Proposal Version 5

Proposal
For The
Automation Project
(Capstone)
Submitted By: Mark Forster
Keller School of Management
Fall Session B, 2006
Southern California
Irvine, CA/Graduate Program
Professor Jack Cochran Presiding

TABLE OF CONTEXTS
COVER LETTER……………………………………………………………………..…IV
EXECUTIVE SUMMARY……………………………………………………………...VI
A OVERVIEW OF PROPOSED SOLUTION………………………………………VII
B. PROPOSAL ………………………………………………………….…………15
2.0 Quality Assurance Agency………………………………..…………………...15
2.1 Current Situation…………………………………….……………………….15
2.2 Recommendation………………………………………………………….…15
2.2.1 Location……………………………………………………………….…15
2.2.2 Benefits……………………………………………………………....…..15
2.2.3 Risks………………………………………………………………….….16
2.2.4 Selection of Quality Assurance Agency……………….……………..….16
2.2.5 Time…………………………………………………………………..….16
2.2.6 Cost……………………………………………….…………………..….16
3.0 Equipment…………………………………………..………….……….……...17
3.1 Current Situation……………………………………………..……..…….….17
3.2 Recommendation………………………………………………..……….…..17
3.2.1 Location………………………………………….……….………….…..17
3.2.2 Benefits……………………………………….…………..……….……..17
3.2.3 Risks……………………….……………………………………………..18
3.2.4 Selection of New Equipment…………………………………………….18
3.2.5 Time………………………………………………………………..…….18
3.2.6 Cost……………………………………………………….….………..…18
3.2.6.1 Accounting Procedures………………….………….………..…..18
3.2.6.2 Recording Cost of Equipment 20
…………………….………..….18
4.0 Selection of Association of Shareware Professionals (ASP)…………………..20
4.1 Current Situation………………………………………….………………….20
4.2 Recommendation…………………………………………………….………20
4.2.1 Location…………………………………………..……………………...20
4.2.2 Benefits……………………………………………………………….….20
4.2.3 Risks8A
…………………………………………………….………….….21
4.2.4 Selection of ASP…………………………………………..……….…….22
4.2.5 Time…………………………………………………………..…….……22
4.2.6 Cost……………………………………………………………………....22
5.0 Application Software (Inventory Control)……………………………….…….23
5.1 Current Situation………………………………………………………..……23
5.2 Recommendation………………………………………………………..…...23
5.2.1 Benefits………………………………………………………….….……23

5.2.2 Risks8A
…………………………………………………………….……..24
5.2.3 Selection of ASP………………….…………………………………..….24
5.2.4 Time………………………………………………………….…………..24
5.2.5 Cost………………………………………………………………………24
C. PROFILE……………………………………………………………….……….…25
1) AMREP……………………………………………………………….….26
2) FSI Forming System, Inc. …………………………………………….…30
3) 1EDISOURCE……………………………………………………….…..32
4) Advance ware………………………………………………………….…36
D. TECHNICAL SECTION………………………………………..…………………37
E. HUMAN RESOURCES (Severance Pkg.)…………………………………..…….40
F. ORGANIZATION STRUCTURE………………………………………….……...41
G. TIME/COST SECTION…………………………………..……………………..…43
APPENDICES
SOURCE AND REFERENCE………………………………………………….……….46
LIST OF ILLUSTRATIONS
Work Breakdown Structure (WBS)
Responsibility Matrix
Risk Breakdown Structure (RBS)
Company Organization Chart
Gantt Chart
Scoring and Screening
LIST OF TABLES
Table 1-TS (Machine Requirement in the RFP)……………………………………..…..37
Table 2-TS (Machine Specification Developed) ……….……………………………….37
Table 3-TS (Specifications for Selecting a quality assurance agency)…………………..38
Table 4-TS (Software Application Service ASP)………………………………………..39
Table 5-TS (Application Software Inventory Control)…………………………………..39

November 18, 2006
Mr. Owen French, President
Automotive Parts Inc.
123 Maple Street
Buffalo, NY 14203
Dear Mr. French:
The proposal in front of you will not only strengthen API’s position in its served market
but, over time, will leverage API’s ability to become a significant ingredient in its
customers brands and products. This proposal will allow you to reposition the dynamic
infrastructure you have worked so rigorously to build via a paradigm shift to the future
generation of ingredient parts manufacturing. By utilizing the well-crafted, seasoned
professionals under your direction and tutelage, the metamorphosis should be relatively
inconspicuous while building a next generation, multi-faceted, highly productive
manufacturing and subassembly automotive parts company.
This proposal outlines a multi-faceted approach that, once approved and implemented,
will provide immediate returns and reduced operating risk. To achieve this, API will
contract a third party to insure that all materials needed in the manufacturing process
meet tolerances set forth by API. Then, for any reason that the material reaches the final
random output check and is not within tolerance, the third party will be charged for the
time and material, mitigating the need for wire gauge checking equipment and labor
during manufacturing. The next branch of the project will be to purchase new
manufacturing equipment that facilitates greater product quality, speed, efficiency, and
the opportunity to embrace new markets. The new machinery will have less material
waste, lower down time to change tooling that will reduce overtime, and provide longer
run cycles before maintenance. In the two changes listed, API should be able to improve
its bottom line almost immediately.
Other changes and improvements brought about by the project are significant and may
require a much longer turnaround before the investment is realized. However, without
the last elements being implemented the full capabilities of the new equipment can never
be achieved.
The final two elements of the project address the benefits of outsourcing the data analysis
to a company that will permit API to take advantage of technology that much larger and
dynamic auto parts companies have without the cost or risk. By leveraging the power of
the Internet, our current customers can place orders more conveniently, freeing the sales
force team to be more robust.
Once the order is placed, the outsourced company will make sure all the appropriate
departments have the correct information reducing input errors and the number of
employees needed for data entry increasing throughput. The outsourced company will

also be responsible for forecasting and monitoring vendors for the best prices after which
it will create the RFQ.
The information in the proposal is valid for thirty days. Mr. French and Mr. Ives are the
only officers of the company authorized to make commitments presented in the proposal.
Please insure that all documentation in reference to the proposal is labeled “Automation
Project” including all electronic communications.
I am well aware of the urgency API has to embark on this project, and I am eagerly
awaiting your thoughts and input regarding this proposal. If you are satisfied with the
proposal, please proceed to endorse this document.
Sincerely,
Mark Forster PM.
President Vice President
Owen French Dick Ives

Executive Summary
The strategic project plan to reduce the costs that are associated with manufacturing wire
form and wire springs is scheduled to launch Monday October 30, 2006 and is scheduled
to conclude no later than Friday November 09, 2007 just over 13 months. The
automation project will involve the purchase of new manufacturing equipment to increase
productivity and quality. The plan will also address the business process flow from order
entry to delivery. Part of the business process will be to mitigate as much risk as possible
while creating the greatest potential for this wire form and spring company.
The program team that has been assembled to execute the project is described in the
organization structure section of this document and their responsibilities are depicted in
the responsibility matrix chart. The work break down structure (WBS) chart illustrates
the task that will be accomplished by the program team during the project. A further
detailed analysis of the tasks and the areas of weakness are illustrated in the risk
breakdown structure chart (RBS).
The budget for the automation project and all the necessary equipment to improve quality
and manufacturing output fully operation is established at $2,500,000. The distribution
of the budget is listed in the resources sheet and the resource usage charts.

OVERVIEW OF PROPOSED SOLUTION
Project Definition
Owen French, President of Automotive Parts Inc. (API) has issued an internal verbal RFP
for the purpose of automating the manufacturing process of the companies wire form and
spring products. The undertaking of this project is to be better able to compete in the
target market through reducing the costs related to manufacturing. API must be able to
match or beat companies who also serve this market in price as well as quality and
service. Mr. Owen has determined that the automation project is a top priority not only
for the company but also for him personally.
Scope of Work
This automation process will be approached from four different perspectives. First, API
will contract with a third party quality assurance agency. The third party quality
assurance agency will be in the vicinity of the manufacturing plant of the raw material
supplier to witness manufacturing of the test sample or select samples from Production.
Documentation concerning the manufacturing process is gathered by the inspector at this
time. By having the quality assurance agency mitigate the risk of inconsistencies in the
raw material, API can eliminate the need for wire gauge checking. The quality assurance
agency will be responsible financially for insuring that all wire meets API’s
specifications via a transfer contract between API and the suppliers of the raw material.
By adding the quality assurance agent between the supplier and API, API can eliminate
the need to check the gage of the wire during production. The main purpose of making
this adjustment first is it requires the least amount of change internally to API with an
immediate cost savings.
The quality assurance agency will be an outsourced company to allow for greater control
over product satisfaction. If for any reason API determines that there is no further need
for inspection of the raw material then API can opt out of the service agreement with
ninety days written notice from an officer of the company.
The second phase of the project involves implementing an Electronic Data Interchange
(EDI) system. An EDI system is designed to allow a customer to order products more
readily, and more transparently. By developing an Internet based ordering system, API
will be more accessible to a global market and allow the traditional sales team to become
more productive. By linking incoming orders with the customer’s files and being able to
notify procurement as to the specific material a customer wants and simultaneously
scheduling a production run for the product seamlessly, even more risk will be mitigated.
Most EDI stand-alone applications are designed for high end users that can designate an
IT manager for the application. However, currently there are a numerous amount of
companies that offer the EDI application as a shareware platform. By outsourcing the
application, API will have the computer capability of a major manufacture at a fraction of
the cost and risk.
The EDI upgrade section of the project will be managed and operated through an
outsourced company to allow for a more transparent and dynamic apparatus, with

minimal risk. If for any reason API determines that there is no further need for the EDI
outsourced firm, then API can opt out of the service agreement by either financially
fulfilling the reminder of the contract period or a percentage thereof. Any and all
terminations of service agreement most be submitted in writing to the outsourced
company from an officer of the company.
The third phase will be the purchasing of new wire form and wire spring machines. The
new machines will be ordered at the time this project is approved, and during the time
that the new machines are being acquired and being delivered, the two previous phases
will be implemented. The intended plan is to not stop current manufacturing methods
and install the new machines after the business day is over. Upon removing the older less
efficient machines, they will either be sold for salvage or scrape and the value of the sale
will be deducted from the new purchase price of the new equipment.
The fourth phase of the project is to install an Enterprise Resource Planning (ERP)
process for integrating manufacturing with other systems in the company for the purpose
of improving product design, controlling manufacturing cost, and planning resource
allocation.
Deliverables
At the completion of the automation project, API will reduce the over all cost of the
manufacturing process. The four phases described in the Scope section of this document
outlines an e-commerce sales, procurement, and inventory up grade that comply with
SOX standards along with new wire form and wire spring machines that meet ISO
9000:2000,QS 9000 automotive standards. At the completion of the project, API will be
more competitive and able to expand beyond their current target market increasing their
stability and livelihood during economic slow down periods.
Acceptance Criteria
The determination for success of the project will be measured in reduced cost of
manufacturing of the product, increased market share, better quality control, better
customer service, and an increase in productivity of the over all company. As a company
looking to venture into a more value-add market, the solution will be able to learn the
ability to embrace any such product development.

Timeline
The duration of the project is expected to take thirteen months, however the cost
reduction for the automation project is estimated to begin within the first quarter after the
project has been approved.
Priority Task Duration
1 To Select a quality assurance agency 1 Month
Sign service contract
2 To Select the new manufacturing equipment 11 Months
Order/Purchase
Install/Train
3 To Select a application software company 9 Months
Sign service contract
Switch over
Multiple phases of the project will be concurrent with one another but not anticipated to
extend beyond the nine-month period in phase 3 of the project. Each phase of the project
is scheduled to deliver the most cost reduction possible within its timeframe. After
placing the order for the machines the quality assurance agent will contracted and the cost
associated with wire checking will be reduced. Then the project is scheduled to
implement a web based ordering system reducing the overhead associated with the
manual order entry system. Each phase of the project is listed with a best and worst case
of how long that phase will take.
Milestones
1. Placing the P.O for the quality assurance agency
2. Hiring the quality assurance agency
3. Requesting the P.O for the new machines
4. Placing the P.O for the new machines
5. Requesting the P.O. for the EDI service
6. Ordering the EDI service
7. Training on the new EDI system
8. Switching the current order entry system and recorded keeping files over to the
EDI service
9. Training for the new equipment
10. Receiving the new machines
11. Installing the new machines
12. Pre-production run of the new equipment
13. The first automated run
14. Purchasing a new inventory control system
15. Training on the new inventory control system
16. Termination Of the Project

Budget
The line items for this project are listed below in the journal
ITEMS Sheet #
IN/OUT
House Cost
Quality Assurance Agency 1 OUT $128,000 Expensed
Equipment 2 IN $1,969,316 Capital
ASP Service 3 OUT $156,598 Expensed
Application Software 4 IN $13,499 Expensed
Severance Pkg. x 13 5 IN 221,000 Expensed Good Well
Cost of the project $2,488,413
Budget $2,500,000
Estimated UNDER budget $11,587
Compensation and Payment
The compensation as it relates to this project is solely intrinsic. By successfully
accomplishing and completing the objective and goals of the project the intent is to
demonstrate the Project Manager’s capabilities for future projects. In that the Project
Manager is an employee of API, the pre-negotiated salary for said employee will service
as Terms and Conditions for payment for employment. For any reason that an employee
of API would participate in or on the automation project, their compensation will be
calculated by charging the hours worked against the project and subtracted from their
department.
Communications Plan
The automation project’s Project Manager will need to communicate with internal and
external factions throughout the project life cycle. All outgoing communication from the
PM will be made through a repetitive system to fully document who, what, when and
were got communicated. This is consistent with ISO, QS, and SOX business standards.
Internal Communications
 Electronic
All electronic messages including Email will have hard copies made of and
placed in the project file under communications. The communication section
of the file is divided into subjections labeled emails, PDF files, brochure, and
general literature. Each subject will be arranged so that the most recent
communication is on top. On the backside of the divider separating the
subsection, will be an index of who and when added the last document.
 Paper (Letters, Memos, Notes)
All paper documents pertaining to this project will be kept in the project file
under communications. The communication section of the file is divided into
subjections labeled Letters, Memos, Notes, Brochure, and General Literature.

Each subject will be arranged so that the most recent communication is on top.
On the backside of the divider separating the subsection, will be an index of
whom and when added the last document.
 Phone- Land Line and Mobile
Communication via the telephone will not be recorded unless specifically
requested by the caller. Telephone logs will be needed i.e. a copy of the
phone bill will be adequate for tracking communication between the PM and
API. The phone logs will be kept in the communication file labeled under
Phone Logs and will be arranged so that the most recent communication is on
top. On the backside of the divider separating the subsection, will be an index
of whom and when added the last document.
External Communications
All external communications between vendors, subcontractors, contractors, regulatory
agencies, and property managers will abide by the previously stated policy for internal
communications. The following bullet points are policies for handling documentation
with external parties.
 Legal Documents
Any and all documents signed, obligating either party to provide goods or
service is to be copied and placed in a sealed folder inside the project folder.
This folder is not to be opened or reviewed for any reason without the signed
and witnessed permission of the CFO or other officers of the company.
Project Manager’s Staff, Roles and Responsibilities
In the table below is an index of team members involved in the project; for a more
detailed analysis refer to the Responsibility Matrix document.
President Owen French Vice President- Dick Ives
Director of Operations -Joe Gallagher PM-Mark Forster
Accounting Department- Kenneth Lay Director of Sales- David Copenhaver
Procurement Manager- Joe Hamamoto Human Resources Manager- Lisa Pruitt
Machine Shop Foreman-Jeff Gordon IT Manager - Bill Gates
Legal- Johnny Cochran Intern-Steve Prchal

Technical Specifications
Machines
The minimum technical specification requested in the RFP and reconfirmed by the
machine shop foremen are listed below for the purchase of new automation equipment.
Table 1-TS
Quantity Production Machines
2 Electronic Wire Gauge Checkers
5 Automated Wire Formers
2 Robotic Welders
With the monetary resources needed to purchase the proper equipment to elevate the
quality and productivity while reducing cost of manufacturing. The project manager
collected data on the machines API’s competitors were using in addition to researching
the Internet and trade magazines to develop a more comprehensive understanding of the
feature on the equipment needed to achieve the company’s objectives. A list of the
features is listed below.
Table 2-TS.
On-screen diagnostics shows alarm status and
corrective action required O.D. control is a standard feature
On-screen display, monitoring individual servo
motor loads with color-coded percentage factor
and overload warning.
Continuous rotation mode insures high speed
production capability
Memory: CPU program capacity of 99, floppy
disc 99 14.9MB CD capacity
Continuous mode and discontinues mode
programming are selectable
Conversational format simplifies programming
Micro Pulse Hand Wheel is used to run every
motor either in manual Mode or Auto Mode for
every set-up and programming
Cam angle and wire length displayed on monitor
Heat Exchanger on the electronics chamber keeps
controls clean
Safety Interlock Sensors are fitted to all sides Easy to read 12.1 color TFT-LCD saves space
Forward and reverse capability for all axes Wire Diameter
Bad spring program capability MAX. O.D.
Computer storage of cam position available for
future set-up MAX. Feeding Speed
Roller Bearing Slides below 2.0mm, gib slides
above 2.0mm
Footprint
Number Of AXES 2D and 3D wire forming
Tensile Strength < 300,000 psi 480 VAC
Service Contract Warranty
Run Time Between Maintenance Time Needed to Change Tool Carrousels
Accessories Network Interface
Training
Each of the items listed in table 2-TS will be the criterion used to determine the model
and vendor of the machines needed for the success and feasibility of the automation
project.

Quality Assurance
In addition to the new equipment that the RFP highlighted there was an overabundance of
attention being spent on wire gauge checking. This process of checking wire is
responsible for overtime and delays in production. However, the elimination of the
process is also not reasonable. Therefore API will implement a new policy and
procedure by which it will reduce wire gauge checking to a random inspection. API
will align itself with a quality assurance agency via a service contract. By placing a
third party in-between the suppler and API the agency will become legally
responsible for insuring that all the resources coming from the suppler are to
specification. By transferring the risk to the agency, API will be able to liquidate
damages such as time and material that could not be claimed before. The
specification for selecting a quality assurance agency are listed below in table 3-TS
Table 3-TS
Process Inspection
Find the root cause of the production defects detected during final inspection
Verify the execution of Corrective Action Report (CAR) by the suppliers inspection team
Inspect poor quality linkages at different production stations
Product and component quality inspection before assembly
Identify suppliers weaknesses in the production system that leas to defects
Laboratory Testing
Use Customer on-site supplier test equipment for product testing evaluation
Use Supplier's Factory laboratory and equipment for sample testing
Use an external approved Test Laboratories for calibrated testing
Final Inspection
A 100% Factory Inspection
A Random Inspection
Line Inspection
Out of Box Inspection
Inspectors
Accumulated work experience in previous production, quality, and technical work.
Specialized in products in either electronics or automotive engineered products
Reasonably good written and verbal English skills
Know how to generate effective supplier/customer feedback
Application Software Service Provider
The application software for this part of the automation project is typical of most other
software a company might purchase to leverage their capabilities against other business
in the market. In conducting the research for API, it has been determined that a multitude
of stable well backed and trusted software companies run applications for small and
medium size business as a service. By outsourcing the application API does not have to
hire a software specialist or keep current with new versions of the software. Below is a
table that list the criteria needed to select an Application software company.
Table 4-TS

Increase your EDI order processing efficiency
Automate the document flow between you and your customers
Minimize problem resolution time
Improve communication with PO Acknowledgements and Advance Shipping Notices
Translates incoming EDI and XML transactions into easy-to-read documents on your desktop
Provides ability to turn around Purchase Orders into ASN's and Invoices
Sends electronic documents on your desktop back to customers as EDI or XML transactions
Improve your "Order Cash" cycle
Speed customer matching of Invoices with Purchase Orders for faster payment
Correct invoices before they age by receiving immediate notification from customers of
invoices with problems
Receive electronic, ACH deposits for faster payment of your invoices
Collaborate with demand forecast information to reduce days of inventory coverage
Make your company less expensive to buy from
Reduce your customers' Accounts Payable problem resolution time
Standardize your customers’ buying process with you
Keep buyers and expeditors informed with Acknowledgements and Advance Shipping Notices
Improve your customers' ability to utilize "faster pay" programs such as rebates
Make your company easier to do business with
Increase proactive customer sales and service activities without additional overhead
Share more information with your customers – easily and electronically
Training
Initial Training Class
New Hire Training Class
Current Industry Seminar

Proposal
In the overview, section of the proposal an ambiguous concept was presented for
consideration, and the more comprehensible plan is detailed in the following section of
this document. By providing a clear understanding of the goals, objectives, time,
resources, risk, and benefits, API’s executive members will be able to determine the
extent of commitment they choose to enter into.
2. Quality Assurance Agency
2.1 Current Situation
The current situation is that API has allocated $302,000 annually for wire
gauge checking and eleven employees with full benefits and worker
compensation benefits, that all affect the cost of manufacturing. In addition
to the cost associated with wire gauge checking, the operation of checking
the finished product as frequently and as thoroughly to maintain an
acceptably product reduces the overall output of the production line, limiting
the volume needed to reduce cost.
2.2 Recommendation
The recommendation to minimize the impact that wire gauge checking has
on manufacturing demands a paradigm shift it the current procedures and
policies of API. The shift referred to is to move the responsibility of
checking the wire from an internal process to an external process. By
outsourcing the wire checking procedure, the inbound material a.k.a wire
will no longer need to be checked as frequently during or after
manufacturing.
2.2.1 Location
The quality assurance agent is physically located in the suppliers facility
wherein the agent can examine every part of the assembly process of the
supplier. By being able to by in direct contact with the wire throughout
the process the agent will be able to conduct laboratory test, tensile
strength test, and wire gauge thickness tolerance test before the product
ever leaves the assembly center.
2.2.2 Benefits
The benefits of hiring an third party to be responsible for the quality of
the wire used in manufacturing can be realized in increased productivity,
reducing the cost of manufacturing through not requiring as many
employees in the process. An additional benefit that comes from hiring
a third party quality assurance agency that API had no recourse for
previously is that by transferring the responsibility, API can also transfer
the financial fallout from delivering out of specification parts.

2.2.3 Risks
The identified risk associated with outsourcing a previously in-house
procedure critical to the manufacturing process will be mitigated through
legal contract agreement typical within the industry. Transference
contract service as an insurance policy between the suppliers and the
manufacturers and like with an insurance policy if a failure occurs the
insurance company pays a claim to recover the cost of time and
materials lost.
By having the quality assurance agency under contract allows API the
flexibility to determine the length service and the satisfaction of that
service.
Additional project risks associated with the shift in procedure can be
seen in the document titled “Risk Breakdown Structure”
2.2.4 Selection of Quality Assurance Agency
In evaluating the best-qualified candidates for the quality assurance
agency contract a list of requirements was developed using the Project
Manager’s and Machine Shop Foreman’s experience. The list of criteria
by which every RFQ was evaluated can be found in the Technical
Specification section of this proposal. After the RFQ’s had been
condensed to the final two agencies a final evaluation comparing the two
agencies against each other. That screening process outcome is
available in the document titled Scoring and Screening QAA. Beyond
determining the two best agencies, each agency submitted a company
profile and the agency that was chosen had their profile added to this
proposal. The profile is located in the section titled “PROFILES”
2.2.5 Time
The two time factors for consideration are how long will it take to
implement this element and the other is how soon can API expect to see
a cost reduction in manufacturing. The length of time need from once
the PFQ is responded to till the service agreement is signed will take
eight weeks. The cost reduction could be recognized at the end of the
first quart of business after the service agreement is signed. A detailed
breakdown of all the activities involved in executing this section of the
project are available in the Gantt chart under WBS 2.0.
2.2.6 Cost
The preliminary costs associated with the service are estimation based
on the full capabilities of a quality assurance agency with no long-term
agreement. However, the preliminary budget for the service is set at
$128,000 annually and can be paid in quarterly deductions. The
immediate cost savings from the current situation creates a $174,000
saving. A detailed cost analysis of this element can be found in
document titled QAA Budget

3. Equipment
The current situation is that API’s manufacturing process requires thirty-
one (31) employees at an annual cost of $1,348,000, to operate five
antiquated machines that require maintenance and repairs that are all out of
pocket expenses. In addition to repair cost the older machines do not meet
the federal guideline for being energy efficient, consequently creating higher
then need be electrical cost. Furthermore, the company’s current policy
allows for a three-shift work schedule, two of which are during the highest
cost of production periods of the workday.
3.2 Recommendation
The equipment recommendation for reducing the cost associated with
manufacturing is to replace the existing equipment with new greener energy,
highly versatile, and significantly more efficient equipment. Then buy
implementing the new equipment API can implement a new policy change
that will have the majority of the manufacturing process conducted between
the hours of 11PM EST. and 6AM EST. this is the off peak hours for the
electric company offering a five percent cost saving on the electric bill.
By changing the equipment, the number of employees need to operate that
equipment, and when those employees work API can take full advantage of
every cost savings benefit leaving nothing on the table.
3.2.1 Location
The location of the new equipment will be installed in the machine shop
portion of the building in tandem with the existing machinery for a
period of transition. However, the manner in which the equipment is
situated well be altered. After reviewing the floor plan layouts of
assembly lines in Japan, China, and the Philippines it has been
determined that by placing the new equipment in a horse shoe shape
with the open end facing the shipping and receiving area. An increase in
productivity and performance can be reached. The horseshoe shape
allows for fewer employees to operate more equipment.
3.2.2 Benefits
The benefits gained in purchasing the new equipment will be an
increase in productivity, a greater product offering potential, low
operating cost, longer run times between maintenance periods, and an
extended warranty period to eliminate the replacement cost of broken or
worn-out parts. In addition service contracts are available that are so
compressive that if a machine can not be repaired with in 24hrs a new
machine will be brought in and setup.

3.2.3 Risks
The known risks for purchasing new equipment are illustrated in the
Risk Break Down Structure. However, to reduce or mitigate the risk
associated with many of those items is a matter of changing policy and
procedures within the company that require no financial commitment but
offer a return or cost savings.
3.2.4 Selection of New Equipment
With the monetary resources needed to purchase the proper equipment
to elevate the quality and productivity while reducing cost of
manufacturing. The project manager collected data on the machines
API’s competitors were using in addition to researching the Internet and
trade magazines to develop a more comprehensive understanding of the
feature on the equipment needed to achieve the company’s objectives.
Each of the items listed in the document titled Technical Specification
table 2-TS will be the criteria used to determine the model and vendor of
the machines needed for the success and feasibility of the automation
project.
3.2.5 Time
The length of time need from once the RFQ is responded to till the
equipment is installed and functioning will take 107 weeks. A detailed
schedule of all the activities involved in executing this section of the
project are available in the Gantt chart under WBS 3.0.
3.2.6 Cost
The overall budget for this section of the project is set at $1,735,712
and a detailed listing of how the money will be allocated is listed in the
document titled “New Equipment Budget”
3.2.6.1 Accounting Procedures
The Minimum Accepted Rate of Return (MARR) at which to determine
whether to proceed with the project has been set at 5% in accordance
with the industrial standard of net profit.
The Company’s policy for deprecating equipment is to deprecate the
cost evenly over a ten-year period of time.
3.2.6.2 Recording Cost of Equipment20
RECORDING COST OF EQUIPMENT
The accounting office must establish the cost of newly acquired
inventorial equipment on a monthly basis, following notification by the
Equipment Management

Department that the equipment was received in good condition. The cost
of each item is based on the invoice price (see Section III.B., Costing
Equipment). Under no circumstances should the cost be established any
later than the 25th day of the second month following receipt of the
equipment. The only exception allowed is for equipment purchase
orders fully or partially on hand at June 30 which, for fiscal closing
purposes, should be included in the annual equipment inventory register
for the fiscal year in which the equipment was received.
ACCOUNTING FOR LATE COSTS
If additional costs are incurred subsequent to the recording of the initial
acquisition costs for items of inventorial equipment, such costs must be
added to the initial cost of those items.
RECONCILING COST OF EQUIPMENT
For each item of inventorial equipment, the costs recorded in the
Inventorial Equipment Register are reconciled, on a monthly basis, with
the amounts paid for the equipment as reflected in the General Ledger.
In addition, the cost of equipment acquired from the storehouse or
constructed by the physical plant department is listed and reconciled to
the expenditures reported in the General Ledger. At fiscal year-end, the
amounts reported on the University's financial reports for each item of
inventorial equipment must equal the amounts reported in the Annual
Equipment Inventory Register. If there is a discrepancy between the cost
recorded in the Inventorial Equipment Register and the cost recorded in
the General Ledger, the amount reported in the Inventorial Equipment
Register may be adjusted to agree with the amount in the General
Ledger, provided the discrepancy is significant in the judgment of the
accounting officer.
COSTING EQUIPMENT
The unit cost entered into the equipment inventory system consists of
costs for the following:
1. Major items of equipment (less any discounts taken) ;
2. Accessories needed to make the equipment usable;
3. Installation, excluding costs for reassembling equipment dismantled
for shipment;
4. Freight, provided the amount was included in the invoice for major
items of equipment. Also, freight charges may be included as a cost
element where the charges represent a significant cost factor in the
acquisition of the equipment, even if the charges are billed separately
from that equipment.
5. Taxes (sales, excise, use, duty); and
6. Insurance costs to cover the equipment while in transit.

RECONCILING EQUIPMENT ACQUISITIONS
The monthly Reconciliation of Value Recorded and Amount
Paid for Equipment report (EQ 080) is used to reconcile equipment
acquisitions. The report is a comparative listing, in purchase order
sequence, of all object-coded9XXX entries recorded in the General
Ledger and the corresponding equipment cost data recorded in the
4.0 Selection of Association of Shareware Professionals (ASP)
The current situation as it relates to a digital infrastructure wherein
customers, vendors, and departments are seamlessly linked to create a
dynamic throughput has never been addressed in the API Company.
4.2 Recommendation
The recommendation for API is to outsource an electronic data interchange
(EDI) system wherein API can leverage the capabilities of a tremendously
complex and costly stand-alone program. The purpose of the EDI system is to
avoid and prevent additional human intervention in reading and processing
information between trading partners by establishing a standard
communication throughput method. By allowing customers to order directly
from the manufacturer and the manufacturer to order supplies directly from
the most competitive supply channels a greater profit can be achieved.
The process and qualification for selecting an EDI service provider were
developed by the IT manager in conjunction with the PM to create a RFQ
wherein the applicants would be reduced to the final two candidates. The list
of qualifications are listed in the document titled “Technical Specifications”
table TS-4
4.2.1 Location
The server resides in the ASP hosting facility. API receives the
resources of ASP’s primary hosting facility. Optionally, provisions can
be made to facilitate fail over to ASP’s secondary hosting facility. The
advantage once again is that the maintenance, upgrades, monitoring, and
report generating are all handled offsite. Reducing the risk and
increasing the benefits of a high end software package.
4.2.2 Benefits
Those companies that have made the most extensive use of EDI have
found that even though the quantifiable benefits are significant, it is the
strategic benefits of electronic reengineering that really are the most
valuable to the organization.
These strategic benefits include:
• The quality and speed of service to customer is improved.
• The organization's competitive edge is enhanced and operating costs are
reduced throughout the organization.

• Trading partner relationships are strengthened by helping them reduce
costs while offering improved customer response.
• Timely marketing information creates improved sales forecasting and
business planning.
• Employee energies are focused upon more productive business activities,
which yield higher profits and improved staff moral as a result of job
enrichment.
4.2.3 Risks8A
* Inherent Risk
The vulnerability of an EDI system is high because the failure of the
system in any of its three stages - initiation, transmission, and
destination - will corrupt transactions.
* Unauthorized Intruder Accessing Information
In EDI, inter-organizational communication takes place over the
network. Public networks used for sending and receiving transactions
may be tapped to intercept transactions. Thus, information is
susceptible to interception not only at origination and destination
nodes, but also during electronic transmission. Access controls
designed to defend against unauthorized initiation of transactions
include passwords, dial-back mechanisms, user identification, storage
lockout, and different levels of access. Control activities to foil
interception during transmission include routing messages through a
secured medium, encryption, traffic padding, and confidential
electronic envelopes.
* Loss of Data Integrity
Corruption of data may occur as a result of erroneous input, poor
communication lines, deliberate modification, or malfunction of
hardware or software. The public networks over which documents are
sent among trading partners are generally not protected, and
documents can be read or altered by anyone who has access to the
network.
Controls for data integrity ensure that contents of the message have not
been altered. These controls include notarization mechanisms,
acknowledgment protocols, computerized audit trails, digital
signatures, and edit checks.
* Lack of Transaction Completeness
The transactions sent over the communication media are sometimes
lost during transmission. If an acknowledgment from the receiver is
not received within an agreed-upon time period, then the transaction is
presumed to be lost and is retransmitted.

In such circumstances, the transaction may appear twice at the
destination. The risk is that the EDI system may not be able to detect
missing, mis-sequenced, or duplicated transactions. Batch totals,
sequential numbering, acknowledgment control, and one-for-one
checking against the control file are among the control mechanisms
that can be used to reduce the inherent risks due to lack of transaction
completeness.
*Unavailability of the EDI System
Human actions, logical reasons, and/or environmental factors may
cause the EDI system to become unavailable. Employees'
unintentional mistakes, such as deletion of data and lack of proper
compliance with roles and procedures, generally cause the
unavailability of EDI systems; but natural disasters, vandalism,
criminal attacks, strikes, or lockouts may also be culprits.
The communication network is an integral part of EDI, which means
that viruses and hacking may also occur. In addition, viruses may
spread through the transactions and programs traveling among the
trading partners. Off-site backup, redundant arrays of integrated disks
(RAID), disk mirroring, fault tolerance, and anti-virus packages can be
used to minimize the unavailability of an EDI system.
4.2.4 Selection of ASP
In determining the specification for creating the RFQ the PM, IT, COO,
and the VP had been consulted for information as to what they needed to
make their jobs more productive. The list from which the RFQ’s had
been evaluated by and reduced to the final two candidates is list in the
document titled “Technical Specifications” table TS-4
4.2.5 Time
The length of time need from once the RFQ is responded to till the ASP
service provider is fully implemented and tested will take 52 weeks A
detailed schedule of all the activities involved in executing this section
of the project are available in the Gantt chart under WBS 6.0.
4.2.6 Cost
The cost of the ASP service to provide and maintain includes software
upgrades, IT equipment at the far and near ends of the network,
installation of that equipment, and training on the new system for six
employees for a cost of $156,598. A breakdown of the disbursement of
resources can be located in the document titled “ASP Budget”

5. Application Software (Inventory Control)
API currently is not using any type of inventory control system outside of
physical counts once a year. The annual inventory accounts for an
approximately 36% version in inventory that requires an additional six
months to investigate and may or may not ever be ratified.
5.2 Recommendation
The recommendation for increasing the accuracy and dependability of the
inventory is to acquire a inventory control system. A system that would
allow API to offer their channels an (JIT) Just In Time inventory flexibility.
Many of the well known and well establish software products currently on
the market like ASP and Profit 21 are very expensive and require a full time
programming staff to handle errors. The middle ground would be to
develop arrangements with API’s suppliers to produce and ship enough
material to last thirty days, and then delay invoicing the shipment till the
product is used. Then API could purchase an inventory control system off
the self and upgrade to the more elaborate programs later.
5.2.1 Benefits
The benefits to better monitoring the inventory control are straightforward
better knowledge of what API has the faster the cycle time reducing the loss
income due to the channels turning to suppliers that have the product on
hand or can get it in short order. The benefit of arranging for API’s supplier
to produce and ship product will most likely be realized during the extreme
bad weather conditions of the northeast cost. By allow them to ship the
product they can be assured that that product will be sold and API is not
required to account for the product till they need it. Other benefits of JIT
software are:
• Streamlined data entry
• Create item kits/matrix
• Manage inventory by your own rules
• Reduced paper work
• Faster order fills
• More productive staff
• Unlimited roles and permissions
• Single point system administration
• Streamlined data entry
• Better time management
• Better customer service
• More productive staff

5.2.2 Risks
JIT inventory control is a software application that resides on a
Computer and if that computer fails, all the data could be lost. However
to mitigate that risk backup systems can reduce the likelihood of total
lose. Risks are also realized in the transfer of data from one system to
another and to reduce that risk a spot check inventory can be arranged
weekly.
5.2.3 Selection of Application Software
The process and requirements for selecting an application software for
improving inventory control were developed by the IT manager in conjunction
with the PM to create the criteria for purchasing off the shelf software. The
list of requirements are listed in the document titled “Technical
Specifications” table TS-5
5.2.4 Time
The time required to select purchase and install the application software
will only take two months. The training will be done on site under live
fire; acclamation is not expected to take more then six months.
5.2.5 Cost
The cost of the application software can be located in the cost section of
this document subtitled “Application Software Budget” Sheet 5

Quality Assurance Agency
About Our Work
AMREP IN QUALITY MANAGEMENT
AMREP is an unexpected creation of the IBM International Procurement Office. We
gained supplier control methods and techniques from working with their offices
throughout Asia. In 1983 AMREP created the AMREP Quality Management Centre
(AQMC) and worked with Dr. Joseph Juran and the Juran Institute in re-introducing
Juran’s concepts on TQM and Quality Control. Dr. Joseph Juran with Edward Deming
were the 20th century gurus of quality management. AMREP trained many suppliers,
including Texas Instruments, Shell, Esso, on the use of Quality Improvement Teams,
Quality Analysis and Quality Planning. In 1990 AQMC started ISO 9000 training and
certification of auditors. AMREP’s current Quality Auditors are certified to TQM
methods, SPC techniques, ISO 9000 and FDA regulations. They are also trainers.
GLOBAL ORGANIZATIONAL SETUP
In 1981 AMREP Vendor Inspection Services became the first and only company to begin
supplier source inspection work on Asian suppliers for IBM.
In 1983 AMREP created the AMREP Quality Management Centre (AQMC) and
worked with Dr. Joseph Juran and the Juran Institute in re-introducing Juran’s concepts
on TQM and Quality Control to Asian suppliers. Dr. Joseph Juran is one of the 20th
century gurus of quality management.
In 1990 AMREP started ISO 9000 training, certification of auditors and consulted Asian
suppliers on ISO 9000 QMS implementation.
By 1995 AMREP concentrated only on Supplier Quality Management Services to
International Procurement Offices and major US corporations sourcing from Asia.
By 1998, AMREP International Network covered key Asian countries and Mexico, and
in other countries where suppliers had originated or had transplanted itself to another
country.
Today AMREP has a multinational mix of over 150 employees located in different
countries that specialized in Supplier Source Inspection, Quality Management and
Supplier Procurement Management.
AMREP has a low employee turnover. AMREP is operated on an employee-ownership
inducement policy.

MOST COMMON SUPPLIER PROBLEMS
When a customer decides to use AMREP it is because he has a purchase contract with a
supplier and it is too late to cancel the order, change the supplier or get the supplier to fix
the problem before or after delivery. Here are some of the supplier headaches for
customers. AMREP can only solve some supplier problems if the customer does execute
its preventive plan.
> Read More
ANTI-CORRUPTION BARRIER
AMREP only serves its customers well if AMREP Supplier Quality and Technical
Specialists do value added jobs for our customers. Most suppliers are co-operative. Some
suppliers are keen to use AMREP as independent inspectors to help improve their
product quality. Some are willing to give money to other inspection companies and their
inspectors to overlook quality problems in order not to delay shipment to their customers.
EFFECTIVE OUTSOURCED SUPPLIER MANAGEMENT
Many companies have moved into strategic outsourcing with its primary focus on
manufacturing suppliers in China. Strategic outsourcing as is understood in the US
includes:
a. Identifying potential suppliers
b. Requesting Quotations
c. Analyzing preliminary expenses
d. Negotiating contracts
e. Monitoring and Improving Suppliers.
ANNOUNCEMENT
SKM Consulting located in Saudi Arabia is now the Licensed Associate of AMREP
Global Supplier Management Services. AMREP-SKM will provide traders, buyers and
businesses in the Middle East with the service capabilities to identify suppliers, qualify
the suppliers’ production and work capabilities, and check on the supplier product
quality. Pre-shipment and Pre-Delivery Inspection of consumer product are done by
AMREP Buyinspect. Technical inspections are operated by AMREP VENDOR
INSPECTION Services.
Contact : Jimmy John, SKM Consulting on jimmy@SkmConsult.com or Gabriel Suarez at
gsuarez@amrepinspect.com

Supplier Inspection in USA, Quality Inspection Services - AMREP USA
AMREP NORTH AMERICA (ANA) has a core quality and engineering team with over
500 specialist associates located in different parts of the USA to support customer
requirements on Supplier Inspection, Supplier Managment and Quality Inspection. Some
of these customers that have used AMREP within the USA include:
• Cubic
• Qualcomm
• Nortel
• Sharper Image
• Lucent Technologies
• Universal Electronics International
ANA undertakes supplier audits, process improvements and WIP inspections using
ANA time based associates deployed at remote locations. ANA technical and
manpower resources help customers to reduce time and manpower costs by using ANA
associates on short-term projects.
ANA has three main marketing and operations office specializing in quality inspection
and supplier inspection services.
AMREP EAST, Fort Lauderdale
AMREP Las Vegas, Nevada,
AMREP WEST, San Diego California.
Looking for Quality Inspection or Supplier Inspection Services in other countries?
China Supplier Inspection India Supplier Inspection
Japan Quality Inspection Malaysia Quality Inspection
Mexico Supplier Inspection Philippines Quality Inspection
Singapore Quality Inspection South Korea Quality Inspection
Taiwan Supplier Inspection Thailand Supplier Inspection
USA Quality Inspection

Clients
This is a display of some the type of customers we service.
• IBM
• DELL
• AT&T
• MAXTOR
• PHILIPS
• INFOCUS
• EMERSON
• IOMEGA
• HEWLETT
PACKARD
• PLANTRONICS
• RADIO SHACK
• WESTERN
DIGITAL
• LEXMARK
• NEW YORK
AIRBRAKES
• LUCENT
TECHNOLOGIES
• SUN
MICROSYSTEMS
• CREATIVE
TECHNOLOGIES
• SCHUMACHER
ELECTRIC
• HANDSPRING
• SYMBOL
TECHNOLOGIES
• SYNAPTICS
• MOTOROLA
• ITT ELECTRO
OPTICAL
• INVENSYS
• BAYER
DIAGNOSTIC
• KV
PHARMACEUTIC
ALS
• HEXCEL
CORPORATION
• ROCKWELL
• ROVER
• CALLAWAY
GOLF
• HOME DEPOT
• DIGIDESIGN
• PHOTON
DYNAMICS
• SONY
• SOLECTRON
• FLEXTRONICS
• EVEREADY
BATTERIES

Forming Systems Inc. specializes in spring making, spring grinding, wire
forming machinery, and spring testing equipment.
Forming Systems, Inc. is dedicated to providing spring making and wire forming
customers with the best possible production solutions. FSI offers HTC spring
machinery for spring coiler or spring former applications, plus HSI spring making
production accessories such as inline conveyor ovens for stress relieving, spiral
ovens, box ovens, part collectors, and payoff reels.
FSI also provides TBE wire forming machinery, Whitelegg wire bending machinery,
and Jaykase CNC tabletop benders for wire and strip materials. Spring testers from
Spring Analysis Systems, Inc. (SAS) include compression spring testers, torsion
spring testers, extension spring testers, spring fatigue testers, and deflection spring
testing.
Forming Systems, Inc. specializes in providing production solutions for spring making
and wire forming customers. If you require spring machinery, 2D wire bending
machinery, 3D wire forming machinery plus production accessories such as inline
conveyor ovens for stress relieving , spiral ovens, box ovens, part collectors, payoff
reels, or spring testers, FSI can provide the answer.
Markets Served:
Spring Making
Spring Testing & Analysis
Spring Setting
Spring Grinding
Spring Automation (high volume)
Wire Bending – 2D
Wire Forming – 3D
Wire Forming & Welding
Wire Form Automation (2D or 3D)
Ring Coiling
Ring Coiling & Welding
CONTACT US
For more information about any of our products, please feel free to contact us:
Toll Free: 877.727.FORM
Phone: 269.679.3557
Fax: 269.679.3567
E-mail: info@formingsystemsinc.com
Forming Systems Inc., for all your needs in spring making and wire forming
machinery and spring testing equipment.

Vendor’s To Forming Systems, Inc.
Recent Announcements
High Speed Wire Payoff
HSI has introduced two new high-speed wire payoff systems for small wire diameters.
The new VR-80 offers high-speed spool payout of material for wire diameters up to
0.031" (0.8mm) and weight capacity of 180 lb (80 kg). Dancer arm and motor brake
ensure smooth operation at high speed. The VR-80 is ideal for products such as garter
springs. Also new is the AR-100 offering the same features, but designed for high speed
payoff from coil materials up to 0.063" (1.6mm) and weight capacity of 220 lb (100 kg).
Available exclusively from Forming Systems, Inc.

When you hear "X12", do you think of a prototype space vehicle, or your second language? Does the
word "VAN" make you think of something other than a shag carpet and bubble windows?
If so, then 1 EDI Source is looking for you.
The former Silk Mill, on the west bank of the
Cuyahoga River, is the home of 1 EDI Source, Inc. Located adjacent to the Riveredge
Park and the Cuyahoga River, this 1837 landmark building has come back to life.
The multi-storied building, originally intended to serve as a silk mill (hence the name)
never lived up to its proposed purpose because the mulberry trees necessary for feeding
the silk worms did not thrive in this climate. Following that use, the building served as
both a cotton and an alpaca mill, a machine shop and as a dress factory, a furniture
factory, a torque-converter factory, and a box factory.
1 EDI's renovation of the building was undertaken with a sensitivity to the structure’s
historic significance by maintaining many of the original construction features such as
exposed beams, high ceilings, wooden floors and original masonry components. The
unique setting and design components of the Silk Mill offer a one-of-a-kind work
environment.
Purpose
1 EDI Source, Inc. was established to provide affordable EDI solutions and expert EDI
advice to companies of all sizes.
1 EDI Source is made up of an expert team of technicians, programmers, and consultants,
all of whom work together to ensure that your EDI solution fills your needs.
1 EDI Source boasts thousands of clients - ranging from the independently owned, single-
person operation to international corporations where reliable EDI is crucial to the
operation of the business. Whatever your goal is in regard to EDI, we can help you
achieve it.

 Looking for an inexpensive set-up, one that can be operated and maintained by
non-technical people? We can help you with that.
 Does your company require a detailed technical analysis? If your goal is to
integrate EDI functionality into a sophisticated environment, we're ready to help.
We usually find that companies such as yours are asked to implement EDI with
inadequate information. There are many avenues to investigate, and we are often told that
EDI vendors don't take into consideration your company's individual needs.
Selecting the right product is the starting point of the relationship that we want to build
with you. We are staffed with a unique team of people who will offer you a no-nonsense
approach to service. And with the majority of our employees on site, we have the ability
to interact and communicate. Your needs are discussed among a team of experts who
strive to deliver quick and exceptional responses. Your questions will be met with clear
and knowledgeable answers by highly trained technicians.
In addition, the variety of EDI experiences held by each team member adds to our ability
to access your needs and overcome your obstacles. If your needs require a custom
solution, we have the capability to create it.
Manufacturers recognize that, without a viable EDI solution, they risk losing business.
Prior to becoming a vendor, a company is frequently asked details about its EDI, such as
the EDI ID, VAN, and ability to exchange specific transactions. In many instances, even
test POs must be received using EDI. 1 EDI Source has successfully enabled
manufacturers of all sizes to meet vendor requirements. With the ability to exchange EDI
transactions, suppliers have a greater chance of attracting new business.
EDI is vital for any business to grow, and retailers understand the extent of its use. All
facets of the retail industry-including hardware, clothing, and grocery stores, to name just
a few-recognize the need to open the EDI lines of communication in order to
communicate with manufacturers, warehouses, and transportation carriers. EDI involves
more than purchase orders and invoices; it includes advance ship notices, shipping
schedules, and routing and carrier instructions.
Product
Fast, simple, cost-effective. WebSource makes EDI compliance a snap
WebSource is the turn-key solution for companies who are not interested in setting up an
in-house EDI operation, with the trained staff that would normally be required. The
WebSource product becomes a proxy which communicates with the trading partner(s) on
your behalf. Using a friendly web interface, EDI transactions can be recieved, edited and
sent as easily as an e-mail.

WebSource receives EDI data from your trading partner, and converts it into a friendly
display for your review. Sending data to your partner is as simple as filling out a form,
and clicking send. WebSource seamlessly transforms your data into EDI and transmits it
to your partner.
Sophisticated features like form pre-population, carton packing, and UCC-128 label
printing save you time, and money.
Features
 Streamilines data-entry by pre-populating outbound forms using data from the
inbound form (i.e. Invoices can be pre-populated with data from the
associated Purchase Order). This is known as a "Turnaround".
 All transaction types are supported, including those based on HIPAA, X12,
EDIFACT, VICS, and UCS to name a few.
 Data-entry errors are reduced by setting default values, using drop-down lists,
and automatic form calculations.
 Transaction forms are completely customizable.
 New transactions can be created by receipt of data from a trading partner, the
turnaround of trading partner data, data-entry, or uploading a file.
 Supports all shipping methods, including standard carton and pick & pack.
 Integrated UCC-128 label-printing capability, including the generation of UCC-
128 numbers.
 Role-based permissions model allows a very high degree of customization of
user rights. For example: The front-office receives a purchase order and is
only permitted to turn it around into a purchase order acknowledgement or an
invoice. Meanwhile, someone in the warehouse is able to turn that same
purchase order into UCC-128 shipping labels.
 No EDI staff required
 No software required
 No training required
 No EDI knowledge required
 No maintenance or support
contracts
 No EDI system management
 No VAN charges
 Fast implementation
 High-speed document transfer
 Integrates into accounting system
 Custom reports available
 Carbon copies

Recent News Articles
Press Release Source: 1 EDI Source, Inc
1 EDI Source, Inc. Introduces 'EDI SmartXchange for
Suppliers' to the Supply Chain Professionals at U Connect
07, The GS1 US Community Event for Standards
Tuesday November 14, 1:43 pm ET
CLEVELAND, Nov. 14 /PRNewswire/ -- 1 EDI Source, Inc., a leading provider of Electronic Data
Interchange (EDI) Software and Consulting Solutions, today announced their participation at U
Connect 07, The GS1 US Community Event for Standards AND the introduction of their niche supplier
product, EDI SmartXchange for Suppliers. The 2007 U Connect Conference for the supply chain
standards industry will be held June 4th - 7th in Orlando, Florida.
EDI SmartXchange for Suppliers has been designed specifically for 2nd and 3rd tier suppliers. This will
allow companies to enable suppliers of all sizes with EDI capabilities. These suppliers would not have
been able to achieve EDI compliance on their own, due to cost or technology barriers.
EDI SmartXchange for Suppliers provides a web-based interface to non-EDI compliant suppliers. EDI
SmartXchange for Suppliers acts as a gateway, accepting outbound EDI data from an EDI system and
sending EDI data back to it. The EDI enabling of non-EDI compliant suppliers happens transparently.
EDI SmartXchange for Suppliers supports any type of EDI transaction set including purchase orders,
invoices, advance ship notices, shipping schedules, routing documents, carrier instructions, etc.
1 EDI Source, Inc. manages all hardware/software requirements, tests and implements relationships,
and handles the day-to-day operations of the EDI SmartXchange for Suppliers helpdesk.
Steven Zabel, Vice President of Marketing for 1 EDI Source, Inc. stated, "We are excited about U
Connect 2007 and the opportunity to introduce EDI SmartXchange for Suppliers to the supply chain
professionals that will be in attendance. EDI SmartXchange for Suppliers makes it possible for
suppliers of ALL sizes to achieve 100% EDI compliance quickly and efficiently."
About 1 EDI Source, Inc.
1 EDI Source, Inc. provides affordable EDI solutions and expert EDI advice to companies of all sizes.
An expert team of employees consisting of technicians, programmers, and consultants work together
to ensure each EDI solution is a success. 1 EDI Source boasts thousands of clients ranging from the
independently owned, single-person operation to international corporations where reliable EDI is
crucial to the operation of their business.

About Advance Ware Solutions Inc.
We could try to impress you with executive biographies, mission
statements and all that other Fortune 500 style bafflegab. But, if you're
like us you've seen it all before and quite frankly find it just plain boring.
So, we'll tell you the important stuff - the stuff you want to know and
should know before you buy into any software system.
Business Model:
Develop easy to use affordable software for inventory and order management
incorporating features of tier one warehouse management applications.
Objective:
Automate supply chain transactions, improve workflow and maximize user profits
Future:
Add accounting modules to create ERP that delivers market leading ROI
Years In Business: 8
Locations: New York & Toronto
Development Team: full time - not contract or sub contract
Total Users: 3000 +
Support: direct - Mon - Fri
9 AM to 5 PM EST
Release Schedule: new version every 12 - 16 months
incremental updates - monthly
Target Market:
small to medium sized distributors, wholesalers, resellers, web retailers, light manufacturers &
assemblers
Technology Partners
Intuit:
Premier Members of Intuit Developer Network (rated '5 Stars' by QuickBooks Solutions
Marketplace)
Microsoft: .
Net 'Gold Certified' application - read Microsoft's' AdvancePro case study here
AdvancePro uses Microsoft's SQL database
Crystal Reports:
AdvancePro incorporates Crystal Reports for Visual Studio .NET
Thawte:
SuperCert from Thawte allows use of 128-bit browser independent encryption
Authorizenet & VeriSign:
AdvancePro incorporates both of these automated payment processing, e-commerce merchant
service providers services

Technical Specifications
Machines
The minimum technical specification requested in the RFP and reconfirmed by the
machine shop foremen are listed below for the purchase of new automation equipment.
Table 1-TS
Quantity Production Machines
2 Electronic Wire Gauge Checkers
5 Automated Wire Formers
2 Robotic Welders
With the monetary resources needed to purchase the proper equipment to elevate the
quality and productivity while reducing cost of manufacturing. The project manager
collected data on the machines API’s competitors were using in addition to researching
the Internet and trade magazines to develop a more comprehensive understanding of the
feature on the equipment needed to achieve the company’s objectives. A list of the
features is listed below.
Table 2-TS.
On-screen diagnostics shows alarm status and
corrective action required O.D. control is a standard feature
On-screen display, monitoring individual servo
motor loads with color-coded percentage factor
and overload warning.
Continuous rotation mode insures high speed
production capability
Memory: CPU program capacity of 99, floppy
disc 99 14.9MB CD capacity
Continuous mode and discontinues mode
programming are selectable
Conversational format simplifies programming
Micro Pulse Hand Wheel is used to run every
motor either in manual Mode or Auto Mode for
every set-up and programming
Cam angle and wire length displayed on monitor
Heat Exchanger on the electronics chamber keeps
controls clean
Safety Interlock Sensors are fitted to all sides Easy to read 12.1 color TFT-LCD saves space
Forward and reverse capability for all axes Wire Diameter
Bad spring program capability MAX. O.D.
Computer storage of cam position available for
future set-up MAX. Feeding Speed
Roller Bearing Slides below 2.0mm, gib slides
above 2.0mm
Footprint
Number Of AXES 2D and 3D wire forming
Tensile Strength < 300,000 psi 480 VAC
Service Contract Warranty
Run Time Between Maintenance Time Needed to Change Tool Carrousels
Accessories Network Interface
Each of the items listed in table 2-TS will be the criteria used to determine the model and
vendor of the machines needed for the success and feasibility of the automation project.

Quality Assurance
In addition to the new equipment that the RFP highlighted there was an overabundance of
attention being spent on wire gauge checking. This process of checking wire is
responsible for overtime and delays in production. However, the elimination of the
process is also not reasonable. Therefore API will implement a new policy and
procedure by which it will reduce wire gauge checking to a random inspection. API
will align itself with a quality assurance agency via a service contract. By placing a
third party in-between the suppler and API the agency will become legally
responsible for insuring that all the resources coming from the suppler are to
specification. By transferring the risk to the agency, API will be able to liquidate
damages such as time and material that could not be claimed before. The
specification for selecting a quality assurance agency are listed below in table 3-TS
Table 3-TS
Process Inspection
Find the root cause of the production defects detected during final inspection
Verify the execution of Corrective Action Report (CAR) by the suppliers inspection team
Inspect poor quality linkages at different production stations
Product and component quality inspection before assembly
Identify suppliers weaknesses in the production system that leas to defects
Laboratory Testing
Use Customer on-site supplier test equipment for product testing evaluation
Use Supplier's Factory laboratory and equipment for sample testing
Use an external approved Test Laboratories for calibrated testing
Final Inspection
A 100% Factory Inspection
A Random Inspection
Line Inspection
Out of Box Inspection
Inspectors
Accumulated work experience in previous production, quality, and technical work.
Specialized in products in either electronics or automotive engineered products
Reasonably good written and verbal English skills
Know how to generate effective supplier/customer feedback
ASP Service Provider
The application software for this part of the automation project is typical of most other
software a company might purchase to leverage their capabilities against other business
in the market. In conducting the research for API, it has been determined that a multitude
of stable well backed and trusted software companies run applications for small and
medium size business as a service. By outsourcing the application API does not have to

hire a software specialist or keep current with new versions of the software. Below is a
table that list the criteria needed to select a Application software company.
Table 4-TS
Increase your EDI order processing efficiency
Automate the document flow between you and your customers
Minimize problem resolution time
Improve communication with PO Acknowledgements and Advance Shipping Notices
Translates incoming EDI and XML transactions into easy-to-read documents on your desktop
Provides ability to turn around Purchase Orders into ASN's and Invoices
Sends electronic documents on your desktop back to customers as EDI or XML transactions
Improve your "Order Cash" cycle
Speed customer matching of Invoices with Purchase Orders for faster payment
Correct invoices before they age by receiving immediate notification from customers of
invoices with problems
Receive electronic, ACH deposits for faster payment of your invoices
Collaborate with demand forecast information to reduce days of inventory coverage
Make your company less expensive to buy from
Reduce your customers' Accounts Payable problem resolution time
Standardize your customers’ buying process with you
Keep buyers and expeditors informed with Acknowledgements and Advance Shipping Notices
Improve your customers' ability to utilize "faster pay" programs such as rebates
Make your company easier to do business with
Increase proactive customer sales and service activities without additional overhead
Share more information with your customers – easily and electronically
Training
Initial Training Class
New Hire Training Class
Current Industry Seminar
Application Software (Inventory Control)
TS-5
Manage Product Pricing:
Manage Product Details
Manage Warehousing Functions:
Open Architecture
Tech Support
Integrate
Bar code Capable
IRR Capable

HUMAN RESOURCES
Severance Package- API values the hard work and dedication of its employees and is
willing to make every effort to keep it’s assets employed with the company. However,
during this change API will no longer need the abilities of a number of current
employees. API feels that no employee that has devoted their energy to build the
company should be laid off without the opportunity to locate and start a new job. This is
the reason API has seen fit to allocate a portion of the budget for severance package for
each employee being let go. And with good intentions that the employees who remain
behind will see the gesture of goodwill to those being let go.
A full breakdown of the severance package budget is in the cost and time section of this
document sheet 5 Along with the severance package the state of NY will offer
unemployment benefits for up to six additional months. In that API would like to make
this transition as smooth as possible it has been determined that full access to employee
medical benefits will also be available for six month or until new employment start which
ever occurs first.

Organization Structure
 President - (Owen French)
Reports to the board of directors, stockholder, and Investors.
The CEO/President is the singular organizational position that is primarily
responsible to carry out the strategic plans and policies as established by the board
of directors.
 Vice President- (Dick Ives)
Reports to the President
Provides strategic vision and leadership to the production, warehousing and
distribution areas Responsibilities include: Employee safety, product quality,
budgeting, expenses, inventory and labor, cost reductions through optimizing
overhead, improving efficiencies and yield optimization, employee retention,
customer satisfaction. Oversees all manufacturing activities within the
organization. Sets policies, procedures, and manufacturing standards.
 Director of Operations- (Joe Gallagher)
Reports to the President
Manage, direct, and implement operations strategies and objectives to
ensure the achievement of division's goals. Focuses for short-term goals are
on-time delivery, cost of sales, quality and gross margin, and human
resources. Focuses for long-term goals are the formulation, planning, and
implementation of strategies.
 Project Manager-(Mark Forster)
Reports to the Vice President and President of API and insures that the
project is aligned with the goals and objectives of the company. The
responsibilities of the Project Manager may expand and narrow as the
project evolves, the list of items that follow are indicative of the position.
• Creates and executes project work plans and revises as appropriate to meet
changing needs and requirements.
• Identifies resources needed and assigns individual responsibilities.
• Manages day-to-day operational aspects of a project and scope.
• Reviews deliverables prepared by team before passing to client.
• Effectively applies our methodology and enforces project standards.
• Prepares for engagement reviews and quality assurance procedures.
• Minimizes our exposure and risk on project.
• Ensures project documents are complete, current, and stored appropriately.
 Chief Financial Officer- (Kenneth Lay)
Reports to Stockholders and the President
Directs financial activities of organization. Prepares or directs the preparation of
financial statements, forecasts, and budgets. May manage accounting department

and advise management of desired operational adjustments based on changes in
tax code.
 Director of Sales-(David Copenhaver)
Reports to the Vice President, and works with senior sales and marketing
executives, the Director of Sales and Marketing will create specific strategies and
objectives to grow top-line sales for assigned operations in the Group. The
Director leads the National Account Managers, a team of sales representatives,
and sales administrators to implement the strategic vision and successfully meet
sales goals.
 Senior Procurement Officer-(Joe Hamamoto)
Reports to the Vice President of Finance and Administration/Chief Financial
Officer. In collaboration with the procurement team, is directly responsible
for establishing, contributing to and continually improving an efficient and
cost-effective process designed to assist Institution staff in their procurement
of goods and services through an on-line integrated procurement process of
Accounts Payable, Purchasing and Receiving, in compliance with Institution
policies and government regulations.
 Human Resources Manager- (Lisa Pruitt)
Explains company and governmental policies. Gathers information concerning
employee attitudes, morale, and efficiency. Meets with management to discuss
actions to improve workplace atmosphere.
 Machine Shop Foreman- (Jeff Gordon)
Responsible for effective planning, coordinating and directing all of
establishments manufacturing activities. Determines applicable policies relating to
production function. Responsible for engineering, cost and quality control, and for
the safety and welfare of workers.
 Information Technologies Manager-(William Gates)
The information technology manager is the person in the district who
oversees all aspects of managing and processing information. IT managers
are usually the go-to person for technology-related issues and the decisions
that drive technology programs.
 Legal Affairs Officer-(Johnny Cochran Esq.)
Will provide legal advice, conduct law suite on behalf of API, witness and
notarize all binding contracts.
In the Responsibility Matrix, (Table RAM) there is a clear definition of what each team
member’s role is in the project. The Responsibility Matrix is used to illustrate the
connection between work that needs to be done and the project team members.

The infrastructure of API is currently resilient enough as to be able to accommodate the
projects additional workload. By outsourcing significant parts of the project and
reducing the current workloads on the existing staff, managers will be better able to
divide their resources to assist on the project.
COST AND TIME
In this section of the proposal there are the journal netries for the project and the project
schedule.
CONCLUSION

APPENDIX

SOURCE AND REFERENCE
Electric Company
1. U.S. Power 8555 Main Street, Buffalo, NY 14221 Ph. 1-716-631-1517 Fax 716-
631-1519 Contact person Linda Beck: Website-
http://www.energypartnersusa.com/faq.html
New York State Tax Rate
2. New York State Controller’s April 11, 2006 Combined State and local sales tax
rates in New York range from 7 to 9.5 percent — among the highest sales taxes
rates in the nation, according to a research report on local government sales tax
issued today by New York State Comptroller Alan. G. Hevesi. Office Press
Office: (518) 474-4015 http://www.osc.state.ny.us/press/releases/apr06/041106.htm
Machine Companies
3. WAFIOS Machinery Corporation 27 Northeast Industrial Rd. Branford CT
06405 Phone: 203-481-5555 Fax: 203-481-9854 Email: sales@wafios.com
Website: http://www.wafios.com/index.html
4. Forming Systems, Inc. P.O. Box 694 Schoolcraft, MI 49087 U.S.A. Phone:
269.679.3557 Fax: 269.679.3567 E-mail: info@formingsystemsinc.com Website:
http://www.formingsystemsinc.com/default.htm
5. ThomasNet- welcome to the premier industrial Wire Forms: Automotive
resource. A wide variety of manufacturers, distributors and service companies are
featured in our extensive vertical directory to allow ease sourcing and research for
Wire Forms: Automotive. Website: http://www.thomasnet.com/products/wire-forms-
automotive-96142831-1.html
Quality Assurance Agency
6. AMREP Philadelphia, USA Nick Linter: +1 215 680 3072
AMREP NORTH AMERICA (ANA) has a core quality and engineering team
with over 500 specialist associates located in different parts of the USA to support
customer requirements on Supplier Inspection, Supplier Management, and Quality
Inspection. Website: http://www.amrepinspect.com/north_america.htm
7. Intertek Technical Inspection 3741 Red Bluff Rd. Pasadena, TX. 77503 Ph: 1-
713-475-2082 Fax:1-713-472-5932 Website: http://www.intertek-
ti.com/services/vendorinspection/?lang=en Email: info.houston.fts@intertek.com
Association of Shareware Professionals Service Providers (ASP)(OUT SOURCED)

8. 1 EDI Source, Inc. was established to provide affordable EDI solutions and expert
EDI advice to companies of all sizes.
1 EDI SOURCE Inc. 145 S. River St. Kent, OH 44240 USA Ph.1.877.334.1334
Fax 1.330.676.9098 Email sales@1edisource.com Website: http://www.1edisource.com/?
gclid=CMuojtbKyYgCFRVeYQod5m5XDA
8.A Risk
http://www.findarticles.com/p/articles/mi_m4153/is_n1_v53/ai_18202727
9. Covalent Works 14515 Briarhills Parkway Suite212 Houston, Texas77077
Website: http://www.covalentworks.com/about-edi.asp
Application Software Inventory Control
10. Microsoft.Inc. www.microsoft.com
11. Advanceware http://www.advanceware.net/default.asp
Industrial Resources for Intellectual Input
 Robert P. Forster Director of International Operation for P.R. Mallory
Indpls, IN. Ph. 949-212-4690
 Robert Neville VP of NKD Neville Keller & DiGregory www.nkdinc.com ph.317-
558-1550
 Kosei Ito Fuji Fine Wire- Owner, Okazaki City, Japan
Rod DeFord- Sales Manager Elektrisola 126 High St.
Boscawen N.H. 03303 USA Tel: +1-603-796-2114 Fax: +1-603-796-2119
Email: sales@elektrisola-usa.com Website: http://www.elektrisola.com
Accounting Policy
20. www.ucop.edu ……………… p-415-2.pdf

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