruitment
Human
Resource
Personnel
Management

HR-OM Organizational Management

HR-EA Employee Administration
HR-TM Time Management
HR-PY Payroll Administration

Personnel
Development

HR-CS Career & Succession Planning

HR-TE Training & Event Management

Cross
Application
Component

For option 2 and for option 3 will cover all

Table 3-1 Functional scope in terms of business process, master data & cross application

3.1.2 Scope in terms of organisational entities supported

The organisational entities most involved in the implementation will be business
units with functionality in Finance, Controlling and Human Resource division.
The detailed involvements of the business units in PT. Company in the project are
presented in
Module
Financial

Sub Module
Basic Settings
General Ledger Accounting
Account Payable
Account Receivable
Bank Accounting
Asset Management

Proposal: SAP R/3 Solution for PT. Patra Jasa

Business Unit
Hotel

Office

House

17 of 42

[Company/client Logo]

[Implementer Logo]

Module

Sub Module
Legal Consolidation
Cash Management
Cost Centre Accounting
Profit Centre Accounting
Internal Order

Controlling

Profitability Analysis
Project System
Product Cost Controlling
Activity Base Costing
Recruitment
Organizational Management

Human
Resources

Employee Administration
Time Management
Payroll Administration
Career & Succession Planning
Training & Event Management

Business Unit
Hotel

Office

House

Source: TI Scope Document

Mapping SAP requirements to PT. Company organisation entities

This SAP implementation in PT. Company, in general will have an impact on the
whole organisation. This impact needs to be addressed by a change management
program. PT. Company will create a communication plan that highlights how the
changes in work procedures and job roles could be introduced to its employees.

3.1.3 Project Deliverables Based on Magian

The responsibilities of PT. Company and Implementer, as well as the related
deliverables per project stage, are represented in the following table. Error:
Reference source not found.
Project
stage
Project
preparation

Project
management

Responsibilities & Deliverables during project

*
*
*
*
*
*
*
*
*
*

Detailed implementation plan for next stages (P00)

Project member training
Monthly progress reports (P08)
Implementation standards and procedures (Q1*)
Quality assurance approach (Q10)
Conduct kick off presentation (P01)
Select and assign suitable key users to project team
Provide project environment, infrastructure and SAP
Project management during project
Maintain project LAN and SAP during project

Proposal: SAP R/3 Solution for PT. Patra Jasa

PT.
Impleme
Compan
nter
y
X
X
X
X
X
X
X
X
X
X

X
X
X
X
X

18 of 42

[Company/client Logo]

Project
stage
Conceptual
design

Detailed
Design and
Configuration

Realisation

Post Live
Support

[Implementer Logo]

Responsibilities & Deliverables during project

*
*
*
*
*
*

Refine the PT. Company implementation objectives (P20)

Define user requirements (S10)
Map user requirements to the functionality of SAP (S10)
Define the organisational structure to SAP (O30)
List current reports and forms (S20)
Define (chapters in conceptual design report (P20):
Chart of accounts
Cost & profit centre hierarchy, PA segments
Financial concept
Personnel are grouping, Employee grouping
Payroll concept
Posting Payroll to Finance
* Define business process controls and authorisations
* Define interface concept and functionality (Z50)
* Investigate design issues (P81)
* Solve design issues (P81)
* Create communication plan (O50)
* Execute communication plan
* Write conceptual design report
* Present conceptual design report (P20)
* SAP-configuration per business process (S90)
* User procedure descriptions (B35, S40)
* End-user training plan (O60) and materials (O70)
* System test and user acceptance plan (P03)
* Assign end users to user roles
* Conversion plan (P60)
* Specifications for interfaces, reports and forms (Z50)
* Specification of conversion programs
* Prototype system (workable demo) (P31)
* Complete user procedures (B35)
* Compile end user manual (B35)
* Authorisation structure set-up
* Train the trainer
* Train the end users
* Perform integration testing
* Program interfaces, other ABAP/4 enhancements, design
SAP forms & reports
* Perform acceptance test
* Co-ordinate conversion
* Perform conversion
* Create an SAP system operations manual
* Monitor system and users
* Co-ordinate change requests (S99)
* Review and update user procedures and performances

PT.
Impleme
Compan
nter
y
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X

X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X

X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X

X
X
X

X
X
X
X
X

Table 3-2 Project Responsibilities and Deliverables.

If project activities are not carried out according to the responsibilities assigned in
Aboved table the progress of the project might be endangered. Implementer will
communicate timely to PT. Company management if this occurs.
3.1.4 Project facilities
We propose that the home base for all project activities and meetings will be at
the PT. Company office at Gedung Company, Gatot Subroto Kav. 32-34 Jakarta
Indonesia.

Proposal: SAP R/3 Solution for PT. Patra Jasa

19 of 42

[Company/client Logo]

3.2

[Implementer Logo]

Functional Scope

3.2.1 SAP modules

shows the SAP modules and their mapping to PT. Company.
office
management

CM

OC

general
ledger

accounts
payable

FI

S
U
P
P
L
I
E
R

LC

Legal consolidation

payments

MM
invoice

purchasing

purchase
order

inventory mgt
stock
movements
3 way invoice
verification

HR

profit centre
accounting

CO
PS

product costing
Profitability
Analysis
enterprise
Activityresource
Base
planning
Costing

delivery

WM
Within scope
for SAP
SHS Project

warehouse
mgt

PM

quality
control

QM

collections

payroll,
personnel
admin

SD

Project System

Plant
maintc

CS

accounts
receivable

cost centre
accounting

asset
management

AM

classification
structures

cash management

MRP I
MRP II

PP

sales
orders
pricing
shipping
distribution
billing

sales
order
delivery

C
U
S
T
O
M
E
R

invoice

PA
Profitability
Analysis

Figure 3-1 Scope in terms of SAP modules.

3.2.2 Interfaces, enhancements and modifications

There might be potential electronic interfaces planned to process data to or from
SAP. Other interfaces with current legacy applications are need further
investigation by PT. Company during the project Conceptual Design stage.
Enhancements are additions (new reports, new databases and new transactions)
to the standard SAP software. SAP script, SAP report writer and ABAP/4 query are
used to create respectively forms (i.e. reminders, cheques), reports and flexible
queries from SAP. We propose to use the standard SAP reports and forms and to
limit the number of enhancements, SAP script, report writer and ABAP/4 query.
Modifications are chances (i.e. to the source code) of the SAP software. SAP and
Implementer strongly recommend not performing any modifications to the
software to ensure future upgrades. No modifications are planned in this proposal.
In option 2, Implementer proposes 1 ABAP program in this project but in case
there are additional reports or program in the project, additional ABAP
programmer will be required. Additional ABAP programmer can be from PT.
Company or Implementer.

Proposal: SAP R/3 Solution for PT. Patra Jasa

20 of 42

[Company/client Logo]

3.3

[Implementer Logo]

Implementation Methodology

3.3.1 Implementation Methodology

The implementation of SAP is not only about the configuration of the software but
also includes how SAP is going to be used by the users. To be able to fully
understand our implementation approach it is necessary to highlight a few key
characteristics of our Implementer implementation methodology Magian.
Magian is Implementer standardised work method for the implementation of SAP.
The objective of Magian is to ensure a fast and yet high quality implementation of
SAP that takes into consideration both the systems-aspects as well as the
organisational considerations.
Magian objective is to provide an
integrated design of the 3 components
that are essential in any successful
implementation:
1. Improved processes/procedures, in
line with the business strategy and
optimised
2. Trained and knowledgeable staff,
both users and EDP
3. A well configured and tested SAP
system.

Trained and
confident users

SAP-configured
and tested

(Re-engineered)
business processes

R/3

Figure 3-5The main objectives

Magian is, in its concepts, activities, tools and deliverables consistently derived
from the following business vision.
The business strategy of an
Market
Technology
Market
Technology
organisation defines the
business objectives of a
company or organisation.
External
Business processes are
Strategy
Environment
Strategy
Strategy
directly derived from that
business strategy. Regardless
Company
Operations
of the exact organisational
Strategy
choices that management
makes (i.e. outsourcing,
Business
Business
central structure vs. decentral structure), the core
business processes are
R/3
Organization
Organization
inevitably connected to the
business strategy.
SD

FI

MM
PP

CO

AM

QM

PM
HR

PS

OC

IS

Figure 3-6 Implementer business vision

However, just processes dont make organisations tick. Two other components are
essential: people that bear the responsibilities for activities as part of the business
processes and IT-systems that support the processes in order to achieve
effectively and efficiently the desired result.
This means that, in our Magian design approach, business processes play a key
role. Business processes will finally be transformed into procedures and will form

Proposal: SAP R/3 Solution for PT. Patra Jasa

21 of 42

[Company/client Logo]

[Implementer Logo]

the guidance for the users in their day-to-day operations at TI. The functionality
of the SAP system should support these business processes.
This is reflected in Magian by our BOS model. In this model a result-model (what
has to be achieved?) is combined with a process model (what should be done and
how should it be done?). For overview of this BOS model please refer to Figure 53 Magian BOS model

Figure 3-7 Magian BOS model

Magian has been upgraded recently to be consistent with the SAP methodology
called ASAP (Accelerated SAP). Magian differentiates with ASAP in that it does not
only focus on the SAP system and transactions, but also emphasises business
process improvements and the imbedding of the business process design in the
organisation. Please refer to Figure 5-4 for an overview of the integration between
Magian and ASAP.

Proposal: SAP R/3 Solution for PT. Patra Jasa

22 of 42

[Company/client Logo]

[Implementer Logo]

Enterprise
area
Business
scenario

Business
Business
event
event

Business
Business
model
model
1:n
1:n
Business
Business
Scenario
Scenario
n:m

1:n
1:n

Time
Time event
event

Positioning of Magian:

BP
BP
(sub)Group
(sub)Group
1:n

Business
Business
Process
Process

1:n
Activity
Activity
n:1
Transaction
Transaction

Department
Department
Department
Department
unit
unit

n:1

Job
Job

Business
Procedure

SAP R/3
transaction

addition toASAP
toolsseen fromcompetition or
heardfromtheir clientsdo
not have:
relational model in a
workbench(e.g.
decompositions)
full integration of
deliverables
real integration of
project mngm, QA,
implementation
activitiesand
documentation

Figure 3-8 The Integration Between Magian and ASAP

3.3.2 Knowledge transfer

The definition of the optimal implementation strategy for PT. Company needs to
take into account the following factors:

Conceptual business issues (i.e. dimensions in profitability analyses) need to

be investigated in detail and resolved before SAP can be configured,
PT. Company has to adapt to full online system integration processes and a
number of administrative business processes are still performed manually or
duplicated,
PT. Company requires key users to participate in the implementation project,
however some of these users might also play a vital role in the day-to-day
business operations.

Our Magian based implementation approach will assist PT. Company with the
implementation of SAP. It takes into account above-mentioned factors and is
focused on delivering a working SAP system with documented procedures and
confident users according to planned timeline. Set out below is the key elements
of our Magian methodology:

Based on concurrent design of business processes and system functionality

Focus on the management of changes in procedures, functions and
organisation structures
Based on prototyping (hands-on as of day 1) and a clear scope-description
Result-oriented, only crucial deliverables are created, reducing paperwork
during implementation as much as possible

Proposal: SAP R/3 Solution for PT. Patra Jasa

23 of 42

[Company/client Logo]

[Implementer Logo]

Involvement of key users from the beginning to the end of the project.

Figure 5-6 presents our experience with the transfer of knowledge in an SAP
implementation project.
Refreshment
courses
End-user
training
Train de trainer
Overviewcourses

Workshops

Functional
courses
Acceptance
Acceptance

Conceptual
design

Detailed
design

Realisation

Production
Support

Figure 3-9 Transfer of knowledge in an SAP implementation project

PT. Company staff and Implementer project members will work together to
implement their assigned business processes by configuring SAP, writing user
procedures and provide user training. Our project team structure ensures that this
project is joint effort between PT. Company staff and our Implementer
consultants.

3.3.3 Magian project phasing

For implementing SAP at PT. Company, Implementer envisions the following five
Magian stages for the project, with intermediate deliverables and the final
deliverable: fully productive system with confident users presents an overview of
the five Magian stages.

Proposal: SAP R/3 Solution for PT. Patra Jasa

24 of 42

[Company/client Logo]

[Implementer Logo]

Figure 3-10 Stages for the Implementation of SAP at PT. Company

Stage 1: Project preparation and management

The actual SAP implementation is based on the agreed implementation proposal.
The accepted implementation plan defines how the next stages need to be
prepared. In the project preparation the following activities are carried out:

Staffing of the PT. Company project organisation

Project team formulation, assignments of PT. Company staff and Implementer
consultants
Overall project scope and main deliverables
Project boundaries/limitations
Establishment of the methods and documentation standards the project team
will use
Detailed project planning (effort by PT. Company users, Implementer
consultants and IT-department, total throughput time, budget)
Install project infrastructure with LAN, workstations, printers and access to
SAP
Ensure a stable SAP development environment (e.g. SAP-clients, correction
and transport system) for the project team members.

In addition project member SAP training and Magian methodology training should
be conducted. This stage is concluded with the project kick-off meeting.
After the kick-off meeting and during the remainder of the project, the project
management will manage the day-to-day operations of the project using the
methodology of the implementation partner.
Training for project members
Ideally the SAP project team members training should be completed prior to the
project kick-off date, so that the team members can effectively contribute their
business knowledge to the project.
Project team member training assumptions
PT. Company needs to appoint to the SAP project team member training users
which:

Proposal: SAP R/3 Solution for PT. Patra Jasa

25 of 42

[Company/client Logo]

[Implementer Logo]

Have a background in financial accounting controlling, management

accounting, human resource management, and IT
Represent PT. Company in stating the system requirements in term of business
processes, policies and procedures
Are empowered by the organisation to propose system requirements.

The detailed training schedule will be determined upon the availability of the SAP
development system. It is expected that the ABAP/4 programming training will
only start after the ABAP/4 requirements are defined in more detail.
Stage 2: Conceptual design
The success of a SAP implementation starts with the proper selection and design
of the business concepts. During the conceptual design stage it is ensured that
the logistic and financial data is consistently administrated by SAP. Fig 5-7
highlights the importance of this design stage.

Concepts
Selection

Implementation

Design

Implementation
Design
Figure 3-11 Importance of the conceptual design stage

One of the first activities during the SAP implementation is the definition of the
specific business processes for PT. Company and finalizing the business model.
Based on the business model and detailed business process the concept can be
build.
Quick establishment and configuration of the core business processes is key for a
fast project delivery. We will therefore use SAP best practises, plus our in-depth
industry and SAP knowledge to build a basic conceptual design at the very start of
the project. This design will be confirmed and verified in short discussion with key
users. This is different from many other implementers that use the conventional
approach by starting with a blank sheet and build the whole conceptual design
with the users, taking a lot of time and eventually end up with the same result in
much longer time. Using our approach we can deliver the project in more
aggressive time frame.
The objective of the conceptual design for PT. Company is:

To confirm the detailed scope of work for the implementation.

To refine the PT. Company implementation objectives and user requirements.
To improve the finance, controlling, and human resource business processes.

Proposal: SAP R/3 Solution for PT. Patra Jasa

26 of 42

[Company/client Logo]

[Implementer Logo]

To map the user requirements to the functionality of SAP.

To provide a clear and unambiguous description of finance, controlling, and
human resource functionality to be implemented.
To design the financial reporting concepts and administrative processes based
on SAP concepts.
To support the decision-making regarding main design issues.

The key deliverable of this stage should be a conceptual design report (defining
scope in detail, mapped requirements, new processes and roles, design issues
detailed, SAP infrastructure proposed, implementation plan for the subsequent
stages defined) that has to be approved by PT. Company management.
Stage 3: Detailed design and prototyping
During this stage, the business processes are mapped in detail to the transactions
in the SAP system and SAP is configured. Detailed job-roles are defined for all
departments and users involved. In addition master data required to complete the
customisation like G/L accounts and end user procedures are defined. Finally the
conversion plan, testing plan and the end-user-training plan are created for
execution in the next stage.
The result of the detail design is the working prototype in SAP, which has to be
demonstrated for understanding and confirmed by the users and by PT. Company
management.
Stage 4: Realisation of system and organisation
During the realisation stage, activities will be carried out to finalise the
configuration settings based on the approved business processes and the
confirmed prototype. Parallel to the SAP configuration, the user procedures and
job-role definitions are finalised.
Since there is a significant number of users to be trained the train the trainer
concept can be used. The project members give this means training to key users
from each division. These key users are then responsible to train their colleagues.
The key result is the productive system and organisation, allowing users to work
based on the predefined procedures. Upon a successful acceptance test, the
system will go-live.
Stage 5: Post production (Support of Live System)
Post-production support activities include the monitoring of the productive system
and improving user procedures after the system goes live. The SAP system
performance is monitored and fine-tuned based on the real production processing.
If needed, reports and additional procedures will be enhanced. Users will receive
additional training if necessary.
The end result of the post-production Support stage is a high quality system,
which is fully accepted and integrated within the user organisation. The quality of
the project is managed from the start using our Quality Assurance Concept.

Proposal: SAP R/3 Solution for PT. Patra Jasa

27 of 42

[Company/client Logo]

3.4

[Implementer Logo]

Project Schedule
The commencement of the SAP implementation will be defined in discussions with
PT. Company. The main deliverables during the project are:
The Conceptual Design report containing the mapping of the business
processes to the SAP functionality (will be provided by PT. Company).
The prototype of the system as it will be used by PT. Company. The prototype
will be demonstrated in detail to the end users and management of PT.
Company.
The live system with trained and confident users.
The detailed time frame of two options of the project that we have mentioned in
Executive Summary is shown in the following table

3.4.1 Project Schedule of Option 2

For option two that will cover basic implementation for financial, controlling and
human resources, Implementer proposes five months implementation that covers
project preparation until realisation and additional one month for post go-live
support. During the year-end closing one financial Implementer consultant will be
in PT. Company for assistance.

Project Stage / Time

Frame

Month
01

Month
02

Month
03

Month
04

Month
05

Month
06

Preparation
Conceptual Design

Go
Go Live
Live

Detailed Design
Realisation
Post Go-Live Support

Figure 3-12 Project Time Frame for options 2

3.4.2 Project Schedule of Option 3

For option that covers all functional in module financial, controlling and human
resource and based on PT. Companys Request for Implementation Proposal (RFP).
Implementer comfortable to have seven months implementation with additional
one month for post go-live support. During the year-end closing one financial
Implementer consultant will be in PT. Company for assistance.

Project Stage /
Time Frame

Month
01

Month
02

Month
03

Month
04

Month
05

Month
06

Month
07

Month
08

Preparation
Conceptual Design
Go
Go Live
Live

Proposal: SAP R/3 Solution for PT. Patra Jasa

28 of 42

[Company/client Logo]

[Implementer Logo]

Detailed Design
Realisation
Post Go-Live Support

Figure 3-13 Project Time Frame for options 3

3.5

Development of SAP PT. Company team

Please refer to point 3.3.2 knowledge tranfer

3.6

Project Organization
It is recommendable to involve a significant number of future PT. Company users
of the SAP system. The users should represent all functional areas to be covered
by the system, and be fully aware of PT. Companys business processes and
procedures. They have to collect detailed data on requirements and play a key roll
in the final conversion preparation. Their involvement will ensure efficient
knowledge transfer and will build SAP ownership within PT. Company. The
consultants will contribute in project management and knowledge on best
practises of implementing SAP in such industry. The project team will therefore
comprise of PT. Company staff and consultants from Implementer.
The recommended project organisation is presented in. In paragraph a more
detailed overview of the responsibilities of the project team is given. The final
staffing of the project team will be further defined in the project preparation
stage.

S t e e r in g C o m m it t e e

P ro je c t M a n a g e m e n t
Change
M anagem ent

F in a n c e
W o rkgrou p

C o n t r o llin g
W o rkgro up

Hum an
R eso urce
W orkgroup

T e c h n ic a l
W orkgrou p
( A B A P / 4 & B a s is )

Figure 3-14 Project organisation structure

Proposal: SAP R/3 Solution for PT. Patra Jasa

29 of 42

[Company/client Logo]

[Implementer Logo]

It is our experience that during the project the project organisation and staffing
will change due to other skill requirements. The presented project organisation is
the project structure that we recommend when starting the project. For an
efficient knowledge transfer we propose that each Implementer consultant
communicate to at least two PT. Company project member staffs.
In this project organisation structure, Implementer proposes that Change
Management, and Abap/4 developer for the SAP implementation project are the
responsibility of PT. Company.
3.7

Project Team Roles and Responsibilities

Steering Committee
The Steering Committee should consist of senior management of PT. Company,
the project-sponsor from BOD and the project manager. Implementer will assign
at least a senior manager to the Steering Committee. The main responsibility of
the Steering Committee is to provide/confirm decisions on matters concerning
policies, issues, scope and planning of the project. Typically, the Steering
Committee meets once every month.
Project management
The project manager is responsible for the project deliverables, will report to the
Steering Committee and will communicate the project details to the rest of the
organisation. In addition, the project manager will monitor the progress and
quality of the work and will ensure the necessary co-ordination between project
team members within the work-groups.
All formal internal communication within PT. Company falls under the
responsibility of PT. Company project-manager. This communication includes the
confirmation of new user procedures, assignment of users to user roles and the
responsibility for the training and conversion activities. The Implementer project
manager will assist the internal project manager. The Implementer project
manager will provide support on methodology, priorities, deliverables, coordination and functional / integration issues. It is to be expected that the project
management job is full time for both project managers.
Change management
The change management team will plan, co-ordinate and communicate the
implementation of changes in the PT. Company organisation. Implementer realise
that Change Management is a crucial component of the SAP implementation in PT.
Company. Implementer and PT. Company will define the communication plan
together, and identify the activities that need to be executed. PT. Company will
then take ownership of the change management program and will execute the
activities defined in the communication plan, assisted by our Change Management
expert. The Change Management consultant will be assigned to the project for 1
week per month, for the full duration of the project.
ABAP/4 & basis team
This team is responsible for the definition and support of the SAP project and SAP
productive infrastructure. In addition this team will build the enhancements in
SAP. To ensure an efficient project the following key areas of responsibility need to
be taken care of by this team:

Proposal: SAP R/3 Solution for PT. Patra Jasa

30 of 42

[Company/client Logo]

[Implementer Logo]

Ensuring that the necessary hardware and system software environment is in

order for the project team
Install and maintain the SAP system on the development and production
servers
Manage the SAP correction and control system
Ensuring technical integrity of the system and application software
Supporting the work-group members in technical issues, e.g. file transfer,
backup's, tuning
To download existing data (i.e. A/R master data) for conversion interface and
to prepare the upload file structures for SAP
Prepare and install SAP productive environment (i.e. sizing, database tuning)
Developing operational system procedures (e.g. backup, restore, etc)
Create and unit test the ABAP/4 enhancements (i.e. interfaces, new reports)
and SAP forms (i.e. PO, reminders).

ABAP/4 developer will be provided from PT. Company.

Functional workgroups
It is recommended to define three functional workgroups to implement the
business processes. The functionality that is implemented by these workgroups is
very much integrated and there will be many interactions between the
workgroups:

The financial controlling workgroup will focus on the financial processes in the
company
The Controlling workgroup will focus on the Controlling processes.
The Human Resource workgroup will focus on the - personnel administration
and development processes.

The team leaders and project members of the workgroups will meet regularly with
project management to ensure that all decisions made meet the overall objectives
of this implementation.
Team leaders key responsibilities include:

Develop the detailed implementation work plan

Introduce business concepts and provide functional expertise on SAP
Quality review, managing and monitoring work-group deliverables.
Since the teams are relatively small it is envisaged that the team-leader will be
also fulfil part of the general workgroup members tasks and be hands-on.

The general responsibilities of the work-group members include:

Identify, clarify and solve business and implementation issues

Develop policies and procedures for the new system
Design of report and form enhancements
Design of interface enhancements
Configuration of the SAP system
Planning testing and perform integration testing of SAP
Development of user manuals, training materials and conduct training
Support end-users in the initial stages of production.

Proposal: SAP R/3 Solution for PT. Patra Jasa

31 of 42

[Company/client Logo]

[Implementer Logo]

PT. Company workgroup responsibilities

As mentioned before it is very important that project members from PT. Company
will be assigned to the team.
The general responsibilities of these project members include:

Represent the business of PT. Company

Be officially empowered by the PT. Company to make decisions on design or
procedural issues affecting their area
Participate in the discussions/meetings, sizing and confirmation of
requirements with the consultants
Participate in discussion and contribute ideas on the design of new
system/processes and identify implications on policies, procedures and
resources
Assist in design of report and form enhancements
Assist in configuration of the SAP system
Planning of module, system and integration test
Development of user manuals, training materials and conduct training
Support end-users in the initial stages of production.

It might be difficult for the PT. Company work environment to have all persons
fully relieved from their normal duties and fully assigned to this project. Therefore
it is adamant to have management support to temporarily handover operational
activities to other staff. This would assure that sufficient key people are made
available for the project without jeopardising the operational activities.

3.8

Resources
The number of consultant will be involved in the SAP implementation in PT.
Company. The following is the name of consultant who we propose for the project.
The availability of consultant is based on the planned project start date, which is
April 2002.
XX Implementer Partner
XX has extensive experience as a management consultant in IT and non-IT
related projects in trade, services and (air)-transportation related organisations.
He gained in-depth project experience with the design and implementation of
integrated business software packages, B2B solutions and
e-Business strategies in the role of project manager and performing actual
consultancy work. All his assignments have been with multi national and multi
cultural teams and organisations.
XX Project Management
XX has a quite long experience working for a big joint venture financial services
company as a manager of IT department. He gained in depth experience in
designing, developing, and implementing IT system, by doing it in-house
development, sub contract development, or joint development project with
outside consultants, in the role of project leader/manager. He also has experience
in managing a support team maintaining the daily operation of the
computerisation. Since 1999 he involve actively in SAP implementation project as
a consultant and project management.

Proposal: SAP R/3 Solution for PT. Patra Jasa

32 of 42

[Company/client Logo]

[Implementer Logo]

XX Change Management
XX has extensive experience in the Information Technology field. His early
experience covered the very basics in programming, and further on to sales and
marketing. Over the last years he has moved into change management. He has
cover the change management process of some of the largest projects, most
likely CPI.
XX Financial Team Leader
XX has been involved in five implementations of SAP, four of them are as the SAP
implementer and another one as the key user, in the area of financial and
controlling, investment management and fund management.
XX Controlling Team Leader
XX has experience in several implementations of SAP. His expertise is in
controlling area including cost center accounting, profit center accounting,
internal order, profitability analysis, production planning and product costing
controlling. He has strong experience in telecommunication, air transportation
industry
XX Human Resource Team Leader
XX has 4 years experience in designing, customising, integrating and
implementing SAP human resource information system. He also has experience in
preparing and conducting user Training, analyse user requirement, investigating,
resolving User change requests
XX Basis and ABAP/4 Team Leader
Herminto has extensive experience in the installation and upgrade of SAP systems
in various projects and multiple platforms. Closer to the system itself than most
consultants, his focus on the actual infrastructure and systems including
server / database technologies, backup / disaster recovery options, and systems
performance tuning is the added value which is necessary to integrate the
project into a whole. He has also experience and knowledge in SAP ABAP, HR
modules, and SAP Business Warehouse. He is also an expert in the local
Implementer internal system that includes Lotus Notes.
PT. Company Resources
Number of full time equivalent PT. Company resources will be included in the core
teams. The PT. Company IT team members will be to provide understanding of
existing processes and systems, and be the key people involved in the systems
implementation. The technical team members will play a vital part in the
development of reports, customizations and interfaces to ensure that they are
fully capable of supporting the system once it has gone live.

Proposal: SAP R/3 Solution for PT. Patra Jasa

33 of 42

[Company/client Logo]

[Implementer Logo]

4.

COMMERCIAL PROPOSAL

4.1

Man-days calculation
Referring to the scope in term of organisation entity and the time frame of
consultant involvement request from PT. Company, Implementer would like to
propose PT. Company with this calculation of man-days in every option involved:

4.1.1 Man-days calculation for option no 2.

Man-days calculation is based on basic implementation for financial, controlling
and human resource.
No of
Days

PM

FI

CO

HR
-PA

HRPD

AB
AP

Basi
s

Total
Cons./
Stage

Total
Mandays

Preparation

10

20

Conceptual Design

30

0.50

4.50

135

Detailed Design

30

0.50

5.50

165

Realisation

30

0.50

5.50

165

Post Go-Live Support

20

0.50

4.50

90

Stage

Total Man Days

575

Table 4-3 Man-days Calculation for option 2

4.1.2 Man-days calculation for option no. 3.

Man-days calculation is based on full implementation for financial, controlling and
human resource
No of
Days

PM

FI

CO

HR
-PA

HRPD

AB
AP

Basi
s

Total
Cons./
Stage

Total
Mandays

Preparation

20

40

Conceptual Design

40

0.50

8.50

340

Detailed Design

40

0.50

11.5

460

Realisation

40

0.50

13.5

540

Post Go-Live Support

20

0.50

5.5

110

Stage

Total Man Days

1490

Table 4-4 Man-days Calculation for option 3

Proposal: SAP R/3 Solution for PT. Patra Jasa

34 of 42

[Company/client Logo]

[Implementer Logo]

This man-days calculation is based on the scope defined. Every additional manday will be charged to PT. Company, based on the actual additional man-days, and
project fee USD 430 per man-day.
4.2

Implementation fees
Based on the man-days calculation, Implementer is pleased to offer PT. Company
for this SAP project with the project fee as follows:

Options

Total
ManDays

Calculation

Project fee in USD is

excluding all taxes

Project fee plus VAT and

withholding taxes

575

575 x USD 430

247,250

294,027

1490

1490 x USD 430

640,700

761,914

Table 4-5 Project Fee

4.3

Project Expenses
Project related expenses such as travelling costs, accommodation and out of town
allowances will be charged monthly to PT. Company based on actual costs incurred
and days spent outstation. However, for all project activities carried out in Jakarta,
we will not charge these expenses.

4.4

Payment Terms
The payment terms will be discussed in the final negotiations.

4.5

Proposal validity period

This proposal is valid until March 12 2002

4.6

Project facilities
We propose that the home base for all project activities and meetings will be at
the PT. Company office at Gedung Company, Gatot Subroto Kav. 32-34 Jakarta
Indonesia.

Proposal: SAP R/3 Solution for PT. Patra Jasa

35 of 42

[Company/client Logo]

4.7

[Implementer Logo]

Implementer strengths
Implementer is convinced of its strengths as an implementation partner of SAP.
The facts speak for IT self:
Key criteria

4.8

Costs

We offer very competitive implementations. This is proven in

several of our implementations in which our client asked us
to take over the project from the original implementer.

Local consultants 60 out of our 62 local SAP consultants are from Indonesia
and are the only ones with hands-on and turn key project
experience in Indonesia dated back as far as 1996. No
contractors are being used on any current Implementer SAP
project. All project members are Implementer employees.

Experience

Implementer has a wide range of implementing SAP modules

within the time-line of the project.
Our SAP consultant base is the largest in Indonesia, and has
some of the most experienced local consultants around. It
has strong skills, experience and knowledge in improving
business performance by implementing application software,
in particular SAP. We offer our clients one of the most
challenging solutions nowadays: the integration of business
processes within the organisation and the support of
business processes by information technology.

Methodology

We have our in-house developed Magian workbench to

produce client specific user- documentation and our Lotus
Notes Magian knowledge database, which is integrated with
SAPs ASAP tool.

Knowledge transfer
Our projects are based on a shoulder to shoulder
approach. At Garuda Indonesia, for example, we are working
with 45 consultants and 150 Garuda project members to
ensure knowledge transfer and build system ownership.

Additional Implementer services and products for SAP implementations

In addition to the services mentioned Implementer provides the following services
related to SAP implementations:

Outsourcing of SAP systems

Application development (custom solutions) in SAP
Magian workbench (creation of user procedures and performing project
management in an integrated way)
SAP Conversion toolkit

These services and products are not included in this proposal. We will present these
services and products during the implementation project and discuss with PT. Company

Proposal: SAP R/3 Solution for PT. Patra Jasa

36 of 42

[Company/client Logo]

[Implementer Logo]

management how these services and products can be used to achieve direct benefits to
the organisation.

Proposal: SAP R/3 Solution for PT. Patra Jasa

37 of 42

[Company/client Logo]

[Implementer Logo]

APPENDIX 1. TABLE FUNCTIONAL REQUIREMENT

Please refer to the binder of table functional Requirement

Proposal: SAP R/3 Solution for PT. Patra Jasa

38 of 42

[Company/client Logo]

[Implementer Logo]

APPENDIX 2. COMPANY PROFILE

Please refer to our brochure
Implementer Management Consultants

Implementer organization
Implementer Management Consultants (Implementer) is an international
operating consultancy firm with more then over 500 professional consultants,
meanwhile Implementer in Asia has more then 200 consultants. Implementer has,
in addition to PT. Implementer Indonesia, offices in Malaysia, Thailand, Singapore,
Philippines, Australia, The Netherlands, Belgium and the United States of America.
In Taiwan, Implementer has a partnership with Basic Building Blocks supporting
the delivery of projects in Taiwan and China.
In Indonesia Implementer have 138 consultants, which consists of 57 SAP
consultants with back office system implementation knowledge and 60 people with
a front office web application experience.
Implementer is building a global practise with local consultants, allowing our
clients to tap from our global experience through local resources. We have an
extensive pool of committed and dedicated consultants in the region.
Implementer started its business in Asia in 1992 to serve our clients on a regional
basis and to optimise and share our resources within the Asian region. Our
business in Asia has continued to develop prosperously based on our objectives
for long term presence, as much as possible local consultants and as fast as
possible local management.
Implementer is building a global practise with local consultants, allowing our
clients to tap from our global experience through local resources. Implementer is
committed to a long-term presence in Indonesia. Implementer Indonesia feels
responsible to support the Indonesian business community and to enable our
consultants to continue working in Indonesia. Implementer has an extensive pool
of committed and dedicated consultants in Indonesia and in the region.

Implementer core business and experience

Implementer has strong skills, experience and knowledge in improving business
performance by implementing application software, in particular SAP. We offer our
clients one of the most challenging solutions nowadays: the integration of
business processes within the organisation and the support of business processes
by information technology.

Proposal: SAP R/3 Solution for PT. Patra Jasa

39 of 42

[Company/client Logo]

[Implementer Logo]

SAP and Implementer Asia announced our Regional Business Partner agreement in
1996 to develop synergy between services and products of the two companies and
deliver strategic functional and consulting services to customers all over the Asian
region.
Implementer, besides being a fully accredited logo partner to SAP, has an excellent
track record in successfully implementing the SAP R/3 system.
From an industry perspective, Implementer Asia has an extensive knowledge base
in the following sectors:
process and discrete manufacturing
transportation
distribution
telecommunications and public utility
electronics
chemical industry.
Implementer Indonesia has a strong track record in both front office as well as
back-office automation.

Implementer Partnerships

Shell Partnership (Oil & Gas Industry Specialist)

Lufthansa Partnership (Airline Industry Specialist)
KPN Partnership (Telecommunication Industry Specialist)

A. List Consultant Skills

Proposal: SAP R/3 Solution for PT. Patra Jasa

40 of 42

[Company/client Logo]

[Implementer Logo]

APPENDIX 3. RECOMMENDED HARDWARE

SAP version
Based on the availability of SAP R/3 releases and SAP support of higher release
software it will be decided which SAP software version will be used
SAP system architecture
To make SAP R/3 accessible in the Company organisation the SAP R/3 back office
server will be installed and the SAP R/3 software will be loaded. In addition the
SAP R/3 software will need to be maintained on the server and clients. The figure
below presents a high level overview of the possible architecture components.

This figure does not present the hardware required. This proposal does not include
the hardware and additional software required. At the moment of writing this
proposal the final design for hardware and communication infrastructure was not
completed
The local area networks (LAN) and wide area network (WAN) between IBM office,
Company building, Company Kuningan and Company Semarang will need to be
defined, build and operated. The figure below show Company LAN and WAN.

Proposal: SAP R/3 Solution for PT. Patra Jasa

41 of 42

[Company/client Logo]

Proposal: SAP R/3 Solution for PT. Patra Jasa

[Implementer Logo]

42 of 42