Tender MIS

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Tender MIS
Larsen Toubro ECC Division
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Tendering End to End
IT-enablement Roadmap
Work in progress
Interface to be built
Planned
System already exists
To be planned
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Tender MIS

• Tender Management Information System is an
  organized assembly of input form and procedures
  which helps the user in processing datas and
  taking proper decision prior to preparation and
  quoting of tender .
• It also serves as a decision-support tool
  allowing decision makers to evaluate, rate, and
  compare different alternatives

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Solution Theme IT Enablement of Tender MIS
Less Efforts, Better Knowledge Management
Tender MIS
Tender Database Tender in hand, Status, Win-loss,
strike rate etc.
Project Specific Bid Selection, Review Sheet,
SIR, ROCE Caln. etc.
MPCS T0 to T10
Earlier
Estimation Software
Portal (EIP) One portal based format to be filled
Now
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EIP - Tender MIS
Click
Click
Click
Click
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Tender MIS
Step 1 Enter your username and password to
login
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Tender MIS
Step 2 Choose Tender from the Menu to proceed
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Tender MIS
Step 3 Choose Region / Sector / BU / Business
Line ? Data will be displayed based on the
access rights you possess
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Tender MIS
Step 4 Choose Tender Code to proceed working
with modules of Tender MIS
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Step 5 Relevant Information will be displayed
from Tender Code Creation module. Update marked
fields and click on workings to proceed
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Step 5 Bid Evaluation Tool can be invoked by
clicking on Workings button Unique BET Code is
displayed for reference.
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Step 5 SIR can be invoked by clicking on
Workings button Unique SIR Code is displayed for
reference.
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Thank You
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Bid Selection Process

•   Favorability / Feasibility              
• This scale evaluates the bid on all the factors
  which directly affect the success of the bid or
  the project.    
• All parameters that affect our chances of
  winning the project  
• All parameters that affect our chances of
  completing the project in the required time
  cost and of meeting the revenue / profitability
  targets                                    

•   Strategic Desirability
•                
• This scale evaluates the bid on its effect on the
  future prospects of the Business unit.    
• Whether doing the project in question is in line
  with business plan of the Business unit  
• Whether doing the project in question can help
  the BU generate more revenue / profits in the
  future

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Parametric bid selection evaluates a bid broadly
on two axis - strategic and operational/tactical
keeping in cognizance the business and industry
realities
Strategic Parameters
Operational / Tactical Parameters

• Key questions
• How will this project affect BUs future?
• What and how much is the strategic value that the
  project will create for the BU?
• What is the trade-off between strategic value
  created and operational risks?

• Key questions
• What results will the project yield?
• Can the project deliver minimum required Revenue
  / Profit / ROCE ?
• How confident is the BU of delivering the project
  successfully (scope/time/cost/quality)?
• Financial favorability
• Customer favorability
• Capability to execute
• Critical Contractual Clauses
• Risks that Matter
• Project Characteristics

Customer desirability
Line of Business desirability
Market desirability
Strategy
Technology know how desirability
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Parametric bid selection evaluates a bid across
strategic and operational parameters keeping in
cognizance the business and industry realities
This parameter evaluates the strategic nature of
customer. Customer desirability
will be high if doing the current project ensures
substantial future revenue from the customer
Customer Desirability
This parameter evaluates how important is the
market for meeting strategic targets of the
business unit.
Market desirability will
be high if doing the current project ensures
substantial future revenue from the market or any
other related market
Market Desirability
This parameter evaluates whether the project
enables the business unit to gain know-how in a
strategically identified technology.

This score will be high if doing the current
project will enable the business to gain know how
in a technology which can be used to earn
substantial revenue in future.
Technological know-how Desirability
This parameter evaluates if the project belongs
to a line of business in which the business unit
wants to operate in future.
This score
will be high if doing the current project enables
the business unit to establish itself in the line
of business in question.
Line of Business Desirability
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Parametric bid selection evaluates a bid across
strategic and operational parameters keeping in
cognizance the business and industry realities
The nature of the project, win probability,
possible schedule and cost variance evaluation
are the key parameters to be evaluated.
Project Characteristics
Details like expected project profitability,
return on capital and expected revenue are
evaluated vis-à-vis the firms strategic
objectives
Financial favorability
Customer profile, track record and relationship
summary are evaluated here
Customer favorability
This parameter evaluation calls for an insight
into the execution strategy of both the tender
submission and the project itself. Evaluation of
parameters like availability of resources, skill
set, technology and etc
Capability to Execute
Risks that may arise from stringent contractual
clauses like LD, Arbitration, Force Majeure and
etc are evaluated
Critical Contractual Clauses
Risks that may arise from design variations,
customer end variability and etc are evaluated
Risks that Matter
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Bid Selection Process
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Tender Information System
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Tender Information System
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Site Investigation Report

• SIR is the tool to capture all site investigation
  data through EIP thus creating ready to use
  database for quick reference for future bids.
• After completion of Site Investigation, The
  investigating Team has to update all Project
  specific information (Viz, Reality check, battery
  limits, risk assessment, area for enabling works
  etc. ) in the portal for review and use by the
  Tendering Team
• The Common data ( viz, basic LMP rates) to be
  maintained centrally in each BU with the help of
  Regional Project Team.

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Site Investigation Report
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Further to Come
Estimation

• As a Contractor , we have to submit our Offer to
  Client for Construction of Projects
• To submit our Offer we should know
• What it will Cost us , based on the Terms and
  Conditions laid down by the Client
• What we will Earn in this Project
• The System exactly does this TASK

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Estimation