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CRONUS INTERNATIONAL LTD. & MICROSOFT DYNAMICS 2009 Report submitted by (Group 1 Section A):Abhinav Gupta (12DCP-002) Karan Ajmera (12DCP-006) Akarsh Venugopal (12DCP-008) Akul Kailwoo (12DCP-009) Deepak Sharma (12DCP-028) Devneet Bohidar (12DCP-030) Dhruv Goyal (12DCP-032) Gaurav Rathi (12DCP-037) INTRODUCTION Microsoft Dynamics NAV 2009 Microsoft Dynamics is a fully integrated relational database system that allows user to enter and maintain financial and other business activities in one place, such as ledger,Inventory ,Sales and receivables,Purchases and payables, Manufacturing. It provides a streamlined, RoleTailored user experience to help people work more effectively.It is basically categorized as an enterprise resource planning (ERP) system. It offers a breakthrough user experience and technology innovations that can simplify access to information, improve organizational agility, streamline integration with a wide range of applications, and enhance reporting capabilities- even for the most highly specialized industries and organizations General Cronus UK Ltd. Cronus was founded by a bicycle maker named Dennis Traversen who had a shop on Cutlery Street in London. Cronus has been the market leader for city and recreational bicycles in the UK for some time. And, over the past few years, Cronus has also acquired a leading position in a number of other European countries. Cronus is still fully responsible for the design, development, production and distribution of its products. It continues to work closely with suppliers for the production of parts. The Cronus Design Department usually designs the parts, which are then manufactured exclusively for Cronus by the supplier. Since 1999, Cronus has used the ERP solution, Microsoft Dynamics NAV, to support its company processes. At the time, the choice was based on the fact that Cronus identified with the innovative nature of the product. Since 2009, they have been working with the new RoleTailored Client. It has a no. of departments such as  Finance Management  Sales & Marketing  Purchase  Warehouse  Manufacturing  Human Resource  Service FINANCE MANAGEMENT DEPARTMENT Microsoft Dynamics NAV provides accounting & finance solutions to help you track & analyze your business information. The financial department at Cronus does more than just register sales and receivables. It is also responsible for drafting and monitoring budgets. The CFO, Sara, is responsible for management of the departme nt. NAV’s financial management solution helps Cronus to go beyond the basics of planning, budgeting, bookkeeping, & managing cash flow so organizations can extract added value from financial data to help decision-makers better guide the business. With end-to-end integration, you can efficiently manage your general ledger, payables, receivables, inventory, analytical accounting & fixed assets. You can even manage your financial processes across multiple currencies, locations, or companies. Cronus can control & manage the entire life cycle of your fixed assets—from acquisition to disposal. It uses posting groups to automatically calculate VAT, sales tax, excise tax, or other use taxes for customers & vendors. It optimizes cash flow by streamlining accounts receivable processes & tracking customer payments. The comprehensive, up-to-date financial information makes it easier to spot trends & gain insight into business activities, so one can capitalize on knowledge & identify new opportunities. There are various other functionalities related to finance which can be used in Microsoft NAV. Cronus balance sheets, Profit & Loss statements & various other financial statements can be viewed in Microsoft NAV. There are also many utilities offered in payables, inventories, liquidity & periodic activities. Following is the snapshot of the various subunits of Financial Management offered in NAV:- SALES AND MARKETING This Department is led by Julia and has two subdivisons. With a sales & marketing solution fully integrated with Microsoft Dynamics NAV, Cronus provides sales and marketing team with the tools and access to data they need to efficiently manage current customers, opportunities, and campaigns to drive sales and increase loyalty. Sales Sales, led by Kevin, mainly concentrates on bicycle dealers. Sales staff needs accurate information and the ability to access it to pursue new business and uncover and take advantage of opportunities with current customers. With insight into which customers are most profitable, they can focus their efforts accordingly. With access to Cronus Dynamics NAV system, they have the information they need, allowing them to work more efficiently and avoid missed opportunities.They keep their customer updated with the latest information and this department also actually performs sales. Microsoft Dynamics NAV offers a complete order processing solution that helps Cronus run order processing more efficiently and effectively. Marketing Marketing, led by Benjamin, mainly concentrates on end users. Marketing team needs accurate information to make smart decisions on creating and managing campaigns, analyzing results, identifying quality leads by quantifying their level of interest, and smoothly transitioning prospects into the sales pipeline. With access to information on demographics, contact history, and profitability of current customers and market segments, Cronus marketing team can create and execute marketing initiatives that will yield strong prospects that can be handed to sales. They continually work on the position of Cronus in the market. Marketing plans must be drafted and continuously adjusted. Inventory & Pricing Microsoft Dynamics NAV effectively balance availability with demand and track items and their possible expiration dates throughout the supply chain to help minimize on-hand inventory, optimize replenishment, and increase warehouse efficiency. It improves customer satisfaction. Make more accurate order promises and intelligent lastminute exceptions with access to up-to-date inventory information. Employees can respond quickly and knowledgably to customer queries for improved customer service. PURCHASE DEPARTMENT Purchase departments provide a service that is the backbone of many manufacturing, retail, military and other industrial organizations. Many individuals, even some who work for these companies, are unaware of what the purchasing department does, why it exists or what purposes it serves. In case of Cronus, purchase department does the following: • • • • • It ensures Shipments and goods received to and from the Blue location are processed by the booking of transfer orders and purchase orders. It comes under main task of logistics department It alsoEnsures that there is sufficient financial elbow room for the purchase of materials, development of new products and prompt payment of wages Under this department the purchaser contracts with select suppliers for long term supplies so that qualities, prices and other issues need not always be negotiated. It not only purchases materials for production, but also buys items which are sold directly by Cronus The above snapshot shows descriptions of various products like Bicycle, Touring Bicycle, Rim, Spokes etc. with their serial numbers, number of units produced, Base unit, Unit cost , Unit Price and Vendor Number. It also provides Item details of invoicing and item details of planning. So with this we can know about various items being purchased and their total cost along with total number of items planning to be purchased with its maximum estimated cost. WAREHOUSE MANAGEMENT SYSTEM A WMS is a software application that supports the day-to-day operations in a warehouse. WMS programs enable centralized management of tasks such as tracking inventory levels and stock locations. WMS systems may be standalone applications or part of an Enterprise Resource Planning system. The objective of a warehouse management system is to provide a set of computerized procedures to handle the receipt of stock and returns into a warehouse facility, model and manage the logical representation of the physical storage facilities (e.g. racking etc.), manage the stock within the facility and enable a seamless link to order processing and logistics management in order to pick, pack and ship product out of the facility. The objective of warehouse management is to help in optimal cost of timely order fulfillment by managing the resources economically. Cronus has warehouses at all the 6 locations namely • • • • • • Blue Yellow Green Red Silver White, At most of the Cronus warehouses, the reception, storage, picking and dispatch of items is recorded separately. In addition, in the warehouse at the White location, goods can also be transferred from socalled bulk locations (with large storage space) to picking locations (where goods can be easily picked for dispatch). The White location is very important within the Cronus’ organization as this location serves as the central warehouse for bicycle parts and trade items other than the normal functions. Other countries are also easily supplied from this well-situated location. MANUFACTURING DEPARTMENT It responds quickly to rapidly changing customer demands. Before design can begin, the marketing department runs a market-needs study (while of course keeping an eye on the developments of competing bicycle manufacturers). The Product Manager, Benjamin, and Product Designer, Emil, then discuss beforehand which requirements the product must meet and what the costs can be. Emil represents the point of view of the Design department. In consultation with the logistics manager (Karl), relevant suppliers and the production manager (Tony), the materials and production processes are determined. Before a product can enter into real production, prototypes are often produced. In addition to the initial design of products, continued development, preparation of documentation and product management are also among the tasks of the design department. Key Benefits:• Take advantage of new revenue opportunities. • Provide more responsive customer service. • Improve business performance from the shop floor to the bottom line. HUMAN RESOURCES Human resources are the set of individuals who make up the workforce of an organization & human resource management (HRM) is the management of an organization's workforce, or human resources. It is responsible for the attraction, selection, training, assessment, & rewarding of employees,. In Cronus International, NAV is used by HRM department for many reasons, some of which are listed below:• • • • • • Maintain list of employees Registration & Approval of employee absences Details of employees like addresses, contact details, qualifications, etc. Causes of employee absences / inactivity Termination details – reasons for termination & other details Employee unions’ details E.g. Snapshot from NAV for employee absence registration:- SERVICE DEPARTMENT Dynamics NAV help the Cronus organize service resources for optimum efficiency, forecast and track parts consumption, proactively manage contracts and service agreements, and gain tighter control over costs. Various functions in Cronus in NAV are:Contract Management • • It is the management of contracts made with customers, vendors or partners. NAV executive can Create Contract Service Order or Invoice Planning & Dispatching • • Based on the transportation requests maintained in NAV optimal shipments are created. Service tasks and Dispatch board can used to know the current status of the order. Order Processing  The process associated with the receiving and documenting of the order/item(s).  Routine work:– View E-mail queue – Service Document and Item log – By above NAV helps to Respond quickly to customer-service and use information to make profitable decisions about the costs, inventories, workloads, and financial returns.