Kế hoạch xây dựng hệ thống thông tin và các giải pháp ERP tại công ty cổ phần sông đà 6 tổng công ty sông đà e

Plan to build information system and ERP solutions at Song Da No 6 Joint
Stock Company - Song Da Corporation.
Answer.
Part I
GENERAL INFORMATION

Song Da No 6 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,

1


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 6 Joint Stock Company is as
follows:
Song Da No 6 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 6 Joint Stock
Company.
1. The need to build internal information system in the enterprise:
2

As stated above, currently, Song Da No 6 Joint Stock Company has 8 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 6 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.
2. 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.

3


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. 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 6 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 6 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 6 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 1 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
4


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 6 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 6 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.
5


With a scale development of the company in the near future (more than 3 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 6 Joint Stock
Company.
Part III
ERP SOLUTION DEVELOPMENT PLANS FOR SONG DA NO 6 JOINT STOCK
COMPANY

6


1. 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
2. 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.

7

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:
8


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.

3. Determination of the scope of ERP project:
According to the recommendations of the consultant, with the orientation of Song
Da No 6 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 6 Joint Stock
Company in 2012, ERP project of Song Da No 6 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.
9


• Internal corporate cost (amounts arising from changes in the structure, salary, bonus,
overtime working allowance, etc.).
• Cost for future expansion and connection.
4. ERP building process:
ERP system of Song Da No 6 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 1 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.
5. ERP system requirements for Song Da No 6 Joint Stock Company.
ERP of Song Da No 6 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:// SinnovaSoft.com.vn
Others.

13