Enterprise Resource Planning

ERP
Enterprise resource planning (ERP) systems integrate internal and external
management of information across an entire organization—embracing
finance/accounting, manufacturing, sales and service, customer relationship
management, etc. ERP systems automate this activity with an integrated
software application. ERP facilitates information flow between all business
functions inside the organization, and manages connections to outside
stakeholders.
Organizations consider the ERP system their backbone, and a vital
organizational tool because it integrates varied organizational systems, and
enables flawless transactions and production. However, an ERP system is
radically different from traditional systems development. ERP systems can run
on a variety of computer hardware and network configurations, typically
employing a database as a repository for information.
Functional areas:
An ERP system covers the following common functional areas. In many ERP
systems these are called and grouped together as ERP modules:
Financial accounting : General ledger, fixed asset, payables, receivables, cash
management, financial consolidation
Management accounting : Budgeting, costing, cost management, activity based
costing
Human resources : Recruiting, training, payroll, benefits, diversity management,
retirement, separation
Manufacturing :Engineering, bill of materials, work orders, scheduling, capacity,
workflow management, quality control, manufacturing process, manufacturing
projects, manufacturing flow, product life cycle management
Supply chain management : Supply chain planning, supplier scheduling, order to cash,
purchasing, inventory, product configurator, claim processing.
Project management : Project planning, resource planning, project costing, work break
down structure, billing, time and expense, performance units, activity management.
Customer relationship management (CRM) : Sales and marketing, commissions, service,
customer contact, call center support - CRM systems are not always considered part of ERP
systems but rather BSS(Business support systems)systems . Specifically in telecom scenario.
Data services : Various "self–service" interfaces for customers, suppliers and/or employees.
Characteristics:
ERP (Enterprise Resource Planning) systems typically include the
following characteristics:
 An integrated system that operates in real time (or next to real-time),
without relying on periodic updates.
 A common database, which supports all applications.
 A consistent look and feel throughout each module.
 Installation of the system without elaborate application/data
integration by the Information Technology (IT) department.
 Use of ERP in Textiles
Enterprise Resource Planning (ERP) is the latest high-end solution provided by information technology for
business application. Globalization has led to increase in competition and quality awareness and therefore it
has become very important for the textile industry of Bangladesh to integrate itself with information
technology to survive. To sustain competitive advantage, companies must re-examine and fine-tune their
business processes to deliver high quality goods at very low costs. ERP is an integrated system that allows
information to enter at a single point in process & updates a single shared database for all functions that
directly or indirectly depend on this information. ERP solutions came into existence in corporate world due
to various problems faced in Management Information System (MIS), Integrated Information System (IIS),
Executive Information System (EIS), Corporate Information System (CIS), Enterprise Wide System (EWS), and
Material Requirement Planning (MRP), Manufacturing Resource Planning (MRP II).

In every sector of our textile business, the market is forcing companies to stay competitive by taking
proactive steps to improve operations. In the pursuit of profitable growth, mills are looking for new
strategies to improve the quality, cut costs, respond swiftly to changes in customer demands and vagaries in
raw material supply position, expand globally, develop new distribution channels and forge new value-added
relationships with suppliers and customers. With the increase in competition and quality awareness within
and outside Bangladesh, no developing and progressive industry would be able to survive for long without
application of Enterprise Resource Planning (ERP). It plans and controls various operations right from the
purchase up to selling of the product.
 Use of ERP in Textiles

There are many slacks in use of manpower, energy, fuel, textile raw material, and other processing materials
in textile industry. It helps in the optimal uses of manufacturing resources. It reduces the wastage of the raw
materials. Higher quality of product is obtained by using it.
ERP vanishes the old standalone computer system in Finance, HR, Manufacturing, Warehouse, and replaces
them with a single unified software program dived into software modules that roughly approximate the old
standalone system.
 WHY ERP IN TEXTILE INDUSTRY
Textile manufacturing revolves around three entities: customers, banks and suppliers. A customer gives a
sales order to the company and these forms the basis for production planning. Raw material is purchased
and dispatched to the mills. Receipts and payments are made through banks. Before the ERP deployment,
most of the work was done manually resulting in inaccuracies: both incorrect and missing entries. With the
new system, ERP has enabled accountability, accuracy, and transparency without breaking the existing
workflow.
For textile products organizations, ERP provides capabilities that help optimize the entire supply chain,
from product design and configuration to preliminary planning and order processing, capacity planning,
production and delivery. By streamlining processes and delivering enhanced insight into costs, the solution
enables companies in the mill products industry to succeed in today's marketplace by facilitating
characteristics like: Quality Management, Production Management, and Order Confirmation with
Available-to-Promise Check, Accounting, and Transportation.
 LIMITATIONS OF ERP
Though ERP has lots of benefits but it has some limitations too. Some limitations of ERP can be summarized
as below:
1. Customization of the ERP software is limited. Some customization may involve changing of the ERP
software structure which is usually not allowed.
2. ERP systems can be very expensive to install.
3. ERP vendors can charge sums of money for annual license renewal that is unrelated to the size of the
company using the ERP or its profitability.
4. Systems can be difficult to use training must needed for user.
5. Again there are some challenges for the textile processes to be incorporated with the information
technology. Top 5 Challenges of aligning IT with textile processes are:
a. Demand planning: Long-term sales order forecasting.
b. Time period: Meeting customer delivery deadlines.
c. Production planning: Flexible production plans and reduction of plant setup time to meet
customer order specifications.
d. Integration: Non-integrated IT approaches resulting in lots of separate IT systems.
e. Automation: Plant automation and quality management systems.
 DEVELOPMENT OF ERP PACKAGE FOR TEXTILES
ERP facilitates a companywide integrated information systems covering all functional areas
such as manufacturing, sales and distribution, accounts, payables, receivables, inventory
,human resources etc. ERP solution includes manufacturing marketing as well as finance
sectors. The main steps in development of such a software package are:
1. Defining the problem.
2. Designing the programme.
3. Debugging.
4. Testing.
5. Documentation.
6. Maintenance.
7. Redesign
 DEVELOPMENT OF ERP PACKAGE FOR TEXTILES
DEFINING THE PROBLEM:
It includes feeding of data (i.e. specifications of input and output processing requirements). Thus to design such
a system one requires to know various parameters of textile.
1. Fibre Module: - It consists of market price of fibres as well as technical specifications like grade, fineness,
strength, moisture regain, etc should be included.

2. Yarn Module: - It includes various technical, process as well as commercial details. i. Technical parameters like
yarn count, strength, weight, CV%, twist, quality ratio, breaking strength and irregularity. ii. Production details
like lot number, shift production, efficiency and wastage. iii. Process parameters like carding, drawing, spinning.
iv. Commercial details like end use, market price etc.

3. Fabric Module: - It includes Technical specifications like yarn count for warp and weft, reed count, ends and
picks per inch, process specification at winding. ii. Process details like weight and fabric width, no. of knots, sizing
paste, size take up, ends and picks, fabric faults etc.

4. Marketing Module:-This deal with store section and various parameters like stock.

5. Finance Module: - It deals with HR cell and includes various parameters like
database on HR, performance rating, HR allocation and selection and recruitment.
 DEVELOPMENT OF ERP PACKAGE FOR TEXTILES
DESIGNING THE PROGRAMME:
1. First Step: The first step is to input incoming orders, check the feasibility of requested dates for
delivery, suggest possible delivery, manage the entire order cycle from acceptance and entry to
packing list, shipping and invoicing, manage the price list, allow orders to be accepted via internet,
order taking, booking of stocks.

2. Second Step: Second step is article coding (giving codes to different end products).The code
structure of each article type may be named and defined as per software developer or user and
parameters required.

3. Third Step: Planning is next step. It means working from given budget and production plan and
calculating material and capacity requirements, laundering production orders.

4. Fourth Step: Next step is checking of product manufacturing. It allows planning, laundering and
tracking of production activities across whole cycle and to handle fault reporting and mapping,
optimizing cutting of pieces at each inspection cycle. Inventory and purchasing should be taken
care of defining purchasing and stock policies by specifying minimum inventory levels, re-order
quantities and replenishment times.
 DEVELOPMENT OF ERP PACKAGE FOR TEXTILES
DEBUGGING: It is the procedure of correcting the errors.

TESTING: It is the checking of correction of individual programme as well as complete

system.

DOCUMENTATION: It gives full description of package and details for executing the
system.

MAINTENANCE: It is the preservation of complete package.

REDESIGN: It is the extension and changes as per the requirements of individual

situation.
 LEADING ERP GIANTS
MICROSOFT
This software holds a promising segment in the small and medium enterprises
market. They have been constantly upgrading the versions and are expert in
manufacturing the products from the vendor's point of view (who knows all the
practical difficulties of the stakeholders). The biggest advantage of this software is
that many companies will prefer them for one reason that they can be easily run in
Microsoft application and platforms.

ORACLE
They have been in the limelight ever since they have purchased People Soft ERP
software. Another encouraging fact for them is the mass campaign carried by UNDP
(United Nations Development Program) to create an awareness of their products.
They have also satisfied the customers (of both people soft and oracle) by offering
many competitive features.
 LEADING ERP GIANTS
SAP ERP
SAP ERP, a specialized ERP product meant to solve technical and managerial issue
continues to be the choice of many companies around the world. It helps companies to
redefine their business operations. Some of the features and advantages of this software
program are at par with industry standards though some others require to be improved in
order to make it compatible to the end user.
PEOPLE SOFT ERP
People Soft ERP software program helps the companies to streamline their H.R. functions
in an easy and effective manner. This software continues to be the undisputed leader in
the market when it comes to H.R. operations anywhere in the globe. Oracles recent
takeover of People Soft has only been a boon to its customers who are now able to access
the e-services of Oracle also as a result of this merger.
UPS ERP
This ERP software has an important feature. They can work in combination with other
applications like SAP, Oracle etc. This will enable him or she to get the best features from
each software and put them in use as may be demanded. This has also hogged the
limelight due to this advantage.