final project report in industrial research on

8/14/2019 Final Project Report in Industrial Research On

1/66

Final Project Report in Industrial Research onLeveraging benefits of ERP Implementation and challenges

faced by Organization.

Submitted to: Submitted by:Prof. A.B.Raju Harshdeep Singh Dhillon

Kashyap Naik

Malay Ghelani

Nilay Shah

Ravi Rajput


2/66

Benefits of ERP Implementation | IIPM Ahmedabad 1

Acknowledgement

We take this opportunity to express our gratitude to those who have performed instrumental role in

making our project successful.

We extend our sincere thanks to Prof. A.B.Raju, IIPM Ahmedabad, who constantly guided us and

consistently encouraged us to execute theories taught in the class to practical project report.

In our efforts we would not forget the contribution of our institute IIPM Ahmedabad. We express

our deep gratitude to all the members of IIPM Ahmedabad for their valuable support, guidance and

encouragement during the preparation of the project.

We would never forget to thank the staff and students of IIPM Ahmedabad, without whose support

it would not be possible. Also we would like to thank our all of them who allows us to do a

Research in their organization, which are Nirmala dye chem., Kalptaru Power, Mesibus, HDFC Life

Insurance, Nalanda Hotels.


3/66


Executive Summary

It is very much necessary for a person to give overall ideas about the project before presenting it

before the general public to generate their interest that is why we as group members are presenting

our overall ideas regarding what we have covered in this project report.

In this project, basically, we have covered that kind of information which is so much important for

the companies. We have approached some corporate houses to garner the fruitful information for

our project and tried to know why company actually wants to introduce the ERP in the company &

what problems they tend to face while implementing the system in the company and on other side,

what steps they took to solve the problems by convincing all without compromising with quality

factor.

The most important point in this project you will find is what common problems corporate

companies would be facing during the time of implementation. This project will be really helpful

directly or indirectly to our group in the future.


4/66


Research Methodology

It is necessary for a group to reach at fruitful result of the project report on which we have basically

worked. For that, we required to garner the information regarding the project information. So we

have gone through the primary research and secondary data which is already available in the market.

Secondary data is that kind of data which is already kept at somewhere across the world and it has

been collected for a particular purpose while primary research means we are collecting the

information or data through observation, questionnaire etc. this kind of data what you will get which

is not available elsewhere except with you. This is the main difference between the primary research

and secondary data.

In our research work, basically we have gone through taking the Companies in the city who are

doing their business through Internet or we can say using ERP. Hereby, we have approached to 25

persons and these were the sample size for us in this project. We asked them some questions as a

part of primary research to garner some fruitful information to reach at our main projects objective.

On the other hand, it was necessary to have a base to make us familiar with the project task so we

went through the several reputed companies websites, brochure, articles, magazines which support

us in giving a final touch to this project report.


5/66


OBJECTIVES OF THE PROJECT

To study about the different ERP modules available

To study about the need of ERP implementation in organization

To understand the challenges faced by companies while implementing ERP

To study about the Pre-implementation and Post-implementation challenges

To study the changes in the working level after implementing ERP


6/66


Table of Content

Sr. No Particulars Page No.

1 INTRODUCTION 6

2 WHY ERP? 8

3 ADVANTAGES OF ERP 9

4 ERP MODULES 15

5 THE ERP MARKET 34

6 COMPANY WISE ANALYSIS 36

7 QUESTIONNAIRE ANALYSIS 47

8 RECOMMENDATION 61

9 CONCLUSION 63

10 BIBLIOGRAPHY 64

11 ANNEXURE 65


7/66


Introduction

Short for enterpriseresourceplanning, a business management system that integrates all facets of the

business, including planning, manufacturing, sales, and marketing.

As the ERP methodology has become more popular, software applications have emerged to help

business managers implement ERP in business activities such as inventory control, order tracking,

customer service, finance and human resources.

Enterprise resource planning's true ambition is to integrate all departments and functions across a

company onto a single computer system that can serve all those different departments' particular

needs.

Thus ERP attempts to integrate all departments and functions across a company onto a single

computer system that can serve all those different departments' particular needs.

ERP systems are IT systems which are meant to serve all the IT needs of a manufacturing company.

ERP stands for "Enterprise Resource Planning". This type of system has evolved from earlier MRP

and MRPII systems.

MRP stands for "Material Requirements Planning", and is a computer technique for taking a product

schedule as input and generating works and purchase orders as output.

MRP II was a later development of MRP which arose because MRP needed a set of business

processes surrounding it to make it effective. Not all of the business processes needed IT support,

but others did, hence MRPII systems supported a wider range of business processes than MRP. The

name MRPII came about because the new set of business processes was called "Manufacturing

Resource Planning", and because the initials were the same as MRP, the II was tagged on.

MRPII systems tended to be so wide in scope that eventually systems developed towards giving IT

support to all parts of a manufacturing company. This is when the term ERP came into use to

signify its enterprise-wide scope.


8/66


Evolution of ERP

The history of ERP can be traced back to the 1960s, when the focus of systems was mainly towards

inventory control. Most of the systems software were designed to handle inventory based in

traditional inventory concepts. The 1970s witnessed a shift of focus towards MRP (Material

Requirement Planning).

This system helped in translating the master production schedule into requirements for individual

units like sub assemblies, components and other raw material planning and procurement. This

system was involved mainly in planning the raw material requirements.

Then, in 1980s came the concept of MRP-II i.e. the Manufacturing Resource Planning which

involved optimizing the entire plant production process. Though MRP-II, in the beginning was an

extension of MRP to include shop floor and distribution management activities, during later years,

MRP-II was further extended to include areas like Finance, Human Resource, Engineering, Project

Management etc.

This gave birth to ERP (Enterprise Resource Planning) which covered the cross-functional

coordination and integration in support of the production process. The ERP as compared to its

ancestors included the entire range of a companys activities. ERP addresses both system

requirements and technology aspects including client/server distributed architecture, RDBMS,

object oriented programming etc.

Evaluation Criteria

1. Some important points to be kept in mind while evaluating ERP software include2. Functional fit with the Companys business processes.3. Degree of integration between the various components of the ERP system4. Flexibility and scalability5. User friendliness6. Ease of implementation7. Ability to support multi-site planning and control8. Technology - client/server capabilities, database independence, security9. Availability of regular upgrades


9/66


10.Amount of customization required11.Local support infrastructure12.Reputation and sustainability of the ERP vendor13.Total costs, including cost of license, training, implementation, maintenance, customization

and hardware requirements.

Why ERP?

1. To Enhance Profitability:

a) Increase in salesb) Reduce Procurement Cost

2. for Healthy Operations:

a) Integration of Systems across the Functional Departments in a Company as wellas across the Enterprise as a Whole.

b) Better Customer Service.c) Introduction of Latest Technologies as and when they are ready for the Industry

acceptanced) Expertise databasee) Avoids data redundancy

3. Competition in the Market:

a) Manufacturing Challenges.b) Manufacturing Globally.c) Distribution network spread.d) New Product introduction.e) Lower manufacturing lead time.f) Focus on industry markets.


10/66


g) Satisfying the needs of customers.h) Develop specific business methods and processes.i) Integration with third party products.

4. Demands on the Industry:

a) Better products at lower costsb) Tough competitionc) Need to analyze costs / revenues on a product or customer basisd) Flexibility to respond to changing business requirementse) More informed management decision making

5. Solving the Problems:

a) Unable to get accurate, timely informationb) Applications not complete for existing business practicesc) Modifications are time consuming or not feasible

Solving these Problems will the company ahead of competition!

The advantages of ERP

Installing an ERP system has many advantages -both direct and indirect.

The direct advantages include improved efficiency, information integration for better decision

making, faster response time to customer queries, etc. The indirect benefits include better corporate

image, improved customer goodwill, customer satisfaction, and so on.


11/66


The following are some of the direct benefits of an ERP system:

1. Business Integration2. Flexibility3. Better Analysis and Planning Capabilities4. Use of Latest Technology.

1. Business Integration: The first and most important advantage lies in the promotion of

integration. The reason why ERP packages are considered to the integrated, is the automatic data

updating (automatic data exchange among applications) that is possible among the related business

components.

Since conventional company information systems were aimed at the optimization of independent

business functions in business units, almost all were weak in terms of the communication and

integration of information that transcended the different business functions.

In the case of large companies in particular, the timing of system construction and directives differs

for each product and department/ function and sometimes, they are disconnected. For this reason,

it has become an obstacle in the shift to new product and business classification.

In the case of ERP packages, the data of related business functions is also automatically updated atthe time a transaction occurs. For this reason, one is able to grasp business details in real time, and

carry out various types of management decisions in a timely manner, based on that information.

2. Flexibility: The second advantage of the ERP packages is their flexibility. Different languages,

currencies, accounting standards and so on can be covered in one system, and functions that

comprehensively manage multiple locations of a company can be packaged and implemented

automatically. To cope with company globalization and system unification, this flexibility is essential

and one can say that it has major advantages, not simply for development and maintenance, but also

in terms of management.


12/66


3. Better Analysis and planning Capabilities: Yet another advantage is the boost to the planning

functions. By enabling the comprehensive and unified management of related business and its data,

it becomes possible to fully utilize many types of decision support systems and simulation functions.

Furthermore, since it becomes possible to carry out, flexible and in real time, the filing and analysis

of data from a variety of dimensions, one is able to give the decision-makers the information they

want; thus enabling them to make better and informed decisions.

4. Use of Latest Technology: the fourth advantage is the utilization of the latest development in

information Technology (IT). The ERP vendors were quick to realize that in order to grow and to

sustain that growth; they had to embrace the latest developments in the field of information

technology. Therefore, they quickly adapted their systems to take advantage of the latesttechnologies like open systems, client/ server technology, Internet/Intranet, CALS (Computer-

Aided Acquisition and Logistics Support), electronic-commerce, etc.

It is this quick adaptation to the latest changes in the Information Technology that makes the

flexible adaptation to changes in future business environments possible. It is this flexibility that

makes the incorporation of the latest technology possible during system customization, maintenance

and expansion phases.

What is that ERP enables?

a) Systematic Look into your Systems & proceduresb) Optimizing the processesc) Enables you to adapt yourself to new technologiesd) Discipline across the functions


13/66


Problems Taken Care of by the ERP:

a) Availability check at the time of Accepting Sales orderb) On-line Material Status & Shortagesc) Productivity Enhancementsd) Material Planninge) Customer Servicef) Cash Managementg) Inventoryh) Quality

What drives ERP?

Business drivesa) Customer Satisfactionb) Business Development - new areas, products, servicesc) Ability to face competitiond) Efficient processes required to push the company to top gear

IT drivesa) Present Software does not meet business needsb) Legacy systems difficult to maintainc) Obsolete hardware/software difficult to maintain


14/66


Drivers

The market for ERP however does not sound so depressing. Companies still have growth

avenues which include:

Less penetrated modules within the ERP suite, both horizontal and vertical. The new horizontal

areas include E-commerce, Customer relationship management, Supply chain management, plant

maintenance, field service, data warehousing, product data management, service contract

management, warehousing & distribution, transportation management etc. Among the vertical

application are industries such as retail, utilities, insurance, and government organizations.

The mid market segment presents immense opportunities. However, the margins from SMEs will be

far below that from the larger players.

Another problem that the SMEs present is the low transaction (order) size and the difficulty of

reaching out to these players. Also they are relatively less sophisticated on the technology side.

Another major demand driver will be the e-commerce wave. As more and more company move

towards e-commerce it becomes necessary to implement ERP solutions.

Inhibitors or hurdles for the growth of ERP market:

After posting significant gains for 3-4 years the ERP market may be heading towards a slowdown.

Except for SAP most other players have witnessed a slowdown in revenue growth.

The main constraints to growth for the sector can be classified as:

a) Saturation of the certain horizontal applications including Finance and accounting, MRP etcwhich accounted for nearly 45% of the ERP revenues during 1998.

b) Saturation of large customers. Most of the Fortune 500 companies and companies havingrevenues over $1bn have already implemented ERP.

c) Though the medium enterprises provide a good opportunity for growth, pricing for thesecompanies will have to be highly competitive and margins may come under pressure. Thus

smaller players who have a cost advantage will have an edge over the others.


15/66


ERP in India

Until recently Indian organizations were in a sellers market and operating in a regulated

environment. They grew by managing the environment, rather than innovating and improving

internal efficiencies. The customer was taken for granted and quality was available only at a

premium. With globalization and gradual lifting of regulation, there is a paradigm shift in running

the business.

Indian companies now need to increase customer focus, improve speed of delivery, be cost

competitive and provide value for money (improved quality at lower price). Indian companies

therefore need to implement ERP systems for improving their business processes and becoming

more competitive in the global environment. Though ERP implementation is costly and time

consuming, it has several benefits which will help recover these costs in the long run.

According to NASSCOM, during the year 1998-99, the Indian ERP market has been estimated at

R5200mn compared to Rs2800mn in the previous year i.e. a growth of 85%yoy. The growth in the

export market was far higher and more than doubled during the same time period. According to the

NASSCOM, by the end of FY2001-02, the total Indian ERP market is expected to multiply by

nearly 4 times and reach Rs65bn compared to Rs13.4bn in 1998-99.


16/66


ERP Modules

All ERP packages contain many modules. The number and features of the modules vary with the

ERP packages. Some of the most common modules available in almost all packages are:

1. Finance

2. Plant Maintenance

3. Quality Management

4. Material Management, etc

45

ERPs Central Database

Finance &Accounting

Sales&

Marketing

HumanResources

Production &Materials

ManagementERP Data

Repository

Figure 12.2Figure 12.2


17/66


5. Inventory Management

6. Manufacturing and production planning

7. Sales and distribution

Some packages will have a subset of this and some will have more modules and / or features.

1. FINANCEMODULE:

The entire concept of information technology is based on the premise that providing the right

information, to the right people, at the right time can make a critical difference to the organization.

Much of this key information could be taken from the financial data. But merely having the financial

data is not enough.

You need a set of processes and views of your data that provided up-to-the minute financial

information in exactly the form you need it to make that critical difference and help with that critical

decision.

Accounting software needs access to information in each area of organization, from R&D andmarket research through manufacturing, distribution and sales. Financial solution must provide the

management with information that can be leveraged for strategic decisions, in order to achieve

comprehensive advantage.

This section provides an overview of the financial solutions in most the ERP packages. In todays

business enterprise, you need to know that your financial decisions are based on todays data, not

numbers from records closed a month ago, or even a week ago.

And you need to know that this same todays data represents every segment of your organization's

activities, whether your enterprise stretches across a room or around the globe. This is essential,

because the most efficient way to get our enterprise to where you want it tomorrow is to know

exactly where it is today.


18/66


Whatever be the financial goals of the organization, the financial application components of the

ERP solutions work hand-in-hand to improve the bottom line.

This is true because the financial functioning is tightly integrated across all business areas and all

geographic areas. This tight integration includes all the other different modules, from materialsmanagement to human recourses to logistics.

The Finance modules of the most ERP systems provide financial functionality and analysis support

to thousands of businesses in many countries across the globe. These ERP systems include not only

financial application components, but also Human resources, Logistics, Business workflow and links

to the internet.

The finance modules of most ERP systems will have the following subsystems:

1. Financial Accounting:

a. General Ledgerb. Accounts Receivable/payablec. Special Ledgers, Fixed Asset Accountingd. Legal Consolidation.

2. Investment Management:

a. Investment Planningb. Budgetingc. Controllingd. Depreciation Forecaste. Simulationf. Calculation.


19/66


3. Controlling

a) Overhead Cost Controlling.b) Activity- Based Costingc) Product Cost Accountingd) Profitability Analysis.

4. Treasury Module

A. Financial Accounting:

The objective of a good financial accounting system is to provide companywide control and

integration of financial information that is essential to strategic decision making. The financial

accounting module of an ERP system, gives you the ability to centrally track financial accounting

data within an international frame work of multiple companies, languages, currencies and charts of

accounts.

a. General ledger

The General ledger (GL) is essential both to the financial accounting system and to strategic

decision-making. Through active integration with business processes in logistics and in the

accounting sub-ledgers, the GL serves as a central pool of financial data for financial

reporting as well as for other accounting areas

The general ledger supports all the function needed in a financial accounting system.

b. Accounts receivable and payable:

ERP system offer a financial overviews of global business partner relationships in the

Accounts, Receivable and Payable functions .these sub-ledgers are integrated ,both with the

general ledger with the areas in sales and distribution and Materials Management, where

financial data originates.


20/66


Accounts Receivable and payable transactions are performed automatically when related

processes take place in other modules.

c. Special Ledgers, Fixed Asset Accounting

Asset Accounting, managers the companys fixed assets. Within the Financial Accounting

system, Asset Accounting serves as a sub-ledger to the General Ledger, providing detailed

information on asset- related transactions.

d. Legal Consolidation

Consolidated financial statements need to be integrated effectively with operational data ay

the individual company level. By using different valuation methods, you can plan balance

sheet strategies to suit the companys requirements.

B. Investment Management

Investment Management provides extensive support for investment processes right from planning

through settlement. Investment management facilitates investment planning and budgeting at a level

higher than that needed for specific orders or projects. You can define an investment program

hierarchy using any criteria-for example, department-wise.

Investment program allows you to distribute budgets, which are used during the capital spending

process. The system helps you monitor, and thereby avoid, budget overruns.

Investment Management provides tools, enabling you to plan and manage your capital spending

projects right from the earliest stage.

Investment Management module recognizes the importance of the asset accounting aspects of

investment measures. The system automatically separates costs requiring capitalization from coststhat are not capitalized, debiting the correct costs to the asset under construction.

Asset accounting provides precise proof of origin for all transactions affecting acquisition and

production costs.


21/66


C. Controlling

The controlling system gathers the functions required for effective internal cost accounting. It offers

a versatile information system, with standard reports and analysis paths for the most common

questions. In addition, there are features for creating custom reports to supplement standard reports.

a. Overhead Cost Controlling

Many organizations experience a significant increase in the percentage of indirect costs,

which cannot be directly assigned to either the products manufactured, or to the services

rendered. The Overhead Cost Controlling subsystem focuses on the monitoring and

allocation of overheads.

b. Cost Centre Accounting

Cost centre accounting analyses where overheads occur within the organization. Costs are

assigned to the sub-areas of the organization where they originated.

They system offers a wide variety of methods for allocating posted amounts and qualities.

c. Overhead Orders

Overhead orders subsystem collects and analyses costs, based on individual internal

measures. This system can monitor and automatically check budgets assigned to each

measure.

d. Activity- Based Costing

The goals of the entire organization should come before the goals of individual departments,

when it comes to business process reengineering. The Activity- Based Costing module is a

response to the growing need for monitoring and controlling cross-department business

process, in addition to functions and products.


22/66


e. Product Cost Controlling

Product Cost controlling module determines, the costs arising from manufacturing a

product, or providing a service. Plan and standard values, serves in valuating warehouse

stock and for contrasting revenues received with costs. In addition, the values in productCost Controlling are crucial for determining the lowest price limit for which a product is

profitable.

f. Cost Object Controlling

It helps to monitor manufacturing orders. Integration with the logistics components results

in a logistical quantity flow that provides instant information on actual cost object costs,allowing ongoing costing calculations at any time.

g. Profitability Analysis

It examines the sources of returns. As part of sales controlling. Profitability Analysis is the

last step in cost-based settlement, where revenues are assigned to costs according to the

market segment. This subsystem can help defining any market segment-distinguishing, forexample between products, customers, orders, sales organizations, distribution channels and

business areas- and evaluate it, according to contribution and revenue margins.

D. Treasury Module

Company can gain significant competitive advantage by efficiently managing the short, medium, and

long-term payment flows and the resulting risk exposure.

Tasks such as short-term monitoring and concentration of bank account balances, medium-term

planning, and forecasting of incoming and outgoing resources in accounts receivable and payable, to

a long-term view of areas such as materials management and sales, underline the importance of

integrating information from various company divisions.


23/66


Linking these operating divisions to realized and planned financial transactions and positions in

Treasury, has a significant impact on the companys success. Such integration also facilitates

management and control of cash flows, and risk positions through all the divisions in the company.

The treasury components provide you with a basis for effective liquidity, portfolio and risk

management.

a. Cash Management

The Cash Management subsystem allows yo9u to analyze financial transactions for a given

period. Cash Management also identifies, and records future developments for the purpose

of financial budgeting. The companys payment transactions are grouped into cash holdings,

cash inflows and cash outflows.

The Cash Management provides information on the sources and uses of funds to secure

liquidity in order to meet payment obligations when they become due.

The Cash Management also monitors and controls incoming and outgoing payment flows,

and supplies the data required for managing short term money market investments and

borrowing. Depending on the time period under review, a distinction is made between cash

position, short-term cash management and medium and long-term financial budgeting.

b. Treasury Management

Treasury Management component offers functions for managing financial deals and

positions, from trading to transferring data to Financial Accounting. Treasury Management

also supports flexible reporting and evaluation structures for analyzing financial deals,

positions and portfolios. For short-term liquidity and risk management, you can use the

money market, or to eliminate currency risks.


24/66


25/66


d. Funds Management

Funds Management system enables you to control various funds commitments and

determine how much of the budget has already been utilized via availability checking. The

information system can supply with information at any time, on when, where, and howfunds commitments arose. Analyses by responsibility area and commitment items allow

identifying any budget bottlenecks.

e. Enterprise Controlling

Enterprise Controlling comprises of those functions that will optimize shareholder value,

while meeting internal objectives for growth and investment. This module usually includes

executive Information System, Business planning and Budgeting, Consolidation, and profit

Centre Accounting.

f. Executive Information System

The Executive Information System provides an overview of the critical information

necessary to manage the organization. This component integrates data from other ERP

components, and non-ERP data sources both inside and outside the enterprise.

Business planning and budgeting. Business planning and budgeting supports the

management teams of business units and groups in the calculations of business targets, such

as ROI. This module also supports central investment planning, budget release and tracking.

g. Profit Centre Accounting

Profit Centre Accounting analyses the profitability of internal responsibility centers. A

companys organizational structure is represented in the form of a profit centre hierarchy,

with the profit centre as the smallest unit of responsibility. All business transactions in

financial accounting, Material Management, Asset Management, and Sales and Distribution,

which affects profits, are automatically reflected in profit Centre Accounting


26/66


2. Plant Maintenance Module

The achievement of world class performance demands delivery of quality products expeditiously and

economically. Organizations simply cannot achieve excellence with unreliable equipment. The

attitude towards maintenance management has changed as a result of quick response manufacturing,

Just-in-time reduction of work in process inventory and the elimination of wasteful manufacturing

practices.

Machine breakdown and idle time for repair was once an accepted practice. Times have changed.

Today when a machine breaks down, it can shut down the production line and the customers entire

plant.

The preventive Maintenance module provides an integrated solution for supporting the operational

needs of an enterprise-wide system. The plant Maintenance module includes an entire family of

products covering all aspects of plant/equipment maintenance and becomes integral to the

achievement of process improvement.

The major subsystems of a plant Maintenance module are:

a) Preventive Maintenance Controlb) Equipment Trackingc) Component Trackingd) Plant Maintenance Calibration Trackinge) Plant Maintenance Warranty Claims Tracking

a. Preventive Maintenance Control

Preventive Maintenance Control provides planning, scheduling and control of facilities and

equipment. Equipment lubrication, components replacement and safety inspection can be planned

schedule, and monitored. Maintenance tasks can be tracked for each machine, or piece of

equipment, by two user defined modes, as well as calendar day frequency.

These modes could include tracking by hours of operation, units of production produced, gallons of

fuel consumed, or the number of days in operation since the last service interval.


27/66


Preventive Maintenance Control enables organizations to lower repair costs by avoiding downtime,

machine breakage and process variability. Companies achieve higher machine utilization and

improved machine reliability and tolerance control, along with higher production yields.

b. Equipment Tracking

Equipment is an asset that needs to be monitored and protected. In many situations, equipment

maintenance costs constitute the single largest controllable expenditure of an organization. All facets

of plant location history and utilization history are described and tracked.

This history includes acquisition and disposition information and associations between different

pieces of equipment to pinpoint operational dependencies. Running totals for operational units todate 9miles, hours, days, units of production, etc) are also provided.

Each piece of equipment is defined by a model and serial number. User-defined data sheets can be

developed which allow for the grouping of user data into formats that can be linked to equipment

specifications, which provide detailed information for technical specialists working in equipment

operations, maintenance and transportation control.

c. Component Tracking

Components are, typically, subsets of larger equipment and deserve the same amount of cost

controlling scrutiny. Component tracking enables equipment managers to identify components with

chronic repair problems. They can determine whether a repair or replacement should be covered by

warranty.


28/66


Planning components replacements, rather than waiting for components failure to occur, reduce

unscheduled equipment downtime. Components tracking include repair/exchange history and

components service life.

d. Plant Maintenance Calibration Tracking:

Plant Maintenance Calibration Tracking allows organizations to leverage their investment in the

plant Maintenance module by providing for the tracking of equipment calibration in support of

ISO9000 requirements.

e. Plant Maintenance Warranty Claims Tracking

Plant Maintenance Warranty Claims Tracking is an administrative system designed to provide

control of all items covered by manufacturer and vendor warranties. It enables plant management to

recover all of the warranty, reimbursements to which they are entitled but have not been able to

recover in the past.

Features include the ability to establish the type and length of warranty, for example, elapsed day,

months, mileage stipulation, or operating units. A complete history is performed for each item

covered by the warranty, and complete information regarding the warranty service provider is

generated.

3. Quality Management Module

The ISO9000 series of standards defines the functions of quality management and the elements of a

quality management system. The functions in the Quality Management module support the essential

elements of such a system. The other integrated modules in the system complement this

functionality.

The ISO standards require that quality management systems penetrate all processes within an

organization. The task priorities, according to the quality loop, shift form production

(implementation phase) to production planning and product development (planning phase) to

procurement and sales and distribution, as well as into the entire usage phase.


29/66


CAQ and CIQ

Computer-integrated Quality Management (CIQ) is more appropriate term in comparison to

Computer-Aided Quality Management (CAQ), because an isolated CAQ system cannot carry out the

comprehensive tasks of a quality management system.

The ERP system takes this into consideration by integrating the quality management functions into

the affected applications themselves (for example, procurement, warehouse, warehouse

management, production and sales/distribution), instead of delegating them to isolated CAQ

systems.As a result of this approach, the processes described in the quality manual can be

implemented and automated in the electronic data processing (EDP) system.

As a part of the Logistics applications, the Quality Management module handles the traditional tasks

of:

1.Quality planning2.Quality inspection3.Quality Control.

For example, it supports quality management in procurement, product verification, quality

documentation and in the processing of problems. The quality Management modules internal

functions do not directly interact with the data or processes of other modules.

Quality Management Module-Functions

The quality Management module fulfills the following functions:

1. Quality planning (Management of basic data for quality planning and inspection planning,

Material specifications, Inspection planning).

2. Quality Inspection ( Trigger inspections, Inspection processing with inspection plan selection

and sample calculation, print shop papers for sampling and inspection, Record results and defects,

Make the usage decision and trigger follow-up actions).


30/66


3. Quality Control: (Dynamic sample determination on the basis of the quality level history,

Application of statistical process control techniques using quality control charts. Quality scores for

inspection lots, Quality notifications for processing internal or external problems and initiatingcorrective action to correct the problems, Inspection lot processing and problem processing, Quality

Management Information system for inspections and inspection results and quality notifications).

Computer-integrated Quality Management (CIQ)

The integration of Quality Management in the ERP systems considerable advantages because only

an integrated system can support all the elements of a quality management system, according to ISO9000. The integration allows the quality management functions to influence all processes within a

company, thereby affecting all phases of a products life cycle.

The Quality Management module uses the systems integration to link the tasks of quality

management with those of the other applications, such as materials management, production,

sales/distribution and cost accounting. An inspection that is triggered automatically upon goods

receipt is an example of this.

The Quality Management module is integrated with the master data and

processes of the following applications:

1. Materials management (purchasing, inventory management,warehouse management, material requirements planning).

2. Production ( work scheduling, shop floor control)3. sales and distribution ( delivery, creation of quality certificates)


31/66


4. Materials Management Module:

The Material Management module optimizes all purchasing processes with workflow-driven

processing functions, enables automated supplier evaluations, lower procurement and warehousing

costs with accurate inventory and warehouse management and integrates invoice verification. The

main modules of the Material Management module are:

1. Pre-purchasing Activities

2. Purchasing

3. Vendor Evaluation


5. Invoice Verification and Material Inspection.

Pre-purchasing Activities

This system supports the complete cycle of bid invitation, award of contract and acceptance of

services. The pre-purchasing activities include maintaining a service master database, in which the

descriptions of all services that are to be procured can be stored. The system also keeps a separate

set of service specifications that can be created for each concrete procurement project or proposed

procurement in the purchasing document. Sets of service specifications may include both items with

services and items with materials.

When creating such specifications, the user does not have to list individual services manually.

Instead, the data is simply copied from the master data. Use of this technique means that data only

has to be entered once. The manual entry effort is reduced to a minimum.

There are two ways of entering service specifications-planned and unplanned. Planned service

specifications mean that service whose precise nature and intended scope are already known at the

beginning of a procurement project.


32/66


Purchasing

Purchasing is a very important component of the Material Management module. The Material

Management module is fully integrated with other modules in the system. It supports all phases of

material management: materials planning and control, purchasing, goods receiving, inventory

management and invoice verification. Good communication between all participants in the

procurement process is necessary for purchasing to function smoothly.

Purchasing communicates with other modules in the system to ensure a constant flow of

information.

For example, it works side by side with the following modules:

1. Cost Accounting System: Orders for materials and services consumed directly illustrate the

interface to the cost accounting system. This is because they can be assigned to a cost centre directly.

2. Financial Accounting: Purchasing and Accounting both maintain information on vendors.

Information on each vendor is stored in a vendor master record which contains both accounting

and purchasing information.

3. Sales and Distribution: Within the framework of material requirements planning (MRP),

customer requirements from Sales can be passed on to purchasing. In addition, when creating a

requisition, you can assign it to a sales order. Purchasing system performs tasks like procurement of

materials and services, determination of possible sources of supply for a requirement identified by

the materials planning and control system or arising directly with in a user department, monitoring

of deliveries and payments to vendors, and so on.

4. Vendor Evaluation

The vendor evaluation component has been completely integrated into the Material Management

module. Information such as delivery dates, prices and quantities can be taken from purchase orders.

Vendor Evaluation also uses data from Quality Management, such as the results of incoming

inspections or quality audits.

It also assesses basic data in Materials Management, such as goods receipt data from Inventory

Management. In the case of procurement of materials, the system helps you select sources of supply


33/66


and facilitates the continual monitoring of exiting supply relationships. It provides you with accurate

information on prices, and terms of payment and delivery.

By evaluating vendors, you can improve your enterprises competitiveness. You can quickly

determine and resolve any procurement problems that may arise on the basis of detailed informationand in collaboration with the relevant vendors.

In the case of procurement of services, you can check the reliability of the vendors from which you

procure services on a plant by plant basis. You can determine whether the vendors perform the

services within the specified timeframes and appraise the quality of the work carried out.


Inventory Management system allows you to manage your stocks on a quantity and value basis, plan,enter and check any goods movements and carry out physical inventory.

In the Inventory Management system, the physical stocks reflect all transactions resulting in a

change in stock and thus, in updated inventory levels.The user can easily obtain an overview of the

current stocks of any given material.

For each material, not only are the stocks in the warehouse shown, but also the stocks ordered but

not yet delivered, reserved for production or for a customer, and the stocks in quantity inspection

can be monitored.

The stocks are managed not only on a quantity basis but also by value- a prerequisite for cost

accounting. With every goods movement, the following values are updated:

1. Stock value for inventory management

2. Account assignment for cost accounting

Both the quantity and the value are updated automatically when entering a goods movement. Most

Inventory Management systems support inventory methods like periodic inventory, Continuous

Inventory, Inventory sampling and Cycle counting.


34/66


Invoice Verification and Material Inspection.

Invoice Verification component is part of the Material Management system. It provides the link

between the material Management components and the Financial Accounting, Controlling and Asset

Accounting components.

Invoice Verification in Material Management serves the following purposes:

1. It completes the material procurement process-which starts with the purchase requisition,

continues with purchasing and goods receipt and ends with the invoice receipt.

2. It allows invoices that do not originate in materials procurement (for example, services, expenses,

courses, course costs, etc.) to be processed.

3. It allows credit memos to be processed, either as invoice cancellations or discounts.

Invoice verification does not handle the payment or the analysis of invoices. The information

required for these processes is passed on to other departments.

Each invoice contains various items of information. To post an invoice, you must enter this

information into the system. If an invoice refers to an existing transaction, certain items of

information will already be available in the system. The system proposes this information as default

data so that you only need to compare it and, if necessary, correct any possible variances.

If an invoice refers to a purchase order, for example, you only need to enter the number

Market players and profiles

While 52% of the total market is accounted for by the unorganized and small players the rest is

accounted for by around 10 major players. SAP contributes 17% of the total revenues followed by

People Soft, Oracle, Baan and J D Edwards.

SAP

SAP pioneered Enterprise Resource Planning. The companys R/3 System, a family of integrated

components such as Production, Sales and Distribution, Controlling and Human Resources can be


35/66


used as a whole or individually. R/3 is also internet-compatible and can be easily combined with

other types of software or customers own systems.

Probably the only leader, SAP, according to AMR has a market share of 33% which is higher

compared to the next 4 competitors put together. The company has more than 19,300 employeesworldwide. The companys R/3 system is in use in more than 107 countries.

The ERP market

During the last 3-4 years the ERP market witnessed considerable growth rates driven mainly by the

Y2K crisis. ERP companies including SAP, PeopleSoft, Oracle and Baan etc have recorded

consistent growth in revenues, which were well above the 20% mark.

However, recent trends in the industry indicate a slowdown in the traditional ERP market. Theslowdown has been attributed to the Y2K crisis, which is round the corner and the stagnant world

economy. Growth rates which were as high as 40% per annum is expected to slow down

considerably to around 15-20%.

However, the market is also witnessing new avenues like the emergence of SMEs (Small and

Medium Enterprises turnover of $50mn to $500mn) as a major ERP spender with significant

demand for module specific implementation. As the Fortune 500 market for product license revenue

becomes saturated, larger ERP firms are shifting their focus to the middle market.

Also, other areas like Supply Chain Management (SCM), Customer Relationship Management

(CRM), extended ERP and Web enabled ERP are catching attention.

During the year 1998 the total ERP market is estimated to be around $17.5bn by IDC a growth rate

of around 26%yoy.


36/66


The ERP market is widely spread with the top ten players accounting for almost 48% of the total

market the rest of the market is accounted for by the small and regional players. However, the top

end of the market is captured by a few players. SAP, the market leader, accounts for 17% of the total

market (1998). Other major players include Baan, Oracle, and PeopleSoft.

Now for showing the primary research which was carried out by our group we would like to firstly

like to take names of all the companies which helped us a lot during this project, so now firstly let us

start critical analysis of the companies which we surveyed. There is a designed format in which we

will analyze the whole company.


37/66


Company Analysis


38/66


To analyze the companies first 2 parts would be in sequence in this chapter & the remaining 2 would

be in conclusions & recommendations respectively.

1st Part: Need identification

2nd part: Pre implementing Steps

.

HDFC Standard Life Insurance Company Limited. is one of India's leading private insurance

companies, which offers a range of individual and group insurance solutions. It is a joint venture

between Housing Development Finance Corporation Limited (HDFC Limited), India's leading

housing finance institution and a Group Company of the Standard Life Plc, UK. As on February 28,

2009 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of

equity in the joint venture, while the rest is held by others.

Reason of implementing ERP? Needs of the technology.

Recognizing the market challenges and the importance of service standards in the Indian life

insurance industry, HDFC Standard Life has been engaging technology as a key component in

standardizing and automating its core business processes. The SAP deployment is expected to

improve data accuracy and eliminate manual processes, giving business executives in-built

business intelligence to aid decisions.

This is what the HDFC had to say when they were basically asked that what made them think to

implement ERP in the company; here the main thing which can be identified is that the company

basically was facing some errors in the manual entry so they basically wanted to automate the things.


39/66


Selection of the ERP supplier.

HDFC Standard Life, a private life insurance company, has selected SAP as its technology partner to

enhance its customer centricity and set new benchmarks in service standards. The enterprise-wide

deployment of SAP solutions will integrate the companys internal business functions including

finance, operations, incentive and compensation management, HR activities. .

"Technology is a critical enabler in fuelling our business priorities. We, at HDFC Standard Life, are

proud to be associated with SAP and believe that SAP will help us facilitate better understanding of

our customers apart from enhancing our delivery capabilities, running more profitably and

productively," said Paresh Parasnis, principal officer and executive director, HDFC Standard Life.

HDFC Standard Life especially chose SAP because it fit the criterion of a highly-scalable

solution that will meet their current and future needs. Right from core business processes to

distribution channel management and CRM, the SAP platform provides an integrated solution that

enables a single view of business data across the organization.

Pre Implementation Process.

The company was having one of the biggest challenge which was that they wanted all the employees

to put all the data entry in place of manual , so what the company started with is at first they had

started training their employees for the particular thing, and during that training there is one very

unique thing about the organization which is that they have a central team for training which means

that the trainers generally are in house so the training which is given to the candidates is generally

successful.

The time taken while implementing was long as they wanted a universal model throughout the

country so there were many places where there were hurdles which the company had faced.


40/66


Kalpataru Power Transmission Limited is one of the leading companies in the field of Turnkey

projects for EHV Transmission Lines up to and including 800 KV in India and Overseas. As an

EPC contractor, our scope of work includes design, testing, fabrication, galvanizing of towers and

construction activities from survey, civil works/ foundation, erection to stringing and

commissioning of EHV lines, besides procurement of items such as conductors, insulators,

hardware accessories etc.

Located at Gandhinagar Gujarat, in Western India, Kalpataru Power Transmission is a public listed

company with a turnover of USD 385 Million (Rs. 19.1 Billion) and annual production of

80,000 MTs till 2007-08. The company has a net worth of over USD 200 Million and an order

booking of over Rs 50 Billion (USD 1Billion). The company has also attained distinction of

crossing the USD 800 Million (Rs. 40 Billion) market capitalization. On a combined basis (withJMC Projects), the consolidated turnover has crossed Rs 32.8 Billion (USD 655 Million).

Kalpataru Power has two large Fabrication Plants with an annual installed capacity of 108,000 MTs

(with a capacity addition of 24,000 MTs in Oct, 2008) one of the largest in the world and is equipped

with modern machineries (including 16 CNC machines) and automated temperature controlled

Galvanizing Baths, besides its own state-of-the-art Testing Station and R & D Centre. It was the

first company in 1994 in the Indian transmission industry to beISO 9001certified.

Reason of implementing ERP? Needs of the technology.

Recognizing the market challenges and the importance of service standards in the Indian life

insurance industry, KALAPATRU POWER TRANSMISSION LTD. has been engaging technology

as a key component in standardizing and automating its core business processes.
http://www.kalpatarupower.com/kalpataru-corporate-profile.htmlhttp://www.kalpatarupower.com/kalpataru-corporate-profile.htmlhttp://www.kalpatarupower.com/kalpataru-corporate-profile.htmlhttp://www.kalpatarupower.com/kalpataru-corporate-profile.html


41/66


The SAP deployment is expected to improve data accuracy and eliminate manual processes, giving

business executives in-built business intelligence to aid decisions.

This is what the KALAPATRU POWER TRANSMISSION LTD. had to say when they were

basically asked that what made them think to implement ERP in the company; here the main thingwhich can be identified is that the company basically was facing some errors in the manual entry so

they basically wanted to automate the things.

Selection of the ERP supplier.

The company had proudly selected SAP as the supplier of the erp for them. The company also has

to say that who in this world know erp better than sap so that became one of the reasons of

selection and also indicates that how successful the brand SAP has become. The company after

making the decision of the supplier they selected the implementer for the erp sand implementer was

IBM India. This indeed was a very highly professional implementer.


The company had arranged for learning changes to the employees, they had planned a schedule of

learning in which they had selected some of the key people form the company and had send to the

learning center of the company itself in which there was a training team which had come from the

implementing partners IBM so this was the main process how they got trained mainly. the company

had also faced many of the challenges during this training also as the trainers who had came from

the implementing partner they were mainly not from the local area of the company , so the result to

this particular thing the main thing that happened was the intellectual clashes which took place

between the trainers and also the employees.


42/66


Masibus was established in 1975 to manufacture process control instruments in India. Since its

inception, Masibus has evolved into a high technology organization with core competencies in

process control instrumentation, automation, systems integration & asset management technology.

For over three decades Masibus has scaled unprecedented heights in the design, development &

manufacture of microprocessor based instrumentation products and automation solutions.

MasibusProducts, Projects & Condition Monitoring Divisions offer a wide variety of products &

customized solutions to its 5000 plus customers, in numerous vertical segments. With 9 branch

offices in India, an international office in Sharjah, along with a host of Dealers & System Integrators,

three manufacturing facilities in India produce a complete range of process instrumentation &

turnkey automation solutions, which include Calibrators, Indicators, Controllers, Scanners, Remote

Terminal Units, Signal Isolators/Converters, Power Meters & Transducers, I/O Modules,

HMI/SCADA software products, customized OEM products as well as Control Panels.

Masibus Projects Division offers complete systems solutions for several vertical segments like oil &

gas, water treatment, steel, pharmaceuticals, fertilizers, chemicals, power, cement, paper, etc.

Masibus Condition Monitoring Division offers products and services in Vibration Monitoring &

Infrared Thermography. It also offers on-line turnkey asset management solutions.

Masibus has tied up with many internationally reputed instrumentation & automation companies like

Toshiba Japan, Qualitrol Hathaway, U.K., Martel Beta Calibrators - USA, Vatron Austria,

Citect - Australia, SetraUSA, Lord CorporationUSA, CTCUSA, WilliamsonUSA, FLIR

Sweden, MoxAustralia, ShinkoJapan, InorSweden, to name a few.


43/66


44/66


Established in 1975, Masibus has 10 offices countrywide and strategic partners in the US and

Singapore and has 125 employees.

Interestingly, Masibus has the distinction of having developed a unique software programme for the

federal authorities in Florida to help track down the over $1 million worth of laptops stolen in the

US annually. The software won the second best prize in Florida last year, Mr Subramaniam revealed.

Meanwhile, its new strategic partner Navision is a leading global provider of cost effective and

adaptable integrated business solutions and has a client list of over 1.33 lakh customers worldwide, a

global network of more than 2,258 partners and 1,130 employees in over 30 countries.

The second stage which came was the selection of the implementing partner so the company had

then decided to take the official selling agents of the software which was INTECH providerswhich is located in the city only, the company also had ensured the implementing partner that the

whole software has to be modified like anything so that in the end there is no problem for the

employees. The benefit which the company was able to gain was that the implementing partner was

the part of the city so they could easily adopt the change.


This was the three days program me by which the company had started for all the employees who

were the key users for the system.


45/66


46/66


Basic chemicals or "commodity chemicals" are a broad chemical category including polymers, bulk

petrochemicals and intermediates, other derivatives and basic industrials, inorganic chemicals, and

fertilizers. Typical growth rates for basic chemicals are about 0.5 to 0.7 times GDP. Product prices

are generally less than fifty cents per pound. Polymers, the largest revenue segment at about 33

percent of the basic chemicals dollar value, include all categories of plastics and man-made fibers.

The major markets for plastics are packaging, followed by home construction, containers,

appliances, pipe, transportation, toys, and games. The largest-volume polymer product, polyethylene

(PE), is used mainly in packaging films and other markets such as milk bottles, containers, and pipe.

Polyvinyl chloride (PVC), another large-volume product, is principally used to make pipe forconstruction markets as well as siding and, to a much smaller extent, transportation and packaging

materials.

Polypropylene (PP), similar in volume to PVC, is used in markets ranging from packaging,

appliances, and containers to clothing and carpeting. Polystyrene (PS), another large-volume plastic,

is used principally for appliances and packaging as well as toys and recreation. The leading man-

made fibers include polyester, nylon, polypropylene, and acrylics, with applications including

apparel, home furnishings, and other industrial and consumer use. The principal raw materials forpolymers are bulk petrochemicals.

Chemicals in the bulk petrochemicals and intermediates are primarily made from liquefied petroleum

gas (LPG), natural gas, and crude oil. Their sales volume is close to 30 percent of overall basic

chemicals. Typical large-volume products include ethylene, propylene, benzene, toluene, xylenes,

methanol, vinyl chloride monomer (VCM), styrene, butadiene, and ethylene oxide. These chemicals

are the starting points for most polymers and other organic chemicals as well as much of the

specialty chemicals category.


47/66


Other derivatives and basic industrials include synthetic rubber, surfactants, dyes and pigments,

turpentine, resins, carbon black, explosives, and rubber products and contribute about 20 percent of

the basic chemicals' external sales. Inorganic chemicals (about 12 percent of the revenue output)

make up the oldest of the chemical categories. Products include salt, chlorine, caustic soda, soda ash,

acids (such as nitric, phosphoric, and sulfuric), titanium dioxide, and hydrogen peroxide. Fertilizers

are the smallest category (about 6 percent) and include phosphates, ammonia, and potash chemicals.

Software provider: SAP.


48/66


Questionnaires Analysis Part


49/66


HDFC STANDARD LIFE INSURANCE.

Number of Employees asked: 20

1) Did ERP implication change your job work?

This question in the HDFC banking clearly shows that the employees were forced to change their

working style and working habits which automatically results into the change of KRA for all the

employees.

70%

30%

Yes

No


50/66


2) How much time did you take to master ERP after given a proper training?

The above mentioned response automatically shows that the in house training which was provided

was not much effective. HDFC standard life insurance has a team which is in house it clearly shows

the in efficiency of the team.

20%

20%

25%

25%

10%

One week

One Month

3 Months

6 Months

Rarely mastered


51/66


3) Do you still face any problem ERP?

4) What are the degrees of problems which you encounter?

The main impact of the above 2 questions is that the company itself is not taking the pain to know

that, are the employees fit enough to use the service which they are being provided. This it becomes

of the challenge while implementing ERP.

40%

60%Yes

No

5%15%

25%45%

10%

Huge Importance

Very Important

Important

Moderate

Less Important


52/66


5) Do you prefer ERP then the old system?

This question clearly says the main answer to the whole research objective as the people of the

company were not happy with the ERP which was implemented in their company.

After having a look at some the main questions now we can figure out some of the challenges while

implementing ERP with respective to HDFC Standard life insurance they are:

1) Employees Communication: If the employees are not communicated once also then theyare generally not happy with the change which the company is imposing.

2) Effective training: if there is any particular training programme which is beingimplemented to the company then they have to ensure that the programme or the module

which is made is user friendly.

3) Lack of customization: When the company is purchasing the SAAS during that time theyshould also ensure that the implementing partner should assist them properly about the

customization offered, as in the case of HDFC standard life insurance rarely any

customization was seen.

55%

45%

Yes

No


53/66


Kalpataru Power Transmission Ltd.

Number of Employees asked: 20

1) Did ERP implication change your job work?

This question it clearly shows that the employees were not forced to change their working style and

working habits which automatically results not into the change of KRA for all the employees. This

automatically is the signal of approval of the ERP in the organization.

20%

80%

Yes

No


54/66



The above mentioned responses automatically show that the training which was given by the

implementing partners was good and also they were able to impart the required knowledge to the

employees. This directly shows that the training which is outhouse is much more effective.

3) Do you still face any problem ERP?

32%

41%

14%

9%4%

One week

One Month

3 Months

6 Months

Rarely mastered

30%

70%

Yes

No


55/66



The main impact of the above 2 questions is that the company itself has taken a good efforts to

ensure that the employees are knowing what the things they are suppose to do and how they are

suppose to do. The duration of training itself shows the effectiveness of it.

5%

15%

5%

45%

30%

Huge Importance

Very Important

Important

Moderate

Less Important


56/66


57/66


58/66



Basically, what company did initially was quite similar to other companies in order to avoid some

kind of burden in terms of expenses lie first they trained the most senior persons who are very much

familiar with the functions so that problems could be found at first stage and after getting training

they will train other persons who are working with them who are seniors but not the like the top

level persons within one month and finally who are not familiar with the system will have a training

time for the 3 to 6 months on the basis of understanding power.

37%

21%

32%

5% 5%

One week

One Month

3 Months

6 Months

Rarely mastered


59/66


60/66



Generally, on the basis of observation we get to see that our employees would be facing a problem

due to the system but it also needs to check the importance of the problems while working on it

rather than shouting in the air without knowing it properly so as per companys concerned persons,

company is facing the problems but not that kind of which are extremely important which require to

work on immediately so they are not bothered about it.

5% 5%5%

35%

50%Huge Importance

Very Important

Important

Moderate

Less Important


61/66


5) Do you prefer ERP then the old system?

Different people, different views you will have when more persons are working on the same system.

Reasons can be many more but the real logic tend to different in thinking. In the company, we have

found more employees who are saying that they are happy with the new system and dont want to

get switch over to the old systems because it will be very complicated and time consuming to do it

and moreover, how can we forget the mental stress when you want to change the system which will

take place at work place.

15%

85%

Yes

No


62/66


Recommendation

Before presenting our views in this recommendation matter, we would like to express our feelings

on this matter over here. Most of the entrepreneurs know what we need to take care during the time

of implementation but it happens that it becomes so much difficult to act on the recommendation

work. On the other hand, it happens that a particular matter goes out of mind at the time of

implementation. Now hereby we as a group present our recommendation points after making a

healthy discussion with the corporate groups what we have found through the observation and

available information.

Some corporate executive people want to have a competitive system in their own company to lead

in the competition but what happen is they forget to think upon why they actually want this ERP

system because other companies are having so they want it anyhow. It means they themselves are

not clear about their objective. So first think deeply on it and discuss healthy way with your

concerned persons of the company.

It generally happens that top level management takes an important decision on their own way and

applies it as they feel which ignores the contribution of other level departments. So as a group, we

recommendation is to communicate your objective and decision with your internal persons to get

the contribution on it and these are the people who finally will be working on this. It will help the

company to work on the problems at initial stage rather than seeing a conflict game with your

internal people in near future.

Everything is possible, we all know this but how we are doing it matters a lot in your work. Dont

apply just sake of applying because other companies are working on it. This time will demand the

more involvement level of the top management because it is a training time and if the management

invests the money behind the training method without working on the training modules, expert

team, training time and how will you deliver it at work place then what will be the value of ERP

system in which company has invested lakhs of Rupees. In short, it is in a companys hand to decide

what to do and how to do it?


63/66


We all want to run speedily without taking a pause and the management would be keeping the same

expectation from all the departments. For that, management needs to apply the system in a

particular departments where they can easily control the problems if occur rather going live directly

which might not be controllable. By this sample testing, company can come to know the problems

which might be ignored during the discussion time. This will support the company to go live with

the system by rectifying the mistakes so company can run ahead swiftly with the help of all the

departments of the company.

Needs to take care that your will not let your achievement convert into the luck. By this statement,

we want to express that keep an eagle eye on the system of the company and work continuously on

it so management can have information regularly about the working of the system. This will help to

prevent the problems rather than let it convert into the conflicts among the management and the

employees in near future.


64/66


Conclusion

We have really learned a lot while putting our sincere endeavor on this project and have also felt that

ERP really helps the company to work speedily and helps to save the time and money if they can use

it in proper way rather just sake of applying it because others are applying in the company. To get

the achievement in this kind of project, 4 things matter a lot are objective, communication, training

and re- working and for this, managements involvement is compulsory which is an implied

condition for the achievement in this project rather than let it convert into luck.


65/66


Bibliography

1. www.sap.com2. www.peoplesoft.com3. www.erpgenie.com4. www.wikipedia.org5. www.ebsco.com6. www.erpsupersite.com
http://www.sap.com/http://www.sap.com/http://www.peoplesoft.com/http://www.peoplesoft.com/http://www.erpgenie.com/http://www.erpgenie.com/http://www.wikipedia.org/http://www.wikipedia.org/http://www.ebsco.com/http://www.ebsco.com/http://www.erpsupersite.com/http://www.erpsupersite.com/http://www.erpsupersite.com/http://www.ebsco.com/http://www.wikipedia.org/http://www.erpgenie.com/http://www.peoplesoft.com/http://www.sap.com/


66/66

Annexure

final project report in industrial research on

Documents