Final Project Report in Industrial Research on “Leveraging benefits of ERP Implementation and challenges faced by Organization.

Submitted to: Prof. A.B.Raju

Submitted by: Harshdeep Singh Dhillon Kashyap Naik Malay Ghelani Nilay Shah Ravi Rajput

We take this opportunity to express our gratitude to those who have performed instrumental role in making our project successful. We extend our sincere thanks to Prof. A.B.Raju, IIPM Ahmedabad, who constantly guided us and consistently encouraged us to execute theories taught in the class to practical project report. In our efforts we would not forget the contribution of our institute IIPM Ahmedabad. We express our deep gratitude to all the members of IIPM Ahmedabad for their valuable support, guidance and encouragement during the preparation of the project. We would never forget to thank the staff and students of IIPM Ahmedabad, without whose support it would not be possible. Also we would like to thank our all of them who allows us to do a Research in their organization, which are Nirmala dye chem., Kalptaru Power, Mesibus, HDFC Life Insurance, Nalanda Hotels.

Benefits of ERP Implementation | IIPM Ahmedabad


Executive Summary
It is very much necessary for a person to give overall ideas about the project before presenting it before the general public to generate their interest that is why we as group members are presenting our overall ideas regarding what we have covered in this project report. In this project, basically, we have covered that kind of information which is so much important for the companies. We have approached some corporate houses to garner the fruitful information for our project and tried to know why company actually wants to introduce the ERP in the company & what problems they tend to face while implementing the system in the company and on other side, what steps they took to solve the problems by convincing all without compromising with quality factor. The most important point in this project you will find is what common problems corporate companies would be facing during the time of implementation. This project will be really helpful directly or indirectly to our group in the future.

Benefits of ERP Implementation | IIPM Ahmedabad


Research Methodology
It is necessary for a group to reach at fruitful result of the project report on which we have basically worked. For that, we required to garner the information regarding the project information. So we have gone through the primary research and secondary data which is already available in the market. Secondary data is that kind of data which is already kept at somewhere across the world and it has been collected for a particular purpose while primary research means we are collecting the information or data through observation, questionnaire etc. this kind of data what you will get which is not available elsewhere except with you. This is the main difference between the primary research and secondary data. In our research work, basically we have gone through taking the Companies in the city who are doing their business through Internet or we can say using ERP. Hereby, we have approached to 25 persons and these were the sample size for us in this project. We asked them some questions as a part of primary research to garner some fruitful information to reach at our main project‟s objective. On the other hand, it was necessary to have a base to make us familiar with the project task so we went through the several reputed companies websites, brochure, articles, magazines which support us in giving a final touch to this project report.

Benefits of ERP Implementation | IIPM Ahmedabad



 

To study about the different ERP modules available

To study about the need of ERP implementation in organization

To understand the challenges faced by companies while implementing ERP

To study about the Pre-implementation and Post-implementation challenges

To study the changes in the working level after implementing ERP

Benefits of ERP Implementation | IIPM Ahmedabad


Table of Content

Sr. No 1 2 3 4 5 6 7 8 9 10 11


Page No. 6 8 9 15 34 36 47 61 63 64 65

Benefits of ERP Implementation | IIPM Ahmedabad


Short for enterprise resource planning, a business management system that integrates all facets of the business, including planning, manufacturing, sales, and marketing. As the ERP methodology has become more popular, software applications have emerged to help business managers implement ERP in business activities such as inventory control, order tracking, customer service, finance and human resources. Enterprise resource planning's true ambition is to integrate all departments and functions across a company onto a single computer system that can serve all those different departments' particular needs. Thus ERP attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments' particular needs. ERP systems are IT systems which are meant to serve all the IT needs of a manufacturing company. ERP stands for "Enterprise Resource Planning". This type of system has evolved from earlier MRP and MRPII systems. MRP stands for "Material Requirements Planning", and is a computer technique for taking a product schedule as input and generating works and purchase orders as output. MRP II was a later development of MRP which arose because MRP needed a set of business processes surrounding it to make it effective. Not all of the business processes needed IT support, but others did, hence MRPII systems supported a wider range of business processes than MRP. The name MRPII came about because the new set of business processes was called "Manufacturing Resource Planning", and because the initials were the same as MRP, the II was tagged on. MRPII systems tended to be so wide in scope that eventually systems developed towards giving IT support to all parts of a manufacturing company. This is when the term ERP came into use to signify its enterprise-wide scope.

Benefits of ERP Implementation | IIPM Ahmedabad


Evolution of ERP
The history of ERP can be traced back to the 1960‟s, when the focus of systems was mainly towards inventory control. Most of the systems software were designed to handle inventory based in traditional inventory concepts. The 1970‟s witnessed a shift of focus towards MRP (Material Requirement Planning). This system helped in translating the master production schedule into requirements for individual units like sub assemblies, components and other raw material planning and procurement. This system was involved mainly in planning the raw material requirements. Then, in 1980‟s came the concept of MRP-II i.e. the Manufacturing Resource Planning which involved optimizing the entire plant production process. Though MRP-II, in the beginning was an extension of MRP to include shop floor and distribution management activities, during later years, MRP-II was further extended to include areas like Finance, Human Resource, Engineering, Project Management etc. This gave birth to ERP (Enterprise Resource Planning) which covered the cross-functional coordination and integration in support of the production process. The ERP as compared to its ancestors included the entire range of a company‟s activities. ERP addresses both system requirements and technology aspects including client/server distributed architecture, RDBMS, object oriented programming etc. Evaluation Criteria 1. Some important points to be kept in mind while evaluating ERP software include 2. Functional fit with the Company‟s business processes. 3. Degree of integration between the various components of the ERP system 4. Flexibility and scalability 5. User friendliness 6. Ease of implementation 7. Ability to support multi-site planning and control 8. Technology - client/server capabilities, database independence, security 9. Availability of regular upgrades

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10. Amount of customization required 11. Local support infrastructure 12. Reputation and sustainability of the ERP vendor 13. Total costs, including cost of license, training, implementation, maintenance, customization and hardware requirements.

Why ERP?
1. To Enhance Profitability: a) Increase in sales b) Reduce Procurement Cost

2. for Healthy Operations: a) Integration of Systems across the Functional Departments in a Company as well as across the Enterprise as a Whole. b) Better Customer Service. c) Introduction of Latest Technologies as and when they are ready for the Industry acceptance d) Expertise database e) Avoids data redundancy

3. Competition in the Market: a) Manufacturing Challenges. b) Manufacturing Globally. c) Distribution network spread. d) New Product introduction. e) Lower manufacturing lead time. f) Focus on industry markets.

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g) Satisfying the needs of customers. h) Develop specific business methods and processes. i) Integration with third party products.

4. Demands on the Industry: a) Better products at lower costs b) Tough competition c) Need to analyze costs / revenues on a product or customer basis d) Flexibility to respond to changing business requirements e) More informed management decision making

5. Solving the Problems: a) Unable to get accurate, timely information b) Applications not complete for existing business practices c) Modifications are time consuming or not feasible

Solving these Problems will the company ahead of competition! The advantages of ERP
Installing an ERP system has many advantages -both direct and indirect. The direct advantages include improved efficiency, information integration for better decision making, faster response time to customer queries, etc. The indirect benefits include better corporate image, improved customer goodwill, customer satisfaction, and so on.

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The following are some of the direct benefits of an ERP system: 1. Business Integration 2. Flexibility 3. Better Analysis and Planning Capabilities 4. Use of Latest Technology.

1. Business Integration: The first and most important advantage lies in the promotion of integration. The reason why ERP packages are considered to the integrated, is the automatic data updating (automatic data exchange among applications) that is possible among the related business components. Since conventional company information systems were aimed at the optimization of independent business functions in business units, almost all were weak in terms of the communication and integration of information that transcended the different business functions. In the case of large companies in particular, the timing of system construction and directives differs for each product and department/ function and sometimes, they are disconnected. For this reason, it has become an obstacle in the shift to new product and business classification. In the case of ERP packages, the data of related business functions is also automatically updated at the time a transaction occurs. For this reason, one is able to grasp business details in real time, and carry out various types of management decisions in a timely manner, based on that information.

2. Flexibility: The second advantage of the ERP packages is their flexibility. Different languages, currencies, accounting standards and so on can be covered in one system, and functions that comprehensively manage multiple locations of a company can be packaged and implemented automatically. To cope with company globalization and system unification, this flexibility is essential and one can say that it has major advantages, not simply for development and maintenance, but also in terms of management.

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3. Better Analysis and planning Capabilities: Yet another advantage is the boost to the planning functions. By enabling the comprehensive and unified management of related business and its data, it becomes possible to fully utilize many types of decision support systems and simulation functions. Furthermore, since it becomes possible to carry out, flexible and in real time, the filing and analysis of data from a variety of dimensions, one is able to give the decision-makers the information they want; thus enabling them to make better and informed decisions.

4. Use of Latest Technology: the fourth advantage is the utilization of the latest development in information Technology (IT). The ERP vendors were quick to realize that in order to grow and to sustain that growth; they had to embrace the latest developments in the field of information technology. Therefore, they quickly adapted their systems to take advantage of the latest technologies like open systems, client/ server technology, Internet/Intranet, CALS (ComputerAided Acquisition and Logistics Support), electronic-commerce, etc. It is this quick adaptation to the latest changes in the Information Technology that makes the flexible adaptation to changes in future business environments possible. It is this flexibility that makes the incorporation of the latest technology possible during system customization, maintenance and expansion phases.

What is that ERP enables? a) Systematic Look into your Systems & procedures b) Optimizing the processes c) Enables you to adapt yourself to new technologies d) Discipline across the functions

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Problems Taken Care of by the ERP: a) Availability check at the time of Accepting Sales order b) On-line Material Status & Shortages c) Productivity Enhancements d) Material Planning e) Customer Service f) Cash Management g) Inventory h) Quality

What drives ERP?  Business drives a) Customer Satisfaction b) Business Development - new areas, products, services c) Ability to face competition d) Efficient processes required to push the company to top gear  IT drives a) Present Software does not meet business needs b) Legacy systems difficult to maintain c) Obsolete hardware/software difficult to maintain

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The market for ERP however does not sound so depressing. Companies still have growth avenues which include: Less penetrated modules within the ERP suite, both horizontal and vertical. The new horizontal areas include E-commerce, Customer relationship management, Supply chain management, plant maintenance, field service, data warehousing, product data management, service contract management, warehousing & distribution, transportation management etc. Among the vertical application are industries such as retail, utilities, insurance, and government organizations. The mid market segment presents immense opportunities. However, the margins from SMEs will be far below that from the larger players. Another problem that the SMEs present is the low transaction (order) size and the difficulty of reaching out to these players. Also they are relatively less sophisticated on the technology side. Another major demand driver will be the e-commerce wave. As more and more company move towards e-commerce it becomes necessary to implement ERP solutions.

Inhibitors or hurdles for the growth of ERP market:
After posting significant gains for 3-4 years the ERP market may be heading towards a slowdown. Except for SAP most other players have witnessed a slowdown in revenue growth. The main constraints to growth for the sector can be classified as: a) Saturation of the certain horizontal applications including Finance and accounting, MRP etc which accounted for nearly 45% of the ERP revenues during 1998. b) Saturation of large customers. Most of the Fortune 500 companies and companies having revenues over $1bn have already implemented ERP. c) Though the medium enterprises provide a good opportunity for growth, pricing for these companies will have to be highly competitive and margins may come under pressure. Thus smaller players who have a cost advantage will have an edge over the others.
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ERP in India
Until recently Indian organizations were in a seller‟s market and operating in a regulated environment. They grew by managing the environment, rather than innovating and improving internal efficiencies. The customer was taken for granted and quality was available only at a premium. With globalization and gradual lifting of regulation, there is a paradigm shift in running the business. Indian companies now need to increase customer focus, improve speed of delivery, be cost competitive and provide value for money (improved quality at lower price). Indian companies therefore need to implement ERP systems for improving their business processes and becoming more competitive in the global environment. Though ERP implementation is costly and time consuming, it has several benefits which will help recover these costs in the long run. According to NASSCOM, during the year 1998-99, the Indian ERP market has been estimated at R5200mn compared to Rs2800mn in the previous year i.e. a growth of 85%yoy. The growth in the export market was far higher and more than doubled during the same time period. According to the NASSCOM, by the end of FY2001-02, the total Indian ERP market is expected to multiply by nearly 4 times and reach Rs65bn compared to Rs13.4bn in 1998-99.

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ERP Modules

ERP Modules

Figure 12.1


ERP’s Central Database
Finance & Accounting

Sales & Marketing

ERP Data Repository

Production & Materials Management

Human Resources

Figure 12.2

All ERP packages contain many modules. The number and features of the modules vary with the ERP packages. Some of the most common modules available in almost all packages are: 1. Finance 2. Plant Maintenance 3. Quality Management 4. Material Management, etc

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5. Inventory Management 6. Manufacturing and production planning 7. Sales and distribution

Some packages will have a subset of this and some will have more modules and / or features.

1. FINANCEMODULE: The entire concept of information technology is based on the premise that providing the right information, to the right people, at the right time can make a critical difference to the organization. Much of this key information could be taken from the financial data. But merely having the financial data is not enough. You need a set of processes and views of your data that provided up-to-the minute financial information in exactly the form you need it to make that critical difference and help with that critical decision. Accounting software needs access to information in each area of organization, from R&D and market research through manufacturing, distribution and sales. Financial solution must provide the management with information that can be leveraged for strategic decisions, in order to achieve comprehensive advantage. This section provides an overview of the financial solutions in most the ERP packages. In today‟s business enterprise, you need to know that your financial decisions are based on today‟s data, not numbers from records closed a month ago, or even a week ago.

And you need to know that this same „today‟s‟ data represents every segment of your organization's activities, whether your enterprise stretches across a room or around the globe. This is essential, because the most efficient way to get our enterprise to where you want it tomorrow is to know exactly where it is today.
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Whatever be the financial goals of the organization, the financial application components of the ERP solutions work hand-in-hand to improve the bottom line. This is true because the financial functioning is tightly integrated across all business areas and all geographic areas. This tight integration includes all the other different modules, from materials management to human recourses to logistics. The Finance modules of the most ERP systems provide financial functionality and analysis support to thousands of businesses in many countries across the globe. These ERP systems include not only financial application components, but also Human resources, Logistics, Business workflow and links to the internet.

The finance modules of most ERP systems will have the following subsystems: 1. Financial Accounting:
a. General Ledger b. Accounts Receivable/payable c. Special Ledgers, Fixed Asset Accounting d. Legal Consolidation.

2. Investment Management:
a. Investment Planning b. Budgeting c. Controlling d. Depreciation Forecast e. Simulation f. Calculation.

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3. Controlling
a) Overhead Cost Controlling. b) Activity- Based Costing c) Product Cost Accounting d) Profitability Analysis.

4. Treasury Module

A. Financial Accounting: The objective of a good financial accounting system is to provide companywide control and integration of financial information that is essential to strategic decision –making. The financial accounting module of an ERP system, gives you the ability to centrally track financial accounting data within an international frame work of multiple companies, languages, currencies and charts of accounts. a. General ledger The General ledger (GL) is essential both to the financial accounting system and to strategic decision-making. Through active integration with business processes in logistics and in the accounting sub-ledgers, the GL serves as a central pool of financial data for financial reporting as well as for other accounting areas The general ledger supports all the function needed in a financial accounting system. b. Accounts receivable and payable: ERP system offer a financial overviews of global business partner relationships in the Accounts, Receivable and Payable functions .these sub-ledgers are integrated ,both with the general ledger with the areas in sales and distribution and Materials Management, where financial data originates.

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Accounts Receivable and payable transactions are performed automatically when related processes take place in other modules. c. Special Ledgers, Fixed Asset Accounting Asset Accounting, managers the company‟s fixed assets. Within the Financial Accounting system, Asset Accounting serves as a sub-ledger to the General Ledger, providing detailed information on asset- related transactions. d. Legal Consolidation Consolidated financial statements need to be integrated effectively with operational data ay the individual company level. By using different valuation methods, you can plan balance sheet strategies to suit the company‟s requirements.

B. Investment Management
Investment Management provides extensive support for investment processes right from planning through settlement. Investment management facilitates investment planning and budgeting at a level higher than that needed for specific orders or projects. You can define an investment program hierarchy using any criteria-for example, department-wise. Investment program allows you to distribute budgets, which are used during the capital spending process. The system helps you monitor, and thereby avoid, budget overruns. Investment Management provides tools, enabling you to plan and manage your capital spending projects right from the earliest stage. Investment Management module recognizes the importance of the asset accounting aspects of investment measures. The system automatically separates costs requiring capitalization from costs that are not capitalized, debiting the correct costs to the asset under construction. Asset accounting provides precise proof of origin for all transactions affecting acquisition and production costs.

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C. Controlling
The controlling system gathers the functions required for effective internal cost accounting. It offers a versatile information system, with standard reports and analysis paths for the most common questions. In addition, there are features for creating custom reports to supplement standard reports. a. Overhead Cost Controlling Many organizations experience a significant increase in the percentage of indirect costs, which cannot be directly assigned to either the products manufactured, or to the services rendered. The Overhead Cost Controlling subsystem focuses on the monitoring and allocation of overheads. b. Cost Centre Accounting Cost centre accounting analyses where overheads occur within the organization. Costs are assigned to the sub-areas of the organization where they originated. They system offers a wide variety of methods for allocating posted amounts and qualities. c. Overhead Orders Overhead orders subsystem collects and analyses costs, based on individual internal measures. This system can monitor and automatically check budgets assigned to each measure.

d. Activity- Based Costing The goals of the entire organization should come before the goals of individual departments, when it comes to business process reengineering. The Activity- Based Costing module is a response to the growing need for monitoring and controlling cross-department business process, in addition to functions and products.

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e. Product Cost Controlling Product Cost controlling module determines, the costs arising from manufacturing a product, or providing a service. Plan and standard values, serves in valuating warehouse stock and for contrasting revenues received with costs. In addition, the values in product Cost Controlling are crucial for determining the lowest price limit for which a product is profitable.

f. Cost Object Controlling It helps to monitor manufacturing orders. Integration with the logistics components results in a logistical quantity flow that provides instant information on actual cost object costs, allowing ongoing costing calculations at any time.

g. Profitability Analysis It examines the sources of returns. As part of sales controlling. Profitability Analysis is the last step in cost-based settlement, where revenues are assigned to costs according to the market segment. This subsystem can help defining any market segment-distinguishing, for example between products, customers, orders, sales organizations, distribution channels and business areas- and evaluate it, according to contribution and revenue margins.

D. Treasury Module Company can gain significant competitive advantage by efficiently managing the short, medium, and long-term payment flows and the resulting risk exposure. Tasks such as short-term monitoring and concentration of bank account balances, medium-term planning, and forecasting of incoming and outgoing resources in accounts receivable and payable, to a long-term view of areas such as materials management and sales, underline the importance of integrating information from various company divisions.
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Linking these operating divisions to realized and planned financial transactions and positions in Treasury, has a significant impact on the company‟s success. Such integration also facilitates management and control of cash flows, and risk positions through all the divisions in the company. The treasury components provide you with a basis for effective liquidity, portfolio and risk management. a. Cash Management The Cash Management subsystem allows yo9u to analyze financial transactions for a given period. Cash Management also identifies, and records future developments for the purpose of financial budgeting. The company‟s payment transactions are grouped into cash holdings, cash inflows and cash outflows. The Cash Management provides information on the sources and uses of funds to secure liquidity in order to meet payment obligations when they become due. The Cash Management also monitors and controls incoming and outgoing payment flows, and supplies the data required for managing short term money market investments and borrowing. Depending on the time period under review, a distinction is made between cash position, short-term cash management and medium and long-term financial budgeting.

b. Treasury Management Treasury Management component offers functions for managing financial deals and positions, from trading to transferring data to Financial Accounting. Treasury Management also supports flexible reporting and evaluation structures for analyzing financial deals, positions and portfolios. For short-term liquidity and risk management, you can use the money market, or to eliminate currency risks.

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By using common organizational elements throughout, various organizational structures can be represented in the system, such as a central enterprise-wide treasure department or „inhouse banks‟. This also ensures full integration of Treasury into other modules of the system.

c. Market Risk Management Market Risk Management plays vital role within Treasury, in ensuring company‟s competitiveness. Market Risk Management involves a complex feedback loop encompassing data collection, risk management, analysis and simulation as well as active planning of financial instruments. Market Risk Management acts as an integrated central risk control station with monitoring and management functions.

Access to information on current and future cash flows and on financial deals already processed, is an absolute must. As a result, Cash management, which pools all cash flows from the business sectors, such as sales and distribution or purchasing, forms the basis. Consequently, all cash flows from the company‟s operating business can be accessed for the purposes of risk management. Furthermore, all financial transactions managed in Treasury management can be evaluated together with the cash flows generated by the various operating divisions.

The Market Risk Management component provides various measurements for analyzing and assessing interest rate and currency risks. Market-to-market, effective rate and effective yield calculations are based on up-to-the minute market data, uploaded via data feed, and financial transactions or position.

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d. Funds Management Funds Management system enables you to control various funds commitments and determine how much of the budget has already been utilized via availability checking. The information system can supply with information at any time, on when, where, and how funds commitments arose. Analyses by responsibility area and commitment items allow identifying any budget bottlenecks. e. Enterprise Controlling Enterprise Controlling comprises of those functions that will optimize shareholder value, while meeting internal objectives for growth and investment. This module usually includes executive Information System, Business planning and Budgeting, Consolidation, and profit Centre Accounting. f. Executive Information System The Executive Information System provides an overview of the critical information necessary to manage the organization. This component integrates data from other ERP components, and non-ERP data sources both inside and outside the enterprise. Business planning and budgeting. Business planning and budgeting supports the management teams of business units and groups in the calculations of business targets, such as ROI. This module also supports central investment planning, budget release and tracking. g. Profit Centre Accounting Profit Centre Accounting analyses the profitability of internal responsibility centers. A company‟s organizational structure is represented in the form of a profit centre hierarchy, with the profit centre as the smallest unit of responsibility. All business transactions in financial accounting, Material Management, Asset Management, and Sales and Distribution, which affects profits, are automatically reflected in profit Centre Accounting

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2. Plant Maintenance Module
The achievement of world class performance demands delivery of quality products expeditiously and economically. Organizations simply cannot achieve excellence with unreliable equipment. The attitude towards maintenance management has changed as a result of quick response manufacturing, Just-in-time reduction of work in process inventory and the elimination of wasteful manufacturing practices. Machine breakdown and idle time for repair was once an accepted practice. Times have changed. Today when a machine breaks down, it can shut down the production line and the customer‟s entire plant. The preventive Maintenance module provides an integrated solution for supporting the operational needs of an enterprise-wide system. The plant Maintenance module includes an entire family of products covering all aspects of plant/equipment maintenance and becomes integral to the achievement of process improvement. The major subsystems of a plant Maintenance module are: a) Preventive Maintenance Control b) Equipment Tracking c) Component Tracking d) Plant Maintenance Calibration Tracking e) Plant Maintenance Warranty Claims Tracking

a. Preventive Maintenance Control Preventive Maintenance Control provides planning, scheduling and control of facilities and equipment. Equipment lubrication, components replacement and safety inspection can be planned schedule, and monitored. Maintenance tasks can be tracked for each machine, or piece of equipment, by two user defined modes, as well as calendar day frequency. These modes could include tracking by hours of operation, units of production produced, gallons of fuel consumed, or the number of days in operation since the last service interval.

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Preventive Maintenance Control enables organizations to lower repair costs by avoiding downtime, machine breakage and process variability. Companies achieve higher machine utilization and improved machine reliability and tolerance control, along with higher production yields.

b. Equipment Tracking Equipment is an asset that needs to be monitored and protected. In many situations, equipment maintenance costs constitute the single largest controllable expenditure of an organization. All facets of plant location history and utilization history are described and tracked. This history includes acquisition and disposition information and associations between different pieces of equipment to pinpoint operational dependencies. Running totals for operational units to date 9miles, hours, days, units of production, etc) are also provided. Each piece of equipment is defined by a model and serial number. User-defined data sheets can be developed which allow for the grouping of user data into formats that can be linked to equipment specifications, which provide detailed information for technical specialists working in equipment operations, maintenance and transportation control.

c. Component Tracking Components are, typically, subsets of larger equipment and deserve the same amount of cost controlling scrutiny. Component tracking enables equipment managers to identify components with chronic repair problems. They can determine whether a repair or replacement should be covered by warranty.

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Planning components replacements, rather than waiting for components failure to occur, reduce unscheduled equipment downtime. Components tracking include repair/exchange history and components service life.

d. Plant Maintenance Calibration Tracking: Plant Maintenance Calibration Tracking allows organizations to leverage their investment in the plant Maintenance module by providing for the tracking of equipment calibration in support of ISO9000 requirements. e. Plant Maintenance Warranty Claims Tracking Plant Maintenance Warranty Claims Tracking is an administrative system designed to provide control of all items covered by manufacturer and vendor warranties. It enables plant management to recover all of the warranty, reimbursements to which they are entitled but have not been able to recover in the past. Features include the ability to establish the type and length of warranty, for example, elapsed day, months, mileage stipulation, or operating units. A complete history is performed for each item covered by the warranty, and complete information regarding the warranty service provider is generated.

3. Quality Management Module
The ISO9000 series of standards defines the functions of quality management and the elements of a quality management system. The functions in the Quality Management module support the essential elements of such a system. The other integrated modules in the system complement this functionality. The ISO standards require that quality management systems penetrate all processes within an organization. The task priorities, according to the quality loop, shift form production (implementation phase) to production planning and product development (planning phase) to procurement and sales and distribution, as well as into the entire usage phase.

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Computer-integrated Quality Management (CIQ) is more appropriate term in comparison to Computer-Aided Quality Management (CAQ), because an isolated CAQ system cannot carry out the comprehensive tasks of a quality management system. The ERP system takes this into consideration by integrating the quality management functions into the affected applications themselves (for example, procurement, warehouse, warehouse management, production and sales/distribution), instead of delegating them to isolated CAQ systems.As a result of this approach, the processes described in the quality manual can be implemented and automated in the electronic data processing (EDP) system. As a part of the Logistics applications, the Quality Management module handles the traditional tasks of: 1. Quality planning 2. Quality inspection 3. Quality Control. For example, it supports quality management in procurement, product verification, quality documentation and in the processing of problems. The quality Management module‟s internal functions do not directly interact with the data or processes of other modules.

Quality Management Module-Functions
The quality Management module fulfills the following functions: 1. Quality planning (Management of basic data for quality planning and inspection planning, Material specifications, Inspection planning). 2. Quality Inspection ( Trigger inspections, Inspection processing with inspection plan selection and sample calculation, print shop papers for sampling and inspection, Record results and defects, Make the usage decision and trigger follow-up actions).

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3. Quality Control: (Dynamic sample determination on the basis of the quality level history, Application of statistical process control techniques using quality control charts. Quality scores for inspection lots, Quality notifications for processing internal or external problems and initiating corrective action to correct the problems, Inspection lot processing and problem processing, Quality Management Information system for inspections and inspection results and quality notifications).

Computer-integrated Quality Management (CIQ)
The integration of Quality Management in the ERP systems considerable advantages because only an integrated system can support all the elements of a quality management system, according to ISO 9000. The integration allows the quality management functions to influence all processes within a company, thereby affecting all phases of a product‟s life cycle. The Quality Management module uses the system‟s integration to link the tasks of quality management with those of the other applications, such as materials management, production, sales/distribution and cost accounting. An inspection that is triggered automatically upon goods receipt is an example of this.

The Quality Management module is integrated with the master data and processes of the following applications:
1. Materials management (purchasing, inventory management,

warehouse management, material requirements planning). 2. Production ( work scheduling, shop floor control) 3. sales and distribution ( delivery, creation of quality certificates)

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4. Materials Management Module:
The Material Management module optimizes all purchasing processes with workflow-driven processing functions, enables automated supplier evaluations, lower procurement and warehousing costs with accurate inventory and warehouse management and integrates invoice verification. The main modules of the Material Management module are: 1. Pre-purchasing Activities 2. Purchasing 3. Vendor Evaluation 4. Inventory Management 5. Invoice Verification and Material Inspection.

Pre-purchasing Activities
This system supports the complete cycle of bid invitation, award of contract and acceptance of services. The pre-purchasing activities include maintaining a service master database, in which the descriptions of all services that are to be procured can be stored. The system also keeps a separate set of service specifications that can be created for each concrete procurement project or proposed procurement in the purchasing document. Sets of service specifications may include both items with services and items with materials. When creating such specifications, the user does not have to list individual services manually. Instead, the data is simply copied from the master data. Use of this technique means that data only has to be entered once. The manual entry effort is reduced to a minimum. There are two ways of entering service specifications-planned and unplanned. Planned service specifications mean that service whose precise nature and intended scope are already known at the beginning of a procurement project.

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Purchasing is a very important component of the Material Management module. The Material Management module is fully integrated with other modules in the system. It supports all phases of material management: materials planning and control, purchasing, goods receiving, inventory management and invoice verification. Good communication between all participants in the procurement process is necessary for purchasing to function smoothly. Purchasing communicates with other modules in the system to ensure a constant flow of information.

For example, it works side by side with the following modules:
1. Cost Accounting System: Orders for materials and services consumed directly illustrate the interface to the cost accounting system. This is because they can be assigned to a cost centre directly. 2. Financial Accounting: Purchasing and Accounting both maintain information on vendors. Information on each vendor is stored in a vendor master record which contains both accounting and purchasing information. 3. Sales and Distribution: Within the framework of material requirements planning (MRP), customer requirements from Sales can be passed on to purchasing. In addition, when creating a requisition, you can assign it to a sales order. Purchasing system performs tasks like procurement of materials and services, determination of possible sources of supply for a requirement identified by the materials planning and control system or arising directly with in a user department, monitoring of deliveries and payments to vendors, and so on. 4. Vendor Evaluation The vendor evaluation component has been completely integrated into the Material Management module. Information such as delivery dates, prices and quantities can be taken from purchase orders. Vendor Evaluation also uses data from Quality Management, such as the results of incoming inspections or quality audits. It also assesses basic data in Materials Management, such as goods receipt data from Inventory Management. In the case of procurement of materials, the system helps you select sources of supply
Benefits of ERP Implementation | IIPM Ahmedabad 31

and facilitates the continual monitoring of exiting supply relationships. It provides you with accurate information on prices, and terms of payment and delivery. By evaluating vendors, you can improve your enterprise‟s competitiveness. You can quickly determine and resolve any procurement problems that may arise on the basis of detailed information and in collaboration with the relevant vendors. In the case of procurement of services, you can check the reliability of the vendors from which you procure services on a plant by plant basis. You can determine whether the vendors perform the services within the specified timeframes and appraise the quality of the work carried out. 5. Inventory Management Inventory Management system allows you to manage your stocks on a quantity and value basis, plan, enter and check any goods movements and carry out physical inventory. In the Inventory Management system, the physical stocks reflect all transactions resulting in a change in stock and thus, in updated inventory levels.The user can easily obtain an overview of the current stocks of any given material. For each material, not only are the stocks in the warehouse shown, but also the stocks ordered but not yet delivered, reserved for production or for a customer, and the stocks in quantity inspection can be monitored.

The stocks are managed not only on a quantity basis but also by value- a prerequisite for cost accounting. With every goods movement, the following values are updated: 1. Stock value for inventory management 2. Account assignment for cost accounting Both the quantity and the value are updated automatically when entering a goods movement. Most Inventory Management systems support inventory methods like periodic inventory, Continuous Inventory, Inventory sampling and Cycle counting.

Benefits of ERP Implementation | IIPM Ahmedabad


Invoice Verification and Material Inspection. Invoice Verification component is part of the Material Management system. It provides the link between the material Management components and the Financial Accounting, Controlling and Asset Accounting components. Invoice Verification in Material Management serves the following purposes: 1. It completes the material procurement process-which starts with the purchase requisition, continues with purchasing and goods receipt and ends with the invoice receipt. 2. It allows invoices that do not originate in materials procurement (for example, services, expenses, courses, course costs, etc.) to be processed. 3. It allows credit memos to be processed, either as invoice cancellations or discounts. Invoice verification does not handle the payment or the analysis of invoices. The information required for these processes is passed on to other departments. Each invoice contains various items of information. To post an invoice, you must enter this information into the system. If an invoice refers to an existing transaction, certain items of information will already be available in the system. The system proposes this information as default data so that you only need to compare it and, if necessary, correct any possible variances. If an invoice refers to a purchase order, for example, you only need to enter the number

Market players and profiles
While 52% of the total market is accounted for by the unorganized and small players the rest is accounted for by around 10 major players. SAP contributes 17% of the total revenues followed by People Soft, Oracle, Baan and SAP SAP pioneered Enterprise Resource Planning. The company‟s R/3 System, a family of integrated components such as Production, Sales and Distribution, Controlling and Human Resources can be
Benefits of ERP Implementation | IIPM Ahmedabad 33

J D Edwards.

used as a whole or individually. R/3 is also internet-compatible and can be easily combined with other types of software or customers‟ own systems. Probably the only leader, SAP, according to AMR has a market share of 33% which is higher compared to the next 4 competitors put together. The company has more than 19,300 employees worldwide. The company‟s R/3 system is in use in more than 107 countries.

The ERP market
During the last 3-4 years the ERP market witnessed considerable growth rates driven mainly by the Y2K crisis. ERP companies including SAP, PeopleSoft, Oracle and Baan etc have recorded consistent growth in revenues, which were well above the 20% mark. However, recent trends in the industry indicate a slowdown in the traditional ERP market. The slowdown has been attributed to the Y2K crisis, which is round the corner and the stagnant world economy. Growth rates which were as high as 40% per annum is expected to slow down considerably to around 15-20%. However, the market is also witnessing new avenues like the emergence of SMEs (Small and Medium Enterprises – turnover of $50mn to $500mn) as a major ERP spender with significant demand for module specific implementation. As the Fortune 500 market for product license revenue becomes saturated, larger ERP firms are shifting their focus to the middle market. Also, other areas like Supply Chain Management (SCM), Customer Relationship Management (CRM), extended ERP and Web enabled ERP are catching attention. During the year 1998 the total ERP market is estimated to be around $17.5bn by IDC a growth rate of around 26%yoy.

Benefits of ERP Implementation | IIPM Ahmedabad


The ERP market is widely spread with the top ten players accounting for almost 48% of the total market the rest of the market is accounted for by the small and regional players. However, the top end of the market is captured by a few players. SAP, the market leader, accounts for 17% of the total market (1998). Other major players include Baan, Oracle, and PeopleSoft.

Now for showing the primary research which was carried out by our group we would like to firstly like to take names of all the companies which helped us a lot during this project, so now firstly let us start critical analysis of the companies which we surveyed. There is a designed format in which we will analyze the whole company.

Benefits of ERP Implementation | IIPM Ahmedabad


Company Analysis

Benefits of ERP Implementation | IIPM Ahmedabad


To analyze the companies first 2 parts would be in sequence in this chapter & the remaining 2 would be in conclusions & recommendations respectively. 1st Part: Need identification 2nd part: Pre implementing Steps

. HDFC Standard Life Insurance Company Limited. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited), India's leading housing finance institution and a Group Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others.
Reason of implementing ERP? Needs of the technology.

Recognizing the market challenges and the importance of service standards in the Indian life insurance industry, HDFC Standard Life has been engaging technology as a key component in standardizing and automating its core business processes. The SAP deployment is expected to improve data accuracy and eliminate manual processes, giving business executives in-built business intelligence to aid decisions. This is what the HDFC had to say when they were basically asked that what made them think to implement ERP in the company; here the main thing which can be identified is that the company basically was facing some errors in the manual entry so they basically wanted to automate the things.

Benefits of ERP Implementation | IIPM Ahmedabad


Selection of the ERP supplier.

HDFC Standard Life, a private life insurance company, has selected SAP as its technology partner to enhance its customer centricity and set new benchmarks in service standards. The enterprise-wide deployment of SAP solutions will integrate the company‟s internal business functions including finance, operations, incentive and compensation management, HR activities. .

"Technology is a critical enabler in fuelling our business priorities. We, at HDFC Standard Life, are proud to be associated with SAP and believe that SAP will help us facilitate better understanding of our customers apart from enhancing our delivery capabilities, running more profitably and productively," said Paresh Parasnis, principal officer and executive director, HDFC Standard Life. HDFC Standard Life especially chose SAP because it fit the criterion of a highly-scalable solution that will meet their current and future needs. Right from core business processes to distribution channel management and CRM, the SAP platform provides an integrated solution that enables a single view of business data across the organization.
Pre Implementation Process.

The company was having one of the biggest challenge which was that they wanted all the employees to put all the data entry in place of manual , so what the company started with is at first they had started training their employees for the particular thing, and during that training there is one very unique thing about the organization which is that they have a central team for training which means that the trainers generally are in house so the training which is given to the candidates is generally successful. The time taken while implementing was long as they wanted a universal model throughout the country so there were many places where there were hurdles which the company had faced.

Benefits of ERP Implementation | IIPM Ahmedabad


Kalpataru Power Transmission Limited is one of the leading companies in the field of Turnkey projects for EHV Transmission Lines up to and including 800 KV in India and Overseas. As an EPC contractor, our scope of work includes design, testing, fabrication, galvanizing of towers and construction activities from survey, civil works/ foundation, erection to stringing and commissioning of EHV lines, besides procurement of items such as conductors, insulators, hardware accessories etc. Located at Gandhinagar Gujarat, in Western India, Kalpataru Power Transmission is a public listed company with a turnover of USD 385 Million (Rs. 19.1 Billion) and annual production of 80,000 MTs till 2007-08.The company has a net worth of over USD 200 Million and an order booking of over Rs 50 Billion (USD 1Billion). The company has also attained distinction of crossing the USD 800 Million (Rs. 40 Billion) market capitalization. On a combined basis (with JMC Projects), the consolidated turnover has crossed Rs 32.8 Billion (USD 655 Million). Kalpataru Power has two large Fabrication Plants with an annual installed capacity of 108,000 MTs (with a capacity addition of 24,000 MTs in Oct, 2008) one of the largest in the world and is equipped with modern machineries (including 16 CNC machines) and automated temperature controlled Galvanizing Baths, besides its own state-of-the-art Testing Station and R & D Centre. It was the first company in 1994 in the Indian transmission industry to be ISO 9001 certified.
Reason of implementing ERP? Needs of the technology.

Recognizing the market challenges and the importance of service standards in the Indian life insurance industry, KALAPATRU POWER TRANSMISSION LTD. has been engaging technology as a key component in standardizing and automating its core business processes.
Benefits of ERP Implementation | IIPM Ahmedabad 39

The SAP deployment is expected to improve data accuracy and eliminate manual processes, giving business executives in-built business intelligence to aid decisions. This is what the KALAPATRU POWER TRANSMISSION LTD. had to say when they were basically asked that what made them think to implement ERP in the company; here the main thing which can be identified is that the company basically was facing some errors in the manual entry so they basically wanted to automate the things.
Selection of the ERP supplier.

The company had proudly selected SAP as the supplier of the erp for them. The company also has to say that who in this world know erp better than sap so that became one of the reasons of selection and also indicates that how successful the brand SAP has become. The company after making the decision of the supplier they selected the implementer for the erp sand implementer was IBM India. This indeed was a very highly professional implementer.
Pre Implementation Process.

The company had arranged for learning changes to the employees, they had planned a schedule of learning in which they had selected some of the key people form the company and had send to the learning center of the company itself in which there was a training team which had come from the implementing partners IBM so this was the main process how they got trained mainly. the company had also faced many of the challenges during this training also as the trainers who had came from the implementing partner they were mainly not from the local area of the company , so the result to this particular thing the main thing that happened was the intellectual clashes which took place between the trainers and also the employees.

Benefits of ERP Implementation | IIPM Ahmedabad


Masibus was established in 1975 to manufacture process control instruments in India. Since its inception, Masibus has evolved into a high technology organization with core competencies in process control instrumentation, automation, systems integration & asset management technology. For over three decades Masibus has scaled unprecedented heights in the design, development & manufacture of microprocessor based instrumentation products and automation solutions. Masibus‟Products, Projects & Condition Monitoring Divisions offer a wide variety of products & customized solutions to its 5000 plus customers, in numerous vertical segments. With 9 branch offices in India, an international office in Sharjah, along with a host of Dealers & System Integrators, three manufacturing facilities in India produce a complete range of process instrumentation & turnkey automation solutions, which include Calibrators, Indicators, Controllers, Scanners, Remote Terminal Units, Signal Isolators/Converters, Power Meters & Transducers, I/O Modules, HMI/SCADA software products, customized OEM products as well as Control Panels. Masibus‟ Projects Division offers complete systems solutions for several vertical segments like oil & gas, water treatment, steel, pharmaceuticals, fertilizers, chemicals, power, cement, paper, etc. Masibus‟ Condition Monitoring Division offers products and services in Vibration Monitoring & Infrared Thermography. It also offers on-line turnkey asset management solutions.

Masibus has tied up with many internationally reputed instrumentation & automation companies like Toshiba – Japan, Qualitrol – Hathaway, U.K., Martel Beta Calibrators - USA, Vatron – Austria, Citect - Australia, Setra – USA, Lord Corporation– USA, CTC – USA, Williamson – USA, FLIR – Sweden, Mox – Australia, Shinko – Japan, Inor – Sweden, to name a few.

Benefits of ERP Implementation | IIPM Ahmedabad


Customer care is the underlying theme of the organizational culture. All employees understand that total customer satisfaction is the key to continued success in a highly competitive industry.

Committed to ethical dealings with all its stake holders, Masibus is a value-based organization that makes a conscious effort to care for the environment with its offerings, to enhance the lot of students by offering traineeships & to delight its customers with cost effective solutions & value for money.
Reason of implementing ERP? Needs of the technology.

“One immediate outgrowth of this new synergistic pairing will be our aggressive expansion into the small and medium enterprise market which, according to conservative estimates, is a Rs 800-crore segment,” said Mr Subramaniam. He expressed optimism that his company would be able to corner a substantial chunk of this market which is still largely untapped. When the company was thinking to expand its business and also there was a need of automation in the company which generally forced them to take a decision for the implementing of ERP.
Selection of the ERP supplier.

The Gandhinagar-based Rs 10 crore Masibus India, an end-to-end enterprise business solutions provider, has entered into a strategic reseller and solution implementation partnership with the Danish software firm Navision to offer enterprise resource planning (ERP) solutions to small and medium enterprises. To begin with, Masibus plans to do business worth around Rs 1 crore in the first financial year of the partnership whereby the company would largely target its own basket of existing customers. Incidentally, Masibus is largely a global process automation and software service provider which helps companies implement intelligent solutions which solve business and operational issues. The company‟s services aim to meet the unique requirements of companies for process automation, security applications and offshore development. Its clients include Ranbaxy and McDonald‟s and the company is currently negotiating with the Anand-based National Dairy Development Board too.

Benefits of ERP Implementation | IIPM Ahmedabad


Established in 1975, Masibus has 10 offices countrywide and strategic partners in the US and Singapore and has 125 employees. Interestingly, Masibus has the distinction of having developed a unique software programme for the federal authorities in Florida to help track down the over $1 million worth of laptops stolen in the US annually. The software won the second best prize in Florida last year, Mr Subramaniam revealed. Meanwhile, its new strategic partner Navision is a leading global provider of cost effective and adaptable integrated business solutions and has a client list of over 1.33 lakh customers worldwide, a global network of more than 2,258 partners and 1,130 employees in over 30 countries. The second stage which came was the selection of the implementing partner so the company had then decided to take the official selling agents of the software which was INTECH providers which is located in the city only, the company also had ensured the implementing partner that the whole software has to be modified like anything so that in the end there is no problem for the employees. The benefit which the company was able to gain was that the implementing partner was the part of the city so they could easily adopt the change.
Pre Implementation Process.

This was the three days program me by which the company had started for all the employees who were the key users for the system.

Benefits of ERP Implementation | IIPM Ahmedabad


Nalanda, A name out of the glorious past, is carrying with it a timeless legacy of tradition hospitality and fine living. Not to mention a heritage of class and culture. Where the soothing touch of pink pastels calms your tired nerves and romance is in the air, right from that moment you walk in. Suitably located at Ahmedabad's best known posh neighborhood, Navarangpura. Away from the noise, smoke and bustle of city traffic: yet close to key commercial areas.
Reason of implementing ERP? Needs of the technology.

Hotel Industry as a whole is always having cut throat competition in which they also have to differentiate themselves from each other, when we had a talk with the hotel management they simply said that if there is one error which has occurred for the company then the customer will never come again so they had to implement this for improvement of their process the main motto behind the implementation of this ERP is to streamline the process there. Along with that the main motto also being to beat the competition in front of the hotels which are competing in the city.
Selection of the ERP supplier.

Hotels are generally dominated by one of the single supplier which is INTERFACE Company which is based in Mumbai in which they also are the implementing partners for the hotel. The company always has a word to say to prove their service as the best.
Pre Implementation Process.

The company always had a motto to streamline the process so what they did was highly customization of the product. They basically had a team which was hired to train them they were the team of external consultants; they were specialized in the ERP implications.

Benefits of ERP Implementation | IIPM Ahmedabad


Basic chemicals or "commodity chemicals" are a broad chemical category including polymers, bulk petrochemicals and intermediates, other derivatives and basic industrials, inorganic chemicals, and fertilizers. Typical growth rates for basic chemicals are about 0.5 to 0.7 times GDP. Product prices are generally less than fifty cents per pound. Polymers, the largest revenue segment at about 33 percent of the basic chemicals dollar value, include all categories of plastics and man-made fibers. The major markets for plastics are packaging, followed by home construction, containers, appliances, pipe, transportation, toys, and games. The largest-volume polymer product, polyethylene (PE), is used mainly in packaging films and other markets such as milk bottles, containers, and pipe. Polyvinyl chloride (PVC), another large-volume product, is principally used to make pipe for construction markets as well as siding and, to a much smaller extent, transportation and packaging materials.

Polypropylene (PP), similar in volume to PVC, is used in markets ranging from packaging, appliances, and containers to clothing and carpeting. Polystyrene (PS), another large-volume plastic, is used principally for appliances and packaging as well as toys and recreation. The leading manmade fibers include polyester, nylon, polypropylene, and acrylics, with applications including apparel, home furnishings, and other industrial and consumer use. The principal raw materials for polymers are bulk petrochemicals.

Chemicals in the bulk petrochemicals and intermediates are primarily made from liquefied petroleum gas (LPG), natural gas, and crude oil. Their sales volume is close to 30 percent of overall basic chemicals. Typical large-volume products include ethylene, propylene, benzene, toluene, xylenes, methanol, vinyl chloride monomer (VCM), styrene, butadiene, and ethylene oxide. These chemicals are the starting points for most polymers and other organic chemicals as well as much of the specialty chemicals category.

Benefits of ERP Implementation | IIPM Ahmedabad


Other derivatives and basic industrials include synthetic rubber, surfactants, dyes and pigments, turpentine, resins, carbon black, explosives, and rubber products and contribute about 20 percent of the basic chemicals' external sales. Inorganic chemicals (about 12 percent of the revenue output) make up the oldest of the chemical categories. Products include salt, chlorine, caustic soda, soda ash, acids (such as nitric, phosphoric, and sulfuric), titanium dioxide, and hydrogen peroxide. Fertilizers are the smallest category (about 6 percent) and include phosphates, ammonia, and potash chemicals.

Software provider: SAP.

Benefits of ERP Implementation | IIPM Ahmedabad


Questionnaires Analysis Part

Benefits of ERP Implementation | IIPM Ahmedabad



Number of Employees asked: 20

1) Did ERP implication change your job work?


Yes 70% No

This question in the HDFC banking clearly shows that the employees were forced to change their working style and working habits which automatically results into the change of KRA for all the employees.

Benefits of ERP Implementation | IIPM Ahmedabad


2) How much time did you take to master ERP after given a proper training?


20% One week One Month 20% 3 Months 6 Months



Rarely mastered

The above mentioned response automatically shows that the in house training which was provided was not much effective. HDFC standard life insurance has a team which is in house it clearly shows the in efficiency of the team.

Benefits of ERP Implementation | IIPM Ahmedabad


3) Do you still face any problem ERP?

40% Yes No


4) What are the degrees of problems which you encounter?


5% 15% Huge Importance Very Important



Important Moderate Less Important

The main impact of the above 2 questions is that the company itself is not taking the pain to know that, are the employees fit enough to use the service which they are being provided. This it becomes of the challenge while implementing ERP.

Benefits of ERP Implementation | IIPM Ahmedabad


5) Do you prefer ERP then the old system?

45% 55% Yes No

This question clearly says the main answer to the whole research objective as the people of the company were not happy with the ERP which was implemented in their company. After having a look at some the main questions now we can figure out some of the challenges while implementing ERP with respective to HDFC Standard life insurance they are: 1) Employees Communication: If the employees are not communicated once also then they are generally not happy with the change which the company is imposing. 2) Effective training: if there is any particular training programme which is being implemented to the company then they have to ensure that the programme or the module which is made is user friendly. 3) Lack of customization: When the company is purchasing the SAAS during that time they should also ensure that the implementing partner should assist them properly about the customization offered, as in the case of HDFC standard life insurance rarely any customization was seen.

Benefits of ERP Implementation | IIPM Ahmedabad


Kalpataru Power Transmission Ltd.
Number of Employees asked: 20

1) Did ERP implication change your job work?


Yes No 80%

This question it clearly shows that the employees were not forced to change their working style and working habits which automatically results not into the change of KRA for all the employees. This automatically is the signal of approval of the ERP in the organization.

Benefits of ERP Implementation | IIPM Ahmedabad


2) How much time did you take to master ERP after given a proper training?

9% 14%

4% 32% One week One Month 3 Months 6 Months 41% Rarely mastered

The above mentioned responses automatically show that the training which was given by the implementing partners was good and also they were able to impart the required knowledge to the employees. This directly shows that the training which is outhouse is much more effective. 3) Do you still face any problem ERP?


Yes 70% No

Benefits of ERP Implementation | IIPM Ahmedabad


4) What are the degrees of problems which you encounter?

5% 30% 15% 5% Huge Importance Very Important Important Moderate 45%

Less Important

The main impact of the above 2 questions is that the company itself has taken a good efforts to ensure that the employees are knowing what the things they are suppose to do and how they are suppose to do. The duration of training itself shows the effectiveness of it.

Benefits of ERP Implementation | IIPM Ahmedabad


5) Do you prefer ERP then the old system?


70% No

This question clearly says the main answer to the whole research objective as the people of the company were quite perfect and they were doing the things as per requirements. After considering all the factors let us now have a look at some of the challenges which may act as challenge with perspective to KTPL 1) Selecting an appropriate Implementing Partner : If the implementing partner is proper then the company will never face any problems while doing that. 2) Channel Partners: The channel partners should be proper.

Benefits of ERP Implementation | IIPM Ahmedabad


Number of Employees asked: 20

1) Did ERP implication change your job work?


Yes 70% No

It is obvious that when you implement something in a working style then you will have certain kind of changes what you wanted to see before implementing that the company has seen in the working style because of the ERP. Actually, those who were extremely senior in the company have got the changes in the working style while on other hand those who were new in the company did not find any kind changes because before them ERP system already was there.

Benefits of ERP Implementation | IIPM Ahmedabad


2) How much time did you take to master ERP after given a proper training?


5% 37% One week


One Month 3 Months 6 Months 21% Rarely mastered

Basically, what company did initially was quite similar to other companies in order to avoid some kind of burden in terms of expenses lie first they trained the most senior persons who are very much familiar with the functions so that problems could be found at first stage and after getting training they will train other persons who are working with them who are seniors but not the like the top level persons within one month and finally who are not familiar with the system will have a training time for the 3 to 6 months on the basis of understanding power.

Benefits of ERP Implementation | IIPM Ahmedabad


3) Do you still face any problem ERP?


Yes No 90%

At present what we have seen in the company with the help of concerned person is that most of the employees in the company have been familiar with the system and while only few persons are facing problem because still they are not extremely familiar with it but they had also assured us these uncomfortable employees will be comfortable after few months because of undertaking training program.

Benefits of ERP Implementation | IIPM Ahmedabad


4) What are the degrees of problems which you encounter?





Huge Importance Very Important 35% Important Moderate

Less Important

Generally, on the basis of observation we get to see that our employees would be facing a problem due to the system but it also needs to check the importance of the problems while working on it rather than shouting in the air without knowing it properly so as per company‟s concerned persons, company is facing the problems but not that kind of which are extremely important which require to work on immediately so they are not bothered about it.

Benefits of ERP Implementation | IIPM Ahmedabad


5) Do you prefer ERP then the old system?


Yes No 85%

Different people, different views you will have when more persons are working on the same system. Reasons can be many more but the real logic tend to different in thinking. In the company, we have found more employees who are saying that they are happy with the new system and don‟t want to get switch over to the old systems because it will be very complicated and time consuming to do it and moreover, how can we forget the mental stress when you want to change the system which will take place at work place.

Benefits of ERP Implementation | IIPM Ahmedabad


Before presenting our views in this recommendation matter, we would like to express our feelings on this matter over here. Most of the entrepreneurs know what we need to take care during the time of implementation but it happens that it becomes so much difficult to act on the recommendation work. On the other hand, it happens that a particular matter goes out of mind at the time of implementation. Now hereby we as a group present our recommendation points after making a healthy discussion with the corporate groups what we have found through the observation and available information. Some corporate executive people want to have a competitive system in their own company to lead in the competition but what happen is they forget to think upon why they actually want this ERP system because other companies are having so they want it anyhow. It means they themselves are not clear about their objective. So first think deeply on it and discuss healthy way with your concerned persons of the company. It generally happens that top level management takes an important decision on their own way and applies it as they feel which ignores the contribution of other level departments. So as a group, we recommendation is to communicate your objective and decision with your internal persons to get the contribution on it and these are the people who finally will be working on this. It will help the company to work on the problems at initial stage rather than seeing a conflict game with your internal people in near future. Everything is possible, we all know this but how we are doing it matters a lot in your work. Don‟t apply just sake of applying because other companies are working on it. This time will demand the more involvement level of the top management because it is a training time and if the management invests the money behind the training method without working on the training modules, expert team, training time and how will you deliver it at work place then what will be the value of ERP system in which company has invested lakhs of Rupees. In short, it is in a company‟s hand to decide what to do and how to do it?

Benefits of ERP Implementation | IIPM Ahmedabad


We all want to run speedily without taking a pause and the management would be keeping the same expectation from all the departments. For that, management needs to apply the system in a particular departments where they can easily control the problems if occur rather going live directly which might not be controllable. By this sample testing, company can come to know the problems which might be ignored during the discussion time. This will support the company to go live with the system by rectifying the mistakes so company can run ahead swiftly with the help of all the departments of the company. Needs to take care that your will not let your achievement convert into the luck. By this statement, we want to express that keep an eagle eye on the system of the company and work continuously on it so management can have information regularly about the working of the system. This will help to prevent the problems rather than let it convert into the conflicts among the management and the employees in near future.

Benefits of ERP Implementation | IIPM Ahmedabad


We have really learned a lot while putting our sincere endeavor on this project and have also felt that ERP really helps the company to work speedily and helps to save the time and money if they can use it in proper way rather just sake of applying it because others are applying in the company. To get the achievement in this kind of project, 4 things matter a lot are objective, communication, training and re-working and for this, management‟s involvement is compulsory which is an implied condition for the achievement in this project rather than let it convert into luck.

Benefits of ERP Implementation | IIPM Ahmedabad


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