TexManage

ERP Solutions for

Spinning
Commercial Proposal V1.0

Square
Textiles
Limited,
Dhaka, Bangladesh

09/11/2008

TexManage
Table of Contents
Page
1. Scope of Supply

2. Implementation

12

3. Price Details

13

4. Standard Terms

14

5. Contact Us

16

6. Contract Sign Off

17

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TexManage
1.

Scope of Supply
1.1 Product
TexManage- An ERP (Enterprise Resource Planning) solution consisting of technical
requirements of a textile spinning mill.

1.2 Technology
The product is built on latest technologies and the details of Operating System,
Database and Application Development is given below:
Application Development
Operating System
Data Base

Technical Functions- VB.Net

Reports Tool: Crystal Reports
Server: Microsoft/ Linux
Client: Windows XP & above
Oracle (recommended)/ SQL Server and
customer has to buy the DB with
necessary user license

The scope does not include any hardware and networking elements. The user has to
provide in place the necessary hardware and networking scope.
The Hardware recommendations are given below:
Application Server
Intel Xeon Dual core
Processor 1.8Ghz or
higher 4GB ECC RAM,
200+ GB SATA HDD, 17
Colour Monitor, KBD,
Mouse,
DVD
Writer , 100Mbps LAN
Card

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Data Base Server

Intel Xeon Dual core
Processor 1.8Ghz or
higher 4GB ECC RAM,
200+ GB SATA HDD, 17
Colour Monitor, KBD,
Mouse,
DVD
Writer , 100Mbps LAN
Card

Client
Intel Pentium Dual Core
Processor min.512MB
RAM, 17 Colour Monitor,
HDD, KBD, Mouse

TexManage
1.3 Modules
The various modules covered under the scope of supply include the following and the
detailed description of each of these modules is listed below:
1.
2.
3.
4.
5.
6.

Production Planning
Production Management
Product Costing
Raw Material Management
Quality Management
Maintenance & Utilities

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1.4

Production Planning

Plan your regular projections of counts, the way you prefer: Capture Sales Orders and
Enquiries. Do a pre-plan projection for a select period. Work out a Manufacturing plan to
find out the bottlenecks of your machinery. Know your Man power requirements, raw
material, and costing of product before you produce. Break an order into many production
lots for convenient tracking. Monitor Product status.

Sales Orders and Enquiry: Maintain technical details of a sales order or enquiry in planning
module

Sales Plan: View Sales Plan created in Sales module and modify the content to suit
manufacturing understanding. Plan either by Quantity or Machines for any period

Data sheet for pre-planning: Each count is maintained with a Data sheet which contains
standard for Process, Process Route, Packing, Quality, Expected Customer Quality

Manufacturing Plan based on

Product Characteristics
Process Route
Raw material

Interactive Spin Plan: After finalizing a manufacturing plan, spin plan engine runs using set
process standards. Each and every parameter can be changed to see the effect on men,
machinery and material. All Spin Plan calculation are in- built

Rules based allocation for each product: Specific set of machinery group or machine can be
reserved to run on a particular count code.

Forward and Backward Planning; Planning adjusted to maintenance calendar. Inputs of the
output or input process can be changed and also Start Date and End Date can be changed to
see the effect

Output: For every Spin Plan calculation, output like man power required, machinery required
and raw material required can be obtained based on standard work assignments, process
standards.

Process Route: The sequence of process and their inter- dependency can be created which
guides material from first stage to last stage

Product Data Base: Product wise, machine wise process details like speed, settings, etc.

Vendor Planning: Plan to produce certain/ full of the product with a vendor

Plan Status: View Plan Status with respect to an order like how much has been produced
stage wise and view projected completion based on standard/ actual efficiency

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1.5

Production Management

Execute the plan into production: From the finalised production plan, products are taken
up for manufacturing in convenient lots. Mix Issue is raised; production is guided from first
stage to last stage. Critical details like production (in any units), stoppages, and waste are
collected. The produced material is packed and despatched. Know the status of your
product any time. Analyse employee performance. Know your KPAs like Productivity,
Realisation immediately.
Production Program: From a Manufacturing Plan, counts that need to be run for a period is
sent. Each count can be broken into multiple lots as the need may be. A lot control program
allows a running a lot to be completed, pre-closed, modified for the details, and suspended.
Also, a new count/ lot can be produced from the existing lot. The lot status with respect to
production and delivery can be continually monitored. A count can be taken up for production
without a need for Manufacturing Plan.

Production Capturing: A detailed designed production capturing function allows production

data capturing from such varied input mechanisms like full laps, quantity, opening/ closing,
batch production, etc. Automatic downloading of data from machinery is possible provided the
data is made available in required formats

Production Details: The details of production information include machine, side/ group,
employee, count, run time, quantity. Indirect employees details are also captured

Production Calculation: All production calculations are in built including count unit
conversions

Mix Request and Issues: Requests from mixing departments are received. Issues can be
done at single/multiple levels. Individual bales issued are recorded. Also, issue of soft waste
is recorded.

Stop Analysis: All stops are recorded reason wise and time wise. Group stop is done for
common stops like power cut. A detailed analysis of Utilisation allows to know reasons for
deviations

Waste Analysis: Process wastes are generated as Salable and Usable. All wastes are
recorded mix wise, count wise, machine wise or on an overall basis.

Employee Performance: Employee performance is done for an Individual and for an work
group (production/ maintenance)

Productivity Analysis: Based on Productivity Standards, a mill would like to judge its
Machine and Operator Productivity, like HOK and OHS, actual productivity measures are
automatically calculated

Yarn Realisation: Mix wise yarn realisation statements based on In-process stock, waste and
actual production and mix issues.

Ware House Management: Stocks and Despatches. Stock can be depot transferred,
despatched, reissued for packing, re-processing and as input to new count

Non Conformance: All non conformances are captured w.r.t source, quantity. The corrective
and preventive actions are recorded too.

Relative Humidity: Department wise atmospheric conditions are recorded and compared
against standards.

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1.6

Special Activities: Contamination details, Visual Defects and Idle Spindles Analysis

Product Costing
Estimation of product cost is done when an enquiry is placed with Sales. A sales forecast
is also subjected to costing estimation. More detailed estimation of product costing is
done during manufacturing plan. All these target costing exercises help optimizing
product mix and the profit margin. Actual costing on a daily basis or monthly basis can
also be arrived. The outputs in the form of cost summary, conversion costs and
comparisons can be obtained. Costing methods and rules can be set by user according
to the practice existing or can follow the recommended one.

Target Costing: Before a product(s) is taken for manufacturing, the estimation of revenue,
expenses and profit/loss can be worked out. This target costing can be stored

Enquiry: Estimation of target costing can be done for a solitary enquiry also. This is a quick cost
estimation

Sales Forecast: Estimation of target costing for sales forecasts. A sales/ costing team can work
out the cost estimates for a given Sales Plan before recommending to the manufacturing of the
need for the same

Manufacturing Plan: Estimation of target costing for manufacturing plan. Finalised manufacturing
plan can be subjected to costing estimation.

Cost Summary: Cost Sheet. This cost sheet consists of all cost elements- revenue, expenses,
gross/ net profit and profit/ kg, profit/ spindle, or profit/ frame day, etc

Conversion Cost: Estimation of conversion cost of select cost elements. A mill can declare set of
elements to be covered under conversion cost category and can monitor department wise.

Compare Targets: Compare two enquiries, forecasts, manufacturing plans for the profit and cost
details

Actual Costing: Estimation of actual costing on periodical basis. It can be for a month or for
selected period. Actual cost for various elements are captured automatically or inputted

Actual Vs Target Costing: Comparison of a cost estimate before and after manufacturing.

Costing Method: Define your own costing method. A mill can operate with any number of costing
methods. Each costing method stores the treatment each and every element will undergo in
estimating the cost.

Costing Elements: Revenue and Expenses and their basis. Flexibility built on calculating an
individual element will make the job of the mill easier. For example, power as an element can be
estimated based on UKG, actual power distribution, last month power cost or last 6 months
average, etc.

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1.7

Raw Material Management

Sample, Receive Bulk, Inspect, Pass, Stock, Maintain, Issue. In a nutshell the functions
covered in Raw Material Management (sans commercial functions).Receive Samples and
place bulk orders. Receive bulk, sample and test it. Approve/ Reject/Re-grade. Assign to
a Mix. Move to stock. Issues against Request. Allow mix transfers. Handle both Synthetic
and Natural fibres.

Raw Material Parameters: Physical and subjective properties. Raw material is normally defined
by various fibre characteristics. The standards with respect to each of the properties for various
fibres can be maintained both natural and synthetic

Samples: Each sample can be assigned with a unique number along with its original sample ID.
Samples are received and entered in a register. Samples are tested as test plan.

Bulk Lot Receipt: Receipt of bulk lot; weighment of lots

Bulk Lot testing: Receipt of bulk lot has to be tested for their conformance to sample or standard
value. Either 100% or statistical sampling can be done and the samples can be tested.

Passing: Approve, Reject, Re grade the lot. On comparison with samples/ standard, bulk lot can
be approved, or rejected or can be reallocated to another grade

Stock: Move stock to a warehouse and warehouse locator. Stock status at any given day can be
viewed for any variety, supplier, crop year, station, and fibre property value wise.

Stock Issue: Issue mix against request. Issue of mixes is always against issue requests from
manufacturing. A request can be handled on a single issue or scheduled multiple issues.

Mix Transfer within stock: Transfer a lot from one mix to another.

Issue Analysis: Analysis of individual or consolidated issue details for quantity and quality

Integration to Purchase: Integration to purchase function. A method of offering additional bonus,

if quality is good and deduct discount, if quality is off- standard can be followed. All such
information will be intimated to purchase and finance as part of payment advice

Automatic Bale Weighing: Transfer data from weighing balance of the bale weights upon
possibility of a data output in required form from an electronic weighing balance

Waste Stock: Waste collected can be transferred to as Raw Material. Such transferred waste
becomes a raw material fibre and can be issued like any other RM fibre.

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TexManage
1.8

Quality Management
Schedule a Quality Program. Approve and Execute. Do a laboratory testing of activities.
Download information automatically where possible. Do process studies and record
results. Control count and its variation. Run trials for samples and bulk lots. Monitor
Count Changes. Record the process deviation. Do final inspection of products as product
assurance. Track the lot for quality and process deviations. Analyse customer complaints.
Record all samples. Use Statistical analysis to judge process and quality deviations.

Quality Program: Quality program scheduling can be done for all activities including lab testing,
process studies, process control (wrapping) and other activities. The base of quality program is
defining an activity to its fullest details like frequency, work instruction, etc.

Laboratory Testing: Entry and Analysis of lab studies. Any number of lab study formats can be
created and stored. Each result entry is also supported with a statistical block. Detailed analysis
of test results on numerical, graphical and matrix form allow controlling process effectively.

Process Studies: Entry and Analysis of process studies. Any number of process study formats
can be created and stored. Each result entry is also supported with a statistical block. Detailed
analysis of test results on numerical, graphical and matrix form allow controlling process
effectively.

Wrapping: Control of count and it variation.

Final Inspection: Despatch certification of product assurance. Final Inspection based clearance
of count/ lot for dispatch

Customer Complaints: Record, Analyse, Close and Record. All customer complaints are
recorded. People in the system are alerted. The results of any test run, analysis of results are
entered. Customer communication is also recorded. Use it as a knowledge base.

Process Validation: Various trials run in a mill to validate whether a change in raw material,
process parameter, or machinery is beneficial. A trial can be set in the system and can be
monitored for its progress

Count Change: Controls during count change. Whenever count changes occur, all information
necessary to count change including machines on which change is effected, parameter and wheel
information are recorded.

Lot Tracking: Track quality and process deviations. Use Lot tracking features to trace where the
deviation has occurred, which department, day & machine. View the results in control chart format
to see a trend. Get into individual results to see more possibilities.

Statistical Analysis: Analyse the reasons for deviations. Use F- test, t- test, Critical Difference,
Histogram etc., to find out statistical significance of deviations. Use Control charts to create,
monitor various parameters such as Draw Frame Hank.

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TexManage
1.9

Maintenance & Utilities

Schedule Maintenance activities for preventive, routine, reactive, AMC and Calibration.
Do budget estimation for the schedules. Release Work orders for Activities. Record
activity completion. Report and Close Breakdown activities. Plan Production, quality,
running hours based replacement of components Log important activities in Log sheet.
Monitor spinning components for their running and replacements. Analyse consumption
of items for various scenario. Manage utility functions and equipment.

Maintenance Schedule: Preventive, Routine, Reactive, AMC and Calibration type Maintenance
Schedules. Schedules can be drawn separately for each department or together in a single
schedule. Scheduled Activities are released as Work Orders. Work flow is used for the approval of
schedules.

Breakdown: Report and analysis. All breakdowns are recorded with respect to downtime, items
replaced, man hours spent. Analysis of breakdowns leads to identifying frequently breaking
points. MTTF and MTBR are also calculated

Condition based Maintenance: Based on production, quality and run hours. A component can
be critical to its life depending on the quality, production or running time. System generates an
automatic warning when these parameters cross the limit

Maintenance Budget: Budgeting for men, machine, material and money, Budget Vs Actual
analysis and Maintenance Cost per Kg. An advanced budgeting exercise allows mill to determine
the amount that is expected to be spent on machinery maintenance

Schedule for any period: (Between days; Monthly; Quarterly and Yearly).

Machine and Instrument History: Automatic and Manual updation. Complete information of
machinery is stored including machinery parameters and their pictures.

Log Sheet: Record critical information. All important daily/ shift happenings can be recorded. A
voice recording facility is also available.

Spinning Components: Critical components running detail on each machine is captured; this is
tracked for life. All failures of these on running machine are captured and the failure rate is
determined to compare performance.

Consumption Analysis: Analyse consumption patterns. Performance of an item or an item group

can be analysed over period, supplier, machine group, machine, department, etc.

Power and Utility consumption: All power and utility machines related consumption. A detailed
power distribution and power capturing is done from source to final usable point (Transformer to
Machine)

Utilities: maintain log, measure performance and maintain equipment. Various functions that are
covered are power, humidification, compressor, mechanical, electrical, electronics, generator, etc.

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1.10 Special Features

Work Flow: Critical transactions are routed through Work Flow functions for approvals.

Report Scheduler: Reports which need to be periodically printed out can be automated.

Notification & Alert: Deviation in processes and values are sent as alert messages.

Desktop Ticker: A news roll information of critical parameters are presented automatically in
a news box

Export of reports in forms like .pdf, excel formats.

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TexManage
2.

Implementation Methodology
Indo Texnology will use a unique and faster implementation methodology called ad
finem. This consists of 3 phases: Pre-implementation; Implementation and Post
Implementation. Implementation will be headed by Senior Textile Technologists.
Pre-Implementation:
In this process, activities required to start implementation of various modules will be
carried out by Indo Texnology as well as Customer. Activities include formation of
team and defining
responsibilities of each team member from either side;
demonstrating the existing processes; process control mapping (Gap Analysis);
preparation of master data (Data collection and verification); auditing of IT system
requirements and plan of implementation.
Implementation:
Implementation of various modules based on scope of supply (as mentioned in
Section 3) will be carried out in this stage. Various activities include Product
installation; uploading of data from Excel or Legacy system; Signing off of master
data; training to system administrator; module champions, key users and end users;
verification of transactions and reports; Go Live; Module sign off; Project sign off and
handing over product.
Post Implementation:
After successful implementation, Indo Texnology is committed to provide Post
Implementation Support for 6 months. This includes 3 consultancy visits by Indo
Texnology on need basis, Online support, closing bugs and periodic updation of the
product.

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3.

Price Details
3.1 Product Pricing
S. No
1

Description
TexManage- Spinning ERP Solutions:
Supply of software consisting of the
scope mentioned in the Section 1 for
the unit under scope
Implementation:
Pre Implementation
Implementation

US $ 45,000 (US Dollar Forty

Five thousand only)
5 man days included (1
consultant)
90 man days included (1-2
consultants)

Consultants will be provided by Indo

Tex-nology for implementation

Beyond these man days, US

$50 per day

Travelling & Boarding Expenses of

Indo Tex-nology Consultants

Out of pocket expenses US

$25 per day per consultant
during all above days
Actual Air Ticket fare
Coimbatore, India to Dhaka.

Custom Development
Indo Tex-nology is committed to fulfil
requirements as mentioned in the
scope. Additional customer
requirements will be met at a cost
mentioned in the adjacent column
Warranty
1year from date of installation

Price

AMC

Customer to arrange for the

same
US $50 per man day

One Year from date of

installation or 6 months from
date of system sign off,
whichever is earlier.
15 % of Product Cost

3.2 Payment Terms

S. No

Particulars

%Value

Advance

25%

Delivery and Installation of Product

40%

Pilot Running

25%

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TexManage
4

After System Sign Off and Go- live

10%

Payment through Bank Transfer

4.

Standard Terms
4.1

Validity
We are happy to make this offer to Square Textiles Ltd, and the validity of the same is 45
days.
Square Textiles Ltd
Mascot Plaza (11th-12th Floor), Plot 107/A
Sector-7, Uttara
Dhaka- 1230
Bangladesh
This offer is made on a single unit basis.

4.2

Delivery
Indo Tex-nology would require a maximum of 6 weeks to put a team together and arrange
for implementation of the product.

4.3

Payment Advice
All invoices raised shall be payable within 15 days from the date of invoice. All invoices
shall be deemed to be accepted unless disputed within 7 days from the date of receipt of
invoice.
All payments required to be made by the Customer shall be in the currency stated in the
invoice and shall be paid by wire transferred to a designated bank account in India.

4.4

Terms of Termination
Either party may, without cause, terminate the entire Agreement upon written notice of one
month to the other.
In the event of termination of a Statement of Work hereunder, Company shall pay Indo texnology all fees as specified in the Statement of Work and expenses up to the effective date
of the termination, including work in progress, and including the applicable notice period
irrespective of whether Company requires Indo Tex-nology s services during same;

4.5

Information Access
Customer will supply Indo Tex-nology with the following: documentation and data, in a
timely manner, required by Indo Tex-nology to complete its obligations under the
Agreement

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TexManage
Suitable work place, IT resources & communication resources, suitable qualified personnel
to attend review meetings and carry out the implementation.

4.6

Problem Escalation
Any dispute which has not been settled between Project Co-ordinators from both the end
within 15 days of the matter being raised by one to the attention of the other, may be
escalated by either party to the next level by notice in writing. If the dispute has not been
resolved within 15 days of such notice, either party may refer it be notice in writing to the
second level of escalation. The customer shall prepare the escalation chart along with Indo
Tex-nology at the time of beginning of implementation.

4.7

Non- Disclosure
Indo Tex-nology shall keep all information or data received by it during the performance of
its duties under this agreement confidential and shall not use trade or pass this information
to any third party. Prior information will be sought from customer to use any information for
general trade purpose.

4.8

IPR Protection
Intellectual property rights of any work done by Indo Tex-nology under this Agreement,
including but not limited to Deliverables and associated Documentation, shall be vested in
and be the exclusive property of Indo Tex-nology. Indo Tex-nology grants to the customer
an irrevocable, non-exclusive, worldwide, royalty free, transferable license to use, copy,
modify and develop the same for internal purposes.

4.9

Hiring
Indo Tex-nology and customer agree that for the term of this Agreement and for a period of
one year thereafter, no party will not directly or indirectly, recruit, hire, employ, engage, or
discuss employment with any employee, or induce any such individual to leave the
employment.

4.10 Arbitration
All disputes arising out of or in connection with the Agreement shall be settled by
arbitration in Coimbatore, India in accordance with the Arbitration & Conciliation Act,
1996.

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5.

Contact Us

Please contact us for any clarification on the offer:

S. Thirupathi

40-Thasami Park, Singanallur,

Coimbatore-641005
Ph: + 91-422-3233345; +919843022118
Email: info@indotexnology.com; Thirupathi@indotexnology.com

Also: texmanage@indotexnology.com

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6.

Contract Sign Off

Square Textiles Limited and Indo Tex-nology hereby agree to the terms and
conditions of this offer. We are committed to the success of this project.

Authorised Signatory

Authorised Signatory

Indo Tex-nology

Square Textiles Limited

Name:

Name:

Designation:

Designation:

Date:

Date:

Place:

Place:

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