Plan to build information system and ERP solutions at Song Da No Joint Stock Company - Song Da Corporation Answer Part I GENERAL INFORMATION Song Da No Joint Stock Company - Labor Hero Unit in the renovation period, and the member of Song Da Corporation was established on May 01 st 1983 at Hoa Binh Hydropower Plant * The main task of the Company: Construction of the main items of the hydropower project s of Hoa Binh; Yaly; Song Hinh, Sesan 4, Se San 4a, Hua Na, Son La, Nam Chien, Huoi Quang, Lai Chau, Dong Lai 5, etc; Damming up, construction of compacted concrete, concrete of water intake, spillway, water channel, production of building stone, concrete production; Construction of bridge, road; construction of the main items and construction stone production and mining for the SeKaMan 3project under People's Democratic Republic of Laos including construction of soil, rock, concrete for water intake items, spillway, dam, water tunnel, hydroelectric power plant, production of stone material, concrete and preparation for investment in some projects such as: Building apartment CT2, mixed commercial building TM at Van Khe urban area in Ha Dong - Hanoi, HH6 Nam An Khanh high-rise residential area project in Hanoi; Parliament Building and hydropower projects; civil construction, industrial construction, etc Currently, the company is participating in building Thai Binh thermal power plant, urban railway work at the route of Cat Linh - Ha Dong Ha Noi; Bac Lieu wind power project and many other projects * Head Office: Commercial Building -Van Khe Urban Area, La Khe Ward, Ha Dong District, Hanoi * Subordinate units: The company has six subordinate units, two associates operating around the country and in the foreign countries as follows: a, Ha Noi b, Northeast - Quang Ninh Province c, Northwest - Lai Chau & Son La province d, The Central Highlands - Nghe An & Gia Lai province e, Southern, Dong Nai Province f, Mekong Delta, Bac Lieu Province g, People's Democratic Republic of Laos - SeKong & Attapue Province Part II STRATEGY OF IT APPLICATION IN BUSINESS AND PRODUCTION I/ Business strategy Business strategy to 2020 of the Song Da No Joint Stock Company is as follows: Song Da No Joint Stock Company is a strong unit in the construction industry in Vietnam, owning a high-quality human resources and advanced construction technologies to have capacity of competitiveness and international market integration The company can act as the general contractor of large power projects (hydro, thermal power, nuclear power, etc.), the projects of development of transport infrastructure, projects of urban area, industrial park, wharf and mining area, etc and production of construction materials - Average annual growth rate: 14% - 15% / year - The expected output in 2020: 3150 billion - Total number of employees: 5,500 people II / IT Application in enterprise management of Song Da No Joint Stock Company The need to build internal information system in the enterprise: As stated above, currently, Song Da No Joint Stock Company has subordinate and subordinate units with a very wide area of operation in the country and foreign countries The company has a diversified business line from construction and installation of projects of hydropower, thermal power, wind power; production of construction materials; design consultancy; business of real estate, etc The subordinate units of company operate independently, in charge of their own work and manage a huge volume of assets 120 -: - 230 billion dong However, these units are branches and must account dependently on the holding company Song Da No Joint Stock Company builds a system of completed internal regulations and regulations on all fields to manage the unit Therefore, the requirements set forth for the company is to develop a completed internal information system reflecting all activities of branches at sites such as the construction, finance, capital collection, supply of materials, personnel management, etc to take measures to manage, support and control appropriately Status of IT application and requirement of investment in ERP solutions: Recognizing the importance of the application of information technology in business management and administration, the management of the Company is very interested capital and human resources in information technology The Company has a separate administration office located at the headquarter and an IT professional in charge of this work Officials and employees at all levels of the company, depending on the position and scope of work are provided with laptop to ensure the completion of work The professional divisions at the company’s headquarter and at sites are equipped with a full range of information technology equipment such as scanners, color printers, cameras, etc The company has designed its own Web page and established a team in charge of the Web page managed by a Deputy Director (\\http:www http://songda6.com.vn/) The main duty of the Web page is to upload the introduction about the organizational structure of the company, history, mission, etc and the official information on the business results of the company from time to time Since 2008, Song Da No Joint Stock Company purchased the copyright of the software Portal Office of Vietnam Software Solution Co., Ltd and used it in the management work of the company Currently, Song Da No Joint Stock Company is using Version Portal Office 7- Enterprise Edition Successful application of Portal Office software is a success in the management work of Song Da No Joint Stock Company Modules such as text, message, assignment, etc, daily report meet almost all requirements of the company currently All official dispatches coming to and leaving the company and the transaction documents with partners are made by this system For the submission of periodic reports, as usual, the subordinate units will prepare reports, print, inspect, sign, seal and send them to the company For remote units such as People's Democratic Republic of Laos, it takes about week for the reports of the units to come to the company After checking the, if the company’s departments detects mistakes, such documents will be returned for correction which may take more several days and repeats until they meet requirements This process is very energy consuming, costly and causes a slow progress of the work, especially for important reports such as annual reports and half-year reports, the level of accuracy is not high because the unit must prepare the report in advance to send them in time, so the data is often relative For Portal office system, the company and branches communicate with each other instantly, so it is cheap to transport package; the data can be update in minutes, etc; for example, the management of the company can know how many m3 of concrete has the unit poured, which material should be supplemented, etc Currently, the office of Song Da No Joint Stock Company prints texts if required to sign and stamp to send them to higher-level agencies and government agencies Average cost of telephone is only 200,000 VND / room / month (down 80% compared with the time before application of Portal office) As calculated, with the effect of this system, the cost of stationery and correspondence of the company decreased by 2/3 However, Song Da No Joint Stock Company has not worked out a comprehensive ERP solution for the entire enterprise Each office and department of the company undertakes a number of separate tasks in the production process, so that the level of application of information technology in operations is different Technical Department shall be in charge of progress, quantity, and technology, so main used softwares are Auto Cad; Project; resource computing software, etc Economic Department prepares biding documents, so it uses mainly estimating software such as ACITT; G8 Accounting Department undertakes the accounting work, so it uses accounting software SAS (Songda Account System) HR Department undertakes the insurance, personnel documents, so it has its own software It is similar to departments of materials and machine Any work related to the next unit (frequently occurring), departments must requires the department in charge of such data to provide the information by exporting the data using commonly used software (word, excel, etc) and then re-enter into your software for calculation Therefore, it takes much time and effort and the data does not reflect the true nature (edited data) The management of the Company which wants grasp the business situation at a time has to wait for the full report of all the departments, so it leads to the delay in the decision This is especially important when dealing with these situations which need quick decisions such as decision on receiving a new works, buying or selling a combination of equipment (due to requirement of understanding financial data, work progress and production plan of the company, etc managed by such departments) At the same time, the level of using information technology of employees of departments is different, so the departments have different style of report form, layout, font, etc leading to low professionalism With a scale development of the company in the near future (more than trillion output units and 5500 staffs and employees), the company is required to have a reliable, synchronous and consistent information system to achieve the goal of business; also meet the demand in the future to 2020 and integrate the results of existing information technology platform of the enterprise It is required to build a comprehensive ERP solution for Song Da No Joint Stock Company Part III ERP SOLUTION DEVELOPMENT PLANS FOR SONG DA NO JOINT STOCK COMPANY What is ERP: ERP: Enterprise Resource Planning - Enterprise resource planning system The goal of ERP: Integrating all departments and functions of the company into a single computer system that can meet all the different management needs of different departments Reasons for implementing ERP project: a, Providing reliable management information ERP helps managers to easily access to reliable management information to be able to make decisions based on full and true information Without ERP system, a senior manager has to rely on a variety of sources to find many different figures (Finance and Accounting Department has its own sales figures and branches directly collecting the capital have its own data) With the ERP system, there is only one kind of truth; no question, no doubt because all departments and employees use the same system in real time b, Reduction of inventory Warehouse management module in the ERP software allows companies to track inventory accurately and determine the optimal inventory levels, thereby reduce the need for working capital and also increase business efficiency If required, the company may transfer unused materials being managed by Hanoi branch to Quang Ninh Branch which has a urgent need but cannot afford it c, Standardization of HR information Personnel management module provides accurate information on personnel such as training industry, insurance, salary, work history of individual officials and employees to leaders and managers at divisions of the company as well as each branch at any time d, More accurate accounting Accounting module of ERP software helps the company to reduce common of employees in manual accounting Accounting module also helps the internal auditors and senior management staffs check the accuracy of the accounts Moreover, a well-designed accounting module will support the accounting processes and the internal quality control solutions f, Management of customer information: With the ERP system, customer orders follow an automatic roadmap from the time customer service staffs receive orders until they deliver products to customer and the Department of Finance delivers invoices It is better for you to get information from a single system rather than scattered information from different systems of different departments ERP software system allows your company to track orders easily, and coordination between units of business, storage and delivery at different locations at the same time f, Standardization and increase in production efficiency Effective application of production planning system can reduce production costs per unit of product g, Clearer definition of business process Assignments are clear and the confusion and problems related to the daily operational activities of the company are reduced Determination of the scope of ERP project: According to the recommendations of the consultant, with the orientation of Song Da No Joint Stock Company to 2020, the scale of the enterprise will be 5500 people; that means around 350 people (the company’s divisions and divisions of subordinate branches) directly use the ERP system; about 1.5% - 2% of sales is spent on ERP system in the first year With a revenue of 1,270 billion dong of Song Da No Joint Stock Company in 2012, ERP project of Song Da No Joint Stock Company would be worth approximately 20 - 25 billion dong (USD 920 thousand -: - USD 1,200 million) as follows: • Cost for copyright • Cost for deployment and transfer of the system • Cost for operation and maintenance of system • Cost for the hardware and communications infrastructure • Internal corporate cost (amounts arising from changes in the structure, salary, bonus, overtime working allowance, etc.) • Cost for future expansion and connection ERP building process: ERP system of Song Da No Joint Stock Company is built according to the following process: 4.1 Making a list of the main tasks, implementation time and personnel 4.2 Defining ERP deployment time (About year) 4.3 Preparing resources: Planning to use and prepare the resources needed to operate the system 4.4 Schedule: Identifying specific milestones for each sub-project 4.5 Looking for solution providers 4.6 Standardizing network system: The network should be set up synchronously with ERP 4.7 Investing in the hardware system for meeting the requirements of users and the minimum time to upgrade 4.8 Training to use 4.9 Transforming and loading data: Converting all data to the new system (accounting data, internal unit price standard, personnel, supplies, etc.) 4.10 Developing operating procedures for the new system ERP system requirements for Song Da No Joint Stock Company ERP of Song Da No Joint Stock Company is a solution for all administrative and operational activities of the company Therefore, it is required to meet some main requirements for each module as follows: 5.1 Executive Management: Meeting the main features: Official dispatch 10 Setting up and managing processes of processing arrival and leaving official dispatches, internal documents; Automating the process of rotation of official dispatches in the flow of processing; Automatically sending email notification to related people in the official dispatch processing; monitoring all processes of official dispatch processing; opinion and comment contribution; attached documents; relevant official dispatches; publishing official dispatch into information; unlimited storage capacity; fast and accurate looking up according to various criteria Documentation Managing and sharing the shared document; uploading and downloading documents easily; ensuring security of data access and downloading; saving all document forms; easily managing folders and files on Windows; Grouping the document by tree structure and decentralizing users Project Creating and making plan for projects and campaigns; providing essential information on a project or campaign which has been and will be carried out; attaching relevant documents for each project; automatically sending mail when the project is updated; managing and tracking periods, work, phone, appointment, membership information, contact person, etc under the project; Gantt chart by the work, partner and period Work Hierarchical structure: Project - Sub-project - Work (multi-level structure to help break up the work to the level) – Work Diary; Attaching many documents per job; Gantt chart by project, partner and user; Integrating mind map; Setting up the mode of alerting, remaindering and sending email notifications or sms; Creating and making plan for work as well as sharing a job or assigning easily; Letting relevant people to make notes for each task; Simple standard interface (similar to outlook) even for new users Other features 11 5.2 Production process: - Establishing the production process - Planning the demand for raw materials - Making a production plan - Monitoring the progress - Planning materials and cost 5.3 Accounting: - The accounting sheet; - Documents out of the table; - The tax notification documents: - The distribution and forward entry - The other features 5.4 Personnel: - Planning; - Recruitment; - Profile of personnel; 12 5.5 Management of materials and properties: - Purchase order; - Purchase invoice; - Diary of supply; - Inventory report; - Transfer balance and other modules as required For this ERP system, the company will prepare the supply bidding documents and give priority to the solution of providers in the country for cost savings and better aftersales The end Reference: 1) 2) 3) 4) 5) Management Information System http://songda6.com.vn/ http://gscom.vn/portal/20091204402/chuyende-erp/10-dieu-can-biet-ve-erp.html http:// SinnovaSoft.com.vn Others 13 ... the different management needs of different departments Reasons for implementing ERP project: a, Providing reliable management information ERP helps managers to easily access to reliable management... doubt because all departments and employees use the same system in real time b, Reduction of inventory Warehouse management module in the ERP software allows companies to track inventory accurately... and determine the optimal inventory levels, thereby reduce the need for working capital and also increase business efficiency If required, the company may transfer unused materials being managed