MID-TERM PROJECT

ENTERPRISE RESOURCE PLANNING

Submitted by penta ‘A’ production

Group members.

Abdullah iqbal 132-04

Ahmad numan 132-71
Abdul manan 132-08
Anum faiz 132-63
Submitted to;
Sir; Muhammad Imran Taseer
Table of Contents.…………......................…………………………………………………………………………….…………....1
Acknowledgement:...................................................................................................................................... 2
Executive Summary: ................................................................................................................................... 3
Introduction of Company: ......................................................................................................................... 4
Vision: ...................................................................................................................................................... 5
Mission Statement:.................................................................................................................................. 5
Our Values:.............................................................................................................................................. 5
Team Management: ................................................................................................................................ 5
Product line: ............................................................................................................................................ 5
Major internal problems: ........................................................................................................................... 6
Need of ERP system: ................................................................................................................................... 7
Complete Roadmap Structure for ERP Implementation ........................................................................ 9
Strategic planning: ...................................................................................................................................... 9
Procedure Review: .................................................................................................................................... 12
Data Collection & clean-up: ..................................................................................................................... 14
Training & Testing: .................................................................................................................................. 17
Go live and evaluation: ............................................................................................................................. 19

1
Acknowledgement:
All praises are for Allah almighty that has bestowed upon human being the
crown of creation and has endowed him with knowledge and wisdom. After Allah, is the last
prophet Mohammed (SAW) who brought for us revelation and unlimited knowledge and civilized
the barbarian human being.
We have taken efforts in this project. However, it would not have been
possible without the kind support and help of many individuals. We would like to extend our
sincere thanks to all of them. We are highly grateful to our course instructor Prof. Imran Taseer
for their guidance and constant supervision as well as for providing necessary information
regarding the project & also for their support in completing the project. We would like to express
our appreciation towards our parents and group members for their kind co-operation and
encouragement which help us in completion of this project. We would like to express my special
gratitude and thanks to industry persons for giving us such attention and time, Mr. Arslan
Mehmood. Our thanks and appreciations also go to my colleague in developing the project and
people who have keenly helped me out with their abilities.

2
Executive Summary:
The aim of this project is to implementation of (ERP) system in a
manufacturing organization. We are the students of BBA-6, Management Sciences department,
Superior University, Lahore and we have prepared this report on implementation of ERP in
selected organization. We implemented ERP (assumed) in “Muslim Textile Mill private Ltd,
Faisalabad.” Established since 1984 as Private Limited Company, Muslim Textile manufacture
quality Yarn and Fabric, with the help of competent professional staff, a team of talented
merchandisers, excellent supplies & support services. We are 4 members how prepared this report.
The scope of doing that work was to give maximum benefits of automatic ERP software
implementation to organization. ERP will give company benefits of Increased Flexibility Resulting
into Cost Reduction, Improvement in Financial Management, Benefits on ROI, Better Alignment
of Strategies, and Improved Productivity.

3
Introduction of Company:
Muslim Textile mill was incorporated in 1984 as a private limited company Sheikh Mehmood
Nawaz who was the founder of Muslim Textile mill private limited and now Sheikh Arslan
Mehmood is the chief executive. Muslim textile has its own spinning, knitting, processing and
stitching units. It has about 1000 stitching machines of different brands. All credit of this success
goes to visionary personality of Mr. Arslan Mehmood. Who strive to lead in creating, developing
and manufacturing of high quality of yarn and fabric for the sake of responding to emerging trends
in the industry. They translate conceptual ideas of customers into reality and shape them through
technical bent and professional acumen. The team here strongly believes that Customer satisfaction
is the essence of business today. Muslim Textile mills has the technology with expertise, products
with knowledge and most importantly the right mindset to achieve total customer satisfaction. The
company has latest equipment and machinery to serve nationally. Manufactured quality yarn and
fabric including Jeans, Cotton, khaddy, Staple, and Lawn with the help of competent professional
staff, a team of talented merchandisers, excellent supplies & support services. They sell fabrics to
all provinces of Pakistan. The rationality of leadership has built management controls across the
fabric supply chain that helps to secure competitive material sourcing, controlling wastages, saving
consumptions, energies, and time that eventually results in cost efficiencies.

4
Vision:
"Our vision is of continual improvement and sustained growth, of a family of workers.
Who are given the best compensation benefits and working conditions in the region. In this respect,
Muslim textile continues to emphasize the need to invest in and develop its most precious resource
- its human capital. Muslim textile continues to provide training courses and self-enhancement
opportunities for all our workers".

Mission Statement:
“Our mission is to be a dynamic, profitable and growth oriented company by
providing good quality yarn and fabrics to its customers, a secured and friendly environment place
of work to its employees”

Our Values:
 Integrity.
 Commitment.
 Ownership.
 Team work.
 Innovation.

Team Management:
Muslim Textile employs talented merchandising, planning and production teams. The unique
feature of our company is the sense of ownership and responsibility that creeps down to machine
operator. The motivation for customer service and working for common goals results in
manufacture top quality yarn and fabrics.

Product line:
Major products are yarn and fabrics. But fabric are categorized to different types.
Such as
 Jeans
 Cotton
 Khaddy
 Staple and Lawn

5
Major internal problems:

There are many major internal problems indicate by us while we are doing survey there.

 There is no Integration exist between departments that causes too much difficulties such as
communication gap when any information have required about other department while work
creates too much barriers to contact other department person if he or she is busy that causes
delays in working process which is very destructive for company .
 Because of manually account keeping. There is monthly, quarterly, half yearly and yearly basis
closing all occurs so it is difficult for employees to tackle much burden of work. Human error
also exist.
 Specially, finance department is heavily needed of ERP system because of making daily basis
entries of transactions of four sites (such as) spinning knitting processing and stitching units.
 Too much problem creates in order taking when sales department have not accurate
information about time schedule.
 Poor inventory management because they do not have the right information about their stock.
 Do not have online current stock.

 Quality control issues.

6
Need of ERP system:
The search for an Enterprise ERP solution that falls in line with the unique demands of your
business might seem like an alarming intention. But over the years ERP solutions have become
more usage friendly, and in some cases easier to deploy. There’s no doubt that selecting the right
system can be a time consuming and even expensive process that requires thoughtful analysis and
planning. In the end, the goal is to make a decision that will sustain growth, allow a maximum
amount of flexibility and enable a business and its system to scale melodiously.

So what can you do to identify which system will serve as the best long term investment for your
company? Here are a few high level guidelines to direct you towards a well-informed decision.

 Aligning Business Goals and Vision:

There are a lot of options out there when it comes to enterprise ERP solutions, and in order to find
technology that meshes with your demands you’ll maybe have to ask yourself, and your potential
ERP partner, some tough questions. The importance of an enterprise project should be underscored
by relentless planning and analysis aimed at identifying inefficiencies that can be transformed into
a viable component of a growth strategy. That work should then be paired with a solution provider
that both understands your objectives and possesses the ability to capitalize on those expectations
based on the functionality of their platform.

 Key Expectations to gain from ERP:

Keeping your eye on the horizon is an important function of the planning process when it comes
to identifying the right solution. This means not only planning for the immediate demands of your
business, but also anticipating the demands of growth and what the competitive landscape may
look like six months, a year or five years from the time of your decision. To capitalize on those
expectations it’s imperative to identify a system that allows a business to phase in important
functionality at critical times.

7
 Which Business Process to be Address:
Highly successful companies are consistently on the lookout for ways to improve the efficiency of a
business process with the goal of reducing costs, confusion and miscommunication between
departments. So what’s the best way to bridge the communication and management gap between
functions like distribution and fulfillment or customer service and finance? By employing an
integrated ERP solution that will automate, coordinate and invigorate internal functions through a
integrated system.
 To control and manage the inventory
 To control production operation
 To increase efficiency of work
 No online material status shows
 All the department is not connected with each other
 Improve the financial system
 Improper delegation of responsibility
 Quality control issues
 Human error in accounting system

8
 Complete Roadmap Structure for ERP Implementation

Strategic planning:
We plan and prepare the ERP solution implementation by defining our project goals and
objectives, the scope of your implementation, your implementation strategy, the project schedule,
and implementation sequence. You also set up the project team in this phase. Supply, install and
configure ERP system to facilitate seamless enterprise-wide integration application systems and
relevant external systems.
Implementation Services:
The ERP Implementer must develop a comprehensive and detailed approach and strategy for the
implementation of ERP including:
 Project Scope
 Overall implementation plan and work plan (in phases)
 Migration plan
 Testing plan
 Training plan
 Cut-over and commissioning plan
Development of business processes should be kept to a minimum and as far as possible industry
best practices should be adhered to, wherever absolutely required modification or development
should be done in a manner that it gives a reasonable assurance of upward compatibility with future
versions of the platform. The development / customization should be as per a defined quality
assurance program throughout the project period. It should be meeting industry standards and
quality control parameters.
Scope:
Enterprise Resource Planning (ERP) is a planning philosophy enabled with software that attempts
to integrate all the business processes of different departments and functions across a company
onto a single computer system that can serve particular needs of the different departments.
Typically, before ERP implementation, each department has its own computer system optimized
for the requirement that a department needs. Each department will maintain separate databases and
design applications as per their functionalities. These will result in local optima and overall very
poor results across all the departments or within the company.

9
ERP combines all the business requirements of the company together into a single, integrated
software program that runs off a single database so that the various departments can more easily
share information and communicate with each other. Conceptually ERP replaces the old
standalone computer system in finance, HR, manufacturing, etc., with a single software program
that facilitates various functional modules.
Thus everybody from the finance, manufacturing, purchasing etc. will get their own advantages of
software, along with the added feature of availability of information across other departments to
improve decision quality. For example, someone in finance can use ERP to see if any sale order
has been shipped from the warehouse so that he can now confidently plan for working capital
management for the next period.
With the advent of Web-based ERP solution working environment started witnessing a tremendous
change. Web-based simplified back-office process automation for mid-sized and growing
business. It provided real-time information about finance, order management, purchase, inventory,
employee management, e-commerce and much more. With web-based ERP solution, you can
accelerate business cycles, improve productivity and reliability, and provide higher levels of
service to customers, suppliers and partners.
Needless to say resource ERP is the most reliable enterprise resource planning application
available today, providing organizations with the strategic insight, ability to differentiate,
increased productivity and flexibility.

10
Implementation Strategy:

Implementation strategy would be same as:

11
Procedure Review: (Business Process which need to be address)

We have reviewed different business processes which are ongoing in the industry with regard to
different department these are as listed below:
Procurement department:

 Purchase Order
 Purchase Picking Orders
 Purchase Invoice
 Purchase Returns

Inventory department:

 Creation of items
 Issues of Items
 Physical stock adjustment

Manufacturing department:

 Creating Bill of materials

 Creating Work Orders
 Work in process receipts for recording completed work orders

Finance Department:

 Creating a Customer Account

 Creating a Vendor Account
 Creating a Bank Account
 Creating a General Ledger Account
 Enhancing Chart of Accounts
 Receiving Check or Cash from Customers
 Payments to Vendors by raising Checks or through Cash
 Journal Entire

12
Sales and marketing department:

 Creating Sales Order

 Pick and Pack Sales Orders
 Shipping orders
 Create Sales Invoice
 Sales Returns

Customer Relationship Management:

 Customer Contact
 Estimating & Quoting
 Leadership & Opportunity Management
 Orders and Returns
 Pricing & Discounting
 Sales and Marketing
 Sales Management
 Service
Human Resources:
 Benefits
 Manage Campaigns and Promotions
 Scheduling
 Time and Attendance
 Training

13
Data Collection & clean-up:
Convert data:
The first set of document is linked to functional, hardware and security specifications of the
project. The consultants will study the business processes and provide the following documents:
 Project charter
 AS-IS Document
 Business Process Blueprint Document.
 Process Mapping with ERP and Gap analysis document
 Security & Control Specifications
 Hardware and networking plan

The Hardware and Networking plan should be provided as per the required time mentioned in
“Project Timelines” within this document so that timelines could be followed to in terms of
procurement of hardware. The second set of deliverables is linked to realization of the Business
Blue Print. This will include installation and commissioning of the ERP modules, carrying out the
customization, and achieving specific developments. The consultants will also provide at least the
following documents:

 Custom development functional specifications document

 Custom development technical specification document
 Data migration strategy document
 All user guides
 Unit and integration test scripts
 User acceptance testing test scripts
 Cutover strategy document
 Installation procedure document
 System administrators routine maintenance procedure document
 Any other, as appropriate and identified during the course of the project

14
Data transfer:
The primary data must be accurate before starting to transfer operational documents via real time
update to the consolidation processing ledger, the consolidation staging ledger, or the rollup ledger
(all of which are referred to as "consolidation ledgers" in this text). This concerns both the primary
data and the account assignments that are specifically needed for consolidation.
Primary Data:
Usually the customer has primary data from earlier accounting systems when implementing ERP
General Ledger. After the implementation team transfers this data to ERP General Ledger, you
can start posting entries in the transaction applications for the current fiscal year.
If you start using ERP Consolidation after you are already using ERP General Ledger, and you
want to use integrated data collection, you need to transfer the legacy data as well as the FI postings
that have already occurred as the initial data for the consolidation ledgers. You will most likely
post cumulative (or year-to-date) balances to generate the beginning balances.
Consolidation-related Assignments:
When ERP General Ledger is implemented, customers often transfer the primary data only as
cumulative balances. These balances usually do not include the assignments that are specifically
needed for consolidation purposes. In particular, this includes partner assignments and
consolidation transaction types.
The FI postings of the current fiscal year only include these assignments if the following
customizing settings have been made:

 The company’s IDs have been inserted in the vendor, customer and G/L master records.
 The consolidation transaction types have been assigned to the asset accounting transaction
types.

You must add any missing assignments in the appropriate consolidation ledger.
Features
Various tools are available for preparing the data.

15
Manual Data Entry:
If the FI documents are already archived, you must enter the initial balances manually in the
consolidation ledger.
When posting manually to the consolidation staging ledger, please note that simultaneous posting
is not permitted. Otherwise, update problems can occur. Therefore, you should organize a posting
break during the time you post manual entries.
Deleting Transaction Data:
If the consolidation ledger contains incomplete data, it usually makes sense to delete this data and
repost the FI documents.
Matching Data:
You can reconcile these two ledgers to ensure that all G/L data has been posted to the consolidation
staging ledger.

16
Training & Testing:
Hardware Requirements:
ERP Implementer is required to provide for the detailed configuration of the proposed
Development, Test and Production server environments as per the business and technical
requirements. The recommendations for the hardware should consider the following:
 The recommended hardware should be industry standard and have high reliability, fault
tolerance, redundancy and high availability
 The recommended hardware and software should support the requirements for a minimum
period of 5 years post the acceptance of the solution
Network Requirements:
ERP Implementer should provide the details of the network requirements for the proposed
solution. The networking plan and architecture should meet high availability requirement and high
security standards.
Project Management:
ERP Implementer should propose a suitable project manager/team with diversified expertise to
meet the requirement. The manager/team will do the overall project management throughout the
life cycle of the project to ensure successful completion of the project. Project management will
include the following:
 Ensure timely delivery of all the deliverable related to ERP.
 Suggest the hardware and network requirements
 Support evaluation of hardware and networking proposals for procurement
 Oversee delivery and installation of IT infrastructure as per detailed bill of material and
specification of hardware and networking equipment.
 Oversee network implementation
 Co-ordinate between various stakeholders and suppliers
 Manage the total project i.e. ERP delivery, customization and implementation, coordination
for site preparation, networking and hardware delivery.
 Participate in all meetings
 Define and control project scope
 Monitor risk management aspects and project delays

17
 Ensure synchronization of all the activities of the project i.e. development, IT Infrastructure
procurement, implementation, training etc.
Change Management:
Implementation of new or changed business processes will affect users and require change in the
functional processes followed. During implementation, the ERP Implementer will help in creating
and maintaining effective communication and change management vital to the successful adoption
of the new or changed processes.
The ERP Implementer shall ensure change management to ensure the successful implementation
and usage of the SAP system by the officials. Towards this end the ERP Implementer should detail
out a plan to ensure change management focused on proper implementation of ERP.
Testing Services:
Conduct testing for the system, application and any customized components. Testing shall include,
 Performance / Volume Testing
 Functional testing
 System Integration Testing
 Automated testing
Performance Testing:
Performance testing determines how the various components of a system will perform in a
particular situation. It doesn’t aim at finding defects in the system, but it aims at establishing the
benchmark behavior of an application.
Functional Testing:
The main intention when companies adopt ERP software is to obtain solutions to problems.
Functional tests on ERP software will verify if the software will provide the expected solution.
Integration testing:
Integration testing verifies if all the units work together as a single application. Through integration
testing, one will be able to visualize how the software will fit into the ERP system. Under this type
of test, testers will deploy the software in real organizational settings. The main aim is to see how
well the software will fit into the organization and how the employees arousing it.

18
Automated Testing:
This refers to the automation of the testing procedure. It promises faster and reliable testing.
However, in most cases, the results of manual test will be compared with the results of automated
tests to get a clear picture of the results.

Go live and evaluation:

Pre go-live event
 ERP Implementer will provide a detailed list of specific activities for go live event. The project
plan submitted by the vendor must ensure that the activities are completed before the event.
 Before the go-live event hardware procurement, purchase and deployment should be completed.
All training programs must be completed before the go live event. The go-live event will be
dependent on the successful UAT sign-off.
Post go-live support
 The ERP Implementer will provide handholding and onsite support for at least six months after
go live stage to resolve all implementation, operational and production issues and provide
handholding. All the documents will also be converted to final release version during this stage.
The post go-live support will address all user level queries, fixing bugs, incorporation of new
requirements owing to legal, statutory and policy changes, changes to configurations, patch
updates, upgrades, database administration, security, etc. For this purpose, the ERP provider is
expected to provide detailed processes to be followed for logging requests, assigning requests
to specific individuals, recording resolution, tracking overall time taken for resolution, etc.

19