CNI ERP- Question and Answer Log

CNI ERP- Question and Answer Log

• General Questions:

1.How many CRM users will you require?18-20

2.Of those CRM, how many out of your 130 User will only be CRM users?18-20

3.How many employees (Shop Employees) do you have? I’m looking for the total number of shop employee that will need to report on jobs on the floor? 225-250 (This includestimekeeping piece. 15 of these users are logged in ERP Users)

• On Page 6 of the RFP it has the following breakdown of users:

Category
Read Only / Write / Admin / Grand Total
16 / 108 / 6 / 130

Can you breakdown the section on Write a bit more? Write is a basic user; we didn’t go into further definition of these roles as we will have to create a matrix based on s/w.

For example how many would be Shop Floor or Manufacturing Data Entry Users? And also potentially by location or station on the floor. Attached Spreadsheet

How many would be Customer Service or Sales only?Attached Spreadsheet

• Please provide further explanation on the below deliverables.

CTP - 3.1:Item specs integrated to item master with specs specific to vendor (same item can be purchased with slightly different specs by vendor)

We would like to have the ability to add information to an item that would be specific to a vendor.

This information may include part numbers or other details. We would like to add this information to a purchase order so that the vendor would recognize their respective information.

CTP - 5.7:Surcharges can be applied as fixed amounts over the nominal cost, percent of total cost, etc.

We periodically have surcharges for items that we purchase. These items can be expedite fees, first article charges, cert charges, tooling charges etc. We would like to have the ability to distribute these types of charges over the costs of the components.

CTP - 5.10:Plans production costs based on demand and forecasting of total labor hours or machine hours

We are looking to determine what future production will cost.

Planned production costs would be any estimated labor or material that would be utilized for future production. The labor cost would be derived from estimated or scheduled hours along with a determined rate. The material costs would be derived from the Bill of Materials. These estimates would be derived from planned or forecasted work orders.

CTP - 5.11:Scenario analysis based on budgeted overhead rate and also on current overhead rate with regularly updated forecasts for production (changing driver denominator multiple times throughout the year)

We would like the have the ability to project future expenses based on upcoming production.

By utilizing the overhead rate, we would be able to estimate upcoming expenses for overhead and production. This feature would generate something similar to a future P&L statement.

(5.11 would be similar to and based on 5.10)

CTP - 5.12:Assigns user-defined number of cost elements for each cost category or each cost pool

We would like the ability to place each cost element into a category we define. We currently have material, material overhead, direct labor, factory overhead, and G&A as our cost pools. We want the ability to determine what category each cost element belongs to.

CTP - 5.13:Vertically summarizes cost elements throughout product structures

Track direct labor, materials, and various overheads not only in WIP but as they transition to finished goods and then to COGS as it is sold

CTP - 5.18:Associate specific incremental costs by program and customer such as administrative related

We would like to have the ability to determine costs by project or “program”. In other words, we would like to determine how each project or program is financially performing. To do this, we need the ability to assign expenses to their respective project or program.

CTR - 2.27Pass-through expenses directly to customer

The ability to expense purchase made on customers behalf directly to the customer. For example, if we were to purchase a particular tool associated with a product run that the customer agreed to purchase we want to be able to invoice the customer for that part and not have it hit our expense account.

CTR - 2.28Integrated check writing system that prepares and signs checks automatically based on user defined criteria of items that need to be paid.

The ability to print select payables and issue checks out of the system and flag checks over a certain dollar value for signature.

CTR - 3.6Ability to attach notes to short payments and communicate electronically back to the customer making the short payment

The ability to enter notes to invoice in the A/R module and issue statements showing short paid invoices.

CTR - 7.7What-if scenarios for won/lost customers, large cost increase, etc. on overhead absorption

A job costing tool to help cost accounting get a true picture of what a sale can do to overhead expenses.

CTR - 7.9Tracks all price adjustments for purposes of gross-to-net price reconciliations

The ability to track price change by product as value is added throughout the manufacturing process.

CTR - 7.12FIFO valuation methods to determine margins by product by customer

The ability to apply the material cost associated with product sold to determine gross margin. We want this report to be shown multiple ways. For example: by customer, product, or production line, etc.

CNI Questions:

General Questions

• Can the hard copy response come after the electronic version / delivered by 4/1/2015? No, Hard copy had to be delivered first since this is a sealed bid.
• Will you be manufacturing to a project?

QTC 3.26 Price quote to include landed cost

• Are you shopping for freight at the time of quote and wish to add it as a line item?

This is highly preferred but not a deal breaker.

• Or is the freight cost to be bundled into the price per unit? No
• If so is this done at time of quote? Or,
• Are freight costs ‘prebaked’ into your pricing infrastructure? No
• Please provide example of how this achieved today/what is required at time of quote.

For the distribution services group, freight is not bundled with the price per unit, it is always a separate line item. Today, when freight is included with the quote, estimated dims/weights and method of transportation is used to manually calculate quoted freight costs.

CTO 5.4-5.6 Absorption Variance reporting

• Please identify what type of reports or process you are trying to achieve.

We want to be able to set up various pools to track our indirect costs (ie. Material handling, manuf overhead, engineering overhead) and be able to automatically allocate the variances at the end of each month-end based upon the base associated with it (direct labor or material costs). The costs would follow the base whether in Cogs or WIP on our balance sheet. We want inventory reports that would show the makeup of the costs (direct labor, material costs, various overheads). Each of the pools would be zero balancing pools, meaning all the variances will be allocated out each month based upon our actual costs incurred.

CTP 5.11 Changing cost driver with forecast

• Please provide example of what is expected – updated cost forecast?

I believe this would be related to potential material cost adjustments or labor. If there is potentially a cost change how will that impact future builds.

QTC 4.4 Picking logic on finished goods which can be modified for or by customer or custom

• Please provide an example of the logic required, by customer or customer type.

FIFO, LIFO, serial number, lot code, date, price.

DTS 2.53 Light Assembly and Kitting for distribution business; Fulfillment requires product kitting at time of shipment and to stock, move measurements (move cost/time, pick cost/time,

• Could you provide an example of this requirement?

We need to track and measure labor activity for productivity and performance as well as the cost associated, through all warehouse functions.

CTP 3.11 Flow down requirements from customer at customer level and customer PO to production and relevant parts and vendors through PO's (e.g. quality codes)

Are the flow-down requirements from direct DoD government contracts which require DPAS ratings, DD250’s and Wide Area Work Flow or Commercial contract flow downs?

Both, I believe the intent of the statement is to ensure that Customer Purchase Order requirements are identified and then able to be flowed throughout the product lifecycle. DPAS rating information should be included on Vendor Purchase Orders etc. Typically this information is handled through assigned Quality Codes based on the Customer PO.