NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: Enterprise Resource Planning
Internal Assignment Solution for June 2023 Examination

Q 1. Sparsh Hospital (Orthopedic) required a robust business management solution to

get the most efficiency and results from their team of medical professionals across
multiple branches. The lack of system integration made processing bulk data volumes
slow and prone to errors. Manual reporting was inefficient and not possible in real-time.
Additionally, the existing laboratory information management system (LIMS) software
led to duplicate data and processes. Spars Hospital wanted to eliminate these errors by
using an ERP system. As a consultant to Spars hospital, what are the benefits of ERP
packages that you will highlight to the management to overcome the challenges faced by
them? How will you ensure that the implementation goes smooth, costs are saved rather
than wasted?

Solution: -

Introduction: -

An ERP system aids in ensuring a free flow of data regarding the acquisition of raw
materials, product conditioning, supply chain, etc. Similar data gives an organisation a
good notion of lead time and cycle time. The prosperity of organizations has greatly
benefited from the use of ERP systems.

Concept & Application: -

The following are some benefits of ERP for a business.

Shortened Lead time: The period of time between the start and finish of a procedure is
referred to as lead time. For instance, 20 twinkles are regarded as an exceptional amount
of time when you order meals from your local restaurant and receive it in that amount of
time. By providing correct information about order placement, delivery status, etc., an
ERP system reduces lead time.

Lower total expenses: As has been mentioned, an ERP system anticipates job
duplication and minimizes force situations, which ultimately decreases an association's
overall operating costs.

Increased transparency: Different departments within an organisation can easily access

information contained in an ERP system. For instance, the product department of a
company can access marketing-related data and similar product demand from the request.
Similar data aids in the product department's determination of the product's position. This
promotes visibility within a company and well-informed decision-making.
 Decreased cycle time: Cycle time is the amount of time needed to accomplish a specific
task from beginning to end. Supereminent time and cycle time are two separate concepts
that are sometimes confused. From the standpoint of the customer, lead time is crucial
since they need their products delivered promptly. However, from the perspective of an
organisation, cycle time is important since it must deliver products on schedule.
Supereminent time is yet reliant on cycle time. This is due to the fact that a product can
be shipped right after it is manufactured. Consequently, shorter lead times could result
from shorter cycle times.

Enhanced performance of suppliers: In terms of on-time product and quick delivery of

products, an organization's success depends significantly on a timely force of raw
materials. An ERP system is ideal to provide information on raw material conditions,
supplier selection criteria, damage, and raw accessory verification. In turn, this fosters
close relationships between a company and its suppliers.

Following are the key justifications for enforcing ERP systems:

- Improves business performance: ERP aids in reducing manufacturing cycle times,

excluding forced storeroom issues, and accelerating order fulfilment.
- ERP boosts an organization's deals through CRM, and deals force the automation of
operations.
- Productivity is increased because ERP allows an organisation to function more
efficiently with fewer employees.
- Increases the efficiency of corporate operations Business processes are automated by
an ERP system, and non-value-added conditioning is removed. Additionally, an ERP
system enables a business to adapt to visitors' needs, which lowers labor and carrying
costs.
- Uses the funds that are already available ERP methods enable effective use of
Organisational funds, just like with capital and human resources. An ERP system
assists a company in gaining a comprehensive understanding of all resources so they
can be used even more effectively to increase business effectiveness.
- High level of security: The fiscal and customer information that is crucial to a
business is secured by an ERP system.
- Unauthorized drug users are unable to access any crucial information that could
endanger the organisation thanks to an ERP system.
- Standardizes commercial procedures: An ERP simplifies an organization's business
procedures, preventing errors, inconsistencies, and delays in work processes.
- Incorporates financial, strategic, and tactical intelligence: An ERP system integrates
and evaluates data from all Organisational areas, providing crucial functional,
financial, and strategic insight that ultimately results in sound decision-making.

The following are the many stages of the ERP for efficient execution.
• Preliminary evaluation: The available ERP systems are all assessed in this step, and only
those that meet an organization's requirements are shortlisted. Packages are excluded if
they don't fit the requirements.
• Package evaluation: All of the shortlisted ERP systems are thoroughly examined in this
step. This stage is seen to be absolutely necessary for an ERP system to be implemented
successfully. The cost, duration, and quantity of drug users are the main factors
considered while evaluating a package.
• Project management: At this point, a thorough plan is created for carrying out the ERP
procedure. The design plan details the funds required for perpetration, the schedule for
finishing the perpetration process, and the goals that must be met by enforcing the ERP
 system. This phase also includes selecting control methods and styles for the ERP system
evaluation as well as creating a backup plan.
• Analysis of gaps: This stage of the ERP perpetration process is crucial. Gap analysis is a
crucial step that aids an organisation in finding discrepancies between its present
situation and future goals.
• Re-engineering: Business procedures are reorganized, workstations are switched, and
new technologies are deployed as a result of the development of ERP. ERP therefore
causes process re-engineering. Business Process Re-engineering (BPR) is integrated with
the ERP system through re-engineering.
• Configuration: This stage of the ERP perpetration process is functional. The ERP
systems and the being systems are in harmony. To accomplish its ultimate goals, an
organisation needs properly evaluate all of its operational business processes.
• Training: Workers receive instruction on how to use the ERP system during this period.
Merchandisers and outside advisers quit the company when the ERP system was
implemented. Therefore, in order to prepare for potential eventualities, an organisation
must grasp every single aspect of the ERP system.
• Testing: This phase includes the creation of actual scenarios to verify the colorful ERP
processes. These circumstances may be caused by data entry errors, system overloads, or
hacker attempts. The ERP system should be reevaluated in the event that some
conditioning fails during the testing phase.
• Becoming live: It's the phase where the old ERP system is replaced with the new one.
Worker access to the live system is now permitted as the ERP system is technically and
functionally ready for use.
• Post Implementation: A consistent follow-up record is kept for the efficiency of the ERP
procedures. Processes for conservation and improvement that are carried out based on the
ERP system's performance reports are largely included in this stage.

Conclusion: -

Relinquishment and execution of ERP can be valuable. On average, organizations

invest more than $1 million in a new ERP system, depending on the volume of
customization they require, the number of processes they require, and the amount of drug
users who breach their system.
ERP can cut executive costs by 22 and overall functional costs by 23. That represents
a considerable long-term savings. While functional savings could be a motivating
incentive to investigate ERP abandonment, good ERP programmes can accomplish more
than just save the plutocrat.
Q 2. You have joined an online food aggregator as the CEO in the month of April 2021.
The group had implemented an ERP System which went live in the month of November
2020. Also, few key members who were a part of the implementation team, left in
between. After 1 month of joining the group, you found out that the ERP system
implemented is not being used at its full capacity and also there is lot of resistance from
the users. The President/MD has already invested time and money in the ERP system. As a
CEO, you have to present the updates and findings to your MD. You seek answers to the
following questions: What could be the probable reasons before or during the
implementation that were not identified at that time, that led to the poor usage of the
system? You, have to present a future plan to make the use of the system among users a
hit. What will be your approach and strategic plan?

Solution: -

Introduction: -

The post-implementation stage of an ERP system's lifecycle is crucial. It's a

continuous process that typically begins once an organisation has successfully
implemented the ERP system and trained its employees to use it. The post-
implementation stage involves a number of processes, such as monitoring the
performance of the ERP system and keeping a thorough follow-up record; facilitating the
system's seamless integration with all Organisational work processes; training employees
on how to use the ERP system to its fullest potential; and taking the necessary steps to
further improve its performance.

Concept & Application: -

Every organisation encounter difficulty when it adapts to a new system. A new ERP
system's implementation is not a specialized task, but it does involve extensive planning
and effective communication.
The following are typical difficulties encountered throughout the commission process.

• Steps that must be taken: All aspects of the perpetration process should be followed
by the ERP. If an organisation follows the phases in random order, it creates a chaotic
condition that further confuses the organisation.
• Training: Employees must receive training both during and after the perpetration
stage. This is due to the fact that training promotes employee trust and collaboration
in pre-articulation settings like unstable employment or functional inefficiencies.
• Inadequate analysis: A company must evaluate its circumstances for effective ERP
implementation. This is due to the possibility that the company may not be able to
choose the appropriate ERP system if it does not assess its conditions.
• Lack of backing from the senior management: The implementation of an ERP system
requires the support of top management. Ineffective decision-making may result from
a lack of support from senior management.
• The compatibility of ERP components: Any system incompatibility issues in ERP
procedures provide a serious challenge for enterprises. Different businesses
collaborate with various ERP merchandisers; as a result, it is their responsibility to
resolve any interpersonal conflicts.
• Infrastructure investment: Investments in the creation of Organisational structures are
crucial for the implementation of ERP. The development of applications is slowed
down by a lack of appropriate structure. This has the additional effect of destroying
coffers.
• The success or failure of any ERP design depends on the vendor chosen by an
organisation to purchase software, which is fragmented from the execution process.
The following variables are cited as contributing to the success of ERP exploitation:
• Pay attention to company conditions and processes: An organization's focus on
reviewing business processes and identifying essential requirements aids in the
formulation of a more efficient selection process for ERP software.
• Strong commitment to design, operation, and resources: The top operation is essential
in providing the resources required for ERP implementation. Directors and
employees must cooperate and work together for ERP implementation to be
successful.
• Appropriate planning: An achievable strategy for implementing an ERP system
should be considered. As a result, fewer crimes would be committed and the
procedure would be simpler. The business advantages of ERP are maximized by
having a clear grasp of business objects and a suitable vision of what to accomplish
with an ERP system.

The good news is that if you approach your ERP implementation with a well-
designed strategy and a realistic plan, you'll truly see success. If you want your ERP
deployment to be successful, there are several crucial design principles to adhere to in
order to ensure that everything goes smoothly and that you get the most out of your new
system.

1. Choose the best design team

Create a successful design platoon for ERP implementation. Typically, these are
representatives of significant corporate groups who are knowledgeable about business
operations, sociable, and well-liked by administrative staff. A design director and an
administrative guarantor should also be part of your platoon since they may aid in setting
business precedents, gaining further support, and raising additional funds as needed.
Assuring that the ERP design is completed on schedule and within budget should be the
responsibility of this platoon.

2. Establish conditions and KPIs that are clear:

The objectives of your ERP perpetration should be crystal obvious to your platoon.
Establish clear guidelines that support your professional aspirations. Assessing what you
want to negotiate and how each company procedure might be improved is crucial.
Choose specific important performance pointers (KPIs) to track and measure the success
of your ERP perpetration once you have a firm grasp of the critical conditions.

3. Choose the Proper ERP Execution Partner:

A successful ERP heist also requires the assistance of your ERP partner. Look into and
select an ERP partner who not only has the grit and expertise you require but who also
lives with the core ideals and aspirations of your business. When choosing a partner, look
into and ask for recommendations from their clients, and make sure they are aware of
how your ERP system can help your company processes. Finally, find out if they can
provide training and support following the launch of your software.

4. Throughout, collect feedback from stoners.

For a smoother deployment, get feedback from your end-users during the entire
perpetration process. This will assist you in comprehending how employees
communicate with one another, go about their daily tasks, and deal with early-stage daily
challenges. Feedback will also aid in directing the offender so that the system can cater to
the needs of actual stoners. After the go-live, end-user feedback can help find the issues
and provide suggestions for future improvements.

5. Ensure the integrity of your data

How pristine are your data? It's fashionable to start evaluating the fragility of your data
up front because it's a crucial component of successful design. Since the master data
influences all phases of ERP implementation, including testing and training your end-
users, it must be full and correct. Establish harmonious data delineations and formats
before a data migration, and confirm that your entire organisation uses harmonious data
practices.

6. Create a change management strategy.

Your employees will become accustomed to the new ERP system more quickly and with
a higher success rate if you have a solid change operation strategy in place. A corporation
should establish the right expectations in advance of the execution phase for an effective
change operation. Establish a dispatch strategy for stakeholders, identify who will be
impacted by the change, and explain what will change along with strong business
justifications. provide regular design updates and outline each hand's chances of success.

7. Guarantee training and assistance

A good training programme for employees, based on their locations of case, should
include design platoon, IT platoon, business stoner, etc. training. A continuous training
programme should be in place for when new employees join the organisation. After the
go-live date, having the right support is also essential because your employees will
encounter problems and have inquiries.

Conclusion: -

An ERP system's implementation will always have its own set of difficulties and
difficulties. Your experience will be much smoother and easier to manage if you have a
team of implementation partners with experience.
Q 3. A. Compare the pros & cons of pre-packed software versus customized software.
Explain any two emerging trends that are currently integrated in ERP packages.

Solution: -

Introduction: -

Customized Software
Software that has been specially created for a certain organisation or stoner is known
as customized software. It is typically developed to meet a particular purpose that isn't
covered by off-the-shelf software. Since customized software is built to meet specific
requirements, it is more productive and effective than off-the-shelf software.

Packaged Software
Software that has already been packaged and is prepared for installation is referred to
as packaged software. Typically, this kind of software is sold online or in a box. Software
of this kind is also referred to as shrink-wrapped software.
The advantage of packaged software over other types of software is that it is simpler
to install and operate. This is because the software's instructions are simple to
understand. Like thus, packaged software is typically built to run on a number of devices
and OSes.

Concept & Application: -

Both packaged software and customized software have advantages and disadvantages.
Then, there are certain effects to think about when selecting a choice.
- Cost: Software that is specifically tailored to a customer's needs may cost more to
produce initially but end up being more affordable overall. Package software is
typically less expensive to purchase outright but may incur additional maintenance
and support charges.
- Flexibility: Software that has been specifically created for a client can be more
adaptable. Package software tends to be more restrictive but may also provide greater
features and capability.
- Support: Customized software could be eligible for additional support from the
development team, but package software typically comes with additional support
options from the seller.
- Scalability: Because it is tailored to a particular requirement or environment,
customized software can be trickier to evaluate. Since package software is intended
to be utilized by a larger user base, it is typically more scalable.
- Security: As it is made specifically with stoners' needs in mind, customized software
can be more dependable and secure than packaged software.

Trends in ERP

Digital Marketing
Marketing for goods and services is more significant. To reach more people, the
marketing process needs to be effective and automated. The planning and development
of the company's campaigns is assisted by ERP solutions. Additionally, it offers the
matrices needed for effective marketing communication. The company may more
precisely identify its target audiences thanks to the ERP solution.
 Internet of Things (IoT)
Workflow is being accelerated by ERP's automated cross-device support for the
Internet of Things (IoT). To improve workflow effectiveness, operational excellence, and
decision-making precision. It assists in making overall processes more personalized.

Conclusion: -

In light of the aforementioned elements, it is clear that custom software is created

especially for a client or customer as opposed to packaged software, which is ready-made
and available for purchase in stores. Furthermore, because it is made specifically for each
user, custom software is typically more dependable and effective than packaged
software, while costing more to create.
Q 3. B. What are open-source ERP packages. Explain the features of any two open-source
ERP packages.

Solution: -

Introduction: -

An enterprise resource planning system having readily accessible source code is

known as an open-source ERP system. Instead of relying on the supplier, businesses can
circumvent the open-source regulation for free and customize the software themselves.
Most ERP findings are of a personal or unrestricted nature, and visitors are not permitted
to violate this rule.

Concept & Application: -

The need for open-source ERP results has been made repeatedly. Then there are a
number of the best merchandisers.

With more than 30 major modules and more than 16,000 third-party apps, Odoo is a
complete open-source ERP system. There are two versions of the open-source software:

Odoo Community and Odoo Enterprise.

Application and upkeep of the Odoo Community are free on-premises. It covers
introductory lessons for marketing, client relationship management (CRM),
manufacturing, force, mortal coffers, and design operations.

Dolibarr ERP & CRM

Associations can manage their company operations with the aid of Dolibarr ERP &
CRM. Inventors can install the source law on their waitstaff and modify it to meet the
needs of their business. The core parts of Dollibarr, which include CRM and deals,
mortal coffers, finance and invoicing, and marketing, are built on a modular structure.
Although the open-source software is free, some of the modules and plugins offered by
the DoliStore company could cost a small amount.

Benefits of open-source ERP software, its drawbacks, and leading retailers:

Enterprise resource planning (ERP) solutions are being used by organizations to

streamline their operations more than ever. The results from each individual account,
manufacturing process, and deal encourage efficiency and cooperation. However, the
price tag of an ERP result may be out of reach for some firms.
For many firms, especially small and medium-sized enterprises (SMBs), open-source
ERP software offers a more affordable option. Companies can only pay for the features
and customizations they require because it is flexible and modular.

There are many benefits to selecting open-source ERP software. Here are some other
advantages.
- Most affordable ERP results contain a wide range of features and modules in their
price. Open-source ERP systems, on the other hand, only have basic capabilities.
Companies have the option of adding free modules or paying for individualized
functionality.
- easier to measure
- Considering future scalability when choosing an ERP solution is one of the main
issues. Many expanding businesses discover too late that updating their software or
increasing the number of drug users necessitates costly reimplementation.

Conclusion: -
For many firms, especially small and medium-sized enterprises (SMBs), open-source
ERP software offers a more affordable option. Companies can only pay for the features
and customizations they require because it is flexible and modular.

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