IT Project MBA

8/10/2019 IT Project MBA

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Chapter 1

SYNOPSIS


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1. SYNOPSIS

There is no longer any distinction between an IT project and a

business initiative. IT is a key component of the products and services

provided by different companies. So even top executives and managers

must learn how to apply information system and technologies to their

unique business situations. The field of information systems encompasses

many complex technologies, abstract behavioral concepts and specialies

applications in countless business and nonbusiness areas. !usiness

professionals rely on many types of information systems that use a variety

of technologies. "or example some information systems use simple

manual hardware devices and informal communications channels but

some are complex. The business applications of information systems have

expanded significantly over years. #ntil the $%&'s,the role of most

information system was simple. Then another role was added, ie a trial to

develop an integrated management of business as a whole, from the view

point of the effective use of management resources, to improve the

efficiency of an enterprise. There came ()* as a solution.+riginally, ()* packages were targeted at the manufacturing

industry and consisted mainly of functions for planning and managing

core business such as sales management, production management,

accounting and financial affairs. owever, in recent years , adaptation not

only to manufacturing industry, but also to diverse type of industry has

become possible and the expansion of implementation and use has been

progressing on a global level. ()* software is designed to model and

automate many of the basic processes of a company, from finance to

shop floor, with the goal of integrating information across the company

and eliminating complex, expensive links between computer system that

were never meant to talk each other.


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1.1 Objective

(nterprise )esource *lanning is the latest high end solution,information technology has lent to business application. The ()*

solutions seek to streamline and integrate operation processes and

information flows in the company to synergise the resources of an

organisation namely men, material, money and machine through

information. Initially implementation of an ()* package was possible only

for very large -ulti ational /ompanies and Infrastructure /ompanies due

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

implementation of ()* and it is expected in the near future that &'0 of

the companies will be implementing one or the other ()* packages since

this will become a must for gaining competitive advantage.

In the present business environment, role of a /hartered 1ccountant is

considered to be very important and inevitable. /hartered 1ccountants as

managers, consultants, advisors or auditors play an important role in

controlling, managing, and supporting the business.

1s the business needs are very complex in nature, the implementation of

an ()* package needs /hartered 1ccountants with functional skills for

evaluation, !usiness *rocess )eengineering 2!*)3, -apping of !usiness

requirements, )eport designing, ensuring !usiness controls,

customiation of the package for the specific requirements,

4ocumentation etc.,

Sooner or later a /hartered 1ccountant without the knowledge of ()*

may feel as if he is a fish out of the bowl. !y this article it is attempted to

highlight various aspects of ()* and specific areas of ()* that are

relevant for /hartered 1ccountants.


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1.2 Evolution of ERP

In the ever growing business environment the following demands are

placed on the industry 5

1ggressive /ost control initiatives

eed to analye costs 6 revenues on a product or customer basis

"lexibility to respond to changing business requirements

-ore informed management decision making

/hanges in ways of doing business

4ifficulty 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 are5

-anagement Information Systems 2-IS3

Integrated Information Systems 2IIS3

(xecutive Information Systems 2(IS3

/orporate Information Systems 2/IS3

(nterprise 7ide Systems 2(7S3

-aterial )esource *lanning 2-)*3

-anufacturing )esource *lanning 2-)* II3

-oney )esource *lanning 2-)* III3

The latest planning tool added to the above list is (nterprise )esource

*lanning.


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1.3 Need for ERP

-ost organiations across the world have realied that in a rapidlychanging environment, it is impossible to create and maintain a custom

designed software package which will cater to all their requirements and

also be completely up8to8date. )ealiing the requirement of user

organiations some of the leading software companies have designed

(nterprise )esource *lanning software which will offer an integrated

software

solution to all the functions of an organisation.

eature! of ERP

Some of the major features of ()* and what ()* can do for the business

system are as below5

()* facilitates company8wide Integrated Information System

covering all functional areas like -anufacturing, Selling and

distribution, *ayables, )eceivables, Inventory, 1ccounts, uman

resources, *urchases etc.,

()* performs core /orporate activities and increases customer

service and thereby augmenting the /orporate Image.

()* bridges the information gap across the organisation.

()* provides for complete integration of Systems not only across

the departments in a company but also across the companies

under the same management. ()* is the only solution for better *roject -anagement.

()* allows automatic introduction of latest technologies like

(lectronic "und Transfer2("T3, (lectronic 4ata Interchange2(4I3,

Internet, Intranet, 9ideo conferencing, (8/ommerce etc.


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()* eliminates the most of the business problems like -aterial

shortages, *roductivity enhancements, /ustomer service, /ash

-anagement, Inventory problems, :uality problems, *rompt

delivery etc.,

()* not only addresses the current requirements of the company

but also provides the opportunity of continually improving and

refining business processes.

()* provides business intelligence tools like 4ecision Support

Systems 24SS3, (xecutive Information System 2(IS3, )eporting,

4ata -ining and (arly 7arning Systems 2)obots3 for enabling

people to make better decisions and thus improve their business

processes

Co"ponent! of ERP

To enable the easy handling of the system the ()* has been divided into

the following /ore subsystems5

Sales and -arketing -aster Scheduling

-aterial )equirement *lanning

/apacity )equirement *lanning

!ill of -aterials

*urchasing

Shop floor control

1ccounts *ayable6)eceivable ;ogistics

1sset -anagement

"inancial 1ccounting


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Supplier! of ERP

There are many numbers of ()* suppliers who are very active in the

market. Some of the companies offering renowned international ()*

products include#

!aan

/+41

4

I!-

=4 (dwards

-arcarn

+racle

*eoplesoft

*latinum

)amco

S1*

S-I

Software >'''

1.$ %PR and ERP

!usiness *rocess )eengineering is a pre8requisite for going ahead with a

powerful planning tool, ()*. 1n in depth !*) study has to be done before

taking up ()*. !usiness *rocess )eengineering brings out deficiencies of

the existing system and attempts to maximie productivity through

restructuring and re8organiing the human resources as well as divisions

and departments in the organisation

!usiness *rocess (ngineering evolves the following Steps5

Study the current system


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4esign and develop new systems

4efine *rocess, organisation structure and procedure

4evelop customie the software

Train people

Implement new system

The principle followed for !)* may be defined as #S1

principle2#nderstand, Simplify 1utomate3

i.e., #nderstanding the existing practices, Simplifying the *rocesses and

1utomate the *rocess. 9arious tools used for this principle are charted

below5

#nderstand Simplify 1utomate

4iagramming (liminating (4I

Story8boarding /ombining ()*

!rain storming )earranging

1.& Selection of ERP

+nce the !*) is completed the next task is to evaluate and select

a suitable package for implementation. (valuation of the right ()*

package is considered as more crucial step. (valuation and selection

involves5

checking whether all functional aspects of the !usiness are duly

covered

checking whether all the business functions and processes are fully

integrated

checking whether all the latest IT trends are covered


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checking whether the vendor has customiing and implementing

capabilities

checking whether the business can absorb the cost

checking whether the )+I is optimum

1.' I"ple"entation of ERP

Implementing an ()* package has to be done on a phased

manner. Step by step method of implementing will yield a better result

than big8bang introduction. The total time required for successfully

implementing an ()* package will be anything between $? and >@

months. The normal steps involved in implementation of an ()* are as

below5

*roject *lanning

!usiness < +perational analysis including Aap analysis

!usiness *rocess )eengineering

Installation and configuration

*roject team training

!usiness )equirement mapping

-odule configuration

System interfaces

4ata conversion

/ustom 4ocumentation

(nd user training

1cceptance testing

*ost implementation61udit support

The above steps are grouped and sub8divided into four major phases

namely $3detailed discussions, >3 4esign < /ustomisation, B3


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Implementation and @3 *roduction. The phases of implementation vis8a8vis

their tasks and respective deliverables are as below5

4etailed 4iscussion *hase5

Task 58 *roject initialiation, (valuation of current processes, business

practices, Set8up project organiation

4eliverables58 1ccepted norms and /onditions, *roject +rganisation chart,

Identity work teams

4esign and customisation *hase5

Task 58 -ap organisation, -ap business process, 4efine functions and

processes, ()* software configuration and !uild ()* system

modifications.

4eliverables 58 +rganisation structure, 4esign specification, *rocess "low

4iagrams, "unction -odel, /onfiguration recording and system

modification.

Implementation *hase5

Task 58 /reate go8live plan and documentation, Integrate applications,

Test the ()* customisation, Train users

4eliverables 58 Testing environment report, /ustomisation Test )eport and

Implementation report

*roduction *hase5

Task58 )un Trial *roduction, -aintain Systems

4eliverables58 )econciliation reports, /onversion *lan (xecution


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1.( %enefit! of ERP

The benefits accruing to any business enterprise on account of

implementing are unlimited. 1ccording to the companies like IC(, 4;,

Tektronix, "ujitsu, -illipore, Sun -icrosystems, following are some of the

benefits they achieved by implementing ()* packages5

Aives 1ccounts *ayable personnel increased control of invoicing

and payment processing and thereby boosting their productivity

and eliminating their reliance on computer personnel for these

operations.

)educe paper documents by providing on8line formats for quickly

entering and retrieving information.

Improves timeliness of information by permitting, posting daily

instead of monthly.

Areater accuracy of information with detailed content, better

presentation, fully satisfactory for the 1uditors.

Improved /ost /ontrol

"aster response and follow up on customers

-ore efficient cash collection, say, material reduction in delay in

payments by customers.

!etter monitoring and quicker resolution of queries.

(nables quick response to change in business operations and

market conditions.

elps to achieve competitive advantage by improving its business

process.

Improves supply8demand linkage with remote locations and

branches in different countries.

*rovides a unified customer database usable by all applications.


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Improves International operations by supporting a variety of tax

structures, invoicing schemes, multiple currencies, multiple period

accounting and languages.

Improves information access and management throughout the

enterprise.


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Chapter 2

RESE)RC* +ESI,N


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2. RESE)RC* +ESI,N

)esearch is a systematic and logical study of an issue or a problem

to arrive at accurate results, research the job of collecting, recording and

analying relevant data to arrive at decisions. The present study is

systematic, objective and exhaustive search for studies of the facts

)elevant to a problem in the field of uman resource management.

Revie- of iterature

-y reference material comes from the existing system information

that the company has. There is no such general information regarding this

aspect because it relates to the internal affairs of the company.-y present

research deals with finding the flaws and trying to come to a conclusion

whether an enhanced variant of the present system would be

advantageous or not.

Population !i/eThe study encompasses all the employees of the software enterprises.

2.1 Sa"plin0 "ethod and !a"ple !i/e

Sampling plan581n integral component of a research design is the

sampling plan, specifically it addresses three questions.

7hom to surveyD 2Sampling unit3

ow many to surveyD 2Sample sie3

ow to select themD 2Sampling procedure3


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Since the number of employees in the concerned organiation are thirty,

we have taken all the thirty as sample.

2.2 +ata collection de!i0n

4ata was collected with the help of using questionnaires. 1

questionnaire, which is also known familiarly as an interview schedule with

a format containing a list of questions sequentially ordered to obtain

information relevant to the objectives of the study, was developed.

Structure and undisguised questionnaire was chosen as the questions

could be presented with exactly the same order to all the respondents.

The reason for standardiation was to ensure that all respondents were

replying to the same question.

The questionnaire for research included a combination of the following

kinds of question

/lose8ended

4irect question

The questionnaire proved out to be very helpful in conducting the survey.

*rimary data will be collected through questionnaire survey. In this method

questionnaire was prepared and given to the sample population to fill.

ield -or

The fieldwork was the data collection by contacting the respondents

personally at their respective work desks. 1nd few of the information

gathered were through (8mailed questionnaires.


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2.3 ethod of )nal!i!

The data collected through questionnaire and the records available was

examined in detail. It was further tabulated with various statistical tests.

2.$ State"ent of the proble"#

The existing software of the concerned company is not efficient.

The expected productivity is not obtained from the system. The employees

are finding it difficult to use.

2.& Scope of the !tud

This is a attempt to design an ()* system which involves an

integrated automation of entire processes done in the concerned company

.In this present day when companies, irrespective of their market sie and

market share, are selling in various areas of the world. ()* is a best

available solution for them. ()* packages are targeted at everything fromsmall business to largest organiations, and that can be composed of a

highly flexible decentralied database and an information system cluster

linked by a network. 1n ()* package can not only handle individual

business functions such as accounts, ) and material management, but

also the entire range of business functions necessary for the companyEs

operations.


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2.' Objective! of the !tud#

Pri"ar objective#

To analye the enhancements required for the current manual

system and to design an automated system.

Secondar objective#

To make it more user friendly

To include a search engine

To include a scrape management system

2.( *pothe!i!#

*4 #The functions performed by the existing system of the concerned

company are inefficient.

*1 #The functions performed by the existing system of the concerned

company are efficient.

Pri"ar !ource#

The researcher will collect the data directly from sample

respondents through direct interview method and with the help of

structured questionnaire.

Secondar !ource#

The secondary data for the study will be collected from various

journals, survey reports, books and magaines.


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Sa"plin0 techni5ue#

The employees of the concerned company are taken as a sample

and will carry out the study.

+uration# $ month

i"itation!#

Time and cost matters the survey to some extend.


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Chapter 3

IN+6S7RY PR OIE


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3. IN+6S7RY PROIE

8hat i! ERP9

()* stands for (nterprise )esource *lanning. ()* software integrates all

of your major business processes, which helps ensure consistent data

across all your functional departments. ()* applications typically consist

of modules such as -arketing and Sales, "ield S ervice, *roduction,

Inventory /ontrol, *rocurement, 4is tributio n,uman )esources, "inance,

and 1cco u nting.

()* business process model fully integrates ()* and /)- capabilities

to help you effectively manage a wide range of functions across your

enterprise. It offers an effective blend of enterprise resource planning,

customer relationship management, partner relationship management,

supply chain management, and online analysis processing. This gives you

the ability to make qualified business decisions based on a seamless,

B&'8degree view of your business, customers and vendors.

3.1 8hat "ae! ERP better9

Fast and Flexible Implementation

1ll of the information provided during implementation can be adapted or

modified at any time to meet the changing needs and demands of your

company. !y choosing ()*, you can reduce hidden organiational, on8

going8integration, operational and maintenance costs.

Designed for the Global Economy

Traditional ()* applications werenFt developed for the complexities of the

global market. Aaps in functionality arise when these features are simply

layered on top of existing code. !ut now it is designed with global markets
http://www.compiere.org/service.htmlhttp://www.compiere.org/distribution.htmlhttp://www.compiere.org/distribution.htmlhttp://www.compiere.org/distribution.htmlhttp://www.compiere.org/accounting.htmlhttp://www.compiere.org/crm.htmlhttp://www.compiere.org/distribution.htmlhttp://www.compiere.org/accounting.htmlhttp://www.compiere.org/crm.htmlhttp://www.compiere.org/service.html


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in mind, featuring multi8cu r rency, smulti8ta x , multi8cos t ing, multi8

accounting and m u lti8organi a tional functionalities. The a c countin g

solutions cater to the needs of enterprise, no matter what currency or

schema you use. ()* even provides the flexibility to account in one or

more1cc o unting Sc h ema inparallel. It also features langua g e packs and

the ability to customie both the 7eb Store and the a p plicati onitself to suit

your language requirements.

Can ERP !oft-are i"prove the co"pan:! bu!ine!! perfor"ance9

()* solutions give you the ability to save time and money across your

entire enterprise. 7ith ()* software you need only input customer,

vendor, and order data once and then share it across your functional

departments. Gou can automate inventory and warehouse procedures as

well as billing and accounting procedures. Gou can use ()* applications

to create reports and analye enterprise trends quickly and easily,

allowing you to respond quickly to shifts in the market. It also helps make

e8commerce easy. The information in 7eb Store is shared with the

standard application, so no synchroniation or extra integration work isrequired.

8ill an ERP application fit the -a I do bu!ine!!9

7ith traditional ()* solutions, this question was vital. ()* applications

normally come with a built8in system of H!est *racticesH whose restrictive

rules limit your business processes. ()* system are built to adapt to your

business structure because we know that every company has uniqueneeds.
http://www.compiere.org/technology/multi/currency.htmlhttp://www.compiere.org/technology/multi/currency.htmlhttp://www.compiere.org/technology/multi/tax.htmlhttp://www.compiere.org/technology/multi/costing.htmlhttp://www.compiere.org/technology/multi/costing.htmlhttp://www.compiere.org/technology/multi/accounting.htmlhttp://www.compiere.org/technology/multi/org.htmlhttp://www.compiere.org/technology/multi/org.htmlhttp://www.compiere.org/accounting.htmlhttp://www.compiere.org/accounting.htmlhttp://www.compiere.org/accounting.htmlhttp://www.compiere.org/technology/multi/accounting.htmlhttp://www.compiere.org/technology/multi/translation.htmlhttp://www.compiere.org/technology/multi/ss_arabic.htmlhttp://www.compiere.org/technology/multi/ss_arabic.htmlhttp://www.compiere.org/functionality/ws.htmlhttp://www.compiere.org/technology/multi/currency.htmlhttp://www.compiere.org/technology/multi/tax.htmlhttp://www.compiere.org/technology/multi/costing.htmlhttp://www.compiere.org/technology/multi/accounting.htmlhttp://www.compiere.org/technology/multi/accounting.htmlhttp://www.compiere.org/technology/multi/org.htmlhttp://www.compiere.org/accounting.htmlhttp://www.compiere.org/accounting.htmlhttp://www.compiere.org/technology/multi/accounting.htmlhttp://www.compiere.org/technology/multi/translation.htmlhttp://www.compiere.org/technology/multi/ss_arabic.htmlhttp://www.compiere.org/functionality/ws.html


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Can ERP !oft-are help -ith inte0ration proble"!9

+ne of the reasons businesses look into an ()* installation is that their

enterprise is experiencing difficulty in integrating the information they have

stored in widely diverse applications that canFt HtalkH to one another.

+rganiations within a company may even use different programs to

perform the same functions. 7hen you install an ()* application you

solve many of your information integration problems. 7ith an ()* system

you have better data quality, since information need only be entered once

to be available to the entire company. Gou are also able to easily run

reports using enterprise8wide data, allowing you to quickly see trendsdeveloping within specific organiations or across your entire company.

3.2 COP)NY PROIE

ano8tech /ontrols was set up in >'' with an aim to establish itself

among leading Alobal IT Solutions *roviders. +n road to the vision, the

company has already emerged among IndiaFs fastest growing

organiations that provide quality IT and IT enabled services to itsclients.

ano8tech /ontrols provides IT solutions to meet the business

needs of small and medium enterprises. 7e provide comprehensive

technology and web branding solutions spanning varied business

domains and entrepreneurial ventures. +ur solutions involve research,

business process analysis and use of relevant technology.

ano8tech /ontrols is focused on leveraging information

technology to help small and medium enterprises achieve their

business goals. 7e do this by combining our technology strengths with

our business analysis skills so that the application serves the needs of

the target audience and is technologically robust.


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ano8tech /ontrols is an organiation with four distinct skill sets5

7e are a consulting company that generates ideas, evaluates business

processes and helps our clients in formaliing an idea, application, or aprocess.

7e craft a unique information technology solution that will deliver value

and addresses all your business needs.

7e package the solution in a visual medium so that we deliver a unique

and interesting user experience

I7 Con!ultin0 and %u!ine!! Solution!

7ith over >' successful projects ano8tech /ontrols provides the

necessary solutions for the small and medium enterprises to enable

them to leverage the strength of IT by automating business processes.

7e ensure that value is added to your company by adding value to

your business processes, define new processes and automate them to

comprehensively address current and future business needs.

7echnolo0 Solution!

+ur technology services include offshore software development,

application < data migration, remote database management,

embedded system solutions and other services which help enterprises

enhance value of their existing IT infrastructure. 7e ensure that our

technology solutions help you increase the effectiveness of your current

IT infrastructure.


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IN7E,R)7E+ ;IS6) +ESI,N

uman computer interaction has become an important parameter

in developing all business applications which have multiple sets ofusers. +ur integrated visual design teams along with our business

analysts ensure that all your applications have an aesthetic and intuitive

visual interface and navigation. +ur visual design team produces highly

creative new media and print media solutions including web branding,

promotion and corporate collaterals.

3.3 O6R ISSION

i!!ion# To become the best in the world in providing our clients

with world8class products and services that help select, develop, and

retain business status.

;alue!5 7e are committed to5

!eing customer driven and quality focused.

1dding value to our clients and improving business results by

providing products and services that are valid, easy to use,

fast, and cost effective.

/ontinuously improving our offerings to ensure both the content

and the technologies are innovative and leading edge.

(mpowering our clients to use ano8tech /ontrols products and

services in a flexible manner to meet their needs

!eing governed by high standards of integrity and professional

ethics.


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Chapter $

PRO


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$. Project Overvie-

$.1 Choo!in0 ERP Soft-are

()* failure cannot be tolerated by organiations as it involves greatmoney. +n the contrary ()* success makes great money. The causes of()* failure can be a result of any of the following elements acting incombination or individually5

eetin0 and con!ultation! in the or0ani/ation! to decide ERP

Selecting ()* software does not happen all on a sudden or as a result ofan overnightFs discussion. There is lot of groundwork that needs to bedone in this regard. There are many reasons for the ambiguity, with the

foremost being advent of Internet. This has expanded the scope ofcomputers and redefined the technological implications in the business.1s a result there is more expectations and demand. These were notforeseen earlier. 1dvancement in computing indirectly implies theadvancement in enterprise resource planning. eedless to say theconstant updating, upgrading and innovating have become the benchmarkof ()* packages. The indecisive mind of companies in choosing ()* software solutions needs no explanation.

*ire or %u ERP

There are two alternatives in choosing ()* software for the company.The first one is purchasing the software while the second one is obtainingone on hiring basis. There arenFt any differences in terms of costs orbenefits irrespective of the option that the company goes for. It all lies inhow best the company makes use of ()*. owever the company has tostick on to any one option as soon as it finalies.

ERP !hould Suit co"pan preference!

/ompanies that choose ()* on grounds of their own preferencessucceed in the long run than other companies. +ther companies who sail

by some decision that does not justify their preferences are most unlikelyto succeed.

Choo!in0 the ERP vendor

The quality of the services offered by the vendor is equally detrimental inchoosing ()* software. !uyers generally tend to purchase from sellerswho have got adequate experience in ()* *roducts and services. This is


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the usual practice for any commodity. This has to be strongly followed inthe case of ()* as there are several dimensions involved with regards todecision making. evertheless /hoosing to buy from the right person isalone not enough. ow the organiation makes the best use of it in

response to the specific needs, to avail the best services is moreimportant in deciding to buy ()* Systems.

()* implementation will be successful if certain guidelines are followed inchoosing ()* software. There is a dual purpose in ()*. It is neithermeant exclusively to benefit the trade procedures in the organiation norhelp the technological contents. It has to make both ends meet. This Ceyfunction holds ()* in a special manner when compared with any othersystem. Therefore the company must be prudent enough to choose anapplication that caters to this advantage to the maximum extent. Thereforeif a company chooses an enterprise process to assist the business or

technology alone the decision will not yield the required results.

E!!ential Ele"ent! of an ERP S!te"

If a company is able to obtain all the related products of ()* from oneseller 6vendor then it can be termed as a profitable 9enture. The companywill be able to avail their services in all matters relating to ()* solutions.This is highly recommended and regarded as a wonderful combination.7hen they choose to buy an ()* application of a particular module itmust be ensured that they enable connectivity and facilitate data transferwhich should easily be made available to the stakeholders. The advantage

in buying a modular application is that the company can choose to selectthem on the basis of the function for which it is purchased. These are theessential element of ()* systems.

7i"e con!traint! in re!pect to the or0ani/ation! function

The ()* system should be purchased based on the long term needs ofthe organiation. In that sense the firm should visualie its prospects,position and requirements in the long term also. Therefore it has to bemade sure that ()* is not restricted to meeting the current needs. Thiswill also help in implementation of ()*.

Suppose if a company is engaged in one particular domain of banking italso needs to understand that it may have to cater to the entire bankingsector if the need arises. ence it must purchase ()* that can serverelated banking applications or if not be capable of modification for thesaid purpose in the future. This will also stand out to be true in the case oforganiations that aim at diversifying the business. 1 choice is to be made


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from ()* implementation models. This will also help in implementation of()*.

E"ploee! to e=pre!! their opinion on ERP

The core members in the decision making body 2for ()*3 should hear andheed to the views of all the employees in the company as long as they arevalid. This will make sure that everyone is given an opportunity of beingheard so that they donFt lament that they were not allowed to express theiropinions on ()*. This discussions will facilitate the decision making bodyto know how well ()* is received in the company and what are thesetbacks that are to be removed. This will also help in implementation of()*

There is another important objective in these meetings. They help to bring

out the various modifications and technological changes that the companyhas to undergo to become ()* friendly. Aap meeting and businessprocess requirements do help in bringing out them. !ut these processeswill witness the employees difficulties and requirements directly. Theimpact is also bound to be more when it is voiced out in person and indetail.

Cu!to"i/able and predefined odule!

1 large majority of ()* sellers sell customied application in addition topredefined applications to ()* customers. They assist the customers in

making all decisions right from implementation to use. !oth have their ownadvantages and disadvantages. In the case of customiable applicationsthe buyers will be instructed about the various options available formodifying. The users have to make a decision of choosing the appropriatecombinations on the basis of their business requirements.

Re!ortin0 to an E=ternal %od for ERP Service!

Some organiation finds it tedious to undertake the above mentionedsteps. Their workload would be too large to concentrate on this. In thatcase they can be outsourced to a third party who can take care by keeping

the needs of the organiations in mind. There are many competitiveadvantages in availing the services of such person. "irstly they have theprofessional expertise and the required experience. The third party willalso face the difficulties of the firm but there wont be any mindset orfavoritism as far as he is concerned .these are all inevitable when thecompany is doing the service. Their services will be suited even for bigger


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operations that have numerous complexity and ambiguity in operations.This will also help in implementation of ()*.

;erifin0 the credibilit of ;endor:! !ervice!

The company has to check if the 9endor has already installed a similarconfiguration elsewhere as it would not be advisable to be subjected tofirst time testing given the huge investment in the name of ()*. If possiblethe company can try to get information from the ()* customers of thevendors but it is not practically possible to elicit the necessary informationwhether they are competitors or not, as business ethics and professionalcode of conduct would not permit the same. They will also help inanalying ()* Systems.

)pplication Service Provider

1pplication service provider is an emerging concept in ()* packages.These are built in packages that have their own setups for hardware andbusiness process. The usual manner of choosing ()* vi 4eciding,buying and installing has even been given a go by in some occasions.This will also help in ()* integration

7he ed0e enjoed b S..E.:!

1S* was discussed as a profitable option. The actual fact is that it is aboon to small and medium enterprises 2S.-.(.FS3.They would not havebeen able to think about ()* but for 1S* and outsourcing. They wouldchoose these due to efficient services and affordable costs.

Choo!in0 an out!ource !ervice provider

These companies may also choose to select the systems on a rental basisso that they are not burdened with the tasks like administration, handlingnetwork as these are too big when compared with the sie of their firms.

1s per 1S* arrangement the infrastructure part will be taken care of bythe service provider. The company can access everything online, while thecustomers access to 1S* at an agreed Service charge for the stipulatedperiods.

In the case of business process outsourcing the organiation can avail theservices of a consultant for its business that will perform the requiredfunctions on behalf of the company. The company can also choose tooutsource inhouse operation to the outsourcer to get maximum benefits bemade from ()* implementation models.


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Choo!in0 ERP vendor! for )SP

/ompanies must exercise caution in choosing 1sp service provider. -any

()* sellers offer 1S* services in response to the rising market demand.Their expertise is unquestionable but the trouble lies in terms of costs asthe ()* vendor would price them at high rates. In addition the choices arenot plenty interms of choosing players. Therefore it is advised to refrainfrom vendors offering 1S* services and approach 1S* service providersalone. This will also help in implementation of ()*.

Re!ortin0 to an E=ternal %od for ERP Service!

Some organiation finds it tedious to undertake the above mentionedsteps. Their workload would be too large to concentrate on this. In thatcase they can be outsourced to a third party who can take care by keepingthe needs of the organiations in mind. There are many competitiveadvantages in availing the services of such person. "irstly they have theprofessional expertise and the required experience. The third party willalso face the difficulties of the firm but there wont be any mindset orfavoritism as far as he is concerned .these are all inevitable when thecompany is doing the service. Their services will be suited even for biggeroperations that have numerous complexity and ambiguity in operations.There are different software solutions available for both purposes.

;erifin0 the credibilit of ;endor:! !ervice!

The company has to check if the 9endor has already installed a similarconfiguration elsewhere as it would not be advisable to be subjected tofirst time testing given the huge investment in the name of ()*. If possiblethe company can try to get information from the ()* customers of thevendors but it is not practically possible to elicit the necessary informationwhether they are competitors or not, as business ethics and professionalcode of conduct would not permit the same.

7he Nuance! in choo!in0 ERP Soft-are

*re ()* implementation includes analysis, constructive criticismJhomeworkFs has a significant place in the whole process of ()*. ;ot ofresearch and background work needs to be completed prior to theimplementation of ()* or even before thinking about bringing (rp into theorganiation. The plans of the organiation must be clearly charted outand how it intends to benefit from (rp operations have to be looked from abroader context.


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I"portant Point! in the di!cu!!ion

This discussion should include important element namely financial issues.!esides it should also account for the potential threats, strengths andweakness. ow much profit will be incurred have to be discussed andsubstantiatedD +ther non monetary benefits should also find a place.These studies should involve the contribution of the entire group in theorganiation right from the person in the highest hierarchy to the one inthe lowest level. The contribution should be validated and sharpened bymeans of presentations which will help everybody to get insight of thedifferent perspectives, and views. 1ll of them will be helpful inimplementation of ()*.

7he co!t factor and co"pen!ation

()* will definitely yield the required monetary benefits to organiationswhether they have the practice of built in systems or individual practices. Ifwe are to calculate the costs involved in preserving and building them overa period of time it will be evident that the ()* costs incurred to supportand facilitate the said functions will be comparatively less.

This calculation will prove to be equally true even if we take the case ofindividual department for that matter. 1nother important point in this issueis that it has to align with the target goals of the organiation 2the purposefor which it is sought and justified3 as organiations generally tend to gofar ()* with a view to improve or increase the efficiency of a particularsection 6dept and the whole process in general. Similarly the costsincurred to facilitate that particular function must not be monetarilypinching on the organiation and even if they are the benefits and profitsfrom that particular department or the whole organiation preferablyshould exceed the exorbitant costs. (verything has to be calculated on thebasis of the chosen ()* software systems

Co""ittee to loo after ERP proce!!

1nalysis and criticism will go a long way in deciding the fate of the ()*product. They are alone not enough. The next process would be theservices of the team who can decide everything concrete with regards to()*. The required powers are to be delegated to them. They will do thescreening of the potential vendor based on the organiational needs thathave been classified and discussed earlier. This will be helpful inimplementation of ()*.


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$.2 ERP ,ap )nal!i!

8hat i! the Nece!!it for ERP ,ap )nal!i! and ho- i! it done9

8h ,ap )nal!i!9

Aap analysis is an important step in ()* implementation. ()* is meantto integrate the data of all the departments in a company under onecommon platform. This calls for a radical change in the system of thecompanyFs functioning.The organiation can either drop the idea of implementing ()* or chooseto go by it. Such a decision can be arrived only by comparing withparameters like the reaction of their customers. The organiation can goahead with ()* by modifying the software to suit their needs but asearlier discussed it leads to other complications and dilutes the working of

erp.If the company decides not to go about in searching for anotheralternative arrangement. +n the other hand if the company wants to go for()* it will stick on to ways and means for implementing ()*. In order tohelp the company arrive at a proper decision in such unwarycircumstances A1* analysis is advocated and followed. Aap analysisbasically identifies analyses and as well suggests a sequence of steps tobe followed after taking into account H7hat ought to be Hand Hwhat actuallyexistsH. It provides to overcome 6bridge the gap. 1bove all it is aimed atimproving the commercial viability. The process is aimed at facilitating()* function so that the benefit of ()* is received in full.

Step! in a ,ap )nal!i!

The primary step will be to make a note of the existing businesssystem and list out the flaws and positive aspects. This is anattempt to have an idea of what is currently happening given thescenario in question so as to help in ()* implementation.

(valuate and decide the additions that need to be made to thebusiness in view of ()* implementation. The aim is to make surethat there is not even a thin line of difference between ()* and theorganiations commercial activities. It will be oriented to ()*

function. )ating the existing level of performance to set a benchmark or

standards for the business as on date. This will help in finding outthe benefit of ()*.

aving an in8depth study of the regulations and statements in theorganiations and suggesting modifications. This also will decide()* implementation.


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/learly defining the roles of individuals in the organiation so thatthe priorities are met and the structure remains undisturbed. This isto make things clear for ()* function.

/hecking if the objective in discharging duties are met because it isthe ultimate solution to any issue. If they are not met the gapsshould be made known and corrected. +nly then the organiationcan achieve the benefit of ()*.

(nsuring that functions are executed properly and if need bepersonnel can be rewarded to boost up and encourageperformance.

Similarly comparisons are to be made for every other factor thatdraws relation in one way or other. These results are to becomplied for ()* gap analysis.

The gap analysis takes into account all the factors of study andgives the results. It either recommends the implementation of an()* system or rejects the idea in totality.

This whole process takes about %'8$>' days depending on thecomplexities and technicalities involved. Aap analysis requires the properunderstanding of the firm and the ()* product in question. The analysisshould fully focus on how the business process and software can bemutually beneficial to one another. A1* analysis becomes instrumental indeciding ()* implementation, so as !usiness *rocess )eengineering

$.3 actor! influencin0 ERP price

()* cost is an important issue that companies look forward while decidingon ()*. ()* calls for a voluminous investment. !y and large this step isnot a cakewalk for any company.It is not possible to give a comprehensive price structure for all companiesimplementing ()*.()* pricing varies even among companies based onrequirement, facilities, sie and nature of the business and so on. 1boveall it is dependent on that particular factor which the company banks on orin other words the root cause for the company to decide on ()*. ()*implementation cost is not the only cost to the company.

So"e of the -ell no-n factor! -hich influence the co!t of ERP!oft-are product are a! follo-!#

E=ecution of ERP

This term will include all the exercises from business process engineeringto gap analysis to actual restructuring and training. 1bove all this the


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process of modifying and transferring data and systems from the old formto new form is another costly affair. The manpower and time spent mayalso be taken into account to know the non8monetary costs precisely.

The company needs to calculate this though not for accounting purposesas it will help be estimate the )egular work that was not carried during theregular course of business 2due to ()* intervention 2some even call it asinterruptionDK3.1gain these costs are solely dependent on the companyFsworkings.

If the company engages the services of an ()* consultant then the costswill be quite different, if it goes ahead with the process with the help of In8house IT staff 2which is not encouraged during the initial stages3.Thesealone donFt constitute ()* implementation cost. 1 host of other charges

will be included in ()* implementing cost.

Con!ultation b ERP E=pert

These factors also influence ()* cost to a considerable extent. Theprofessional charges payable to the outsider also depends on the extentof the services availed by the company.

If the company is restricts his service merely to training andimplementation the fees will be different from seeking his expertise for the

entire process which includes staying with the company to rectify practicaldifficulties after implementation, conducting refresher programs and so on.This is important component of ()* implementation cost. owever this isnot the only issue in ()* implementing cost.

7rainin0

This is also a crucial determinant of ()* costs. There are two modes oftraining offered in companies. /ompanies hire trainers to update their ITstaff on the nitty gritty of ()*. They in turn train the user to getacclimatied to ()*Fs functioning. This method has lot of drawbacks but

still many companies go for it not only because of the comparative lowcosts but doing away with the need to train everyone in the company. Inspite of the drawbacks this method has claimed relative success in somecompanies.

The other methods is training the users and the IT staff as well .In thismethod the IT staff will be trained on technical parameters while the users


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will be trained on usage. !ut for the exorbitant costs this method is highlysuccessful. ()* implementing cost is very important. Similarly if thecompany wants to seek the trainers service only for particular facets if itbelieves that the pool of In8house It staff are competent to handle other

areas, then ()* costs will be different.

$.$ Return on inve!t"ent! for ERP

This article can form the basis for a research namely H()* IndustrypaperH. The intervention of ()* has resulted in lot of discussions amongIT professionals, employees, and market and so on.

So"e of the in!truction! that have to be follo-ed to en!ure ade5uateReturn on Inve!t"ent! are 0iven belo-#

8orin0 out the th! of ERP in the Initial !ta0e

The question of (rgFs )+I remains a pule to companies who areexperiencing difficulties even in implementing it. There is a simple andstraight answer to the question of )+I on ()*. /ompanies can definitelybe assured of )+I from ()* if they properly follow the procedures andimplement the right practices.

This is often well said than done. +ne common blunder committed by thecompany is following the age old methodologies and thereby the ()*process will not add any value to the company and business process. The

difficulty in implementation process makes them think it ids difficult toembrace ()* and the returns will not be guaranteed. This mindset is nottrue and hence companies have to work more as the process deepensand not vice versa, in order to achieve optimum benefits from ()*.+therwise the operations done by ()*)+I calculator will not be true.(ven using ()*)+I tools will serve no purpose.

Proper I"ple"entation and inance

There implementation process should take place in a smooth manner andin accordance with the set standards .There should be no compromise or

controversy in the funds allocated. +ne mistake which is normally done bycompanies is that they tend to cut down the expenditures on some areasin order to be monetarily benefited.

owever the fact is that it will affect the company in the long run unlessthe step is meant to change the decision like partial implementation2provided it is supported by some logical reasons. 7hile talking about the


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implementation process it is important to ensure that it confirms with thestandards and as per the instruction of the vendor6()* consultant.

Strict )dherence to Chan0e!

-any of ()*Fs welfare measures are visible to the naked eye. oweverthere are some elements that are unseen but still impact the organiationin a large manner. These elements make the company to assume that()* is not worth the money and hence they even go to the extent ofviolating6discarding it halfway and not following the changes that werearrived after a long suggestion and deliberate planning. They will defeatthe very objective of ()* )+I .There will be no use even in disgruntlingon ()*)+I tools.

$.& Challen0e! faced b ERP

+rganiations face lot of challenges right from choosing ()* vendor. Itwas really a hilarious task to convince them on regarding implementing()*. ()* failures that arose in an organiation were never analyed orstudied.

;ot of excuses were given on the failure of ()* like the organiation wasnot yet well equipped to accept ()*, there was deficiency in service onthe part of vendor and so on. 1ll this only led to skirmishes within theorganiation and outside. The services of an ()* consultant was not

suffice to overcome these drawbacks of (nterprise resource planningaction.

ull fled0ed and Partial ERP

+ne basic problem with companies is that they go for ()* at a stretch.This might be one potential reason in the case of backfiring. Therequirements of each organiations are entirely different .It is notadvisable to go for fullfledged ()* unless it is required by theorganiation. Since ()* requires large investment in terms of -oney andtime the resources spent will not be justifiable unless they are optimally

utilied. *artial ()* does not denote partial implementation of ()* but itindicates the implementation of ()* to perform the required function androle exclusively. 1gain sie is not the deciding factor. It totally depends onthe nature of business, scope of operations and similar details. ()* isdefinitely a flexible application however it is difficult to infuse this elementof partial and need based functions and it still remains a major challenge.The company can even avail the services of an ()* consultant to decideon (nterprise resource planning action


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Surplu! co""oditie! in production

7hen ()* is used in the manufacturing one common problem that strikesany user is the question of how to properly manage surplus commoditiesDInfact ()* can regulate and monitor all resources and production factors.The whole organiation should work on this aspect failing which ()* willnot yield the necessary results. This poses to be another challenge to()* since each member6department have their own interest and plan ofaction while working with ()* .This common objective of managing thesurplus will not work out without proper coordination no matter how bestthe product is supplied by the ()* vendor.

Proble" of !udden tran!for"ation

#nlike -)* which manages the surplus goods slowly and steadily ()*operates very swiftly on them. This transformation is unlikely to bereceived by the organiation positively .(ven persons in the managerialcadre will not be receptive. The reason is that it demands tremendouswork load at the beginning though the fact remains that it will be muchlesser than -)* after further progress .1t this stage the challenge lies inbringing about an attitudinal change in the entire organiation to matchwith ()*Fs Speed. 1n ()* consultant will help to guide the companyproperly in these areas along with enterprise resource planning action.

E5uippin0 a! a re!ult of the tran!for"ation

It is not enough if one brings about an attitudinal change. certain changesin the organiation structure is also desired .The greatest challenge nowlies in restructuring the midway of ()* operations without affecting (rgFsfunctioning.

eetin0 future need!

+rganiations have started to prefer an ()* system that meets the futureneeds. This can be a challenge to ()* as well because the visualiationand expectations in companies may not always turn to be true. Thequotation made to the ()* vendor has to be prepared only after keepingall these details in mind.

Step! to be taen into account for the perfor"ance ERP

(nterprise )esource planning ()* definition is not a technical aspect.(nterprise resource planning is a huge investment on the part of


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company. Therefore it is necessary to ensure the accountability of the()* vendor.

1n understanding of ()* and language is must to follow ()* best

practices. The ()* vendor cannot be blamed if the company does notfollow the procedures correctly. +n the contrary when his services are notup to the industry standards he has to be held responsible. !ut how tocompute the services is another big question.

So"e of the !tep! that can be taen to co"pute are a! underneath#

Preparation!

The company should have a scale for evaluation right from the beginningstage. This will help them to progress further in due course of time .This is

the primary step in the process .It includes everything is checking if thevendor has given the necessary supporting services to the company in theprocess of implementation installation training and relevant areas. This isvery important because it forms the foundation for the ()* process in thecompany. +ne needs to be clear about ()* best practices for this.

Evaluatin0 the -or

This step concentrates on the core function. The company mustperiodically make a note of the work done. 1ny discrepancies will bebrought to the vendorFs notice immediately. The vendor should extend his

full fledged cooperation in making sure that the work gets done aspromised. Then only it is possible to scale ()* best practices.

Incase there are some inherent errors or technical flaws in the companythe ()* vendor can advise or suggest the company on how things are tobe done. This step by and large helps the company to find out if thevendor stands up to the promise in terms of delivery. #nderstanding of()* and language is a must.

Calculatin0 ROI

)+I helps to directly account the performance of ()* software programs.In simple terms )+I calculates the returns from ()* software programs.7hen the returns are high or at least meets the expected and industrystandards the performance of ()* software can be rated as HpromisingH.The )+I on ()* will not be merely achieved by ()* implementation. Thereturns will be achieved only if the procedures are followed properly. !ut if


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the software fails to deliver the required results even after following thecorrect practices it shows lacuna on the part of ()* software. This willaffect the rate of )+I as well.

ollo-in0 contract! ter"!

The performance of ()* software can be gauged on the basis of itsworking in relation to the terms of contract. ()* software that accords tocontractual terms in relation to working definitely indicates better performance than vice versa.

Cu!to"i/in0 ERP Soft-are

/ustomiing is an integral part of ()* solutions. This is a crucial decision

which needs to be taken by the organiation as it is detrimental in ()*FSsuccess. The rate of customiation is directly proportional to ()*success.

/ustomiation tends to pose a challenge to time and the funds allocated.The challenge of a successful management lies in balancing them andmaking both ends meet. It is a difficult task but the success speaks for theprocess.

%urnin0 I!!ue!

The major issues that require attention in the process of customiing ()*are strong knowledge about the current system and the likelihood ofinnovations in ()*. These two issues have their own say in the process of()* customiation. The process of customiation will not take placeproperly unless or otherwise there is a strong working knowledge about()* systems. (ven if it does the rate of success wonFt be to that of thedesired or atleast required extent. The chances of innovation in ()* willhave a say on the customiation of ()* because whatever modificationsare done now would not have any relevance if they are already covered inthe new systems. If the management addresses these two issues properlythen the chances of ()*Fs customiation are pretty high which also

speaks for ()*FS success. 1 proper ()* solution can be provided by the)ight ()* company.

eature! of ERP innovation!

The innovations of new ()* applications help users to include all thespecific details in ()* system itself. This means they donFt have to inputthese details into the ()* systems every time they login. This also implies


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that the operators need not recompile ()* softwares as and when thereis a change in the attributes or methodology of data fed. /ustomiationhas also helped the users to act independently rather than depending onthe vendors whenever a modification is required. The innovations in ew

()* systems have made it so userfriendly that the customers go to theextent of modifying the systems to perform functions exclusive to theorganiation. ()* solutions are now handier to customie than ever. ()*company offers numerous and flexible ()* solution.

Sound no-led0e about ERP S!te"

The features be it old or new or modern or traditional will not be of any useunless the users are aware of the ()* Systems features and modalities.This knowledge has to be imparted to the end users apart from ITpersonnel. They should have a clear knowledge about the entire system in

finger tips. If questioned or demanded they must be capable of bringingthat particular function into effect. The services of an expert ()*consultant will come in handy for an organiation to supply this informationto the user. The consultant will make a decision on the basis of theorganiational needs and system configuration. e will be a part of theorganiation for quiet some time. This will also help him in know theorganiation and people better. e will therefore be able to work easily./ustomiation is an important part in implementation of ()*.()*/ompany can decide the proper ()* solution for the organiation.

%PR!*) is one of the fundamental steps undertaken prior to ()*implementation. !usiness process reengineering analyses and suggeststhe structural changes. This is regarded to be very important because ithelps in knowing how the organiation should be customied inorder tobecome ()*friendly.

Chan0e and %PR

!*) is inevitable not only for ()* but as far as any business process isconcerned. !*) becomes the first step in the process of ()*

implementation. !usiness process reengineering is taken to conductfeasibility study and other restructuring exercises. othing can be done toprevent change. The best way to manage change is to adopt it.

Time and again it has been proved that imposing change of anymagnitude all on a sudden is not the proper way. There needs to be aproper method to bring about it. !usiness process reengineering is one


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scientific study that helps organiations largely to analyse the viability ofnot only ()* but any other dynamic change. !*) ()* is interrelated.

$.' %PR and ERP

!*) does not necessarily stop with the process of identifying thepossibility. It also suggests a series of steps that needs to be executed, for()* to find a place in the organiation. !*) is the first step that comesprior to ()* implementation.

The reason is simple. -any parameters are taken while preparing ()*.This includes the assumption of *redefined functions. ence ()*software will be preconceived to perform those set of functions. +n theother hand companies expect ()* to function in such a way that itcoincides with the regular business process. !*) ()* can be the biggest

challenge for the vendor and the company as such. !*) ()* forms animportant part of ()* study.

Solvin0 %PR ERP Cla!h

There are two alternatives that will help the companies to combat thismenace. The company can either restructure the business process itselfor customie the ()* system so that it suits the business process.4eciding this is paramount to ()* implementation. !*)()* has lot ofconflicts. The pros and cons of each of them are explained in the followingparagraphs5

I"ple"entin0 ERP Soft-are to Suit %u!ine!! Need!

7hen the company demands a particular ()*software they have to makecompromises on the budget because reworking modules and supplying an()* Software would definitely be a costly affair. This is because of thecomplications involved in doing the same.

1part from finance this also calls for persons with greater workingknowledge to design the systems. This means the process is not going tobe unambiguous.he process will also require frequent updations. This is

going to be difficult taking into account the several changes that hasalready been inflicted on the system to make it business friendly.

Re!tructurin0 the bu!ine!! proce!! to be ERP riendl#

This method also requires lots of monetary outlay because of the majorchange in business process.


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The customers will not be receptive to changes in business process. It ispossible to train the employees but whereas in the case of customers theycannot be expected to stay in tune in tune with the whims and fancies of

the organiation.

It is possible to train the employees. The likelihood of them to adapting tothe change at the immediate outset is very much limited. This will cast aspell on the revenue of the business and unless ()* does not make itgood in the later days the voluminous investment cannot be justified.


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Chapter &

)N)YSIS )N+ IN7ERPRE7)7ION O 7*E +)7)


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$. )N)YSIS )N+ IN7ERPRE7)7ION O 7*E +)7)

S7)7IS7IC) 7ES7 CON+6C7E+

$.1 7e!t for rando"ne!!

*4 #4ata is random. ie ,The functions performed by the existing system of

the concerned company are efficient.

*1# 4ata is not random ie, The functions performed by the existing

system of the concerned company are inefficient.

-1)C 4IST)I!#TI+ 14 (91;#91TI+

Take each question, each option in the four alternatives carries marks

according to the question given.

Re!ult $8888888888888888888>88888888888888888888B888888888888888888888888888@

@8888888888888888888B88888888888888888888>888888888888888888888888888$

4epending on the answers given by each respondents we calculate the

marks for each questionnaire and conducting a test for randomness.

&.1 S6R;EY 7)%E

The survey done on the B' respondents are shown below. -arks given

by each of them for each questions are shown in the table "igure $.


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)espondent $ > B L & ? $' $$ $> $@ $L

$ B > $ > B > > B > > > B

> > > > > > $ > > > > > $

B > B > > $ $ > B > $ $ >

@ @ > > @ B > @ > @ B B $

L > B B > > > > B > > B B

& B $ $ B > > B $ B > > >

$ @ > $ $ > $ @ $ $ $ >

? $ > > $ B $ $ > $ B > $

% > B B > @ @ > B > @ > >

$' B > > B B $ B > B B $ $$$ @ $ $ @ > $ @ $ @ > > >

$> > B $ > > > > B > > > B

$B B > $ B > > B > B > $ >

$@ @ > > @ $ > @ > @ $ > >

$L $ B $ $ > B $ B $ > B $

$& > > > > B > > > > B > $

$ > @ B > > $ > @ > > $ >

$? B > @ B > > B > B > > >

$% $ B $ $ $ > $ B $ $ B B

>' @ > > @ $ > @ > @ $ > >

>$ @ > B @ B $ @ > @ B $ $

>> $ B B $ @ $ $ B $ @ $ >

>B > $ > > $ > > $ > $ > >

>@ B $ > B > > B $ B > > $

>L > > $ > > $ > > > > > >

>& > B B > $ $ > B > $ $ B

> B $ B B B > B $ B B > >

>? $ > > $ > B $ > $ > B $

>% B B > B > $ B B B > > >

B' > $ > > > > > $ > > > >

45

:ues :ues :ues :ues :ues :ues :ues :ues :ues :ues :ues :u


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#Mno of runs

(2u3M2nN>36>

92u3MOn6@P22n8>362n8$33Q

RMO2u8(2u336Sq 92u3Q

The values are calculated as follows

The middle most value is taken as >&.so for calculating #,we have to

consider the bench mark as >& .Those values which comes under >& aregiven sign and which comes above >& are given N sign .Since there are

B' respondents we have to take B' numbers.

$ > B @ L & ? % $' $$ $> $B $@ $L $& $

N N P P


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$? $% >' >$ >> >B >@ >L >& >? >% B'

N N

So #ML

(2u3M 2nN>36>

nM>? since two values are >& in the case of the respondents we cannot

consider those two.

(2u3M2>?N>36>MB'6>M$L

92u3MOn6@P22n8>362n8$33Q

92u3MO2>?6@3P22>?8>362>?8$33QM&.@

RMO2u8(2u336Sq 92u3Q

RMO2L8$L36Sq &.@QM28$'36>.&M8B.?L

-ode RMB.?L


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"or level of significance L0 , the table value is $.%&

Since mode R value is more than $.%& data is not random. ie The

functions performed by the existing system of the concerned company are

inefficient.

Since the hypothesis has to be rejected there is a need for an

enhanced system which can perform the operations more effectively. The

following are the recommendations.

The system should be more user friendly

The taken for each operation by the existing system is more and so

it should be reduced

There is a need for a scrape management and a search engine in

the system.

It is necessary to produce reports and print outs, so there should

be a system for that.

ence my next step in research involves ,coming out with an efficient

variant that would fulfill the current requirements of the organiation.

&.2 +ESI,N O 7*E EN*)NCE+ SYS7E

IN7RO+6C7ION

The proposed ()* is supposed to solve the entire drawback with the

(xisting System. )ight from the problems faced by the company for

purchasing the material from vendors to the sale of the finished products.

!y implementing this the entire organiation is considered as a system


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and all the departments are its subsystems. The information about all the

aspects of the organiation is stored centrally and is available to all

departments. This transparency and information access ensures that the

departments no longer work in isolation pursuing their own independent

goals. (ach subsystem knows what the others are doing, why they are

doing it and what should be done to move the company towards the

common goal.

"or the development of this system, one has to break the

process into different phases like system analysis, database design,

system implement, system testing and validation etc.

&.3 SYS7E )N)YSIS

IN7RO+6C7ION

1 system can be defined as the interrelated procedures that are joined

together to perform an activity or to accomplish a specific objective. It

is in effect all the ingredients that make up the whole. 1 procedure is a

precise series of step8by8step instruction that explain.

7hat is to be doneD

7ho will be doing itD

7hen it will be doneD

ow it will be doneD

The system analysis is the process of analying a system with the

potential goal of improving or modifying it. In the system analysis we have

to study what are problems incurred during transactions, what are the

difficulties of the existing system, what is to be done to improve it, and


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how it will be done. In other words system analysis involves study and

design or a system in order to modify it, hopefully for the better system.

The system analysis approach, all the major influences and

constraints are identified and evaluated in terms of their impact on various

decisions points in the system. 1 decision point in a system at which some

people are automobile mechanism must react to input data and make a

decision.

&.$ NEE+ OR 7*E PROPOSE+ SYS7E

This project work can be taken as an attempt to treat the

organiation as a single entity and caters to the information needs of the

whole organiation. The project work reduces the manual planning, time

scheduling and increases the efficiency.

The need for the project work aroused due to the expansion plans

of the company in meeting the large contracts of the industry. The

existing being a manual one, have lot of limitations and disadvantages.

ence the following objectives are laid for the proposed system, which

tends to avoid the disadvantages and improve effectiveness efficiency.

)ccurac

In order to make the data entry more easily as well as accurate,

the data is to be validated in the early stages such as entering the

identification number of the vendor and material. This maintains that the

data entry operator need not follow complicated procedures to fill in the

data.


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Report ,eneration

*reparation of reports is very fast and ready when they are needed.

-oreover the report generation depends on various criteria.

Secondar Stora0e

The data entry has to be made only once, which can be copied to

secondary storage devices such as floppy diskettes. The data once

entered can update the master database. This will eliminate the tedious

job of reentering the data and errors and emissions will be eliminated.

e!! Stora0e

The storage area required for the data would be very less compared,

to that in the manual system and the loss of data is reduced in the

proposed system.

an Po-er S!te"

The software aims at reducing the manpower since the high level

management maintains all the reports and comparative statements. The

transfer of request also does not need any manual communication

process since every communication process is done through web

application.


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The main reasons for carrying out the proposed system is

)educe production delays arising out of shortage of supply of

materials.

To avoid unnecessary lying of the capital investment in the stock

and to have a scrape management facility.

To include a search engine in the system.

To generate reports as and when needed for the management in

the decision making process.

It increases the efficiency of production handling and end8user

satisfaction. It also makes the system more user friendly, thus saving the

time.These are to be found for designing a complete computeried system

for the management.

E>IS7IN, SYS7E

In the existing system they work on "+U*)+,which is an

outdated one. It takes a long time for them to processes each request .If

they want to retrieve certain information they are finding it very difficult.

-ultiple user facility is also not there in the system. They even find it very

difficult to produce the required reports for the processes of decision

making. The transactions regarding the requirement and the purchase of

the material are recorded manually which resulted in lot of time lag,mishaps of the inventory and inappropriate records. 7henever materials

are needed the company bought from the vendors with out going for

quotation. This resulted in delays in production. In case of large contracts

the company invested a lot of capital in inventory alone.


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The existing system is maintaining all the operations manually. This

is time consuming causing a lot of mishaps.

+R)8%)C?S O E>IS7IN, SYS7E

The existing system has many drawbacks like maintaining record

for all inventory and vendor details as well as some manpower is required

for maintaining information. 1lso the final reports, which are going to be

submitted, have to be secure and also generation of every report is a

manual work and it requires a lot of manpower.

The following are the major drawbacks of the existing system.

The data entry at various stages is a time consuming and tedious

sometimes.

4elay in preparing the reports and comparison studies.

o scrape management facility available in the current system,

which is a must in this case.

o proper supplier and customer information, which is a must to get

business on right time.

(ven though some modules are automated, most of the existing

system carries out all the transactional activities manually, which may

result in lot of error onerous data in the records.

&.& PROPOSE+ SYS7E

The proposed ()* is supposed to solve the entire drawback with

the (xisting System. )ight from the problems faced by the company for


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54

purchasing the material from vendors to the sale of the finished products.

!y implementing this the entire organiation is considered as a system

and all the departments are its subsystems. The information about all the

aspects of the organiation is stored centrally and is available to all

departments. This transparency and information access ensures that the

departments no longer work in isolation pursuing their own independent

goals. (ach subsystem knows what the others are doing, why they are

doing it and what should be done to move the company towards the

common goal.

The following modules are needed for the ()*

)egistration

;ogin

/ompany 4etails.

/ustomer 4etails

Supplier 4etails

Item

*roduct

!ill +f -aterial

*urchase 1nd *lanning

Supplier *urchase +rder2*urchase +rder +ut3

Security

Aoods )eceipt ote2A)3

Aoods 1cceptance ote2A13

)ejection )eturn ote2))3

4elivery /hallan24/3

(nquiry 6:uotation 4etails.

/ustomer *urchase +rder 2*urchase +rder In3

+rder acceptance

-aterial request note


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55

-aterial issue note

)+;)N7),ES O PROPOSE+ SYS7E

In the package of ()* every attempt has been made to satisfy

the requirements of the organiation. 7ith the necessary study of the

requirements of system, the software has been developed in such a way

that it provides for user8friendliness as well as an ease of use. The major

advancements, which the systems offer are.

"ast 1ccessing of data.

(asy /ommunication *rocess.

)educed -an *ower.

4etails regarding 9endorEs detail informationEs are

maintained.

The reports are useful in decision making for the

management.

It is easy to modify any record and to change any

particular data.

The system makes the transaction fast and accurate.

1ll the modules are integrated.

)estricted 1ccess to 1pplication by role < privileges.

4ata *rotection by !ackup and )estore utilities.

#ser defined structure for Transaction umbers. 1pplication level Security with user8id and password.


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&.' E)SI%II7Y S76+Y

1fter the analysis of the requirement from the proposed system and

outlining broad specification of the proposed system a feasibility study of

the projected system is conducted. Since the hardware and software cost

of developing and implementing a major information system can mount to

a small fortune, preliminary study for the feasibility of the project is

extremely important.

The feasibility study includes the investigation of the information

needs of the end user and objectives, constraints, basic resource

requirement and cost and benefits. !ased on this the feasibility of the

proposed system can be evaluated in terms of four major categories.

Or0ani/ational ea!ibilit

This analysis aims at determining whether the proposed system will

support the organiationEs strategic plans.

Econo"ic ea!ibilit

The computeriation of the system will certainly result in economic

gains for the organiation as compared to the cost incurred in the

computeriation system, no extra expertise need to be hired. Thus the

cost incurred in the development and implementation of the proposed

system would be returned within a short period of time.

7echnical ea!ibilit

The computeried system has minimum hardware requirements.

The system is to be in a single user 7indowEs environment and can easily

operate on a high end */ with minimum of peripherals that include a


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57

mouse and printer beside the other primary I6+ devices. These hardware

and software already exists with the organiation.

Operational ea!ibilit

The management of the system intends to keep in step with the

advantages of information technologies and is aware of the advantages of

the new computeried system and is willing to change over to the new

system.

"rom the data collected in the feasibility analysis it was concludedthat the development of the proposed system would be very advisable and

implementation of the new computeried system would be in the best

interest of the organiation.

&.( RE@6IREEN7 SPECIIC)7ION

)equirement specification is a software engineering tasks that

bridges the gap between level software allocation and software design.

)equirement analysis enables the software engineer to specify software

function and performance and establish design constraints that the

software must meet.

)equirement analysis allows the software engineer to refine the

software allocation and build models of the process, data and behavioral

domains that will be treated by the software. )equirement analysis

provides the software engineer with a representation of information and

function that can be translated to data, architectural and procedural

designs. "inally, the requirement analysis provides the developer and the

customer with the means to access the quality once the software is bui


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*)R+8)RE SPECIIC)7ION

*rocessor 5 Intel *entium I9 $. AR

-other !oard 5 ?@Lglly Intel

)1- 5 >L& -!

4isk 4rive 5 $.@@ -!

/48)+- 4rive 5 L>x /reative 4rive

ard 4isk 5 @' A!

-onitor 5 $LV ;A

Ceyboard 5 Samsung $'@ keys

-ouse 5 -ercury

*rinter 5 /annon Inkjet

SO78)RE SPECIIC)7ION

+perating System 5 7indow W>''' Server

"ront (nd 5 =>((

!ack (nd 5 -S8S:; Server

4ocumentation 5 -S 7ordE >'''


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Introduction to


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dynamically loaded to all the various types of platforms connected to the

internet. =avaEs solution to there problems is both elegant and efficient


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(ach vector tries to optimie storage management by maintaining a

capacity and a capacityIncrement. The capacity is always at least as large

as the vector sieJ it is usually larger because as components are added

to the vector, the vectorFs storage increases in chunks the sie of

capacityIncrement. 1n application can increase the capacity of a vector

before inserting a large number of componentsJ this reduces the amount

of incremental reallocation.

inedi!t

;inked list implementation of the ;ist interface. It implements all optional

list operations, and permits all elements 2including null3. In addition to

implementing the ;ist interface, the ;inked;ist class provides uniformly

named methods to get, remove and insert an element at the beginning

and end of the list. These operations allow linked lists to be used as a

stack, queue, or double8ended queue 2deque3.

1ll of the stack6queue6deque operations could be easily recast in terms of

the standard list operations. TheyFre included here primarily for convenience, though they may run slightly faster than the equivalent ;ist

operations.

Strin07oeni/er

The StringTokenier class allows an application to break a string into

tokens. The tokeniation method is much simpler than the one used by the

StreamTokenier class. The StringTokenier methods do not distinguish

among identifiers, numbers, and quoted strings, nor do they recognie and

skip comments.


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The set of delimiters 2the characters that separate tokens3 may be

specified either at creation time or on a per8token basis. /onstructor used

is StringTokenier2string3J

ile Output Strea"

1 file output stream is an output stream for writing data to a "ile or to a

"ile4escriptor. 7hat files are available or may be created depends on the

host environment. /onstructor used is "ile+utputStream2filename3J

ile Input Strea"

1 "ileInputStream obtains input bytes from a file in a file system. 7hat

files are available depends on the host environment. /onstructor used is

"ileInputStream2filename3

&.A SYS7E +ESI,N

+e!i0n 7echni5ue!

4esigning the systems involves for different aspects

Input 4esign

+utput 4esign

Screen 4esign

"ile 4esign

4atabase 4esign

1rchitecture design


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1n important processing system must be functional in design, it

must supply information quickly, eliminate duplication of effort and takes

and must make effective user of people, technology and procedures.

The logical design of an information system shows the major

features and also how they are related to one another. The reports and

the outputs of the analyst are like engineers design components. In

designing an output file for the system, for example the system

specification includes reports and output screens, definitions describing

menu and the various options available in the system.

INP67 +ESI,N

The input design is the link between the information system and the

user. It steps are necessary to put transaction data into a usable form for

processing data entry. The activity of putting data into the computer for

processing can be archived by inspect

Documents

IT Project MBA