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- 1 (60 Marks) Q1.Why are ERP systems said to be flexible? Explain with an example. ERP System Flexibility A flexible ERP system can bring consistency and profitability to your company. A flexible ERP system allows your business to respond rapidly to any changing condition - it lets your business provide any company department or employee with the data required to improve decision-making, regardless of whether data is needed from one or several systems. ERP System Flexibility Benefits Choosing the right ERP system allows you to transfer your business processes onto your business systems, offering the consistency and timeliness to manage variability. This eliminates the need and high cost of integrating your existing systems. Also with effective ERP systems manual processes are eliminated as there’s no need for time-consuming and unreliable paper-based procedures. ERP systems allow data to flow easily throughout your operations the moment it appears in your systems. This provision of timely information allows for a quick and efficient response from every employee in your company. With ERP systems manual, makeshift processes are replaced with well-organized ones allowing for overall business flexibility and effectiveness. ERP systems allow increased visibility into real-time processes which enables prompt ordering of the right goods and materials. Q2. Explain with an example the concept of supply chain management? Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed).
Q3. or data warehouses. payment schedules. and includes key suppliers. and consignment and title ownership arrangements. and allow all parties in the supply chain to better manage current resources and plan for future needs. at several different sites and companies. The financial flow consists of credit terms. Planning applications use advanced algorithms to determine the best way to fill an order. and financial information involving all parties. the management of materials. the comparison between Commercial and Open Source ERP software systems.As a solution for successful supply chain management. Study concludes commercial ERP software’s are suitable only for big corporations and open source business software should be the choice of small and medium scale industries. Briefly explain the key principles to a proper ERP system selection process. By sharing this data "upstream" (with a company's suppliers) and "downstream" (with a company's clients). Differentiate between Open Source and Commercial ERP. This study has been made considering different parameter. Some SCM applications are based on open data models that support the sharing of data both inside and outside the enterprise (this is called the extended enterprise. Know what is open source ERP before . A number of major Web sites offer e-procurement marketplaces where manufacturers can trade and even make auction bids with suppliers. This shared data may reside in diverse database systems. Increasing numbers of companies are turning to Web sites and Web-based applications as part of the SCM solution. manufacturers. SCM applications have the potential to improve the time-to-market of products. and end customers of a specific company). There are two main types of SCM software: planning applications and execution applications. Supply chain management flows can be divided into three main flows: • • • The product flow The information flow The finances flow The product flow includes the movement of goods from a supplier to a customer. as well as any customer returns or service needs. sophisticated software systems with Web interfaces are competing with Web-based application service providers (ASP) who promise to provide part or all of the SCM service for companies who rent their service. The information flow involves transmitting orders and updating the status of delivery. reduce costs. Execution applications track the physical status of goods.
Flexibility When you compare commercial and open source ERP.The time allotted for implementing open source ERP is very less when compared with commercial ERP. They let business with no other choice but to change their way of business. commercial systems are not flexible in nature. • • • • • • • • • • Pricing Flexibility Duration Dependence Results Training Security visibility Ease of integration with current systems Longevity Pricing Most open source software is freely distributed with no up-front licensing fees. Commercial ERP is an expensive package and suitable only for bigger corporations. you should not change the way of your business to fit into software needs.proceeding with this study. These packages are not subject to flexibility and molding. In any cases they have been found to be extremely costly irrespective of the quantum in which they are purchased. It consumes a lot of time not . With free systematic open source ERP training methodology like SOSE! site you can own your software for no cost. This is a major difference between commercial and open source ERP applications. However when it comes to open source ERP everything was decided by the code . Their usage modalities are rarely liberal and cause troubles when they are modified. Further savings come from ease of deployment. You should use business software for your needs. The prices do vary significantly but according to the size of the company and volume of business. Another major allegation against the package is that they consist of lot of hidden costs. Another advantage of open source is that it does not interfere with the regular schedule of the company during the implementation stage. Study has been made on following 10 factors while comparing commercial and open source ERP software’s.Therefore companies can do the necessary modifications in code and without much support from the vendor. Companies that implement open source ERP solutions often report a 50% savings over proprietary systems. in the future. training and integration. The innumerable number of complexions in commercial ERP calls for longer time span. Duration When you study commercial and open source ERP. Hence the deployments also turn out to be costly and inconvenient due to the procedures involved.
Since open source is license free users have full freedom for taking care of needs by themselves.only during implementation but in every stage of ERP process due to the nature of work involved. But when the need arises. Read open source ERP success stories for more details. directory services and storage arrays. It calls for lots of investments in terms of time and money. The results are also bound to be effective because the user gets to learn through the process of self training. This is another way of reducing the level of dependence on the ERP vendor. If they don't give the necessary impetus the results will be poor. The company need not spend much on training and makes a minimal utilization of the resources. from warehousing to accounting. With use of SITE ERP implementation methodology you can reduce time required for open source ERP to the minimum. Similarly validity of training sessions designed and handled exclusively by the ERP vendor is also debatable. including support for . Results Success rate of open source ERP are considerably more compare to proprietary ERP software’s. They are by and large prone to the traps and pitfalls of hackers. Security On comparing commercial and open source ERP applications. Open source customers enjoy a refreshing level of transparency from their vendors around activities such as bug reporting and fixing and road map planning. visibility Few end users change the underlying code of an open source application. Open source solutions are compatible via standards-based interfaces with multiple technologies. Ease of integration with current systems ERP solutions touch every aspect of a company. Even though open source ERP makes everything transparent and available in the public domain it bring into the notice of user whenever something goes wrong. You can get free online ERP training with SOSE!. Training Lots of training is required for using commercial ERP. On the other hand Open Source ERP does not require much training. The productivity is also high in open source ERP systems and the failure rates are very low. Dependence When it comes to the question of relying on the vendor the open source ERP owners enjoys a considerable edge than the commercial ERP. As such. a company’s ERP solution should easily integrate with existing IT infrastructure components. Commercial ERP systems are less secure. open source provides access to the code to make changes to suit each distributor’s unique business needs. such as application servers.
so that support customer-oriented design is an important feature of the production process and components. production volume is small.lowest-cost commodity operating systems. you can quickly assemble the products according to orders sent to the customer. you need different people to complete. is largely a product of a particular customer's requirements to design. databases. a solution can never be bought or merged out of existence. Unforeseen opportunities will likely drive changes to a business’ objectives and necessitate changes to its ERP solution. 60. Independent services for ERP implementation support is also available for free with open source ERP. A computer-aided machine helps complete the job quickly and with precision. but design work and final products are often very complex. Because most products are tailored for specific customers. so that when the customer order arrives. Therefore. Q4. Because the user has the source code. Of course. Moreover the working area required for 40-50 people . In manual cutting. meaning the investment lasts as long as needed. What is ATO and how is it different from ETO? List the advantages of CAD/CAM. An open source solution with a flexible foundation addresses today’s needs and safeguards the solution’s future. In this production type. In this production type. because each task may have different operations. but time is the true test of every ERP solution and vendor. utilities and hardware. parts or products the customer is given some configuration requirements. Independently. The same. manufacturers must maintain a certain amount of spare parts inventory. a vendor’s commitment to supporting a solution could change over time. For instance. every job should be special treatment. In this production type. with one CAD system. in addition to a special addition to the product-specific materials are also shared some of the raw materials and other products. In the production process. not the same as the cost. This requires the use of certain types of configuration system for rapid data access and processing orders. The time consumed and the chance for errors in manual pattern making and cutting is more. so these products may produce only once. there will be a difference from one piece to another. and then organized according to customer demand for products assembled to meet customer needs. the manufacturer according to customer requests for customized products. Longevity Virtually any ERP solution will work well when initially deployed. in the shortest possible time in order to assemble a wide variety of products. one cutter and two fabric spreaders with three tables of 20 m.000 pieces of undergarments can be cut in eight hours with less than ten people. if done manually would require 40-50 people. Manufacturers must have a good number of different components and prepare flexible assembly plant.
5 cm cutting height for higher productivity as more layers can be cut in a single cut. The state-of-the-art quality management is an embodiment of concepts. The quality . 2. The major sub-system of plant maintenance module in eresource ERP comprises of: 1. How does the plant maintenance module help in achieving competitiveness? Write a note of Quality Management. The time has changed. The spare parts are available locally and users need not depend on the company for spare parts. Assyst-Bullmer speader comes with a capacity of 100 kg which means less loading and unloading and better productivity. machine breakdown and idle repair is no more accepted practice. retain and enlarge customer base in the modern business scenario. Achieving customer satisfaction is the essential business of business and quality management is the most effective enterprise strategy. The spreading speed at 120m/minute is also high compared to other brands. While other brands of spreaders have less capacity. The plant maintenance module covers all equipment / machines of the plant. The maximum cutting speed is 90m/minute and effective cutting speed of up to 20m/minute gives more productivity.technology and metallurgy . methods and . Q5. Fabric roll diameter of 500mm gives flexibility of production planning besides enhanced production. 3. Assyst-Buller has rightly addressed this need and all the operational tools are very simple and user friendly that anyone can operate the machine. Moreover. Quality Management: Quality is considered as the most powerful factor to capture. This reports help you to reduce the duration and cost of downtime.is very good. there were not much takers as the operational features were complex. Assyst-Bullmer cutting machine is equipped with 7. Even as the CAD/CAM machines were available for a long time. The power consumption (14 KW) is very low compared to that of machines by other competitors. 4. The plant maintenance module in eresource ERP provides an integrated business reports. Preventive Maintenance Control Equipment Tracking Component Tracking Repair and spare parts maintenance warranty claim tracking. the machine is maintenance free. All maintenance tasks such as inspection. servicing and repair activities are saved in a historical database. The plant maintenance module in eresource ERP provides an integrated solution for supporting the operational efficiency. The machine is provided with a zigzag device with movable and fixed end catchers to accommodate open fabric.will be huge.
low inventory. Purchasing – Warehouse inventory management. and thankfully. which necessitates understanding and managing various dynamics in an organization in order to set goals and judiciously deploy resources. Explain the working of Warehouse Management and Purchase department with an example. their metrics and the organizational achievement are influenced by how well an organization deals with issues related to quality. Automation in The Warehouse Inventory One of the biggest problems in warehouse inventory management is the lack of automation. in a properly automated system. and directly impacts several areas. labor-intensive warehouse process that adds more costs than necessary. low unit cost etc. Basic warehouse processes may start with receiving inventory for manual verification and manual update of computer records. The result is a poor bottom line. The efficiency and effectiveness with which resources are obtained and utilized will depend upon the good management practices that the organization follows. Interrelationships among the business processes. In the last few years. and consequently avoid lost orders. the business world has stood witness to many real life success stories. as there are many conflicting goals such as high customer service.applications. Planning and achieving higher level of quality is fundamental to the successful operation of enterprises. will be integrated with the purchasing department. Proper warehouse inventory management will ensure that those orders are ready to ship. an automatic trigger will be sent to the purchasing department for requisitioning more. The fulfillment process you have in place reflects on the business as a whole. the corresponding invoices can be sent faster. monitors and improves different metrics related to the business processes. Customer Service – Customers can be demanding and expect their goods to be readily available without back order or delay. a warehouse management system allows a company to be more competitive by implementing processes that involve RFID and . Quality management also necessitates how well the system measures. A number of innovative approaches are required for balancing the objectives of the partners of the enterprise and the requirements of customers. so that when a certain item is low in stock. and this in turn leads to an error-prone. including: • • • Invoicing & Accounts Receivables – When inventory is available. Q6. and the distribution center can fulfill it on a timely basis.
which analyzes the warehouse data and sales records to accurately predict needs. usually using RFID tags or other similar technology. minimizes errors. it will be scanned in and verified against purchase orders in real time. Beyond that. as invoices will not get paid as expected. since the company will bear the cost of shipping out the correct item. This not only results in a dissatisfied customer—who may not make repeat orders in the future—it also results in higher freight costs. while also getting inventory into the records faster. resulting in immediate updates. And what happens in a warehouse environment that lacks automation? First and foremost. the error rate is high. The Purchasing Department Managing warehouse inventory properly will also have a major impact on the purchasing department. there is less incidence of picking the wrong item. and eliminating the need for redundant data entry. Implementing this level of automation will give the purchasing department up-to-the-minute information on quantities that are needed. Bringing in a new level of automation into the warehouse and streamlining warehouse inventory processing will just mean better business overall. . there is a higher likelihood that the customer will get the wrong item. The automation. and because the process is manual. This strategy improves efficiency. because the picker is using a bar code scanner in real time. and lowers costs. and also longterm information about usage patterns that will help in making future buying decisions. since any time a shelf is consolidated or inventory is moved. also results in faster and more efficient picking. it will result in weaker cash flow. when inventory is received. the company pays too much for the warehouse operation. The warehouse inventory system may be integrated with a forecasting system. so that the computer stays up to date on the location of every pallet. In this automated environment. Shipments may be incorrect. Also. But beyond that. it can be scanned before and after moving.other automation technologies.
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