financial prospects on implementation of erp

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INSTITUTE OF BUSINESS AND

TECHNOLOGY

Financial Prospects on Implementation of ERP

Final Project/Thesis

Course Code : MKT-606

MBA (Banking and Finance)

FACULTY OF

MANAGEMENT AND SOCIAL SCIENCES

SPRING - 2011


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CONTENTS

ACKNOWLEDGEMENT....................................................................5

1 INTRODUCTION ..............................................................................8

1.1 Introduction ....................................................................................................8

1.2 Purpose of Study ........................................................................................... 9

1.3 Research Objectives .....................................................................................9

1.4 Research Methodology .................................................................................9

2 LITERATURE REVIEW .................................................................11

2.1 Literature Review ........................................................................................ 11

3 ENTERPRISE RESOURCE PLAINING .........................................13

3.1 Definition ..................................................................................................... 13

3.2 ERP Benefits and Advantages ....................................................................14

3.3 The Open Source Definition ........................................................................16

Introduction: Open source doesn't just mean access to the source code. Thedistribution terms of open-source software must comply with the following

criteria:............................................................................................................... 17

Free Redistribution: The license shall not restrict any party from selling or

giving away the software as a component of an aggregate software distribution

containing programs from several different sources. The license shall not

require a royalty or other fee for such sale....................................................... 17

Source Code: The program must include source code, and must allow

distribution in source code as well as compiled form. Where some form of a

product is not distributed with source code, there must be a well-publicized

means of obtaining the source code for no more than a reasonable

reproduction cost preferably, downloading via the Internet without charge. The

source code must be the preferred form in which a programmer would modify

Institute of Business and Technology Page 2


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the program. Deliberately obfuscated source code is not allowed. Intermediate

forms such as the output of a preprocessor or translator are not allowed.......17

Derived Works: The license must allow modifications and derived works, and

must allow them to be distributed under the same terms as the license of the

original software................................................................................................ 17

Integrity of the Author's Source Code: The license may restrict source-code

from being distributed in modified form only if the license allows the distribution

of "patch files" with the source code for the purpose of modifying the program

at build time. The license must explicitly permit distribution of software built

from modified source code. The license may require derived works to carry a

different name or version number from the original software........................... 17

No Discrimination Against Persons or Groups: The license must not

discriminate against any person or group of persons.......................................18

No Discrimination Against Fields of Endeavor: The license must not restrict

anyone from making use of the program in a specific field of endeavor. For

example, it may not restrict the program from being used in a business, or from

being used for genetic research........................................................................ 18

Distribution of License: The rights attached to the program must apply to all to

whom the program is redistributed without the need for execution of an

additional license by those parties.................................................................... 18

License Must Not Be Specific to a Product: The rights attached to the program

must not depend on the program's being part of a particular software

distribution. If the program is extracted from that distribution and used or

distributed within the terms of the program's license, all parties to whom the

program is redistributed should have the same rights as those that are granted

in conjunction with the original software distribution......................................... 18

License Must Not Restrict Other Software: The license must not place

restrictions on other software that is distributed along with the licensed

software. For example, the license must not insist that all other programs

distributed on the same medium must be open-source software.....................18



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License Must Be Technology-Neutral: No provision of the license may be

predicated on any individual technology or style of interface........................... 18

3.4 Choosing An Erp System: ..........................................................................18

3.5 Implementation Strategy ............................................................................. 21

4 MODULES OF ERP .......................................................................29

4.1 General Ledger ........................................................................................... 29

4.2 How ERP Improves General Ledger Capacity:.......................................... 30

4.3 Benefits for Control: ................................................................................... 31

4.4 Financial Processing:.................................................................................. 32

4.5 Application Features ................................................................................... 32

4.6 Cost/Benefit Analysis .................................................................................. 334.7 What Can ERP Do for the Supply Chain? .................................................. 38

4.8 Chain ERP management supply .................................................................40

4.9 Four Key Benefits of Supply Chain Management Software .......................45

4.10 ERP Purchasing Module:.......................................................................... 47

4.11 Features of purchasing module:............................................................... 47

4.12 Major benefits ............................................................................................48

4.13 Cost and Benefits Analysis:...................................................................... 48

5 CONCLUSION AND RECOMMENDATIONS ................................55

5.1 Conclusion ...................................................................................................55

5.2 Recommendations ...................................................................................... 56



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ACKNOWLEDGEMENT

First of all I would thank Almighty ALLAH who has guided me the way for a bright

future. I would like to acknowledgement the help provided by my teacher to make

this project a success.

My teacher Dr. Noor Ahmed Memon provided guidance and learning at every

step of the project which helped me, a lot in the questioning, data collection and

preparation of this report. He always gave full energy and showed willingness in

my project.

I am also thankful to my parents who accommodated me during those long hours

of work in writing Final Project Report and all the friends and colleagues who

equally encouraged me.I would also like to appreciate the co-operation I got from my classmates at the

institute, which boosted my morale and encouraged me to strive for better

results.

Aamir Shafique Muhammad Amir Khan

(BEM-25066) (BEM-25060)



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INSTITUTE OF BUSINESS AND

TECHNOLOGY

ABSTRACT SUBMITTED BY: Aamir Shafique

(BEM-25066)

Muhammad Amir Khan

(BEM-25060)

DISCIPLINE: MBA(Executive)

TITLE OF PROJECT REPORT: Financial Prospects on Implementation

of ERP

MONTH OF SUBMISSION: April, 2011

NAME OF PROJECT SUPERVISOR: Dr. Noor Ahmed Memon

Abstract

Debate exists regarding the contribution of information technology to firm

performance reflecting predictions of a positive, negative, or nonexistent

relationship. Prior research has examined technology and firm performance in

the aggregate, however, this study focuses on a specific technology Enterprise

Resource Planning (ERP) and its impact on firm performance. Economic and

industrial organization theories provide the basis for the examination of how ERP

systems affect firm coordination and transaction costs. ERP systems are

expected to: (1) reduce costs by improving efficiencies through computerization;

and (2) enhance decision-making by providing accurate and timely enterprise-

wide information. These effects should be associated with improved firm



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performance. This research finds, after accounting for within-firm variances, no

significant improvement associated with residual income or the ratio of selling,

general, and administrative expenses in each of the 3 years following the

implementation of the ERP system. However, a significant improvement in firm

performance resulting from a decrease in the ration of cost of goods sold to

revenues was found 3 years after the ERP system implementation (but not in the

first or second year after implementation). Further, there was a significant

reduction in the ratio of employees to revenues for each of the 3 years examined

following the ERP implementation.



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1 INTRODUCTION

1.1 Introduction

ERP stands for Enterprise Resource Planning. ERP is a way to integrate

the data and processes of an organization into one single system. Usually ERP

systems will have many components including hardware and software, in order to

achieve integration, most ERP systems use a unified database to store data for

various functions found throughout the organization. Enterprise resource

planning (ERP) is a company-wide computer software system used to manage

and coordinate all the resources, information, and functions of a business from

shared data stores. An ERP system has a service-oriented architecture with

modular hardware and software units or "services" that communicate on a local

area network. The modular design allows a business to add or reconfigure

modules (perhaps from different vendors) while preserving data integrity in one

shared database that may be centralized or distributed. The term ERP originally

referred to how a large organization planned to use organizational wide

resources. In the past, ERP systems were used in larger more industrial types of

companies. However, the use of ERP has changed and is extremely

comprehensive, today the term can refer to any type of company, no matter whatindustry it falls in. In fact, ERP systems are used in almost any type of

organization - large or small. In order for a software system to be considered

ERP, it must provide an organization with functionality for two or more systems.

While some ERP packages exist that only cover two functions for an organization

(QuickBooks: Payroll & Accounting), most ERP systems cover several functions.

Today's ERP systems can cover a wide range of functions and integrate them

into one unified database. For instance, functions such as Human Resources,

Supply Chain Management, Customer Relations Management, Financials,

Manufacturing functions and Warehouse Management functions were all once

stand alone software applications, usually housed with their own database and

network, today, they can all fit under one umbrella - the ERP system.



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1.2 Purpose of Study

The purpose of this study is to examine how two organizational members,

i.e. business and information technology (IT) managers evaluate the success

measures of acquired enterprise resource planning (ERP) systems. The study isto highlight the importance of ERP, especially for growth, production, financial

evaluation and business stability. Furthermore it also talks about the importance

of implementation in non-government organisations (NGOs), educational and

medical centres to develop the affective and authenticated centralize system

environment culture in the corporate sectors, medical and financial institution of

the country.

1.3 Research Objectives

The objectives of the research were as follows:

To gather the current trends in the ERP implementation

To gather statistically valid information of the extent of FOSS

implementation

To develop comparison of the national and global trend in corporate

sectors, manufacturers, large and small Enterprises.

To gather a comprehensive information regarding ERP Implementation

through questionnaire as survey tool to focus on loopholes and critical

errors.

To develop the research methodology

1.4 Research Methodology

Both quantitative and qualitative model will be included to for this research

model. The literature review as conducted by the researcher for the globaladoption and the culture of ERP modules and technologies which includes

current trends and future prospects of ERP implementation. This review included

contribution of the ERP in the global economy, role of government, educational

institutes and non-government organizations in the growth and promotion of ERP

implementation. The researcher then established connection to the online user-



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groups and forums to gather information related to the different modules of ERP.

He used online research websites to gather information about comparison of

market share of ERP Pre-designed module vs. Customised software.

While gathering the information about ERP in Pakistani Software industry,

a survey tool was used to gather solicit feedback from IT professionals working in

various Software Development Centres of Pakistan. Researcher found lack of

responsiveness while gathering the related data. It was noted that main reason

for lack of responsiveness or non-cooperation is the unavailability of the

professional trainers, technical staff and very expensive cost of training as well

as lack of exact and professional guideline.



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2 LITERATURE REVIEW

2.1 Literature Review

In the "digital nervous system" 1a book center, Bill Gates (1999) stressed

the 90's the theme of business Reengineering and de two thousand years after

the key is speed, this statement reveals the important nature of business India is

changing. Jeff Brown (1998) in the "Enterprise.com: Market Leadership in the

Information Age "a book center, but also pointed out that" information "as the key

to competitive corporate world, who can effectively palm Grip information,

delivery services, controlling the speed, who will be able to win new business

arena above, which is a cut depends on Ability of the business in-house planningand establishment of a complete digital workflow. History of the development in

the information industry, above, this is the first time No longer dominated by

hardware innovations to lead the entire industry. Many famous domestic and

overseas software suppliers, such as Oracle, SAP, Baan, PeolpeSoft,

JDEdwards, and ASDC (DSC), etc. company, a response to this trend and

gradually develop a full-featured and complex enterprise resource integration

system, The Enterprise Resource Integration System, whether in performance or

build method above, all the others are becoming more and more mature, but in

systems integration Process reengineering with the above, but it also makes the

most of the enterprises in the import process encountered many obstacles and

India. Therefore, enterprises put L system, the effectiveness of information

technology, strengthen the competitiveness of enterprises, we must effectively

integrate business processes, making Application of information technology to

achieve optimization.

Today's century is the era of a speeding of information we need is like theEnterprise Resource Integration System (Corporate Resource Integration

System, CRIS) an effective tool for tackling key problems, CRIS can be

integrated functional levels of the elements, resulting in cross-functional

information flow. In the modern business environment, the Indian, Between

1 http://www.abouterp.com/erp-oracle/ERP-literature-review-chapter.html



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enterprises is becoming increasingly fierce competitive environment, in order to

be able to quickly respond to customer needs, and can be compared with the

other competitors have a competitive advantage, allowing companies are

increasingly dependent on information technology; also to competitors in a

market in order to survive, and due to stress Intense competitive conditions and

therefore would like to help in the information technology of the following can be

integrated within the enterprise information and Limited resources in order to

achieve a competitive advantage and thus to achieve business goals, enterprise

resource planning (Enterprise Resource Planning, ERP) system, which came into

being. Because ERP is based on industry best-practice benchmark for the Indian

Business Process designed a set of computer software packages, can be

integrated throughout the enterprise arising from the information, so that

Business operations and circulation of information through timely operations,

providing an authorized user as a decision-making. ERP system all current CRIS

system integration is the center of the mainstream products, which is the ERP

era is all about.



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Some of the bigger players in the ERP outsourcing market are SAP, Peoplesoft,

and J. D. Edwards. New comers include Oracle, IBM, and Microsoft.

3.2 4ERP Benefits and Advantages

According to Anthony, R. A, organizational processes fall into three levels

- strategic planning, management control and operational control. Even though

much of ERP success has been in facilitating operational coordination across

functional departments, successful implementation of ERP systems benefit

strategic planning and management control one way or other.

5ERP is an information software system that incorporates all the

applications of a businesss operations and all its departmental functions into onesingle system that can be used by all the departments of the business.

Businesses need ERP (enterprise resource planning) software systems in

order to run more efficiently and economically. Every department of a business

generates its own data. When this data remains segregated by department, the

result is disorganization and a splintering of information. This means it can take

days for one department to get data from another. Compartmentalized data

means built in delays in getting information to where it is needed. Businessesusing software packages that do not communicate with each other make the

company less competent and result in a loss of profits. A business operating

without ERP uses many kinds of software and is, therefore, not able to optimize

organizational business activities, nor to follow a clients patterns and choices.

ERP was designed to integrate a business data under one common

platform. When this data is organized and coordinated to form a complete

picture, the business saves costs and increases profit. ERP also cuts down on

labor intensive and time consuming processes. Basically, ERP is the answer to

many of the problems plaguing de-centralized businesses. ERP combines all

business applications into one database so that all departments can share their

4www.sysoptima.comandwww.absoft.co.uk

5http://www.erp.com/section-layout/337-erp-software/8204-advantages-of-erp-software.html

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information and communicate with each other more quickly. Another advantage

of ERP is that it does away with porting. Porting data from one system to another

introduces the probability that errors might creep into the data.

By its very structure, ERP automates business processes. A process

involving ERP can be set. In that way, tasks will be repeated in the same way

each time, thus increasing efficiency and reducing errors. Best practices can be

built into ERP allowing employees to increase productivity. In the end, the

integrated systems resulting from ERP will benefit a business marketing,

accounting, and management.

ERP also benefits a business order tracking procedures. The ability to

track orders properly permits a business to acquire detailed information on where

an order stands, to find patterns in a customers behavior, and to decide which

marketing strategies work best. The ability to know when and how the

manufacturing of a product should be altered is another advantage of ERP.

Security is another area where ERP proves to be an advantage. The databases

provided by ERP are capable of safely storing a business confidential data.

One of the greatest advantages ofERP software comes from its accounting

applications which can integrate the cost, profit, and revenue data from each and

every sale.

Help reduce operating costs:

ERP software attempts to amalgamate commerce processes across departments

onto a single enterprise-wide information system. The major benefits of ERP are

enhanced harmonization across functional departments and increased

efficiencies of doing business. The instant benefit from implementing ERP

systems we can imagine is abridged operating costs, such as inferior inventorycontrol price, inferior production costs, inferior marketing costs and inferior help

desk support costs.

Facilitate Day-to-Day Management:

The other benefits from implementing ERP systems is facilitation of day-to-day

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management. The implementations of ERP systems care for the organization of

backbone data warehouses. ERP systems offer better convenience to data so

that management can have up-to-the-minute access to information for decision

making and managerial control. ERP software helps track actual costs of

activities and perform activity based costing.

Support Strategic Planning:

Strategic Planning is "a deliberate set of steps that assess needs and resources;

define a target audience and a set of goals and objectives; plan and design

coordinated strategies with evidence of success; logically connect these

strategies to needs, assets, and desired outcomes; and measure and evaluate

the process and outcomes."Part of ERP software systems is intended to support resource planning section of

strategic planning. In reality, resource planning has been the weakest link in ERP

practice due to the difficulty of strategic planning and lack of sufficient integration

with Decision Support Systems (DSS).

6And speaking of the advantages ofERP, here are just a few to give you

an idea of whats in store.

Customer relationship management - for sales effectiveness and performancemanagement with customer plug-ins for feedback

Analytics, real-time data, easy to use screen interface for completing tasks

A single repository which contains the full business database or, sub-sectors

thereof

Sales configuration, pricing management, incentive compensation

Mobility - worldwide access to the database

3.3 7The Open Source Definition

6 http://www.erp.com/section-layout/337-erp-software/6824-some-advantages-of-erp.html

7 http://www.opensource.org/docs/osd

http://www.erp.com/index.phphttp://www.erp.com/index.php


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Introduction:Open source doesn't just mean access to the source code.

The distribution terms of open-source software must comply with the

following criteria:

Free Redistribution:The license shall not restrict any party from selling orgiving away the software as a component of an aggregate software

distribution containing programs from several different sources. The license

shall not require a royalty or other fee for such sale.

Source Code: The program must include source code, and must allow

distribution in source code as well as compiled form. Where some form of a

product is not distributed with source code, there must be a well-publicized

means of obtaining the source code for no more than a reasonable

reproduction cost preferably, downloading via the Internet without charge.

The source code must be the preferred form in which a programmer would

modify the program. Deliberately obfuscated source code is not allowed.

Intermediate forms such as the output of a preprocessor or translator are

not allowed.

Derived Works:The license must allow modifications and derived works,

and must allow them to be distributed under the same terms as the license

of the original software.

Integrity of the Author's Source Code:The license may restrict source-

code from being distributed in modified form only if the license allows the

distribution of "patch files" with the source code for the purpose of modifying

the program at build time. The license must explicitly permit distribution of

software built from modified source code. The license may require derived

works to carry a different name or version number from the original

software.



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No Discrimination Against Persons or Groups:The license must not

discriminate against any person or group of persons.

No Discrimination Against Fields of Endeavor: The license must not

restrict anyone from making use of the program in a specific field of

endeavor. For example, it may not restrict the program from being used in a

business, or from being used for genetic research.

Distribution of License:The rights attached to the program must apply to

all to whom the program is redistributed without the need for execution of

an additional license by those parties.

License Must Not Be Specific to a Product:The rights attached to theprogram must not depend on the program's being part of a particular

software distribution. If the program is extracted from that distribution and

used or distributed within the terms of the program's license, all parties to

whom the program is redistributed should have the same rights as those

that are granted in conjunction with the original software distribution.

License Must Not Restrict Other Software:The license must not place

restrictions on other software that is distributed along with the licensed

software. For example, the license must not insist that all other programs

distributed on the same medium must be open-source software.

License Must Be Technology-Neutral:No provision of the license may be

predicated on any individual technology or style of interface.

3.4 8Choosing An Erp System:

Technology is the engine that drives corporate productivity. Sound business

process to implement that technology is the transmission. Effective, well-thought-

out strategy is the gear shift. Well-connected and synchronized, they make a

8 By Steve Hammett, Account Executive, BroadPoint Technologies

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smooth running machine. Without all three, a car can only roll downhill. Similarly,

technology implementations without intelligent strategy and sound business

process will just go downhill.

Price-driven, fire-aim-ready technology deployments are proven to fail. Company

decision makers unable or unwilling to commit to do the job right are asking for

trouble-and thats what they typically get, along with very costly fixes. Reasons

abound, but most often it boils down to the basics: budgetary mandate to go as

cheap as possible and to implement in an impossibly-short time period. While

cost and time efficiency certainly factor into the final equation, they should be

guidelines, not primary decision-making drivers.

Before making determinations about either, commit to researching whats needed

in scope, time, and money. Then, and only then, establish a timeline and budget

for the process. Instead, what often happens is a dramatic call for sweeping

improvement. Technology is thrown at the problem as a quick-fix. Companies

substitute the technology itself for sound business process.

Quick-fix thinking isnt anything new. From the time the innovative General

Hannibal implemented new technology (elephants) to enhance his ability to wage

war, management theorists have recommended wave after wave of performance

improvement and technology strategies to gain the competitive edge. Noble

intentions drive these efforts, and each may address a part of the problem. If the

goal is to symbolize to employees, customers, and shareholders that

management recognizes the challenge and is doing something about it, then any

of these campaigns will do the job. However, piecemeal approaches purported to

be the answers to technology issues can be as dangerous as no response at all,

as they can absorb resources and detract from the true needs.

This is confusing; so what does a person need to think about to get started? A

few years ago Deloitte and Touch surveyed hundreds of companies who had

recently purchased a new ERP system; what was unique about this survey is that

D&T separated out the respondents criteria into first time and second time

purchasers to determine if experience changed purchasing criteria.

Top Ten Criteria for 2nd 1st

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Selecting Software Time TimeLevel of support from the solution

provider1 8

Vendors track record of

performance

2 10

Softwares ability to fit the

business3 4

Growth potential of software 4 7

Price of the software 5 1

Quality of documentation 6 9

Functionality of the software 7 5

Ease of use 8 3

Ease of implementation of the new

system9 2

Software works with existing

hardware10 6

If you look at the second time column, (experienced purchasers), solution

provider support and vendors track record were the top criteria while the first

time purchasers had these at the bottom. This clearly demonstrates that

experienced decision makers value the partners expertise above all else while

the inexperienced decision makers dont understand how critical the partner is to

the implementation. Additionally, inexperienced purchasers put price as their top

criteria yet experienced purchasers put price out of the top three criteria. So,

look for partners that have experience, understand business process and have a

large stable of clients who see them as trusted advisors. I would add software

viability to this mix; make certain that the software you choose is backed by a

financially sound company with a proven track record. This last criterion is the

reason BroadPoint is a Microsoft Dynamics partner. For mid-sized businesses,

you want to be certain that you have a firm foundation in which to grow your

business, and Microsoft provides this foundation. As your business evolves and

grows, we partner with you to tune the engine that drives corporate productivity.

BroadPoint and you, with a Dynamics foundation, make a smooth running

machine. So when beginning a search for a new ERP system, look for a partner

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who understands your business, uses sound software and has clients who see

the partner as a trusted advisor.

3.59

Implementation StrategyIn choosing new enterprise resource planning (ERP) software, implementation is

every bit as important as finding the right program. You should be thinking about

it proactively when evaluating systems, you should raise the topic with

propsective vendors and even ask for examples of their customers' strategies.

{C} There are hundreds of articles on "best practices" for implementing ERP

software, but understanding each strategy and choosing the best option is

difficult. So, we set out to consolidate the information in a single guide. Our aim is

to give you enough information and the most important pieces to choose the

best implementation process for your organization. We'll cover the three most

widely discussed ERP implementation strategies:

Big bang - Implementation happens in a single instance. All users move to the

new system on a given date.

Phased rollout - Changeover occurs in phases over an extended period of time.

Users move onto new system in a series of steps.

Parallel adoption - Both the legacy and new ERP system run at the same time.

Users learn the new system while working on the old.

Survey Results Updated April 1st

We recently hosted a survey to find out which ERP implementation strategies are

the most popular and most successful. With the help of Twitter and our favorite

industry bloggers, we received 45 responses from organizations that have been

involved in an implementation. Our survey was brief and informal with just four

simple questions:Which implementation strategy did your organization choose? Big bang, phased

rollout, parallel adoption, combo of big bang and phased rollout, or other.

9

Houston Neal Director of Marketing, Software Advice

Mar 11, 2010

http://www.softwareadvice.com/articles/manufacturing/erp-implementation-strategies-1031101/#ixzz1MJwevZgb

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If you selected other, please describe the strategy you chose.

Was the implementation a success?

If you selected no, please explain why.

When it comes to ERP implementations, these questions skim the surface. We

understand a myriad of questions and answers would be required to learn when

it's appropriate to choose a certain strategy. Additionally, we realize reporting the

"most successful strategy" would be erroneous. While one strategy may work for

a majority of companies, it may not be the best strategy for your organization. As

Jonathan Gross from Pemeco pointed out, "The circumstances dictate the

appropriateness of the implementation strategy. In some cases, a phased

deployment might be more appropriate than a parallel deployment. In other

cases, it might be the opposite."

Nevertheless, our survey did uncover some interesting data. Here are the results:

Eighty-nine percent of respondents followed "big bang," "phased rollout" or a

combination of the two strategies.

The number of phased rollout users compared to big bang was split nearly

evenly; parallel adoption trailed far behind with only four users; "other" came in

last. The "other" respondent left us the following explanation for his strategy:

"Component implementation; pilot projects; alpha testing; refinements and

iteration before opening it to entire unit. If successful in a unit, expand it

universally until all units have adopted."

http://www.pemeco.com/mainindex.phphttp://www.pemeco.com/mainindex.php


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Advantages Disadvantages

Implementation time is shorter Difficulties are more pronounced

Implementation difficulties and "pains" are

condensed

Details may be overlooked in the

rush to changeCosts are much lower than a long, drawn-out

implementation

Employees have less time to

learn the new system

Employees only need to be trained on the

new system, not for the changeover period

Full end-to-end system testing is

tough to carry our prior to

implementation

Implementation happens on a single

date and everyone knows the date

Fall-back scenarios are

more difficult than originally

perceived

A failure in one part of the

system could affect others

There is a catch-up period

(see Illustration below)

Another downside of big bang implementations is Ken Eason's "Initial Dip

Phenomenon." Eason, author of "Information Technology and Organisational

Change" and one of the original authorities on implementation strategies,

describes an "initial dip phenomenon" which happens shortly after an

implementation. This catch-up period happens because users are struggling

with the new system and organizational performance temporarily declines as a

result.



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Phased Rollout

In keeping with the theme of cosmological evolution, phased rollout

would be analogous to the Steady State theory: instead of an

implementation happening in a single instance, small changes occur

over time. An organization moves off the legacy system and onto the

new ERP system in a series of predetermined steps. This can be

achieved in several different ways. Here are three well-known

techniques:

Phased rollout by module -This is the most common phased rolloutstrategy. ERP modules are implemented one at a time. Typically you

begin with core business functions those necessary for daily operations

then add in more modules and functionality with each phase. However,

some experts suggest starting with easy modules like general ledger, or

beginning with the less mission-critical modules. For a good explanation,

read Insight Consulting Partner's write-up. Phased rollout by business unit -Under this approach implementation is

carried out in one or more business units or departments at a time. For

example, you begin with implementing the new ERP system in human

resources, then move to accounting. Some organizations may put

together an implementation project team that travels between each

http://www.insightcp.com/res_02.htmlhttp://www.insightcp.com/res_02.html


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department during implementation phases. As the team gains more

experience with each implementation, subsequent phases become more

efficient.

Phased rollout by geography -For organizations with multiple locations, aphased rollout by geography is a frequent approach. The new ERP

system is introduced at one or more company locations at a time. This is

also referred to as the "pilot adoption method." It's common for large

organizations that have multiple locations or independent departments.

Of course there are hundreds of options, including many variations and

combinations of these three. Just like big bang, a phased rollout strategy

has advantages and disadvantages. This table includes several commonviewpoints:


Companies gain knowledge and

experience during the initial

implementation phase that can be

applied to subsequent phases

Not as focused and

urgent as big bang

Possible to introduce modules while

programming future modules

Involves continuous

change over an extended

period of time

With conversion occurring in parts, time

is available for adjustments

Each modules relies on

information from other

modules, so there could be

critical information missing

There is no catch-up period, employees

learn as they go

Several adjustments

are needed



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More time for users to adapt to the new

system

Duration of the project

is much longer than big bang

Technical staff can focus on one part of

the system or a select group of users at

one time

A fall-back to the old

system becomes more difficult

with each phase

Project members may develop unique

implementation skills that they can be

positioned for in later rollouts

Temporary bridges

must be created between

legacy system and new

system

Parallel Adoption

The third generic though less talked about ERP implementation plan

is the "parallel adoption" approach. This has also been referred to as

"parallel conversion," "parallel running," or "parallel cutover."

Parallel adoption is thought to be the least risky implementation

process. It includes running both the old and new ERP system at the

same time. This way users can learn the new system while performing

regular work activities on the old system. After requirements for the new

system are met, then the legacy system is decommissioned.

Borrowing

another

illustration

from Ken

Eason,

parallel

adoption is

presented as the "middle road" between big bang and phased adoption.

For example, the pace of the changeover is slower than big bang, but


Eason Strategy Matrix
http://www.softwareadvice.com/articles/wp-content/uploads/2010/03/Eason-Strategy-Matrix.pnghttp://www.softwareadvice.com/articles/wp-content/uploads/2010/03/Eason-Strategy-Matrix.pnghttp://www.softwareadvice.com/articles/wp-content/uploads/2010/03/Eason-Strategy-Matrix.png


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faster than phased adoption. Similarly, user adaptation is easier than big

bang, but more difficult than phased adoption.

The major trade-off not illustrated in Eason's matrix is cost. Parallel

adoption is the most expensive implementation method. Additionally,having employees enter data in both systems is not efficient. However, if

the extra costs are less than costs incurred after a backfired big bang

adoption, then it's a reasonable plan. Still, organizations cannot predict

cost overruns of big bang, so parallel adoption has become decreasingly

popular because of perceived high costs.

10Which ERP Implementation Strategy is Best for Your Business?

There certainly is no one-size-fits-all when it comes to implementing anERP system. Every company has unique goals, and an implementation

requires careful planning and analysis. Some companies may choose a

combination of strategies, like a mini big bang mixed with phased

rollouts (i.e. "big bang" the important modules, then add in the peripheral

modules later). Others may choose to implement a mid-market ERP

system (e.g. Microsoft Dynamics, Epicor) at the plant-level, while

keeping a major ERP system (e.g. SAP, Oracle running at

headquarters). And at times, the best implementation strategy will be

obvious (as illustrated in this case study).

At a minimum, we hope this guide gets your organization off on the right

foot. By choosing one of the above or developing an entirely custom

strategy, you should be well on your way to success.

10http://www.softwareadvice.com/articles/manufacturing/erp-implementation-strategies-1031101/#ixzz1MJugBBtm

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4 MODULES OF ERP

4.111

General Ledger

The General Ledger module is the heart of any accounting system. The Chart of

Accounts and a company's income statement and balance sheet are maintained

in the General Ledger. Since OpenPro's General Ledger module is flexible and

customizable, it is useful for any sized business.

Because all OpenPro systems are fully web-based, data is available everywhere,

which provides mobility and flexibility for your business.

OpenPro web-based Financials helps you save time, reduce administrative costs

and gain better control over your business by automating a wide range of

accounting related tasks. It is a highly reliable and integrated series of business

applications that delivers a flexible, scalable and full featured total management

solution.

The Financial software is compliant with US-FASB, IASB, IFRS, and SOXstandards, and meets GASB requirements. It can handle government and non-

profit accounting standards.

OpenPro Financials has a variety of features and options built into it. The

Financials module is a fully integrated system with OpenPro Distribution, CRM,

Manufacturing, and E-commerce; it also works well as a stand-alone module.

OpenPro is ideal for companies standardizing on web-based technologies;

OpenPro is a cost-effective, easy to implement business software solution that

delivers internet-ready accounting and business management capabilities to your

business.

11 http://www.openpro.com/products_financials_gl.html



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Financials is a full service module, flexible enough to handle multiple companies

in various ways. In addition to providing maximum flexibility, the financial system

gives you fast and easy access to the information you need for day-to-day tasks

and period-end processing.

OpenPro Financials module includes Job Cost, Executive Desktop, General

Ledger, Budgets, Fixed Assets, Accounts Receivable, Check Reconciliation,

Accounts Payable, and Payroll/Human Resources.

4.2 How ERP Improves General Ledger Capacity:

Flexibility, quickness, and efficiency are the pillars and needs of the

modern organization. In order to ful fill all the requirements that the marketimposes, ERP has become an useful utility. The general ledger tasks are

nowadays one of the most important activities on the daily basis reports, and this

system is the most effective in helping to provide a solid structure where the cost

of sales, profit centre accounting and general ledger are unified.

Many enterprises find it difficult to combine the reporting applications, and some

companies spend considerable amounts of money to ensure the effectiveness of

their external and internal reporting. The records could be disorganized due to

their slow execution. In this instance, ERP becomes the best tool to reorganize

this function by increasing the data quality, combining the fields included in the

different databases of one program.

In regards to specific regulations and requirements related to the financial

reporting, ERP is able to provide an updated solution to maintain your activities in

order, because it has the ability to represent the parallel financial reporting in

several ledgers.

With the implementation of the system, compliance and transparency are

guaranteed, and it also makes it easier to gather and report the valuation bases



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needed to settle more than one account. Through this unified reporting program

the accounting is a simpler task to complete faster.

4.3 Benefits for Control:

The general ledger capabilities are benefited by the use of ERP in many ways.

An important challenge that modern companies face are the slow processes of

closing. When the system interferes in this activity, the data is all concentrated in

one single source, and it is easier to assign transparency for auditing. By this

way, the closing can be made faster and save time for other relevant issues.

Another advantage that the program offers is the ease of use. Although training

would be needed, any expert in integrated systems would be capable of using it.

The accounting and financial departments together with the controller will be

unified.

The reports will also be integrated with the ability to create reports in compliance

with several requirements that include the different regulations for each country

or industry. Of course the main attractive of ERP for the direction board is related

to the profits. Through the general ledger it is possible to reduce all the costs of

ownership.

The system supports a great variety of functions, with recurrent entries, reversion

entries, statistical entries, different currencies, staff and assignation entries. All

the data registered is validated online during the process of entry. All the

combinations of accounts, income and outcome totals are verified immediately.

The online validation allows the users to quickly correct the information without

executing the process separately. This benefit increases the productivity and

efficiency of the staff members since it avoids the repeated cycles of correction of

common data to the system that validates the data during the lot processing.



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4.4 Financial Processing:

The processing options are a great tool for capturing transactions with efficiency

and control. All the entries of journals are automated and it is possible to group

journals to run in parallel or in a special order when some journal depends on the

results of another. Likewise, the organization could be improved since the system

provides the users with the ability to schedule the journals to be generated or

posted based on your needs automatically.

Since the companies are worried about producing additional value with less

resources, this system helps to satisfy this need by running processes across

multiple ledgers easily. Unlimited ledgers could be settled and at the same time

run openings, closings, balances and reports.

4.5 12Application Features

General Ledger is the heart of the accounting system. The Chart of

Accounts and a company's statements are maintained in the General

Ledger. Because of the flexibility of the OpenPro General Ledger

application, it can be used by any business.

Run reports for all prior years, complete drill down to data entry screens

with security and know who processed the transaction.

Accounts Payable/Receivable: Manage your vendors and customers.

Flexible enough to meet any business' needs, while still being able to

streamline, saving time and cutting costs.

Check Reconciliation: Keep track of all your deposits and payments with an

easy to use balancing system.

12 http://www.openpro.com/products_financials_gl.html



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Fixed Assets: Record company assets and automatically calculate

depreciation expenses. Supports several methods of depreciation and

automatically posts expenses.

Payroll/HR: Maintain your employee's records electronically. With 128 bit

encryption, the system is secure enough to keep your most sensitive

documents safe. Payroll supports a variety of special functions ranging

from calculating payroll checks with individual deductions to maintaining

information required for state and federal reports.

Job Cost/Project Management: Provides management information you

need to quickly identify project costs that are out of line with budget

estimates and requirements.

Budgets: Keep track of what you are spending; compare your budget with

actual amounts.

Executive Desktop: Create graphic reports of the company status, from

budget charts to manufacturing work orders. Executive Desktop allows you

to create specific graphs for each user type.

4.6 13Cost/Benefit Analysis

Following on my previous post about Cost/Benefit Analysis General

Ledger, here is the more chocolate. The example! To illustrate the process, lets

create a hypothetical company with the following characteristics:

Annual sales: $500 million

Employees: 1000

13http://accounting-financial-tax.com/2008/10/costbenefit-analysis-of-erp-implementation-example/

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Number of plants: 2

Distribution centers: 3

Manufacturing process: Fabrication and assembly

Product: A complex assembled make-to-order product, with many options

Pre-tax net profit: 10 percent of sales

Annual direct labor cost: $25 million

Annual purchase volume (production materials): $150 million

Annual cost of goods sold: $300 million

Current inventories: $50 million

Now, lets take a look at its projected costs and benefits both for a

combined ERP/ES implementation and then for an ERP only project.

Costs are divided into one time (acquisition) costs and recurring

(annual operating) costs . . . and are in our three categories : C = Computer,

B = Data, A = People.

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4.7 1415What Can ERP Do for the Supply Chain?

16

The goal for any manufacturing operation - whether it is a discrete or a

process manufacturing business - is to produce quality products at the lowest

possible cost while striving to exceed customer expectations. Achieving this

consistently and cost-effectively depends on gaining deep insight into the supply

chain, especially when it comes to managing the complexities of formulating and

producing products to custom specifications.Maintaining market share in today's ever more competitive landscape

requires that manufacturing industries process orders faster-increasing execution

and delivery reliability rates-while giving customers better information on order

status and simultaneously managing compliance with legal and regulatory

requirements. All of this requires tremendous agility and a truly dynamic

operating environment that's capable of assimilating real-time information flows

across supply-chain touch points with ease.

But when it comes to joining the supply-chain management "dots,"

manufacturers face serious technical challenges in terms of process and data

14--Rakesh Kumar, Global Industry Product Director Manufacturing Industry, Microsoft Business Solutions

15 http://blogs.technet.com/b/vertical_industries/archive/2011/04/04/what-can-erp-do-for-the-supply-chain.aspx

16 OBrien, James. Introduction to Information Systems, 12e, 2005



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flows - especially when it comes to integrating the "spaghetti soup" of systems

controlling individual customer, supplier and production functions.

To resolve this integration challenge, manufacturers are taking a fresh

look at enterprise resource planning (ERP) as a means of gaining that all

important "single version of the truth" and equally crucial seamless connectivity

to customers and suppliers.

In the past, ERP has received a mixed reception. When the first

commercial ERP software packages exploded onto the market in the 1990s-

promising to integrate all data and related organizational processes into a unified

single information system-ERP acquired a reputation as an unwieldy monolith

that was unsuited to supply-chain management, being inflexible, costly to

implement and complex to operate.

But manufacturers-regardless of their size or the industry in which they

operate --have been missing out on a critical IT opportunity, because ERP has

changed.

Previously software vendors tried to fit a single ERP solution around the

needs of diverse industry verticals, such as semiconductors, chemicals or

food/beverages, resulting in shortfalls in the levels of support needed for industry

terminologies and industry-specific complexities in the manufacturing operations.

Today's next-generation out-of-the-box, supply-chain-management-specific ERP

solutions, such as Microsoft Dynamics AX, have evolved, becoming impressively

scalable end-to-end offerings that effectively streamline and automate business

processes across the supply chain.

Alongside delivering that all important data unity within the enterprise,

today's ERP solutions use customisable Web services to make it simple and

quick to connect with suppliers, logistics providers and customers and enable

seamless real-time data exchange and process sharing.

Easy to deploy and featuring easy-to-use intuitive tools that can be

accessed across the manufacturing operation-from the shop floor to the top floor-

today's ERP solutions make "joined up" streamlined supply-chain management

an achievable reality.



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It's this unique ability to integrate external business processes and support

application-to-application connectivity across multiple systems in a cost-effective

manner that now makes it possible for manufacturers to respond quickly to

changing customer and supplier demands.

Supply-chain optimization also is possible now. Powerful inventory

management tools help to improve forecasting and planning, so supply and

inventory levels can be fine-tuned to customer demand. While access to real-

time data gives users faster access to the tasks and critical business intelligence

information-like key performance indicators-needed to optimize the supply chain.

Finally, ERP makes it easy to simplify government and corporate compliance

commitments by defining custom business rules and workflows based on risk

scenarios.

Today's ERP solutions provide the vital backbone on which effective, cost-

efficient and dynamic supply-chain collaboration can take place. Besides

unleashing demand-driven production, organizations of any size in any sector

can respond faster to change, incorporate new customers and suppliers with

ease, and adapt their operation on the fly as business needs change.

4.817

Chain ERP management supplyEffective and integrated supply chains are of strategic importance to

companies who want to gain competitive advantage. Customers are demanding

greater flexibility, superior services, and rapid response.

ERP is the capability to provide timely cross organizational information. W.

Edwards Deming stated that approximately 95% of the problems within an

organization can be directly linked to the process only 6% are people problem.

To stay in the game, suppliers must achieve shorter lead times, greater assets

utilization, and increased productivity, all at lower costs. The real opportunity for

competitive advantage best lies with Effective Integrated Supply Chains. We

have worked extensively across different industries and have come up with

series of tailored Supply Chain Management modules in to assist companies to

17 http://www.abouterp.com/chain_erp_managment_supply.html



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streamline their operations, reduce logistics costs and enhance customer

service-all in real time. We offer specialist advice on every aspect of your supply

chain design, implementation, and execution, including

I Whether you're implementing, upgrading, or expanding your Enterprise

resource planning system - or looking to optimize your supply chain - the highly

skilled consultants at HP Services have the methodologies and know-how to

meet your needs on-time and on-budget.

HP implementation teams draw on our first-hand experience with SAP

deployments throughout our own organization, in addition to our work with

Enterprises around the world as a SAP Global Services Provider, to bring you

solutions based on proven best practices and methodologies.

We offer world-class supply chain process consulting, application implementation

and IT infrastructure services. Our offerings encompass conventional SAP

implementations, design and deployment of solutions in the rapidly evolving

Advanced Planning and Scheduling (APS) arena, SAP Enterprise portals, and

supply chain management and optimization solutions. All of our services and

solutions are designed to help you increase profitability, reduce lead times and

costs, focus on your core competencies, and enhance your ability to collaborate

with partners and customers.

ERP & Supply Chain consulting with a difference

Take advantage of HP's special strengths in ERP and supply chain optimization:

One-stop shopping for end-to-end solutions that integrate high-performance

platforms, HP and partner infrastructure and application software, consulting and

integration services, and support

A strategic and collaborative relationship as an SAP Global Services Partner

A track record of working with clients in diverse industries: more than half of all



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SAP installations worldwide are on HP systems\

First-hand experience with SAP R/3 consolidation and APO within HP

Annual recipient of SAP's Award of Excellence since its inception in 1995

A proven, best practices-based "rapid" methodology to analyze, build, integrate,

and evolve solutions Global reach with offices in 160 countries A uniquely

collaborative approach that fosters efficient knowledge transfer between our

people Your enterprise is part of a supply chain, or maybe a demand chain, and

there are companies, or maybe enterprises, ready to sell you an enterprise

resource planning system that will help you label everything your organization

does with spiffy new buzzwords. If you're involved in your organization's

information technology systems, you've heard about Enterprise Resource

Planning (ERP) systems. These are huge, all-in-one systems that promise to

handle disparate processes that at one time required their own computer

systems: sales ordering, general ledger, accounts payable and receivable, cost

management, payroll (human resources planning), inventory, logistics,

purchasing, material planning, shop floor data collection and management, and

production.

ERP is one of the hottest software products in the large business market today.

Independent studies put the overall market in 1998 at about US $16.7 billion, up

an impressive 39 percent from a year earlier.

AMR Research of Boston, a leading industry expert firm, predicts that the total

opportunity for ERP, including the software, installation and services required to

make it work, could be as high as US $66.6 billion by 2003.

The ERP field today is led by some of the world's biggest software companies:

Oracle (the world's second-largest software firm after Microsoft), SAP, Baan, JD

Edwards, PeopleSoft and SSA might sound familiar to most readers.

ERP promises not only to automate all your back office business procedures, it

also offers electronic commerce. If you want to sell over the Internet, ERP

vendors are ready for you.

And with the Y2K problem just around the corner, you might be looking to

upgrade your system. ERP is definitely worth close consideration.



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What can ERP do for you?

Integrating sales, order desk, inventory control, finance, and management

reporting has significant benefits, not the least of which is from the information

technology manager's perspective. There's now only one computer system to

maintain and to upgrade periodically, which saves a lot of time and money.

Implementing an ERP system often replaces several older computer systems,

which can also boost computer productivity. With only one system, you can also

reduce training costs.

If your current computer system isn't ready for the year 2000, ERP can nicely

sidestep that issue as most ERP vendors made sure their products were ready

for the millennium about two years ago.

A more significant benefit for most companies is the improved use of their

information technology. ERP systems present better information in a more timely

manner to the people who need it. Sales reps can check inventory levels and

prices before committing to deadlines; managers can check margins before

offering special deals.

Having a single source of data for everything that happens in an enterprise also

makes the whole organization more flexible; companies can ramp up production

more quickly, or can shift what they're making or where they're making it more

readily.

ERP systems can also make employees, whether in customer service or

production, more productive. ERP systems can reduce turnaround or order

fulfillment time and increase accuracy in fulfilling customer orders. For cash

savings, ERP systems can help reduce inventory costs through improved stock

tracking.

Case in point: Walbar

Last year, Walbar, a manufacturer of turbine blades and other parts for airplane

engines, replaced its business application system with an ERP system from JD

Edwards.

Walbar is a division of Coltec Industries, Inc., and has three locations in the

United States and one in Mississauga, Canada. The company took more than 18



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months to select a system, install it and train its employees. The system has

been "live" since May, 1999. Since Walbar chose to phase in the implementation,

as of our press time the company had not yet started using all the modules, but

started with the core: inventory control, financials, product data management,

bills of materials, routing, work centre, shop floor management and workflow.

The total cost for the implementation at the Mississauga plant, including the IBM

AS/400 computer, servers, new IBM workstations, software, installation and

training was about US $1 million.

"It's early to say what the benefits are, but I have definite expectations about

reducing inventory, which will free up a significant amount of cash," says Peter

Mammone, director of finance at the Mississauga location. "Another real benefit

will be the ability to better plan for the severe cyclical nature of the airplane

engine business."

Beyond that, Mammone sees real improvements in improved customer service;

quicker and more accurate delivery of customer orders through better materials

planning and order tracking. In Mammone's industry, mistakes are very costly, as

there are only about a dozen manufacturers of airplane engines in the world. He

says you can't afford to annoy any of them.

One key benefit of ERP systems is the way it integrates a company's flow of

information. Using an ERP system, the sales, purchasing, production, inventory

control and accounting departments all use the same information. One set of

data is used throughout the company to make sure customers get what they

want when they want it, and that the whole thing is profitable for the company.

Centralizing this information and presenting it consistently can also improve

planning and decision making.

To illustrate the value of ERP in action, take a look at Xerox Corp., which

installed an Oracle ERP system in three distribution locations across the United

States. Each centre produces digital cpiers and printers, and ships them to

customers.

When an order comes in, Oracle's Release 10.7 ERP system picks the



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appropriate stock from the inventory, which is all identified with bar codes.

Barcode readers from Intermec track products and communicate with the ERP

system via wireless transmission; middleware from Connectware translates the

barcode data from Intermec into Oracle's language.

4.9 18Four Key Benefits of Supply Chain Management Software

Supply chain software can offer tremendous value to any company that relies on

the smooth planning and execution of related operations to achieve long-term

profitability and maintain a solid competitive edge. Thats why more and more

organizations are purchasing and implementing supply chain applications. In fact,

the market for supply chain and related softwares is expected to reach $7.4billion in 2008, according to a report by ARC Advisory Group.

Improve Your Supply Chain Network: Supply chain softwares provide

complete, 360 degree visibility across the entire supply chain network

something that cannot be easily achieved with disjointed manual processes.

With supply chain, users can monitor the status of all activities across all

suppliers, production plants, storage facilities, and distribution centers. This

enables more effective tracking and management of all related processes, from

the ordering and acquisition of raw materials, through manufacturing and

shipping of finished goods to customers or retail outlets. So the status of mission-

critical activities can be tracked at all times, and potential inefficiencies or

problems can be identified and corrected immediately, before they become

unmanageable.

Minimized Delays: Many supply chains particularly those that havent been

enhanced with a supply chain application are plagued by delays that can result

in poor relationships and lost business. Late shipments from vendors, slow

downs on production lines, and logistical errors in distribution channels are all

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common issues that can negatively impact a companys ability to satisfy

customer demand for its products.

With supply chain software, all activities can be seamlessly coordinated and

executed from start to finish, ensuring much higher levels of on-time delivery

across the board.

Enhanced Collaboration: Imagine having the ability to know exactly what your

suppliers and distributors are doing at all times and vice versa.

Supply chain softwares make that possible, bridging the gap between disparate

business softwares at remote locations to dramatically improve collaboration

among supply chain partners. With supply chain softwares, all participants can

dynamically share vital information such as demand trend reports, forecasts,

inventory levels, order statuses, and transportation plans in real-time. This type

of instantaneous, unhindered communication and data-sharing will help keep all

key stakeholders informed, so supply chain processes can run as flawlessly as

possible.

Reduced Costs:A supply chain software can help reduce overhead expenses in

a variety of ways. For example, it can: Improve inventory management,

facilitating the successful implementation of just-in-time stock models, and

eliminating the strain on real estate and financial resources caused by the need

to store excess components and finished goods Enable more effective demand

planning, so production output levels can be set to most effectively address

customer requirements without the shortages that result in lost sales, or the

waste that drains budgets Improve relationships with vendors and distributors, so

purchasing and logistics professionals can identify cost-cutting opportunities such

as volume discounts.



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4.10 19ERP Purchasing Module:

ERP Purchasing module streamline 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.

4.11Features of purchasing module:

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

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

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

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

Advance adjustments

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Purchase bill with updating 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

ERP Purchasing module 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. Import of goods is also

handled by the system.

4.12Major benefits

Vendor performance analysis for effective vendor management.

Smart List to generate the Purchase Orders.

Purchase Receipt Generation Process.

Option to generate Quote-Request to Vendors.

Analysis Reports equipped with graphical charts.

Instant access to critical PO data.

PO generation time/cost savings.

4.13 20Cost and Benefits Analysis:

One of the main focuses of a Business Excellence project is customer

service. We find that our "make to stock" Business Excellence companies

achieve high levels of stock availability, typically over 99%. Any make for stock

company in a competitive situation should be able to estimate the possible extra

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sales they could capture if they always had their pr

financial prospects on implementation of erp

Documents