Material Quotation System Functional Requirements Document

Release: Requirement DocumentDate: 2014/03/03

Version 6.0Authors: Semon Wu

Owners: Bugaboo ICT

Client: CMT, EA, NL Cost Specialist, Supplier

Document Number: ICT-FRD-20140303Release Date: 2014-03-03Update Date: 2014-03-26

Revision Sheet

Release No. Date Revision DescriptionRev. 0 2014-03-03 Create functional requirement documentRev. 1 2014-03-12 Modify Approval process and control pointRev. 2 2014-03-12 Add Mock Quotation by CMT managerRev. 3 2014-03-13 Modify Functional Structure, added Quotation version and

approval processRev.4 2014-03-14 Modify Rights control definition, Add interactive information

requirementRev.5 2014-03-14 Add Other requirements from Jill inputs. 1, scalable requirements;

2, sustainable improvement for practical level requirements.Rev.6 2014-03-26 Correct express error by RainnerRev.7 2014-03-27 Update Notification for finance team, PMP team

Contents

1. INTRODUCTION..........................................................51. Project Risk........................................................................................................................5

2. Effective Term....................................................................................................................5

3. Readers...............................................................................................................................5

4. Scope..................................................................................................................................6

Assumption....................................................................................................................6

Scope..............................................................................................................................6

Boundaries.....................................................................................................................6

2. GENNERAL INFORMAITON..........................................61. Background........................................................................................................................6

2. Environment.......................................................................................................................7

3. Constriction........................................................................................................................7

4. Integrated Requirements.....................................................................................................7

3. INTERFACE REQUIREMENTS........................................71. User Interface.....................................................................................................................7

2. Heterogeneous System.......................................................................................................8

3. Data Interface.....................................................................................................................8

4. FUNCTIONAL REQUIREMENT......................................81. Master Data Management..................................................................................................9

2. Mould Management.........................................................................................................10

3. Parts Processing Cost.......................................................................................................11

4. Quotation Version and Approval Process.........................................................................11

5. Analysis and Allocation....................................................................................................12

6. Alarm Feature...................................................................................................................12

7. Log Trail...........................................................................................................................12

8. Reporting..........................................................................................................................12

9. Cost Template Configure..................................................................................................12

10. Rights Control..............................................................................................................13

5. Architecture..............................................................13

6. Business Analysis......................................................131. Business Process..............................................................................................................13

2. User Case.........................................................................................................................15

3. Data Flow Diagram..........................................................................................................16

4. Data Dictionary................................................................................................................16

7. Other requirement....................................................171. Scalable Requirements.....................................................................................................17

2. Improvements for Practical Requirements.......................................................................17

1. INTRODUCTION

The functional requirements document depicts the requirements regarding materials quotation request process, including gathering information, calculation and analysis. The data source could be

manufacturing parameters, labor cost, overhead, transportation, and profit of suppliers, who would produce qualified parts designed by Bugaboo. For resin material cost, Bugaboo has maintained cost database based on international trade source. In order to produce parts, Bugaboo needs to engineer mould as the package investment, which will be calculated for comparing the whole project cost between different suppliers. This system needs to cover the other engineering specification data and information, such as drawing, picture of parts, and Excel attachment as well.

This document will focus on the system functional requirements definition, scope, function, interface, data security, system architecture, operation log trail, alarm, maintenance and management in future. The document will demonstrate the quotation business process, user case, and data dictionary regarding core parameters as well.

1. Project Risk

This project potential risk might be complexity of calculation for different materials. Bugaboo has lots of type materials such as plastic, metal, aluminum, accessory materials, packing materials, foam, fabric, and wheel board. Bugaboo takes same methodology to decompose material cost. However they are totally different manufacturing process and engineering process. In other way, Bugaboo might change the calculate formula and parameter according to business change or industrial improvement. Bugaboo needs the system can be applied for all type materials based on different system configure. So if this can happen, the system should be configurable on two levels: cost parameters and calculation formula. The cost calculation formula might be different per suppers. All configurations must be complied with preliminary mathematics excluding probability statistics, trends analysis, engineering calculus.

2. Effective Term

This functional requirements will be effective until confirmed and signed off by all stakeholders, such as CMT manager, HQ cost engineer, EA Engineer and ICT support.

3. Readers

Below readers are involved as recommendation from ICT:

Software partner

CMT manager

CMT specialist

EA Engineer

HQ Cost Engineer

Finance Cost Team

ICT Support

All related department heads also have right to review this document as well.

4. Scope

AssumptionThis document is based on that there are no huge changes on business process and cost decomposition methodology.

ScopeThe functional requirement is constricted within material quotation and related analysis including supplier submit material quotation parameters, calculation, analysis and allocation, and reporting. For cost review and approval process, the workflow and user are fixed in material quotation system.

BoundariesAll unstructured data like 2D\3D drawing, Parts picture, DFM PPT, GA, and Mould design picture are stored and presented with attachment.

2. GENNERAL INFORMAITON

Material quotation system will be the platform to manage all material quotation process and calculation, which include basic material of parts management, mould management, part specification management. Suppliers will be supposed to submit parameters required by BGB, system will be able to calculate cost price based on lot of parameters from suppliers and BGB. After that system also provide analysis and allocation reporting. System will provide reporting according to user analysis scenarios as well.

Bugaboo needs the material quotation system can agile provide ad hoc reporting functionality based on different business scenarios. Users also expect system can alarm or highlight information according to setting by character color or threshold figures based on which fields changed. System is nice to have push message functionality, which can help users to be informed or noticed.

1. Background

Normally, all parts will be sent to supplier for quotation, which are designed by BGB engineers according to different projects. Bugaboo conducts parts cost decomposition methodology, part cost is combined with basic materials cost, processing cost, labor, overhead, margin rate and transportation etc. Suppliers only can review and submit items assigned, are unable to manipulate the others. The data confidential and security are very important. Once supplier submitted quotation, the parameters only can be changed with BGB permission. Generally, the result is negotiated by both.

Currently, Bugaboo takes material quotation process with Excel template, so it is convenient to facilitate exceptional requirement if quotation system can export template adopted current format.

Bugaboo needs to check and retrieve all business transaction logs, and it must be convenient and agile.

2. Environment

The material quotation system will work under bugaboo global ICT environment and security policy:

Server: Windows Server 2008

DB: SQL Server 2008

Client: IE8 and above

3. Constriction

Bugaboo Corporation IT environment is Microsoft English version environment, but lots of suppliers locate China mainland and Taiwan region. So the system should be adapted English and Chinese Simple Version. All interfaces must show both Chinese and English, or be configurable.

4. Integrated Requirements

Mainly data source are from user inputs, might be imported by Excel. So Bugaboo wants the system can be integrated with Excel, but not limited to this. (In future, we expect that the system can be integrated with our engineering system-EPDM and operational system-ERP).

3. INTERFACE REQUIREMENTS

Quotation System interface requirements include user interface, Heterogeneous system interface, and data interface.

1. User Interface

Bugaboo doesn’t have specific requirements for UI style, but it is supposed be consolidated and display in both English and Chinese. For analysis reporting and allocation functionality, the format and layout needs to be complied by Business user. But for agile operational reporting requirement, Bugaboo expects that the system could be configurable on criterion and layout level. The criterion can be compound like “OR”, and “AND” condition.

For error message and dialog display, Bugaboo expects the system could handle and alarm on transaction logic error such as what field must be filled or what field must be constricted within 5 characters, just like that. Please show” Contact ICT Administrator!” if system cannot handle exceptional error.

For Information Interactive level, users expect system can show log trail information when he/she moves cursor on fields which was changed. Just like Excel remark functionality.

Bugaboo doesn’t have details requirement for UI because we are not professional on this area. We trust our software partner. But we expect our partner can upgrade and improve system on practical level since ideas from user come later.

2. Heterogeneous System

For unstructured data like PPT, drawing files from the other systems, Bugaboo doesn’t require integrated them. The only way we provided is attachment.

3. Data Interface

Excel is agile data interface for exporting and importing requirements.

4. FUNCTIONAL REQUIREMENT

According to Bugaboo material quotation process, we want the system must have the following features (refer to Exhibit 1). The system can handle the operational activities from Bugaboo request quotation, supplier submit figures, Bugaboo review and approval, and analytical activities like cost comparing between different suppliers per item or BOM. It also can help decision making through allocation comparing combined Mould investment and parts level within product life cycle.

Besides of the transactional requirements like gathering information, processing, and reporting and allocation, Bugaboo wants alarm function based on traced parameters. System can push message regarding changes on certain fields. Bugaboo needs quotation version management since there might be multiple versions existing during the negotiation.

Mould management function is only for plastic material. Normally, bugaboo invests Mould per parts as package investment. Bugaboo conducts certain cost decomposition methodology, and it is isolated with the other materials (Packing, Aluminum etc). Mould package cost will be calculated for decision making through comparing between different suppliers per BOM or items.

Exhibit 1 – Functional Structure

1. Master Data Management

Master data management includes supplier profile, parts specification (PPAP), Engineering BOM, project information. Some Enumeration type might be master data as well such as waste rate (1%, 5%, and 10%). For detail information, please refer to Charter 6 data dictionary.

Supplier information means general manufacturing information like labor cost, overhead rate, machine rate, and waste material recovery rate etc, which are aligned with Bugaboo.

Engineering BOM means bugaboo sub-system components with different versions. Generally it consists of items with different versions. Normally, Bugaboo will ask quotation for quotation per BOM, but not limited to this. Bugaboo will ask multiple suppliers to submit quotation. Sometimes Bugaboo will arrange quotation for different suppliers per item level due to the capacity limitation of suppliers.

Basic material means resin for plastic parts, but Bugaboo wants the system could be applied to the others materials we need to consider the scalability. For this documentation, we take plastic as instance so resin is basic material. Resin information consists of material item code, cost price and density.

Bugaboo initiates products development managed by project, which might be innovation or optimization. So certain project code will be assigned for collaboration and management. For items or

BOM request for quotation, there must be a project code. Project information consists of CMT manager, CMT specialist, Parts, Currency and project profile etc.

Part# information means bugaboo item code, which consists of part#, description, version, part picture and color etc.

2. Mould Management

Mould management module needs two functions: First, Mould profiling like Mould no, runner type (It can be Hot or Cold), cavity number. Below scree shot if your detail information:

The second is for decomposition of Mould cost：Mould cost decomposition is isolated using unique and certain methodology, which is different with parts. Generally, Mould will be Bugaboo package investment for parts. The cavity number will impact the parts cost when calculating part cost. Bugaboo will make decision for sorting suppliers based on Mould investment and part cost. For example, Product A has 300,000 marketing forecast sales. The mould also can fulfill all part producing with this forecast. Bugaboo will take sorting strategy like this: the total cost is that parts cost (part unit cost * 300, 000 + mould package investment).

3. Parts Processing Cost

Generally, plastic parts are modeled in high pressure and extremely hot environment in short time. All parameters are involved during this process will be calculated. Lots of efforts make this happen. Currently, Bugaboo conducts parts cost decomposition with Excel template through certain methodology, which is combined with basic cost, processing cost, management, profit, packing and transportation etc.

In order to comply future dynamic industry change or improvements, Bugaboo needs all parameters involved can be configurable (Added or Deleted), and the calculation formula is configurable as well.

4. Quotation Version and Approval Process

There are four steps existing on approval process for material quotation, Supplier Draft version, Submitted to CMT Specialist, CMT Manager Approval and HQ Cost Engineer Approval. If one quotation can pass all process, the price will effect immediately. If one quotation is approved by CMT specialist, it will be validated and be saved as different version. Rejected quotation will be returned back to supplier edition status where supplier can update certain field bugaboo wants to update without change the left fields. Therefore, system needs to provide rights control functionality for different quotation version so that CMT manager will be able to decide which fields is editable or read only.

CMT manager would like to do mock quotation, which is kind of what-if analysis. CMT manager will put predicable parameter and get mock quotation figure. Once suppliers submit their quotation, CMT

can compare the quotations between mock and submit version. The system will be able to highlight the discrepancy per parameter level for all quotations ordered by item. This is the quotation insight strategy CMT takes. So the discrepancy highlight functionality will further facilitate negotiation insight by quotation comparison.

5. Analysis and Allocation

Cost Analysis and allocation are totally different processes. Cost analysis process means CMT team compare and validate the quotations submitted by suppers, then find the price insight. It is necessary that the system must have price ranking feature by BOM and part, can highlight discrepancy of parameters per items. User may rank price per item by cost category like overhead, packing, transportation etc.

Allocation process means CMT team make business decision who will take which parts in future; it is medium and long term investment decision making process. One part whole cost equals part unit cost multiply business forecast and plus mould package. During this process, user also needs to do what-if analysis. So business forecast should be input parameter, mould life cycle as well.

6. Alarm Feature

During the request quotation process, generally lots of technical test and business negotiation are both involved. Lots of activities happened. So it is useful if the system has alarm feature, which can push message to user in system or mailing triggered by time setting, due day, threshold. Based on traced parameter selected by user, system can push message or highlight if any change existing. Based on quotation status changed, system can push message to users who might be involved such as buyer, sourcing specialist etc. Based on discrepancy between different versions of quotation, system can highlight them. For instances, Part# A quotation is submitted, system can highlight discrepancy between mock quotation and submitted version. So the predicted parameter and submitted value will be highlighted and validated.

For final notification when Part# is approved in system, system can send notification attached part list which combines price maintenance information, so that finance team can import into ERP system.

Due to position change we need the system could maintain user lists who would be informed by message.

7. Log Trail

Material quotation system needs two types’ log, the first audit trail focus on practical level and the 2nd is for business operational level. For business operational log, user needs to the remark information is mandatory before update. During reporting or cost ranking, system can show change information and log when user moves fields where existing change.

8. Reporting

It is dynamic requirement that users review historical quotation. What kinds of data will be retrieved? And what criterions will be used? It is unpredictable for criterions and data fields because there are too many business scenarios and motivation. Bugaboo CMT manager needs to provide layout and search criterion. For dynamic requirements, Bugaboo expects software partner can propose solution.

9. Cost Template Configure

In order to apply the others materials like aluminum and fabric etc, the system must be configurable by different type materials. So that it can handle materials bugaboo needs to request quotation. Bugaboo has different excel templates, which can be for reference.

10. Rights Control

Due to confidential and security requirement for material quotation, Bugaboo needs access control for form level and data access rights for user level. For instance, Supplier only can access data which is assigned and never (cannot) access the data of peers. Bugaboo needs to control write and read rights on field level per different version of quotations. For example, CMT manager would reject quotation submitted from suppliers, and let them update some fields according to discussion. So user wants to freeze certain fields and only keep some fields editable.

5. Architecture

The system will provide service on internet, so it must be B/S architecture with 3 tiers (depends on software partner solution as well). Business logic tiers will be deployed on web server, therefore it will be easy to update and maintain. Client will use the system via IE8 or above version. Soft partner need to provide system security solution because the system will work on Internet for different suppliers.

6. Business Analysis

1. Business Process

Exhibit 2, Business Process Flow

2. User Case

3. Data Flow Diagram

Exhibit 3, Context Data Flow Diagram

4. Data Dictionary

This data dictionary lists core parameters for plastic：Parameter Description Source

Material Basic material code BGB sourcing dept.

Master Batch Batch, it is for dyeing part BGB, Supplier only can select Yes/No

Cavity Quantity Mould cavity number BGB, Supplier chooses

Resin Cost/Kg Resin cost for plastic BGB sourcing

Resin Density BGB sourcing

Part Weight Initiated by calculation:

Resin quantity * density

Initiated by theoretical figure, overwrite.

Sourcing

Batch Cost BGB, sourcing

Insert Cost The calculation formula will be different by insert.

BGB, sourcing

Process Size Machine size maintained by BGB aligned with suppliers

Cycle Time Supplier

Operator Per machine Supplier

Machine Hourly Rate

Supplier

Mould# BGB, EA

Runner Hot or cold BGB, EA

MOQ Per part Supplier, sourcing

Lead time Per part Supplier, sourcing

7. Other requirement

1. Scalable Requirements

The material quotation system focuses on material cost calculation per different materials. It might be integrated to supplier portal as single module, so that user can access the system via link.

2. Improvements for Practical Requirements

Due to user lacks experience on material quotation system, there might be potential requirements on practical level like hands-on and data validation requirements, it is impossible to make acknowledge for this types of requirements for this time being. Bugaboo needs sustainable improvements on practical requirement, which are only for improvements not change on system logic and database structure. Software partner needs to deliver updates based on improvement requirement package without charge.