ERP SYSTEM Report-college

V.M.PATEL COLLEGE OF MANAGEMENT STUDIES 1

The B.B.A programme is one type of graduate degree course. This is providing us professional management which is universally applicable. It can be applied in business and non-business activities.

For preparing the project report, I have visited the Dudhsagar Dairy, Mehsana, during the suggested duration 27-10-2008 to 16-11-2008 to avail the necessary information. The blend of learning and knowledge acquired during my practical studies at the Dudhsagar Dairy, Mehsana, are presented in this project report.

The rationale behind visiting the company and preparing project report is to study the “ERP System with respect to Finance and Accounts in Dudhsagar Dairy, Mehsana.”

The project report starts with company profile and covers Overview of ERP System, Various modules of ERP System implemented at Dudhsagar Dairy, Various process cycle of ERP system in Dudhsagar Dairy, Evolution of ERP System, Findings Regarding ERP system at Dudhsagar Dairy, Mehsana.

The information presented in this Project Report is obtained from various sources like Company Personnel, Company Internal Intra Websites, Other Websites, Company Reports, and other literature.

NAME POOJA K. SONI

DIVISION ”C”

ROLL NO 188


“SUCCESS CAN NEVER BE OBTAINED WITHOUT VALUABLE GUIDANCE”“GURU BINA GYAN KAHA SE PAU”

The successful completion of a project requires active participation of many people from the time of inception of an idea to its implementation, many brain works together and that only provides fruitful results.

It's a great pleasure and privilege in presenting this Project Report to one and all concerned. My deepest gratuity to DUDHSAGAR DAIRY, MEHSANA to undergo training at one of the most reputed co-operative Organization.

First of all, I would like to thank Dr. Krishnaraj M Chudasma, Principal of V.M. Patel Collage of Management Studies who has gave me the opportunity to undertake this type of research work which will prove very important for me in future. I would also like to thank Prof, Haresh Oza for giving me guidance well when required. I am highly indebted to Mr. Jaysukhbhai Solanki, [Executive (Accounts-dudhsagar dairy)] for bestowing me his kind and gracious facilitation during the training period. Without his prudent guidance and encouragement the project would not have been possible.

I would also like to express my sincere thanks to other people at Dudhsagar Dairy, Mehsana for their invaluable contribution and guidance in making this Project Report.

I also like to thank all those people who have knowingly and unknowingly contributed in one way or other in making this Project a more completely one with their valuable tips and suggestion.

I hope that the information incorporated in this project report would be appreciated as I have put in may be efforts in leaving no stone unturned as I consider it to be true, fair and relevant in its content and context to the best of my knowledge and ability.

NAME POOJA K. SONI

DIVISION ”C”

ROLL NO 188


Dudhsagar Dairy is a co-operative dairy. It works under Gujarat Co-operative Milk Marketing

Federation. Dudhsagar Dairy takes milk from many villages around Gujarat and pay for their

milk. Then Dudh Sagar Dairy processes it & pack in different packaging and after supply. Dudh

sagar Dairy’s plan is biggest in the all our Asia.

Dudhsagar dairy which manufactures milk and milk products under the brand name AMUL and

SAGAR has become the first dairy co-operative in the country to implemented enterprise

resource planning (ERP) solution across its establishment.

In this report I have done a research on "ERP SYSTEM WITH RESPECT TO FINANCE &

ACCOUNTS IN DUDHSAGAR DAIRY, MEHSANA”. For preparing the project report, I have

visited the Dudhsagar dairy for 21 days during the suggested duration from 27-10 2008 to 16-

11-2008, to avail the necessary information.

During my overall research work I have done analysis of the ERP SYSTEM implemented at

DUDH SAGAR DAIRY,MEHSANA and according to that some points of analysis are as under:

At DUDH SAGAR DAIRY with the help of ERP SYSTEM it is easier and faster to

get financial data from various departments, the preparation of valuable financial reports

accurately, requirement of HUMAN RESOURCE is reducing, increase in co-ordination among

employees in finance & accounts department, it is become very easier to checkout the past

accounts and their impact on present accounts, The chances of mistakes while preparing

valuable financial reports can be reduced, useful for saving time, eliminates the paper work

Planning and allocation of financial resources become efficient & accurate

Apart from such advantages there are certain limitations of ERP SYSTEM at DUDH SAGAR

DAIRY like The blurring of company boundaries can cause problems in accountability, lines of

responsibility, and employee morale, In FINANCE & ACCOUNTS DEPARTMENT ERP system may be too

complex measured against the actual needs of the DAIRY, ERP SYSTEM at DUDH SAGAR DAIRY is not

useful to record the collection of milk from various co-operative societies and the payment to co-

operative, A small mistake while recording the transaction will affect all other accounts badly which may

result in a very big mistake.


Sr.no. Particulars Page no.

1. Preface 2

2. Acknowledgement 3

3. Executive summary 4

4. What is ERP? 7

5. Overview of ERP SYSTEM 10

6. Development of an ERP system

11

7. Suppliers of ERP software 14

8. Selection of ERP 17

9. ERP life cycle 18

10.Functional modules of ERP

software

21

11.Various ERP Process Cycle

25

12. Technical specification for implementation of ERP

system

39

13. Findings 40

14. Conclusion 44

15. Bibliography 46


INTRODUCTION

ERP SYSTEM AT DUDHSAGAR DAIRY

Dudhsagar dairy which manufactures milk and milk products under the brand name

AMUL and SAGAR has become the first dairy co-operative in the country to

implemented enterprise resource planning (ERP) solution across its establishment.

Dudhsagar dairy has implemented “ORACLE E-BUSINESS SUIT” (version-11.5.9) as

ERP software.

The main server is implemented at Mehsana head office and it is connected with

different locations i.e. chilling centers Vihar, Kheralu, Harij, Kadi & Hansapur and cattle

feed factory Boriavi & Ubkhal. These all centers are connected through BSNL telephone

leas lines.

The Dudhsagar dairy has completed 47 years of his success and it is in the northern

part of Gujarat. The dairy has completed task of creating a common integrated

management system under project “SAMANWAY” to create and derive the benefit of

modern technology to make the dairy operation more efficient, thus contributing in

improving the lives of hundreds and thousands of milk producers in the region.

The “ERP - SAMANVAY” project has covered the implementation of Oracle Financials,

Oracle Purchasing, Oracle Process Manufacturing, Oracle Asset Management, Oracle

Inventory Management and Oracle Order Management modules Of Oracle-E-Business

Suits.

There are numerous software programs that are being used at different locations

gathering information would often take days. With a uniform ERP solution across all

establishment and place, as expect a huge improvement in account statement by the

year-end as per management.


This ERP solution package was implemented in 11 month from 4 August 2003 to 2-July,

2004.

The set up of ERP system is done by TCS “TATA CONSULTANCY SERVICES”, but it

took be few month for the employers to get accustomed to the new system and to

streamline all procedures.

For each ERP users they have separate login knowing there confidential password for

ERP suits and also separate assessment for higher authorities. In each department one

ERP core team members has support to his staff members for day-to-day transactions.

Now Dudhsagar Dairy, maintain two ERP instance

(1) Production Instance (SAGAR-8000) for live data

(2) Test Instance (TClone-8025) for old data and testing and training purpose

Following other software programs are using by Dudhsagar Dairy.

MCBS – Milk Collection and Billing Systems

FoxPro – Transport Payment and accounting program

Tally 9 etc.


WHAT IS ERP?

ERP (Enterprise Resource planning) covers the technique and concepts employed for the

integrated management of business as a whole, from the viewpoint of the effectiveness use of

management resources, to improve the efficiency of an enterprise. ERP packages are

integrated software packages that support the ERP concepts.

An Enterprise Resource Planning (ERP) system is a software infrastructure embedded with

"best practices", thus providing the best ways to do business based on common business

practices or academic theory. The aim of an ERP is to improve the co-operation and interaction

between all departments in organizations (such as product planning, manufacturing,

purchasing, marketing and customer service department). ERP is a fine expression of the

inseparability of IT and business. As an enabling key technology, as well as being an effective

managerial tool, ERP systems allow companies to integrate at all levels and to utilize important

ERP applications such as supply-chain management, financial and accounting applications,

human resource management and customer relationship management. They represent large,

complex, computerized and integrated systems which can strongly influence long-term business

success.

Enterprise Resource Planning is the latest high end solution, information technology has lent to

business application. The ERP solutions seek to streamline and integrate operation processes

and information flows in the company to synergies the resources of an organization namely

men, material, money and machine through information. Initially implementation of an ERP

package was possible only for very large Multi National Companies and Infrastructure

Companies due to high cost involved. Today many companies in India have gone in for

implementation of ERP and it is expected in the near future that 60% of the companies will be

implementing one or the other ERP packages since this will become a must for gaining

competitive advantage.


Integration is Key to ERP

Integration is an extremely important part to ERP's. ERP's main goal is to integrate data and

processes from all areas of an organization and unify it for easy access and work flow. ERP's

usually accomplish integration by creating one single database that employs multiple software

modules providing different areas of an organization with various business functions.

Although the ideal configuration would be one ERP system for an entire organization, many

larger organizations usually create and ERP system and then build upon the system and

external interface for other stand alone systems which might be more powerful and perform

better in fulfilling an organizations needs. Usually this type of configuration can be time

consuming and does require lots of labor hours.

ORIGIN OF THE TERM

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

manufacturing resource planning). ERP systems now attempt to cover all basic functions of an

enterprise, regardless of the organization’s business or charter. Non-manufacturing businesses,

non-profit organizations and governments now all utilize ERP systems.

To be considered an ERP system, a software package must provide the function of at least two

systems. For example, a software package that provides both payroll and accounting functions

could technically be considered an ERP software package.

However, the term is typically reserved for larger, more broadly based applications. The

introduction of an ERP system to replace two or more independent applications eliminates the

need for external interfaces previously required between systems, and provides additional

benefits that range from standardization and lower maintenance (one system instead of two or

more) to easier and/or greater reporting capabilities (as all data is typically kept in one

database).

Examples of modules in an ERP which formerly would have been stand-alone applications

include: Manufacturing, Supply Chain, Financials, Customer Relationship Management (CRM),

Human Resources, Warehouse Management and Decision Support System.


EVOLUTION OF ENTERPRISE RESOURCE PLANNING

In the ever growing business environment the following demands are placed on the industry:

Aggressive Cost control initiatives

Need to analyze costs / revenues on a product or customer basis

Flexibility to respond to changing business requirements

More informed management decision making

Changes in ways of doing business

Difficulty in getting accurate data, timely information and improper interface of the complex

natured business functions have been identified as the hurdles in the growth of any business.

Time and again depending upon the velocity of the growing business needs, one or the other

applications and planning systems have been introduced into the business world for crossing

these hurdles and for achieving the required growth. They are:

Management Information Systems (MIS)

Integrated Information Systems (IIS)

Executive Information Systems (EIS)

Corporate Information Systems (CIS)

Enterprise Wide Systems (EWS)

Material Resource Planning (MRP)

Manufacturing Resource Planning (MRP II)

Money Resource Planning (MRP III)

The latest planning tool added to the above list is Enterprise Resource Planning.


OVERVIEW OF AN ERP SYSTEM

Some organizations — typically those with sufficient in-house IT skills to integrate multiple

software products — choose to implement only portions of an ERP system and develop an

external interface to other ERP or stand-alone systems for their other application needs. For

example, one may choose to use human resource management system from one vendor, and

the financial systems from another, and perform the integration between the systems

themselves.

This is very common in the retail sector[citation needed], where even a mid-sized retailer will

have a discrete Point-of-Sale (POS) product and financials application, then a series of

specialized applications to handle business requirements such as warehouse management,

staff roistering, merchandising and logistics.

Enterprise resource planning (ERP) systems attempt to integrate several data sources and

processes of an organization into a unified system. A typical ERP system will use multiple

components of computer software and hardware to achieve the integration. A key ingredient of

most ERP systems is the use of a unified database to store data for the various system

modules.

The two key components of an ERP system are a common database and a modular software

design. A common database is the system that allows every department of a company to store

and retrieve information in real-time. Using a common database allows information to be more

reliable, accessible, and easily shared. Furthermore, a modular software design is a variety of

programs that can be added on an individual basis to improve the efficiency of the business.

This improves the business by adding functionality, mixing and matching programs from

different vendors, and allowing the company to choose which modules to implement. These

modular software designs link into the common database, so that all of the information between

the departments is accessible and real-time.


DEVELOPMENT OF AN ERP SYSTEM

Enterprise Resource Planning is a term originally derived from manufacturing resource planning

(MRP II) that followed material requirements planning (MRP). MRP evolved into ERP when

“routings” became a major part of the software architecture and a company’s capacity planning

activity also became a part of the standard software activity.[citation needed] ERP systems

typically handle the manufacturing, logistics, distribution, inventory, shipping, invoicing, and

accounting for a company. Enterprise Resource Planning or ERP software can aid in the control

of many business activities, like sales, marketing, delivery, billing, production, inventory

management, quality management, and human resource management.

ERP systems saw a large boost in sales in the 1990s as companies faced the Y2K problem in

their legacy systems. Many companies took this opportunity to replace their legacy information

systems with ERP systems. This rapid growth in sales was followed by a slump in 1999, at

which time most companies had already implemented their Y2K solution.

ERPs are often incorrectly called back office systems indicating that customers and the general

public are not directly involved.

This is contrasted with front office systems like customer relationship management (CRM)

systems that deal directly with the customers, or the e-Business systems such as e-Commerce,

e-Government, e-Telecom, and e-Finance, or supplier relationship management (SRM)

systems.

ERPs are cross-functional and enterprise wide. All functional departments that are involved in

operations or production are integrated in one system. In addition to manufacturing,

warehousing, logistics, and information technology, this would include accounting, human

resources, marketing, and strategic management.

ERP II means open ERP architecture of components. The older, monolithic ERP systems

became component oriented.[citation needed]

EAS — Enterprise Application Suite is a new name for formerly developed ERP systems which

include (almost) all segments of business, using ordinary Internet browsers as thin clients.


AIM OF ERP

The aim of ERP is to improve the co-operation and interaction between all departments in

organization (such as product planning, manufacturing, purchasing, marketing & customer

service department)

NEED FOR ERP

Most organizations across the world have realized that in a rapidly changing environment, it is

impossible to create and maintain a custom designed software package which will cater to all

their requirements and also be completely up-to-date. Realizing the requirement of user

organizations some of the leading software companies have designed Enterprise Resource

Planning software which will offer an integrated software solution to all the functions of an

organization.

FEATURES OF ERP

ERP facilitates company-wide Integrated Information System covering all functional areas

like Manufacturing, Selling and distribution, Payables, Receivables, Inventory, Accounts,

Human resources, Purchases etc.,

ERP performs core corporate activities and increases customer service and thereby

augmenting the Corporate Image.

ERP bridges the information gap across the organization.

ERP provides for complete integration of Systems not only across the departments in a

company but also across the companies under the same management.

ERP is the only solution for better Project Management.

ERP allows automatic introduction of latest technologies like Electronic Fund Transfer

(EFT), Electronic Data Interchange (EDI), Internet, Intranet, Video conferencing, E-

Commerce etc.

ERP eliminates the most of the business problems like Material shortages, Productivity

enhancements, Customer service, Cash Management, Inventory problems, Quality

problems, Prompt delivery etc.,

ERP provides business intelligence tools like Decision Support Systems (DSS), Executive

Information System (EIS), Reporting, Data Mining and Early Warning Systems (Robots) for

enabling people to make better decisions and thus improve their business processes


SUPPLIERS OF ERP SOFTWARE

There are many numbers of ERP suppliers who are very active in the market. Some of the

companies offering renowned international ERP products include:

SAP

Baan

Microsoft-Dynamic, Navision

CODA

D&B

IBM

JD Edwards

Marcarn

Oracle

Peoplesoft

Platinum

Ramco

SMI

Software 2000

THERE ARE TWO MAIN STUDY IN ERP SYSTEM

As-is study

Prior to the concept of ERP systems, it was not unusual for each department within an

organization to have its own customized computer system. For example, the human resources

(HR) department, the payroll department, and the financial department might all have their own

computer systems.

Typical difficulties involved integration of data from potentially different computer manufacturers

and systems. For example, the HR computer system (often called HRMS or HRIS) would

typically manage employee information while the payroll department would typically calculate

and store paycheck information for each employee, and the financial department would typically

store financial transactions for the organization. Each system would have to integrate using a

predefined set of common data which would be transferred between each computer system.

Any deviation from the data format or the integration schedule often resulted in problems.


To-be study

ERP software, among other things, combined the data of formerly separate applications. This

simplified keeping data in synchronization across the enterprise, it simplified the computer

infrastructure within a large organization, and it standardized and reduced the number of

software specialties required within larger organizations.

COMPONENTS OF ERP

To enable the easy handling of the system the ERP has been divided into the following Core

subsystems:

Sales and Marketing

Master Scheduling

Material Requirement Planning

Capacity Requirement Planning

Bill of Materials

Purchasing

Shop floor control

Accounts Payable/Receivable

Logistics

Asset Management

Financial Accounting


VARIOUS FUNCTIONS OF DIFFERENT SUBSYSTEM

Sales

SFA(Sales Force Automation)

Enquiry/Quotations

Sales order management

Billing

Stock transfer

Exports

Procurement

Product/Services management

Sub-contracting management

Supplier management

Materials

Inventory

Inventory control

Warehousing

Dispatch

Stock reconciliation

Financials

GL(General Ledger)

AP/AR(Accounts Payable and Receivables)

Budgeting

Vouchers and Day Books

Trial Balance, Balance Sheet and other

Financial reports


Manufacturing

Bill of material

Machine allocation

MRP

Shop floor management

Production Capacity planning

Monthly Production schedules

Fixed Assets and Costing

Processing

Asset Depreciation and Transactions

Expenses allocation

Budget/Forecast Analysis

Multiple cost centres

Product/Project costing

Equipment Maintenance

Maintenance Requisitions

Service Order management

Preventive and Breakdown Maintenance


GENERALLY IN ERP CONSULTING THERE WILL BE 2 DIFFERENT ARES :

1. Technical

2. Functional

1. Technical consultants will take care about the Hardware, Hardware performance,

Hardware tuning, System administration, Data base, Administration and Development

2. Functional Consultants will involve the Business Process customization into ERP

application components. Here the consultants need the respective business process like

Finance, Controlling, Sales and Distribution, Materials Management, Production

Planning, etc. As per your profile you covered all the areas but, you should concentrate

one end to end business process of a department, or you

can go for a position Manager ERP where ERP implemented. You should

update all ERP modules overview.


SELECTION OF ERP SYSTEM

Once the BPR is completed the next task is to evaluate and select a suitable package for

implementation. Evaluation of the right ERP package is considered as more crucial step.

Evaluation and selection involves:

checking whether all functional aspects of the Business are duly covered

checking whether all the business functions and processes are fully integrated

checking whether all the latest IT trends are covered

checking whether the vendor has customizing and implementing capabilities

checking whether the business can absorb the cost

checking whether the ROI is optimum

IMPLEMENTATION OF ERP SYSTEM

Implementing an ERP package has to be done on a phased manner. Step by step method of

implementing will yield a better result than big-bang introduction. The total time required for

successfully implementing an ERP package will be anything between 18 and 24 months

Because of their wide scope of application within a business, ERP software systems are

typically complex and usually impose significant changes on staff work practices. Implementing

ERP software is typically not an “in-house” skill, so even smaller projects are more cost effective

if specialist ERP implementation consultants are employed. The length of time to implement an

ERP system depends on the size of the business, the scope of the change and willingness of

the customer to take ownership for the project. A small project (e.g., a company of less than 100

staff) may be planned and delivered within 3-9 months; however, a large, multi-site or multi-

country implementation may take years.

To implement ERP systems, companies often seek the help of an ERP vendor or of third-party

consulting companies. These firms typically provide three areas of professional services:

consulting, customization and support, data migration is one of the most important activities in

determining the success of an ERP implementation. Since many decisions must be made


before migration, a significant amount of planning must occur. Unfortunately, data migration is

the last activity before the production phase of an ERP implementation, and therefore receives

minimal attention due to time constraints.

ERP LIFE CYCLE

ERP lifecycle is in which highlights the different stages in implementation of An ERP.

There are different stages of the ERP implementation that are as give below:


Pre evaluation Screening

Evaluation Package

Post implementation

Testing

Team training

Re engineering

Gap Analysis

Project Planning

1. Pre evaluation Screening

Once the company has decided to go for the ERP system, the search for the package must

start as there are hundreds of packages it is always better to do a through and detailed

evaluation of a small number of packages, than doing analysis of dozens of packages. This

stage will be useful in eliminating those packages that are not suitable for the business process.

2. Evaluation Package

This stage is considered an important phases of the ERP implementation, as the package that

one selects will decide the success or failure of the project. Implementation of an ERP involves

huge investments and it is not easy to switch between different packages, so the right thing is

‘do it right the first time’. Once the packages to be evaluated are identified, the company needs

to develop selection criteria that permit the evaluation of all the available packages on the same

scale.

3. Project Planning

This is the phase that designs the implementation process. It is in this phase that the details of

how to go about the implementation are decided. Time schedules deadlines, etc for the project

are arrived at. The plan is developed, roles are identified and responsibilities are assigned. It

will also decide when to begin the project, how to do it and it completion. A committee by the

team leaders of each implementation group usually does such a planning.

4. GAP analysis

This is considered the most crucial phase for the success of ERP implementation. This is the

process through which the companies create a complete model of where they are now, and in

which direction will they opt in the future. It has been estimated that even the best packages will

only meet 80% of the company’s requirements. The remaining 20% presents problematic issues

for the company’s reengineering.


5. Reengineering

It is in this phase that human factors are taken into consideration. While every implementation is

going to involve a significant change in number of employees and their job responsibilities, as

the process becomes more automated and efficient, it is best to treat ERP as an investment as

well as cost cutting measure.

6. Team training

Training is also an important phase in the implementation, which takes place along with the

process of implementation. This is the phase where the company trains its employees to

implement and later, run the system. Thus, it is vital for the company to choose the right

employee who has the right attitude- people who are willing to change, learn new things and are

not afraid of technology and a good functional knowledge.

7. Testing

This is the phase where one tries to break the system. One has reached a point where the

company is testing the real case scenarios. The system is configured and now you must come

up with extreme cases like system overloads, multiple users logging on at the same time, users

entering invalid data, hackers trying to access restricted areas and so on. This phase is

performed to find the weak link so that it can be rectified before its implementation.

8. Post implementation

One the implementation is over, the vendor and the hired consultants will go. To reap the fruit of

the implementation it is very important that the system has wide acceptance. There should be

enough employees who are trained to handle problems those crops up time to time. The system

must be updated with the change in technology. The post implementation will need a different

set of roles and skills than those with less integrated kind of systems.


However, an organization can get the maximum value of these inputs if it successfully adopts

and effectively uses the system.

DUDH SAGAR DAIRY HAS IMPLEMENTED FOLLOWING MODULES OF

ORACLE E-BUSINESS SUIT VERSION 11.5.9

FUNCTIONAL MODULES OF ERP SOFTWARE

ERP software is made up of many software modules. Each ERP software module mimics a

major functional area of an organization. Common ERP modules include modules for product

planning, parts and material purchasing, inventory control, product distribution, order tracking,

finance, accounting, marketing, and HR. Organizations often selectively implement the ERP

modules that are both economically and technically feasible.

(1) Oracle Purchasing

(2) Oracle Inventory (Stock)

(3) Oracle Process Manufacturing (Production)

(4) Oracle Enterprise Asset Management (EAM) (for asset maintenance)

(5) Oracle Order Management (sales)

(6) Oracle Financial for Finance & Accounts

(a) General Ledger

(b) Account Payable (Creditors)

(c) Account Receivables (Debtors)

(d) Cash Management

(e) Fixed Assets


(1) Oracle Purchasing

Oracle Purchase module streamlines procurement of required raw materials. It automates the

processes of identifying potential suppliers, negotiating price, awarding purchase order to the

supplier, and billing processes. Purchase module is tightly integrated with the inventory control

and production planning modules. Purchasing module is often integrated with supply chain

management software.

Oracle Purchase aims at making available the required materials of the right quality, in the right

quantity, at the right time and at the right price, for the smooth functioning of the organization.

All purchasing and subcontracting activities such as inviting quotations, supplier evaluation,

placing purchase order, order scheduling and billing are covered in this module. Order tracking

is made easy for the purchase department by the various reports and MIS that are available in

Purchase module. Import of goods is also handled by the system. Oracle Purchase is integrated

with Inventory, Finance & Production Planning.

(2) Oracle Inventory (Stock)

Oracle Inventory module facilitates processes of maintaining the appropriate level of stock in a

warehouse. The activities of inventory control involves in identifying inventory requirements,

setting targets, providing replenishment techniques and options, monitoring item usages,

reconciling the inventory balances, and reporting inventory status. Integration of inventory

control module with sales, purchase, finance modules allows ERP systems to generate vigilant

executive level reports.


Oracle inventory covers all stock related functions of an organization. Stock management and

valuation activities, which form the backbone of any organization generally, take a lot of time

and resources. Inventory handles all the store activities of issues, dispatches, receipts and

quality control. The lot wise stock of each item is maintained and various MIS are provided for

tracking stock movement. Inventory is integrated with Sales, Purchase, Finance, Customer

Care, Equipment Maintenance, Production Planning and Production.

(3) Oracle Process Manufacturing (Production)

In the process of evolution of manufacturing requirements planning (MRP-II) into ERP, while

vendors have developed more robust software for production planning, consulting firms have

accumulated vast knowledge of implementing production planning module. Production planning

optimizes the utilization of manufacturing capacity, parts, components and material resources

using historical production data and sales forecasting.

Oracle Production Planning helps an organization plan production with the optimum utilization of

all available resources. Material Requirement Planning is done based on the production advice

generated by the sales department. Feasibility of production is evaluated using details like raw

material availability and procurement time, machine availability and capacity. A production

schedule is generated for all machines where the scheduling is done in an optimized fashion

based on the priorities of production. Production Planning is integrated with Sales, Inventory,

and Purchase & Production.

(4) Oracle Enterprise Asset Management (EAM)(Engineering)

Oracle Enterprise asset management helps in maintaining the fixed assets of an organization.

Contracts with service providers can be made after which service requisitions and job orders

are issued. The periodic as well as unscheduled maintenance details of machinery can be

recorded. Maintenance bills can also be generated. Equipment Maintenance provides reports,

which help in analyzing the data pertaining to maintenance activities of the machinery. Oracle

Equipment Maintenance is integrated with Assets, Inventory and Finance.


(5) Oracle Order Management (Sales)

Revenues from sales are live blood for commercial organizations. Oracle Sales module

implements functions of order placement, order scheduling, shipping and invoicing. Sales

module is closely integrated with organizations' ecommerce websites. Many ERP vendors offer

online storefront as part of the sales module.

Sales is the most important and essential function for the existence of an organization. Oracle

Sales handle all the activities for domestic and export sales of an organization. The customer

and product database is maintained. Sales Force Automation is an important feature of Oracle

Sales. Capturing enquiries, order placement, order scheduling and then dispatching and

invoicing form the broad steps of the sales cycle. Stock transfer between warehouses is also

covered. Besides all this, important analysis reports are provided to guide decision making and

strategy planning. Export documents are also generated. Oracle Sales is integrated with

Inventory, Production Planning and Finance.

(6) Oracle Financial for Finance & Accounts

a) General ledger

b) Account payable(creditors)

c) Account receivables(debtors)

d) Cash management

e) Fixed assets

Both for-profit organizations and non-profit organizations benefit from the implementation of

ERP financial module. The financial module is the core of many ERP software systems. It can


gather financial data from various functional departments, and generates valuable financial

reports such balance sheet, general ledger, trail balance, and quarterly financial statements.

Oracle Finance streamlines the financial operations of a company. Chart of groups and chart of

accounts are defined here. All vouchers related to journal entries, sales, purchase, receipt and

payment are recorded. Using Oracle Finance a company can generate balance sheet, general

ledger, trial balance, profit & loss statement and daybooks besides many other transactional

reports. Oracle Finance is integrated with Sales, Purchase, Inventory, Costing, Customer Care

and Equipment Maintenance.

VARIOUS ERP PROCESS CYCLE

(1) Procure to pay

(2) Quote to cash

(3) Storage to distribution

(4) Plan to produce

(5) Works to pay

(6) Accounting to profit


(1) Procure to pay


Creation of PO

PO Approval as per authority

Printing of PO

Receipts entry

Inspection Entry

Acceptance / Rejection

Entry of supplier invoice

Match Invoice with receipt / PO

FEATURES & HIGHLIGHTS:

Highly parameterized – to reduce data entry

Streamlines purchase and process cycles

Detailed Supplier/Subcontractor/Service Provider database

Capturing materials requirement

Automatic firing of purchase requisitions based on MRS

Quotations from various suppliers

Quotation validity

MIS for vendor evaluation based on quality, price & delivery time

Subcontracting – generation of process orders

Multiple indents for multiple items in a single PO

Purchase order processing for

– Raw Materials

– Sub-contracted items

– Bought out items

– Non-inventory items


Approval of payments

Payment - Cheque printing

Variance booking

STD cost updating

Closing of PO

– Fixed Assets

Purchase order entry with item details and other details like taxes, discounts,

extra

Charges like freight, P&F, octroi etc.

Flexibility to generate Purchase Order in domestic and foreign currency

Recording Payment terms in PO

Excise consideration in Purchase and Process Orders

PO authorization

PO amendments with complete amendment history

Order cancellation and order closing

Multiple delivery schedules

Quality inspection of goods

Advance adjustments

Purchase bill with updation of GL and purchase book

Service contracts, Service Bills, Service indents and PO

Value based approval of indents

Bill of Entry

Complete import functionality with handling of custom details - Purchase Bill for

import, Excise consideration in imports

Reports for Order tracking for complete control on the procurement cycle

SCM integration through Internet – posting quotation on web by suppliers.

Importing quotations into ERP after validations


(2) Quote to cash


Sales Quotations

Approval of quotations

Creation of Sales Order

Confirmation of Order

Printing of Order

Allocations as per the Stock

Picking list generation

Picking list printing

Stock delegations

Lot confirmations


Sales booking

Revenue updations

Sales commission/bonus updations

Sales closing

Delivery

Shipment advice

Invoice generations

Invoice printing

AR booking

Cheque entry

Revenue updations


Handles pre-sales and sales activities of the organization

Complete stock-to-dock tracking of sales order processing cycle

Sales Force Automation – Prospect tracking through various stages, detailed

Competitor products information location-wise, scheduling marketing executives’

Visits, tracking expenses

Marketing surveys for estimating demand for various products to prepare an

Effective marketing strategy

Detailed Customers/ Business Partners/ Dealers database including bank details,

TDS details, contact details and credit limit

Target setting for executives

Association of customers to Marketing Executives and Business Partners for

Tracking

Flexibility to define customer-specific prices for products and reference to customer

Part no.

Multiple dispatch location for customers/dealers

Product Definition - up to 30 character user-defined product code, Product

Category, group and subgroup for classification of products

Complete export documentation for export oriented companies

Excise details (chapter no. associated with excisable products)

Enquiries from potential and existing customers

Quotations and amendments to quotations with complete history

Analyzing lost jobs

Different types of orders can be generated to suit varied needs of customers

Order entry for direct/scheduled/open/D3/sample orders with details for Dealers,

Incentive % and competition

Order calculation based on price offered, discounts (line and total), excise, taxes,

Freight etc.

Letter of credit details for association with sales orders


Order amendment history

Authorization of orders and invoices

Order scheduling over a period of time and tracking delivery schedule

Order tracking through status and transaction reports

Order closing/cancellation

Generation of production advice to plan for production based on sales orders

Order processing based on MRP

Preparation of dispatch advice

Multiple dispatches against single Sales Order

Invoice generation with advance adjustments – sales voucher automatically

Generated in Finance

Tracking sales returns

Rejection invoice for rejections made against purchases with excise consideration

MIS for analyzing sales trends to project and forecast sales

Stock Transfer between warehouses for multi-locational companies

Service invoice for services given to customers

Variance reports

Enables top view - consolidation of sales data for all child companies


(3)Storage to distribution


New receipt

Matching with purchase order

Receipt of inventory

Inspection

Accept/reject

Deliver (if rejected return to vendor)

OPM inventory

OPM inventory control

Transact process purchase order


Online status of item quantity in terms of on-hand, on-hand, available, reserved,

ordered, to order, rejected, defective and rework able quantities.

Complete excise functionality and generation of excise registers

Up to 30 Character alphanumeric stock code

Multiple levels of classification of items

Excisable items – Definition and Chapter allocation

Multiple units of measurement

Alternate items for Production Planning

Handling of non-stock low value items like stationery

Lot wise tracking of inventory at shop floor and main stores

Stock Valuation – LIFO/FIFO/weighted average

Material Requisition from different requirement areas

Purchasing and subcontracting

Receiving material against sales order processing, material requirement,


Manual lot allocate

Closing of storage to distribution

Transact

Subcontracting, gate pass and production requisition

Landed Rate of Items

Quality Control based on QC parameters

Handling Material Rejections

Rejected Material dispatch to subcontractors

Linking of GRN to PO and Invoice

Gate pass – returnable/non returnable

Cenvat claim for capital goods

Analysis which help in maintaining optimum stock levels

Physical verification of stock

Reallocation of rework able stock

Multiple warehouses/branches/regional offices

Stock transfer – receipts from other warehouse

Consolidation of all warehouses

Consolidation at any level of company hierarchy


(4)Plan to produce


Process definition with inputs, outputs, by-products and overheads

Definition of Bill of Material for all products up to any number of levels

Planning based on customer wise production advice and sales forecast


Creation of the Production Order

Approval of the production order

Release of the production order

Issue of the Raw materials

Receipt the Finished Goods

Complete the Production order

Material requirement planning: MRP based on machine capacity and availability,

machine efficiency, raw material availability, lead time - giving feasible quantity

for production

Production plan for machines with optimum utilization of all available resources

like raw materials and machines

Option to revoke production plan to change input parameters/ production priority/

quantity using fresh production advice

Generation of production schedule for machines detailing inputs and outputs

Analysis of machine efficiency and utilization

Automatic generation of MRS and purchase requisitions on finalization of plan

Generation of process requisition for processes that have to be subcontracted

Reserving quantity for production

Automatic generation of job orders for production

Option to make daily plans for production


(5)Work to pay


Log In Engineering

EAM > Work Order

Release Work OrderWork order transaction>material

transaction

12) WORK ORDER TRANSACTION > MATERIAL TRANSACTION

Resource Transaction

Work order completion

Close work order


Database of service providers and contracts with them

Recording of Maintenance requisitions

Generation of job orders based on quotations sent by service providers

Maintenance schedule for monthly and annual maintenance

Generation of maintenance bill with updation in Finance

Tracking of warranty activities, claims, equipment utilization and breakdown

maintenance

Categorization of maintenance activities and assigning priority

Unplanned maintenance work and besides schedule maintenance


Make the payment

Make the invoice

(6)Accounting to profit


Define Accounting Policy

Define Chart of Accounts

Define fiscal calendar and currency

currency

Define Process wise document sequence

currency

Define Process wise accounts mapping (Default

accounts)

currency

Define Inventory Organizations

and Inventory Locations

currency


Caters to both national and international markets: user-defined formats for number,

currency and date

Consolidated reports for any level of the company hierarchy

Drill down reports to reach up to the voucher level

Up to 7 levels of groups with up to 999 groups at each level

28 system defined groups

Entering pending voucher details at the time of accounts creation

Definition of subsidiary ledgers

User definable precision for amounts (no. of digits after decimal)

Flexibility of Indian/American number system

Printing of amount in words in any language

Multi-branch accounting

Allocation of income and expenses to cost centers

Department wise budget allocation for all accounts

Online and batch posting of vouchers by authorized users

Defining narration for vouchers for ease of data entry

Flexible voucher numbering – daily, weekly, monthly, yearly and carry forward

Transaction limit for vouchers

Up to 999 entries per voucher

Transactions in multiple currencies


Import data in general ledger for the month, post the data and generate trial

balance

Monthly close sub-module

Conversion rates on selling/buying price

Adjustments of exchange fluctuations

Fiscal year definition

Enterable sales/purchase voucher till sales/purchase modules are live

Receipt/Payment voucher

- Against invoice/bill

- On account

- New reference – against orders

- advance adjustments

Complete TDS functionality

TDS monitoring through integrated inputs from purchase and payments

Debit notes/credit notes

- On account

- New reference – against order

- Against invoices/bills

Book closing

Period closing

Financial year closing

- All accounts closing

- Bank and cash closing

- Transfer without closing – ability to work in 2 financial years

Simultaneously


TECHNICAL SPECIFICATION FOR IMPLEMENTATION OF ERP SYSTEM AT DUDHSAGAR DAIRY,MEHSANA

Dudhsagar dairy has implemented ORACLE-E-BUSINESS SUIT(VERSION-11.5.9) as ERP SOFTWARE.

Dudhsagar dairy uses Linux operating system for ERP SOFTWARE.

Dudhsagar dairy uses following hardware for ERP SOFTWARE.

IBM X445/X235


ADVANTAGES OF ERP SYSTEM IN FINANCE & ACCOUNTS DEPARTMENT OF DUDHSAGAR DAIRY..

At DUDH SAGAR DAIRY with the help of ERP SYSTEM it is easier and faster to

get financial data from various departments like purchase department, sales

department, store department, production department and it generates valuable

financial reports such balance sheet, general ledger, trail balance, and quarterly

financial statements.

With the help of ERP SYSTEM at DUDH SAGAR DAIRY, all vouchers related to

journal entries, sales, purchase, receipt and payment are recorded at finance &

accounts department.

By using ERP SYSTEM at DUDH SAGAR DAIRY, the preparation of valuable

financial reports such balance sheet, general ledger, trail balance, and quarterly

financial statements become accurate.

After implementation of ERP SYSTEM at DUDH SAGAR DAIRY, the

requirement of HUMAN RESOURCE is reducing.


Ex. Before implementation of ERP SYSTEM at DUDH SAGAR DAIRY there are

21 employees in internal audit department but after implementation of ERP

SYSTEM at DUDH SAGAR DAIRY, there are only 4 employees in internal audit

department.

With the help of ERP SYSTEM at DUDH SAGAR DAIRY, there is increase in

co-ordination among employees in finance & accounts department.

After implementation of ERP SYSTEM at DUDH SAGAR DAIRY, it is become

very easier to checkout the past accounts and their impact on present accounts.

The chances of mistakes while preparing valuable financial reports such balance

sheet, general ledger, trail balance, and quarterly financial statements can be

reduced with the help of ERP SYSTEM at DUDH SAGAR DAIRY

ERP SYSTEM at DUDH SAGAR DAIRY is very useful for saving time.

The use of ERP SYSTEM at DUDH SAGAR DAIRY eliminates the paper work.

Other departments of DUDH SAGAR DAIRY can share all information regarding

receipt & payment through the ERP SYSTEM.

Planning and allocation of financial resources become efficient & accurate with

the help of ERP SYSTEM at DUDH SAGAR DAIRY

With the help of ERP SYSTEM at DUDH SAGAR DAIRY TDS monitoring

through integrated inputs from purchase and payments become easier.

ERP SYSTEM performs Other function involves taxation .i.e. income tax

payment, TDS, sales tax & other taxes. It also takes care of benefit schemes for

employees like PF, Gratuity and Insurance etc.


Department wise budget allocation for all accounts efficiently by using ERP

SYSTEM at DUDH SAGAR DAIRY

Profitable Allocation of income and expenses to cost centers after

implementation of ERP SYSTEM at DUDH SAGAR DAIRY

LIMITATIONS OF ERP SYSTEM IN FINANCE & ACCOUNTS DEPARTMENT

OF DUDHSAGAR DAIRY..

As Once a ERP SYSTEM is established At DUDH SAGAR DAIRY, switching

costs are very high.(reducing flexibility and strategic control at the corporate

level).

The blurring of company boundaries can cause problems in accountability,

lines of responsibility, and employee morale.

At DUDH SAGAR DAIRY resistance in sharing sensitive internal information

between departments can reduce the effectiveness of the software.

In FINANCE & ACCOUNTS DEPARTMENT ERP system may be too

complex measured against the actual needs of the DAIRY.

ERP SYSTEM at DUDH SAGAR DAIRY is not useful to record the collection

of milk from various co-operative societies and the payment to co-operative

societies so DUDH SAGAR DAIRY has to use MCBS Software(Milk

Collection & billing system)


ERP SYSTEM at DUDH SAGAR is not useful to maintain the accounts of

farmers of various co-operative societies, and DUDH SAGAR DAIRY has to

use TALLY Software.

Though the employees from TCS provide training to employees of DUDH

SAGAR DAIRY regarding ERP SYSTEM for one year but still the employees

are not well aware about the uses of ERP SYSTEM and they are often take

help of their colleagues and take advice from their senior employees which

creates disturbance while recording various important transactions.

A small mistake while recording the transaction will affect all other accounts

badly which may result in a very big mistake.

DUDH SAGAR DAIRY spend about Rs. 4 crore for implementation of ERP

SYSTEM but it is not proved more beneficial for DUDH SAGAR DAIRY as

compare to cost.

CERTAIN LIMITATIONS WHICH I HAVE TO FACE WHILE PREPARING THE

PROJECT REPORT

The limiting factor of my research was the duration of the time; I could not

get over all information regarding the ERP SYSTEM implemented at

dudhsagar dairy within 21 days.

Sometimes the employees are busy with their own work so they try to

avoid explaining the system and due to that I have to wait for longer time.



IMPLEMENTATION OF ERP SYSTEM AT DUDH SAGAR DAIRY

INTEGRATION OF PROCUREMENT, MANUFACTURING (DAIRY PLANT) AND ORDER MANAGEMENT TO SIGNIFICANTLY REDUCE TIME TO MARKET AND PRODUCTION CYCLE TIME TO MEET INCREASED DEMANDS.

BUSINESS DRIVERS

Optimize Returns to stakeholders-farmer families

To be aligned with the industry best practices

Easy availability of info across the organization

BEST PRACTICES

Big bang approach

Proven implementation methodology

Enabling change management across the various layers in the organization

Obtaining high level of commitment from project sponsor

MAJOR ACCOMPLISHMENTS

First of its kind of implementation in an co-operative based dairy industry

Successful integration with business critical legacy applications for milk procurement and society transactions

Integration with customer application for order management

Implementation of oracle apps at main dairy plant, 5 remotely located chilling centers and 2 cattle feed plants

Transformation of organization from low computer literacy to use of state-of –the art technology

RESULTS

Successful implementation of oracle applications 11.5.9 covering oracle financials, order management, purchasing, OPM and EAM with online interfaces to business critical custom applications

The limiting factor of my visit was the duration of the time; I could not get over all information regarding the firm. But anyhow I have prepared the report on whatever the information I got.

It is a good experience to conduct such project and it will prove

beneficial for me in my future career and again I would like to thank all

the people who knowingly or unknowingly help me for complete the

research work regarding the study of ERP SYSTEM at DUDH SAGAR

DAIRY.


WEBSITES

www.intrasagar.com

www.tcs.com

www.erpwire.com

www.management-hub.com

www.ebizframe.com

MAGAZINE

Business Today

BOOK

Getting more out of ERP

(By David Hendrickson)

MATERIAL provided by DUDH SAGAR DAIRY


http://www.ebizframe.com/

http://www.erpwire.com/

http://www.tcs.com/

http://www.intrasagar.com/


Documents

ERP SYSTEM Report-college