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I would also like to thank Mr. for providing valuable information about various workings of the ERP system implemented in Viraj.Acknowledgement This IT project has been possible with the direct and indirect help of a number of people. Devendra Punia for his continuous facilitation and guidance. It would be failing in my duties if I do not express our gratitude to all of them. Parekh of Viraj as he has been a great support and help throughout the planning and development of the project. Her specialized knowledge and valuable suggestions helped me a lot of in designing the project. He guided me on every step which helped me thoroughly to prepare this project. a part of the IT department of 3i-Infotech Ltd. Sushmita Chakroborty. Prof. I would wish to thank FORE School of Management for giving me this opportunity of taking this course whereby I could make a project which has enhanced my knowledge and given me a concrete path to work on. . My sincere thanks are to Ms. My heartiest thanks are to our faculty.
1 2 3 3.1.NO.2 4.1 Introduction TOPIC PAGE NO.1.2 4.3 Implementation Benefits derived by ERP Implementation Time card system for Attendance Document Management References 16 16 17 5 . 4 5 5 5 7 7 9 10 Information Systems Function & Components Information System Management and Governance Internet Policy Auditing policy Disaster recovery planning/ Business continuity plans Enterprise Systems and other Software Orion Enterprise solution 4.2 3.1 4.1 3.3 4 4.CONTENTS S.
Viraj Steel Ltd 3. the company has grown in size and product ranges. Viraj runs its business through the value contract system. In the last 15 years. timely delivery and a broad customer base with exports to around 80 countries across the world. Pressure vessels. Ships. Viraj Alloys Ltd 6. Cold heading & Electrode quality. Viraj Impo Expo Ltd Viraj group of companies is situated in the interiors of Tarapur. Introduction Viraj is a global player in the stainless steel industry. to cater to the local market. They agree with the customer or draw a contract for a fixed period of time to sell their products for a fixed price. Viraj profiles Ltd 2. Oil Pipelines. Boilers. It is the largest producer of stainless steel flanges in the world. Structural design. Martensitic. Ferritic. Viraj Flanges Ltd 5. High tensile springs & cables. Viraj¶s products have wide applications across diverse industries including Petrochemical Plants. Viraj¶s products are increasing their respective market share. timely delivery and quality products. Viraj has operations and agents in active hubs of the world. Viraj group of companies has 6 companies into it: 1. Viraj¶s operations are spread over four continents with above 9000 employees working for the brand and has an annual turnover of USD 1 billion. Mumbai. Their end . Viraj produces Austenitic. Austenitic-Ferritic (Duplex) stainless steel grades while supplying special grade stainless steel of Precipitation hardening. Liquid storage terminals. The products manufactured at Viraj are of a high quality and value which is a direct reflection of the organization¶s beliefs and values in operating the business as a global leader in steel production. VSL Wires 4. Today. keeping in mind its customer centric approach. The head office is also located at Tarapur. Boisar. has gained Viraj a wide acclaim.1. With more than 95% of the production going towards exports. High quality stainless steel products. Liquid cargo ships and Surgical instruments to name a few.
OS: Windows 2000 3. PWC (Price water cooper ) is the main auditing firm for five of their division. Information Systems Function & Components Viraj profiles has got 16 people under their IT department. Components of Information System IS components used by the organization are: 1. 3. Hence management forces the employees to capture their day to day transaction in the system.0.1 Internet Policy: The use of the Internet by company employees is permitted and encouraged where such use is suitable for business purposes and supports the goals and objectives of the company and its business units. The . It does financial auditing on the basis of records available in the ERP. Front End: D2K b. bars. Hardware platforms : HP Systems 2. billets. These products basically contain nickel in their main composition and the price of the nickel is not fixed rather it is forecasted to appreciate in the future period. The main head of the IT department is the COO of the company as well.4. Though the manual entries are still maintained but the records in the system are as well stored. Information System Management and Governance Viraj¶s profiles emphasizes on IT to drive their business needs. steel.004 (3i-Infotech) a. flanges. 2.products are wire. Back End: Oracle 9i 3. All kind of operations of their Business flows starting from creation of Purchase order till making Sales to end customer is captured in the system. Enterprise software applications: Orion 10. rods.
Viraj Profiles Ltd considers the following as un-acceptable use of company provided Internet access and Viraj employees are required to use Internet appropriately General prohibitions: y y y y y y y y Visit sites that contain obscene. c) Availability: assurance that authorized users have access to information and associated assets when required. b) Integrity: assurance of the completeness and accuracy of information and its processing methods. FTP sites. Waste time on non-company business activities Any use of the network for personal. Download or upload of any obscene. proposals. political. hateful or other objectionable materials. investors and the public at large. racist or religious material. private. and also the information that is entrusted by employees. download of music and video files from internet Users are discouraged from subscribing to unnecessary and irrelevant newsgroup subscriptions. customers. etc y Any use of the network for product advertisement. political lobbying. or political purposes whatsoever One of the imperatives of Viraj vision is assurance of the security of information assets belonging to Viraj. Gopher servers. or materials on the Internet. vendors. Make or post indecent remarks. .Internet is to be used in a manner that is consistent with the company¶s standards of business conduct and as a part of the normal execution of an employee¶s job responsibilities. commercial or for-profit purpose Personal use of Viraj Profiles Ltd network resources to host personal home pages. Information security translates to the preservation of the following three goals: a) Confidentiality: assurance that information is accessible only to those authorized to have access.
2 Auditing policy: Viraj¶ security framework is aligned with the ISO27001 standard. whether it is revealed to unauthorized users on a computer system or it is told to them in a conversation.3 Disaster recovery planning/ Business continuity plans: Viraj has adopted the best practices towards Business continuity management. regardless of the manner in which it is stored. 3. and loss of trust. For example: A virus attack on a single computer in a network could result in the virus spreading to all other machines in the network.Information can be stored. communication devices etc. processing and transmitting information ± for example. can lead to violation of contractual agreements with a customer. processed or transmitted.) for these purposes. fax or in face to face conversations. financial loss. Viraj makes extensive use of Information Technology (computers. high speed storage. Inadequate protection of information and information assets can severely impact their capability to achieve and sustain their vision. Information must always be appropriately protected. or communicating it over phone. The external surveillance audits for the same happen twice a year. 3. and impact all work. Inappropriate disclosure of confidential customer information. This includes aligning their practices to global frameworks including a) TR 19 (Spring Singapore standard) b) BS25999 c) ISO 27001/2005 d) eSCM . They use traditional means of storing. by writing or printing it on paper. processed or transmitted in many different ways. Unauthorized alteration of the contents of Viraj¶s home page on the Internet can seriously affect their brand image.
Desk Top Failure. LAN/LAN Component Failure. in Level 3 Disaster. Mass Sickness. y Level 3: Major Technical Problem and Both Primary and Secondary Sites are not available. they have ample readiness in terms of Infrastructure. Viraj resources operate from an alternate recovery site. Non availability of the primary and secondary site due to country level disaster. Site temporarily unavailable due to Failure of the Telecom connectivity on both the Primary and the Secondary lines. To that end.The company has categorized the Business continuity plans that it can offer to its clients into three distinct levels. within the same city and/or country. Site temporarily unavailable for a period in excess of 24 Hours (Long run public disturbance/strike etc) or unavailable for a period in excess of 24 hours due to limited damage to the building. General Strike. BCP & Risk Education. Security. The information about these is summarized as below: y Level 1: Minor Technical and Telecom Problems such as Server Connectivity failure. Cyclones & Lightning. Transport Disruptions. Viraj will ensure redundancies with respect to the above issues during the technology design phase & ensure connectivity in case of primary link failure. outside the country. y One of the basic tenets of the company¶s BCP/DR strategy is proactive readiness and not just reaction to the BCP/DR when it strikes. y Level 2: Major Technical or Telecom Problems or building / city are out of bounds at the primary site. . within the same city and/or country. Floods. Technology & Telecom redundancy. Power supply failure etc. Electricity Redundancy. Viraj resources operate from an alternate recovery site in Level 2 Disaster.
let us try to understand what exactly an ERP system is. and. warehousing. accounts receivable and payable. Enterprise Systems and other Software Before we dwell on how Viraj implemented an ERP system for integrating their various departments. ERP is an industry term for integrated. y The Business Continuity and Disaster Recovery (BC&DR) plan is done at Organization level. With ERP software. communicated and tested to ensure the continuity of operations and availability of critical resources after a disaster. companies can standardize business processes and more easily enact best practices. companies can concentrate their efforts on serving their customers and maximizing profit.y Viraj has a detailed Disaster Recovery & Business Continuity plan called the Phoenix plan at the Corporate Level. There is a comprehensive Disaster Recovery Plan (DRP) in place that takes into consideration eventualities from a Partial Disaster and a Total Disaster. The disaster recovery plan is documented. depending on the software. multimodule application software packages that are designed to serve and support multiple business functions. transportation and human resources. ERP modules may be alterable via the vendor's proprietary tools as well as proprietary or standard programming languages. ERP systems allow companies to better understand their business. ERP modules may be able to interface with an organization's own software with varying degrees of effort. development centre level (location specific) and client account level (applicable for large relationships). 4. order entry. An ERP system can include software for manufacturing. Evolving out of the manufacturing industry. expandable and easy to manage Reduce complexities of the IT environment Reduce the reliance on certain people to maintain the systems Better control over various department functions. general ledger. ERP implies the use of packaged software rather than proprietary software written by or for one customer. By becoming the integrated information solution across the entire organization. Key Points of the System y y y y y System should be flexible. By creating more efficient processes. A Standard system which can be easily scaled for rapid expansion of business . purchasing.
In addition. its high scalability ensures to sustain business growth. chemicals. Web Portals. distributed and web based computing architecture. open product that includes full-featured ERP expertise coupled with CRM (Customer Relationship . Unix and Linux platforms. In order to secure investments. highly configurable. is a seamless. medical devices. is functionally rich. robust integrated enterprise class solution that can be deployed on Windows. pharmaceuticals. life sciences. Orion focuses on the unique and specialized requirements of midsize to large process manufacturers and distributors in food and beverage. cosmetics. vast business requirements. ORION¶s flexible design and extensive parameterization allows it to cater to dynamic. It supports centralized. Manufacturing. Warehouse Management. warehousing-logistics and. Sales Route Accounting to increase operational efficiencies across the enterprise. business continuity risks and to reduce total cost of ownership. Orion has been developed on Oracle environment utilizing its robust. reliable open systems architecture. Orion is offered on Software as a Service model. A highly scalable ORION enables one to integrate all areas of businesses such as Operations. scalable. ORION is an end-to-end integrated software application and deployment platform.4. It helps to boost customer satisfaction through effective control over costs and enhanced profitability.1 Orion Enterprise solution ORION . an enterprise solution from 3i-Infotech Ltd. related industries.
y Once the finished good is manufactured the sales invoice is created where in they will add all necessary excise duties and VAT to come up with the total Sales amount. Currently in Viraj the shipment to the customer is not captured through the system. The suppliers. The system then checks the availability of the material. The requisition will be approved by the store manager. incisive strategic analysis and Internet procurement and sales. The sales order for the customer is created in the system. Implementing the ORION platform gives the power to combine individualized customer and supplier management. This is called as make to order production. Once order is created supplier would deliver the raw material.across multiple locations. and concurrently coordinate manufacturing. The raw material can be stored at storage location or can be procured externally. multi-division/profit centers and other multi-department/cost-center kind of organization structures. y Once the shop floor receives the request it will estimate by which date the material will be delivered to the end customer based on the raw material availability. But in future they are planning for Fleet management system to be integrated with Orion enterprise solutions. with strong financial and production operations. It allows you to monitor order status. Day to day processes are captured at transactions level.Management) and SCM (Supply Chain Management) features. The system will capture the goods receipt i.e material inward data. y Generally they use material requirement planning which triggers the system to create the requisition as soon as a sales order is created in the system. Now the raw material is available for the production of finished goods. If it¶s not there it gives a request to shop floor for the production of the same. It has 9 levels of Accounting hierarchy Viraj has implemented Orion Enterprise solution to capture their day to day transaction start from procure to pay till order to cash cycle. . y If it has to be externally procured then they will generate a material requisition request through the system. transactional fluidity. customer and material information is stored at master data level. inventory and dispatch of finished goods . The goods are then shipped to customer at their address. y y The customer orders for material. ORION supports multi-company. y y y Once the request is approved a purchase order for the same would be created in the system.
During GRN entry. Rejected quantity is mentioned in the challan & it is sent back to the supplier. Every quarter they generate their balance sheet through Orion Enterprise. Accepted quantity to be entered as received quantity. It actually internally passes a voucher through which the customer account is debited and their sales account is credited. All leave and attendance. Bills to be registered for received quantity only and payment also to be accordingly. performance management is captured through this module. deductions. Negative tolerance as well as positive tolerance can be defined in this case for individual item. Salary processing.1 Implementation: The implementation for various processes in ORION Enterprise solution has been done in the following way: Sl. quantity in excess of PO quantity can be accepted within set Tolerance limit for each item as per item master definition. Processes Sub Processes / details Product Mapping 1 Goods Receipt Note (GRN) y GRN is prepared for accepted quantity only. During Inspection entry. Stock is updating for accepted quantity only. Each site store is mapped as separate location-code through . In Orion. Orion Enterprise Chart of accounts is also maintained in the system. 4. Stock is updated for received quantity. this is mapped through Goods Receipt Note entry referring Inspection note. The Purchase order for this module is created separately. y Accepted quantity is taken in the stock at respective location and payment is made for accepted quantity only.1. stock for entered Location will be updated for received quantity. Orion HRMS and Payroll module HR operations are also captured through Orion HRMS and Payroll module which is actually an Add in into the Orion enterprise.All financials impacts are created when the sales invoice is posted in the system. y Excess quantity is accepted in certain cases. transport.
Debit Note / Rejection Note document can be printed as per PIL given format. In Orion. Stock variance report and stock adjustment. for cash purchases below 500. This Stock reconciliation is done for all sites / locations separately.y Currently at site / location. 2 Goods Receipt Item Costing y Accounts Costing. y Any deviation in the stock is adjusted with the permission of management at the end of financial year. i. Item WAC(Wholesale acquisition cost) to be defined as stock valuation method in Item master. Orion Location master.e Stock take plan. y Obsolete stock is identified and sold to the scrap dealer.Vertical All). this is mapped through Stock adjustment & Level 1 Authorization. y Stock is updated for rejected material. No PO. In Orion. Stock reconciliation is done at the end of every month to reconcile the physical stock balance (Closing balance) based on inward and outward movement of the item. Various Tax / Expenses / Discounts can be either pulled from PO or to be entered through Item level Tax / Expense / Discount (TED) block during GRN Costing. 500 for each site and GRN to be entered directly without PO reference. 4 Stock reconciliation process (Physical Stock verification) y y Various tax & expenses as applicable will be accounted in GRN. Stock reconciliation process is executed separately for each site / location. The costing of items should be linked to Stock valuation and accounts. this is mapped through separate site-wise / location-wise Stock Take Plan. (Authorization type . Stock Financial entries will also be passed based the GRN Item landed cost. Stock take sheet. Accordingly Item landed cost will be calculated and stock valuation will be maintained. . Costing will capture different kinds of expenses as per GRN.. Accordingly Item WAC will be updated. this is mapped through Stock reconciliation process i. this is mapped through GRN Costing and Level 1 Authorization (Authorization type . Stock will be updated (reduced) during stock confirmation of Supplier Return document. Through Stock ageing report one can find total quantity of Obsolete stock. Separate transaction codes to be configured for Purchases below Rs. This obsolete stock selling is mapped through normal Sales process (Sales Order Payments from Customer and so on). Sales Invoice y Cost calculation: Costing is done after receipt of the goods. department does GRN In Orion. y 3 Obsolete stock handling and sale of obsolete stock.Vertical All). In Orion. 5 Rejection Note / Debit Note y Debit note along with Rejection note is prepared & sent to supplier in case of material is rejected subsequently to GRN acceptance due to non-usability of materials / equipments because of malfunction. This is mapped through Supplier Return entry.e. there is direct GRN.
Supplier classification as µA¶. maintained as follows: o o o o Sundry creditors for goods Sundry creditors for Expenses Sundry creditors for Capital Sundry creditors for Subcontractor y Supplier classification is based on Supplier Class as µA¶. List of Documents: o GRN o Material Issue slip List of Reports: o Location-wise (Site-wise) Stock Ledger o Stock Ageing Report 9 Finance related Documents / Reports List of Documents: o o o o o o Cash / Bank Receipt Voucher Cash / Bank Payment Voucher Journal Voucher Debit Note Credit Note Cheque Printing Voucher Printing Voucher Printing Voucher Printing Voucher Printing Voucher Printing Available standard format in Orion. . At the time of Supplier Bill registration. and µC¶ and not based upon the type of material he is supplying. 7 Inventory Supplier Accounting / y Currently Supplier accounts are Separate Creditors Control Accounts for various types of creditors needs to be defined through Main Account Master and Creditors as Sub-Account to be linked to corresponding Creditors Control Account. actual supplier liability is booked and provisional liability is reversed.6 Supplier booking Bill y Provisional Liability is booked in separate Provision Account during GRN accounting. y At the time of bill booking. provisional entry will gets reversed and actual supplier liability will be booked. µB¶ or µC¶ is mapped through flex-1 in Supplier Master. Customized as per Viraj¶s requirement Inventory Stock Ledger / Unconfirmed Stock Ledger Location-wise Stock Ageing / Location group-wise Stock Ageing GRN Costing Sheet printing Issue Slip document printing Stock value posting will be based on Inventory Account Setup. PIL to enter the Supplier corresponding class manually.µB¶. y 8 Inventory related Documents Reports / Stock value is posted in Finance based on Item sub-category. Provisional FEG will be passed based on Supplier Suspense Account Setup at the time of GRN posting.
Customer service can be improved by making valid delivery promises and then meeting those promises. 2. ensures accurate and up to date financial information. Effects on sales . A common database from ERP. Financial reports can be easily customized to meet the needs of various decision-makers.ERP systems help establish realistic schedules for production and communicate consistent priorities so that everyone knows the most important job to work on at all times. ERP helps identify the impact on production and purchasing. When diagnosing the impact of changes to materials and resources. As manufacturing transactions are recorded. Period end closing procedures can be performed in hours or days. 6.2 Benefits derived by ERP Implementation: 1. Since manufacturing transactions automatically update the general ledger. As changes to demands or supplies do occur.4. which improves job estimating. Effects on production and materials management . for example.An ERP system implemented as an integrated software package offers several advantages to the MIS function. especially in terms of engineering change control. 4.the product structure database offers engineering much greater control over product and process design. The software package can offer a growth path . Detailed transaction activity can also be easily accessed online for answering account inquiries. and improves the timeliness of financial reports. Custom product quotations can be developed faster and more accurately. Effects on product and process design . Planned changes can be phased in and emergency changes can be communicated immediately. 3. Delivery lead times can be shortened and customer inquiries on order status can be answered immediately. engineers can check where used information to identify the affected products. Financial projections can be based on detailed ERP calculations for future requirements. accounting no longer requires duplicate files and redundant data entry.1. 7. ERP systems offer numerous analytical tools for the engineering function. and permits tracking of actual versus budgeted expenses. This provides a complete audit trail from account totals to source documents. the financial equivalents are automatically generated for updating the general ledger. time-consuming manual journal entries can be eliminated. rather than weeks. 5. Effects on the MIS function . Visibility of future requirements helps production prepare for capacity problems. This reduces clerical accounting work. and also helps suppliers anticipate and meet your needs.
published material is easier to locate. It provides an upgrade path to technology and functional enhancements supported by the software vendor. and training classes. It can reduce the development time and cost for software. documentation.2 Time card system for Attendance Viraj has implemented an automated attendance for its offices and workshops. These implementations made by Viraj have provided them with solutions that are flexible and cost effective. The employee needs to use the punch card at the security gates which then automatically updates their attendance. . This improves the quality of documents and speeds the time to publication.from simple to comprehensive applications built on top of a database management system. 4. It has also helped the organization in getting consignments easily and meeting their deadlines within the given time period. with a robust routing and approval process for documents. These costs would be incurred before the firm can start obtaining the benefits of an ERP system. Each employee has a punch card which stores employee information.3 Document Management Microsoft SharePoint Portal Server provides complete document management functionality. 4. Versioning capabilities streamline collaboration efforts and make it easier for users to track changes in documents. It permits the MIS staff to focus their attention on organizational change and servicing user needs for customization and professional assistance. With the extensive SharePoint search and categorization features. The ERP allows them to scale their operations easily. manage and maintain.
3i-infotech.5.com/supplychainmanagement/orion-erp-ii. References y y y http://www.html .viraj.com http://www.aspx http://www.com/content/erp/process-manufacturing.distributiondownload.
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