shiva and bannari gap study
TRANSCRIPT
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Gap Study
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Subject : GAP STUDY
Place &
Date
: Shiva TexYarn Limited, Dindigul.
04th,5th and 18th Feb 2008 at Mills, 13th Feb 2008 at H.O.
: Mr. D.L. JeevandassMr. M. KannanMr. S. Sasikumar
KALPATHARU Software Ltd,1023, Avanashi Road,Coimbatore – 641 018.Ph: 0422 2212561
Participants
: At Mills:Mr. K. Prabakaran, GMMr. Mathavan, EDP
Mr. Sivakumar, EDP
Mr. A.Sankar, AccountsMr. Kumaresan,AccountsMr. Venkatasubramanian,Stores
Mr. Ragunathan , Stores
Mr. Manikandan, Time officeMs.Thilagavathi, Time officeMr. Raj kumar, QC
Mr. Vasudevan, ElectricalMr. Sagayaraj, ElectricalMr. Saravanakumar, Despatch
Mr. Raja , Despatch
Mr. Dinesh Kumar, BASML IMr. Ramasamy, BASML I
At H.O:Mr. S. Seshadri, GM (Finance)Mr. C.S. Balakumar, GM (Accounts)
Mr. Sankar Kumar, GM (Marketing)Mr. R. Rajasekar, EDPMr. Veera raj, EDPMr. Duraisamy
Mr. Natarajan
Mr. GnanaveluMr. Sakthivel
Shiva Texyarn Limited /Bannari Amman Spg Mills Ltd.Trichy Road,
Dindigul .
Shiva Texyarn Limited /Bannari Amman Spg Mills Ltd.MTP Road,
Coimbatore.
Objective:
The main objective of the gap study is to understand the current mills practices and
procedures vis a vis Kalsofte ERP system. Every individual process followed by mills isdetailed and mapped to the procedures in the system during the gap study.
Result:
The gaps between the mills practices and existing system are captured and documented.The captured details, module wise and process wise, are tabulated. Gaps and activities to
be carried out by mills / Kalpatharu during implementation have been highlighted.
Please go through the details for correctness and inform us of any variance or mis-
interpretation to enable us modify it accordingly.
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Gap Study
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Organisation Hierarchy
Company 1 : Shiva Texyarn Limited. (Level 1)
Division 01 : Shiva Texyarn Limited, Unit I. (Level 2)Division 02 : Shiva Texyarn Limited, Unit II. (Level 2)Division 03 : Shiva Texyarn Limited, Wind Mill Division. (Level 2)Division 04 : Shiva Texyarn Limited, H.O. (Level 2)
Company 2 : Bannari Amman Textiles Limited. (Level 1)
Division 01 : Bannari Amman Textiles Limited, Unit I. (Level 2)Division 02 : Bannari Amman Textiles Limited, Unit II. (Level 2)
Bannari Amman Textiles Limited, Unit II – A Unit. (Level 3)
Bannari Amman Textiles Limited, Unit II – B Unit. (Level 3)Division 03 : Bannari Amman Textiles Limited, Wind Mill Division. (Level 2)Division 04 : Bannari Amman Textiles Limited, H.O. (Level 2)Division 05 : Bannari Amman Textiles Limited, Weaving Division. (Level 2)Division 06 : Bannari Amman Textiles Limited, Technical Textiles. (Level 2)
Note: Weaving and Technical Textiles divisions have not been considered in thecurrent scope.
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1.1 STORES PURCHASE:Mill System Kalsote ERP SystemSupplier master details.( Data migration / export from the existing
software to be done )##
Exhaustive details with latest updated informationon supplier are available.
Option to maintain more than one address forsupplier required with effective date.Supplier addresses effective date validation to bedone while processing.
Supplier-Item / Item-Supplier Database.##
Up-to-date Supplier wise purchased items & itsdetails and item wise supplier details with theirrecent supplied details are readily available on line.
Purchase Indent Purchase Indent to be raised through the systemby the department. The indent follow up will be
done through the system.Indent approval required before raising PurchaseOrder - Mills require 2 Levels of approval. Firstlevel by HOD / FM and second level by GM.
Order approval before Order printing is required.
PO enquiry PO Enquiry would be sent from the system, for theitems in the indent register. Suppliers list will beprompted and the user can select the suppliers towhom the enquiry can be sent.
Quotation entry and comparison beingdone in one format.
Quotation(s) from the multiple suppliers will becompared in the comparative quotation statement(maximum of 5) is available. Apart from comparingthe present quotation, provision is there to comparethe price from previous supplies (price comparisonstatement).
PO types are Cash and Credit purchases. Cash, Credit and Capital purchase options areavailable.Provision to raise PO directly from approved indentskipping enquiry and quotation for regular items.Receipt without PO option is available - To be
Blocked.
PO Amendment / Cancellation PO amendments are allowed through authorizedpersons on selective criteria, like delivery schedule,quantity, rate, specification etc. Items cannot bechanged.PO cancellations are done through authorizedpersons. Provision to close orders that are partlysupplied is available.
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Mill System Kalsote ERP SystemPurchase Budget provision done manually Department wise and Item Group wise budget
provisions are available.
PO Reports Quotation comparison, Budget utilization are someof the specific reports other than the regular reportslike pending PO, PO Register supplier / Item / CostCentre wise, Pending Indent status etc.
PO Reminder Multi options of PO Reminder done automaticallyie. Supplier wise / Aging wise.
Indent Status Automatic updation of indent status after everytransactions, i.e an indent will pass through thestatus of Enquiry / quotation / order / Received / inspected / Stock.
Vendor Rating Vendor rating done more accurately based onrating criteria.
Supplier Assessment (ISO purpose) ISO Requirement of supplier assessment is donethrough the system.
Bill entry done by accounts
Mills to insist with suppliers on receivingthe Bills along with the DC / delivery so asto close the PO then & there.
Bill entry will be done in stores only. As requested,bill approval will be done by accounts.
Materials received as Sample, onverification sometimes accepted by raisingnecessary PO if mills need them.Otherwise rejected sample is sent back.
Sample handling provision without PO is availablein the system.This provision will be modified and mappedaccording to the mills requirement. Requiredmodification to the existing process will be doneduring implementation.
Annexure for PO Printing required withcomparison details.
Will be customised as per mills requirement.
Advance payment Supplier advance payments are linked to FinancialAccounting and it is referred against Bill Payments.
NOTE:## - Templates for respective modules will be sent before commencement of implementation.Mills need to collect necessary data and keep it ready to enable faster user training andimplementation.
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1.2 STORES INVENTORYMill System Kalsote ERP SystemEvery item is identified by its code / name( Data migration / export from the existing
software to be done )##
Following additional features are available in theItem Master:
• Visual Image of the item• Goods Receipt Tolerance for every item – eg.
Packing materials / paper cones / nuts andbolts we can fix some tolerance. If 2% is thetolerance and the ordered qty is 100 Nos. it willaccept up to 102 without the requirement ofapproval.
• Self – Indent. Eg. For less value items, storesindent process need not be followed. The storekeeper himself can give the items withoutapproved indents.
• Auto alert message for indenting when the
stock reaches Re-Order Level.• Category Classification – Capital Items, Repairs
& Maintenance, Spares, Consumables, Civiletc. with linking to Budgets and Accounts.
GRN Preparation Goods Receipt Note (GRN) at Stores will beprepared against the Gate Inward entry only.When party is selected, system will list all pendingPOs against this party. Provision available toprepare single GRN against multiple POs.Provision also available to prepare GRN withoutPO also. However provision available to restrict
this facility.
GRN Inspection intimation is manual Automatic alert message is given to the indenter forinspection, once the material is received and GRNis prepared.
Purchase Rejections Rejected Materials in Inspection would be sentback to supplier through Returnable Gate Pass(RGP) or Non-Returnable Gate Pass (NRGP)prepared automatically by the software along withGate pass slip. The exact time of outward will beentered against the gate pass at the Gate. This
improves operational efficiency.
System has the provision to segregate reason wiserejections. For eg. 25 cones are rejected. Out of25, 10 may be dimension not ok, 5 color not ok, 10cone weight not ok as per sample. Segregation ofrejections will be helpful for effective VendorAnalysis.
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Gap Study
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Mill System Kalsote ERP SystemMaterial Issue request & approval.
Stock updation is based on reactive
approach.
• Pro active approach for Material Issue -Requisition is made on-line by the user.
• Then Requisition approval on-line by HOD /
FM. This can be made optional.• Approved Requisition goes to store-keeper for
Issue of Materials.
• While issuing the material issue to the end-user, Issue slip to be printed and store-keeperto get the signature from the user on the slip.Signed Issue slip is maintained as a record forthe transaction.
Stock Adjustments Receipt Adjustment - in the case of variancebetween book stock and physical stock, excessmaterial received against 0% tolerance, Free
spares / sample items are accounted.
Similarly Issue Adjustment – in the case of variancebetween book stock and physical stock, excessmaterial issued to floor or more consumption thanthe estimated qty.
Inter unit transfers are done manually. By Having a Wide Area Network (WAN), Systemhas the provision for inter unit transfer of itemseither RGP / NRGP method. Re-entry of data atanother unit is avoided.
Bill passing is done manually Bills entry / passing and approval against GRN areautomatic. When the party bill details are entered,if there is any difference between the PO value andthe Bill value, automatic Debit / Credit Notegeneration is possible and FA posting doneautomatically.
Sub store concept Sub-store concept is followed in the system. Itemsissued are transferred to sub-stores likeMaintenance, Electrical and Packing etc. Then onactual consumption, based on maintenance JobCard/ Packed Production, the item is considered as
consumed.
Gate Pass Process ERP provides various types of Gate pass systemlike Returnable / Non-Returnable for Stores itemsas well for Job order items. RGP reminders aregenerated automatically. For eg. A material sentout for service and the same has to come back in15 days. If material not received within 15 daysfrom the date of RGP, system generates reminder.
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Gap Study
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Mill System Kalsote ERP SystemJob Order Maintenance Job order sent outside is tracked by preparing the
Returnable Gate Pass (RGP).
Work Order Concept Worked order concept - for all repair works insidethe mill premises are maintained.
Per spindle consumption is monitoredmanually
System helps to compare with industry norms.
VAT accounting CENVAT and State VAT are handled throughsystem with the required reports.
Freight Accounting Provision to do the Freight accounting along withthe bill and or separately.
Bin Numbering System Provision available in ERP to have specific binnumber for individual items.
Stock ValuationMills are following the weighted averagemethod - agreed to switch over to FIFOMethod.
Stock valuation is done in First In First Out (FIFO)method for better accuracy.
Reports:Analytical reports
Multilevel consumptions reports like item / department / machine / cost center wise.
System provides ABC Analysis (Consumption),
XYZ Analysis (Stock value), FSN movementreports.Various exceptional reports like, Excess stock, Agewise stock, EOQ analysis done effectively.
1.3 RAW MATERIAL INVENTORY - SPINNINGMill System Kalsote ERP System
Mills are currently using 100% Cotton asraw material.
System has the provision to handle any materialslike Cotton, Synthetic & Melange. Both Local andImport purchases of raw material covered.
Contract and Order ConfirmationIndividual lot of 100 bales considered as aseparate Contract.Order Confirmation Report (OCR) isissued for each lot.
Contract / Order Confirmation processing isavailable.
Lot Arrival – Individual bale weighingprocedure is not in practice. Average baleweight on arrival is taken into account.
Sample and Purchase automatically from weighingmachine and prepares bale wise weight report. Ifthe individual bales are not weighed, average
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Mill System Kalsote ERP Systemweight is distributed to all the bales. Materialaccounting based on FOR / Spot Basis.
Lot Approval System provides for sample receipt, testing of lotsamples, quality details of lot arrivals. Afterinspection, system compares sample test valueswith the actual received material, and givesdeviation report. Provision to interface with HVItesting and AFIS machine is available.
Issue to Mixing Mixing wise / Mix Number wise issues areaccounted. Provision to issue bales from multiplelots of same variety also available.
Multiple Godown Stock Maintenance System will maintain multiple godown stock andwhen the stock is moved from one godown toanother. Stock valuation is on landing cost basis.
Weight Difference accounting System generates a report on bale wise weightdifference recorded during receipt and issue.
Waste stock accounting Stock of different wastes produced is handledseparately and sale of different waste is alsoaccounted in the system. Sales details areautomatically transferred to Finance module.
Bill entry and payment is manual Bills entry / passing and approval against Lot
receipt is automatic. When the party bill details areentered, if there is any difference between thecontract value and the Bill value, automatic Debit / Credit Note generation is possible and FA postingdone automatically. Similarly for any allowances / Premium also Debit / credit note are generated.The new value after debit / credit note value isadded to mill lot value for costing purpose.
Reports:Reports are manually prepared.
Other than the regular reports, following importantreports generated through this module are:
♦ Lot wise / variety wise stock♦
Lot Reconciliation♦ Supplier / Broker Assessment♦ Mixing Cost
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2.1 PRODUCTION - SPINNINGMill System Kalsote ERP SystemScope of Spinning Division Scope covers from Blow Room to Packing.
Production Planning: Spin plan and balancing of machines are preparedby the system depending on the product mix / count change.
Mixing identification is with Mix numberand Lot Number.
Unique mix number right from Blow room towinding for quality monitoring.
Transactions:Shift wise machine wise production,stoppage% and waste % are manuallyentered and followed in stand alonesoftware.
All Ring frames are linked with RINGDATA (RIDA).
Software has option of both automatic data transferand manual feeding.
Note – Automatic transfer from RIDA can be done,provided the data are available in ASCII Form.
Waste data maintenance System provides facility to enter the waste detailsdepartment wise, shift wise, type of waste likesalable / usable.
Process stock:Process stock is manually arrived by 1stof every month.
Process stock is arrived at end of every day andcan be physically compared and verified.
Contamination MonitoringContaminations collections & Rejectionsare followed Manually.
To be developed according to Mills Requirement.Mills to provide detailed requirement and freeze therequirement at the earliest.
Reporting:Shift wise production status is reported atthe end of 3 shifts, on the following day.
Shift wise production status is monitored at the endof every shift for better control, in the case ofmanual data entry. If on-line data capture facility ismade available, the software will produce on-lineproduction for effective production monitoring.Shift wise stoppage details and reason wiseanalysis are maintained for analysis.
Standard reporting is made available Exhaustive production reporting is made availablefor analytical purpose. For eg. Make wiseproduction, supervisor performance, workersperformance, Comparison of multiple frames mixwise performance etc.
Yarn conditioning Yarn conditioning details are maintained in thesystem.
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Mill System Kalsote ERP SystemProduction comparison with mill ownstandards and SITRA norms followed.
Provision available to compare actual productionwith Mill Standards and SITRA norms.
Packing Production:Are entered manually and stock reportsare maintained.
Electronic weighing scale interface can also beprovided to monitor actual pack weight and also toarrive at exact kgs of production so that moreaccurate yarn realization can be arrived at.
Quality Control:Study details are gathered and reports areprepared manually.
Quality Checking schedule also prepared
manually.
ERP will provide interfaces with Quality controlequipments which has computer connectivity foronline monitoring of quality data at the userterminals. This would save hard copy printout andreporting to Managerial staff through QualityControl staff.System generated schedule will have a close
monitor on Machines.
Linking with UT5, mills to organize for datadownloading to PC from the UT5 vendor. This isapplicable for all equipments in the testing lab.
Customer Complaints tracking. System will track the Lot number from the Invoicedetails given in the customer complaint. Lottracking is to identify the nature of complaint givenby the customer and verify with the test results.
Limited QC study details / reports are
practiced
Exhaustive study provision and reporting are
available. Studies include the best practicesfollowed across the industry vertical.
QC Reporting:Hard copy printouts and displays
Report views and graphical representation forbetter analysis control. Any Schedule deviationsare also highlighted.
Conformance Status available in ERP based on thepredefined Norms and Tolerances.
Integration with Maintenanceschedules.
Manual interaction with Maintenanceschedules followed.
Automated interaction with Maintenance scheduleis available.
Production Incentive:Employee wise incentives are calculatedmanually.
Production incentive calculated on differentcategories of employees in each department andlinked to payroll software automatically. This giveslot of accuracy and time saving during OTcalculation, weekly payments, incentive paymentsand monthly payroll processing.
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Mill System Kalsote ERP SystemMonthly MIS reports are prepared by thedepartment during 1st week of everymonth.
Production MIS reports is available on date and onthe 1st day of every month without any manual dataadjustment. Production data cannot be altered for
designed results. The software will report 100 %actual information.
Customer complaint and follow up actions. Quality complaints and follow up actions aremonitored on-line and the reports are as per ISOrequirement. Complete ISO requirementmaintained through the software.
QC Study actions:Based on QC study results machinesetting changes are instructed manuallyand carried out.
Software has provision to capture predictivemaintenance activities to be carried out for anydeviations in quality standards. Alert messages onquality deviations are provided immediately to
control the quality.
3.1 MACHINERY MAINTENANCEMill System Kalsote ERP SystemScope All productive machineries in the plant for which
maintenance are done in Preventive, Break Downand Predictive methods - based on worked days / production kgs or fixed time period.
Machinery and Maintenance Details aremaintained in stand alone software
##
System gives detailed predefined maintenanceactivities and its frequency decided by the mills.
Daily Schedule is followed.Frequency based on “number of days”only followed in Mechanical maintenance
Mills to work out the previous throughputdata for those items tonnage option isrecommended – e.g Card Wire.##
System generates machine wise preventivemaintenance schedule with the items required forthe maintenance activity.
Schedule frequency based on production tonnagealso possible for required schedules like card wirechange.
Job Card Maintenance Daily Job Entry and completion are captured In the job completion the items actually consumed will bededucted from the sub-store and taken into account
for consumption reports.
Breakdown calls System allows entering the Break down requestand alert message is given to Maintenancedepartment for necessary action. Once the breakdown completion is entered the items replaced forthe Break Down also captured. This will give theactual Break down consumption value.
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Mill System Kalsote ERP SystemThird party AMC details##
System allows entering all the third party AMCdetails and their service bill details when the call isattended.
Machine history##
System provides complete machine history detailswith all the calls attended and spares replaced.Maintains Preventive / Breakdown / Predictiveactivities list under each machine with the remarkson each job.
Predictive Maintenance System allows for Predictive Maintenance basedon quality study observations.
Reports: • MTBF / MTTR – Mean Time BetweenFailure / Mean Time To Repair.
• Per spindle Maintenance cost• Budget vs Actual are some of the important
reports generated through the system
3.2 ELECTRICAL MAINTENANCEMill System Kalsote ERP System
Scope Scope includes for motors, compressors,Generators and other panels and electronicequipments. The schedules are done based onrunning hours and in days
Preventive Maintenance:##
System generates Equipment wise preventivemaintenance schedule with the items required forthe maintenance activity.
Job Card Entry Daily Job Entry and completion are captured. Inthe job completion the items actually consumed willbe deducted from the sub-store and taken intoaccount for consumption reports.
Breakdown Calls:##
System allows entering the Break down requestand alert message is given to Maintenance
department for necessary action. Once the breakdown completion is entered Machine History detailsare updated.
Third party AMC details:##
System allows entering all the third party AMCdetails and their service bill details when the call isattended.
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Mill System Kalsote ERP SystemMachine history##
System provides detailed equipment history withthe calls attended and spares replaced.
Predictive Maintenance: System allows for Predictive Maintenance basedon quality study observations.
Reports: • MTBF / MTTR – Mean Time BetweenFailure / Mean Time To Repair.
• Per spindle cost• Budget vs Actual are some of the important
reports generated through the system
3.3 POWER Module:
Mill System Kalsote ERP SystemAt present the data from the energymeters were collected manually.
System has the provision for on-line data capturefrom energy meters
Power Consumptions System generated EB bill similar to the original billsubmitted by EB Dept. System also generates EBestimation from the actual units consumed.
Scope of Transactions##
This Power Audit Module will cover the PowerConsumption, Generator Set Reading, H.T.MeterReading, Water Consumption, and Vehicle DieselConsumption.
FA Posting: The above information is automatically transferredto Finance for P&L purpose as provisional entry.
Wind Mill Monitoring of the Wind power data through thesystem to be developed after detailed study of theaccounting procedure of wind power generation.
Reports: Few important reports generated through thismodule are:
♦ Power Consumption
♦ UKG report♦ H.T.Meter Reading♦ Water Consumption♦ Diesel Consumption
♦ EB Bill Estimation
♦ Diesel Stock statement
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4.1 Marketing : Yarn :Mill System Kalsote ERP SystemMarketing Activity:: Software has a separate marketing module for
enquiry handing, Proforma invoice and follow up till
the contract is made. Lot of information can beprovided from this module to the management forstrategic planning.
Scope##
System gives a full flow of marketing activities ofYarn.Enquiries are registeredTechnical feasibility is done.
If sample is required, sample request is generatedand given to production to produce the same as perthe technical specification.
Quotation is sent along with / without samples
Once the quotation is accepted, sales order / contract is generated.
If we receive any customer complaints against thissale, the sample yarn details / technical feasibility isautomatically linked to the customer complaint.
Various Reports are generated like enquirygenerated in a month, Region wise / Broker wise,
Enquiry vs Sales Order ratio etc.
EXIM transactions are carried outmanually.
Exports related transactions and documentationare available separately under Exports sub-moduleof Sales. A view on the same to be provided undermarketing.Import related transactions and documentation tobe developed as per mills requirement.
4.2 SALES - Yarn :Mill System Kalsote ERP System
Sales activities## System provides facility for Yarn, Waste & ScrapInvoicing.
Sales Status Specific customer order, production status is madeavailable online for meeting effective deliveries.
Excise documents System provides all excise related and VAT relatedregisters like RG1, ER-1, MO3 (Hank YarnObligation) reports. The State VAT Returns are
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Mill System Kalsote ERP Systemgenerated as per the new act. This facilitates themill to switch over to State VAT system easily.
The ITC taken into account from various purchasesand tax due by Sales accounts are reconciled.
Accounts Receivable is maintained insales and in accounts. There is aduplication of work.
In the ERP environment accounts receivable ismaintained based on sales and collection details atone location which could be viewed by sales andaccounts department. There is no need formaintaining it in two departments and doing thereconciliation.
Reports Exhaustive reports are made available like pendingcontracts, product ranking, customer ranking, auto
reminders to parties etc.
Formal procedure in handing contractamendment and cancellation is needed.
This facility is handled very effectively through thesoftware.
Stock Valuation is done based on marketrate or last contract / dispatch rate
Finished goods stock could be valued by COGM(Cost of Goods Manufactured) through effectivecosting for accurate P&L.
Movement of stock is monitored manually. Stock aging by bag number wise is arrived at forcontrolling the stock and reporting the stock valueage wise.
Scrap sales Scrap sales also part of sales and Distributionmodule.
Scope includes local and waste sales. Scope includes Local, (Direct / Depot / Consignment and Merchant export), waste andscrap sales.
Data from depot and consignment aregathered manually over a period of time
In ERP Depot and consignment sales can becollected through mail on a daily basis and effectivedispatch and stock details by individual depot andconsignment agents are monitored.
Invoice serial number ERP is having separate serial number for differentcategory of sales, As per mills requirement suitablemodification to be done during implementation.
Reports Pending Contract Registers, Pending LC, Agentwise / count wise / Country wise sales aregenerated through the system.
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Mill System Kalsote ERP SystemStock ageing for bags - Manuallymaintained
Available in the system.
Sales return
Credit notes are raised in accounts only.
Sales return transaction will be carried out in SalesModule and the necessary credit posting will beautomatically done. Credit note to be raised in FAsystem in reference with corresponding salesreturn / credit posting.
Waste sales
Allotment system in waste sales is beingfollowed.
Provision to track by Kilograms, No of bag / borahis available.
Will be customised according to mills requirement.
For export sales – documentation is
prepared manually.
Provision to adjust the value of export onnegotiating the LC on submission ofshipping documents
Following export documentation is done through
ERP software.• Quotation/Proforma Invoice• Contract/Sales Order
• Letter of Credit
• Pre shipment Invoice• Packing List
• Shipping Instructions• Post Shipment Invoice/Packing List• Shipping Details• Insurance Details• Quality Claims
• Debit/Credit NotesAny additional requirements to be developed duringimplementation. Provision for adjustment on LCNegotiation to be made available.
5.1 HUMAN RESOURCE MODULE:Mill System Kalsote ERP SystemBio Data collected and maintainedmanually##
System allows you to enter the Bio-Data anddatabase is maintained. This will facilitate tosearch for experience wise / job post wise, andsend interview letter automatically.
Training details are maintained manually System provides a comprehensive Training modulewhere we can maintain Training Schedule, list ofparticipants, feed back from the participants / Headof Department after the training is attended. Thiswill facilitate whether some more training isrequired for the employee or improve the quality ofthe training etc.
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Mill System Kalsote ERP SystemAwards and Fine systems are manual System maintains the details of awards given to an
employee whether it is single award or groupaward, reason for the award.
Promotions and Increments aremaintained manually.
System maintains the periodical promotions / increments given to the employee so that we canview the entire history of the employee from hisDate of Joining till date.
Family – Dependent details System facilitates to maintain the employee’sdependent details, their relationship and nomineefor PF / Gratuity ESI.
Experience and Educational Qualification System has the provision to update the educationalqualification / other external training attended by
the employee, previous experience detailscompany wise.
5.2 PAYROLL:Mill System Kalsote ERP SystemScope of the Module Scope includes Attendance, over-time, incentive
and complete payroll accounting records for allindividual Divisions.
Staff and worker attendance is maintainedPartially in software.
##
We suggest using any Attendance RecordingSystem which could be linked to our payroll. This
will automate all the attendance activities.
Shift change for all categories System handles any shift rotation – clock wise / anticlock wise – on a particular day or every 7th day.
Leave details System provides complete Leave register withvarious types of Leaves like LWW / LOP / CL / PLetc and generates Form15 leave card yearly.
Payroll System handles various types of worker categoriesfor payroll. System provides a versatile payrollsystem to suite most of the textile mills.
Statutory Reports Statutory reports like Form3A, Form6, 6A, Form15,ESI Form 6, Form 7 are generated through system.
Yearly Benefits Bonus, Gratuity, Scheme Settlement are taken carein the system.
Visitors’ entries are manually maintained. System handles complete movements of Men / Vehicles / Materials and provides various analysis.
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Mill System Kalsote ERP System4 types of Salary statement are beingfollowed
1. Earnings statement2. Net Salary inclusive of all
deductions, OT, Incentive andDeductions statement
3. Incentive statement4. OT Statement
Additional reports will be developed.
The following systems / activities hasbeen identified.
1. Van – Route link for employees2. GM advance
3. Attendance modification forprevious days within a month4. Canteen Token5. Guest House expense6. Medicare
Suitable modifications will be done.
Staff advance at present is not linked toFA and HR department handles the same.
System handles employee wise advance given / re-payment details in Accounts when the payroll isprocessed and authorized.
6.1 FINANCIAL ACCOUNTING:
Mill System Kalsote ERP SystemAccounting is done in a stand alonesoftware.
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ERP has a versatile Accounting package linked toall its modules wherever it is necessary and avoidsmanual entry. Only cash and bank vouchers and
journal entries are to be done. The system is veryproactive in the following areas:• Document generation (Voucher printing /
cheque printing / covering letter) ReceiptPrinting / Dr/ Cr Printing
• Provisional entry• Automatic Closing stock
• Online P&L and Balance Sheet (BS)
• Expenses Analysis – cost center wise• Ratio analysis• Budget monitoring.P&L and BS generated for all Divisions andconsolidated statements generated for thecompany. For unit level, only operational detailscomparison statements can be generated – P&Land BS cannot be generated at the unit level.
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Mill System Kalsote ERP SystemAccounts Receivables AR is comprehensive in the following areas and
automatic from Sales module:
• Customer wise / Invoice Wise / Broker wise
• Payment reminder printing• Over due Interest calculation• Ageing analysis
• Customer ranking
• Confirmation of Balances at the financial yearend.
AR view to be made available to both Sales andFinance departments.
Accounts Payable:
Manually age wise / party wise payable
statement is sent for Director’s approval.Voucher / Payments are prepared as perDirector’s instructions.
Accounts payable has the following features;• Party wise / Bill wise
• Ageing analysis
• TDS / TCS Deduction and Form 16 Printing• Option of accounting account wise and specific
bill wise• Form XVII / C Form Issue and Annexure
printing.• Form 8 / 10 for C Form RegisterParty wise / Age wise payables to be madeavailable on-line for Director’s approval to effectpayment on approval.
Fixed Assets and Depreciation aremanually maintained.
System has the following provision in FAD module:• Asset Register
• Depreciation Method – Company Rate / IT Rate• Asset valuation – SLM / WDV
• Depreciation projection• Profit / Loss on sale of asset
• Queries on asset value.
Financial Control statements Other Salient features are:• FBT• Cash Flow• Funds Flow• Ratio analysis
Bank Reconciliation is done manually System has the provision for automatic BRS withthe soft copy of the statement received frombankers or downloaded directly by mills.
Consignment / depot invoices Updates from depots to be obtained morefrequently (daily basis is suggested and ideal forERP environment) in order to have the Accountingmore accurate. Also all transactions of a month, to
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Mill System Kalsote ERP Systembe completed within the respective month.
Cheques on hand (Pre-signed) are
handled.
Provision to be made available for handling this.
Service Tax being collected and Returnsfilled manually.
Necessary provision for the service tax to be madeavailable for those items considered for service taxby mills.
EPCG Licences, Terminal Excise Duty oncapital goods and Duty Draw Back detailsare tracked manually.
Provision to be made available in the system toupdate relevant details automatically and trackthem effectively.
Quarters Power Bill: Basic units paid bymills and excess units borne by staff.
Provision to be made in Payroll.
Insurance Policies for Employees,Vehicles and Electrical Instruments and itsclaims tracking is done manually.
To be developed as per mills requirement.
Only Main cash book is currently beingpractised.
Multiple cashbooks can be maintained in thesystem.
6.2 COSTING :Mill System Kalsote ERP SystemScope • To have a closer costing figure of count
wise/sort wise per kg. cost• System collects all the required data from
various modules to arrive the costing factors.• Different cost profiles are maintained for all
manufactured counts/sorts.• Various reports for conversion cost on
estimation and actual.• Contribution Report based on Ex-Mill Rate /
Net Rate / Profit per Kg.
Reports and Variance analysis manually System has the provision for automatedcomparison of estimated and actual P&L
statements based on costing estimates. Revisedcosting estimates are arrived and used for nextestimation. So variance gap would be mademinimum/nil over few iteration.
On-line query for Decision making System has the provision for on-line query ofcosting estimates for yarn, comparison ofcontribution statements on-line.
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7.0 MIS MODULE:Mill System Kalsote ERP SystemScope of the Module
MIS Reports
To provide On-line MIS information toManagement.
This module reports are customized as per Millformats in practice. Various MIS reportsspecimen are available and mills to selectreports required for them as per MillManagement’s requirement.
ERP has a versatile MIS Reporting. There is noneed to enter any details manually. All themodules are inter-linked and required details areconsolidated automatically.
Following few reports are generated in the MISModule :
• Daily Management Information Report- a one page summary of mill activities.
• Management Information Details onProduction – complete production, efficiency,utilization abstracts.
• Department wise Performance Details
• Finished Goods Stock(Yarn & Cloth) Abstract
• Raw Material Stock for Spg. & Wvg.
• Attendance abstract:: Shift / Day wise
• Financial Status Report
• Over all Mill Performance