Project on Implementation Of ERP System With Material Management

Module In Gharda Chemical Limited

Submitted in partial fulfillment for the award of the degree of
MASTER OF MANAGEMENT STUDIES
5 UNIVERSITY OF MUMBAI

Submitted by Mr. Rushikesh Vinod Kadam

ROLL NO. M-9121
2018-2020
10 Under The Guidance of
Prof. Deepa Honrao

DES’s NAVINCHANDRA MEHTA INSTITUTE OF TECHNOLOGY AND

15 DEVELOPMENT, MUMBAI – 400 028

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 5

20 PROJECT CERTIFICATE
This is to certify that the summer internship report titled “Implementation
Of ERP System With Material Management Module In Gharda Chemical
Limited” submitted in partial fulfillment for MMS Degree Examination by
Rushikesh Vinod Kadam [Seat No. M9121] is a record of Research work carried
25 out by him/ her during the period from May 2019 to - June 2019 under my
guidance, and has been found satisfactory. This report had not been submitted for
any other examination and does not form part of any other course undergone by the
candidate.

30 Internal Guide Director

EXAMINED BY

INTERNAL EXAMINER……………………

35

EXTERNAL EXAMINER…………………..

College Stamp

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DECLARATION

I hereby declare that this project report submitted by me to the partial fulfillment of
45 the requirement for the award of MASTER OF MANAGEMENT STUDIES
(MMS) of the University of Mumbai is a bonafide work undertaken by me and it is
not submitted to any other University or Institution for the award of any degree,
diploma/ certificate or published any time before.

50

Name: Rushikesh Vinod Kadam

55

Roll No. M-9121 Signature of the student

(Rushikesh Vinod Kadam)

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60 ACKNOWLEDGEMENT

This project has been a great learning experience for me. I take this opportunity to
thank Prof. Deepa Honrao, my internal project guide whose valuable guidance &
suggestions made this project possible. I am extremely thankful to him/her for
65 his/her support. She has encouraged me and channelized my enthusiasm
effectively.
I express my heart-felt gratitude towards my parents Mr. Vinod Waman Kadam
and Mrs. Vinaya Vinod Kadam and all those friends who have willingly and with
utmost commitment helped me during the course of my project work.

70 I also express my profound gratitude to Dr. Samadhan Khamkar, Director of

DES’s Navinchandra Mehta Institute of Technology and Development for giving
me the opportunity to work on the project and broaden my knowledge and
experience.

I would like to thank all the professors and the staff of DES’s NMITD especially
75 the Library staff who were very helpful in providing books and articles I needed
for my project.

Last but not the least, I am thankful to all those who indirectly extended their co-
operation and invaluable support to me.

80

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85 Executive Summary

The summer training of a management student plays an important role to

develop him into a well groomed professional. It gives theoretical concepts a
practical shape in the field of applications.

The objective of this report is to study the implementation of ERP system

90 with Material Management Module in Gharda Chemicals Ltd. And compare
between pre ERP system and post ERP system within this organization in terms
of performance enhancement. The implementation aims to help organizations
improve their employees’ effectiveness & efficiency, identify system wide
opportunist share, harmonize and standardize ERP operations within the
95 organizations; share services or merge components of systems in or maximize
synergies across the system; and strengthen the position of among organizations
in country market. In doing so, the report assesses the efficiency, effectiveness,
value added, impact ,user satisfaction, coherence and sustainability of ERP
systems.

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Index
Page
Chapters no.
Chapter 1 - Synopsis 8
Chapter 2- SRS Documentation Of Implementation
Of Erp System 9
Chapter 3 – About The Case Study 17
3.1 Existing System 17
3.2 Problem Statement 19
3.3 Proposed Solution 21
3.4 Business Case 23
Chapter 4 – Analysis Phase 25
4.1 Fact Finding Methods 25
4.2 Feasibility Study 26
4.2.1 Project Overview & Executive Summary 26
4.2.1.1 Project Background 26
4.2.1.2 Project Scope 29
4.2.1.3 Project Approch 31
4.2.1.4 Summary of Observation 33
4.2.1.5 Executive Summary Of Operation &
Recommedation 34
4.2.1.6 Primus TechSystem Pvt Ltd Recommedation 35
Chapter 5 – Design Phase 37
5.1 Data Dictionary 37
5.2 Output Report 38
Chapter 6 – Futue Enhancement 47
Chapter 7 – Recommendation & Conclusion 48
Chapter 8 – References 49
100

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 Chapter 1 - Synopsis
Gharda Chemicals Limited (GCL), established in 1967, is a Research and
Development Company manufacturing high quality Agrochemicals, High
105 Performance Pigments, High Performance Polymers. GCL has five manufacturing
units in Dombivli-Mumbai, Lote Parshuram-Chiplun, Panoli-Gujarat,
Ankaleshwar-Gujarat and Samba-Jammu, with a state of R&D centre at Dombivli.
Company has sales turnover of over Rs.1800 Crores.
As such, Gharda Chemicals Limited executive management need comprehensive,
110 accurate, and timely data to manage by and set policy. This information is required
to enhance chemical production of their product.
Gharda Chemicals Limited core make sure that materials are always kept in proper
quantities and without shortages or gaps in the organization's supply chain,
Because of these deficiencies, the Gharda Chemicals Limited directed the detailed
115 plan for replacing these systems. Gharda Chemicals Limited performed this
planning effort in collaboration with the Office of PRIMUS Techsystems Pvt Ltd.
This is the report of the implementation of the enterprise resource planning (ERP)
system program.

120

125

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Chapter 2-SRS Document Of Implementation Of ERP

System
1. INTRODUCTION
ERP is one of the most widely implemented business software systems in a wide
variety of industries and organizations. ERP is the acronym of Enterprise Resource
Planning. ERP is just not only a software. ERP definition refers to both; ERP
software and business strategies that implement ERP systems.

Our ( Enterprise Resource Planning ) ERP implementation utilizes purchasing raw

material,plant maintenance, Payroll System , Finance System and other integrated
applications to improve the performance of any organizations for
1) Resource Planning
2) Management Control
3) Operational Control.

Our ERP software consists of multiple component that integrate activities across
functional departments - from production planning, parts purchasing, inventory
control and product distribution to order tracking. Our ERP software systems
include application modules to support common business activities like purchasing
raw material,plant maintenance, finance, accounting and human resources. These
components interact together to achieve a common goal - streamline and improve
organizations' business processes.

1.1 Purpose
Enterprise Resource Planning (ERP) software can be described as a complete
business software solution. It is aimed at the integration of all business processes
and sub-processes into a single unified system. This system is formulated and
implemented in an organization to effectively and efficiently achieve the business
goals of the organization. The purpose of this is to develop a ERP system which
will provide following benefits to the organization in it is implemented :
 All processes and sub-processes are linked and unified into a single system.
 There are enhancements in the field of productivity, efficiency and
achievement of business objectives.
 ERP tends to considerably reduce the response time by effectively transferring
crucial information.
 ERP helps in streamlining the numerous functions performed by the
organization as a whole.

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  It helps the management to make vital decisions with unparalleled accuracy
and in-depth study.

This SRS document is based upon IEEE Std 830-1998 IEEE Recommended
Practice for Software Requirements Specifications.

1.2 Scope
Following Software product are need to produced :

Integrated Enterprise Resource Planning Software

 Manufacturing System
 Supply chain management System
 Financials System
 Projects System
 Human resources System
 Customer relationship management System
 Data warehouse System
 Access control System
 Customization System
 Plant maintenance

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 2. THE OVERALL DESCRIPTION
2.1 User Interfaces
The ERP will have following user-friendly and menu driven interfaces :

2.1 Login
To allow the entry of only authorized users through valid login Id and password.

2.2 Manufacturing 
To maintain Engineering, bills of material, scheduling, capacity, workflow
management, quality control, cost management, manufacturing process,
manufacturing projects, manufacturing flow

2.3 Supply Chain Management 

To maintain Order to cash, inventory, order entry, purchasing, product configurator,
supply chain planning, supplier scheduling, inspection of goods, claim processing,
commission calculation

2.4. Financials 
To maintain General ledger, cash management, accounts payable, accounts
receivable, fixed assets

2.5 Projects 
To maintain Costing, billing, time and expense, activity management

2.6 Human Resources 

To maintain Human resources, payroll, training, time and attendance, rostering,
benefits

2.7 Data Warehouse

To maintain Data warehouse and various self-service interfaces for customers,
suppliers, and employees

2.8 Access Control

To maintain User privilege as per authority levels for process execution

2.9 Customization
To maintain the extension, addition, change in process flow

The software should generate following viewable and printable reports :

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 Manufacturing 
 Supply chain management 
 Financials 
 Projects 
 Human resources 
 Customer relationship management 
 Data warehouse
 Access control
 Customization

2.2 Hardware Interfaces

 Screen resolution of at least 640 x 480 or above.
 Support for Printer (Dot Matrix, Deskjet, Laserjet)
 Computer systems will be in the networked environment as it is a multi-user
system.

2.3 Software Interfaces

 MySQL Server
Developed by MySQL AB
Initial release May 23, 1995
Stable release 5.1.32
Preview release 6.0.9  
Written in C, C++
OS Cross-platform
Available in English
Type RDBMS
License GNU General Public License

 Java 2.0
Paradigm Object-oriented, structured
Appeared in 1995
Designed by Sun Microsystems
Latest release Java Standard Edition 6 (1.6.12)
Typing discipline Static, strong, safe
Major implementations Numerous
OS Cross-platform
License GNU General Public License

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 .Netbeans
Developed by Sun Microsystems
Latest release 6.5
Written in Java
OS Multi-platform
Available in Multilingual
Type Java IDE
License CDDL or GPL2

 PHP
Usual file extensions .php
Paradigm imperative, object-oriented
Appeared in 1995 (1995)

Designed by Rasmus Lerdorf

Developer The PHP Group

Latest release 5.2.9

Latest unstable release 5.3.0 Beta 1, and 6.0-dev[1]

Typing discipline Dynamic, weak
Major implementations Roadsend PHP, Phalanger

Influenced by C, Perl, Java, C++

Influenced Php4delphi

OS Cross-platform

License PHP License

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2.4 Specific Requirements

This section contains the software requirements in detail along with the various
screens to be developed.

2.4.1 Sequence Diagram

Figure 2.4.1.1 Sequence Diagram of the ERP System

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 Figure 2.4.1.2 Sequence Diagram of the Purchase Department

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2.4.2 Data Flow Diagram Of ERP System

Diagram 2.4.2 :Data Flow Diagram Of ERP System

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Chapter 3 -About The Case Study

3.1 Existing System

The Current Application consist of Seven systems that constitute the department’s
150 primary Production Planning , Sales and Distribution , Plant Maintenance, Quality
Management, program management, project management, and asset management
systems. These systems perform a range of business functions for the department
including needs identification and project prioritization, development and
monitoring of the department’s capital construction program, asset management,
155 project management, procurement, management of the revenue cycle, and financial
reporting.

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 Diagram 3.1:Diagram Of Organizational Structure Of Gharda Chemical
Limited
160

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3.2 Problem Statement

The Current Applications present a number of business challenges for Gharda
165 Chemical Limited. These include:
 There is a significant potential for loss of credibility with the Washington State
Legislature, other stakeholders, or the public as a result of the difficulty and
length time required to obtain information from the current systems, and the
potential for multiple versions of the truth depending on which systems are
170 used to obtain the information.
 These systems do not provide Gharda Chemical Limited with the information
needed by managers to effectively deliver the department’s programs. This
includes an inability to easily identify the real cost of projects or operations and
difficulty in measuring actual outcomes against management objectives.
175  The Current Applications do not meet all of the department’s business
requirements for complying with Federal regulations or monitoring compliance
with collective bargaining agreements.
 The Current Applications are complex, fragile, and require constant monitoring
by Gharda Chemical Limited Office of Information Technology staff. For the
180 most part, only mandated changes are made in order to maintain system
stability.
 Because of limitations in the Gharda Chemical Limited Applications,
numerous standalone systems have been developed both by Gharda Chemical
Limited Office of Information Technology and by various business units. The
185 feasibility study team has identified more than 7 applications that could
potentially be decommissioned with the replacement of the Current
Applications by an integrated solution. These standalone applications
substantially increase the cost of maintaining Gharda Chemical Limited
information technology portfolio.
190  There is diminishing expertise within Gharda Chemical Limited to support
these systems. Thus, there is the potential for system failure if existing
resources cannot keep up with the demands for application changes or if they
are not available to perform necessary production support activities.
 There is duplication of effort in supporting multiple systems that perform the
195 same or nearly the same function including two timekeeping systems and the

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 department’s own standalone management system.

200

205

210

215

3.3 Proposed Solution

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 To address these business challenges, Gharda Chemical Limited is proposing to
220 replace the various Current Applications and a number of related standalone
applications, with an integrated Enterprise Resource Planning (ERP) application ,
supplemented by commercially available best of breed software solutions where
required to provide functionality not available within the ERP application. As
depicted in Exhibit ES-2, an ERP provides an integrated suite of software in which
225 information is captured at its source and made available across various system
functions.

Diagram 3.3.1:Diagram OF Typical Functions in an Enterprise Resource

Planning (ERP) System
230

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In terms of ERP software solutions, the state has made an initial investment in
SAP, which is the basis for the Material Management (MM).PRIMUS
Techsystems Pvt Ltd has conducted systems planning over the last several years
for a statewide ERP application potentially using SAP to meet the common needs
235 of Organization.

Diagram 3.3.2:Diagram of SAP MM Module

240

3.4 Business Case

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 The Current Applications Replacement Program feasibility study team has
245 identified a range of potential quantitative benefits from the implementation of this
program across various Gharda Chemical Limited business processes and program
areas. When the Current Applications Replacement Program is fully implemented
and Gharda Chemical Limited begins to fully realize all of the potential benefits, it
is estimate that the department has the potential to achieve quantifiable benefits
250 per year. These savings are the result of a combination of faster cost recovery, cost
savings from efficiencies, future cost avoidance, and redirection of staff from
transaction processing activities to higher value and program specific work.
Examples of some of these potential benefits include:
 Increased efficiency in the Production Planning and Quality Management
255 program:
 A reduction in the cost to making a project through improved program and
project management tools including enhanced project budgeting and
costing
 More cost effective project programming decisions through enhanced needs
260 identification, project scoping, project prioritization and selection tools

 Improved management of assets and consumable inventory:

 More effective use of the existing maintenance budget through improved
lifecycle cost management as a result of implementation of an integrated
265 Production Planning management solution with lifecycle cost modeling,
needs identification, trade-off analysis, and performance-based budgeting
capabilities
 Reduced spend on consumable inventory by reducing inventory turns and
more frequently negotiating volume discounts
270
 Automation, streamlining and consolidation of accounting and other support
functions:
 Avoidance of payroll over payments based on enhanced business rules and
edits at the point of time entry and improved internal controls
275  Opportunity to redirect the time of some accounting, timekeeping, payroll
and procurement staff through capturing data at the source, and through the
use of employee and vendor self-service capabilities
 Potential for consolidation of regional and program supported budgeting,
cashiering,procurement, contract management, accounting, and payroll
280 functions under an agency “shared services” model

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 Enhanced billing and revenue collection practices:

 Ability to improve collection rates for accounts receivable through
enhanced billing,collection, and monitoring
285  Ability to offset receivables from and payables to local jurisdictions and
other entities through the use of common identifiers and enhanced
collection management capabilities

 Enhanced procurement practices:

290  Ability to take discounts on vendor payments through enhanced accounts
payable management capabilities

 Reduced information technology costs:

 Decommissioning of the Gharda Chemical Limited mainframe
295  Redirection of the Gharda Chemical Limited information technology staff
to supporting other line of business applications as a result of the
elimination of the Current Applications and most of the other 7 standalone
systems performing related functions

300 The Current Applications Replacement Program also has the potential to provide a
number of other benefits for the department. These qualitative benefits include:
 Facilitating implementation of the One-DOT concept by consolidating
duplicate systems and implementing and automating standardized accounting,
procurement and other administrative processes
305  More effectively meeting current Gharda Chemical Limited business
requirements and providing a platform for being more agile in addressing
future changes in agency business needs
 Reduced business risk in terms of complying with regulatory requirements and
monitoring collective bargaining agreements
310

315 Chapter 4 – Analysis Phase

4.1 Fact Finding Methods

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 SWOT Analysis
The key objectives of our review are to learn how the various systems work
together, to determine the extent to which the organization’s needs are being met
320 by the current systems, and to identify the current issues and any unmet
requirements that any future enterprise system must address. By analyzing the
current system, we believe that the Gharda Chemical Limited will be better
prepared to establish strategic priorities in deciding whether to embark on a
systems replacement project. The approach PRIMUS Techsystems Pvt Ltd
325 followed in developing the Feasibility Study focused on:
1. Identifying how the current technology applications support the Gharda
Chemical Limited business goals
2. Denoting opportunities for improving the effectiveness of business processes
performed at the Gharda Chemical Limited in the future.
330 While the current technology environment supports the daily needs of the Gharda
Chemical Limited . The current system structure has left the Gharda Chemical
Limited with many challenges. The following is an overview the key strengths,
weaknesses, opportunities and threats based on the Gharda Chemical Limited
current systems environment, the ERP system selection project status, and the
335 implementation considerations / plans to date:
Strengths
 There is a high level of Gharda Chemical Limited management support to
engage stakeholders in improving business processes
 IMSD support and other Gharda Chemical Limited staff have developed
340 effective work around to address many system limitations
 There is a strong desire to reduce paper based processes
 Multiple Gharda Chemical Limited staff have experience using newer ERP
systems and are increasing ERP awareness throughout the Gharda Chemical
Limited
345  Gharda Chemical Limited stakeholders have shown growing interest in
participating in the selection process
 Pent up demand has primed users for system changes to improve their business
processes

350 Weaknesses
 Limited tools for end users to develop reports for access to critical information
 Lack of integration between many legacy system components

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  Complex ad hoc query capabilities frustrate users and discourage use of current
systems
355  Many users lack access to certain system components resulting in a
proliferation of redundant systems
 Departments use side systems extensively to track relevant data across their
functional areas
 Limited ability to integrate with other Gharda Chemical Limited systems
360  Limited ongoing training available. As a result, new staff members may not be
receiving enough training to fully utilize existing systems.
 Difficulty in identifying errors and flags in Advantage, which causes
inefficiencies. The Comptroller’s Office has to spend extra time serving as an
Advantage help desk to correct errors in the system.
365

Opportunities
 Modern systems have stronger standard reporting capabilities supplemented by
robust reporting tools
 Transition to an information self-service environment
370  Redesign processes during implementation to take advantage of best practices
built into new systems
 Leverage lessons learned from other Gharda Chemical Limited technology
implementations
 Strengthen likeliness of implementation success through grassroots project
375 involvement
 Vendor solutions typically incorporate public sector best practices
 Improved interfacing with other Gharda Chemical Limited systems and
external providers
 Shared database for reporting Gharda Chemical Limited wide
380  Increased automated electronic workflows

385

Threats
 Legacy Gharda Chemical Limited policies and legal decisions may lead to
extensive customization, limiting the ability to utilize a commercial off the

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shelf solution
390  Staff expectations for a future system must be managed in the event that not all
requested functionality can be provided
 System functions alone do not solve problems. This requires process redesign,
procedure and policy changes, and changes to roles and responsibilities
 Expectations must be managed regarding the balance between having robust
395 data tracking capabilities versus a simple user interface
 Strong institutional and current system knowledge is concentrated in staff
nearing retirement
 General anxiety about change
 Need for ongoing system support staffing
400  Inherent complexity with data conversion and integration
 Managing the change required when moving from paper-based processes to
electronic processes

405

410

415

420

4.2 Feasibility Study

425 4.2.1 Project Overview And Executive Summary

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 4.2.1.1 Project Background
 Gharda Chemicals Limited (GCL), established in 1967, is a Research and
Development Company manufacturing high quality Agrochemicals, High
430 Performance Pigments, High Performance Polymers. GCL has five
manufacturing units in Dombivli-Mumbai, Lote Parshuram-Chiplun, Panoli-
Gujarat, Ankaleshwar-Gujarat and Samba-Jammu, with a state of R&D centre
at Dombivli. A strong and vibrant R&D program and expertise in process
development has enabled the company to capitalize on superior technology.
435 Company has won several national and international awards for technical
innovation in the chemical industry and has many firsts in the field of dye
stuffs, pesticides, veterinary drugs and polymers. Company has sales turnover
of over Rs.1800 Crores.
Website http://www.gharda.com
Industry Chemicals
Company size 1,001-5,000 employees
Headquarters Mumbai, Maharashtra
Type Privately Held
Founded 1967
Specialties Insecticides, Herbicides,
Fungicides, Pigments, and High
Performance Polymers
Table 4.2.1.1: Table Of Company Profile
440  The objective of the Enterprise Platform Modernization feasibility study was to
examine the strengths and weaknesses of the Gharda Chemicals Limited
primary enterprise systems and functions to determine whether they can sustain
Gharda Chemicals Limited business in the future, or whether it is advisable to
seek an alternate solution.
445  The Gharda Chemicals Limited determined that an ERP feasibility study be
completed to develop a business case to replace the system. Considerations
include:
i. Gharda Chemicals Limited business leaders have decided to modernize and
make every effort to optimize current business systems and processes. 
450 ii. The current Purchase ,Plant maintenance and management accounting
systems are dated and in need of significant enhancement or replacement,

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which presents risks for Gharda Chemicals Limited that require

remediation. 
iii. The needs of several business units are not being met adequately using the
455 current application set, including Human Resources, Procurement and
Capital Management and Monitoring. 
iv. Complaints from the user departments are increasing steadily and business
units are implementing independent workarounds to suit their needs.
v. A significant amount of work is performed outside of the mainframe
460 computer system using either Excel spreadsheets or database programs.
vi. This practice increases the risk that business rules will be applied
inconsistently or data transferred incorrectly. 
vii. There is a great need for an integrated view of core organizational business
functions to quantify the value of enterprise level investment strategies 
465 viii. There are increasing concerns about effectively maintaining private,
confidential employee and retiree data in a manner consistent with data
protection and privacy standards.

4.2.1.2 Project Scope

470  The intent of this project was to perform an assessment of the Gharda
Chemicals Limited current Production Planning ,Sales and Distribution , Plant
Maintenance, Quality Management environment and identify key strategic
options and recommendations. In addition to these core ERP functions, the
project included an assessment of the major best-of-breed and third-party
475 systems used by the Gharda Chemicals Limited . Specifically, the project scope
included conducting project management tasks, reviewing documentation,
conducting interviews and assessing the Gharda Chemical Limited technical
environment to develop this ERP System Feasibility Study for the following
functional areas:
480

i. Physical Inventory
ii. Inventory Management,
iii. Consumption Based Planning
iv. Logistics Invoice Verification
485 v. Purchase requisition,rfq
vi. Purchase Orders,Vendor and Material master Data
 The project scope excluded recommendations for the following specific
systems and processes:

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 i. Customer relationship management (CRM system)
490 ii. Most law enforcement processes that are not associated with budgetary,
financial, payroll, or human resource management.
iii. Court specific processes and systems that are not associated with
pollution, Land purpose, payroll or human resource management.
iv. Project management systems
495 v. Enterprise Asset Management and Fleet Management
vi. Tax Billing & Collection (Real, Personal Property, etc.)
vii. Maintenance management processes and systems
 However, interfaces to many of these systems were included as part of the
study due to the importance of their function in supporting the related business
500 processes covered within the scope of the project. Significant strengths,
weaknesses, opportunities, and threats related to these existing systems have
also been included in this assessment.

505

510

4.2.1.3 Project Approach

The following chart illustrates the approach that was taken in performing the
515 Gharda Chemical Limited ERP Feasibility Study:

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90
 Diagram 4.2.1.3:Diagram Of Project Approach
The project was conducted using a participative and inclusive approach with
significant input from Gharda Chemical Limited management and staff to ensure
520 accuracy, completeness, and ownership of the resulting recommendations.
Participation was obtained through the following activities:
 Defining a Project Management Office to ensure prompt and clear
communication with the Gharda Chemical Limited department staff, manage
project activities, ensure project deliverables were reviewed by the appropriate
525 Gharda Chemical Limited staff, and to provide progress updates to the Gharda
Chemical Limited management and other interested stakeholders.
 Conducting a project kick-off meeting and building awareness around the
project.
 Facilitating weekly project management status meetings to manage project
530 activities and provide status updates.
 Conducting interviews with the Gharda Chemical Limited departmental end
users to evaluate current systems and business processes. Departmental
management was encouraged to participate and invite team members.
 Collection and review of numerous documents provided by the Gharda

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 95

535 Chemical Limited, as well as completed questionnaires by the departments.

 Soliciting input from the participating Departments that included the evaluation
of the following items:
Identification of current systems
Duplicate entry / re-keying of information
540 Issues with / shortcoming of current systems
Strengths of existing systems
Unused features / functionality of Advantage/Spine
Opportunities to interface systems o Unique Gharda Chemical Limited
business rules
545  Vendor interaction
 Current technology project initiatives / Future technology projects
 Requesting and collecting data which was used to develop a total cost of
ownership (TCO) analysis.
 Developing this ERP study
550 The overall goal for implementing new technology not only focuses on the
technology itself, but also aims to enhance existing business processes performed
by individual departments across the Gharda Chemical Limited. Technology is
intended to enhance departmental business processes by:
 Making them more efficient
555  Making them more effective
 Improving decision-making
 Providing enhanced customer service to both internal and external
customers Improving access to information
 Streamlining processes to reduce costs.
560 The intent of this ERP Feasibility Study was to define a future course of action for
the Gharda Chemical Limited Advantage/Spine investment and related
applications and side systems.The approach utilized for collecting information
included interviews with primary process and systems owners, IT staff, and the
County department users regarding the existing technologies and processes.
565

4.2.1.4 Summary of Observations

Key Findings
Overall, the key findings and opportunities are further described both in summary

32
 and in detail in the Current State Assessment section of this report, however we
570 have summarized the findings and opportunities in this Summary of Observations
section as presented below.
 Some Modules of current Gharda Chemical Limited Systems not Fully Utilized
 Data Integrity and Lack of Real-time Data Accessibility to End Users
 Lack of an Effective Method of Tracking Key Information Has Led to the
575  Implementation of Manually Intensive, Redundant, Systems and Processes
 Enforcement of Policies and Procedures
 Reliance on Intensive Paper-Based Processes
 Lack of Integration Between the Core Financial System and Standalone
Systems is Significant
580

Opportunities
There were a number of consistent themes throughout each of the functional areas.
The unmet needs which management and staff from Department throughout the
Gharda Chemical Limited consistently expressed as opportunities for
585 improvement, are summarized as follows:
 Review of Gharda Chemical Limited Position Control policies and procedures
and better integration between the HR and Budgeting systems.
 Full integration between all modules, allowing for the reduction of side
systems.
590  Real-time, immediate update and access to the financial and human resources
information (with appropriate access rights).
 A consolidated system with user-friendly features (e.g., easy navigation, drop
down boxes,drill down functionality, validation of data upon entry, etc.) that
offers on-line help functions and customized system documentation.
595  User-friendly, user-driven and flexible reporting tools with distributed,
securitized access to all users. This should support the information needs of
executive staff and the County Board.
 Thorough position-specific training on the system, users need to learn not only
what they need to do on the system, but the ramifications and the logic
600 underlying the transaction,understanding the big picture, as well as the detailed
specifics of each job.
 Elimination of paper-based processes and replacement with automated, online
workflows and approvals
 Streamlined business processes incorporating established best business
605 practices.

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100

 Self-service capabilities and other “e-government” opportunities such as

manager self service, employee self-service, remote time entry and mobile
workforce capability.
 Performance measurement and improved reporting capabilities.
610
While some Gharda Chemical Limited employees are comfortable with specific
current systems and are able to obtain necessary information from them, PRIMUS
Tech systems Pvt Ltd consultants identified many who are dissatisfied with the
current environment, from the end-users who work with the systems daily, to the
615 managers and other stakeholders who have difficulty receiving timely and accurate
information regarding the Gharda Chemical Limited financial condition as well as
employee performance. The lack of interfaces between multiple systems in the
current environment, the lack of an effective reporting tool available to end-users,
and the dependence on antiquated and an out-of-date paper-based environment
620 have left the Gharda Chemical Limited with an array of time consuming and
manual business processes. Overall, the majority of the unmet needs that are listed
above could be met by a public sector-focused ERP system with a common
database.

625 4.2.1.5 Executive Summary of Options and Recommendations

Consistent with project objectives and based on the assessment of the current
functional and the technology environment, PRIMUS Tech systems Pvt Ltd
believes the Gharda Chemical Limited has three primary options in regard to the
strategic direction of a future applications environment, with multiple alternatives
630 within three of the options.

635

Options
Option 1 Status Quo with Baseline Cost Estimate
Option 2a Upgrade Advantage and Upgrade

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 Option 2b Replace Advantage and Upgrade
Option 2c Upgrade Advantage and Replace Spine
Option 3a New best of breed ERP Environment
Option 3b New fully integrated ERP Environment
Table 4.2.1.5:Table Of Options

4.2.1.6 PRIMUS Techsystems Pvt Ltd Recommendation And Next

640 Steps ...…
While small improvements could be made or added to the current applications
which would mitigate the investment required by changing systems, the primary
challenge with maintaining the status quo would be the inefficiencies and lack of
centralized information due to multiple systems and side systems. PRIMUS
645 Techsystems Pvt Ltd does not view long term strategy.
As such, Gharda Chemicals Limited should direct its analysis efforts towards
evaluating the advantages and disadvantages of changing the current environment
to either upgrading the existing primary enterprise systems (and further deploying
and integrating current systems) or replacing them with a suite of integrated ERP
650 modules from an ERP provider.
Given the functional and technical complexities associated with interfacing the
Gharda Chemicals Limited multiple best of breed and standalone systems, as well
as the related need to fundamentally re-implement many aspects of the existing
financial, Purchase ,Plant maintenance and personnel systems, the Gharda
655 Chemicals Limited would be best served to move toward an ERP approach via a
competitive bid process. Overall, this strategy would provide Gharda Chemicals
Limited with the following benefits.

660 1. Opportunity to Leverage Technology for Business Process Improvement

The strategy of moving toward leading ERP packages will lead to the
standardization of business processes across the organization. Because
customization increases both current and future software costs, the Gharda
Chemicals Limited can adopt the “vanilla” processes and best practices embedded
665 in the software. An added benefit of this is greater discipline across departments.

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105
 2. Comprehensive Functionality
The strategy of moving to an integrated ERP solution is to provide the majority of
functional and technological needs of an organization in a comprehensive suite of
670 integrated applications. The major components of an enterprise solution are
accounting and finance; payroll/human resources management and purchasing.

3. Reduce Software Fragmentation

Compared to the multitude of standalone systems that comprise the current
675 technology environment, an ERP would be the backbone of a comprehensive
administrative systems strategy. In addition, the selection of an ERP system will
guide future IT investment decisions, as those investments would need to interface
with the ERP software.

680 Assuming that the results of the study are considered and the recommendations for
system selection and implementation presented in the Recommended Next Steps
section of this report are followed, were commend that Gharda Chemicals Limited
consider Replace Current Systems with a New Fully Integrated ERP Environment.

685

690

695

CHAPTER 5: DESIGN PHASE

5.1 DATA DICTIONARY

Below you can find a complete reference of organizational levels needed for

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110

700 creating material master views.

Material Master View Organizational Levels
Basic data (1 & 2) None
Classification None
Sales organization data (1 & 2) Plant
Foreign Trade – Export data Plant
Purchasing Plant
MRP Views Plant, Storage Location, MRP Profile
Forecasting Plant, Forecasting Profile
Work Scheduling Plant
General Plant Data (Storage 1 & 2) Plant, Storage Location
Warehouse Management 1 Plant, Warehouse Number
Warehouse Management 2 Plant, Warehouse Number, Storage Type
Quality Management Plant
Accounting (1 & 2) Plant
Costing (1 & 2) Plant
Table 5.1:Table of material master views connection to organizational levels

705 5.2 Output Report

Result provide the easy, fast and accurate system for issuing, receiving & and
Report generation of the item transaction in the inventory management system.
Main user interface of inventory management are:

A. User authentication: The use of a password and username is the most common
710 form of authentication used and is generally considered the cheapest and most
convenient method. User authentication is a means of identifying the user and
verifying that the user is allowed to access some restricted service. The server
administrator needs to be able to control access on an individual basis; it is
possible to require a username and password before being allowed access to a
715 document. This is called user authentication. This is the login screen. Here the user
(i.e. the authorized official) will login by using their right user id & Password

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 Diagram 5.2.1:Diagram For SAP MM Module User Authentication

(B) Menu interface of inventory management

720 1. Administrator: A data base administrator (DBA) directs or performs all

activities related to maintaining a successful database environment.
Responsibilities include designing, implementing, and maintaining the database
system; establishing policies and procedures pertaining to the management,
security, maintenance, and use of the database management system; and training
725 employees in database management and use. The following is the interface to
insert record of user management.

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Diagram 5.2.2: Diagram For SAP MM Module Administration

2. Master Data: Most software systems have lists of data that are shared and used
730 by several of the applications that make up the system.Master data may include all
the data about customers, maintenance vendor, vendor, employees, suppliers, Sub
contractor & items. Master data is typically shared by multiple users and groups
across an organization and stored on different systems. Insert record of master
data.

39
735

Diagram 5.2.3: Diagram For SAP MM Module Master Data

 Customer Entry: Maintain the customer list, every customer Details & it can be
save, update, delete & close the entry.
 Maintenance Vender Entry: Maintain the maintenance vendor list, every
740 maintenance vendor Details & it can be saved, update, deletes & closes the
entry.
 Vendor Entry: Maintain the maintenance vendor list, every maintenance
vendor Details & it can be saved, update, deletes & closes the entry.
 Subcontractor Entry: Maintain the subcontractor list, every subcontractor
745 Details & it can be saved, update, deletes & closes the entry.

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120
  Supplier Entry: Maintain the supplier list, every supplier Details & it can be
saved, update, deletes & closes the entry.
 Employee Entry: Maintain the Employee list, every employee Details & it can
be saved, update, deletes & closes the entry.
750  Item or product Entry: Maintain the product or item list, every item details & it
can be saved, update, deletes & closes the entry.

3. Transactions: A transaction is an agreement, communication, or movement

carried out between separate entities or objects, often involving the exchange of
items of value, such as information, goods, services, and money. Transaction in the
755 stores management classified is three types;

A- Receive material

In this Entry receive of item party wise, date wise & it can be new MRN, save,
update, delete & close the entry.

41
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760 Diagram 5.2.4: Diagram For SAP MM Module Create Material

42
 Diagram 5.2.5: Diagram For SAP MM Module Purchase Order

B- Issue Item in House

In this entry issue of item in house according to the party and date wise

765 C- Issue item in outside

In this entry issue of item in outside according to the party & date wise such as:
Supplier, vendor, customer, maintenance vendor, & it can be new issue, save,
update, delete, and print & close the entry

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770 Diagram 5.2.6: Diagram For SAP MM Module Goods Issue

4. Report: Report generation is used to drive the statistics of the issues inventory
database Based on the required parameters. Transaction reports list details for issue
and receive transactions items in a specific date account over a specified period,
Stock Statement for particular items. Report generation classified three types:

775  Stock Statement:Stock of item statement report generates according to the

item id or item type.
 Issue Register:Issue of item according to the party wise between two specific
dates
 Receive Register: Receive of item report generate according to the party wise
780 between two specific dates.

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 Diagram 5.2.7:Diagram For SAP MM Module Register Data

785

790

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135
 Chapter 6: Future Enhancements
795  The cloud-based ERP systems are now taking over the traditional methods of
managing data and processes because of its various advantages such as provide
enhanced data storage capacity, security and control, give a real-time access
from anywhere, reduced hardware & server cost etc.
 Mobiles-based ERP system - It will have various advantages compare to
800 traditional ERP System such as faster decision making, Greater operational
efficiencies, Improved communication and collaboration,anytime access to
enterprise, business and manufacturing intelligence, improved workflow and
expedited approval process, improved responsiveness to customer and prospect
needs and inquiries etc.
805

810

815

820

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CHAPTER 7 -RECOMMENDATION & CONCLUSION

7.1 Recommendation

It is well established that quality implementation ERP software is an asset of any

825 organization. For modern business technology it should implement in every
organization for develop competitive advantage. For properly implementation of
ERP system of an organization following recommendations are made:

 It controls all the business processes of an organizations, it should be user

friendly and understandable for the employee.
830  Understand the organization needs and Management requirements from the
system to develop the software.
 Need proper training for the employee and all the process flow should be
documented.
 Maintain security of the system and give Limited access as per his/her
835 requirement.
 Maintain the system maintenance properly.

7.2 Conclusion

 Prior research has pointed out different benefits of using such systems. Some
840 researchers have claimed that ERP systems encourage economic growth, as
ensured by return on assets (ROA), return on investment (ROI), and asset
turnover (ATO) that organisations do not implement ERP systems to achieve
such benefits but rather to deal with their outdated legacy systems.

 Others have argued that ERP can be part of achieving a competitive advantage
845 in some situations the reported benefits of ERP systems have been weakened
by research conducted which revealed that many utility companies attained less
than 50% potential value from an ERP implementation.

 Explain how ERP users have reported drawbacks with the lock-in of their
organisation’s processes and principles into a specific software solution. If the
850 organisation fails to merge the business requirements and the technological
aspects of the ERP system, there may be a conflict between the system logic
and the business logic. If there are shortcomings in the service and product

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 delivered, there may be an extensive switching cost as well as the costs to
combine the ERP system with other software products .

855 CHAPTER 8: REFERENCES

 Wisner, Leong, and Tan, Principles of Supply Chain Management: A Balanced
Approach (3rdEdition)

 Ellen Monk&Bret Wagner, Concepts in Enterprise Resource Planning (4th

Edition)

860  http://www.gharda.com

 http://www.lawson.com

 http://www.infor.com

 http://www.datawatch.com

 https://en.wikipedia.org/wiki/Enterprise_resource_planning

865  http://www.alzheimer-europe.org/Research/Understanding-dementia-
research/Types-ofresearch/The-four-main-approaches

 https://www.coursehero.com

 http://go.sap.com/product/enterprise-management/erp.html

 https://www.microsoft.com/en-us/dynamics/erp.aspx

870  http://www.webopedia.com/TERM/E/ERP.html

 http://www.sage.com/us/erp

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