Cloud LRP - Manuacturing company perspectie.

Arun Kabra,11BM60046,
Leelaram 1ennati ,11BM60124,

Abstract
1he Lerm cloud compuLlng comes from (aL leasL parLly) Lhe use of a cloud lmage Lo represenL Lhe
lnLerneL or some large neLworked envlronmenL Cloud compuLlng ls accesslng resources and servlces
needed Lo perform funcLlons wlLh dynamlcally changlng needs 1hls paper explores Lhe beneflLs of cloud
compuLlng ln a manufacLurlng company uslng cloud L8 by analyzlng exlsLlng soluLlons and how cloud
compuLlng can Lransform Lhe exlsLlng appllcaLlons

Introduct|on
A few year backs Lhe l1 peneLraLlon was very small ln manufacLurlng secLor 8lg sLeel
manufacLurers who had planLs spread across varlous locaLlons faced several problems ln varlous
operaLlons llke lnvenLory managemenL supply chaln managemenL and cusLomer managemenL 1he
soluLlon Lo Lhese problems came from seLLlng up an on premlse l1 L8 sysLem 1aLa SLeel provldes e
procuremenL and esales Lo cusLomers across Lhe globe and uslng SA 8/3 sysLems 8esource uLlllzaLlon
lmprovlng efflclency and cusLomer saLlsfacLlon are Lhe key areas Lo focus for a manufacLurlng company
When a company goes for an on L8 sysLem lL has Lo spend large amounL of lnvesLmenLs on lnlLlal
seLup acqulrlng llcenses and conLlnuous ongolng malnLenance of servers daLabases and neLwork
lnLegraLlon across Lhe organlzaLlon Also lL needs Lo hlre hlgh pald Lechnlcal experLs from ouLslde who
would be managlng Lhe sysLem for Lhe company Cloud L8 ls a plaLform whlch provldes several flexlble
opLlons Lo lnLegraLe varlous buslness processes llke llnance Sales ulsLrlbuLlon lnvenLory and uealer
ManagemenL 8esource opLlmlzaLlon 8esearch and 1ralnlng programs

1radlLlonal L8 belng used ln a manufacLurlng company has Lhe followlng drawbacks

4 |m|ted capab|||ty When Lhe equlpmenL ls purchased lL comes wlLh llmlLed capablllLy lnlLlally
Lhe capablllLy requlremenL can be low and Lhe exLra capablllLy ls noL uLlllzed and ln Lerms ls
wasLed As Llme lncreases Lhe usage lncreases and Lhe usage ls Lo Lhe maxlmum capablllLy WhaL
now lf we need more capablllLy We need Lo purchase new hardware or llcense Lo fulflll Lhls
demand
4 pace kequ|rement WlLh Lhe hardware comes Lhe requlremenL of space
4 Add Cn or updates WlLh Lhe rapld changes ln Lechnology one has Lo keep Lechnology up Lo
daLe and wlLh Lhe regular updaLlng on each and every machlne comes Lhe cosL dependlng on
agreemenL beLween vendor and company
4 @ra|n|ng across |ocat|on 1ralnlng had Lo be provlded Lo personnel from dlfferenL locaLlons ln
order Lo keep Lhem updaLed wlLh laLesL sysLem


lollowlng feaLures make a cloud based lnLegraLed L8 sysLem preferable over havlng a LradlLlonal
sysLem for a manufacLurlng organlzaLlon

Access|b|||ty ln a LradlLlonal L8 sysLem appllcaLlons cannoL be accessed ouLslde Lhe company
premlses and aL Llmes lL mlghL resulL ln sLalllng of work aL slLe Slnce cloud ls avallable over Lhe
lnLerneL one can have access 24 x 7 from anywhere wlLh valld credenLlals
|ex|b|||ty]ca|ab|||ty ln a LradlLlonal L8 sysLem Lhe exlsLlng l1 lnfrasLrucLure needs Lo be
changed Lo accommodaLe Lhe new sysLem A Cloud based sysLem can be accommodaLed wlLh
exlsLlng sysLems ln Lhe organlzaLlons as Lhese sysLems are developed for unlversal usage
Dpgrades and Add ons Servers have Lo be upgraded wheLher lL ls for space or regular use ln
a cloud sysLem slnce Lhe updaLlng ls done by servlce provlder lL can be done ln backend wlLhouL
affecLlng Lhe work on Lhe fronLend
ke||ab|||ty 1radlLlonal server needs Lo have backup Laken regularly 8uL wlLh a cloud sysLem Lhls
all ls planned ouL MonlLorlng ls done 24x7 Lo make sure Lhe hlghesL posslble upLlme raLe Lo
access appllcaLlons ls Lhere
,oney av|ng 1he cosL of malnLalnlng sysLems wlll be mlnlmlzed as companles have Lo pay per
use
anges |n po||c|es or bus|ness process Cloud opLlons are robusL yeL flexlble enough Lo accepL
Lhe cycllcal naLure of manufacLurlng Slnce ma[orlLy of cloud appllcaLlons are developed uslng
lndusLry sLandards Lhey accommodaLe for Lhe sLandard buslness process WlLh llLLle
cusLomlzaLlon Lhe sysLem ls ready for use
Cn Demand 1he blggesL advanLage of uslng a cloud sysLem ls on demand Company has Lo pay
only for Lhe worLh of lLs usage noLhlng more

enef|ts of us|ng |oud omput|ng ,ode| |n a ,anufactur|ng company
lew areas whlch can be beneflLLed uslng Cloud compuLlng lnclude
O Inventory traceab|||ty and ync|ng ,ater|a| Informat|on Cloud L8 based sysLem can creaLe a
seamless chaln of LransacLlons by tallorlng purchaslng process based on Lhe company pollcy
provlde conflgurable workflows leLLlng company choose how Lo model cusLomer speclflc
LransacLlons Lo besL sulL company lnvenLory managemenL needs CusLom documenLs and
LransacLlons from our besL pracLlce LemplaLes can be creaLed or bulld compleLely from scraLch
O 9r|ce ,anagement and us|ness v|s|b|||ty Cloud L8 can provldes auLomaLlc quanLlLy prlce
breaks and economlc order quanLlLles Lhe purchaslng amounL mosL economlcal for you Lo
order from a vendor Lo help you keep purchaslng cosLs down lL can also creaLe cusLomlzable
lnvenLory managemenL reporLs and cenLrallzed buslness dashboards LhaL reflecL Lhe realLlme
performance of Lhe company
O ;ua||ty |mprovement WlLh LradlLlonal sysLem paperwork ofLen lags behlnd afLer Lhe maLerlal
physlcally reaches lLs flnal desLlnaLlon and specs musL be updaLed manually ConsequenLly
when quallLy lssues surface managers have Lo walL for Lhe paperwork Lo move Lhrough Lhe
channel ln order Lo make declslons uslng cloud based L8 resolves all Lhese lssues effecLlvely
1he suppllers can Lrack Lhe maLerlal and updaLe any dlscrepancles lmmedlaLely CuallLy
lmprovemenL ls posslble as managers can deal wlLh Lhe quallLy lssues lmmedlaLely decreaslng
Lhe lmpacL
O |nanc|a| ,anagement Cloud compuLlng provldes prepackaged besL pracLlce charLs of
accounLs dashboards and flnanclal reporLs whlch makes flnanclal managemenL easler 1he
oLher feaLures whlch are avallable are Ceneral Ledger real Llme reporLs Lools Lo lmprove
lnLernal conLrols compllance and Lransparency

2
2
2
nremlse L8
Cloud L8
*All Lhe cosL are
measured ln Lakhs for
uslng sofLware for
years
* CosLs lnclude SofLware
lnsLallaLlon
MalnLalnance and
neLworklng cosLs for n
remlse L8
* rlce of Cloud L8
based on SubscrlpLlon
CosLs
@ecn|ca| a||enges
Cloud L8 avallable now are noL as sophlsLlcaLed as exlsLlng L8s SA lL may Lake some more
Llme for Lhls Lo become as maLured as SA sysLems 1he LranslLlon of exlsLlng L8s Lo Lhls lnvolves cosLs
llke Lralnlng cosLs lnsLallaLlon cosLs and oLhers ln a LradlLlonal sysLem daLa securlLy ls hlgh and Lhe
company does noL have Lo worry much abouL lL as lL can proLecL lLs daLa by uslng flrewalls and oLher
securlLy measures 8uL Lhe advanLages L8 cloud provldes ln long run overshadow Lhese 1here are blg
cloud L8 provlders whlch offer LrusL worLhy servlces Lo Lhe cllenL Also developlng a prlvaLe cloud le a
cloud based L8 producL ls an opLlon as well as a good buslness opporLunlLy Lo generaLe huge revenue

ost ompar|son for |oud comput|ng
As dlscussed earller we know LhaL Lhe cosLlng for Cloud ls dlrecLly proporLlonal Lo number of users of Lhe
sysLem A rough esLlmaLe of cosL savlng LhaL occurs because of L8 cloud over a perlod of years ls
abouL lor a sysLem of users a LradlLlonal L8 may cosL lakhs for years whereas Lhe same
wlLh cloud L8 Lurns Lo be around 2 lakhs 1here wlll be no lssues of upgrades and malnLenance lor
example Cloud L8 provlder neLSulLe commlLs Lo 99 avallablllLy for lLs cusLomers has 9998
average upLlme performance over Lhe pasL 2 monLhs 1he followlng graph deplcLs Lhls cosL
comparlson