Needs Assessment and Prototype Work Order
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1 Needs Assessment and Prototype Work Order Date: July 7, 2017 Client Name: Advanced Architectural Products, Allegan, MI (Client) This Work Order outlines the costs and responsibilities associated with conducting a high-level needs/process assessment and prototype for Client. The purpose of this letter is to set forth the objectives of the proposed engagement and assign responsibilities for their completion. This Work Order is being made subject to and incorporates Synergy s Terms and Conditions, dated January 1, 2016, between Client and Synergy. Purpose and Scope The purpose of this engagement is to assist Client in finalizing their evaluation and selection of Dynamics NAV software. Synergy recommends that Client staff become familiar with the full capabilities of the Dynamics NAV software modules that are relevant to your business. Synergy always assists its clients with the evaluation process by doing a needs and process assessment, and developing a system prototype utilizing all the software modules that are appropriate. This is done through on-site interviews and input from key Client staff members. This process provides you with the opportunity to evaluate all the functionality of the software prior to the purchase of additional software and implementation. The resultant prototype will be developed in such a way that it can be used as the actual implementation beginning point for your system implementation. We understand that this effort is being undertaken based on Client s need to replace its existing system with process improvements. The prototype engagement is intended to demonstrate the core Dynamics NAV system functionality using representative Client data for evaluation purposes. The needs assessment, prototype, and documentation will be limited to critical operational transactions providing Client with the ability to confirm the system capabilities prior to committing to the purchase of additional software and related implementation costs. The scope of the prototype itself is attached to this Work Order. The scope of work to complete the implementation will be refined as part of this engagement. Synergy will provide the following consulting services: 1. Synergy will provide the necessary time as described below to understand the critical Client needs and processes, and develop a working prototype. Software Modules The core Dynamics NAV modules as presented by Synergy and identified by Client will be configured in the prototype. Specific Transactions - Sets of transactions and processes, agreed upon with Client, will be performed using standard Dynamics NAV input screens and output reports.
2 Needs Assessment and Prototype Work Order Advanced Architectural Products 2 2. The data to be used in the prototype will be agreed upon with Synergy during planning. 3. An abbreviated Chart of Accounts and Subaccount structure approved by Client will be utilized in the prototype. 4. The need for any system modifications will be identified, defined, and an estimate of the customizations, scope and costs developed for planning the implementation project 5. The scope of the implementation project including costs, timing, and partitioning of work between Client staff and Synergy staff for implementation of current and new modules will be provided based on the prototype configuration. The prototype will provide management with sufficient knowledge of the current capabilities of the Dynamics NAV product line to develop their deployment strategy. The deliverables for this project will include the following: Needs Assessment Synergy will assess Client requirements and develop configuration strategy. Prototype System Synergy will configure the prototype on a Synergy computer in a Hyper V environment. Documentation Synergy will prepare written documentation using Microsoft PowerPoint to illustrate key aspects of the system. Demonstration Synergy will demonstrate the prototype at Client s office. The documentation will include screenshots for key software screens and reports that will be demonstrated. Any issues and/or desire to modify the prototype configuration or need for additional documentation in addition to that which is provided initially will be provided at additional cost by the approval of a change order to this initial Work Order. In the event that Client elects to implement the software, Synergy will provide the NAV databases to client. As part of the implementation project, Synergy will setup the prototype system on client equipment and have complete access to further evaluate and obtain understanding of system capabilities in order to facilitate configuration of the future system. Timing & Fees Synergy will provide planning, on-site needs/process assessment, design, prototyping, documentation, and presentation phases of this project for a fixed fee of $20,000 plus travel expenses in accordance with the Synergy Standard Terms and Conditions document which will need to be signed prior to commencement of work. This project can be started as soon as it can be scheduled. Upon the Client signing this Work Order, Synergy will complete the deliverables in no greater than 30 days. Although there can be no guarantee, Synergy will make every effort to complete them by July 31, 2017 but no later
3 Needs Assessment and Prototype Work Order Advanced Architectural Products 3 than August 15, Stephen J Toth will assume engagement manager responsibility for the prototype project and will be assisted by other members of our consulting staff as needed. This is a planning engagement. At completion, Synergy will provide an updated estimate of implementation costs and timing based on the prototype configuration. Client and Synergy will mutually agree on project scope and timing of the implementation and training phases of the project. Acceptance Please sign below and return this letter to Synergy with the retainer check of $10,000 made payable to Synergy Business Solutions, Inc. Please mail to Synergy Business Solutions, Inc., SW Upper Boones Ferry Road, Portland, OR We look forward to the opportunity to provide these services to you. Should you have any questions, please call me at your convenience. Sincerely, Stephen J. Toth President Synergy Business Solutions, Inc. Client Accepted Advanced Architectural Products, Allegan, MI: I have read and am in agreement with the arrangements contained in this Work Order. By Signature Title Date
4 Needs Assessment and Prototype Work Order Advanced Architectural Products 4 NAV Proposed Prototype Work Scope 1. Proposed Abbreviated Chart of Accounts - Accounts necessary to demonstrate manufacturing functionality and financial statements. a. Single Company b. Single USD Currency Note The prototype will be configured using accounts included in the Chart of Accounts list provided by Richard Frankhauser on July 6, Additional accounts may be added within this structure in the event the system requires accounts not listed on the Chart of Accounts list. 2. Departments (Dimensions) a. Company b. Operations (Manufacturing) c. Administration Note-The prototype will be configured using the departments from the Chart of accounts list provided by Richard Frankhauser on July 6, Inventory a. Single Bill of Material (for item to manufactured) b. Inventory Items (limited as described in note below) i. Finished Good ii. Raw Materials c. Standard Costing methodology d. Mfg Work Centers (single machine or die) e. Operational steps (limited to maximum of 4) f. Inventory Replenishment (Safety Stock and reorder point/quantities) g. Material Requirements Planning (MRP) Purchase Order creation Note The prototype will be configured to demonstrate the manufacture of a 3 Inch Girt Bill of Material provided by Richard Frankhauser on July 6, The raw material components and standard costs shown in the bill of material will be setup in the prototype. 4. Warehouses a. Warehouses (2) Manufacturing Facility and 1 Remote Storage facility b. Bin Locations Not Included c. Warehouse Transfer process between warehouses Note Warehouse Bin locations will not be setup. Goods will be received, manufactured and shipped at the warehouse level. 5. Standard Processes Demonstrated (no customizations to system) a. CRM (limited to NAV CRM capabilities i.e., not Dynamics CRM) b. Quotes c. Sales Orders
5 Needs Assessment and Prototype Work Order Advanced Architectural Products 5 d. Picking e. Shipping f. Invoicing g. Cash Receipt h. Purchase Orders i. Purchase Receipts with PPV j. Production Orders (Creation to Completion of Finished Item) k. Cash Disbursement l. Fixed Asset m. Inventory Revaluation n. MRP creation of purchase orders and production orders to meet demand Note The production order process will demonstrate the ability to report periodic production and automatic backflush of standard material, labor and overhead costs. Production management will report production completion. Related bill of material components including material, labor and overhead will be back flushed (relieved) and finished inventory created. 6. Financial Statements (Jet Reports) a. Balance Sheet b. Income Statement 7. Roles Demonstrated a. Accounting Manager b. Sales Order Processor c. Production Planner 8. Office Integration a. Excel b. Outlook 9. Other a. Configure Web Interface b. Labor efficiency reporting processes (likely SSRS reporting) to be addressed as part of the prototype 10. Documentation a. Processes Demonstrated b. Key Setup deemed necessary to understand processes and postings within the system.
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