REQUEST FOR INFORMATION ENTERPRISE RESOURCE PLANNING SYSTEM ...

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REQUEST FOR INFORMATION

ENTERPRISE RESOURCE PLANNING SYSTEM

Ref no: G428/05

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Table of Contents

1 Background ..................................................................................................................................... 6 1.1 About Harmony...................................................................................................................... 6 1.2 Operations ............................................................................................................................... 6

2 Business Case for an Enterprise Resource Planning System ....................................... 8 3 Application requirements- Finance......................................................................................... 8

3.1 Central services ..................................................................................................................... 9 3.1.1 Cash and Bank ............................................................................................................... 9 3.1.2 Treasury ......................................................................................................................... 10 3.1.3 Creditors and provisions .......................................................................................... 11 3.1.4 Other receivables ........................................................................................................ 11 3.1.5 Accounts analysis, reconciliation and review ................................................... 11 3.1.6 General Ledger maintenance ................................................................................. 12

3.2 Group Taxation and Reporting....................................................................................... 12 3.2.1 Month end reporting .................................................................................................. 12 3.2.2 Period end reporting .................................................................................................. 12 3.2.3 Consolidations .............................................................................................................. 12 3.2.4 Intercompany transactions ..................................................................................... 13

3.3 Shaft and Plant Accounting ............................................................................................. 13 3.3.1 Monthly reporting ....................................................................................................... 13 3.3.2 Journal processing ...................................................................................................... 13 3.3.3 Budgeting and forecasting....................................................................................... 13

3.4 Capital accounting (Shaft and plant) .......................................................................... 14 3.5 Fixed Assets .......................................................................................................................... 15

3.5.1 Capital expenditure .................................................................................................... 15 3.5.2 Amortisation and depreciation ............................................................................... 15 3.5.3 Impairments ................................................................................................................. 15 3.5.4 Transfers and disposals ............................................................................................ 15

3.6 Job Costing ............................................................................................................................ 16 3.6.1 Workshops ..................................................................................................................... 16

4 Application requirements - Supply Chain .......................................................................... 16 4.1 Warehousing and Inventory Management ................................................................ 16 4.2 Contract Management....................................................................................................... 16 4.3 Procurement ......................................................................................................................... 16 4.4 Vendor Management ......................................................................................................... 17 4.5 Catalogues............................................................................................................................. 17

5 Technical information ................................................................................................................ 18 5.1 Masterpiece overview........................................................................................................ 18

5.1.1 Current Systems Structure Diagram ................................................................... 18 5.1.2 Current System Structure ....................................................................................... 18 5.1.3 Current systems – Interfacing with Masterpiece ............................................ 19

5.2 General system requirements........................................................................................ 20 5.2.1 Integration..................................................................................................................... 22 5.2.2 Workflow ........................................................................................................................ 22

5.3 IT Infrastructure.................................................................................................................. 22 5.3.1 Network technology ................................................................................................... 22

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5.3.2 Database Technology ................................................................................................ 23 5.3.3 Desktop Technology................................................................................................... 24 5.3.4 Hardware Platform ..................................................................................................... 25 5.3.5 Server platform ........................................................................................................... 25 5.3.6 Programming languages .......................................................................................... 25 5.3.7 User-interface Requirements.................................................................................. 25 5.3.8 Security Requirements.............................................................................................. 25 5.3.9 Application Security and Access Requirements............................................... 26

APPENDIX A .......................................................................................................................................... 28 6 Commercial information ........................................................................................................... 28

6.1 Company information........................................................................................................ 28 6.1.1 Your company structure ........................................................................................... 29 6.1.2 Details of your company’s board of directors .................................................. 30

6.2 Strategic Partnerships and Alliances ........................................................................... 31 6.3 Financial Information......................................................................................................... 31 6.4 Solution functionality......................................................................................................... 32 6.5 Experience ............................................................................................................................. 34 6.6 Customer Base..................................................................................................................... 36 6.7 Sub-contracting and Joint Ventures ............................................................................ 37 6.8 Black Economic Empowerment...................................................................................... 38 6.9 Support and maintenance ............................................................................................... 40 6.10 Technical ............................................................................................................................ 40 6.11 Solution pricing................................................................................................................ 41 6.12 Training............................................................................................................................... 42 6.13 Legal requirements ........................................................................................................ 42 6.14 Tax clearance ................................................................................................................... 43 6.15 Software Vendors’ Questionnaire ............................................................................. 44

6.15.1 Product Strategy ..................................................................................................... 44 APPENDIX B - Acknowledgement ................................................................................................. 46

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Enterprise Resource Planning System for Harmony

Note: This document is a Request for Information and not a tender or Request for Proposal. Harmony reserves the right not to issue a Request for Proposal following this RFI.

Harmony is investigating the possibilities of implementing an Enterprise Resource Planning system for its Financial and Supply Chain Management functions. The proposed solution should be designed to meet our business needs. Potential vendors are invited to submit information on a solution that will meet our needs as defined in the Request for Information.

All information submitted to Harmony in response to this RFI will be handled with utmost sensitivity and confidentiality. The information will be used for identifying potential Enterprise Resource Planning software solutions providers and not for any other purpose.

Please direct any queries to the issuing officer either in writing or by e-mail to the following address, [email protected], by no later than close of business on 14th November 2005.

The closing date for submitting responses to this RFI is 12 noon on 17th November 2005.

Responses should be submitted to the issuing officer at the address stated below. Presentation of responses should be in Soft Copy on a CD and three Hard Copies.

Issuing officer: Pierre Venter

Phone: (011) 278 0077

Fax: (011) 278 0097

Address:

Randfontein

Harmony Gold Mining Company Limited

Procurement Department

GDS Main Stores

Phillip Von Weillegh Drive

Zuurbekom

mailto:[email protected]

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Or

Free State: Free Gold Procurement Department Central Services Jan Hoffmeyer Road President Steyn Road turn-off Welkom (On Welkom-Virginia Road) Or Evander: Harmony Gold Mining Co. LTD Evander Procurement Department Central Services 7# Main Stores Off Rotterdam Road Evander.

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1 Background

1.1 About Harmony

Harmony Gold Mining Company Limited was formed in 1950 as a Rand

Mines managed company to exploit the single Harmony mine lease. In

1995, the company was rejuvenated as a separate entity following the

demise of Rand Mines. At that time, the company produced 650,310

ounces of gold and employed 16,000 people.

Today, Harmony is the sixth largest producer in the world, with increasing

growth potential in South Africa and Australia. In the financial year 2005,

Harmony produced 3 million ounces of gold, predominantly from South

African sources.

Harmony owns the world’s largest gold ore resource. Harmony has a

mineral resource of 528.6 million ounces at a cut-off of 250cm g/t, of which

54.1 million ounces are in the ore reserve category, using a long-term gold

price of R92,000/kg.

Harmony Gold Mining Company Limited is engaged in gold and related

mining operations in South Africa, Australia and Papua New Guinea, in

addition to exploration, minerals and participation rights in South Africa,

Peru and elsewhere in Africa. The company has been successful in its

strategy of growth through acquisitions and has emerged as one of the top

gold producers in the world, and the third largest in South Africa.

1.2 Operations

The company’s main operations are located in the Free State, Evander,

Randfontein and West Rand regions of the Witwatersrand basin, as well as

in the Kraaipan Greenstone Belt of the North West Province, where the

Kalgold open pit mine is situated. Harmony’s offshore operations include

our operations in Australia. Other major listed investments include Gold

Fields and African Rainbow Minerals. Harmony’s Free State operation was

its sole producer in 1995 and through a process of acquiring local adjoining

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properties, continues to contribute approximately 600 000 ounces of gold

to the company’s overall production.

Evander, which was acquired in 1998 after it had been consolidated

through the merger of four mines and other mineral rights interests,

produces approximately 400 000 ounces a year.

In 1998 and 1999 Harmony acquired the Bisset operation in Canada and

Kalgold in South Africa. Kalgold and parts of the Australian operations

represent the group’s opencast capacity. The Hidden Valley project is

planned to be an open-pit operation which, if approved, will add further to

Harmony’s open-pit and international production capacity.

Harmony has since 2000 acquired Randfontein, Elandsrand and Deelkraal

(Elandskraal) from AngloGold.

In addition, the company initiated a new era for financing, by issuing the

first corporate bond in the South African gold industry, valued at R1,2bn.

These corporate activities positioned Harmony in a stronger position to

pursue its growth strategy at a time when the US$ gold price was trading

at historical lows.

In November 2001, Harmony and ARMgold announced that they were

successful in their bid to acquire AngloGold’s Free State assets, Free Gold,

in a 50/50 Joint Venture initiative, for a total consideration of R2.7 billion.

The Free Gold assets consist of the mines and associated infrastructure of

Joel, Tshepong, Matjhabeng and Bambanani, and other mineral rights.

As an unhedged company we remain highly leveraged to changes in the

gold price. Our more recent success at the cost improvements at Target

Mine, acquired in 2004, reiterates our proven ability to turn-around and

reinvigorate South African Gold Mines turning them into low-cost, high-

margin, long-life, high-productivity operations. Through the success of its

strategy Harmony has become the sixth largest gold producer in the world.

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2 Business Case for an Enterprise Resource Planning System

Harmony currently uses legacy systems for finance and supply chain

management processes. A lot of critical activities take place outside of the

system e.g. Excel spreadsheets for budgeting and reporting. The changing

business requirements of Harmony have necessitated the implementation

of an Enterprise Reporting System that will support its business processes.

The current system has also reached the end of its lifecycle. The use of

manual processes such as spreadsheets increases the risk of fraud and

misappropriation.

Implementation of the ERP will ensure adequate technology support for the

business and will be a critical enabler in ensuring that Harmony achieves its

goal of world class service delivery.

As an entity listed on the NYSE, Harmony has the additional requirement to

ensure that it complies with the Sarbanes-Oxley Act. One of the main

requirements of this legislation is that companies should have proper

internal controls over their financial statements and the financial

environment surrounding the financial statements and report on the

effectiveness of these controls.

3 Application requirements- Finance

The Finance Division is responsible for the recording of all transactions,

capital projects, financial and management accounting, financial reporting,

job costing as well as the consolidation and analysis of financial

information.

The finance function consists of the following divisions:

• Central Services (Accounts payable, Accounts receivable, Bank,

Cash, Treasury and General Ledger)

• Group Reporting and Taxation (including intercompany

transactions, consolidations and month end and period end

reporting)

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• Shaft and Plant Accounting

• Fixed Assets and Capital Accounting

• Capital Accounting

• Job Costing

The management of treasury investments is outsourced to Andisa.

Central Services, Group Reporting and Taxation, as well as the Senior

Management responsible for Shaft, Plant and Capital Accounting are

based at the Harmony Head Office in Randfontein.

In addition to being listed on the Johannesburg Stock Exchange,

Harmony Gold has a secondary listing on the New York Stock

Exchange. This listing requires that they file an annual report with the

Securities and Exchange Commission, the body responsible for

regulating all entities listed on the New York Stock Exchange. This

process is handled by the Group Taxation and Reporting division.

3.1 Central services

3.1.1 Cash and Bank

There is no cash book functionality within the Masterpiece system. All cash

entries are performed via journals. Cashiers are located in the following

areas: Free State, Evander, Elandskraal and Randfontein. The receipt and

payment of cash at Freegold and Armgold is outsourced to Teba Bank.

Teba Bank keeps an updated list of specimen signatures in the branches

where they pay out and receive cash from Harmony staff members.

Cash counts are performed on a monthly basis and reconciliations are

performed and independently reviewed at Central Services. Examples of

cash received would be the takings from the canteens; examples of

payments made would be the reimbursement of claims from staff

members, such as travel and entertainment expenditure incurred.

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Petty cash is not maintained on an imprest system. A fixed amount of cash

is drawn each month to maintain the floats at the four Harmony locations.

3.1.2 Treasury

The Treasury function within Harmony is outsourced to Andisa, previously

known as Standard Risk and Treasury Management Systems. There is an

investment mandate in place with Andisa, which is updated on an annual

basis. The following functions are performed by Andisa:

Management of trust funds

Management of any hedge books and treasury products held

Market forecasts

Managing overdraft rates and negotiating interest rates

Transferring funds between the various bank accounts, at the

request of Harmony

Making foreign payments at the request of Harmony

Converting Dollars into Rands when required

Daily cash forecasting is performed internally. The amount of payments to

be made each day is monitored and when funds are required Andisa is

requested to transfer funds from the Treasury to the Call Account.

At month end Treasury provides exchange rates to Group Taxation and

Reporting for consolidation purposes. $/R exchanges rates are obtained

from the Bank of New York website and all other rates are obtained from

Andisa.

Harmony operates 51 bank accounts, two of which are in the UK. The

accounts are held with three of South Africa’s major banks.

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3.1.3 Creditors and provisions

Creditors

The Creditors Department is responsible for processing payments for both

Services and Trade Creditors. Payments are made daily for certain

immediate payments, at fixed intervals during the month for certain trade

creditors and at month end for all other trade and service creditors.

Reconciliations are performed at month end. The Creditors Department is

also responsible for adding new vendors and making changes to vendor’s

details.

Provisions

Most provisions are generated at the shafts and plants or centrally. The

journals to be passed for provisions are e-mailed to Finance Operations.

The role of Central Services Finance’s is to ensure that the totals for shaft

and plant provisions balance back to Masterpiece at the end of the month.

Overhead provisions are performed centrally.

3.1.4 Other receivables

Other receivables would include amounts owing to Harmony from the

letting of residential and commercial property, contractors who may obtain

items in the stores and hostels utilised by contractor’s staff. Property

rentals make up the bulk of other receivables. Currently the process for

management of receivables from the letting of property is very manual and

is performed in EXCEL.

3.1.5 Accounts analysis, reconciliation and review

An independent review of the bank reconciliations is performed periodically.

Payroll and other reconciliations are performed by various staff members

within Finance Operations and Costing. Review of these reconciliations is

independently performed.

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3.1.6 General Ledger maintenance

There are currently around 3,000 accounts within the system, of which

1,500 are inactive. The maintenance and control over general ledger

accounts is currently a manual process.

3.2 Group Taxation and Reporting

3.2.1 Month end reporting

The month end reporting process includes the preparation of the monthly

income statements and balance sheets for all individual companies.

Various costing allocation journals are passed at month end. VAT

calculations and intercompany analyses and tax packs are also prepared.

Adjustments are also made to provisions at month ends.

3.2.2 Period end reporting

The period end reporting process is very similar to month end reporting,

excepting that there may be share options issued, or dividends may be

declared during certain period ends. Interim financial statements are

prepared on a quarterly basis according to International Financial Reporting

Standards (IFRS).

3.2.3 Consolidations

The consolidated income statements and balance sheets are prepared,

based on information obtained from Masterpiece. This information is then

analysed and various entries passed to provide consolidated information.

Due to their secondary listing on the NY Stock Exchange, Harmony is

required to prepare one set of consolidated financial statements in

accordance with International Financial Reporting Standards (IFRS) and

another set prepared in accordance with US Generally Accepted Accounting

Practice (US GAAP). The Company Secretary is also involved in this

process. The consolidated financial statements are audited by the external

auditors at financial year end.

The financial statements are first consolidated per shaft, then per company

and then per group. There are several groups of companies that are

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consolidated before being consolidated into the Harmony group. Foreign

subsidiaries use different financial software packages, which are not

incorporated into Masterpiece. As a result, most of the consolidation

function is performed outside of Masterpiece, including foreign currency

conversions into SA Rand.

3.2.4 Intercompany transactions

Loan accounts are maintained for all companies within the Harmony Group

for the purposes of recording all intercompany transactions. At month-end,

VAT is calculated and accounted for, for all the intercompany transactions

which took place during the month between the companies within the

Harmony Group.

3.3 Shaft and Plant Accounting

There is no fundamental difference between the financial operation of a

plant and a shaft. The financial function comprises of the following:

3.3.1 Monthly reporting

Each shaft is required to produce monthly financial reports. Reconciliation

of general ledger accounts is done and new shared costs are allocated from

Central Services Head office for shared costs are incorporated. Additional

reports are compiled for benchmarking against other Shafts and Plants, and

for comparison against rolling forecasts and budget year to date figures.

3.3.2 Journal processing

All general ledger entries from Shafts and Plants are currently done via

journals. Journals are e-mailed to a Central services mailbox to be uploaded

into the financial system. This includes all finance, banking and costing

journals.

3.3.3 Budgeting and forecasting

All shaft and surface operations are required to submit an Annual Strategic

Plan and 3 month rolling forecasts of their mining operations, expressed in

terms of hoisted tonnes of activity. Both activities (annual budget and

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rolling forecasts) are Shaft team driven with the help of the Shaft

Accountant in translating the planned activities into financial terms. Input is

required from all departmental managers to generate budget and forecast

amounts per department and these are consolidated for the shaft/plant.

3.4 Capital accounting (Shaft and plant)

Capital projects are defined as projects where funds are utilised for

development of new ore bodies, further defining existing ore bodies and

related research and exploration cost. A feasibility study is done for every

capital project. Development of the project entails the sinking of a shaft or

the excavation if it is an open pit as well as the infrastructure necessary to

prepare the new ore body for production. Infrastructure includes process

and manufacturing facilities, major equipment as well as IT equipment.

Throughout the development up until production start the process is a

separate project handled by a project team that manages the physical as

well as the cost elements. A capital cost structure is assigned to the project

as soon as the project is approved. The capital costs incurred for projects

are written off over the life of the shaft as soon as production (revenue

generation) commences (estimated production period).

Harmony Gold requires a Capital Projects Software Management tool which

would manage current and “New Mine Capital Projects” to assist the project

team to monitor their actual progress against planned scheduling with

regards to the physical and cost elements.

Capital projects are embarked on only if they would increase the profitable

lifespan of a mine (shaft) or if they would increase the

efficiencies/effectiveness/capacity on the replacement or major repairs of

equipment. Although capital items are currently written off over the

lifespan of the shaft, this will change when IAS 16 comes into effect since it

stipulates that shafts be split into various components and depreciated

according to various methods applicable per component.

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3.5 Fixed Assets

Fixed assets comprise Mining Assets which are made up of mine

development costs (exploration, project feasibility, project development,

development, major equipment, pre-production expenditure, IT equipment,

process and manufacturing facilities and development) and present value of

decommissioning costs as well as Non-Mining Fixed Assets which are

made up of land, vehicles, computer equipment, computer software,

furniture and equipment.

3.5.1 Capital expenditure

Capital expenditure for Mining and Non-Mining assets goes through a needs

analysis process before a capital expenditure application form will be

submitted for authorization. After approval the application will go through

the procurement process.

3.5.2 Amortisation and depreciation

Depreciation for non-mining assets (except for land which is not

depreciated) is on a straight line basis over their estimated remaining

useful lives. Mining assets are depreciated by the units of production

method based on estimated proved and probable reserves. Bond issue

costs and discounts are amortised by dividing the amount paid/incurred to

issue the bonds over the period they will be repaid.

3.5.3 Impairments

Each shaft/mine is classified as a cash-generating unit to assess whether or

not impairment has taken place. A strategic planning session is performed

at each shaft/mine where the remaining life of each shaft/mine is

determined.

3.5.4 Transfers and disposals

Transfers and disposals of Commercial and Residential properties have to

be approved by various departments.

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3.6 Job Costing

3.6.1 Workshops

Specialist workshops are located in a widespread area. The workshops

respond to tenders issued by plants and shafts and include the

manufacturing of new equipment, repairs and rolling stock (reclaimed from

underground). Every tender will have a budget and daily costs e.g. Bill of

material and labour, will be recorded against the job. The foreman in each

workshop is responsible for planning, productivity, stock control and

assessing work-in-progress. If a tender was awarded for equipment to be

repaired, the workshops would render the service and would sell the

equipment back to the shaft.

4 Application requirements - Supply Chain

The Harmony supply chain facilitates the purchasing, warehousing and

distribution of goods, services and repairs for the Harmony (South Africa)

operations

4.1 Warehousing and Inventory Management

Inventory management and Warehousing functions are responsible for

replenishing and ordering of consumable materials; issuing/dispatching

materials to be used in the mines; receiving orders; packing of material in

the stores; conducting stock counts on a cyclical basis; transferring stock

between store locations and managing consignment stock in the stores.

4.2 Contract Management

Contract and commodity management is responsible for the optimisation of

the supply of materials, equipment and services through strategic

partnerships with suppliers, and it involves the management of all aspects

of a contract to guarantee that contractors fulfil their obligations.

4.3 Procurement

Procurement is responsible for the purchasing of materials and services that

are used on the mine. It encompasses the requisitioning of the required

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item and the ordering either from the stores or from an external supplier.

Harmony inherited portions of services departments through their various

acquisitions; this has lead to various inefficiencies currently being targeted

for cost savings.

4.4 Vendor Management

Harmony is looking for an ERP system that has the functionality to enable

the supply chain team to manage vendors and interface with external

databases.

4.5 Catalogues

Harmony uses the process of cataloguing, which is an exercise of creating a

materials/ tools master catalogue from the data. The challenge going

forward is to maintain this catalogue using an ERP tool that will ensure the

elimination of encounters faced prior to the catalogue development as well

as provide the ability to methodically and visually enhance the product list

to increase customer understanding and participation.

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5 Technical information

5.1 Masterpiece overview

5.1.1 Current Systems Structure Diagram

The diagram

5.1.2 Current System Structure

Masterpiece is a two tier system. It deploys its data on Ingres database

management system. Both Masterpiece Application and Ingres database

are residing on UNIX AIX platform. The current Masterpiece version is 1.2

and the vendor is SSA Global (www.ssaglobal.com). The system has

undergone a number of versions and the latest release is called SSA

Financials Management or SSAFM.

http://www.ssaglobal.com/

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Masterpiece deploys data in OpenIngress developed by Computer

Associates (CA). It is a relational database management system.

OpenIngress supports all the SQL92 operators and QUEL.

5.1.3 Current systems – Interfacing with Masterpiece

Masterpiece Input from other systems

The payroll system feeds Masterpiece with six cost files and six deduction

files which are in the exact format required by Masterpiece. The process is

manual as indicated in the diagram below. The payroll system in use is

Palpay which is developed in COBOL. It is a flexible system which

predominantly uses batch processing. It mainly uses flat files.

Masterpiece Output to other systems

Masterpiece feeds the ABSA Server with binary files which are converted in

the ABSA bank required format by an in-house developed Visual Basic

program.

Data Warehouse extracts data from Masterpiece through an ETL called data

stage.

Any new area and process codes first get updated on Masterpiece then they

are extracted to the warehouse by the ETL. Data Warehouse updates both

the validation tables on Empower and Time & Attendance systems with new

area and process codes. The warehouse updates area and process codes in

the Palpay validation file in a flat file format.

On a daily basis, Empower updates Palpay and Time and Attendance,

updates any transfers and also feeds Palpay with clocking and overtime

information on a daily basis.

A daily payroll run get extracted to the data warehouse on a daily basis.

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The Payroll system updates Masterpiece with high level information once a

month. This information should balance back to the cumulative daily

payroll information from payroll to data warehouse.

5.2 General system requirements

Harmony in line with its business strategy requires a standard centralised

and integrated solution for its Finance and Supply Chain management

processes, transactions and activities.

The required solution should have the following general functionalities:

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It must be user friendly

It must be Windows based

It should have Drop Down menus – i.e. Allow users to select from

predefined criteria/list

It should automate manual calculations where feasible

It should enable users to export/import data to/from Windows Office

Suite e.g. Excel, Word, Access, etc.

Have a reporting dashboard

System interfacing – internal/external

Authorisation

Audit tracking

Batch & online processing

Faxing

Printers

The solution must be able to define the mandatory or optional

parameters for specified fields

Standard naming conventions should be used throughout the solution

e.g. customer on one form/module should also display as customer

(and not as client) on other forms/modules

User and system-defined references/codes must display

corresponding description/narration for clear understanding

Avoid duplication of data capturing activity

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Cater for compliance with GAAP and Companies Act

Cater for compliance with the Sarbanes-Oxley Act with regard to built

in internal control structure

5.2.1 Integration

Integration should be across business functions/applications.

The system should fit into our new application environment. As the

database environment diagram above outlines, our systems are operating

in silos. We are using BizTalk server to provide seamless integration at

application level. The system should be configurable with Biztalk.

5.2.2 Workflow

The solution must be workflow enabled

An Audit trail must be available for all transactions and changes to

master data

The workflow facility must allow for electronic approval

5.3 IT Infrastructure

Harmony runs its own IT infrastructure which consists of 4 main regions,

Randfontein, Evander, Free State and Orkney. (Harmony has major shafts

at Elandsrand Carltonville and Kalgold in the North West Province). The 4

main regions are connected via redundant diginet backbone, with the other

major shafts being connected with single diginet links. The rest of 30 sites

are connected via wireless links in the form of RF radios. This entire

infrastructure is managed centrally from Randfontein by the Network

Infrastructure team.

5.3.1 Network technology

Harmony is currently engaged in the Network upgrade project, with one of

the main outcomes being the standardisation of all routers to the Cisco

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Platform and Network switches to HP. RF Radios are being standardised on

Redline Radio’s

Network protocol

The network protocol is TCP/IP

LAN configuration

Layer II/III switching between broadcast domains

WAN bandwidth

Backbone Bandwidth capacity 5Mb; 2Mb ISP connection

Network Operating System

Windows 2003/2000; UNIX: AIX Solaris

Domain model

Windows 2003 Active directory and Exchange 2003 mail infrastructure

5.3.2 Database Technology

Masterpiece deploys its data on Ingres database. The Data Warehouse is

built on Sybase IQ. The payroll system uses a combination of flat files and

vision database.

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Schematic Overview of our current database environment

Requirements

The system should utilize the existing database technology that Harmony

Gold has already invested on. We would prefer a system that would allow

Harmony to do database management systems consolidation without

difficulties.

5.3.3 Desktop Technology

The desktops range from Pentium 2 to Pentium 4. They use Microsoft

operating systems ranging from Windows 95 to Windows XP.

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5.3.4 Hardware Platform

Harmony is standardised to Intel machines. IBM P630 is the current server.

The current Server Specification (This doesn’t have to be used).

IBM P630: Model: IBM P 630

Processors: 4 * 1.2 GHz

Memory: 2 Gigs

Network: 100mb Full duplex

Storage: External

Model: IBM FastT600

Total Storage: 417 Gb

5.3.5 Server platform

Masterpiece is currently running on UNIX AIX 5.2.

5.3.6 Programming languages

Vb.net is a standard language used to enhance and develop new systems in

Harmony Gold. The BizTalk environment has been developed with Vb.Net.

5.3.7 User-interface Requirements

The system should be user friendly and the fields on the forms should be

clearly defined. All mandatory fields should be clearly marked.

The system should have dropdown lists, look and feel, ease of use, online

adequate help, radio buttons and be web-based.

5.3.8 Security Requirements

System Access controls

User passwords must be encrypted

User creation should be done through active directory

Password history to be kept, to prevent re-use of the same

passwords

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Sign-on Password Failure Limit feature – system should lock the

account after selected failed password guesses

Session Time out feature – users may leave their work station

unattended while logged into the system, making the system

accessible to others who may walk up to the computer

Ease of password change on seeded accounts – seeded accounts

password change should not affect the system’s functionality

The required length is a minimum of six characters with no maximum

limit

User authorization – should limit the user’s access to the

responsibilities that are assigned to that user

Auditing feature – should keep track of the user’s transactions in

order to verify that the user does not misuse his/her access

privileges

5.3.9 Application Security and Access Requirements

Harmony requires a solution to control access to information by creating

specific profiles based on the following rules/specifications:

No rights/Restricted rights

View /Read only

Create/Author

Change/Modify

Full control/Administrator/Owner

Special Permissions

Security down to account/field level

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Audit trails and logging to be kept

User-ID database and maintenance module of database

Role based security

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APPENDIX A

ANSWER WORKSHEET

INSTRUCTIONS TO ALL RESPONDENTS

The information in this section should be completed by all respondents.

Please respond on this document in the space provided and adhere to the

numbering of the questions. Additional information in response to any

question can be included separately and referenced to the specific question.

6 Commercial information

6.1 Company information

Please provide your company profile specifically covering the following

aspects:

Name of company or Close

Corporation:

Company or Close Corporation

registration number:

Postal Address:

Street Address:

Telephone Number:

Fax Number:

Contact Person:

VAT registration number

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Provide a brief description of your core business and major users of your

services.

Response:

6.1.1 Your company structure

Shareholding

Provide Full Names of Shareholders/Members of your company by race,

gender and percentage shareholding. In the case of public companies,

please provide details of shareholders holding more than 10%.

Shareholder % Shareholding Gender

(F/M)

(where applicable)

Racial Group

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Management

Provide details of your organisational levels, the number, gender and race

of employees in each level.

Designation/

Organisational level

Gender and race

A/M A/F IM I/F C/M C/F W/M W/F

(Key: A= African, W=White, C= Coloured, I=Indian, M=Male, F=Female)

6.1.2 Details of your company’s board of directors

Director’s Name Executive

Director

Non-Executive

Director

Gender

(F/M)

Racial Group

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Director’s Name Executive

Director

Non-Executive

Director

Gender

(F/M)

Racial Group

Note:

Mark the applicable block with an X

Key for racial group: A=African; W=White; I=Indian; C=Coloured;

F=Female; M=Male

6.2 Strategic Partnerships and Alliances

Is your company willing to establish strategic alliances or partnerships for

the transfer of skills to Black ICT companies? If no, provide reasons why?

Response:

6.3 Financial Information

Audited financial statements for the last three financial years, where

applicable, of the responding company and the holding company must be

enclosed with your response.

Audited Financials for last three years submitted: YES/NO

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Provide name, address and contact details of your auditors.

Response:

Provide your bank details:

Bank name:

Branch name:

Branch code:

Address:

6.4 Solution functionality

Is your solution compliant with the Companies Act and GAAP?

Response:

How will your solution handle internal charges or intercompany

transactions?

Response:

How will your solution handle multiple currency transaction processing and

reporting?

Response:

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How will your solution handle currency fluctuations?

Response:

Describe the features and functionality that your solution can provide for

General Ledger, Journals and Consolidations.

Response:

What is the minimum and maximum number of levels that your solution

allows for the chart of accounts?

Response:

How will your solution handle capital projects?

Response:

What functionality does your solution provide for Cash Management?

Response:

What functionality does your solution provide for Bank reconciliations?

Response:

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6.5 Experience

How long has your organisation been in business?

Response:

Provide specific experience and credentials with similar organisations,

where these are believed to be relevant.

Response:

How many years’ ERP implementation experience do you have in either of

the following products within South Africa?

MS Axapta

SAP

Oracle

Response Years’ experience

MS Axapta

SAP

Oracle

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How many ERP implementations have you done in the mining industry?

Response:

How many ERP implementations have you done in the mining industry,

specifically, in either of the following products?

MS Axapta

SAP

Oracle

Response Number of implementations in mining industry

MS Axapta

SAP

Oracle

Do you have a proven methodology and approach to your ERP

implementation? Provide details of such methodology and approach.

Response:

What is the composition of the team involved in your ERP implementations,

their level of expertise and experience? (Please provide profiles of the core

team that your company uses for ERP implementations).

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Response:

What is your level of certification with respect to the proposed software?

E.g. Gold, Silver, etc.

Response:

How many of your consultants are certified in the implementation of the

proposed software?

Response:

6.6 Customer Base

How many ERP solution customers does your company have?

Response:

How many active solution customers do you have?

Response:

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Across your customer base, how many ERP solution sites does your

company have?

Response:

What is the average size of your customers for whom you have done ERP

implementations?

Response:

Is there an active user group for your solution in South Africa?

Response:

When was this user group established?

Response:

How many of the solution customers are on your maintenance plan?

Response:

6.7 Sub-contracting and Joint Ventures

How many parties, including the implementation partner, is your company

proposing to use as subcontractors, joint venture partners or consortium

members?

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Response:

List the names of these parties.

Response:

Has your company worked with any of the proposed partners in prior

engagements? If yes, list those that you have worked with before and the

number of projects in which you used their services.

Response:

6.8 Black Economic Empowerment

Respondents must state their involvement in SMME development, of

particular interest would be any actions that specifically promote Black

Economic Empowerment. For the purposes of this RFI, BEE refers to

Economic Empowerment of Black, Indian and Coloured individuals.

Respondents that are merely acting as agents who do not add value and

who are merely used as marketing channels for established white

businesses will be effectively prevented by the process - i.e. not being

entitled to preference unless it can be proved to the satisfaction of the BEE

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Coordinating Council that this “agency-ship” is part of a legitimate

upliftment program.

An agent is defined as a representative who works/ acts on behalf of the

company he represents and whose existence is for the sole benefit/

convenience of the company he represents. In the event that an agent has

no shareholding in the company he represents, works for a fixed salary and

does not form part of any legitimate upliftment program the said agent will

not be entitled to the full preference.

Where the agent has shareholding in the company he represents, is not

earning a salary and his inputs/ contributions add value, he will be entitled

to preference depending on his percentage shareholding in the company he

represents.

Preference would be given to affirmative companies in the adjudication of

this RFI. Documentary proof to support your scoring for all criteria

in the table below must be returned with the RFI submission.

Please indicate your BEE status by ticking the appropriate boxes below and

also indicate the actual BEE percentage of shareholding in your company.

BEE Representation (Please tick one of the boxes below) Criteria

< 25% 25-50% 50%-75% 75-100%

1 Shareholding

2 Management

3 BEE procurement

spend

Not

planned

Planned, not

implemented

Implementation

in progress

Implementation

complete 4

BEE Programme

(including skills

transfer)

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6.9 Support and maintenance

What is the structure of the support and maintenance that you provide for

ERP implementation?

Response:

Where are your major on-going support and maintenance facilities located?

Response:

Are your on-going support and maintenance facilities staffed by your

company or your partners?

Response:

Provide the certification level achieved by the Support and Maintenance

service provider, where support and maintenance is provided by a party

other than the Software Vendor.

Response:

6.10 Technical

What are your technical requirements as far as ERP implementations are

concerned?

Response:

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Provide, at least, three reference sites where the solution has been

successfully implemented.

Response:

How will your solution enable electronic authorisation of transactions in line

with internal company policies?

Response:

Explain how your solution interfaces with Web-based applications?

Response:

Explain how your solution would interface with banking and cash

management systems?

Response:

Does your solution provide for document image processing for storing

incoming and outgoing correspondence generated by the system and

independent sources? If so, is it a separate component or a built-in

component of your solution?

Response:

6.11 Solution pricing

Provide your solution pricing strategy.

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Response:

6.12 Training

Describe your approach to training?

Response:

Who will deliver the training? Is it the Software Vendor or the Implementer or a third party?

Response:

Is the training delivered at the client site or at your corporate office?

Response:

Is the training curriculum generic or will it be tailored to the specific implementation requirements of Harmony?

Response:

6.13 Legal requirements

Provide details of you attorneys or legal counsel.

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Response:

Is there any pending merger or acquisition in the pipeline that may impact

your company's ability to deliver ongoing service to Harmony?

Response:

Is your company a subsidiary of a larger entity? If so, which entity?

Response:

Provide details of any recent mergers or acquisitions involving your

company. What were the reasons for the merger/acquisition? What is the

potential impact of the merger on your business going forward?

Response:

6.14 Tax clearance

Supply a valid Tax Clearance Certificate for your company and for your

strategic alliances who will be working with you on the project.

Respondent’s Certificate supplied: YES/NO

Strategic Alliances Certificate supplied: YES/NO

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6.15 Software Vendors’ Questionnaire

Only the Vendors for MS Axapta, SAP and Oracle should respond to

this section.

6.15.1 Product Strategy How many major version updates did your company release per year during

the past five years?

Response:

How often are you planning to release major version updates in future?

Response:

Are you anticipating a major upgrade within the next year?

Response:

Provide details of your next three major functionality enhancements and

the expected dates on which they would be deployed.

Response:

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What is your company's product pricing strategy?

Response:

Provide details of any planned architectural enhancements to your product?

Response:

Does your company fulfill customization requirements or do third-party

companies take care of customization?

Response:

Supply details of company’s latest product release and when was it

released?

Response:

Define the following terms: solution site, solution customer, user groups

and customer installation, in the context that they are used by your

company.

Response:

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APPENDIX B - Acknowledgement

I/We……...........................................................................................of

................................................................................hereby submit a

response to the Request for Information on the implementation of an ERP

system for Harmony Gold as described in the RFI document.

I/We confirm that I/we have read and understood all the documents

provided by Harmony Gold in the Request for Information. I/we have

drawn my/our own conclusions from these documents.

This Response is submitted in accordance with the Request for Information

(G428/05) by which I/we agree to be bound.

[Please confirm that you have received and have read and responded to the Request for Information document and the supporting appendices and that the information/response that you have provided is correct. Please complete this checklist ticking the relevant block with an X and submit with your response.]

Section heading Read Responded

RFI Overview – Sections 1 to 5

APPENDIX A: Commercial information - Section 6

Company information – Section 6.1

Strategic Partnerships – Section 6.2

Financial Information – Section 6.3

Solution Functionality – Section 6.4

Experience – Section 6.5

Customer Base – Section 6.6

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Section heading Read Responded

Sub-contracting and Joint Ventures – Section 6.7

Black Economic Empowerment – Section 6.8

Support and Maintenance – Section 6.9

Technical – Section 6.10

Solution Pricing – Section 6.11

Training – Section 6.12

Legal Requirements – Section 6.13

Tax Clearance – Section 6.14

Software Vendors’ Questionnaire – Section 6.15

APPENDIX B - Acknowledgement

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I/we hereby acknowledge that I/we have received and responded to the

sections listed in APPENDIX B above.

My/Our response will remain valid for a period of 180 days from the closing

date. I/we acknowledge that it cannot be withdrawn within the stated

period.

Name of company representative

Signature

Capacity or Designation

Company Seal/Stamp

Company Telephone

Company Fax

Contact person

E-mail is the preferred medium of correspondence for any questions, or comments and the email address is [email protected].

Note: This opportunity may not be discussed with any other Harmony Gold personnel (management or staff). Doing so may disqualify the Respondents from further participation in the opportunity.

mailto:[email protected]

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