A

Research Project Report

ON
“ROLE OF ERP IN SMALL BUSINESS
ENTERPRISE”
SUBMITTED IN THE PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE OF

“MASTER OF BUSINESS ADMINISTRATION”

From

Dr. A.P.J. Abdul Kalam Technical University ,

Lucknow

(2017-2019)

Submitted to: Submitted By:

Prof. Shweta Batra Harpreet Kaur
HOD Management Deptt. MBA: IV sem
ROLL NO: 1712970046

Forte Institute of Technology,

Green Park Mawana Road, Meerut.

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DECLARATION

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 Declaration

I Here By declare that this Project report entitled ―Role of ERP in Small Business

Enterprise) has been completed based on actual study carried out by us. I am

presenting & authentic report of our work carried out under guidance of Ms.

Richa Chauhan (Asst. Professor) FIT, Meerut which is require in the partial

fulfillment of M.B.A. affiliated to AKTU, Lucknow.

This research report is original & the information, data & and facts Furnished their
in actual, based on study carried out by us.

Harpreet Kaur
Date:
Place:

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 Acknowledgement

When a person is help, guide and co-operated his or heart is bound to pay gratitude. Ms.
Richa Chauhan (Asst. Professor) FIT, Meerut, It is not a single mans effort which is
sufficient for the accomplishment of a research. Various factors, situations and persons
integrate to provide the background for accomplishment of a task requires the efforts of
so many people and the work is no different.
I acknowledge here the names of those people who have been instrumental in preparation
of this project.
I grateful thanks to all faculty, FIT, Meerut for her valuable suggestion and inspiration
to undergo this study and his help which he gave for the completion of this project.

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 PREFACE

Today‘s market scenario is totally different from what it has been a few years ago.
Consumers have a lot of choice for every product because day by day companies are
coming up with their new and innovative products. Later there was limited choice for
most of the products and companies didn‘t have to put much of the efforts to sell their
products. But today‘s scenario is totally different. Consumers have choice because of
availability of varieties and options. Which is possible due Enterprise Resource planning.
We can say today‘s consumer is the market ruler. So it is important to know his buying
behavior and try to fulfill his demand. Company‘s aim should be customers delight not
customer‘s satisfaction.

The purpose of this research project is know how ERP help for developing new and
innovative products .The purpose of ERP existence and how ERP help to management to
utilize our over all resources. The second purpose of research what are the various impact
of ERP in Indian business.
This Research was really good learning experience for me. I got opportunity to apply the
theoretical knowledge to practical aspects of ERP. What problems can arise and the way
to tackle the difficulty during the implementation of ERP.

This report contains what are the various challenges, of implementing of ERP. Its also
containc what are the various opportunities of ERP which is help full to utilize all
resources such as finance ,marketing management etc.

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 Table of Contents

Contents Page no

1. Introduction of project 10
2. Objective of the project 20
3. Over the ERP 22
4. Scope of ERP 36
5. Research Methodology 68
6. Analysis of data collection 73
7. Findings 78
8. Conclusion 82
9. Recommendation 85
10. Limitations 88
11. Bibliography 94
12. Annexure 91

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INTRODUCTION OF THE PROJECT

7
 INTRODUCTION:-

Enterprise Resource Planning systems (ERPs) integrate (or attempt to integrate) all
data and processes of an organization into a unified system. A typical ERP system will
use multiple components of computer software and hardware to achieve the integration.
A key ingredient of most ERP systems is the use of a unified database to store data for
the various system modules.

Financ
Marketing

ERP

HR Productio

Origin of the term

The term ERP originally implied systems designed to plan the use of enterprise-wide
resources. Although the acronym ERP originated in the manufacturing environment,
today's use of the term ERP systems has much broader scope. ERP systems typically
attempt to cover all basic functions of an organization, regardless of the organization's
business or charter. Business, non-profit organizations, non governmental organizations,
governments, and other large entities utilize ERP systems.

Additionally, it may be noted that to be considered an ERP system, a software package

generally would only need to provide functionality in a single package that would
normally be covered by two or more systems. Technically, a software package that
provides both payroll and accounting functions would be considered an ERP software
package.

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However, the term is typically reserved for larger, more broadly based applications. The
introduction of an ERP system to replace two or more independent applications
eliminates the need for external interfaces previously required between systems, and
provides additional benefits that range from standardization and lower maintenance (one
system instead of two or more) to easier and/or greater reporting capabilities (as all data
is typically kept in one database).

Examples of modules in an ERP which formerly would have been stand-alone

applications include: Manufacturing, Supply Chain, Financials, Customer Relationship
Management (CRM), Human Resources, and Warehouse Management.

Overview

Some organizations - typically those with sufficient in-house IT skills to integrate

multiple software products - choose to only implement portions of an ERP system and
develop an external interface to other ERP or stand-alone systems for their other
application needs. For instance, the PeopleSoft HRMS and Financials systems may be
perceived to be better than SAP's HRMS solution. And likewise, some may perceive
SAP's manufacturing and CRM systems as better than PeopleSoft's equivalents. In this
case these organizations may justify the purchase of an ERP system, but choose to
purchase the PeopleSoft HRMS and Financials modules from Oracle, and their remaining
applications from SAP.

This is very common in the retail sectorwhere even a mid-sized retailer will have a
discrete Point-of-Sale (POS) product and financials application, then a series of
specialised applications to handle business requirements such as warehouse management,
staff rostering, merchandising and logistics.

Ideally, ERP delivers a single database that contains all data for the software modules,
which would include:

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Manufacturing

Engineering, Bills of Material, Scheduling, Capacity, Workflow Management,

Quality Control, Cost Management, Manufacturing Process, Manufacturing
Projects, Manufacturing Flow

Supply Chain Management

Inventory, Order Entry, Purchasing, Product Configurator, Supply Chain

Planning, Supplier Scheduling, Inspection of goods, Claim Processing,
Commission Calculation

Financials

General Ledger, Cash Management, Accounts Payable, Accounts Receivable,

Fixed Assets

Projects

Costing, Billing, Time and Expense, Activity Management

Human Resources

Human Resources, Payroll, Training, Time & Attendance, Benefits

Customer Resources and Marketing

Sales and Marketing, Commissions, Service, Customer Contact and Call Center
support

Data Warehouse

Enterprise Resource Planning is a term originally derived from manufacturing resource

planning (MRP II) that followed material requirements planning (MRP). MRP evolved

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into ERP when "routings" became major part of the software architecture and a
company's capacity planning activity also became a part of the standard software activity.
ERP systems typically handle the manufacturing, logistics, distribution, inventory,
shipping, invoicing, and accounting for a company. Enterprise Resource Planning or ERP
software can aid in the control of many business activities, like sales, marketing, delivery,
billing, production, inventory management, quality management, and human resource
management.
ERPs are often incorrectly called back office systems indicating that customers and the
general public are not directly involved. This is contrasted with front office systems like
customer relationship management (CRM) systems that deal directly with the customers,
or the eBusiness systems such as eCommerce, eGovernment, eTelecom, and eFinance, or
supplier relationship management (SRM) systems.
ERPs are cross-functional and enterprise wide. All functional departments that are
involved in operations or production are integrated in one system. In addition to
manufacturing, warehousing, logistics, and Information Technology, this would include
accounting, human resources, marketing, and strategic management.
ERP II means open ERP architecture of components. The older, monolithic ERP systems
became component oriented.
EAS - Enterprise Application Suite is a new name for formerly developed ERP systems
which include (almost) all segments of business, using ordinary Internet browsers as thin
clients.

Before ERP implementation

Prior to the concept of ERP systems, departments within an organization (for example,
the Human Resources (HR) department, the Payroll (PR) department, and the Financials
department) would have their own computer systems. The HR computer system (Often
called HRMS or HRIS) would typically contain information on the department, reporting
structure, and personal details of employees. The PR department would typically
calculate and store paycheck information. The Financials department would typically
store financial transactions for the organization. Each system would have to rely on a set
of common data to communicate with each other. For the HRIS to send salary

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information to the PR system, an employee number would need to be assigned and
remain static between the two systems to accurately identify an employee. The Financials
system was not interested in the employee level data, but only the payouts made by the
PR systems, such as the Tax payments to various authorities, payments for employee
benefits to providers, and so on. This provided complications. For instance, a person
could not be paid in the Payroll system without an employee No.

After ERP implemetation

ERP software, among other things, combined the data of formerly disparate applications.
This made the worry of keeping numbers in synchronization across multiple systems
disappear. It standardised and reduced the number of software specialities required within
larger organizations.

Best Practices

Best Practices were also a benefit of implementing an ERP system. When implementing
an ERP system, organizations essentially had to choose between customizing the
software or modifying their business processes to the "Best Practice" functionality
delivered in the vanilla version of the software.
Typically, the delivery of best practice applies more usefully to large organizations and
especially where there is a compliance requirement such as IFRS, Sarbanes-Oxley or
Basel II, or where the process is a commodity such as electronic funds transfer. This is
because the procedure of capturing and reporting legislative or commodity content can be
readily codified within the ERP software, and then replicated with confidence across
multiple businesses who have the same business requirement.
Where such a compliance or commodity requirement does not underpin the business
process, it can be argued that determining and applying a best practice actually erodes
competitive advantage by homogenizing the business compared to everyone else in their
industry sector.
Evidence for this can be seen within EDI, where the concept of best practice, even with
decades of effort remains elusive. A large retailer, for example, wants EDI plus some
minor tweak that they perceive puts them ahead of their competition. Mid-market

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companies adopting ERP often take the vanilla version and spend half as much as the
license cost doing customisations that deliver their competitive edge. In this way they
actively work against best practice because they perceive that the way they operate is best
practice, irrespective of what anyone else is doing.

IMPLEMENTATION

Because of their wide scope of application within a business, ERP software systems are
typically complex and usually impose significant changes on staff work practices.
Implementing ERP software is typically not an "in-house" skill, so even smaller projects
are more cost effective if specialist ERP implementation consultants are employed. The
length of time to implement an ERP system depends on the size of the business, the scope
of the change and willingness of the customer to take ownership for the project. A small
project (e.g., a company of less than 100 staff) may be planned and delivered within 3
months; however, a large, multi-site or multi-country implementation may take years.
The most important aspect of any ERP implementation is that the company who has
purchased the ERP product takes ownership of the project.
To implement ERP systems, companies often seek the help of an ERP vendor or of third-
party consulting companies. These firms typically provide three areas of professional
services: Consulting, Customization and Support.

Consulting Services

The Consulting team is typically responsible for your initial ERP implementation and
subsequent delivery of work to tailor the system beyond "go live". Typically such
tailoring includes additional product training; creation of process triggers and workflow;
specialist advice to improve how the ERP is used in the business; system optimisation;
and assistance writing reports, complex data extracts or implementing Business
Intelligence.
The consulting team are also responsible for planning and jointly testing the
implementation. This is a critical part of the project, and one that is often overlooked.

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Consulting for a large ERP project involves three levels: systems architecture, business
process consulting (primarily re-engineering) and technical consulting (primarily
programming and tool configuration activity). A systems architect designs the overall
dataflow for the enterprise including the future dataflow plan. A business consultant
studies an organization's current business processes and matches them to the
corresponding processes in the ERP system, thus 'configuring' the ERP system to the
organization's needs. Technical consulting often involves programming. Most ERP
vendors allow modification of their software to suit the business needs of their customer.
For most mid-sized companies, the cost of the implementation will range from around the
list price of the ERP user licenses to up to twice this amount (depending on the level of
customization required). Large companies, and especially those with multiple sites or
countries, will often spend considerably more on the implementation than the cost of the
user licenses -- three to five times as more is not uncommon for a multi-site
implementation.

Customization Services

Customization is the process of extending or changing how the system works by writing
new user interfaces and underlying application code. Such customisations typically
reflect local work practices that are not currently in the core routines of the ERP system
software.
Examples of such code include early adopter features (e.g., mobility interfaces were
uncommon a few years ago and were typically customised) or interfacing to third party
applications (this is 'bread and butter' customization for larger implementations as there
are typically dozens of ancillary systems that the core ERP software has to interact with).
The Professional Services team is also involved during ERP upgrades to ensure that
customisations are compatible with the new release. In some cases the functionality
delivered via a previous customization may have been subsequently incorporated into the
core routines of the ERP software, allowing customers to revert back to standard product
and retire the customization completely.
Customizing an ERP package can be very expensive and complicated, because many
ERP packages are not designed to support customization, so most businesses implement

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the best practices embedded in the acquired ERP system. Some ERP packages are very
generic in their reports and inquiries, such that customization is expected in every
implementation. It is important to recognize that for these packages it often makes sense
to buy third party plug-ins that interface well with your ERP software rather than
reinventing the wheel.
Customization work is usually undertaken as bespoke software development on a time
and materials basis. Because of the specialist nature of the customization and the 'one off'
aspect of the work, it is common to pay in the order of $200 per hour for this work. Also,
in many cases the work delivered as customization is not covered by the ERP vendors
Maintenance Agreement, so while there is typically a 90-day warranty against software
faults in the custom code, there is no obligation on the ERP vendor to warrant that the
code works with the next upgrade or point release of the core product.
One often neglected aspect of customization is the associated documentation. While it
can seem like a considerable -- and expensive -- overhead to the customization project, it
is critical that someone is responsible for the creation and user testing of the
documentation. Without the description on how to use the customisation, the effort is
largely wasted as it becomes difficult to train new staff in the work practice that the
customization delivers.

Maintenance and Support Services

Once your system has been implemented, the consulting company will typically enter
into a Support Agreement to assist your staff keep the ERP software running in an
optimal way. A Maintenance Agreement typically provides you rights to all current
version patches, and both minor and major releases, and will most likely allow your staff
to raise support calls. While there is no standard cost for this type of agreement, they are
typically between 15% and 20% of the list price of the ERP user licenses.

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 OBJECTIVE
OF THE TOPIC

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 OBJECTIVE OF RESEARCH

I have undertaken the project “Challenges, Opportunities and impact on Indian

business” in order to study the followings:

1. How ERP makes, an organization, competitive to face the challenges from National
companies as well as Multinational Companies? At present competitive arena, it is
essential to all companies MNCs as well as domestic companies to manufacture the
innovative and high quality product at lowest cost, to be competitive in the market.

2. To find out, how ERP integrate all the functions Manufacturing, Supply Chain,
Financials, Customer Relationship Management (CRM), Human Resources, and
Warehouse Management of an Organization to keep the cost lower.

3. What kind of positive changes comes after re-engineering the process?

4. What types of Challenges face for implementing ERP

5. And what type of negative as per as positive effect of ERP in Indian Business.

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Overview of ERP

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In for ERP (Enterprise Resource Planning)(Opportunity)

 Gain better visibility of transactions across the enterprise

 Make better business decisions
 Deliver the right product at the right time
 Keep customer promises
 Adopt manufacturing best practices, including lean

Infor's ERP solutions meet the diverse needs of today's manufacturers with robust
Functionality for two broad categories of manufacturing:

Production environments characterized by individual, separate unit manufacture of

highly complex products-

Infor's ERP software systems offer a high degree of flexibility for order-driven
manufacturing where unit volumes are typically low and lead times variable. We extend
the traditional ERP footprint with unrivaled support for a multitude of cross-business and
manufacturing operations, integrated business process modeling, change and compliance
management, and aftermarket service support. Based on 25+ years of manufacturing
excellence.

Process manufacturing production environments where ingredients are blended to

formulate a whole- Infor ERP solutions provide total control for high-volume, repetitive
manufacturing environments like these. We offer industry-specific functionality,
advanced workflow technology, and flexible business process support with strong lot
traceability, validation, regulatory compliance, and customer service capabilities.
Industry expertise acquired through long-term partnerships with leading global process
manufacturers is embedded. Service- Power and control for customer-centric service and
maintenance. Lean - Enabling lean processes across your enterprise and value chain.
Quality - Improved quality for increased productivity.Financials - Single, integrated
modern finance solution for manufacturers. Manufacturing - Flexibility and control for
manufacturers of highly complex products. Process Manufacturing - Proven value

19
optimization capabilities for the process industry.Wholesale and Distribution - Control
and responsiveness for extended supply chains.

ERP (Enterprise Resource Planning) > Lean Manufacturing

Enabling lean processes across your enterprise and value chain. Adopting a holistic lean
philosophy across the entire enterprise is a path rather than a estination. It requires
continual monitoring and cremental improvements to the productivity of the rocess, the
quality of the product, and the overall satisfaction of the customer. The concept of lean
goes beyond the factory floor and encompasses the processes of suppliers, customers,
logistics providers, and other partners.For manufacturers looking to balance inventory
levels and global supply chains with improved performance, quality, and customer
satisfaction, Infor's flexible, scalable lea manufacturing solution helps enable lean
processes throughout the entire enterprise-including the internal and external value chain
and the front and back office. Rely on usfor deep lean manufacturing expertise-from
implementation to support, professional services, and training.

Infor's lean manufacturing capabilities help companies like yours:

 Improve on-time delivery performance

 Shorten lead time and speed order turnaround
 Improve quality and reduce defects for fewer returns
 Reduce operational costs and provide better pricing to customers
 Increase capacity to accommodate higher customer order volumes
 Improve profitability and grow capital to invest in new strategic initiatives
 Become more agile and flexible

Infor has helped thousands of manufacturers successfully make the transition to lean
by combining best-in-class business application solutions, leading edge technology, and
lean business practice expertise with industry experienced professionals. As a proven lean
solution provider, Infor not only understands the value that a supply chain-wide lean
initiative can bring to an organization, but also the challenges of making that transition a
reality. By building greater trust and improved communication between internal and

20
external participants, the organization as a whole can take the first step to improving
quality, increasing efficiency, decreasing operational costs, and boosting profitability. As
a result, there will be an opportunity for increased customer satisfaction, improved

employee morale and retention, and a newly found ability for increased capacity to grow
the business

Centers for Disease EPA National

Federal Bureau Control and Prevention
Response Center
of Investigation

Local Health Local Law Neighboring

Media Department Enforcement Utilities
Local First Water Local Civil
Responders Utility Government EPA Regional
Offices
State Law Local Emergency
Enforcement Planning Committees
State Emergency
Responders

State Drinking Water Public Health and State

Primacy Agencies Environmental
Government
Laboratories

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Infor ERP (Enterprise Resource Planning) > Quality Management

Improved quality for increased productivity.

In today's global market, quality is king as manufacturers face increased competition for
customers. The pressure to reduce time and error makes it imperative that companies
establish and maintain quality assurance criteria that fully support industry regulations.
To remain competitive, manufacturers need to optimize their engineering and product
lifecycles-and leverage supply chains-to bring superior products to market on time and on
budget. For order-driven manufacturers looking to balance productivity, quality
assurance, customer satisfaction, and profitability, Infor delivers a solution for fully
integrated, robust, scalable automated quality management designed to fit their specific
industry requirements. Our solution integrates all logistic and quality management
processes, enabling manufacturers to improve operational performance and leverage their
supply chains to attain superior quality-and exceed customer expectations.

Infor ERP's quality management solutions help companies like yours:

 Manage quality across multiple plants and distributed teams

 Improve decision-making with real-time, accurate engineering and product data
 Monitor supplier performance against industry benchmarks
 Increase customer satisfaction with shorter response times
 Establish and manage criteria to support industry standards and regulations
 Improve collaboration between employees, suppliers, and customers
 Reduce the cost of goods sold

Ideal for makers of complex products, the quality management components of Infor
ERP help companies improve quality levels and take corrective action when necessary.
They allow you to streamline business processes by automating associated concept,
design, pre-production, production, and post-production activities, and by facilitating the
ollection,analysis, and control of key data. You'll get support for cost-effective decision-
making with pre-production process analyses, including performance andcapability

22
indices. You'll also improve response times; increase customer satisfaction by
maintaining accessible, detailed customer histories; and monitor and manage
communications with customers and suppliers to improve all supply chain relationships.
And through better process management, you'll prevent and reduce ailurencreasing your
profit margins.

ERP (Enterprise Resource Planning) > Financials

Single, integrated modern finance solution for manufacturers.

Manufacturing organizations must standardize on a single, integrated modern financial

ERP solution in order to compete globally. Whether they operate a single site or
multiplesites, it's the only way they can accommodate single-country and multi-country
accounting practices, taxation systems, and compliance demands and differentiate
themselves from the competition.For manufacturers, Infor delivers a robust, multi-
platform, multi-language enterprise resource planning systems that fully integrates
financial management with operations

management, providing support for detailed product, manufacturing, and project costing
methods; national and supra-national statutory bookkeeping and GAAP regulations; and
various payment/collection methods and taxes that conform to local and national business
practices. Flexible, sophisticated security and internal controls that help
organizationsmeet critical new compliance regulations such as Sarbanes-Oxley and IFRS
are also part of the package.

Infor's ERP financial solutions help companies like yours:

 Support local statutory bookkeeping in over 30 countries from one system

 Reduce the cost of financial transaction support via optimized, streamlined financial
processes and role-based workbenches
 Meet critical compliance regulations with sophisticated audit trails that drill down to
report on base operational transactions
 Support integration of transactions from multiple financial and logistics sites
 Generate sales invoices from disparate sources
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 Manage multi-source valuations in different asset books

Infor has over 20 years of experience providing ERP and financial solutions to global
manufacturing companies including Boeing, Tyco, and Carrier.Infor enterprise resource
planning systems incorporate financials that boost your competitive advantage by
streamlining financial processes and reducing costs, increasing accuracy of financial data,
providing better oversight of expenses and cash flow,improving credit and collections
management, and enabling tighter control over project and cost accounting. By
addressing the full range of multinational requirements-including fiscal and local
compliance issues and integration with other domains in your ERP system-and helping
you improve performance management, you get all the critical components you need to
manage complexity and extend your global reach.

ERP (Enterprise Resource Planning) > Manufacturing

Flexibility and control for manufacturers of highly complex products.

Global competition and pricing pressures place an extraordinary demand on today's

manufacturers to strive for new levels of efficiency, innovation, and competitiveness
.Having the manufacturing control to respond appropriately to a volatile market, along
with the operational agility to anticipate what will be demanded in six months or a year,
can mean the difference between struggling to survive-or setting the pace. For order-
driven manufacturers looking to balance customer satisfaction, operational efficiency,
and profitability, Infor delivers the critical ERP tools required to thrive in alean world.
These include sales planning, quotation and order processing, configuration and variant
management, production planning and control, sub-contract management, inventory and
purchasing management, environmental regulatory compliance tools, and costing and
value flow management. You'll streamline end-to-end processes by creating reliable
projections and integrating this information into your operations and those of your
suppliers.

Infor ERP's manufacturing solutions help companies like yours:

24
  Streamline logistics operations to minimize warehouse costs
 Optimize planning to deliver the right products on time and on budget
 Improve performance by capturing and sharing rich, strategic data
 Capture real-time shop floor data to adapt processes and reduce costs
 Accelerate critical information between you and your suppliers

Ideal for makers of highly complex products, the manufacturing components of

InforERP enable you to improve visibility and be more proactive. You can automate
theplanning process across your business to create consistent production plans and
deliverthe right product on time and on budget. Execution management capabilities
enable youto integrate shop floor information by capturing real-time manufacturing data
so you canadapt your processes and reduce costs. You can also extend the traditional
ERP footprint beyond the production environment to the entire supply chain by
accelerating the flow of detailed production and procurement information between you
and your suppliers. Information ERP (Enterprise Resource Planning) > Process
ManufacturingProven value optimization capabilities for the process industry.Regulatory
compliance, quality management, and cost control are among the chiefconcerns of today's
process manufacturers-not to mention changing consumer demographics and
consumption patterns, globalization and its impact on competition, theincreasing power
of mega retailers, and a host of other challenges.For chemical, food and beverage,
pharmaceutical, and other process manufacturerslooking to manage this balancing act,
Infor delivers a set of proven value optimizationcapabilities that can increase revenue,
boost profits, improve quality, and ensure compliance. Based on a configurable
infrastructure and backed by domain experts who understand the process industry, our
solutions allow you to react to changing conditions

with the best sourcing options and most profitable product mix.

Infor ERP's process manufacturing solutions help companies like yours:

 Reduce time to market and scale

 Decrease costs through management of process variability
 Improve product traceability and decrease risk of recall

25
 Effectively manage multi-faceted delivery channels
 Increase efficiency by eliminating all manual processes
 Minimize the total cost of quality and cost to serve
 Improve promotional management and meet compliance requirements

Ideal for global process manufacturers, Infor's integrated ERP solutions make it easy
todetect demand changes, reforecast, rebalance inventory, allocate and optimize product

schedules, procure, produce, and ship inventory. Industry experience is built in including
unique volume and tank-based scheduling, inventory planning with variable recipe
optimization to produce consistent quality at the lowest cost, and compliance integrated
into all processes. The ability to track attributes and actual lot costs with specification
matching and corrective and preventive action (CAPA) is also included,
furtherminimizing the cost of quality and compliance.A software provider as enterprising
as you are. Infor delivers business-specific software that helps enterprising organizations
of all sizes adapt to rapid change. With experience built in, our solutions are helping
more than 70,000 companies meet their goals in a global marketplace. So go ahead. Be as
innovative as you want to be. As ready to seize new opportunities. Infor is right beside
you. Changing what you expect from a business software company.

26
Infor ERP (Enterprise Resource Planning) > Wholesale and Distribution

Control and responsiveness for extended supply chains. Distributors must continually
seek new sources of revenue to reinforce and grow their value. Maintaining profitability
in an increasingly global market requires the agility torespond quickly to new
opportunities and the operational control to keep the extended supply chain focused on
the bottom line. For distribution and wholesale organizations looking to balance
customer demand, complementary product lines, and profitability, Infor ERP's wholesale
and distribution solutions enable fully integrated, robust, scalable operations for
maintaining a competitive edge within a dynamic extended environment. Our domain
expertise combined with industry-leading technologies-for demand planning,
transportation management, supply chain design, and other critical capabilities-empower
distributioncompanies to master industry-specific issues critical to business performance.

Infor ERP's wholesale and distribution solutions help companies like yours:

 Expand into new customer segments

 Achieve and maintain higher service levels
 Lower costs of goods sold for higher operational margins
 Minimize inventories and reduce redundancies
 Increase collaboration with customers and suppliers
 Increase responsiveness and speed to market

Ideal for distribution and wholesale organizations looking to manage extended

supplychains, Infor ERP's wholesale and distribution solutions provide broad coverage of
thefollowing core business processes: plan, source, buy, make/assemble, ship, sell,
andservice. You'll develop corporate financial and merchandise plans based on
anticipateddemand for goods or anticipated account sales volume, make optimal
sourcing/supplierdecisions, streamline purchasing and contract management, add value
with kitting andassembly, optimize shipping decisions and execution, and improve sales
and servicefunctions. Whether you're a large distribution company operating within
multipledivisions and geographies or a smaller, growing distributor looking to gain a
competitiveedge, Infor offers deep domain expertise and a 20-year track record of serving

27
yourindustry.

Opportunities of ERP:

Integration
Integration can be the highest benefit of them all. The only real project aim for
implementing ERP is reducing data redundancy and redundant data entry. If this is set as
a goal, to automate inventory posting to G/L, then it might be a successful project. Those
companies where integration is not so important or even dangerous tend to have a hard
time with ERP. ERP does not improve the individual efficiency of users, so if they expect
it, it will be a big disappointment. ERP improves the cooperation of users.
Efficiency
Generally, ERP software focuses on integration and tends to not care about the daily
needs of people. I think individual efficiency can suffer by implementing ERP. The big
question with ERP is whether the benefit of integration and cooperation can make up for
the loss in personal efficiency or not.
Cost reduction
It reduces cost only if the company took accounting and reporting seriously even before
implementation and had put a lot of manual effort in it. If they didn't care about it, if they
just did some simple accounting to fill mandatory statements and if internal reporting did
not exists of has not been financially oriented, then no cost is reduced.
Less personnel
Same as above. Less reporting or accounting personnel, but more sales assistants etc.
Accuracy
No. People are accurate, not software. What ERP does is makes the lives of inaccurate
people or organization a complete hell and maybe forces them to be accurate (which
means hiring more people or distributing work better), or it falls.

Some other advantages achieved by world’s major companies:

The benefits accruing to any business enterprise on account of implementing are
unlimited. According to the companies like NIKE, DHL, Tektronix, Fujitsu, Millipore,

28
Sun Microsystems, following are some of the benefits they achieved by implementing
ERP packages:

 Gives Accounts Payable personnel increased control of invoicing and payment

processing and thereby boosting their productivity and eliminating their reliance
on computer personnel for these operations.
 Reduce paper documents by providing on-line formats for quickly entering and
retrieving information.
 Improves timeliness of information by permitting, posting daily instead of
monthly.
 Greater accuracy of information with detailed content, better presentation, fully
satisfactory for the Auditors.
 Improved Cost Control
 Faster response and follow up on customers
 More efficient cash collection, say, material reduction in delay in payments by
customers.
 Better monitoring and quicker resolution of queries.
 Enables quick response to change in business operations and market conditions.
 Helps to achieve competitive advantage by improving its business process.
 Improves supply-demand linkage with remote locations and branches in different
countries.
 Provides a unified customer database usable by all applications.
 Improves International operations by supporting a variety of tax structures,
invoicing schemes, multiple currencies, multiple period accounting and
languages.
 Improves information access and management throughout the enterprise.
 Provides solution for problems like Y2K and Single Monitory Unit (SMU) or
Euro Currency

29
Challenges of ERP:

Expensive
This entails software, hardware, implementation, consultants, training, etc. Or you can
hire a programmer or two as an employee and only buy business consulting from an
outside source, do all customization and end-user training inside. That can be cost-
effective.
Not very flexible
It depends. SAP can be configured to almost anything. In Navision one can develop
almost anything in days. Other software may not be flexible
Security threats: :
The biggest risk is the insider threat--people
who have access to the system who are using it in the wrong way or with the wrong
authorizations, and there is not enough control installed within the company. You need
to find the right balance between how much trust you put into people in your
organization and how many controls you employThe other threat comes from people
connecting their ERP systems tothe Internet, either to extend the supply chain support of
the system or to expose specific functionalities in order to make life easier for the
employees. The problem with this is that the classical, well understood Internet threats
are often not understood by the ERP people. The people who are responsible for ERP
understand the insider threat because they have dealt with it for years, but when there is a
demand from the business to extend systems to the Internet, they don‘t think about threats
like cross-site-scripting. Viruses or worms using the ERP platform may come into play,
and they don‘t sufficiently understand the importance of security patches. This is a huge
challenge to the organization. It needs to bring together people who understand ERP
security, and people who understand Internet, e-mail and Web services security.

30
 Security Witness
Breach Account

Public Health Notification by

Notification Perpetrator

THREAT
WARNING

Consumer Notification by
Complaint Law Enforcement

Unusual Water Notification by

Quality News Media

Figure III-2. Summary of Potential Threat Warnings

 Notification by Perpetrator. A threat may be made directly to you, either

 verbally or in writing. Historical incidents indicate that verbal threats made over the
phone are more common than written threats.

 Notification by Law Enforcement. You may receive notification about a threat

directly from law enforcement, whether it is county, local, State, or Federal. Such a
threat could be a result of a report of suspicious activity or through information
gathered by law enforcement.

 Notification by News Media. A threat might be delivered to the news media, or the
media may discover a threat. A conscientious reporter would immediately report such
a threat to the law enforcement and either the reporter or law enforcement would
immediately contact the CWS.
 Unusual Water Quality. You should investigate possible causes of unusual water
quality (i.e., changes from baseline). You want to rule out unusual results that can be
explained or those that are due to known causes.
 Consumer Complaint. An unexplained or unusually high incidence of consumer
complaints about the aesthetic qualities of drinking water may indicate a potential
threat. Many chemicals can impart a strong odor or taste to water, and some may
discolor the water.

31
 Public Health Notification. The first indication that a water-related incident has
occurred may involve victims showing up in local emergency rooms and health
clinics. An incident triggered by a public health notification is unique in that at least
a segment of the population has been exposed to a harmful substance.

Appendix C: Example Action Plans

Water System Contamination*

Threat Warning Stage

Special actions and notifications to be taken:
 Notify ER Lead or Alternate ER Lead
Threat Warning  Record and document all information pertaining to the threat
Received warning
 Do not disturb site if the threat warning could be a possible crime
scene
 Return to normal operations if no further action is required (i.e., the
threat warning can be explained)
 Begin the ―Threat Decision Process‖ if the threat warning cannot be
explained

Threat Decision Process Stage

32
 Special actions and notifications to be taken:
 Notify local law enforcement
 Notify State Drinking Water Primacy Agency
 Evaluate threat warning and make decisions in consultation with
Is the Threat Possible?
State Drinking Water Primacy Agency and local law enforcement
(Stage 1)
 Initiate basic precautionary measures:
1. Alert staff and personnel about threat warning
2. Prepare additional notification lists if the situation
escalates to the ―Is the Threat Credible?‖ stage

If the threat is not possible, then return to normal operations. Otherwise, proceed to ―Is
the Threat Credible‖ stage.

Special actions and notifications to be taken:

 Activate notification and personnel safety portions of ERP
 Evaluate whether the threat is credible in consultation with assisting
agencies
Is the Threat Credible?
 Visually inspect physical evidence and determine whether there is a
(Stage 2)
change in normal system operating parameters (i.e., chlorine
residuals, turbidity, odor, color, pH, etc.)
 Conduct actions and testing as recommended by monitoring and
sampling experts

If the threat is not credible, then return to normal operations. Otherwise, proceed to ―Has
theThreat been confirmed‖ stage.

33
 SCOPE OF STUDY

Scope of Study: There are many computer programs designed to convert data into
information, usually for a specific purpose or function. Shop floor workers need one level
of information, in real-time, about the process or production; executives need a different
view of that data for long-range planning and short-term deployment. Same data,
different information.In many situations, data are available but uncollected. This could
require manual entry,bar code scanning or sensor monitoring to correct. In other cases,
the data are collected but stored awaiting a request. Data mining and data warehousing
applications involve thisaspect of information development. Databases are becoming
larger and larger as companies find more and more data to store. But all those bytes are
still just data.Answering that call, software developers have looked for ways to bring
many divergent requirements under a single, if huge, umbrella program called enterprise
resource planning or ERP. What ERP strives to do is combine the needed functions of
every application a company requires to do its job and integrate them all together."ERP
allows organizations to balance customer demands impacted by multiple interrelated
items and multiple plant locations," explains Chip Robie, practice general manager,
manufacturing, with Tompkins Associates (Raleigh, N.C.). "ERP adds applications for
financials, supply chain, and distribution and requirements planning for multiple sites. It
facilitates intelligent resource planning in the face of rapidly changing constraints such as
materials availability, market readiness, plant capacities, personnel certification and
business costs per location." In short, Robie emphasizes, ERP systemswill allow decision
makers to champion "an intelligent, agile and responsive organization in the global
marketplace of the next century."ERP is a hot trend in manufacturing/information
technology circles right now, and all indications point to it getting even hotter. Advanced
Manufacturing Research (AMR)estimates that the worldwide ERP software market grew
from $7.2 billion in 1996 to $9.6 billion in 1997. "Much of ERP's market growth is
driven by an increasingly global business focus," observes Gisela Wilson, AMR's director
of primary research. "Manufacturers are scrambling to replace MRPII systems with
software that will ease the integration of business processes and support multi-national
and multi-site business environments."In modern manufacturing operations, information
starts at the top and the bottom simultaneously. Data originates at the machines, the
34
process and the workers. It is collected by sensors, controls and operators. It indicates
what is being made, how and will be done, and why it won't be on time. Programs such as
manufacturing execution systems (MES) and shop floor control take the data and create
the information, passing it up the chain to the planners and product developers.

Here thedata are integrated with other bytes from advanced scheduling and planning
systems to produce a report and forecast.Entire forests have been leveled addressing the
problems of process control, but what about the problem of information control?
Columbia Contech (Vancouver, Wash.), a manufacturer of electric equipment, control
systems and regulators, was confronted with just such a problem, and found its solution
in an ERP system provided by DataWorks (San Diego, Calif.), a leading vendor of ERP
software and solutions. "Before we got our ERP system from DataWorks, we manually
costed our jobs when they were completed," says John Jansen, Columbia Contech's vice
president of administration. "Now we do it through the system. Overall control, as far as
control of information, has gotten much better. We enter our bills of material (BOM)
once, whereas under the old system we had to enter it three times. The BOM under the
old system didn't have any linkage to the inventory system. We had to go out there and
manually look at the bill, see what we had on hand, and then order after the fact. This is,
in mymind, the biggest benefit of our DataWorks ERP system to date. Our previous
inventory system was, I'd guess, 50-60 percent accurate despite everything possible we
did to make it accurate. Right now it's probably close to 100 percent accurate."ERP also
can make a difference at the shipping and distribution end of a company. According to
Ashley Mills of the British controls company Eurotherm, which also has implemented a
DataWorks solution, ―Our ERP system has cut out duplications, delays and mistakes on
delivery times, and manufacturing has become more flexible? Shipmentscan go direct,
and are therefore smaller and cheaper. In addition, there's no need to stock materials or
finished units, so stocks don't become obsolete and have to be written off."Even before
the manufacturing operation gets involved, information is necessary, such as in the sales
effort. Steve Cobb, IS manager at Action Instruments (San Diego, Calif.), a manufacturer
of computer peripherals including networked input/output products, explains, "As the
pace of the typical sales cycle increases and the ability to access more information
increases, information systems must be able to keep pace and even improve the process.

35
The most valuable information to our overseas people is product andcustomer
information. It is exceedingly important for all sales people to have a complete view of
all activity that occurs with a customer. This would typically include sales history, but
now must include trouble calls, service requests, repairs and any other activity from
general questions to product inquiries.This comprehensive access to information is now
possible at Action Instruments thanksto a solution embracing both DataWorks'

ERP software and Pivotal elationship software from Pivotal Software (Vancouver, B.C.,
Canada), a supplier of mid-range customerinteraction applications. DataWorks recently
signed an agreement allowing it to packagePivotal's sales force automation technology
withits ERP solutions for mid-range manufacturers.

"The Pivotal Relationship Software provides a complete view of customer relations, and
is a natural complement and front-end to the DataWorks system," Cobb notes.

The scope of research are given below:

1- Sales Markiting, distribution

2-Manufacturing
3-Store management
4-Finance
5-Pesonnel
6-Maintinence
7-Purchase management
8-Planning and control

36
USE AND IMPORTANCE OF STUDY

37
Use of study;

Some of the major use of ERP research and what ERP can do for the business

system are as below:

1:- ERP facilitates company-wide Integrated Information System covering all functional
areas like Manufacturing, Selling adistribution,Payables, Receivables,Inventory,
Accounts, Human resources, Purchases etc.,

2:- ERP performs core Corporate activities and increases customer service and thereby
augmenting the Corporate Image.

3:- ERP bridges the information gap across the organisation.

4:- ERP provides for complete integration of Systems not only across the departments in
a company but also across the companies under the same management.

5:- ERP is the only solution for better Project Management.

6:- ERP allows automatic introduction of latest technologies like Electronic Fund
Transfer(EFT), Electronic Data Interchange(EDI), Internet, Intranet, Video conferencing,
E-Commerce etc.

6:- ERP eliminates the most of the business problems like Material shortages,
Productivity enhancements, Customer service, Cash Management, Inventory problems,
Quality problems, Prompt delivery etc.,

7:- ERP not only addresses the current requirements of the company but also provides the
opportunity of continually improving and refining business processes.

8:- ERP provides business intelligence tools like Decision Support Systems (DSS),
Executive Information System (EIS), Reporting, Data Mining and Early Warning
Systems (Robots) for enabling people to make better decisions and thus improve their

38
business processes

Importance of study:- some importance of study are given bellow—

1-Selection of ERP

Once the BPR is completed the next task is to evaluate and select a suitable package for
implementation. Evaluation of the right ERP package is considered as more

crucial step. Evaluation and selection involves:

o checking whether all functional aspects of the Business are duly covered
o checking whether all the business functions and processes are fully integrated
o checking whether all the latest IT trends are covered
o checking whether the vendor has customizing and implementing capabilities
o checking whether the business can absorb the cost
o checking whether the ROI is optimum

2-Implementation of ERP

Implementing an ERP package has to be done on a phased manner. Step by step method
of implementing will yield a better result than big-bang introduction. The total time
required for successfully implementing an ERP package will be anything between 18
and 24 months. The normal steps involved in implementation of an ERP

39
are as below:

o Project Planning
o Business & Operational analysis including Gap analysis
o Business Process Reengineering
o Installation and configuration
o Project team training
o Business Requirement mapping
o Module configuration
o System interfaces
o Data conversion
o Custom Documentation
o End user training
o Acceptance testing
o Post implementation/Audit support

The above steps are grouped and sub-divided into four major phases namely

1) detailed discussions, 2) Design & Customization, 3) Implementation and 4)

Production. The phases of implementation vis-à-vis their tasks and respective

deliverables are as below:

40
 Detailed Discussion Phase:

Task :- Project initialization, Evaluation of current processes, business practices, Set-up

project organization Deliverables:- Accepted norms and Conditions, Project Organisation
chart, Identity work teams

Design and customisation Phase:

Task :- Map organization, Map business process, Define functions and processes, ERP
software configuration and Build ERP system modifications.

Deliverables: - Organization structure, Design specification, Process Flow Diagrams,

Function Model, Configuration recording and system modification.

Implementation Phase:

Task: - Create go-live plan and documentation, Integrate applications, Test the ERP
customization, Train users
Deliverables:-

Testing environment report, Customization Test Report and Implementation report

Production Phase:

Task: - Run Trial Production, Maintain Systems

Deliverables: - Reconciliation reports, Conversion Plan Execution

41
 Benefits of Research;-

The benefits accruing to any business enterprise on account of implementing are

unlimited. According to the companies like NIKE, DHL, Tektronix, Fujitsu, Millipore,
Sun Microsystems, following are some of the benefits they achieved by

implementing ERP packages:

o Gives Accounts Payable personnel increased control of invoicing and payment

processing and thereby boosting their productivity and eliminating their reliance on
computer personnel for these operations.
o Reduce paper documents by providing on-line formats for quickly entering and
retrieving information.
o Improves timeliness of information by permitting, posting daily instead of monthly.
o Greater accuracy of information with detailed content, better presentation, fully
satisfactory for the Auditors.
o Improved Cost Control
o Faster response and follow up on customers
o More efficient cash collection, say, material reduction in delay in payments by
customers.
o Better monitoring and quicker resolution of queries.
o Enables quick response to change in business operations and market conditions.
o Helps to achieve competitive advantage by improving its business process.
o Improves supply-demand linkage with remote locations and branches in different
countries.
o Provides a unified customer database usable by all applications.
o Improves International operations by supporting a variety of tax structures, invoicing
schemes, multiple currencies, multiple period accounting and languages.
o Improves information access and management throughout the enterprise.
o Provides solution for problems like Y2K and Single Monitory Unit(SMU) or Euro

42
Currency.

Some Of the best practices

of
ERP In India

43
44
ERarts of it. Privatization of the power sector allowed de-licensing of generation; open access
n networks; multiple distribution agents for the same area and competitive pricing.

established in 1910, pioneered the generation of electricity in India and served Mumbai
r over ninety years. It was mainly a ‗Mumbai centric bulk supplier‘ before privatization
grabbed on to the big opportunity post-privatization.

Power is the country‘s largest private player in the power-sector, with an installed power
pacity of above 2300 Mega Watts. Apart from Mumbai and Delhi, the company has generation
Jojobera, Jharkhand and Karnataka. Its diverse generation capability facilitates the company in
w cost energy, thereby giving its consumers a greater value for money. The company has a
e of 22,000 customers in Mumbai and has acquired 600,000 consumers, post-privatization in
ting through subsidiary companies.

h ER Batliwala, CIO of Tata Power to understand the role of IT in getting the status of number
pplier in the country. The solutions used; the challenges faced; the benefits fetched and the
map. Excerpts from the same.

he main reasons behind Tata Power’s decision to implement an ERP solution?

atization of the power sector, we knew that there was a huge opportunity in front of us waiting
Till before privatization, Tata Power was a Mumbai-centric company, but as the doors opened,
expanding our roots all over India. The company had a clear vision of expanding in a major
ownstream segment and we wanted to increase our generation, transmission and distribution
ponentially.

dmap, we brought several changes across the company; ERP implementation was one of them.
menting ERP we had various legacy systems in operation, but to keep pace with our growth
hat an ERP solution was essential.

ecame the first utility company in India to implement an industry specific ERP solution. We had
r systems to cater to our vastly increased customer base; integrate complete business process
as improve efficiencies in operations and maintenance.

you select SAP as your solution provider? How has the relationship been?
45
n we decided to implement ERP back in 2001-2002, SAP was the only company with an ERP
1. Aviva Life Insurance uses CRM to insure success

What happens when you're late for a party and the fun has already begun? You catch up,
as Aviva did. Helping it was Talisma's e-CRM suite, which the insurance company used
to integrate its customer-facing departments

According to There has been an influx of private life insurance

TARUN companies in India after the liberalization of the
PANDEY, Aviva Indian insurance sector. When Aviva entered the
went in for country in 2002, it was one of the last players to enter
Talisma's suite the market. The key to success therefore lay in
primarily because knowing potential customers better, and in bringing
it offered out products and services
integration with tailored to specific customer requirements.
the company's call
centre
A common platform
operations-which
no other vendor To do this, Aviva decided to go in for an enterprise-
was offering wide deployment of an e-CRM suite even before it
launched Indian operations in June 2002.
A stringent assessment exercise began, during which four vendors, including Talisma,
were evaluated by a team of 10 people. This team had representatives from its IT
department and also from customer-facing departments such as sales, marketing and
customer services.
Recalls Tarun Pandey, manager, applications, Aviva, "After a thorough evaluation
process, we went in for Talisma's suite primarily because it offered integration with our
call centre operations, which no other vendor was offering. The suite promised a common
integrated platform for different customer-facing departments [sales, marketing and
customer services] within the organization."

46
Module

The implementation of the CRM suite was a smooth affair. The exercise began in
December 2001 and went live six months later. Pandey explains, "Since we went in for
the CRM suite before launching our business in India, the implementation was smooth. If
an organization is already in business the implementation exercise can be a prolonged
affair."
The suite has been deployed in marketing, sales and service, as well as in the partner and
sales ecosystem (comprising bank assurance partners and insurance agents). Aviva has
implemented several modules of Talisma e-CRM, such as marketing, sales, servicing and
contact centre. The only component it hasn't used is the chat module. Today, there are
450 personnel using the e-CRM suite at Aviva.

Multi-step campaign

Pandey explains, "The implementation of Talisma e-CRM has helped us share real-time
customer information across different customer-facing departments across locations. This
has helped departments track customer details and respond to queries at short notice."
The implementation has also facilitated quick analysis of Aviva's sales and marketing
initiatives, which has, in turn, helped the company modify its products and services
before offering them to customers. This has helped it win more customers and retain
existing ones by offering them products and services that fit their needs.
It has also helped Aviva develop multi-step marketing campaigns. Based on the type of
response at each stage of an advertising campaign, appropriate processes can be triggered
automatically in the e-CRM suite. Aviva's entire sales and marketing operation has been
integrated through this deployment. The company's customer service team has
successfully leveraged the suite to provide superior service across multiple channels.
Aviva has made its mark in the Indian insurance industry in just two years. It has no
doubt been aided in this by the deployment of Talisma's e-CRM suite that has helped it
launch new products and services to differentiate itself from competitors.

47
2-Backup system is lifeline of NSE

The National Stock Exchange handles more data in a day than many organizations do in a
year. Here's how the NSE does it

G M SHENOY says The

the National Stock Exchange (NSE) has a 60-65 percent share of the
most critical asset of equity
the market. Its average daily turnover is Rs 8,000-9,000 crore.
National Stock According to G M Shenoy, vice-president of information technology
Exchange is its at NSE, the most critical asset of the exchange is its transaction data.
transaction data The total volume of data residing in NSE's systems runs into 2-3
terabytes, and is expected to grow to 7.5 terabytes over the next four
years. Any downtime is unacceptable at NSE since the business lost due to data loss can be
tremendous.
Till about three years ago, NSE had a distributed back-up system in place using direct-attached
tapes. The processes required 400 GB of data to be backed up daily and 900 GB at the
weekend over multiple servers and across different platforms such as Unix, NT and Linux.
However, the changing external market dynamics warranted a centralized back-up solution.
Data volumes within the exchange were also growing.
The time required for back-up activity also kept increasing as data increased, so there was
concern that the NSE would not able to meet its deadlines in the future. The back-up time
window available to NSE is between 9 pm and 7 am. Shenoy points out that considering the
rate at which the volume of data was growing, the exchange would not have been able to meet
the 7 am deadline if it had continued with its earlier system.

Out of the box

NSE had two options. First, to go for back-up on the network, that is, LAN. Second, back-up
using SCSI. Since it had a back-up window of just a few hours, neither of these two could meet
NSE's requirements. A LAN-based back-up would lead to network congestion, while
connecting the tape libraries to the server using a SCSI cable would mean that storage
48
resources could not be shared. In order to enable sharing of resources, and efficient transfers
within the back-up window, NSE therefore opted for a SAN-based solution. With a SAN-based
LAN-free solution, the SAN functions on its own communication path independent of the
LAN, and the main network is also relieved of data transfer loads and congestion. "A separate
network for back-up means that there are no chokes in the network; the back-up, being on a
Fibre Channel, is also faster. This was required for meeting the back-up time window, which
remained constant," explains Shenoy.
NSE considered various competitive options before zeroing in on StorageTek's SAN-based
LAN-Free solution. The evaluation before arriving at the decision was made on the basis of
factors like speed, connectivity, back-up software, recovery and support.

SAN-based backup

The solution implemented at NSE comprised a StorageTek L700 tape library (400 slots) with
four DLT tape drives, Brocade switches, Storage Net Fibre Channel routers/bridges and back-
up software. NSE's servers are now connected to the Brocade switches using Fibre Channel.
The tape drives are connected to the Brocade switches via bridges to implement a
heterogeneous SAN. The SAN is specific only to the centralized tape solution for back-up
purposes. Veritas Net Backup Data Centre has been installed on the servers. The tape library is
located at the data centre in Mumbai. At the end of the day, the back-up is taken on the tape
library. The solution allows the pool of tape drives to be shared among multiple connected
servers, hence there is no need to back-up the servers individually.
NSE did face some teething problems with its new back-up system during the implementation
stage as well during as the early stages of post-implementation. A few of the servers gave
problems, and some software patching had to be done. During the early stages a lot of testing
of procedures was carried out. It took almost six months for the system to stabilize. However,
once the back-up system steadied, NSE was comfortable with it.

Meeting deadlines

SAN-based direct connect technology and the use of automated tape back-up has resulted in a

49
more efficient, consistent, disciplined and reliable back-up process for NSE even while its data
size is growing and the back-up window shrinking. Today, even with 600 GB of data back-up
per day, NSE is easily able to meet the 7 am deadline. Since the entire process is now
automated with no manual intervention required, NSE can back-up in half the time, and the
manpower requirement has not increased though data volumes and applications have.
Centralization of the process has made control and monitoring tasks easier so that back-ups
made are more reliable. Today the entire back-up happens in the Mumbai office, as opposed to
back-ups being taken at multiple locations. Availability of a single management console for
heterogeneous platforms provides for seamless and more efficient management. Restoration is
easier, more systematic and faster. It also provides the scalability needed to increase storage
capacity as NSE's requirements grow.

3-Syndicate Bank saves its way to success

A centralised banking system has helped Syndicate Bank save

crores of rupees
S
"WE were looking for a solution to improve the productivity of SRIRAM
the bank and its customers. It was never about an IT process," says that
declares B S Murthy, general manager, IT, Syndicate Bank. time was
The bank had two alternatives: the
biggest
 Implement core banking by carving out a small area in
challenge
existing branches while keeping the existing branch
automation system intact so that only new customers would get into the core
banking set-up.
 Go in for a wholly-centralised system.

Turnkey project

KPMG interacted with the bank's business council at this stage. The decision was taken
to go in for a core banking system (CBS) where the bank would totally migrate to the
new system as it was felt that splitting into two systems would pose too many accounting
issues. "We had 72 vendors bidding for the
50
contract," says Murthy. That number came down to a dozen, and from that to six, then
three. A detailed evaluation procedure was laid down before selecting Flexcube from i-
flex.
"From the start we were clear that only one consortium would be responsible for the
entire project." The IBM-i-flex consortium was picked for the CBS deployment. "It was a
turnkey project, including core banking, ATM, telebanking, Internet banking and cash
management. We worked with i-flex, HMA, Servion and CashTech on this project," says
Sriram. At the peak of the project, between IBM and i-flex, there were 25 project
executives interacting with the bank.

Multicity pilots

The project began in August 2001. The first branch went live on December 15, 2001.
"The first branch went live in three-and-a-half months. We had to go live in that time
with all the basics. We identified seven critical bits of customisation and went live with i-
flex core banking. Time was the biggest challenge, as it normally takes six to eight
months," says S Sriram, associate partner at IBM Business Consulting Services.
Pilots were undertaken at six branches in six weeks by January 2002. The first was in
Mumbai, which accounted for two of the six pilots; Delhi accounted for another two
while Bangalore and Manipal had one each. "Branches from different cities were picked
out deliberately to ensure uniform technology adoption across the country, while WAN
issues were ironed out in the pilot itself. Normally, pilots are undertaken in a single city,"
says R Narasimhan, senior relationship manager, i-flex solutions.
After this came the launches of new delivery channels. ATMs were launched in February
2002. The telebanking launch went live in July 2002, followed by Internet banking in
January/February 2003.
The core team consisted of 20 to 30 people. The core team was trained by i-flex and
IBM-the training included product training and IBM AIX training. The bank organised
training on Oracle. The core team began training end-users and so the acceptance level
was higher. Training in setting up servers and other similar tasks is being given to bank
employees; Syndicate Bank is keeping all these functions in-house. There are plans to
decentralise the helpdesk operations by setting up a helpdesk in Delhi, in addition to the

51
Bangalore operation. "The biggest challenge is to retrain 3,000 officers. We have a 45-
seat set-up in Manipal that is dedicated to CBS training. We run 42 programmes in a
year, accounting for 1,800 officers," adds Murthy. There is a second training set-up in
Delhi.

2. Linux stars in Mission Critical

Linux is growing out of Unix's shadow and handling

mission-critical tasks on its own. Check out its role at the NSE

THE National Stock Exchange (NSE) was one of the first exchanges in the country to
introduce instruments such as derivatives (which are similar to equity) where you trade in
futures and options.
NSE had a Unix-based system in place for equity trading, but felt the need for a more
cost-effective risk management solution for its derivatives segment. The team working on
the project had to consider various issues. Real-time throughput was required to analyse
trade risk factors. The team also had to ensure that the system wouldn't collapse under
high loads. Linear scalability was another key issue.

Says G M Shenoy, senior vice president of NSE.IT, "NSE was looking at large amounts
of computation. There were more than 1,000 trading members and over 200 clearing
members. Initially we were looking at around 50 trades per second, which would mean
100 value at risk (VAR-a term for risk analysis that has been defined and approved by
economists) computations/second. Parallelism was the only answer."

After considering various options, it was decided to go for a Linux cluster computing
solution, initially on an experimental basis.

The development team decided to use a cluster of inexpensive Linux-based machines

powered by Intel processors, and use MPIS (message passing interface standard) for
clustering infrastructure, with a switched Ethernet 100 Mbps network. It was decided to
use multiprocessor hardware to handle non-parallel components such as data sharing.

52
During this experimental period, R&D was conducted on the platform to ascertain the
robustness of the system and to demonstrate the use of Linux for a real business
application requiring high-level floating point computations at high performance levels.

NSC-Derivatives markets
OTHER
Markest share
1%

99%

NSC
Number of contacts 1,500
Number of users 2,500

The concept worked. From there on it was a matter of fine-tuning and putting it into
production.

53
The answer is Prism

Initially NSE had deployed SuSe Linux, but later on moved to RedHat Linux 7.2 as it
was more ubiquitous. Explains Shenoy, "Plenty of information was available on the
Internet with reference to Red Hat Linux, which was not the case with other Linux
packages. Also, it was easier to get drivers for Red Hat Linux. Another factor that went in
favour of Red Hat was that it was easier to get support."

The system NSE set up for doing VAR calculations has been christened Prism (parallel
risk management system). Prism consists of a centralised mother machine that is in turn
connected to a number of child machines.
The mother, a dual-CPU Intel Xeon 1 GHz server, which runs Red Hat Linux 7.2,
receives the trade information. The trading positions and margins of all the members are
maintained in the memory of the mother machine, which is fault-tolerant. All the
computations that take place on the mother machine are copied onto another machine.
This ensures data recovery in case of a breakdownordisaster.Information is distributed by
the mother machine to the child machines. The child machines are single-CPU Intel PIII
800 MHz workstations. These machines do the margin computation, which is then sent
back to the mother. Currently there are five child machines, but NSE plans to scale up
once trade volumes go up. The Linux children need no management; only the IP address
has to be configured to install a replacementchild. Two important aspects of the
derivatives segment are clearing and settlements, and risk management. The risk
management system at NSE enables online risk and position monitoring of members.

The system, developed by NSE.IT, sends out alerts to the trading system and risk
management team, and if a broker goes past his acceptable risk limits, his account is
disabled in real-time. For instance, if one trade crosses the limit, the next trade a second
later will be automatically rejected. Thus, NSE'srisk management system plays a critical
roleby nipping the possibility ofadefaultin the bud.

54
3. ERP brings visibility into Madras Cements' business

Ramco's e.Applications (ERP) helped Madras Cements streamline its information flow. It
has resulted in efficient capacity planning and utilisation and helped eliminate wastage
MCL had several 'islands' of systems (its own legacy applications) running across its
three manufacturing plants and its corporate office in Chennai. In order to gain a
competitive advantage, it had begun investing in computerising its payroll, finance,
inventory, and invoicing systems in 1985. However over time every plant had its own
systems, platforms, and processes. Due to a lack of integration and different reporting
formats across plants, reports got delayed and accounts did not tally. The flow of
information to the corporate office was not on time. Key information such as financial
and production details were not uniformly available and there was a mismatch of
information generated by production plants sent to the corporate office. This resulted in
unnecessary delays in preparing a monthly accounts report.

Shopping for software inhouse

Once the management decided to go in for an ERP system, the first choice was Ramco
Systems' e.Applications. C V C Rao, general manager-Information Technology, Madras
Cements, says, ―Packages from other ERP vendors were not seriously considered as the
top management felt that choosing a package from our own group company would ensure
smoother implementation and better servicing. In case of any problem we would be able
to fix it faster since the software is supplied by a group company.‖

It was also felt that implementing Ramco e.Applications would ensure smoother
integration with other Ramco applications such as the real time system and open cost
mining system used by MCL. e.Applications had a suite of Web-enabled products for the
cement vertical. This version offered continuous process productions suite, productivity
tools and reporting formats.

A phased implementation

The first phase of the implementation was undertaken in November 1999 and was
completed in about eight months. The major task was to map existing processes
55
across nine functional modules such as-finance, sales, logistics, CPP (Continuous Process
Production), ore management systems, maintenance, customisations for sales and
logistics and HR, and to create a standard set of 'to be' processes, and then test them. The
team consisted of people from the plant and the corporate office. It took a month per
module to map the existing processes and convert them into 'to be' processes. There were
a few customisation problems. Rao explains, ―Some of the processes within the ERP
system had to be shrunk to handle the huge volume of invoices (six lakh per annum)
being generated by MCL's plants.‖ This was followed by a comprehensive training
programme, which covered the basic overview of ERP as well as details about the impact
of ERP on each of the nine e.Applications modules.

Advantage of e. Applications

The implementation has streamlined transactions systems across plants. It has helped
MCL develop an in-house MIS (Management Information System), which helps the
management get information from its plants on a daily basis.
There was a substantial improvement in capacity utilization across the organization. For
instance,

it was found that some costly mining equipment was under utilized.
After comprehensive analysis of mines, equipment and shift (labor) performance, 60
percent of heavy equipment has been withdrawn from operations due to poor
performance and underutilization. The number of shifts has been reduced from three to
two and by continuous monitoring, production and processes have been synchronized.

The implementation in a nut shell

Madras Cements is a cement manufacturer. It
Company
also goes by the name Ramco Cements.
Product Ramco e.Applications 3.1 C Rel 5

56
Locations Chennai, RR Nagar, Jayanthipuram, Alathiyur
connected
Finance, sales, logistics, CPP (Continuous
Modules being Process Production), ore management
implemented systems, maintenance, customisations for sales,
logistics and HR

No of users 350 users

Operating System Windows 2003
Database SQL Server 2000
12 Compaq ProLiant 5500 servers (Pentium III
Servers
dual Processor, 1GB RAM and 36 GB HDD)
Rs 12 crore (cost includes ERP package,
Cost
hardware, OS, database and networking)

4-Project CIS casts a golden eye on LGEIL

LGEIL's online B2B system has helped it reduce time-to-market and meet its cost
innovation targets

According to
Arindam
Bose, LG has
been able to
solve the
problem of
model mix as
per regional
requirements,
which
directly

57
 contributes LG Electronics has a structured IT set-up in the 73
to increased countries where it operates. ERP and supply chain software
sales and solutions are often pre-determined. LG Electronics prefers
contributes to use in-house solutions such as the LG-EDS-C ERP
immensely to system. The evaluation process to select an appropriate
the annual package for its Indian arm started in September 2000 and
sales lasted for a month. Bose says, ―We evaluated Oracle
turnover, because we have a very strong relationship with it as our
and all this is in-house ERP system runs on the Oracle database.‖ After
thanks to CIS the evaluation exercise, LGEIL finally decided to go in for
the its own CIS (Customer Information Services) package.

Standardised systems were too generic

LGEIL found that off-the-shelf SCM packages were too generic and customising them to
suit the company's unique requirements would be a considerable challenge. The CIS
package, on the other hand, was already tailor-made. It has two modules-lgesource.com,
which addresses suppliers, and lgdealernet.com, which caters to distributors. As the
modules are linked to the ERP system, suppliers can access production plans and find out
about the amount of physical stock at LGEIL's Noida manufacturing plant through
lgesource.com. The module also helps keep track of quality of goods that arrive at the
plant and is updated regarding rejected material. Suppliers are intimated about rejections
when they log in. This helps suppliers maintain quality and replenish rejected material at
short notice. Bose says, ―The supplier is automatically able to know the gap between the
production plan and the physical stock of the raw material through lgesource.com. It lets
him plan his own production accordingly to meet demand as and when it arises.‖
The implementation exercise began towards the end of 2000 and the demand-side module
(lgdealernet.com) was rolled out in two months-by Jan 31, 2001. The final roll-out, which
included the supply-side module (lgesource.com) was rolled out by April 2001. The
implementation programme also involved pilots where the company assessed the real-
time feasibility of the system. The CIS package, which was developed in South Korea,
was customised to Indian conditions by the LG Soft India team. A total of 15 people were

58
involved in the exercise. Bose says, ―The main challenge for us was to convince suppliers
and distributors that they were going to benefit from the package. A lot of training
programmes, lasting for a day each, were conducted to motivate them.‖
The company spent around Rs 40 lakh to customise the CIS solution to Indian conditions
and it incurs Rs 15 lakh towards maintaining and hosting the CIS package. The solution
uses an Oracle database that runs on a Sun E420 server, which sits at VSNL Mumbai.

LGEIL reaps CIS's benefits

Almost all the issues that LGEIL was facing before the CIS implementation have been
solved now. Bose says, ―We have been able to solve the model mix problem and have
delivered appropriate models as per regional requirements ever since the Implementation.
This directly contributes to increased sales for the company and contributes immensely to
the annual sales turnover.‖ It is estimated by LGEIL that the consolidated savings as a
result of implementing lgdealernet.com in terms of manpower, transportation,
communications and stationary are as
high as Rs 1 crore on an annual basis.

4;-Baan's ERP boost for Elgi

Asia's leading manufacturer of air compressors went in for a complete ERP

implementation using Baan's solution. Elgi picked Baan based on the ERP major's
strength in handling discrete manufacturing as well as the superior after-sales support
module

After looking
at other
solutions, Elgi
felt that
discrete
manufacturing
was handled
best by Baan,

59
 says Arathi In 1997, Elgi decided to implement an ERP system. It
Varadaraj chose Baan. ―Baan gave us a special price. We looked at
SAP and other solutions and concluded that discrete
manufacturing was handled best by Baan,‖ says Arathi Varadaraj, vice president
organisation development, Elgi.

―Elgi went in for a complete ERP implementation, including stock control, planning,
accounting and sales and purchase,‖ says Gopal Madnani, country manager, Baan India.
Initially three modules were installed-manufacturing, finance and distribution
(purchasing, inventory, sales and stock management). There was one consultant per
module.
A pilot was undertaken. ―The pilot showed us what kind of data can be made available to
end-users from the existing data store,‖ says Varadaraj.
Challenges
Business process documentation and reengineering was a hurdle. Earlier the company
had an in-house system in Ingres that suffered from disconnection. The company had to
clean up existing data to make it ERP friendly. In an ERP system, the composition and
the process of making a product have to be entered into the system to take advantage of
features such as Availability to Promise (ATP) and planning.
Localization was a critical area. ―We had to stumble our way through that,‖ says
Varadaraj. ―It was one of the shortest implementation cycles, we used Baan out-of-the-
box as much as possible,‖ she adds. Change management was complex, as Elgi had to
manage the shift from paper-based systems to ERP.
The implementation Baan's goal is to transfer ownership of the implementation to the
customer. The company starts by putting some product lines in the system, and gets it to a
point where it is acceptable and trains the users. ―The initial implementation was one-
fourth the size that it is today,‖ says Madnani. Most of the subsequent work has been
undertaken by Elgi, which has extended the system. In 1998, the system started off with
16 users. Today there are 125.

60
Snapshot
 Elgi did a complete ERP roll out. It followed this with business intelligence and
a dealer portal.
 Setup
Elgi has dumb terminals running Informix connected to a HP 9000 server at its
head office over a switched network. It uses a Virtual Private Network (VPN)
for remote access.
 Investment
Elgi's total investment in Baan to date has been Rs 33 million. Of this, Rs 14
million has been spent on hardware (the initial investment was Rs 6.3 million)
and Rs 19 million on software (the initial investment was Rs 7.5 million and 0.8
million was spent on the initial implementation).
 Benefits
The benefits include improved accounting, inventory control and material
planning. Elgi has achieved payback on its investment in less than 3 years.

Snapshot of benefits
1. Seamless integration of data from financial, supply chain, sales and HR.
2. Real-time MIS reports can be generated to check inventories,
receivables,
expenses and profitability statements across all departments and
location-wise.
3. Employees can maintain their own records.
4. Automation of HR has helped ABB to get rid of paper trails in HR.
5. Financial audit can be done on a daily or monthly basis, helping ABB
check productivity and revenue per employee on a regular basis

Quick view of SAP deployment at ABB India

61
SAP solution mySAP R/3 version 3.1H and R/3 4.6C for HR
Two Compaq ProLiant 8500 servers run 3.1H (ERP)
Hardware and 4.6C (HR). Another six Compaq ProLiant 6000R
servers are used as application servers.
Operating
Microsoft Windows 2000
System
Database Oracle 8i

No of SAP
500
user licenses

Some of the issues concerning ERP in Indian Market are as follows:

How did ERP penetrate on a vast scale in India?

The Y2K problem and other diminishing opportunities of IT professionals were seen as a
big challenge to the IT market. This was not only the case in India but else elsewhere in
the globe. This proved to be a biggest challenge to the nation who were banking(and are
still) on IT skills for development aspects (individual,economical and overall). The slump
of the IT sector would add drudgery and smash the hopes of so many individuals and
companies.

This problem in itself helped to get another important solution. Firstly this paved way for
more prospects in ERP market. The demand and supply gradually transformed from
general to enterprise resource market.
Once this got stabilized there was no looking back. It was well evident that ERP market
could boom and give the necessary impetus to stakeholders. However this did not mean
that mediocre could survive in the market. There was demand only for top notch services
and professionals. This naturally led to improvement
in the quality of services offered. Such an improvement increased the competition among
various players.The end user was getting assured that he would be receiving the best

62
services for the money invested.
Case ERP in India got more and more competitive. The ERP implementation in India
demanded more than the custom erp India module.
ERP software programs were initially used only for back office functions. They were not
given the due importance and treated just like another supporting function. Reasons like
lack of awareness formed one part while other reasons were costs and technical
difficulties. As explained earlier the gradual demand for ERP increased with a slump in
the software market. Since this led companies to go in for ERP they automatically started
to learn more about it either by force or felt need as they were left with no alternative.

This indirectly created the awareness among companies. They learned more on ERP and
realized its diverse applications. Finally they resorted to use ERP for the whole of the
company and stopped the idea of restricting it to mere back office functions.

Pressures mount on the industry

The industry is facing two major challenges when it comes to dealing with ERP in the
current context:

Sudden change
Firstly they are bound to increase the scope of ERP in enterprise operations. As discussed
earlier ERP was initially restricted to back office functions and later spread its wings to
all the operations in the enterprise. This naturally meant that the ERP manufacturers and
vendors had to increase the functionalities and scope of the application. There are
practical difficulties when it comes to this issue. The ERP experts will definitely be able
to restructure the ERP systems with the help of resources and expertise available with
them. However doing it all on sudden is a difficult task. They must have been working
with different requirements till then. Compelling them to suddenly change will land
things in a mess because there will be lot of confusions for the vendors, manufacturers
and end-users. The unrealistic deadlines and time pressures further add agony to this
menace.

63
Technical factors
Secondly ERP in the nation calls for a restructuring in the technical aspects. This is
definitely appreciable. The fate of the businesses that have already implemented and
deployed ERP remains a big question mark. No doubt change is inevitable and an
element for growth. However it would be next only to impossible to change even before
the current change has stabilized in the market. This is advantageous for the companies
that go for ERP at the first instance .But when it comes to companies that already run
successful ERP systems they have to stick on to the technical changes or ship out from
the market. They can decide to stick on to change but it will cost them heavily. They can
work on to find some replacement technology rather than going for an all round change.
The effectiveness of the replacement is an important issue.

Finance
This is another important determinant of ERP market in India. Some bigger companies
still hesitate to invest in ERP due to the exorbitant costs. It is indeed encouraging to find
that a vast majority of them have realized its benefits and have determined to go for it.
However some of them are keeping quiet due to the risks involved besides the unforeseen
expenses and losses.

Conclusion
The ERP market in India is definitely promising. However India has got a long way to go
when it comes to Improving ERP in terms of technology, scope and applicability in terms
of opportunities and venues, penetration in terms of sectors like education, employment
and the state run offices.

64
 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
 Problem:
What kinds of problems are faced by the business where the ERP software has not been
implemented? And how the ERP software helps these organizations to solve these
problems?

Before ERP implemetation

Prior to the concept of ERP systems, departments within an organization (for example,
the Human Resources (HR) department, the Payroll (PR) department, and the Financials
department) would have their own computer systems. The HR computer system (Often
called HRMS or HRIS) would typically contain information on the department, reporting
structure, and personal details of employees. The PR department would typically
calculate and store paycheck information. The Financials department would typically
store financial transactions for the organization. Each system would have to rely on a set
of common data to communicate with each other. For the HRIS to send salary
information to the PR system, an employee number would need to be assigned and
remain static between the two systems to accurately identify an employee. The Financials
system was not interested in the employee level data, but only the payouts made by the
PR systems, such as the Tax payments to various authorities, payments for employee
benefits to providers, and so on. This provided complications. For instance, a person
could not be paid in the Payroll system without an employee No.

After ERP implemetation

ERP software, among other things, combined the data of formerly disparate applications.
This made the worry of keeping numbers in synchronization across multiple systems
disappear. It standardised and reduced the number of software specialities required within

65
larger organizations.

 Objective of Research

I have undertaken the project “Challenges opportunities and impact on Indian

busuness” in order to study the followings:

 How ERP makes, an organization, competitive to face the challenges from

National companies as well as Multinational Companies? At present competitive
arena, it is essential to all companies MNCs as well as domestic companies to
manufacture the innovative and high quality product at lowest cost, to be
competitive in the market.

 To find out, how ERP integrate all the functions Manufacturing, Supply Chain,
Financials, Customer Relationship Management (CRM), Human Resources,
and Warehouse Management of an Organization to keep the cost lower.

 What kind of positive changes comes after re-engineering the process?

66
 Research design:

The research design for this project has been designed as per the requirement objective
to be fulfill, which have been already mentioned as above in this project. Here the
objectives of this project were such that it required a descriptive research to be carried
out. The descriptive research has helped me to know the perception of dealers of the
particular area.

Sample design:
Sampling unit
Here I have chosen Ghaziabad, NOIDA, these are consists a majority of
companies where either the companies have implemented the ERP Software or
going to implement.
Sampling frame
It is the list of all item of universe from where sample is to be drawn. There were
50
Companies where ERP software was running.
Size of the sample
This refers to the number of items to be selected from the universe to constitute a
sample. The size of sample should neither be excessively lage, nor too small. It should be
optimum. In my research, I had found that there were 50small and big organizations
where ERP Soft wares are running. It was big population to research in a small duration. I
had selected 25 big organizations using Random sampling, on the bases of them I had
prepared my Research Project Report.

67
The 25 big companies covered in this research were as follows
1. Tata power
2. Aviva Life Insurance
3. National Stock Exchan
4. LG Electronics India Ltd.
5. ABB India
6. Jyothy Laboratories'
7.Dabur
8.. Reliance retail

Procedure of choosing sample

I had used the Random sampling technique to select the sample. It is the technique in
which, each item has the equal chance of being selected. There were many small and big
companies, which were using the ERP software successfully. I had chosen only the big
organizations because these organizations had many units located in the different cities, a
large number of user of ERP Software, and wide rang of Financial, Marketing,
Production and HR activities. And to know the effectiveness of ERP software, it requires
the wide range of activities.

68
 Analysis and Data collection

Collection of data:
 Secondary data: The secondary data dad been collected through case studies,
business articles & magazine, and Website of companies.

ERP (Enterprise Resource Planning) > Lean Manufacturing

Enabling lean processes across your enterprise and value chain. Adopting a holistic lean
philosophy across the entire enterprise is a path rather than a estination. It requires
continual monitoring and cremental improvements to the productivity of the rocess, the
quality of the product, and the overall satisfaction of the customer. The concept of lean
goes beyond the factory floor and encompasses the processes of suppliers, customers,
logistics providers, and other partners.For manufacturers looking to balance inventory
levels and global supply chains with improved performance, quality, and customer
satisfaction, Infor's flexible, scalable lea manufacturing solution helps enable lean
processes throughout the entire enterprise-including the internal and external value chain
and the front and back office. Rely on usfor deep lean manufacturing expertise-from
implementation to support, professional services, and training.

69
Infor's lean manufacturing capabilities help companies like yours:

 Improve on-time delivery performance

 Shorten lead time and speed order turnaround
 Improve quality and reduce defects for fewer returns
 Reduce operational costs and provide better pricing to customers
 Increase capacity to accommodate higher customer order volumes
 Improve profitability and grow capital to invest in new strategic initiatives
 Become more agile and flexible

Infor has helped thousands of manufacturers successfully make the transition to lean
by combining best-in-class business application solutions, leading edge technology, and
lean business practice expertise with industry experienced professionals. As a proven lean
solution provider, Infor not only understands the value that a supply chain-wide lean
initiative can bring to an organization, but also the challenges of making that transition a
reality. By building greater trust and improved communication between internal and
external participants, the organization as a whole can take the first step to improving
quality, increasing efficiency, decreasing operational costs, and boosting profitability. As
a result, there will be an opportunity for increased customer satisfaction, improved

employee morale and retention, and a newly found ability for increased capacity to grow
the business

70
 Centers for Disease EPA National
Federal Bureau Control and Prevention
Response Center
of Investigation

Local Health Local Law Neighboring

Media Department Enforcement Utilities
Local First Water Local Civil
Responders Utility Government EPA Regional
Offices
State Law Local Emergency
Enforcement Planning Committees
State Emergency
Responders

State Drinking Water Public Health and State

Primacy Agencies Environmental
Government
Laboratories

Infor ERP (Enterprise Resource Planning) > Quality Management

Improved quality for increased productivity.

In today's global market, quality is king as manufacturers face increased competition for
customers. The pressure to reduce time and error makes it imperative that companies
establish and maintain quality assurance criteria that fully support industry regulations.
To remain competitive, manufacturers need to optimize their engineering and product
lifecycles-and leverage supply chains-to bring superior products to market on time and on
budget. For order-driven manufacturers looking to balance productivity, quality
assurance, customer satisfaction, and profitability, Infor delivers a solution for fully
integrated, robust, scalable automated quality management designed to fit their specific
industry requirements. Our solution integrates all logistic and quality management
processes, enabling manufacturers to improve operational performance and leverage their
supply chains to attain superior quality-and exceed customer expectations.

Infor ERP's quality management solutions help companies like yours:

 Manage quality across multiple plants and distributed teams

71
  Improve decision-making with real-time, accurate engineering and product data
 Monitor supplier performance against industry benchmarks
 Increase customer satisfaction with shorter response times
 Establish and manage criteria to support industry standards and regulations
 Improve collaboration between employees, suppliers, and customers
 Reduce the cost of goods sold

Ideal for makers of complex products, the quality management components of Infor
ERP help companies improve quality levels and take corrective action when necessary.
They allow you to streamline business processes by automating associated concept,
design, pre-production, production, and post-production activities, and by facilitating the
ollection,analysis, and control of key data. You'll get support for cost-effective decision-
making with pre-production process analyses, including performance andcapability
indices. You'll also improve response times; increase customer satisfaction by
maintaining accessible, detailed customer histories; and monitor and manage
communications with customers and suppliers to improve all supply chain relationships.
And through better process management, you'll prevent and reduce ailurencreasing your
profit margins.

ERP (Enterprise Resource Planning) > Financials

Single, integrated modern finance solution for manufacturers.

Manufacturing organizations must standardize on a single, integrated modern financial

ERP solution in order to compete globally. Whether they operate a single site or
multiplesites, it's the only way they can accommodate single-country and multi-country
accounting practices, taxation systems, and compliance demands and differentiate
themselves from the competition.For manufacturers, Infor delivers a robust, multi-
platform, multi-language enterprise resource planning systems that fully integrates
financial management with operations

management, providing support for detailed product, manufacturing, and project costing
methods; national and supra-national statutory bookkeeping and GAAP regulations; and

72
various payment/collection methods and taxes that conform to local and national business
practices. Flexible, sophisticated security and internal controls that help
organizationsmeet critical new compliance regulations such as Sarbanes-Oxley and IFRS
are also part of the package.

Infor's ERP financial solutions help companies like yours:

 Support local statutory bookkeeping in over 30 countries from one system

 Reduce the cost of financial transaction support via optimized, streamlined financial
processes and role-based workbenches
 Meet critical compliance regulations with sophisticated audit trails that drill down to
report on base operational transactions
 Support integration of transactions from multiple financial and logistics sites
 Generate sales invoices from disparate sources
 Manage multi-source valuations in different asset books

Infor has over 20 years of experience providing ERP and financial solutions to global
manufacturing companies including Boeing, Tyco, and Carrier.Infor enterprise resource
planning systems incorporate financials that boost your competitive advantage by
streamlining financial processes and reducing costs, increasing accuracy of financial data,
providing better oversight of expenses and cash flow,improving credit and collections
management, and enabling tighter control over project and cost accounting. By
addressing the full range of multinational requirements-including fiscal and local
compliance issues and integration with other domains in your ERP system-and helping
you improve performance management, you get all the critical components you need to
manage complexity and extend your global reach.

73
FINDINGS

74
 Research Findings Advantages Integration

Integration can be the highest benefit of them all. The only real project aim for
implementing ERP is reducing data redundancy and redundant data entry. If this is set as
a goal, to automate inventory posting to G/L, then it might be a successful project. Those
companies where integration is not so important or even dangerous tend to have a hard
time with ERP. ERP does not improve the individual efficiency of users, so if they expect
it, it will be a big disappointment. ERP improves the cooperation of users.

Efficiency
Generally, ERP software focuses on integration and tends to not care about the daily
needs of people. I think individual efficiency can suffer by implementing ERP. The big
question with ERP is whether the benefit of integration and cooperation can make up for
the loss in personal efficiency or not.
Cost reduction
It reduces cost only if the company took accounting and reporting seriously even before
implementation and had put a lot of manual effort in it. If they didn't care about it, if they
just did some simple accounting to fill mandatory statements and if internal reporting did
not exists of has not been financially oriented, then no cost is reduced.
Less personnel
Same as above. Less reporting or accounting personnel, but more sales assistants etc.
Accuracy
No. People are accurate, not software. What ERP does is makes the lives of inaccurate
people or organization a complete hell and maybe forces them to be accurate (which
means hiring more people or distributing work better), or it falls.
Some other advantages achieved by world’s major companies:

benefits to Tata Power by implementing ERP.

Benefits happened in four major areas - cycle time reduction, inventory reduction,
manpower reduction thereby making people available for redeployment, and most
importantly it helped us provide better quality information. Implementing SAP R/3

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reduced procurement cycle times (PR release to PO release) from 41 days to 17 days
(material procurement); 90 days to 14 days in capital procurement; accounts closing cycle
time (annual – in SAP) reduced from 38 days to 8 days; stock reduction by Rs 28 cr at
major stocking location; manpower savings due to centralization and automation of
processes; billing integrity index improved from 3.00% to 1.83%; billing complaints
response index has improved from 90% to 99%.

The benefits accruing to any business enterprise on account of implementing are

unlimited. According to the companies like NIKE, DHL, Tektronix, Fujitsu, Millipore,
Sun Microsystems, following are some of the benefits they achieved by implementing
ERP packages:

 Gives Accounts Payable personnel increased control of invoicing and payment

processing and thereby boosting their productivity and eliminating their reliance
on computer personnel for these operations.
 Reduce paper documents by providing on-line formats for quickly entering and
retrieving information.
 Improves timeliness of information by permitting, posting daily instead of
monthly.
 Greater accuracy of information with detailed content, better presentation, fully
satisfactory for the Auditors.
 Improved Cost Control
 Faster response and follow up on customers
 More efficient cash collection, say, material reduction in delay in payments by
customers.
 Better monitoring and quicker resolution of queries.
 Enables quick response to change in business operations and market conditions.
 Helps to achieve competitive advantage by improving its business process.
 Improves supply-demand linkage with remote locations and branches in different
countries.
 Provides a unified customer database usable by all applications.
 Improves International operations by supporting a variety of tax structures,

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 invoicing schemes, multiple currencies, multiple period accounting and
languages.
 Improves information access and management throughout the enterprise.

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 CONCLUSION
Conclusion:-The ERP system deals with planning and use of resource used in business
.The ERP provides the methodology of assessing the resource needs of a given business
plan to achieve certain business objective. It also helps to executive the strategies, plan,
decisions and actions in a certain business objective .Some opportunity of ERP are given
bellow……

1-Security

2-Authorization

3-Referencig

4-Responsibility

5-Implementation

so we can say that ERP is one of the user friendly software with the help of ERP we can
utilize all the resource of an organization.

Some challenges of ERP are given bellow……

1-Costly

2-Not easy to implement

3-Traind person require.

Once the ERP application has been deployed at a client‘s site, e-Tomato offers technical
support and maintenance services so as to ensure proper functioning and optimal
performance of the application. An organization's vision might be unique to it and also
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the strategies to achieve that vision. But at the macro level, the basic business activities
strike a similar chord across the various organizations & business segments. A good
ERPvendor identifies the best practices of these across the world and sews together to
develop a seamless integrated package. It forces you to obtain clarity & integration of
business processes to the bottom most level. .An ERP implementation should not be
looked as a stand-alone activity. It lies along the change continuum of the BR exercise.
An implementation can be called successful oncethe re-invented processes are religiously
followed by the Organization. In effect, the whole exercise is an on-going process.

A point that needs to be accentuated is that the onus of a successful implementation lies
on the organization rather than the service provider. The service provider plays the role of
a facilitator and catalyst. This does not mean that the service provider wants to play on a
safe ground. But because of the fact that you are the best judge of your processes and you
have evolved a vision for the organization. This would ensure all to say about you & the
re-invented processes.

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 Recommendation

An organization should also consider the following points before implementing the ERP
Software:
It is impotant for any type of organisation it provide a healthy environment for work. It
should be operate by a skilled person .it is an effective software which give effective
result.In India there is agreat impact of ERP and future time period it provide good
opportunity to use work force in a effective way.

Information technology has helped the nation to occupy a prominent place in the world
map. There has always been a great demand for professionals and business opportunities
in the sector in this nation. However the nation is not free from problems as far as
Information technology is concerned.
They have lots of limitations which discourage prospective investors as they have
advantages which attract investment.

The generic ERP package represent the commonly operated business model of the
organization. It is built with the function models like the Finance Marketing Sales and
Personnel and their sub-modules.It improve the efficiency of production so in my point of
view ERP is one of the best an beneficial software .It most be implemented by every
small and big organization .

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Some hidden advantage of ERP of any organization are given bellow………………..

1:- Better management of reducing the cost of operation .

2:- Planning at functional and process level. Simultaneous increase in the productivity of
the business possible.

3:- Customer satisfaction increase use to sorter delivery cycle. Closure contact with user .

4:-Intelligent ERP download the decision making at lower level releasing the burden on
the middle management.

5:- Due to faster processing technology and SQL management can see the information in
their perspective and take different view of the business.

6:- The ERP decision is proactive it makes the management alert at a no. of points
demanding the decision or action.

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LIMITATION

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 Limitations of ERP

 Success depends on the skill and experience of the workforce, including training
about how to make the system work correctly. Many companies cut costs by
cutting training budgets. Privately owned small enterprises are often
undercapitalized, meaning their ERP system is often operated by personnel with
inadequate education in ERP in general, such as APICS foundations, and in the
particular ERP vendor package being used.
 Personnel turnover; companies can employ new managers lacking education in
the company's ERP system, proposing changes in business practices that are out
of synchronization with the best utilization of the company's selected ERP.
 Customization of the ERP software is limited. Some customization may involve
changing of the ERP software structure which is usually not allowed.
 Re-engineering of business processes to fit the "industry standard" prescribed by
the ERP system may lead to a loss of competitive advantage.
 ERP systems can be very expensive to install.
 ERP vendors can charge sums of money for annual license renewal that is
unrelated to the size of the company using the ERP or its profitability.
 Technical support personnel often give replies to callers that are inappropriate for
the caller's corporate structure. Computer security concerns arise, for example
when telling a non-programmer how to change a database on the fly, at a
company that requires an audit trail of changes so as to meet some regulatory
standards.
 ERPs are often seen as too rigid and too difficult to adapt to the specific workflow
and business process of some companies—this is cited as one of the main causes
of their failure.
 Systems can be difficult to use.
 The system can suffer from the "weakest link" problem—an inefficiency in one
department or at one of the partners may affect other participants.
 Many of the integrated links need high accuracy in other applications to work

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 effectively. A company can achieve minimum standards, then over time "dirty
data" will reduce the reliability of some applications.
 Once a system is established, switching costs are very high for any one of the
partners (reducing flexibility and strategic control at the corporate level).
 The blurring of company boundaries can cause problems in accountability, lines
of responsibility, and employee morale.
 Resistance in sharing sensitive internal information between departments can
reduce the effectiveness of the software.
 There are frequent compatibility problems with the various legacy systems of the
partners.
 The system may be over-engineered relative to the actual needs of the customer.

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BIBLIOGRAPHY

85
 Bibliography

Books

.. ERP - Rmaswami (Eleventh Edition)

 Research Methodology - C.R. Kothari
 ERP global- G.C. Berry

Websites

 http://www.erpindia.com
 http://www.erpworkforce.com
 http://www.erpresearch.com
 http://www.google.com
 http://www.channeltimes.com
 http://www.idcindia.com
 http://www.khoj.com
 http://www.mit.gov.in
 http://www.dqindia.com

Magazines

 Business Today February 12, 2008

 Business Standards January 6, 2008
 Three Sixty Magazine November 30, 2007
 Outlook February 15, 2008

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ANNEXURE

87
 Project CIS casts a golden eye on LGEIL

LGEIL's online B2B system has helped it reduce time-to-market and meet its cost
innovation targets

According to LG Electronics has a structured IT set-up in the 73

Arindam countries where it operates. ERP and supply chain software
Bose, LG has solutions are often pre-determined. LG Electronics prefers
been able to to use in-house solutions such as the LG-EDS-C ERP
solve the system. The evaluation process to select an appropriate
problem of package for its Indian arm started in September 2000 and
model mix as lasted for a month. Bose says, ―We evaluated Oracle
per regional because we have a very strong relationship with it as our
requirements, in-house ERP system runs on the Oracle database.‖ After
which the evaluation exercise, LGEIL finally decided to go in for
directly the its own CIS (Customer Information Services) package.
contributes
Standardised systems were too generic
to increased
sales and LGEIL found that off-the-shelf SCM packages were too
contributes generic and customising them to suit the company's unique
immensely to requirements would be a considerable challenge. The CIS
the annual package, on the other hand, was already tailor-made. It has
sales two modules-lgesource.com, which addresses suppliers,
turnover, and lgdealernet.com, which caters to distributors. As the
and all this is modules are linked to the ERP system, suppliers can access
thanks to CIS production plans and find out about the amount of physical

stock at LGEIL's Noida manufacturing plant through lgesource.com. The module also
helps keep track of quality of goods that arrive at the plant and is updated regarding
rejected material. Suppliers are intimated about rejections when they log in. This helps
suppliers maintain quality and replenish rejected material at short notice. Bose says, ―The
supplier is automatically able to know the gap between the production plan and the
physical stock of the raw material through lgesource.com. It lets him plan his own
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production accordingly to meet demand as and when it arises.‖
The implementation exercise began towards the end of 2000 and the demand-side module
(lgdealernet.com) was rolled out in two months-by Jan 31, 2001. The final roll-out, which
included the supply-side module (lgesource.com) was rolled out by April 2001. The
implementation programme also involved pilots where the company assessed the real-
time feasibility of the system. The CIS package, which was developed in South Korea,
was customised to Indian conditions by the LG Soft India team. A total of 15 people were
involved in the exercise. Bose says, ―The main challenge for us was to convince suppliers
and distributors that they were going to benefit from the package. A lot of training
programmes, lasting for a day each, were conducted to motivate them.‖
The company spent around Rs 40 lakh to customise the CIS solution to Indian conditions
and it incurs Rs 15 lakh towards maintaining and hosting the CIS package. The solution
uses an Oracle database that runs on a Sun E420 server, which sits at VSNL Mumbai.

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 QUESTIONNAIRE

1. Name: -

2. Address: -

3. Age: -

a) 21-30 yrs b) 30-40 yrs.

C) 40-50yrs D) more than 50 yrs.

4. Occupation: -

a) Govt. employee b) Private employee

5. Income group (in Rs): -

a) Upper b) Middle c) Lower

6. From which financial institution you have taken loan: -

(1) S.B.I (2) B.O.B.

(3) L.I.C (4) I.C.I.C.I

(5) Central Bank (6) Canara Bank

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 7. Have you taken loan before: -

Yes No

8. What is the purpose of the loan?

Industrial purpose Repairs and renovation

9. Which type of loan you have taken: -

Fixed Rate Loans Floating Rate Loans

10. Comments on the service of home loan of this bank: -

Good V.Good

Satisfactory Dissatisfactory

91