Erp by Baan and Ramko

7/24/2019 Erp by Baan and Ramko

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Introduction to ERP

The initials ERP originated as an extension of MRP (material requirements planning;

later manufacturing resource planning) and CIM (Computer Integrated

Manufacturing). It as introduced !" research and anal"sis #rm $artner in %&&'.

ERP s"stems no attempt to coer all core functions of an enterprise regardless ofthe organi*ation+s !usiness or charter. These s"stems can no !e found in non,

manufacturing !usinesses non,pro#t organi*ations and goernments.

To !e considered an ERP s"stem a softare pac-age must proide the function of at

least to s"stems. or example a softare pac-age that proides !oth pa"roll and

accounting functions could technicall" !e considered an ERP softare pac-age

Examples of modules in an ERP hich formerl" ould hae !een stand,alone

applications include/ Product lifec"cle management 0uppl" chain management

(e.g. Purchasing Manufacturing and 1istri!ution) 2arehouse Management

Customer Relationship Management (CRM) 0ales 3rder Processing 3nline 0alesinancials 4uman Resources and 1ecision 0upport 0"stem.

0ome organi*ations 5 t"picall" those ith su6cient in,house IT s-ills to integrate

multiple softare products 5 choose to implement onl" portions of an ERP s"stem

and deelop an external interface to other ERP or stand,alone s"stems for their

other application needs. or example one ma" choose to use human resource

management s"stem from one endor and perform the integration !eteen the

s"stems themseles. This is common to retailers here een a mid,si*ed retailer

ill hae a discrete Point,of0ale (P30) product and #nancials application then a

series of speciali*ed applications to handle !usiness requirements such as

arehouse management sta7 rostering merchandising and logistics.

Ideall" ERP deliers a single data!ase that contains all data for the softare

modules hich ould include/

Manufacturing Engineering !ills of material scheduling capacit" or-8o

management qualit" control cost management manufacturing process

manufacturing pro9ects manufacturing 8o

0uppl" chain management 3rder to cash inentor" order entr" purchasing

product con#gurator suppl" chain planning supplier scheduling inspection

of goods claim processing commission calculation

inancials $eneral ledger cash management accounts pa"a!le accounts

receia!le #xed assets

Pro9ect management Costing !illing time and expense performance units

actiit" management


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4uman resources 4uman resources pa"roll training time and attendance

rostering !ene#ts

Customer relationship management , 0ales and mar-eting commissions

serice customer contact and call center support

1ata arehouse , and arious self,serice interfaces for customers suppliers

and emplo"ees

:ccess control , user priilege as per authorit" leels for process execution

Customi*ation , to meet the extension addition change in process 8o

Enterprise resource planning is a term originall" deried from manufacturing

resource planning (MRP II) that folloed material requirements planning (MRP). MRP

eoled into ERP hen routings !ecame a ma9or part of the softare architectureand a compan"+s capacit" planning actiit" also !ecame a part of the standard

softare actiit". ERP s"stems t"picall" handle the manufacturing logistics

distri!ution inentor" shipping inoicing and accounting for a compan". ERP

softare can aid in the control of man" !usiness actiities including sales

mar-eting delier" !illing production inentor" management qualit"

management and human resource management.

ERP s"stems sa a large !oost in sales in the %&&'s as companies faced the

pro!lem in their legac" s"stems. Man" companies too- this opportunit" to replace

their legac" information s"stems ith ERP s"stems. This rapid groth in sales as

folloed !" a slump in %&&& at hich time most companies had alread"implemented their solution.

ERPs are often incorrectl" called !ac- o6ce s"stems indicating that customers and

the general pu!lic are not directl" inoled. This is contrasted ith front o6ce

s"stems li-e customer relationship management (CRM) s"stems that deal directl"

ith the customers or the e?usiness s"stems such as eCommerce e$oernment

eTelecom and einance or supplier relationship management (0RM) s"stems.

ERPs are cross,functional and enterprise ide. :ll functional departments that are

inoled in operations or production are integrated in one s"stem. In addition to

manufacturing arehousing logistics and information technolog" this ouldinclude accounting human resources mar-eting and strategic management.

ERP II a term coined in the earl" ='''+s is often used to descri!e hat ould !e

the next generation of ERP softare. This ne generation of softare is e!,!ased

and alloed !oth internal emplo"ees and external resources such as suppliers and

customers real,time access to the data stored ithin the s"stem. ERP II is also

di7erent in that the softare can !e made to #t the !usiness instead of the


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!usiness !eing made to #t the ERP softare. :s of =''& man" ERP solution

proiders hae incorporated these features into their current o7erings.

E:0 5 Enterprise :pplication 0uite is a ne name for formerl" deeloped ERP

s"stems hich include (almost) all segments of !usiness using ordinar" Internet

!rosers as thin clients.

?est practices are incorporated into most ERP endor+s softare pac-ages. 2hen

implementing an ERP s"stem organi*ations can choose !eteen customi*ing the

softare or modif"ing their !usiness processes to the !est practice function

deliered in the out,of,the,!ox ersion of the softare.

Prior to ERP softare as deeloped to #t the processes of an indiidual !usiness.

1ue to the complexities of most ERP s"stems and the negatie consequences of a

failed ERP implementation most endors hae included ?est Practices into their

softare. These ?est Practices are hat the @endor deems as the most e6cient

a" to carr" out a particular !usiness process in an Integrated Enterprise,2ide

s"stem.

: stud" conducted !" Augigshafen Bniersit" of :pplied 0cience sure"ed %&=

companies and concluded that companies hich implemented industr" !est

practices decreased mission,critical pro9ect tas-s such as con#guration

documentation testing and training. In addition the use of !est practices reduced

oer ris- !" %D hen compared to other softare implementations.

The use of !est practices can ma-e compl"ing ith requirements such as IR0

0ar!anes,3xle" or ?asel II easier. The" can also help here the process is a

commodit" such as electronic funds transfer. This is !ecause the procedure of

capturing and reporting legislatie or commodit" content can !e readil" codi#ed

ithin the ERP softare and then replicated ith con#dence across multiple

!usinesses ho hae the same !usiness requirement.

:dantages of ERP

In the a!sence of an ERP s"stem a large manufacturer ma" #nd itself ith man"

softare applications that cannot communicate or interface e7ectiel" ith one

another.

Tas-s that need to interface ith one another ma" inole/

Integration among di7erent functional areas to ensure proper communication

productiit" and e6cienc"

1esign engineering (ho to !est ma-e the product)

3rder trac-ing from acceptance through ful#llment


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The reenue c"cle from inoice through cash receipt

Managing inter,dependencies of complex processes !ill of materials

Trac-ing the three,a" match !eteen purchase orders (hat as ordered)

inentor" receipts (hat arried) and costing (hat the endor inoiced)

The accounting for all of these tas-s/ trac-ing the reenue cost and pro#t at

a granular leel.

ERP 0"stems centrali*e the data in one place. ?ene#ts of this include/

Eliminates the pro!lem of s"nchroni*ing changes !eteen multiple s"stems

Permits control of !usiness processes that cross functional !oundaries

Proides top,don ie of the enterprise (no islands of information)

Reduces the ris- of loss of sensitie data !" consolidating multiple

permissions and securit" models into a single structure.

0ome securit" features are included ithin an ERP s"stem to protect against !oth

outsider crime such as industrial espionage and insider crime such as

em!e**lement. : data,tampering scenario for example might inole a disgruntled

emplo"ee intentionall" modif"ing prices to !elo,the,!rea-een point in order to

attempt to interfere ith the compan"+s pro#t or other sa!otage. ERP s"stems

t"picall" proide functionalit" for implementing internal controls to preent actionsof this -ind. ERP endors are also moing toard !etter integration ith other -inds

of information securit" tools.

1isadantages of ERP

Pro!lems ith ERP s"stems are mainl" due to inadequate inestment in ongoing

training for the inoled IT personnel , including those implementing and testing

changes , as ell as a lac- of corporate polic" protecting the integrit" of the data in

the ERP s"stems and the a"s in hich it is used.

1isadantages

Customi*ation of the ERP softare is limited.

Re,engineering of !usiness processes to #t the industr" standard prescri!ed

!" the ERP s"stem ma" lead to a loss of competitie adantage.

ERP s"stems can !e er" expensie (This has led to a ne categor" of ERP

light Expand sectionF solutions)


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ERPs are often seen as too rigid and too di6cult to adapt to the speci#c

or-8o and !usiness process of some companies5this is cited as one of the

main causes of their failure.

Man" of the integrated lin-s need high accurac" in other applications to or-e7ectiel". : compan" can achiee minimum standards then oer time dirt"

data ill reduce the relia!ilit" of some applications.

3nce a s"stem is esta!lished sitching costs are er" high for an" one of the

partners (reducing 8exi!ilit" and strategic control at the corporate leel).

The !lurring of compan" !oundaries can cause pro!lems in accounta!ilit"

lines of responsi!ilit" and emplo"ee morale.

Resistance in sharing sensitie internal information !eteen departments can

reduce the e7ectieness of the softare.

0ome large organi*ations ma" hae multiple departments ith separate

independent resources missions chains,of,command etc and consolidation

into a single enterprise ma" "ield limited !ene#ts.

The s"stem ma" !e too complex measured against the actual needs of the

customers.

ERP 0"stems centrali*e the data in one place. This can increase the ris- of

loss of sensitie information in the eent of a securit" !reach.

Project Management

Connect. Control. Collaborate. Conquer.

"If you fail to plan you are planning to fail," these words are most relevant for project managers, who

are often faced with challenges such as tight timelines, communication disconnect, environment and

goal-related dynamics, burgeoning costs, and operational opaqueness. o wonder most

organi!ations are reali!ing the importance of adopting an intelligent project management solution

that automates the project management cycle while at the same time eeping a tab on related costs.

#amco Project management is the most effective and intelligent solution available to address the

requirements related to effective project management and drive operational e$cellence. %he

application offers the nowledge, sills, tools, and techniques required to manage and account

projects in order to meet or e$ceed staeholder e$pectations.


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&ith #amco Project management you can be assured of planning and administering the project

management tass and resources, end-to-end. 'ou can record goals and milestones and map them

against actual performance. %he solution enables you to generate a project-wise profitability report

through cost centers associated with projects(sub-projects.

#amco Project Management can be easily integrated with other #amco applications such as

Procurement, )ales and *inance. %he solution can also be integrated with Microsoft +nterprise

Project Management )oftware and project scheduling can be done through that as well. %o enable

authori!ed access to a particular project, login I and password can be provided to select +#P

users.

#amco Project Management guarantees to provide a direct solution to the maret needs related to

holistic Project Management ccounting.

Project dministration

+nsure #esource /isibility Project )ecurity.

%his module of #amco Project Management software provides all the necessary features required todefine, record and administer details pertaining to men and resources involved in the e$ecution of

the project. %he solution offers features to define codes for incorporating user-defined requirements

and record resources required for any wor to be done during the project e$ecution0 here resources

mean Man and Machine. 'ou can also define tass, which are the actual building blocs for the

project, to indicate the real activities related to the project. %he solution also allows you to map users

to the project, thereby providing user level security and restrict unauthori!ed access.

rive the Project Methodically. dminister your project resources end-to-end.

efine and record all ey resources 1Man and Machine2 involved in the project.

efine access rights for people involved in the project to ensure user level security and

restrict unauthori!ed access.


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Project Planning

void 3npleasant )urprises. Plan &ell.

%he relevance of resource and tas planning can never be undermined in the course of e$ecution of

any project. %he Project Planning module of #amco Project Management solution enables you to

effectively plan for your project so that you can define multiple tass of a project ( sub project in a

planned sequence of e$ecution. 'ou can record nature of the tass to be performed, details of the

effort along with its 34M 1unit of measure2, details of the output quantity along with its 34M at a

particular wor area can be maintained.

#amco Project Management solution also allows you to define material requirement and resource

requirement for tass, based on the defined wor areas. %as information consists of wor brea

down structure. &or plan can be also broen into discrete tass defining the effort involved in each

tas, the actual location of these tass. 'ou can also record tass that need to be subcontracted. *or

construction projects, there is also a facility to define real estate related masters such as land and

land amalgamation details, wor area details, and so on.

Plan ahead of the project and avoid resource leaage and time wastage.

+ffectively define multiple tass of a project(sub project in a planned sequence of e$ecution.

+asily record tass that need to be subcontracted through the same window of the module.

Project %racing

5ave a %ight 6rip over the Project evelopments.

%his module of the #amco Project Management solution empowers you to trac all resources and

performance of individuals involved in the e$ecution of a project against the pre-defined parameters

and goals. %he solution offers the facility to record the project objectives and results, and also


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capture e$pected results as well as the actual results for effective analysis. #ecords pertaining to

milestone completion can also be recorded. 7y effectively tracing the progress of the project, you

can identify and analy!e the issues and riss involved in the project. etails of how the issues were

resolved and how the mitigation plan and contingency plans were evolved can also be maintained.

Project ( sub project status can be updated as closed on project completion and ongoing project (

sub project can also be short-closed on giving appropriate reason.

#ecord and trac details related to project progress, resource performance, milestones

achieved, effectively.

Map e$pected results against the actual results for effective resource performance analysis.

Identify and analy!e the issues and riss involved in the project and deal with themproactively.

Project 7illing

8lassify 8ost 8enters.

Projects can be classified based on its nature such as 6eneric or 8onstruction, or based on its si!e

as )mall, Medium or 7ig, or further can even be classified as 7illable or on- billable. &ith #amco

Project Management solution you can define cost centers related to your project. 7illing and Payable

milestones can be defined and planned(projected revenue(disbursement details of a project against

each milestone can be captured. Milestones can be mapped to Project cost centers and invoices

can be generated against reported milestones. %his module provides the necessary framewor to

calculate overall project costs as well as classified costs such as tas-wise, milestone-wise,

resource-wise costs.

efine cost centers and billable non- billable attributes related to your project.

8alculate overall project costs as well as classified costs such as tas-wise, milestone-wise,

resource-wise costs.


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Project ccounting

ccount for +very Penny )pent.

%his module of #amco Project Management software enables you to map cost group to account

codes for consolidating the project e$penses and revenues. %he solution offers the provision to

record account-based project budgets. It offers an option for mass approval of account budgets for

multiple projects. Project budgets can be defined for ccount code 9 *inance 7oo 9 *inancial year

9 Project code combination. 'ou can also record funds received against a project and indicate

whether a fund can be used for the entire project or to be utili!ed only for the e$ecution and

completion of a specific component of the project. *und currency can also be different from the

project currency.

efine project budgets.

8onsolidate e$penses and revenues and record account-based project budgets.

#ecord funds received against a project whether a fund can be used for the entire project or

partially.

Project Profitability

:now the Profit 6ains or ips.

#amco Project Management software offers the facility to analy!e profitability of projects and sub-

projects, by leveraging cost centers in Project Management ccounting module. 'ou can ascertain

tas-wise, resource-wise performance or overall performance of the project by comparing actual

versus planned e$penses, actual revenue with forecasted revenue and actual profitability against

planned profitability to analy!e profitability percentage.


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6enerate your project;s performance report card to ascertain your projects; or sub-projects;

profitability, or tas-wise(resource-wise profitability.

Measure profitability, objectively, by comparing actual versus planned e$penses, actual

revenue with forecasted revenue and actual profitability against planned profitability.

ll too often, the benefits of implementing +#P are not fully reali!ed because companies lose time

and effort in tacling associated challenges. #amco sees to change this by offering customers a

slew of services that help optimi!e +#P investment and reap the real benefits of world-class

#amco +#P on 8loud.

#amco


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Information Management Consulting : 5elps companies manage big data available across

the organi!ation, integrate with the customer database, plan for maintenance of legacy data, and

migrate e$isting data to a new platform.

Process Improvement & Quality Advisory : *acilitates certification, audits, process

orientations, implementations and follow up surveillance.

#amco Managed )ervices helps you optimi!e resources and cut costs by outsourcing your non-core

processes to domain specialists.

Payroll Services : #amco


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#amco 8ustom evelopment )ervices enables you to build tailor-made solutions for your unique

requirements. 'ou can build scalable, agile, model-based, and business process oriented enterprise

solutions using #amco /irtual&ors@ platform. %his wors out more cost-effectively than building

and maintaining customi!ed solutions in-house.

#amco )upport )ervices helps you to grow your business and improve competitiveness over time,

baced by unparalleled investment in product and service enhancements.

#amco %raining )ervices equip you or your team to wor on a full-fledged, cloud-based +#P through

different training programs for customers, partners, organi!ations and students delivered as ?ive

)eminars 1face-to-face2 or &ebinars 1online sessions2.

US-based Stafng Solutions ProviderHires Ramco ERP on Cloud to Deal with

Operational Compleities

CUS!O"ER #$C%&ROU'D


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0omeone has rightl" said G2e ma" need to sole pro!lems not !" remoing the

cause !ut !" designing the a" forard een if the cause remains in place.H

0omehat similar strateg" as adopted !" the sta6ng solution proider hen it

decided to #nd a a" forard to address its #nancial management related

challenges !" deplo"ing Ramco ERP on Cloud.

Part of one of the orlds largest sta6ng serices group !ased in B0 the compan"s

operations in India proides solutions and serices to a ide range of industries to

help them recruit contract and temporar" assignment sta7 hire professionals for

permanent placement and manage their or-force and control costs. The compan"

has a headcount of %='' regular emplo"ees and J'' contractors. The compan"

recorded a turnoer IKR %L' crore in ='%% and is expecting to reach the target of

IKR %' crore in ='%=.

Eer since inception the compan" has stried to adopt solutions and practices thathelp it to gro at a proli#c rate. 4oeer to "ears !ac- the compan"

management felt that there ere a fe issues related to !usiness process,

automation that needed attention urgentl" as the" ere a7ecting the oerall

operational e6cienc" of the compan".

!HE (OUR'E) *RO" CO"P+E,!ES !OE**CE'! PROCESSES

The compan" as using 4irecraft solution for managing its recruitment function and

Excel to manage #nance,related tas-s. 4oeer these solutions ere una!le to

address the complexit" of its operations. The compan" has multiple t"pes of !illing

c"cles such as =%===L da"s (2ee-ends Excluded !illing) Monthl" !illing and so

on hich ma-e its processes complex. :part from this the compan" had to compl"

ith multi,currenc" multi,location and multi,statute scenario since it is the Indian

arm of a multi,national $roup.

2ith its existing set of solutions the compan" as #nding it di6cult to e7ectiel"

manage tas-s related to inoice generation and consolidation. This as a7ecting

the oerall operational e6cienc" of the compan". 4ence the compan"s

management team decided to hae a seamlessl" integrated s"stem that could

ena!le end,to,end integration of its inance,related functions ith other processes

so that the challenges related to data consistenc" and integrit" s"stematic and


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accurate report generation and aaila!ilit" of realtime data for ena!ling timel"

anal"sis could !e addressed.

3nce the compan" had made the decision to deplo" ERP solution it !egan exploring

solutions o7ered !" endors such as Ramco 0"stems 0:P and Microsoft. The

compan" anted to deplo" a 2e!Cloud !ased ERP solution. :fter a long and ell,

considered ealuation the management decided to go ahead ith Ramco ERP on

Cloud a "ear !ac-.

The compan" *eroed in on the solution mainl" !ecause deplo"ing Ramco ERP on

Cloud required minimal IT inestments. 0ince the solution is deliered on a pa"per,

use !asis ia softare,as,a,serice (0aa0) model the cost of onership is lo and

the IT costs for the compan" are ell,de#ned and predicta!le.

?esides there is no hassle of maintaining the s"stem and -eeping it up to date as

full support is proided !" Ramco to maintain and upgrade the s"stem on an on,

going !asis. The compan" also proides for securit" and !ac-up of the

organi*ations data to ensure !usiness continuit" through its state,of,the,art

securit" infrastructure. Ramcos o!seres I03 =''% certi#ed processes and

practices for information securit" at its data center for -eeping its customers data

highl" secure.

The solution also supports multi,currenc" multi,location and multi,statute scenario

hich as the core expectation of the compan" from the solution. Ramco 0"stems

also o7ered its ?P3 solution along ith this solution hich the compan" required tostreamline and strengthen its ?P3 operations.

!HE ERP E**EC!

The implementation as carried out in a ell,planned and phased manner so that

the !ene#ts of ERP start pouring in fast. The compan" anted the solution for ='

users. It too- a total of %% months to implement the di7erent modules of the ERP

solution.

The solution #tted the requirements of the compan" li-e a gloe. The compan"

moed its !usiness processes from multiple softare solutions to a single uni#ed

platform. This has ena!led the compan" to drie !usiness e6cienc" across the

!oard. There is transparenc" in !usiness operations across processes and

departments. 0ince the ERP is Cloud,!ased the management can ta-e realtime


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ie of the !usiness functions from an"here =N. The compan" management can

handle and control multiple transactions across locations ith instant access to data

and MI0 reports. :part from this there has !een an enormous reduction in resource

trac-ing time and elimination of duplicate data entr".

ERP !H$!.S SUPPOR!ED E'D-!O-E'D

The management is satis#ed ith Ramco ERP on Cloud as it includes all the !est

practices folloed !" industr" leaders. 3ne of the -e" factors that hae impressed

the management in particular is the regular upgrades to the ERP s"stem that

Ramco 0"stems o7ers.

Ramco or-s on constantl" eoling its products. Ke features !ased on mar-et

needs and demands are added periodicall" to -eep the product eer green.

This allos users to use the product as it is and get enhancements in the product

oer a period of time instead of pa"ing for costl" customi*ed deelopment.

/H$!.S ' !HE O**'&0

The compan" has set itself a target of achieing a turnoer of O %'' million. To

reali*e this goal the compan" plans to leae no stone unturned. The management

is happ" that it has no !een a!le to put its !usiness operations on irtuall" a

hands free mode and has gained more time to focus on core !usiness strategies to

drie groth. $oing forard the compan" is planning to deplo" Ramcos solutions

for Trael management CRM and Emplo"ee 0elf 0erice to further strengthen its

operational e6cienc".


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1esta E2uipment gets better e2uippedwith RODE

1ES!$ E3UP"E'!S4 S!$R!'& O** O' !HER&H! *OO!'&5

?eing a necomer in an asset,intensie industr" monopoli*ed !" !ig names can

seem quite daunting. :s- @esta Equipment Pt. Atd. 2ith so man" little details going

into the !ig picture -eeping the reins in its hand @esta found as far from eas".

0tarting o7 on the right footing as integral to its success.

S!EPP'& ' /HERE &$'!S H$1E !ROD

?eing founded !" eterans in the industr" @esta Equipment Pt. Atd. has had a lot

in its faor right from the er" !eginning. The compan" reali*ed upfront that qualit"

and precision ere of utmost importance. 0o as the poer of a !ig !rand name

and @esta has !een consistentl" aspiring to esta!lish its !rand isi!ilit" and

reputation.

3perating from ?angalore the compan" is into selling hea" equipments li-e

compressor pumps and drilling machines. It colla!orates ith arious endors

across the glo!e to procure arious materials hich are then su!contracted for

assem!ling to usion Metal Tech @estas su!sidiar" concern. The #nal products are

then sent to usion 0ales and 0erice "et another su!sidiar" concern from here it


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is distri!uted in the mar-et. The compan" has also !een proiding spare,parts for

arious other esta!lished names in the industr".

&$U&'& !HE RO$D $HE$DThe compan" started o7 its operations in ='%' !" using manual methods for

maintaining inentor" and other #nancial softare to -eep trac- of its #nancial

dealings. 4oeer er" soon @esta reali*ed that this as hardl" the a" forard.

Each of these equipments consisted of seeral smaller parts. >eeping trac- of the

numerous components constituting the #nal equipment as !eing done manuall".

GIt as all ta-ing far too much time and e7ort. 2e reali*ed upfront that e needed

to automate this process to see e7ectieness in our operationsH sa"s 0. Aa-shmi

Karashiman 1$M5Materials @esta Equipment Pt.Atd.

G?esides er" often the !ill of materials ent through seeral changes and

iterations and each time these iterations happened there ould !e a change in the

draing num!er. >eeping trac- of these draing num!ers and reision num!ers

too e felt ould !e a lot easier ith an automated s"stem in place.H

C$!CH'& O' !O !HE ERP /$1E

GBnli-e man" start,ups that grapple ith seeral lo,cost options !efore recogni*ing

their need for a full 8edged ERP s"stem @estas foresight ena!led them to

ac-noledge their need for a good ERP s"stem right,aa"H sa"s $opala Rethnam

Rai 0enior ?usiness :nal"st Ramco 0"stems.

0eeral ERP endors ere considered !ased upon a num!er of ell,researched

ealuation parameters. inall" Ramco 3n1emand ERP as chosen. GThere ere

seeral reasons h" the compan" preferred R31E oer man" other leading

pla"ersH sa"s Aa-shmi Karashiman. GThe most important reason as the fact that it

as a completel" full,8edged ERP s"stem that coered the entire gamut of

operations ranging from !oo- -eeping to discrete production inentor"

management accounting MI0 and related reporting pa"a!le receia!lemanagement purchase and su!contracting and een sales and shipping.H

?est of all these functions ere aaila!le on the cloud on a pa",per,use model. This

meant that the compan" did not hae to inest on modules that the" didnt need or

use. Kor ould the" hae to spend on IT infrastructure and personnel. :lso R31E

ena!led the compan" to dra all their disparate processes together to form a single


18/22

indo giing them instant access to information and alua!le insights into their

!usiness.

#R&H! PROSPEC!S /!H RODE +E$D'& !HE/$)

2ith their dependenc" on one proider rather than on seeral s"stems @esta

Equipment has achieed a leel of control oer their !usiness that is quite unusual

for a ne compan". R31E ena!les the compan" to control their 0CM processes

e7ectiel" !esides maintaining their stoc- trac-ing costs.

Compliance ith statutor" requirements is also eas" than-s to R31Es Purchase

0u!contracting feature.

Prior to implementation all P3s raised !" @esta ere created using Excel. 3ften the

procurement of partscomponents as made ithout the item codes in place. This

as a ma9or hindrance for pro9ect proceedings since it ould ta-e the compan"

almost a month to proide the opening !alance.

4oeer R31E has helped to s"stemati*e the procurement process !esides

proiding instantaneous access to information. R31E has also eased the trac-ing of

inentor" inoices and receipts against orders. It has also made report generation

easier resulting in higher customer satisfaction.

G@esta is certainl" o7 to a !right startH predicts Rai. GTheir decision to start o7

ith a full,8edged ERP s"stem in place has !een a er" smart moe and e ish

them all the luc- for the future.H

Ramco Helps "other Dair6 Ensure 3ualit6

Esta!lished in %&N under the 3peration lood Program Mother 1air" is a holl",

oned compan" of the Kational 1air" 1eelopment ?oard (K11?). Mother 1air"

Ice,Creams launched in the "ear %&&Q is a diision that has gron continuousl"

oer the "ears to !oast of approximatel" J=D mar-et share in 1elhi and KCR. Theice,cream mostl" manufactured !" su!contractors has to !e carefull" procured

and distri!uted ith strict qualit" control a 9o! that can !e done onl" ith a tightl"

integrated IT 0"stems.


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4ere is ho Ramco implemented an integrated s"stem to connect Mother 1air"s

ecos"stem of su!contractors ith an end,to,end ERP for seamless 8o of

information.

Challenges 7aced b6 "other Dair6

Mother 1air" su!contracts the production of ice,creams. :t one point this made

their 9o! tougher than the" imagined as the su!contractors ere using disparate

s"stems leaing Mother 1air" ith minimal control oer their processes. The

compan" found it increasingl" tough to trac- and manageS

Ra materials l"ing ith the su!contractors

inished goods inentor" at su!contractor end

Expected delier" of #nished goods

Kon,standard production processes and

0u!contractor data!ase and !illing.

Disconnected Subcontractors

0ince su!contractors ere using independent s"stems for arious processes li-e

procurement #nance etc. and as their s"stems did not s"nc ith Mother 1air"s

the" too faced their share of challenges especiall" in trac-ing and managingS

Ra material pac-ing material loss

Customer and supplier outstanding

Multiple changes in rolling plan and ee-l" order


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ualit" of materials

Ris- of fraudulent transactions

Production dela"s due to material shortages and

Manpoer and resource planning for multiple lines.

In order to oercome the challenges faced !" the compan" and the su!contractors

Mother 1air" anted to implement an ERP solution to standardi*e and trac- the

masters and production actiities at di7erent su!contractors. The" also anted to

monitor the purchases !" su!contractors in order to maintain the qualit".

Ramco provides "other Dair6 the proverbial8ne tooth comb

Ramco helped Mother 1air" improe the qualit" of its products and e6cienc" of its

multi,compan" setup ith enhanced qualit" inspection and tracea!ilit" MRP and

more.

The initial implementation includes %'U su!contractors. 1uring the #e,"earcontract it is expected to scale up and coer all L'U su!contractors.

4ere is a !irds e"e ie of the solution Ramco o7ered to Mother 1air"/

1etailed ualit" module spanning Inard as ell as In,process

Multi,compan" setup ith each endor as separate compan"

0eparate production process in each compan"

uic- Manufacturing Resource Planning (MRP)

4omogeneous Item0uppliers?ill 3f Materials (?3M) across endors as ell

as ith 0:P for !etter control


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Inard and In,process qualit" inspection

?atch tracea!ilit" ith qualit" alues in case of an" complaint

Centrali*ed approal of Purchase 3rder (P3)Price Aist

@endor selection

0tandard s. :ctual consumption

Ra Material Pac-ing Material (RMPM) trac-ing ith manufacturing date

and shelf life

3ne interesting aspect of the implementation is its neat coexistence ith the

existing 0:P module. Ramcos s"stem generates an :dance 0hipping Kote (:0K) at

the time of inoicing hich creates an In!ound 1elier" Kote (I1K) in the 0:P

module there!" reducing manual interention in inished ?atch entr".

Remar9able #usiness #ene8ts

Ramco Mother 1air" and its su!contractors or-ed together in unison from 1a" %

to ma-e the most of the lean inter season to #nish much of the implementation in

time to o7er the !est ice,cream to thirst" customers the coming summer and to

feed their hungr" cash,registers tooV :nd so the" did ith an integrated "et 8exi!le

ERP s"stem.

/hat )ou Sow: So )ou Reap

2ith Ramcos ERP on Cloud Mother 1air" as a!le to reduce manual interentionsand achiee greater transparenc" and accounta!ilit" !eteen the compan" and its

su!contractors.

4ere are some of the -e" !usiness !ene#ts achieed/

Control oer purchase through approal of all RMPM P3s ith price control


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Control oer suppl" ith RMPM inished $oods ($) isi!ilit"

Production monitoring

Material requirement planning

:utomatic creation of I1K in 0:P

ualit" control ith product tracea!ilit" (!ac-ard forard)

?etter monitoring and control using dash!oardsMI0 reports

@isi!ilit" across locations

3nline #nancial reports in Excel hich is 8exi!le to piot

Control oer manufacturing cost and

Planning of lifting schedule !" salespeople ith remote $ anal"sis.

Documents

Erp by Baan and Ramko