Chapter 1

SYNOPSIS

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 specializes
applications in countless business and nonbusiness areas. Business
professionals rely on many types of information systems that use a variety
of technologies. For 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. Until the 1960s,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 ERP as a solution.
Originally, ERP 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. However, 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. ERP 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.

1.1 Objective
Enterprise Resource Planning is the latest high end solution,
information technology has lent to business application. The ERP
solutions seek to streamline and integrate operation processes and
information flows in the company to synergise the resources of an
organisation namely men, material, money and machine through
information. Initially implementation of an ERP package was possible only
for very large Multi National Companies and Infrastructure Companies due
to high cost involved. Today many companies in India have gone in for
implementation of ERP and it is expected in the near future that 60% of
the companies will be implementing one or the other ERP packages since
this will become a must for gaining competitive advantage.
In the present business environment, role of a Chartered Accountant is
considered to be very important and inevitable. Chartered Accountants as
managers, consultants, advisors or auditors play an important role in
controlling, managing, and supporting the business.
As the business needs are very complex in nature, the implementation of
an ERP package needs Chartered Accountants with functional skills for
evaluation, Business Process Reengineering (BPR), Mapping of Business
requirements,

Report

designing,

customization

of

package

the

ensuring
for

the

Business
specific

controls,

requirements,

Documentation etc.,
Sooner or later a Chartered Accountant without the knowledge of ERP
may feel as if he is a fish out of the bowl. By this article it is attempted to
highlight various aspects of ERP and specific areas of ERP that are
relevant for Chartered Accountants.

1.2 Evolution of ERP

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

Aggressive Cost control initiatives

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

Flexibility to respond to changing business requirements
More informed management decision making
Changes in ways of doing business
Difficulty in getting accurate data, timely information and improper
interface of the complex natured business functions have been identified
as the hurdles in the growth of any business. Time and again depending
upon the velocity of the growing business needs, one or the other
applications and planning systems have been introduced into the business
world for crossing these hurdles and for achieving the required growth.
They are:
Management Information Systems (MIS)
Integrated Information Systems (IIS)
Executive Information Systems (EIS)
Corporate Information Systems (CIS)

Enterprise Wide Systems (EWS)

Material Resource Planning (MRP)

Manufacturing Resource Planning (MRP II)

Money Resource Planning (MRP III)

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

1.3 Need for ERP

Most organizations across the world have realized that in a rapidly
changing environment, it is impossible to create and maintain a custom
designed software package which will cater to all their requirements and
also be completely up-to-date. Realizing the requirement of user
organizations some of the leading software companies have designed
Enterprise Resource Planning software which will offer an integrated
software

solution

to

all

the

functions

of

an

organisation.

Features of ERP
Some of the major features of ERP and what ERP can do for the business
system are as below:

ERP facilitates company-wide Integrated Information System

covering all functional areas like Manufacturing, Selling and
distribution, Payables, Receivables, Inventory, Accounts, Human
resources, Purchases etc.,

ERP performs core Corporate activities and increases customer

service and thereby augmenting the Corporate Image.

ERP bridges the information gap across the organisation.

ERP provides for complete integration of Systems not only across

the departments in a company but also across the companies
under the same management.

ERP is the only solution for better Project Management.

ERP allows automatic introduction of latest technologies like

Electronic Fund Transfer(EFT), Electronic Data Interchange(EDI),
Internet, Intranet, Video conferencing, E-Commerce etc.

ERP eliminates the most of the business problems like Material

shortages, Productivity enhancements, Customer service, Cash
Management, Inventory problems, Quality problems, Prompt
delivery etc.,

ERP not only addresses the current requirements of the company

but also provides the opportunity of continually improving and
refining business processes.

ERP provides business intelligence tools like Decision Support

Systems (DSS), Executive Information System (EIS), Reporting,
Data Mining and Early Warning Systems (Robots) for enabling
people to make better decisions and thus improve their business
processes

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

Sales and Marketing

Master Scheduling

Material Requirement Planning

Capacity Requirement Planning

Bill of Materials

Purchasing

Shop floor control

Accounts Payable/Receivable

Logistics

Asset Management

Financial Accounting

Suppliers of ERP
There are many numbers of ERP suppliers who are very active in the
market. Some of the companies offering renowned international ERP
products include:

Baan

CODA

D&B

IBM

JD Edwards

Marcarn

Oracle

Peoplesoft

Platinum

Ramco

SAP

SMI

Software 2000

1.4 BPR and ERP

Business Process Reengineering is a pre-requisite for going ahead with a
powerful planning tool, ERP. An in depth BPR study has to be done before
taking up ERP. Business Process Reengineering brings out deficiencies of
the existing system and attempts to maximize productivity through
restructuring and re-organizing the human resources as well as divisions
and departments in the organisation
Business Process Engineering evolves the following Steps:

Study the current system

7

Design and develop new systems

Define Process, organisation structure and procedure

Develop customize the software

Train people

Implement new system

The

principle

followed

for

BRP

may

be

defined

as

USA

principle(Understand, Simplify Automate)

i.e., Understanding the existing practices, Simplifying the Processes and
Automate the Process. Various tools used for this principle are charted
below:

Understand Simplify Automate

Diagramming Eliminating EDI

Story-boarding Combining ERP

Brain storming Rearranging

1.5 Selection of ERP

Once the BPR is completed the next task is to evaluate and select
a suitable package for implementation. Evaluation of the right ERP
package is considered as more crucial step. Evaluation and selection
involves:

checking whether all functional aspects of the Business are duly

covered

checking whether all the business functions and processes are fully
integrated

checking whether all the latest IT trends are covered

checking whether the vendor has customizing and implementing

capabilities

checking whether the business can absorb the cost

checking whether the ROI is optimum

1.6 Implementation of ERP

Implementing an ERP package has to be done on a phased
manner. Step by step method of implementing will yield a better result
than big-bang introduction. The total time required for successfully
implementing an ERP package will be anything between 18 and 24
months. The normal steps involved in implementation of an ERP are as
below:

Project Planning

Business & Operational analysis including Gap analysis

Business Process Reengineering

Installation and configuration

Project team training

Business Requirement mapping

Module configuration

System interfaces

Data conversion

Custom Documentation

End user training

Acceptance testing

Post implementation/Audit support

The above steps are grouped and sub-divided into four major phases
namely

1)detailed

discussions,

2)

Design

&

Customisation,

3)

Implementation and 4) Production. The phases of implementation vis-a-vis

their tasks and respective deliverables are as below:
Detailed Discussion Phase:
Task :- Project initialization, Evaluation of current processes, business
practices, Set-up project organization
Deliverables:- Accepted norms and Conditions, Project Organisation chart,
Identity work teams
Design and customisation Phase:
Task :- Map organisation, Map business process, Define functions and
processes,

ERP

software

configuration

and Build

ERP

system

modifications.
Deliverables :- Organisation structure, Design specification, Process Flow
Diagrams,

Function

Model,

Configuration

recording

and

system

modification.
Implementation

Phase:

Task :- Create go-live plan and documentation, Integrate applications,

Test

the

ERP

customisation,

Train

users

Deliverables :- Testing environment report, Customisation Test Report and

Implementation report
Production Phase:
Task:- Run Trial Production, Maintain Systems
Deliverables:-

Reconciliation

reports,

10

Conversion

Plan

Execution

1.7 Benefits of ERP

The benefits accruing to any business enterprise on account of
implementing are unlimited. According to the companies like NIKE, DHL,
Tektronix, Fujitsu, Millipore, Sun Microsystems, following are some of the
benefits they achieved by implementing ERP packages:
Gives Accounts Payable personnel increased control of invoicing
and payment processing and thereby boosting their productivity
and eliminating their reliance on computer personnel for these
operations.
Reduce paper documents by providing on-line formats for quickly
entering and retrieving information.

Improves timeliness of information by permitting, posting daily

instead of monthly.

Greater accuracy of information with detailed content, better

presentation, fully satisfactory for the Auditors.

Improved Cost Control

Faster response and follow up on customers

More efficient cash collection, say, material reduction in delay in

payments by customers.

Better monitoring and quicker resolution of queries.

Enables quick response to change in business operations and

market conditions.

Helps to achieve competitive advantage by improving its business

process.

Improves supply-demand linkage with remote locations and

branches in different countries.

Provides a unified customer database usable by all applications.

11

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.

12

Chapter 2
RESEARCH DESIGN

13

2. RESEARCH DESIGN
Research is a systematic and logical study of an issue or a problem
to arrive at accurate results, research the job of collecting, recording and
analyzing relevant data to arrive at decisions. The present study is
systematic, objective and exhaustive search for studies of the facts
Relevant to a problem in the field of Human resource management.
Review of Literature
My 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.My 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 size
The study encompasses all the employees of the software enterprises.
2.1 Sampling method and sample size
Sampling plan:-An integral component of a research design is the
sampling plan, specifically it addresses three questions.

Whom to survey? (Sampling unit)

How many to survey? (Sample size)

How to select them? (Sampling procedure)

14

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

we have taken all the thirty as sample.
2.2 Data collection design
Data was collected with the help of using questionnaires. A
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 standardization 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
Close-ended
Direct question

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

Primary data will be collected through questionnaire survey. In this method
questionnaire was prepared and given to the sample population to fill.
Field work
The fieldwork was the data collection by contacting the respondents
personally at their respective work desks. And few of the information
gathered were through E-mailed questionnaires.

15

2.3 Method of Analysis

The data collected through questionnaire and the records available was
examined in detail. It was further tabulated with various statistical tests.
2.4 Statement of the problem:
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.
2.5 Scope of the study
This is a attempt to design an ERP system which involves an
integrated automation of entire processes done in the concerned company
.In this present day when companies, irrespective of their market size and
market share, are selling in various areas of the world. ERP is a best
available solution for them. ERP packages are targeted at everything from
small business to largest organizations, and that can be composed of a
highly flexible decentralized database and an information system cluster
linked by a network. An ERP package can not only handle individual
business functions such as accounts, HR and material management, but
also the entire range of business functions necessary for the companys
operations.

16

2.6 Objectives of the study:

Primary objective:
To analyze the enhancements required for the current manual
system and to design an automated system.
Secondary objective:
To make it more user friendly
To include a search engine
To include a scrape management system
2.7 Hypothesis:
H 0 :The functions performed by the existing system of the concerned
company are inefficient.
H 1 :The functions performed by the existing system of the concerned
company are efficient.
Primary source:
The researcher will collect

the data directly from sample

respondents through direct interview method and with the help of

structured questionnaire.
Secondary source:
The secondary data for the study will be collected from various
journals, survey reports, books and magazines.

17

Sampling technique:
The employees of the concerned company are taken as a sample
and will carry out the study.
Duration: 1 month
Limitations:
Time and cost matters the survey to some extend.

18

Chapter 3
INDUSTRY PR OFILE

19

3. INDUSTRY PROFILE
What is ERP?
ERP stands for Enterprise Resource Planning. ERP software integrates all
of your major business processes, which helps ensure consistent data
across all your functional departments. ERP applications typically consist
of modules such as Marketing and Sales, Field Service, Production,
Inventory Control, Procurement, Distribution, Human Resources, Finance,
and Accounting.
ERP business process model fully integrates ERP and CRM 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,
360-degree view of your business, customers and vendors.
3.1 What makes ERP better?
Fast and Flexible Implementation
All of the information provided during implementation can be adapted or
modified at any time to meet the changing needs and demands of your
company. By choosing ERP, you can reduce hidden organizational, ongoing-integration, operational and maintenance costs.
Designed for the Global Economy
Traditional ERP applications weren't developed for the complexities of the
global market. Gaps in functionality arise when these features are simply
layered on top of existing code. But now it is designed with global markets
20

in

mind,

featuring

multi-currency,

smulti-tax,

multi-costing,

multi-

accounting and multi-organizational functionalities. The accounting

solutions cater to the needs of enterprise, no matter what currency or
schema you use. ERP even provides the flexibility to account in one or
more Accounting Schema in parallel. It also features language packs and
the ability to customize both the Web Store and the application itself to suit
your language requirements.
Can ERP software improve the company's business performance?
ERP solutions give you the ability to save time and money across your
entire enterprise. With ERP software you need only input customer,
vendor, and order data once and then share it across your functional
departments. You can automate inventory and warehouse procedures as
well as billing and accounting procedures. You can use ERP applications
to create reports and analyze enterprise trends quickly and easily,
allowing you to respond quickly to shifts in the market. It also helps make
e-commerce easy. The information in Web Store is shared with the
standard application, so no synchronization or extra integration work is
required.
Will an ERP application fit the way I do business?
With traditional ERP solutions, this question was vital. ERP applications
normally come with a built-in system of "Best Practices" whose restrictive
rules limit your business processes. ERP system are built to adapt to your
business structure because we know that every company has unique
needs.

21

Can ERP software help with integration problems?

One of the reasons businesses look into an ERP installation is that their
enterprise is experiencing difficulty in integrating the information they have
stored in widely diverse applications that can't "talk" to one another.
Organizations within a company may even use different programs to
perform the same functions. When you install an ERP application you
solve many of your information integration problems. With an ERP system
you have better data quality, since information need only be entered once
to be available to the entire company. You are also able to easily run
reports using enterprise-wide data, allowing you to quickly see trends
developing within specific organizations or across your entire company.
3.2 COMPANY PROFILE
Nano-tech Controls was set up in 2007 with an aim to establish itself
among leading Global IT Solutions Providers. On road to the vision, the
company has

already emerged

among

India's fastest

growing

organizations that provide quality IT and IT enabled services to its

clients.
Nano-tech Controls provides IT solutions to meet the business
needs of small and medium enterprises. We provide comprehensive
technology and web branding solutions spanning varied business
domains and entrepreneurial ventures. Our solutions involve research,
business process analysis and use of relevant technology.
Nano-tech Controls

is

focused on

leveraging

information

technology to help small and medium enterprises achieve their

business goals. We 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.

22

Nano-tech Controls is an organization with four distinct skill sets:

We are a consulting company that generates ideas, evaluates business
processes and helps our clients in formalizing an idea, application, or a
process.
We craft a unique information technology solution that will deliver value
and addresses all your business needs.
We package the solution in a visual medium so that we deliver a unique
and interesting user experience
IT Consulting and Business Solutions
With over 20 successful projects Nano-tech Controls provides the
necessary solutions for the small and medium enterprises to enable
them to leverage the strength of IT by automating business processes.
We 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.

Technology Solutions
Our 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. We ensure that our
technology solutions help you increase the effectiveness of your current
IT infrastructure.

23

INTEGRATED VISUAL DESIGN

Human computer interaction has become an important parameter
in developing all business applications which have multiple sets of
users. Our integrated visual design teams along with our business
analysts ensure that all your applications have an aesthetic and intuitive
visual interface and navigation. Our visual design team produces highly
creative new media and print media solutions including web branding,
promotion and corporate collaterals.

3.3 OUR MISSION

Mission: To become the best in the world in providing our clients
with world-class products and services that help select, develop, and
retain business status.
Values: We are committed to:
Being customer driven and quality focused.
Adding value to our clients and improving business results by
providing products

and services that are valid, easy to use,

fast, and cost effective.

Continuously improving our offerings to ensure both the content
and the technologies are innovative and leading edge.
Empowering our clients to use Nano-tech Controls products and
services in a flexible manner to meet their needs
Being governed by high standards of integrity and professional
ethics.

24

Chapter 4
PROJECT OVERVIEW

25

4. Project Overview
4.1 Choosing ERP Software
ERP failure cannot be tolerated by organizations as it involves great
money. On the contrary ERP success makes great money. The causes of
ERP failure can be a result of any of the following elements acting in
combination or individually:
Meeting and consultations in the organizations to decide ERP
Selecting ERP software does not happen all on a sudden or as a result of
an overnight's discussion. There is lot of groundwork that needs to be
done in this regard. There are many reasons for the ambiguity, with the
foremost being advent of Internet. This has expanded the scope of
computers and redefined the technological implications in the business.
As a result there is more expectations and demand. These were not
foreseen earlier. Advancement in computing indirectly implies the
advancement in enterprise resource planning. Needless to say the
constant updating, upgrading and innovating have become the benchmark
of ERP packages. The indecisive mind of companies in choosing ERP soft
ware solutions needs no explanation.
Hire or Buy ERP
There are two alternatives in choosing ERP software for the company.
The first one is purchasing the software while the second one is obtaining
one on hiring basis. There aren't any differences in terms of costs or
benefits irrespective of the option that the company goes for. It all lies in
how best the company makes use of ERP. However the company has to
stick on to any one option as soon as it finalizes.
ERP should Suit company preferences
Companies that choose ERP on grounds of their own preferences
succeed in the long run than other companies. Other companies who sail
by some decision that does not justify their preferences are most unlikely
to succeed.
Choosing the ERP vendor
The quality of the services offered by the vendor is equally detrimental in
choosing ERP software. Buyers generally tend to purchase from sellers
who have got adequate experience in ERP Products and services. This is

26

the usual practice for any commodity. This has to be strongly followed in
the case of ERP as there are several dimensions involved with regards to
decision making. Nevertheless Choosing to buy from the right person is
alone not enough. How the organization makes the best use of it in
response to the specific needs, to avail the best services is more
important
in
deciding
to
buy
ERP
Systems.
ERP implementation will be successful if certain guidelines are followed in
choosing ERP software. There is a dual purpose in ERP. It is neither
meant exclusively to benefit the trade procedures in the organization nor
help the technological contents. It has to make both ends meet. This Key
function holds ERP in a special manner when compared with any other
system. Therefore the company must be prudent enough to choose an
application that caters to this advantage to the maximum extent. Therefore
if a company chooses an enterprise process to assist the business or
technology alone the decision will not yield the required results.
Essential Elements of an ERP System
If a company is able to obtain all the related products of ERP from one
seller /vendor then it can be termed as a profitable Venture. The company
will be able to avail their services in all matters relating to ERP solutions.
This is highly recommended and regarded as a wonderful combination.
When they choose to buy an ERP application of a particular module it
must be ensured that they enable connectivity and facilitate data transfer
which should easily be made available to the stakeholders. The advantage
in buying a modular application is that the company can choose to select
them on the basis of the function for which it is purchased. These are the
essential element of ERP systems.
Time constraints in respect to the organizations function
The ERP system should be purchased based on the long term needs of
the organization. In that sense the firm should visualize its prospects,
position and requirements in the long term also. Therefore it has to be
made sure that ERP is not restricted to meeting the current needs. This
will also help in implementation of ERP.
Suppose if a company is engaged in one particular domain of banking it
also needs to understand that it may have to cater to the entire banking
sector if the need arises. Hence it must purchase ERP that can serve
related banking applications or if not be capable of modification for the
said purpose in the future. This will also stand out to be true in the case of
organizations that aim at diversifying the business. A choice is to be made

27

from ERP implementation models. This will also help in implementation of

ERP.
Employees to express their opinion on ERP
The core members in the decision making body (for ERP) should hear and
heed to the views of all the employees in the company as long as they are
valid. This will make sure that everyone is given an opportunity of being
heard so that they don't lament that they were not allowed to express their
opinions on ERP. This discussions will facilitate the decision making body
to know how well ERP is received in the company and what are the
setbacks that are to be removed. This will also help in implementation of
ERP
There is another important objective in these meetings. They help to bring
out the various modifications and technological changes that the company
has to undergo to become ERP friendly. Gap meeting and business
process requirements do help in bringing out them. But these processes
will witness the employees difficulties and requirements directly. The
impact is also bound to be more when it is voiced out in person and in
detail.
Customizable and predefined Modules
A large majority of ERP sellers sell customized application in addition to
predefined applications to ERP customers. They assist the customers in
making all decisions right from implementation to use. Both have their own
advantages and disadvantages. In the case of customizable applications
the buyers will be instructed about the various options available for
modifying. The users have to make a decision of choosing the appropriate
combinations on the basis of their business requirements.
Resorting to an External Body for ERP Services
Some organization finds it tedious to undertake the above mentioned
steps. Their workload would be too large to concentrate on this. In that
case they can be outsourced to a third party who can take care by keeping
the needs of the organizations in mind. There are many competitive
advantages in availing the services of such person. Firstly they have the
professional expertise and the required experience. The third party will
also face the difficulties of the firm but there wont be any mindset or
favoritism as far as he is concerned .these are all inevitable when the
company is doing the service. Their services will be suited even for bigger

28

operations that have numerous complexity and ambiguity in operations.

This will also help in implementation of ERP.
Verifying the credibility of Vendor's services
The company has to check if the Vendor has already installed a similar
configuration elsewhere as it would not be advisable to be subjected to
first time testing given the huge investment in the name of ERP. If possible
the company can try to get information from the ERP customers of the
vendors but it is not practically possible to elicit the necessary information
whether they are competitors or not, as business ethics and professional
code of conduct would not permit the same. They will also help in
analyzing ERP Systems.
Application Service Provider
Application service provider is an emerging concept in ERP packages.
These are built in packages that have their own setups for hardware and
business process. The usual manner of choosing ERP viz Deciding,
buying and installing has even been given a go by in some occasions.
This will also help in ERP integration
The edge enjoyed by S.M.E.'s
ASP was discussed as a profitable option. The actual fact is that it is a
boon to small and medium enterprises (S.M.E.'S).They would not have
been able to think about ERP but for ASP and outsourcing. They would
choose these due to efficient services and affordable costs.
Choosing an outsource service provider
These companies may also choose to select the systems on a rental basis
so that they are not burdened with the tasks like administration, handling
network as these are too big when compared with the size of their firms.
As per ASP arrangement the infrastructure part will be taken care of by
the service provider. The company can access everything online, while the
customers access to ASP at an agreed Service charge for the stipulated
periods.
In the case of business process outsourcing the organization can avail the
services of a consultant for its business that will perform the required
functions on behalf of the company. The company can also choose to
outsource inhouse operation to the outsourcer to get maximum benefits be
made from ERP implementation models.

29

Choosing ERP vendors for ASP

Companies must exercise caution in choosing Asp service provider. Many
ERP sellers offer ASP services in response to the rising market demand.
Their expertise is unquestionable but the trouble lies in terms of costs as
the ERP vendor would price them at high rates. In addition the choices are
not plenty interms of choosing players. Therefore it is advised to refrain
from vendors offering ASP services and approach ASP service providers
alone. This will also help in implementation of ERP.
Resorting to an External Body for ERP Services
Some organization finds it tedious to undertake the above mentioned
steps. Their workload would be too large to concentrate on this. In that
case they can be outsourced to a third party who can take care by keeping
the needs of the organizations in mind. There are many competitive
advantages in availing the services of such person. Firstly they have the
professional expertise and the required experience. The third party will
also face the difficulties of the firm but there wont be any mindset or
favoritism as far as he is concerned .these are all inevitable when the
company is doing the service. Their services will be suited even for bigger
operations that have numerous complexity and ambiguity in operations.
There are different software solutions available for both purposes.
Verifying the credibility of Vendor's services
The company has to check if the Vendor has already installed a similar
configuration elsewhere as it would not be advisable to be subjected to
first time testing given the huge investment in the name of ERP. If possible
the company can try to get information from the ERP customers of the
vendors but it is not practically possible to elicit the necessary information
whether they are competitors or not, as business ethics and professional
code of conduct would not permit the same.
The Nuances in choosing ERP Software
Pre ERP implementation includes analysis, constructive criticism;
homework's has a significant place in the whole process of ERP. Lot of
research and background work needs to be completed prior to the
implementation of ERP or even before thinking about bringing Erp into the
organization. The plans of the organization must be clearly charted out
and how it intends to benefit from Erp operations have to be looked from a
broader context.

30

Important Points in the discussion

This discussion should include important element namely financial issues.
Besides it should also account for the potential threats, strengths and
weakness. How much profit will be incurred have to be discussed and
substantiated? Other non monetary benefits should also find a place.
These studies should involve the contribution of the entire group in the
organization right from the person in the highest hierarchy to the one in
the lowest level. The contribution should be validated and sharpened by
means of presentations which will help everybody to get insight of the
different perspectives, and views. All of them will be helpful in
implementation of ERP.
The cost factor and compensation
ERP will definitely yield the required monetary benefits to organizations
whether they have the practice of built in systems or individual practices. If
we are to calculate the costs involved in preserving and building them over
a period of time it will be evident that the ERP costs incurred to support
and facilitate the said functions will be comparatively less.
This calculation will prove to be equally true even if we take the case of
individual department for that matter. Another important point in this issue
is that it has to align with the target goals of the organization (the purpose
for which it is sought and justified) as organizations generally tend to go
far ERP with a view to improve or increase the efficiency of a particular
section /dept and the whole process in general. Similarly the costs
incurred to facilitate that particular function must not be monetarily
pinching on the organization and even if they are the benefits and profits
from that particular department or the whole organization preferably
should exceed the exorbitant costs. Everything has to be calculated on the
basis of the chosen ERP software systems
Committee to look after ERP process
Analysis and criticism will go a long way in deciding the fate of the ERP
product. They are alone not enough. The next process would be the
services of the team who can decide everything concrete with regards to
ERP. The required powers are to be delegated to them. They will do the
screening of the potential vendor based on the organizational needs that
have been classified and discussed earlier. This will be helpful in
implementation of ERP.

31

4.2 ERP Gap Analysis

What is the Necessity for ERP Gap Analysis and how is it done?
Why Gap Analysis?
Gap analysis is an important step in ERP implementation. ERP is meant
to integrate the data of all the departments in a company under one
common platform. This calls for a radical change in the system of the
company's functioning.
The organization can either drop the idea of implementing ERP or choose
to go by it. Such a decision can be arrived only by comparing with
parameters like the reaction of their customers. The organization can go
ahead with ERP by modifying the software to suit their needs but as
earlier discussed it leads to other complications and dilutes the working of
erp.If the company decides not to go about in searching for another
alternative arrangement. On the other hand if the company wants to go for
ERP it will stick on to ways and means for implementing ERP. In order to
help the company arrive at a proper decision in such unwary
circumstances GAP analysis is advocated and followed. Gap analysis
basically identifies analyses and as well suggests a sequence of steps to
be followed after taking into account "What ought to be "and "what actually
exists". It provides to overcome /bridge the gap. Above all it is aimed at
improving the commercial viability. The process is aimed at facilitating
ERP function so that the benefit of ERP is received in full.
Steps in a Gap Analysis

The primary step will be to make a note of the existing business

system and list out the flaws and positive aspects. This is an
attempt to have an idea of what is currently happening given the
scenario in question so as to help in ERP implementation.

Evaluate and decide the additions that need to be made to the

business in view of ERP implementation. The aim is to make sure
that there is not even a thin line of difference between ERP and the
organizations commercial activities. It will be oriented to ERP
function.

Rating the existing level of performance to set a benchmark or

standards for the business as on date. This will help in finding out
the benefit of ERP.

Having an in-depth study of the regulations and statements in the

organizations and suggesting modifications. This also will decide
ERP implementation.

32

Clearly defining the roles of individuals in the organization so that

the priorities are met and the structure remains undisturbed. This is
to make things clear for ERP function.

Checking if the objective in discharging duties are met because it is

the ultimate solution to any issue. If they are not met the gaps
should be made known and corrected. Only then the organization
can achieve the benefit of ERP.

Ensuring that functions are executed properly and if need be

personnel can be rewarded to boost up and encourage
performance.

Similarly comparisons are to be made for every other factor that

draws relation in one way or other. These results are to be
complied for ERP gap analysis.

The gap analysis takes into account all the factors of study and
gives the results. It either recommends the implementation of an
ERP system or rejects the idea in totality.

This whole process takes about 90-120 days depending on the

complexities and technicalities involved. Gap analysis requires the proper
understanding of the firm and the ERP product in question. The analysis
should fully focus on how the business process and software can be
mutually beneficial to one another. GAP analysis becomes instrumental in
deciding ERP implementation, so as Business Process Reengineering
4.3 Factors influencing ERP price
ERP cost is an important issue that companies look forward while deciding
on ERP. ERP calls for a voluminous investment. By and large this step is
not a cakewalk for any company.
It is not possible to give a comprehensive price structure for all companies
implementing ERP.ERP pricing varies even among companies based on
requirement, facilities, size and nature of the business and so on. Above
all it is dependent on that particular factor which the company banks on or
in other words the root cause for the company to decide on ERP. ERP
implementation cost is not the only cost to the company.
Some of the well known factors which influence the cost of ERP
software product are as follows:
Execution of ERP
This term will include all the exercises from business process engineering
to gap analysis to actual restructuring and training. Above all this the
33

process of modifying and transferring data and systems from the old form
to new form is another costly affair. The manpower and time spent may
also be taken into account to know the non-monetary costs precisely.
The company needs to calculate this though not for accounting purposes
as it will help be estimate the Regular work that was not carried during the
regular course of business (due to ERP intervention (some even call it as
interruption?!).Again these costs are solely dependent on the company's
workings.
If the company engages the services of an ERP consultant then the costs
will be quite different, if it goes ahead with the process with the help of Inhouse IT staff (which is not encouraged during the initial stages).These
alone don't constitute ERP implementation cost. A host of other charges
will be included in ERP implementing cost.
Consultation by ERP Expert
These factors also influence ERP cost to a considerable extent. The
professional charges payable to the outsider also depends on the extent
of the services availed by the company.
If the company is restricts his service merely to training and
implementation the fees will be different from seeking his expertise for the
entire process which includes staying with the company to rectify practical
difficulties after implementation, conducting refresher programs and so on.
This is important component of ERP implementation cost. However this is
not the only issue in ERP implementing cost.
Training
This is also a crucial determinant of ERP costs. There are two modes of
training offered in companies. Companies hire trainers to update their IT
staff on the nitty gritty of ERP. They in turn train the user to get
acclimatized to ERP's functioning. This method has lot of drawbacks but
still many companies go for it not only because of the comparative low
costs but doing away with the need to train everyone in the company. In
spite of the drawbacks this method has claimed relative success in some
companies.
The other methods is training the users and the IT staff as well .In this
method the IT staff will be trained on technical parameters while the users
34

will be trained on usage. But for the exorbitant costs this method is highly
successful. ERP implementing cost is very important. Similarly if the
company wants to seek the trainers service only for particular facets if it
believes that the pool of In-house It staff are competent to handle other
areas, then ERP costs will be different.
4.4 Return on investments for ERP
This article can form the basis for a research namely "ERP Industry
paper". The intervention of ERP has resulted in lot of discussions among
IT professionals, employees, and market and so on.
Some of the instructions that have to be followed to ensure adequate
Return on Investments are given below:
Working out the Myths of ERP in the Initial stage
The question of Erg's ROI remains a puzzle to companies who are
experiencing difficulties even in implementing it. There is a simple and
straight answer to the question of ROI on ERP. Companies can definitely
be assured of ROI from ERP if they properly follow the procedures and
implement
the
right
practices.
This is often well said than done. One common blunder committed by the
company is following the age old methodologies and thereby the ERP
process will not add any value to the company and business process. The
difficulty in implementation process makes them think it ids difficult to
embrace ERP and the returns will not be guaranteed. This mindset is not
true and hence companies have to work more as the process deepens
and not vice versa, in order to achieve optimum benefits from ERP.
Otherwise the operations done by ERPROI calculator will not be true.
Even using ERPROI tools will serve no purpose.
Proper Implementation and Finance
There implementation process should take place in a smooth manner and
in accordance with the set standards .There should be no compromise or
controversy in the funds allocated. One mistake which is normally done by
companies is that they tend to cut down the expenditures on some areas
in order to be monetarily benefited.
However the fact is that it will affect the company in the long run unless
the step is meant to change the decision like partial implementation
(provided it is supported by some logical reasons. While talking about the

35

implementation process it is important to ensure that it confirms with the

standards and as per the instruction of the vendor/ERP consultant.
Strict Adherence to Changes
Many of ERP's welfare measures are visible to the naked eye. However
there are some elements that are unseen but still impact the organization
in a large manner. These elements make the company to assume that
ERP is not worth the money and hence they even go to the extent of
violating/discarding it halfway and not following the changes that were
arrived after a long suggestion and deliberate planning. They will defeat
the very objective of ERP ROI .There will be no use even in disgruntling
on ERPROI tools.
4.5 Challenges faced by ERP
Organizations face lot of challenges right from choosing ERP vendor. It
was really a hilarious task to convince them on regarding implementing
ERP. ERP failures that arose in an organization were never analyzed or
studied.
Lot of excuses were given on the failure of ERP like the organization was
not yet well equipped to accept ERP, there was deficiency in service on
the part of vendor and so on. All this only led to skirmishes within the
organization and outside. The services of an ERP consultant was not
suffice to overcome these drawbacks of Enterprise resource planning
action.
Full fledged and Partial ERP
One basic problem with companies is that they go for ERP at a stretch.
This might be one potential reason in the case of backfiring. The
requirements of each organizations are entirely different .It is not
advisable to go for fullfledged ERP unless it is required by the
organization. Since ERP requires large investment in terms of Money and
time the resources spent will not be justifiable unless they are optimally
utilized. Partial ERP does not denote partial implementation of ERP but it
indicates the implementation of ERP to perform the required function and
role exclusively. Again size is not the deciding factor. It totally depends on
the nature of business, scope of operations and similar details. ERP is
definitely a flexible application however it is difficult to infuse this element
of partial and need based functions and it still remains a major challenge.
The company can even avail the services of an ERP consultant to decide
on Enterprise resource planning action

36

Surplus commodities in production

When ERP is used in the manufacturing one common problem that strikes
any user is the question of how to properly manage surplus commodities?
Infact ERP can regulate and monitor all resources and production factors.
The whole organization should work on this aspect failing which ERP will
not yield the necessary results. This poses to be another challenge to
ERP since each member/department have their own interest and plan of
action while working with ERP .This common objective of managing the
surplus will not work out without proper coordination no matter how best
the product is supplied by the ERP vendor.
Problem of sudden transformation
Unlike MRP which manages the surplus goods slowly and steadily ERP
operates very swiftly on them. This transformation is unlikely to be
received by the organization positively .Even persons in the managerial
cadre will not be receptive. The reason is that it demands tremendous
work load at the beginning though the fact remains that it will be much
lesser than MRP after further progress .At this stage the challenge lies in
bringing about an attitudinal change in the entire organization to match
with ERP's Speed. An ERP consultant will help to guide the company
properly in these areas along with enterprise resource planning action.
Equipping as a result of the transformation
It is not enough if one brings about an attitudinal change. certain changes
in the organization structure is also desired .The greatest challenge now
lies in restructuring the midway of ERP operations without affecting Erg's
functioning.
Meeting future needs
Organizations have started to prefer an ERP system that meets the future
needs. This can be a challenge to ERP as well because the visualization
and expectations in companies may not always turn to be true. The
quotation made to the ERP vendor has to be prepared only after keeping
all these details in mind.
Steps to be taken into account for the performance ERP
Enterprise Resource planning ERP definition is not a technical aspect.
Enterprise resource planning is a huge investment on the part of

37

company. Therefore it is necessary to ensure the accountability of the

ERP vendor.
An understanding of ERP and language is must to follow ERP best
practices. The ERP vendor cannot be blamed if the company does not
follow the procedures correctly. On the contrary when his services are not
up to the industry standards he has to be held responsible. But how to
compute the services is another big question.
Some of the steps that can be taken to compute are as underneath:
Preparations
The company should have a scale for evaluation right from the beginning
stage. 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 the
vendor has given the necessary supporting services to the company in the
process of implementation installation training and relevant areas. This is
very important because it forms the foundation for the ERP process in the
company. One needs to be clear about ERP best practices for this.
Evaluating the work
This step concentrates on the core function. The company must
periodically make a note of the work done. Any discrepancies will be
brought to the vendor's notice immediately. The vendor should extend his
full fledged cooperation in making sure that the work gets done as
promised. Then only it is possible to scale ERP best practices.
Incase there are some inherent errors or technical flaws in the company
the ERP vendor can advise or suggest the company on how things are to
be done. This step by and large helps the company to find out if the
vendor stands up to the promise in terms of delivery. Understanding of
ERP and language is a must.
Calculating ROI
ROI helps to directly account the performance of ERP software programs.
In simple terms ROI calculates the returns from ERP software programs.
When the returns are high or at least meets the expected and industry
standards the performance of ERP software can be rated as "promising".
The ROI on ERP will not be merely achieved by ERP implementation. The
returns will be achieved only if the procedures are followed properly. But if
38

the software fails to deliver the required results even after following the
correct practices it shows lacuna on the part of ERP software. This will
affect the rate of ROI as well.
Following contracts terms
The performance of ERP software can be gauged on the basis of its
working in relation to the terms of contract. ERP software that accords to
contractual terms in relation to working definitely indicates better
performance than vice versa.
Customizing ERP Software
Customizing is an integral part of ERP solutions. This is a crucial decision
which needs to be taken by the organization as it is detrimental in ERP'S
success. The rate of customization is directly proportional to ERP
success.
Customization tends to pose a challenge to time and the funds allocated.
The challenge of a successful management lies in balancing them and
making both ends meet. It is a difficult task but the success speaks for the
process.
Burning Issues
The major issues that require attention in the process of customizing ERP
are strong knowledge about the current system and the likelihood of
innovations in ERP. These two issues have their own say in the process of
ERP customization. The process of customization will not take place
properly unless or otherwise there is a strong working knowledge about
ERP systems. Even if it does the rate of success won't be to that of the
desired or atleast required extent. The chances of innovation in ERP will
have a say on the customization of ERP because whatever modifications
are done now would not have any relevance if they are already covered in
the new systems. If the management addresses these two issues properly
then the chances of ERP's customization are pretty high which also
speaks for ERP'S success. A proper ERP solution can be provided by the
Right ERP company.
Features of ERP innovations
The innovations of new ERP applications help users to include all the
specific details in ERP system itself. This means they don't have to input
these details into the ERP systems every time they login. This also implies

39

that the operators need not recompile ERP softwares as and when there
is a change in the attributes or methodology of data fed. Customization
has also helped the users to act independently rather than depending on
the vendors whenever a modification is required. The innovations in New
ERP systems have made it so userfriendly that the customers go to the
extent of modifying the systems to perform functions exclusive to the
organization. ERP solutions are now handier to customize than ever. ERP
company offers numerous and flexible ERP solution.
Sound knowledge about ERP System
The features be it old or new or modern or traditional will not be of any use
unless the users are aware of the ERP Systems features and modalities.
This knowledge has to be imparted to the end users apart from IT
personnel. They should have a clear knowledge about the entire system in
finger tips. If questioned or demanded they must be capable of bringing
that particular function into effect. The services of an expert ERP
consultant will come in handy for an organization to supply this information
to the user. The consultant will make a decision on the basis of the
organizational needs and system configuration. He will be a part of the
organization for quiet some time. This will also help him in know the
organization and people better. He will therefore be able to work easily.
Customization is an important part in implementation of ERP.ERP
Company can decide the proper ERP solution for the organization.
BPR
BPR is one of the fundamental steps undertaken prior to ERP
implementation. Business process reengineering analyses and suggests
the structural changes. This is regarded to be very important because it
helps in knowing how the organization should be customized inorder to
become ERPfriendly.
Change and BPR
BPR is inevitable not only for ERP but as far as any business process is
concerned. BPR becomes the first step in the process of ERP
implementation. Business process reengineering is taken to conduct
feasibility study and other restructuring exercises. Nothing can be done to
prevent change. The best way to manage change is to adopt it.
Time and again it has been proved that imposing change of any
magnitude all on a sudden is not the proper way. There needs to be a
proper method to bring about it. Business process reengineering is one

40

scientific study that helps organizations largely to analyse the viability of

not only ERP but any other dynamic change. BPR ERP is interrelated.
4.6 BPR and ERP
BPR does not necessarily stop with the process of identifying the
possibility. It also suggests a series of steps that needs to be executed, for
ERP to find a place in the organization. BPR is the first step that comes
prior
to
ERP
implementation.
The reason is simple. Many parameters are taken while preparing ERP.
This includes the assumption of Predefined functions. Hence ERP
software will be preconceived to perform those set of functions. On the
other hand companies expect ERP to function in such a way that it
coincides with the regular business process. BPR ERP can be the biggest
challenge for the vendor and the company as such. BPR ERP forms an
important part of ERP study.
Solving BPR ERP Clash
There are two alternatives that will help the companies to combat this
menace. The company can either restructure the business process itself
or customize the ERP system so that it suits the business process.
Deciding this is paramount to ERP implementation. BPRERP has lot of
conflicts. The pros and cons of each of them are explained in the following
paragraphs:
Implementing ERP Software to Suit Business Needs
When the company demands a particular ERPsoftware they have to make
compromises on the budget because reworking modules and supplying an
ERP Software would definitely be a costly affair. This is because of the
complications involved in doing the same.
Apart from finance this also calls for persons with greater working
knowledge to design the systems. This means the process is not going to
be unambiguous.he process will also require frequent updations. This is
going to be difficult taking into account the several changes that has
already been inflicted on the system to make it business friendly.
Restructuring the business process to be ERP Friendly:
This method also requires lots of monetary outlay because of the major
change in business process.

41

The customers will not be receptive to changes in business process. It is

possible to train the employees but whereas in the case of customers they
cannot be expected to stay in tune in tune with the whims and fancies of
the organization.
It is possible to train the employees. The likelihood of them to adapting to
the change at the immediate outset is very much limited. This will cast a
spell on the revenue of the business and unless ERP does not make it
good in the later days the voluminous investment cannot be justified.

42

Chapter 5
ANALYSIS AND INTERPRETATION OF THE DATA

43

4. ANALYSIS AND INTERPRETATION OF THE DATA

STATISTICAL TEST CONDUCTED
4.1 Test for randomness
H 0 :Data is random. ie ,The functions performed by the existing system of
the concerned company are efficient.
H 1 : Data is not random ie, The functions performed by the existing
system of the concerned company are inefficient.
MARK DISTRIBUTION AND EVALUVATION
Take each question, each option in the four alternatives carries marks
according to the question given.

Result

1-------------------2--------------------3---------------------------4
4-------------------3--------------------2---------------------------1

Depending on the answers given by each respondents we calculate the

marks for each questionnaire and conducting a test for randomness.
5.1 SURVEY TABLE
The survey done on the 30 respondents are shown below. Marks given
by each of them for each questions are shown in the table Figure 1.

44

Ques Ques Ques Ques Ques Ques Ques Ques Ques Ques Ques Ques
Respondent 1

10

11

12

14

15

TO

20

22

22

21

22

25

21

20

23

10

27

11

28

12

26

13

26

14

21

15

22

16

23

17

25

18

22

19

21

20

21

21

20

22

25

23

20

24

25

25

22

26

24

27

22

28

21

29

29

30

27

45

U=no of runs
E(u)=(n+2)/2
V(u)=[n/4*((n-2)/(n-1))]
Z=[(u-E(u))/Sq V(u)]
The values are calculated as follows
The middle most value is taken as 26.so for calculating U,we have to
consider the bench mark as 26 .Those values which comes under 26 are
given sign and which comes above 26 are given + sign .Since there are
30 respondents we have to take 30 numbers.

1 2

10

11

12

13

14

15

16

17

46

18 19

20

21

22

23

24

25

26

28

29

30

So U=5
E(u)= (n+2)/2
n=28 since two values are 26 in the case of the respondents we cannot
consider those two.
E(u)=(28+2)/2=30/2=15

V(u)=[n/4*((n-2)/(n-1))]
V(u)=[(28/4)*((28-2)/(28-1))]=6.74
Z=[(u-E(u))/Sq V(u)]
Z=[(5-15)/Sq 6.74]=(-10)/2.6=-3.85
Mode Z=3.85

47

For level of significance 5% , the table value is 1.96

Since mode Z value is more than 1.96 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.
Hence my next step in research involves ,coming out with an efficient
variant that would fulfill the current requirements of the organization.
5.2 DESIGN OF THE ENHANCED SYSTEM
INTRODUCTION
The proposed ERP is supposed to solve the entire drawback with the
Existing System. Right from the problems faced by the company for
purchasing the material from vendors to the sale of the finished products.
By implementing this the entire organization is considered as a system

48

and all the departments are its subsystems. The information about all the
aspects of the organization 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. Each 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.
For 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.

5.3 SYSTEM ANALYSIS

INTRODUCTION
A 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. A procedure is a
precise series of step-by-step instruction that explain.

What is to be done?

Who will be doing it?

When it will be done?

How it will be done?

The system analysis is the process of analyzing 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

49

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. A decision point in a system at which some
people are automobile mechanism must react to input data and make a
decision.

5.4 NEED FOR THE PROPOSED SYSTEM

This project work can be taken as an attempt to treat the
organization as a single entity and caters to the information needs of the
whole organization. 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.

Hence the following objectives are laid for the proposed system, which
tends to avoid the disadvantages and improve effectiveness efficiency.

Accuracy
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.

50

Report Generation
Preparation of reports is very fast and ready when they are needed.
Moreover the report generation depends on various criteria.

Secondary Storage
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.
Less Storage

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.

Man Power System

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.

51

The main reasons for carrying out the proposed system is

Reduce 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 end-user

satisfaction. It also makes the system more user friendly, thus saving the
time.These are to be found for designing a complete computerized system
for the management.
EXISTING SYSTEM

In the existing system they work on FOXPRO,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.
Multiple 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. Whenever 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.

52

The existing system is maintaining all the operations manually. This

is time consuming causing a lot of mishaps.

DRAWBACKS OF EXISTING SYSTEM

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. Also 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.

Delay in preparing the reports and comparison studies.

No scrape management facility available in the current system,

which is a must in this case.

No proper supplier and customer information, which is a must to get

business on right time.
Even 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.

5.5 PROPOSED SYSTEM

The proposed ERP is supposed to solve the entire drawback with

the Existing System. Right from the problems faced by the company for

53

purchasing the material from vendors to the sale of the finished products.
By implementing this the entire organization is considered as a system
and all the departments are its subsystems. The information about all the
aspects of the organization 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. Each 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 ERP

Registration
Login
Company Details.
Customer Details
Supplier Details
Item
Product
Bill Of Material
Purchase And Planning
Supplier Purchase Order(Purchase Order Out)
Security
Goods Receipt Note(GRN)
Goods Acceptance Note(GAN)
Rejection Return Note(RRN)
Delivery Challan(DC)
Enquiry /Quotation Details.
Customer Purchase Order (Purchase Order In)
Order acceptance
Material request note
54

 Material issue note

ADVANTAGES OF PROPOSED SYSTEM

In the package of ERP every attempt has been made to satisfy
the requirements of the organization. With the necessary study of the
requirements of system, the software has been developed in such a way
that it provides for user-friendliness as well as an ease of use. The major
advancements, which the systems offer are.
Fast Accessing of data.
Easy Communication Process.

Reduced Man Power.

Details regarding Vendors detail informations 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.

All the modules are integrated.
Restricted Access to Application by role & privileges.
Data Protection by Backup and Restore utilities.
User defined structure for Transaction Numbers.
Application level Security with user-id and password.

55

5.6 FEASIBILITY STUDY

After 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. Based on this the feasibility of the
proposed system can be evaluated in terms of four major categories.
Organizational Feasibility
This analysis aims at determining whether the proposed system will
support the organizations strategic plans.
Economic Feasibility
The computerization of the system will certainly result in economic
gains for the organization as compared to the cost incurred in the
computerization 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.
Technical Feasibility

The computerized system has minimum hardware requirements.

The system is to be in a single user Windows environment and can easily
operate on a high end PC with minimum of peripherals that include a
56

mouse and printer beside the other primary I/O devices. These hardware
and software already exists with the organization.
Operational Feasibility

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 computerized system and is willing to change over to the new
system.
From the data collected in the feasibility analysis it was concluded
that the development of the proposed system would be very advisable and
implementation of the new computerized system would be in the best
interest of the organization.
5.7 REQUIREMENT SPECIFICATION
Requirement specification is a software engineering tasks that
bridges the gap between level software allocation and software design.
Requirement analysis enables the software engineer to specify software
function and performance and establish design constraints that the
software must meet.

Requirement 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. Requirement analysis
provides the software engineer with a representation of information and
function that can be translated to data, architectural and procedural
designs. Finally, the requirement analysis provides the developer and the
customer with the means to access the quality once the software is bui

57

HARDWARE SPECIFICATION
Processor

Mother Board

Intel Pentium IV 1.7 GHZ

:

845glly Intel

RAM

256 MB

Disk Drive

1.44 MB

CD-ROM Drive

52x Creative Drive

Hard Disk

40 GB

Monitor

15 LG

Keyboard

Samsung 104 keys

Mouse

Mercury

Printer

Cannon Inkjet

SOFTWARE SPECIFICATION
Operating System :

Window 2000 Server

Front End

J2EE

Back End

MS-SQL Server

Documentation

MS Word 2000

58

Introduction to JAVA
Java Overview
Java is powerful but lean object oriented language. Java builds on the
strength of C++. It has taken the best features of C++ and discarded the
problematic error prone parts. To this lean core it has added garbage
collection (automatic memory management), multithreading (capacity of
one program to do more than one thing at a time) and security capabilities.
The result is that Java is a simple, elegant, powerful and easy to use.
Java is Extensible
A big plus for Java is the fact that it can be extended. The JDBC API, the
Java.sql package is one of the foundations upon which extensions are
being added or worked on in area such as multimedia, conferencing and
telephony.
Java is Secure
It is important that a programmer not be able to write subversions code for
applications or applets. This is especially true with Internet being used
more and more extensively for services such as electronic commerce and
electronic distribution of software and multithreading
Java is Multithreaded
Multithreading is the ability of a program to do more, than one thing at a
time. For example, an application can fax a document and at the same
time print another document.
Java is Portable
With different systems connected to the internet, one need to have some
means of generating portable executable code for programs to be

59

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

internet. Javas solution to there problems is both elegant and efficient
Java Packages and Classes used
Packages
Java.io package
Java.io package provides system input and output through data streams,
serialization and the file system. Data is retrieved from input stream and
results of the program are sent to output stream.
Java. math package
Java.math package provides classes for performing arbitrary-precision
integer arithmetic (BigInteger) and arbitrary-precision decimal arithmetic
(BigDecimal).
Java.util package
Java.util package contains the collections framework, legacy collection
classes, event model, date and time facilities, internationalization, and
miscellaneous utility tokenizer, a random-number generator, and a bit
array).

Classes
Vector
The Vector class implements a growable array of objects. Like an array, it
contains components that can be accessed using an integer index.
However, the size of a Vector can grow or shrink as needed to
accommodate adding and removing items after the Vector has been
created.

60

Each vector tries to optimize storage management by maintaining a

capacity and a capacityIncrement. The capacity is always at least as large
as the vector size; it is usually larger because as components are added
to the vector, the vector's storage increases in chunks the size of
capacityIncrement. An application can increase the capacity of a vector
before inserting a large number of components; this reduces the amount
of incremental reallocation.
LinkedList
Linked list implementation of the List interface. It implements all optional
list operations, and permits all elements (including null). In addition to
implementing the List interface, the LinkedList 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 double-ended queue (deque).
All of the stack/queue/deque operations could be easily recast in terms of
the standard list operations. They're included here primarily for
convenience, though they may run slightly faster than the equivalent List
operations.
StringTokenizer
The StringTokenizer class allows an application to break a string into
tokens. The tokenization method is much simpler than the one used by the
StreamTokenizer class. The StringTokenizer methods do not distinguish
among identifiers, numbers, and quoted strings, nor do they recognize and
skip comments.

61

The set of delimiters (the characters that separate tokens) may be

specified either at creation time or on a per-token basis. Constructor used
is StringTokenizer(string);
File Output Stream
A file output stream is an output stream for writing data to a File or to a
FileDescriptor. What files are available or may be created depends on the
host environment. Constructor used is FileOutputStream(filename);
File Input Stream
A FileInputStream obtains input bytes from a file in a file system. What
files are available depends on the host environment. Constructor used is
FileInputStream(filename)
5.8 SYSTEM DESIGN
Design Techniques
Designing the systems involves for different aspects
Input Design
Output Design
Screen Design
File Design
Database Design
Architecture design

An 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.
INPUT DESIGN

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 inspecting the computer to read data from
a written or printed document or it can occur by having people keying the
data directly into the system. The design of input focuses on controlling
the amount of input required, controlling errors, avoiding delay, avoiding
extra steps and keeping the process simple.
The system needs the data regarding the purchase, sales, supplier
and vendors for various validation, checking, calculation and report
generation. The supplier and vendor details such as their code, name are
selected from combo box provided by the front-end tool.

This facility

allows the operator to have a direct selection from the combo box and can
avoid errors while entering them.

The error raising method is also

included in the software, which helps to raise error message while wrong

entry of input is done.

So in input design the following thing are

considered.

What type of data to be given as input?

How the data should be arranged or coded?

Which medium to use.

The dialogue to guide the operating personnel in providing input.

Method for preparing input validations and steps to follow when

error occur.
Data item and transaction needing validation to detect errors.
OUTPUT DESIGN

Computer output is the most important hand direct information source to

the user. Output design is a process that involves designing necessary
outputs in the form of reports that should be given to the users according
to the requirements. Efficient in decision-making. Since the reports are
directing referred by the management for taking decisions and to draw
conclusions they must be designed with almost care and the details in the
reports must simple, description and clear to the user. So while designing
output the following things are to be considered.

Determine what information to present.

Arrange the presentation of information in an acceptable format.

Describe how to distribute the output to intended receipts.

Desired whether to display, print,speak, the information and select

the output medium.

Arrange the present of information acceptable format.

Depending on the nature and future use of output required, they

can be displayed on the monitor for immediate need and for obtaining the
hardcopy.
SCREEN DESIGN

Screen design begins with recognition that the screen is composed

of different areas. Layout tools assist the analyst in specifying the content
of the single and multiple. Design formats. All screens have been provided
with menus pushbuttons icons and control buttons such as add/delete/
edit/find/clear/ exit etc. the main screen consists of main menu from which
we can move o another forms or screens. In designing output screens we
need area for

Heading and titles

The content of display

Message and instruction

Some times explanations for informations in the reports.

FILE DESIGN
The design of files includes decision abut the nature and content of
the file itself such as whether it is to be used for storing transaction details,
historical data, or reference information. Among the decision made during
file designed are the following

Which data items include in a record format within the file.

Length of each record, based on characteristics of the data item on

which it is
based

The sequence or management of each record within the file.

Not all the new information system application requires the design of all
files used by the application. For example, some master file may already
exist because they are used in other existing application. a new
application may need to reference only the existing master file. In this
instance, the details of the files are included in the application design
specification, but the file itself is not designed.

DATABASE DESIGN

Database files are the key source of information into the system. it
is the process of designing database files, which are the key source of
information to the system the files should be properly designed and
planned for collection, accumulation, editing the required information. The
objectives of the files design are to provide effective auxiliary storage and
to contribute to the over all efficiency of the computer program component
of the system.
It is the centralized store of information. Database should
provide rapid retrieval of accurate and relevant information. A database is
a collection of interrelated data stored with controlled redundancy, to serve
one or ore applications. The most basic piece of data that cannot be
broken into more detailed unit is called data item or data element, or field.
The primary activity during the data design is to select logical

representations of data objects identified during the requirements

definition and specification phase.
Database design is the process of developing database structure to
hold data to cater to user requirements. The final design must satisfy user
needs in terms of completeness, integrity, performance and other factors.

Terms used in Database

Table
A table is a logical structure used to group a set of relevant information.
The proposed system contains several tables such as IPADMISSION.
Field
A field is an attribute of a record. For each field there is one and only one
entry.
Record
A record is a grouping of a set if attributes describing each person,
place or item in database. For example, in the IPMASTER table for each
entry there is one and only one record.
Primary key
Primary key is a key that uniquely identifies a record. This is
accomplished by assigning a unique id or number to each record, which is
called the primary key. Records are stored based on the primary key.
Foreign key
Foreign keys are fields in common between tables.

Indexes
Access to a database record is often made faster through the use
of an index assigned to fields other than the primary key field.
Queries
Queries are questions asked of database. In Visual Basic, an
English like language named Structured Query Language (SQL) is used to
retrieve data from a database.

NORMALIZATION
Normalization is an important stage of any system design. Before
system is designed details about the existing computerized system and
the manual system are collected. The database is designed in such a way
that data are stored without unnecessary redundancy to allow the retrieval
of information easily.

Normalization is a technique of separating redundant fields and

breaking up a large table in tot a smaller one. All the tables have been
normalized up to the third normal form. In short the rules for each of three
normal forms are as below.
FIRST NORMAL FORM
A relation is said to be in 1 NF if all the underlying domain of
attributes contain simple indivisible values.

In the first stage of normalization the table must have

a primary

key (not null and the value must be unique.)

The table must not contain any repeating group

(duplication must

strictly be avoided)

SECOND NORMAL FORM

A relation is said to be in 2NF if and only if it is in 1NF and every
non-key attribute is fully functionally dependent on candidate key of the
table.
The 2NF are based on the concept of full functional dependency.
The table must be in first normal form.

All non key attributes must be functionally dependent on

the primary.

THIRD NORMAL FORM

The 3 NF is based on the concept of transitive dependency. A
relation in 2NF is said to be in 3NF if every non-key attribute is
nontrnsitively dependent on the primary key.
The table should follow the details of first and second normal form.
The table must be of first and second normal form. All non-key attributes
are non-transitively dependent on the primary key (all non-key attribute
must be solely dependant on the primary key).
Selecting Software and Hardware
Many times when information system is under development, the
computer system, workstations, and communication apparatus on which it
will run are already in place the organization. in these constants, the entire

focus of the development effort is on fitting

the application to the

characteristics of the computer system.

However when new computer equipment is needed, the selection

and acquisition becomes an additional dimension of the new system
activity. Specification for the system must be formulated, proposals from
vendors received and reviewed, and selection made. The decision will
focus on acquisition, operating and maintain cost, speed and capacity,
and processing communication features.
Similar concerns are raised when the pre return computer software
must be acquired. Selecting computer software involves evaluating the
features of each package and choosing between purchasing and leasing
the software.
ARCHITECTURE DESIGN
The architecture we are using here is MVC architecture.
What is MVC?
MVC is an acronym for Model View Controller.It represents a software
design pattern developed at Xerox PARC in 1978.It explains a method of
separating the visual, interaction and data components.It is Very popular,
used extensively in Java and other languages.
Why we use MVC?

Makes it very easy to have multiple different displays of the

same information.

For example: a graph and a table could both display and edit
the same data.

Essentially provides greater control over the UI and its

behaviour.

Participants & Responsibilities

The MVC architecture has its roots in Smalltalk, where it was originally
applied to map the traditional input, processing, and output tasks to the
graphical user interaction model. However, it is straightforward to map
these concepts into the domain of multi-tier enterprise applications.

Model - The model represents enterprise data and the business

rules that govern access to and updates of this data. Often the
model serves as a software approximation to a real-world process,
so simple real-world modeling techniques apply when defining the
model.

View -The view renders the contents of a model. It accesses

enterprise data through the model and specifies how that data
should be presented. It is the view's responsibility to maintain
consistency in its presentation when the model changes. This can
be achieved by using a push model, where the view registers itself
with the model for change notifications, or a pull model, where the
view is responsible for calling the model when it needs to retrieve
the most current data.

Controller - The controller translates interactions with the view into

actions to be performed by the model. In a stand-alone GUI client,
user interactions could be button clicks or menu selections,
whereas in a Web application, they appear as GET and POST
HTTP requests. The actions performed by the model include
activating business processes or changing the state of the model.

Based on the user interactions and the outcome of the model

actions, the controller responds by selecting an appropriate view.

Structure
The following diagram represents the Model-View-Controller pattern:

DATA FLOW DIAGRAM

A DFD is a logical model of the system. The model does not
depend on hardware, software and data structures of file organization. It
tens to be easy for even non-technical users to understood and thus
servers as an excellent communication tool. DFD can be use to suggest
automatic boundaries for proposed system.

At a very high level, the entire system is shown as a single logical

process clearly identifying the sources and destination of data. This is
often referred to as zero level one DFD. Then the process is exploded into
major process and the same is depicted as level one DFD. This way
further explosion of processes into sub processes is carried it following top
down approach. Its corresponding level of DFD debits each level of
explosion. The lower level of DFDs is more detailed. The DFDs
pertaining to proposed system are presented in the next session.
5.9 SYSTEM IMPLEMENTATION
Implementation includes all activities that take place to convert
from the old system to the new. The old system consists of manual
operations, which are operated in a very different manner. The proposed
systems proper implementation is essential to provide a reliable system to
meet the requirements of the organizations. An improper installation may
affect the success of the computerized order processing computerized
system.
Implementation Methods

There are several methods for handling the implementation and

consists for changing from the old to the new computerized system. We
will discuss the methods for conversion and procedures used to ensure
that it is performed properly.

The most secure method for conversion from the old system to the
new system is to run the old and new system in parallel. In this approach,
a person may operate in the manual older processing system as well as

start operating the new computerized system. This method offers high
security.

Another commonly method is a direct cut over from the existing

manual system to the computerized system. The change may be with in a
week or a day. There are no parallel activities.however; there is no
remedy in case of a problem. This strategy requires careful planning.

A working version of the system can also be implemented in one

part of the organization and the personnel will be plotting the system and
changes can be made as and when required, but this method is less
preferable due to the loss of entirety of the system.

IMPLEMENTATION PLAN
The implementation plan includes a description of all the activities
that must occur to implement the new system and to put it into operation.
It identifies the personnel responsible for the activities and prepares a time
chart for implementing the system; the implementation plan consists of the
following steps.

List all files required for implementation.

Identify all data required to build new files during the
implementation.
List all new documents and procedures that go into the new
system.

The implementation plan should anticipate possible problems and

must be able to deal with them. The usual problems may be missing
documents; mixed data formats between current and new files, errors in
data transalation, missing data etc.

5.10 EDUCATIONS AND TRAINING

The implementation of the proposed system includes the training of
system operators. Training the system operators includes not only
instructions in how to use the equipment, but also in how to diagnose
malfunctions and in what steps to take when they occur. So proper
training should be provided to the system operations in the order
processing system. No training is complete without familiarizing users
with simple system maintenance activities. Since the proposed system is
developed in a GUI, training will be comparatively easy than system is
developed in a non-GUI. There are different types of training. We can
select off-site training to give depth knowledge to system operators.
The success of the order processing system depends on the way
in which it is operated and used. There fore the quality of the training
given for the operating personnel affects the successful implementation of
the system. The training must ensure that the personnel can hand all the
possible operations.trainig must include data entry personnel. They must
also be given training for the installation of new hardware, terminals, how
to power the system, how to power it down, how to detect the
malfunctions, how to solve problems etc. the operators must also be
provided with the knowledge of trouble shooting which involves the
determination of the cause of the problem.

The proposed system requires trained personnel for operating the

system. The data entry jobs must be done utmost carefully in order to
avoid errors. This will reduce the data entry errors considerably. It is
preferable to provide the personnel with the some kind of operating
manuals that will explain all the details of the sales order processing.

5.11 POST IMPLEMENTATION REVIEW

After the system is implemented, a review should be conducted to

determine whether the system is meeting expectations and where
improvements are needed. System quality, user confidence and operating
systems statistics are accessed through such technique event logging,
impact evaluation and attitude surveys. The review not only assesses how
well the proposed system is designed and implemented, but also is a
valuable source of information that can be applied to a critical evaluation
of the system.
The reviews are conducted by the operating personals as well as
the software developers in order to determine how well the system is
working, how it has been accepted and whether adjustments are needed
.the review of the system is highly essential to determine the future
enhancements required by the system. The system can be considered
successful only if information system has met it objectives. The review
analyses the opinion of the employees and identifies their attitudes
towards the new computerized system. Only when the merits and
demerits of the implemented system are known, we can determine what
are all additional features it requires.

5.12 SYSTEM TESTING

Testing is a critical aspect that is done to ensure that the software
works according to the requirements or the expectations. Testing is
process that is done with an intent to find error, which is yet undiscovered.
The basic goal of the software development process is to produce
software that has no errors soon after they are introduced. In an effort to
detect errors soon after they are introduced, each phase ends with a
verification activity such as review.
However most of these verification activities in the early phase of
software development are based on human evaluation and cannot detect
all the errors. This unreliability of the quality assurance activities in the
early part of the development cycle places a high responsibility on testing.
In other words, as testing is the last phase before the final software is
delivered, it has the enormous responsibility of detecting any type of error
that may be in the software.
All these factors mean that testing cannot be done on the fly, as is
often done by programmers. It has to be carefully planned and the plan
has to be properly executed. The testing process focuses on how testing
should proceed for a particular project.
UNIT TESTING
Unit testing is a dynamic method for verification, where the program
is actually compiled and executed. It is one of the most widely used
methods, and the coding phase is sometimes called the coding and unit

testing phase. As in other forms of testing, unit testing involves executing

the code with some test cases and then evaluating the results.
The goal of unit testing is to test modules or units not the entire
software system. Other levels of testing are used to test the system. The
programmer most often does unit testing. The programmer, after finishing
the coding of a module, tests it with some test data. The tested module is
then delivered for system integration and further testing.
The entire project is not tested here; the module is tested with the
sample inputs. The sample inputs must resemble the original data. So that
the reliability of the project can be verified. Since the sample data
resembles the original data, the efficiency of the project can be checked
out.
BLACK BOX TESTING
Black box testing is also known as behavioral testing and this
focuses on functional requirements of the software. The black box testing
enables the software engineer to derive sets of input condition that will
fully exercise all functional requirements for a program. Black box testing
is not an alternative to white box techniques. Rather, it is a complementary
approach that is likely to uncover a different class of errors than white box
methods.
In this project, the sample inputs like the patients details, the test
reports are given and it is tested to verify whether the coding performs well
and to find the errors in their internal structures, database etc.,
This testing attempts to find errors in the following categories

Incorrect or missing functions.

Interface errors.

Errors in data structures or external database access.

Behavior or performance errors.

Initialization and termination errors.

Black box testing concludes that the system takes input correctly as
specified and gives the required output.

WHITE BOX TESTING

White box testing is the test case design method that uses the
control structure of the procedural design to derive test cases. Using white
box testing methods, the software engineer can derive test cases that
guarantee all independent paths within a module have been exercised at
least once, exercise all logical decisions on their true and false sides,
exercise internal data structures to ensure their validity, exercise all loops
at their boundaries and within their operational bounds. This White box
testing is called as Glass box testing.
In this project, after the module is completed all the loops and the
validity are verified. All logical conditions are verified for both the true and
false conditions for validity.
VALIDATION TESTING

Software validation is achieved through a series of black box tests

that demonstrate conformity with requirements. A test plan outlines the

classes of tests to be conducted and a test procedure defines specific test

cases that will be used to demonstrate conformity with requirements. Both
the plan and procedure are designed to ensure that all functional
requirements are satisfied, all behavioral characteristics are achieved, all
performance requirements are attained, documentation is correct, and
human-engineered and other requirements are met.
After each validation test case has been conducted, one of two possible
conditions exists.
The function or performance characteristics conform to specification and
are accepted.

A deviation from specification is uncovered and a deficiency list is

created.

This validation testing is performed in the project to confirm the

execution of the module and to confirm whether all the testing, the
functions and the procedures are successfully executed and the
accurate result is got.

Chapter 6
FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS

6.1 FINDINGS

On the basis of the analysis of the questionnaire

The following are the major drawbacks of the existing system.

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.

No proper supplier and customer information, which is a must to get

business on right time

6.2 RECOMMENDATIONS

The logistics system can be improved by further studies

The finance module should be implemented with more efficiency.

The HR module can also be automated so that the recruitment

process will be made more easy.

The purchase order details are fed manually with the designed
system ,It can be scanned and be given as input.

The system should be made available for more users and other
branches of the company can also use this system.

The company should have a proper ERP team to rectify the

problems on a regular basis

6.3 CONCLUSIONS
Most companies treat ERPs as projects, with the assumption
that some day the projects will end. But an enterprise system is not a
project; its a way of life. No organization can say we were finished and
few ever will. There will always be new modules and versions to install,
acquire or divested business units to deal with and better fits to be
achieved between the business and the system. Even if an organization
could declare final victory on implementation of ERPs, many additional
years could be spend in getting real business value from them. However,
an organization can only get the maximum value of these inputs, if it
successfully adopts and effectively uses their system.
The hype and the mystical aura that surrounds ERP and the
articles and news items in the media, have made ERP the latest buzz
word. Hundreds of professionals want to join the ERP band wagon.
Clearly ERP is a hotter-than-hot field right now.

Chapter 7
ANNEXURE

7.1 BIBLIOGRAPHY

BOOKS
Alexis Leon , ERP Demystified ,ninth print 2004,
Tata Mac Graw hill Publishing company limited
Shelly & Cashman , System Analysis and Design, Fourth Edition
2000
Course Technology,a division of Thomson Learning.

7.2 References

S.C.Gupta , Fundamentals of statistics,Third edition 2000

Himalaya Publishing House.

Sherwin,Doudlas

s,

The

ethical

system,Harvard business review,1993.

Websites
www.erpfans.com
www.peoplesoftfans.com
www.dataworks.com
www.businessobjects.com
www.cognus.com

roots

of

the

business

7.3 QUESTIONNAIRE

1. Are you trained on your current system?

Proficiency level 0
Proficiency level 1
Proficiency level 2
Proficiency level 3
2. Are you able to work on the software comfortably?
Highly comfortable
Moderately comfortable
Moderately uncomfortable
Highly uncomfortable
3. Do you think you are saving your time by using your current
system?
To great extend
To some extend
It is a waste of time
Indifferent
4. Do you have a search engine in your system?
Yes
No
5. Are you able to retrieve your required information?
Very difficult
Difficult
Easy

Very easy

6. Are you able to produce the reports according to your requirements?

Very difficult
Difficult
Easy
Very easy
7. Is taking printouts possible in your system?
Very difficult
Difficult
Easy
Very easy
8. Is it possible for all of you all to access the system simultaneously?
Very difficult
Difficult
Easy
Very easy
9. Do you have scrap management facility?
Yes
No
10. Are you able to categorize all your products with the current
system?
Very difficult

Difficult
Easy
Very easy

11. Do you think efficient planning can be done with your existing
system?
To great extend
To some extend
It is a waste of time
Indifferent
12. Is your system user friendly?
To a great extend
To some extend
It is a waste of time
Not at all
13. Do you think that your system should be updated?
Yes
No
14. Do you think that a change in current technology will improve the
productivity of your work?
To a great extend
To some extend
It is a waste of time
Not at all
15. How you rate your system?

Excellent
Good
Average
Bad

7.4 Glossary
BPR business Process Reengineering
CIS - Corporate Information Systems
DSS - Support Systems
EIS - Executive Information Systems
ERP Enterprise Resource Planning
EWS - Enterprise Wide Systems
IIS - Integrated Information Systems
MIS - Management Information Systems
MRP - Material Resource Planning
MRP II - Manufacturing Resource Planning
MRP III - Money Resource Planning