A Thesis Report On ERP Submitted in partial fulfillment of the Requirements for the Award of the Degree of MASTER OF BUSINESS

ADMINISTRATION Submitted by

SIGNATORY PAGE

TO WHOM SO EVER IT MAY CONCERN

Signature of the External Guide

Sunil Bharadia

ii

ACKNOWLEDGEMENT

Abstract To improve productivity and overall business performance, Enterprise Resource Planning (ERP) is one of the solutions for the Small and Medium Enterprises (SMEs) in order to face the global challenges. Though ERP systems, which evolved from Manufacturing Resource Planning (MRP II) systems, have many advantages, there are some failure stories also. The Indian firms and especially Small and Medium Enterprises (SME) are unable to decide upon proper implementation of these systems. On the basis of the case studies of ERP implemented Indian SMEs and in-depth interviews with the ERP vendors, this thesis present issues and challenges in front of Indian SMEs.

iv TABLE OF CONTENT PAGE NO 1 3

SERIAL NO 1 1.1 INTRODUCTION ERP Overview

TITLE

1.2 1.3 1.4 1.5 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3 3.1 4 5 6 7

ERP Implementation ERP Benefits SMEs & ERP Issues & Challenges METHODOLOGY Problem Definition Objectives Scope Justification Research Methodology Research Design Limitations REVIEW OF LITERATURE Process of ERP Implementation DATA ANALYSIS AND INTREPRETATION FINDINGS CONCLUSION SUGGESTION AND RECOMMENDATION BIBLIOGRAPHY ANNEXURE v LIST OF TABLES

4 5 8 12 14 15 15 15 16 16 17 17 19 20 24 43 47 49 52 54

TABLE TITLE NO1 NO Table showing encountered problems with respect to implementation 2 3

PAGE NO 24 25 26

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

vi

LIST OF CHARTS CHAR T NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 TITLE PAGE NO 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

vii

CHAPTER 1 INTRODUCTION

CHAPTER 1 INTRODUCTION

ERP Overview Introduction

ERP Benefits Implementation

Source: P.T. Kale et al. / Enterprise Resource Planning Implementation in Indian SMEs: Issues and Challenges 1

7 SMEs and ERP

Pressure from larger counterparts: Due to globalization, SMEs today operate in a wider arena. Majority of them have MNCs as their clients. These MNCs require SMEs to implement the same ERP system as them to allow for tighter integration in their supply

chain, which permits them to design and plan the production and delivery so as to reduce the turnaround time.

Peer pressure: Considering the growth in ERP implementation in the SME segment, several SMEs are adopting ERP systems as their peers have done so.

10 E-commerce benefits: This benefit will accrue from the close integration between large

Source: www. syscon-solutions.com/docs/erp.pdf 2

11 Issues and Challenges Source: www.erpwire.com 3

CHAPTER 2 METHODOLOGY

CHAPTER 2 METHODOLOGY PROBLEM DEFINITION The thesis titled A Study on Implementation of ERP in SMBs in Chennai region is

OBJECTIVES Primary Objective Secondary Objectives

SCOPE

JUSTIFICATION

RESEARCH METHODOLOGY RESEARCH DESIGN

Sampling Segment: Sample Size: 100 respondents Sample Techniques: LIMITATIONS OF THE STUDY

CHAPTER 3 REVIEW OF LITERATURE

CHAPTER 3 REVIEW OF LITERATURE

Source: Raman Dhooria - http://nmcc-vikas.gov.in/PDFLibrary/Microsoft%20guide %20book.pdf 4

Process of ERP Implementation

20

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION TABLE SHOWING SOME REASONS WHICH AFFECT THE BOTTOM LINE (PROFITABILITY) GROWTH Options Excess stocks Wastage of process Machine utilization Lack of proper MIS to monitor the process Any other Total 0 20 CHART 17 CHART SHOWING MANAGEMENT DECISION ON COMPLAINTS 0% 100% No of respondent 0 12 8 0 Percentage % 0% 60% 40% 0%

0% 40%

60%

Inference: 60% of the respondents said that some reasons which affect the bottom line (profitability) growth is wastage process, 40% of the respondents said that some reasons which affect the bottom line (profitability) growth is machine utilization.

CHAPTER 5 FINDINGS

CHAPTER 6 CONCLUSION

CHAPTER 7 SUGGESTIONS & RECOMMENDATIONS

BIBLIOGRAPHY

BIBLIOGRAPHY Books & Magazines National Institute of Technical Teachers' Training and Research, Sector 26, Chandigarh. 160019, India Prof and Head, Department of Mechanical Engineering, NITTTR, Chandigarh, 160019, India. P.T. Kale et al. / Enterprise Resource Planning Implementation in Indian SMEs: Issues and Challenges Websites www.erpwire.com www.it.toolbox.com www.articlesbase.com

ANNEXURE
Questionnaire