Final Project Report in Industrial Research On

Final Project Report in Industrial Research on
“Leveraging benefits of ERP Implementation and challenges

faced by Organization.”
Submitted to: Submitted by:

Prof. A.B.Raju Harshdeep Singh Dhillon
Kashyap Naik
Malay Ghelani
Nilay Shah
Ravi Rajput
Acknowledgement
We take this opportunity to express our gratitude to those who have performed instrumental role in
making our project successful.
We extend our sincere thanks to Prof. A.B.Raju, IIPM Ahmedabad, who constantly guided us and
consistently encouraged us to execute theories taught in the class to practical project report.
In our efforts we would not forget the contribution of our institute IIPM Ahmedabad. We express
our deep gratitude to all the members of IIPM Ahmedabad for their valuable support, guidance and
encouragement during the preparation of the project.
We would never forget to thank the staff and students of IIPM Ahmedabad, without whose support
it would not be possible. Also we would like to thank our all of them who allows us to do a
Research in their organization, which are Nirmala dye chem., Kalptaru Power, Mesibus, HDFC Life
Insurance, Nalanda Hotels.
Benefits of ERP Implementation | IIPM Ahmedabad 1

Executive Summary
It is very much necessary for a person to give overall ideas about the project before presenting it
before the general public to generate their interest that is why we as group members are presenting
our overall ideas regarding what we have covered in this project report.
In this project, basically, we have covered that kind of information which is so much important for
the companies. We have approached some corporate houses to garner the fruitful information for
our project and tried to know why company actually wants to introduce the ERP in the company &
what problems they tend to face while implementing the system in the company and on other side,
what steps they took to solve the problems by convincing all without compromising with quality
factor.
The most important point in this project you will find is what common problems corporate
companies would be facing during the time of implementation. This project will be really helpful
directly or indirectly to our group in the future.

Research Methodology
It is necessary for a group to reach at fruitful result of the project report on which we have basically
worked. For that, we required to garner the information regarding the project information. So we
have gone through the primary research and secondary data which is already available in the market.
Secondary data is that kind of data which is already kept at somewhere across the world and it has
been collected for a particular purpose while primary research means we are collecting the
information or data through observation, questionnaire etc. this kind of data what you will get which
is not available elsewhere except with you. This is the main difference between the primary research
and secondary data.
In our research work, basically we have gone through taking the Companies in the city who are
doing their business through Internet or we can say using ERP. Hereby, we have approached to 25
persons and these were the sample size for us in this project. We asked them some questions as a
part of primary research to garner some fruitful information to reach at our main project‟s objective.
On the other hand, it was necessary to have a base to make us familiar with the project task so we
went through the several reputed companies websites, brochure, articles, magazines which support
us in giving a final touch to this project report.

OBJECTIVES OF THE PROJECT
 To study about the different ERP modules available
 To study about the need of ERP implementation in organization
 To understand the challenges faced by companies while implementing ERP
 To study about the Pre-implementation and Post-implementation challenges
 To study the changes in the working level after implementing ERP

Table of Content
Sr. No Particulars Page No.

1 INTRODUCTION 6
2 WHY ERP? 8
3 ADVANTAGES OF ERP 9
4 ERP MODULES 15
5 THE ERP MARKET 34
6 COMPANY WISE ANALYSIS 36
7 QUESTIONNAIRE ANALYSIS 47
8 RECOMMENDATION 61
9 CONCLUSION 63
10 BIBLIOGRAPHY 64
11 ANNEXURE 65

Introduction
Short for enterprise resource planning, a business management system that integrates all facets of the
business, including planning, manufacturing, sales, and marketing.
As the ERP methodology has become more popular, software applications have emerged to help
business managers implement ERP in business activities such as inventory control, order tracking,
customer service, finance and human resources.
Enterprise resource planning's true ambition is to integrate all departments and functions across a
company onto a single computer system that can serve all those different departments' particular
needs.
Thus ERP attempts to integrate all departments and functions across a company onto a single
computer system that can serve all those different departments' particular needs.
ERP systems are IT systems which are meant to serve all the IT needs of a manufacturing company.
ERP stands for "Enterprise Resource Planning". This type of system has evolved from earlier MRP
and MRPII systems.
MRP stands for "Material Requirements Planning", and is a computer technique for taking a product
schedule as input and generating works and purchase orders as output.
MRP II was a later development of MRP which arose because MRP needed a set of business
processes surrounding it to make it effective. Not all of the business processes needed IT support,
but others did, hence MRPII systems supported a wider range of business processes than MRP. The
name MRPII came about because the new set of business processes was called "Manufacturing
Resource Planning", and because the initials were the same as MRP, the II was tagged on.
MRPII systems tended to be so wide in scope that eventually systems developed towards giving IT
support to all parts of a manufacturing company. This is when the term ERP came into use to
signify its enterprise-wide scope.

Evolution of ERP
The history of ERP can be traced back to the 1960‟s, when the focus of systems was mainly towards
inventory control. Most of the systems software were designed to handle inventory based in
traditional inventory concepts. The 1970‟s witnessed a shift of focus towards MRP (Material
Requirement Planning).
This system helped in translating the master production schedule into requirements for individual
units like sub assemblies, components and other raw material planning and procurement. This
system was involved mainly in planning the raw material requirements.
Then, in 1980‟s came the concept of MRP-II i.e. the Manufacturing Resource Planning which
involved optimizing the entire plant production process. Though MRP-II, in the beginning was an
extension of MRP to include shop floor and distribution management activities, during later years,
MRP-II was further extended to include areas like Finance, Human Resource, Engineering, Project
Management etc.
This gave birth to ERP (Enterprise Resource Planning) which covered the cross-functional
coordination and integration in support of the production process. The ERP as compared to its
ancestors included the entire range of a company‟s activities. ERP addresses both system
requirements and technology aspects including client/server distributed architecture, RDBMS,
object oriented programming etc.
Evaluation Criteria
1. Some important points to be kept in mind while evaluating ERP software include
2. Functional fit with the Company‟s business processes.
3. Degree of integration between the various components of the ERP system
4. Flexibility and scalability
5. User friendliness
6. Ease of implementation
7. Ability to support multi-site planning and control
8. Technology - client/server capabilities, database independence, security
9. Availability of regular upgrades

10. Amount of customization required
11. Local support infrastructure
12. Reputation and sustainability of the ERP vendor
13. Total costs, including cost of license, training, implementation, maintenance, customization
and hardware requirements.
Why ERP?
1. To Enhance Profitability:
a) Increase in sales
b) Reduce Procurement Cost
2. for Healthy Operations:
a) Integration of Systems across the Functional Departments in a Company as well

as across the Enterprise as a Whole.
b) Better Customer Service.
c) Introduction of Latest Technologies as and when they are ready for the Industry
acceptance
d) Expertise database
e) Avoids data redundancy
3. Competition in the Market:
a) Manufacturing Challenges.
b) Manufacturing Globally.
c) Distribution network spread.
d) New Product introduction.
e) Lower manufacturing lead time.
f) Focus on industry markets.

g) Satisfying the needs of customers.
h) Develop specific business methods and processes.
i) Integration with third party products.
4. Demands on the Industry:
a) Better products at lower costs

b) Tough competition
c) Need to analyze costs / revenues on a product or customer basis
d) Flexibility to respond to changing business requirements
e) More informed management decision making
5. Solving the Problems:
a) Unable to get accurate, timely information

b) Applications not complete for existing business practices
c) Modifications are time consuming or not feasible
Solving these Problems will the company ahead of competition!
The advantages of ERP
Installing an ERP system has many advantages -both direct and indirect.
The direct advantages include improved efficiency, information integration for better decision
making, faster response time to customer queries, etc. The indirect benefits include better corporate
image, improved customer goodwill, customer satisfaction, and so on.

The following are some of the direct benefits of an ERP system:
1. Business Integration
2. Flexibility
3. Better Analysis and Planning Capabilities
4. Use of Latest Technology.
1. Business Integration: The first and most important advantage lies in the promotion of
integration. The reason why ERP packages are considered to the integrated, is the automatic data
updating (automatic data exchange among applications) that is possible among the related business
components.
Since conventional company information systems were aimed at the optimization of independent
business functions in business units, almost all were weak in terms of the communication and
integration of information that transcended the different business functions.
In the case of large companies in particular, the timing of system construction and directives differs
for each product and department/ function and sometimes, they are disconnected. For this reason,
it has become an obstacle in the shift to new product and business classification.
In the case of ERP packages, the data of related business functions is also automatically updated at
the time a transaction occurs. For this reason, one is able to grasp business details in real time, and
carry out various types of management decisions in a timely manner, based on that information.
2. Flexibility: The second advantage of the ERP packages is their flexibility. Different languages,
currencies, accounting standards and so on can be covered in one system, and functions that
comprehensively manage multiple locations of a company can be packaged and implemented
automatically. To cope with company globalization and system unification, this flexibility is essential
and one can say that it has major advantages, not simply for development and maintenance, but also
in terms of management.

3. Better Analysis and planning Capabilities: Yet another advantage is the boost to the planning
functions. By enabling the comprehensive and unified management of related business and its data,
it becomes possible to fully utilize many types of decision support systems and simulation functions.
Furthermore, since it becomes possible to carry out, flexible and in real time, the filing and analysis
of data from a variety of dimensions, one is able to give the decision-makers the information they
want; thus enabling them to make better and informed decisions.
4. Use of Latest Technology: the fourth advantage is the utilization of the latest development in
information Technology (IT). The ERP vendors were quick to realize that in order to grow and to
sustain that growth; they had to embrace the latest developments in the field of information
technology. Therefore, they quickly adapted their systems to take advantage of the latest
technologies like open systems, client/ server technology, Internet/Intranet, CALS (Computer-
Aided Acquisition and Logistics Support), electronic-commerce, etc.
It is this quick adaptation to the latest changes in the Information Technology that makes the
flexible adaptation to changes in future business environments possible. It is this flexibility that
makes the incorporation of the latest technology possible during system customization, maintenance
and expansion phases.
What is that ERP enables?
a) Systematic Look into your Systems & procedures

b) Optimizing the processes
c) Enables you to adapt yourself to new technologies
d) Discipline across the functions

Problems Taken Care of by the ERP:
a) Availability check at the time of Accepting Sales order

b) On-line Material Status & Shortages
c) Productivity Enhancements
d) Material Planning
e) Customer Service
f) Cash Management
g) Inventory
h) Quality
What drives ERP?
 Business drives
a) Customer Satisfaction
b) Business Development - new areas, products, services
c) Ability to face competition
d) Efficient processes required to push the company to top gear
 IT drives
a) Present Software does not meet business needs
b) Legacy systems difficult to maintain
c) Obsolete hardware/software difficult to maintain

Drivers
The market for ERP however does not sound so depressing. Companies still have growth
avenues which include:
Less penetrated modules within the ERP suite, both horizontal and vertical. The new horizontal
areas include E-commerce, Customer relationship management, Supply chain management, plant
maintenance, field service, data warehousing, product data management, service contract
management, warehousing & distribution, transportation management etc. Among the vertical
application are industries such as retail, utilities, insurance, and government organizations.
The mid market segment presents immense opportunities. However, the margins from SMEs will be
far below that from the larger players.
Another problem that the SMEs present is the low transaction (order) size and the difficulty of
reaching out to these players. Also they are relatively less sophisticated on the technology side.
Another major demand driver will be the e-commerce wave. As more and more company move
towards e-commerce it becomes necessary to implement ERP solutions.
Inhibitors or hurdles for the growth of ERP market:
After posting significant gains for 3-4 years the ERP market may be heading towards a slowdown.
Except for SAP most other players have witnessed a slowdown in revenue growth.
The main constraints to growth for the sector can be classified as:
a) Saturation of the certain horizontal applications including Finance and accounting, MRP etc
which accounted for nearly 45% of the ERP revenues during 1998.
b) Saturation of large customers. Most of the Fortune 500 companies and companies having
revenues over $1bn have already implemented ERP.
c) Though the medium enterprises provide a good opportunity for growth, pricing for these
companies will have to be highly competitive and margins may come under pressure. Thus
smaller players who have a cost advantage will have an edge over the others.

ERP in India
Until recently Indian organizations were in a seller‟s market and operating in a regulated
environment. They grew by managing the environment, rather than innovating and improving
internal efficiencies. The customer was taken for granted and quality was available only at a
premium. With globalization and gradual lifting of regulation, there is a paradigm shift in running
the business.
Indian companies now need to increase customer focus, improve speed of delivery, be cost
competitive and provide value for money (improved quality at lower price). Indian companies
therefore need to implement ERP systems for improving their business processes and becoming
more competitive in the global environment. Though ERP implementation is costly and time
consuming, it has several benefits which will help recover these costs in the long run.
According to NASSCOM, during the year 1998-99, the Indian ERP market has been estimated at
R5200mn compared to Rs2800mn in the previous year i.e. a growth of 85%yoy. The growth in the
export market was far higher and more than doubled during the same time period. According to the
NASSCOM, by the end of FY2001-02, the total Indian ERP market is expected to multiply by
nearly 4 times and reach Rs65bn compared to Rs13.4bn in 1998-99.

ERP Modules ERP Modules
Figure 12.1 44
ERP’s Central Database
Finance &
Accounting
Sales Production &

& ERP Data Materials
Marketing Repository Management
Human
Resources
Figure 12.2
45
All ERP packages contain many modules. The number and features of the modules vary with the
ERP packages. Some of the most common modules available in almost all packages are:
1. Finance
2. Plant Maintenance
3. Quality Management
4. Material Management, etc

5. Inventory Management
6. Manufacturing and production planning
7. Sales and distribution
Some packages will have a subset of this and some will have more modules and / or features.
1. FINANCEMODULE:
The entire concept of information technology is based on the premise that providing the right
information, to the right people, at the right time can make a critical difference to the organization.
Much of this key information could be taken from the financial data. But merely having the financial
data is not enough.
You need a set of processes and views of your data that provided up-to-the minute financial
information in exactly the form you need it to make that critical difference and help with that critical
decision.
Accounting software needs access to information in each area of organization, from R&D and
market research through manufacturing, distribution and sales. Financial solution must provide the
management with information that can be leveraged for strategic decisions, in order to achieve
comprehensive advantage.
This section provides an overview of the financial solutions in most the ERP packages. In today‟s
business enterprise, you need to know that your financial decisions are based on today‟s data, not
numbers from records closed a month ago, or even a week ago.
And you need to know that this same „today‟s‟ data represents every segment of your organization's
activities, whether your enterprise stretches across a room or around the globe. This is essential,
because the most efficient way to get our enterprise to where you want it tomorrow is to know
exactly where it is today.

Whatever be the financial goals of the organization, the financial application components of the
ERP solutions work hand-in-hand to improve the bottom line.
This is true because the financial functioning is tightly integrated across all business areas and all
geographic areas. This tight integration includes all the other different modules, from materials
management to human recourses to logistics.
The Finance modules of the most ERP systems provide financial functionality and analysis support
to thousands of businesses in many countries across the globe. These ERP systems include not only
financial application components, but also Human resources, Logistics, Business workflow and links
to the internet.
The finance modules of most ERP systems will have the following subsystems:
1. Financial Accounting:
a. General Ledger
b. Accounts Receivable/payable
c. Special Ledgers, Fixed Asset Accounting
d. Legal Consolidation.
2. Investment Management:
a. Investment Planning
b. Budgeting
c. Controlling
d. Depreciation Forecast
e. Simulation
f. Calculation.

3. Controlling
a) Overhead Cost Controlling.

b) Activity- Based Costing
c) Product Cost Accounting
d) Profitability Analysis.
4. Treasury Module
A. Financial Accounting:
The objective of a good financial accounting system is to provide companywide control and
integration of financial information that is essential to strategic decision –making. The financial
accounting module of an ERP system, gives you the ability to centrally track financial accounting
data within an international frame work of multiple companies, languages, currencies and charts of
accounts.
a. General ledger
The General ledger (GL) is essential both to the financial accounting system and to strategic
decision-making. Through active integration with business processes in logistics and in the
accounting sub-ledgers, the GL serves as a central pool of financial data for financial
reporting as well as for other accounting areas
The general ledger supports all the function needed in a financial accounting system.
b. Accounts receivable and payable:
ERP system offer a financial overviews of global business partner relationships in the
Accounts, Receivable and Payable functions .these sub-ledgers are integrated ,both with the
general ledger with the areas in sales and distribution and Materials Management, where
financial data originates.

Accounts Receivable and payable transactions are performed automatically when related
processes take place in other modules.
c. Special Ledgers, Fixed Asset Accounting
Asset Accounting, managers the company‟s fixed assets. Within the Financial Accounting
system, Asset Accounting serves as a sub-ledger to the General Ledger, providing detailed
information on asset- related transactions.
d. Legal Consolidation
Consolidated financial statements need to be integrated effectively with operational data ay

the individual company level. By using different valuation methods, you can plan balance
sheet strategies to suit the company‟s requirements.
B. Investment Management
Investment Management provides extensive support for investment processes right from planning
through settlement. Investment management facilitates investment planning and budgeting at a level
higher than that needed for specific orders or projects. You can define an investment program
hierarchy using any criteria-for example, department-wise.
Investment program allows you to distribute budgets, which are used during the capital spending
process. The system helps you monitor, and thereby avoid, budget overruns.
Investment Management provides tools, enabling you to plan and manage your capital spending
projects right from the earliest stage.
Investment Management module recognizes the importance of the asset accounting aspects of
investment measures. The system automatically separates costs requiring capitalization from costs
that are not capitalized, debiting the correct costs to the asset under construction.
Asset accounting provides precise proof of origin for all transactions affecting acquisition and
production costs.

C. Controlling
The controlling system gathers the functions required for effective internal cost accounting. It offers
a versatile information system, with standard reports and analysis paths for the most common
questions. In addition, there are features for creating custom reports to supplement standard reports.
a. Overhead Cost Controlling
Many organizations experience a significant increase in the percentage of indirect costs,

which cannot be directly assigned to either the products manufactured, or to the services
rendered. The Overhead Cost Controlling subsystem focuses on the monitoring and
allocation of overheads.
b. Cost Centre Accounting
Cost centre accounting analyses where overheads occur within the organization. Costs are
assigned to the sub-areas of the organization where they originated.
They system offers a wide variety of methods for allocating posted amounts and qualities.
c. Overhead Orders
Overhead orders subsystem collects and analyses costs, based on individual internal
measures. This system can monitor and automatically check budgets assigned to each
measure.
d. Activity- Based Costing
The goals of the entire organization should come before the goals of individual departments,
when it comes to business process reengineering. The Activity- Based Costing module is a
response to the growing need for monitoring and controlling cross-department business
process, in addition to functions and products.

e. Product Cost Controlling
Product Cost controlling module determines, the costs arising from manufacturing a
product, or providing a service. Plan and standard values, serves in valuating warehouse
stock and for contrasting revenues received with costs. In addition, the values in product
Cost Controlling are crucial for determining the lowest price limit for which a product is
profitable.
f. Cost Object Controlling
It helps to monitor manufacturing orders. Integration with the logistics components results
in a logistical quantity flow that provides instant information on actual cost object costs,
allowing ongoing costing calculations at any time.
g. Profitability Analysis
It examines the sources of returns. As part of sales controlling. Profitability Analysis is the
last step in cost-based settlement, where revenues are assigned to costs according to the
market segment. This subsystem can help defining any market segment-distinguishing, for
example between products, customers, orders, sales organizations, distribution channels and
business areas- and evaluate it, according to contribution and revenue margins.
D. Treasury Module
Company can gain significant competitive advantage by efficiently managing the short, medium, and
long-term payment flows and the resulting risk exposure.
Tasks such as short-term monitoring and concentration of bank account balances, medium-term
planning, and forecasting of incoming and outgoing resources in accounts receivable and payable, to
a long-term view of areas such as materials management and sales, underline the importance of
integrating information from various company divisions.

Linking these operating divisions to realized and planned financial transactions and positions in
Treasury, has a significant impact on the company‟s success. Such integration also facilitates
management and control of cash flows, and risk positions through all the divisions in the company.
The treasury components provide you with a basis for effective liquidity, portfolio and risk
management.
a. Cash Management
The Cash Management subsystem allows yo9u to analyze financial transactions for a given
period. Cash Management also identifies, and records future developments for the purpose
of financial budgeting. The company‟s payment transactions are grouped into cash holdings,
cash inflows and cash outflows.
The Cash Management provides information on the sources and uses of funds to secure
liquidity in order to meet payment obligations when they become due.
The Cash Management also monitors and controls incoming and outgoing payment flows,
and supplies the data required for managing short term money market investments and
borrowing. Depending on the time period under review, a distinction is made between cash
position, short-term cash management and medium and long-term financial budgeting.
b. Treasury Management
Treasury Management component offers functions for managing financial deals and
positions, from trading to transferring data to Financial Accounting. Treasury Management
also supports flexible reporting and evaluation structures for analyzing financial deals,
positions and portfolios. For short-term liquidity and risk management, you can use the
money market, or to eliminate currency risks.

By using common organizational elements throughout, various organizational structures can
be represented in the system, such as a central enterprise-wide treasure department or „in-
house banks‟. This also ensures full integration of Treasury into other modules of the
system.
c. Market Risk Management
Market Risk Management plays vital role within Treasury, in ensuring company‟s
competitiveness. Market Risk Management involves a complex feedback loop encompassing
data collection, risk management, analysis and simulation as well as active planning of
financial instruments. Market Risk Management acts as an integrated central risk control
station with monitoring and management functions.
Access to information on current and future cash flows and on financial deals already
processed, is an absolute must. As a result, Cash management, which pools all cash flows
from the business sectors, such as sales and distribution or purchasing, forms the basis.
Consequently, all cash flows from the company‟s operating business can be accessed for the
purposes of risk management. Furthermore, all financial transactions managed in Treasury
management can be evaluated together with the cash flows generated by the various
operating divisions.
The Market Risk Management component provides various measurements for analyzing and
assessing interest rate and currency risks. Market-to-market, effective rate and effective yield
calculations are based on up-to-the minute market data, uploaded via data feed, and financial
transactions or position.

d. Funds Management
Funds Management system enables you to control various funds commitments and
determine how much of the budget has already been utilized via availability checking. The
information system can supply with information at any time, on when, where, and how
funds commitments arose. Analyses by responsibility area and commitment items allow
identifying any budget bottlenecks.
e. Enterprise Controlling
Enterprise Controlling comprises of those functions that will optimize shareholder value,
while meeting internal objectives for growth and investment. This module usually includes
executive Information System, Business planning and Budgeting, Consolidation, and profit
Centre Accounting.
f. Executive Information System
The Executive Information System provides an overview of the critical information

necessary to manage the organization. This component integrates data from other ERP
components, and non-ERP data sources both inside and outside the enterprise.
Business planning and budgeting. Business planning and budgeting supports the
management teams of business units and groups in the calculations of business targets, such
as ROI. This module also supports central investment planning, budget release and tracking.
g. Profit Centre Accounting
Profit Centre Accounting analyses the profitability of internal responsibility centers. A

company‟s organizational structure is represented in the form of a profit centre hierarchy,
with the profit centre as the smallest unit of responsibility. All business transactions in
financial accounting, Material Management, Asset Management, and Sales and Distribution,
which affects profits, are automatically reflected in profit Centre Accounting

2. Plant Maintenance Module
The achievement of world class performance demands delivery of quality products expeditiously and
economically. Organizations simply cannot achieve excellence with unreliable equipment. The
attitude towards maintenance management has changed as a result of quick response manufacturing,
Just-in-time reduction of work in process inventory and the elimination of wasteful manufacturing
practices.
Machine breakdown and idle time for repair was once an accepted practice. Times have changed.
Today when a machine breaks down, it can shut down the production line and the customer‟s entire
plant.
The preventive Maintenance module provides an integrated solution for supporting the operational
needs of an enterprise-wide system. The plant Maintenance module includes an entire family of
products covering all aspects of plant/equipment maintenance and becomes integral to the
achievement of process improvement.
The major subsystems of a plant Maintenance module are:
a) Preventive Maintenance Control

b) Equipment Tracking
c) Component Tracking
d) Plant Maintenance Calibration Tracking
e) Plant Maintenance Warranty Claims Tracking
a. Preventive Maintenance Control
Preventive Maintenance Control provides planning, scheduling and control of facilities and
equipment. Equipment lubrication, components replacement and safety inspection can be planned
schedule, and monitored. Maintenance tasks can be tracked for each machine, or piece of
equipment, by two user defined modes, as well as calendar day frequency.
These modes could include tracking by hours of operation, units of production produced, gallons of
fuel consumed, or the number of days in operation since the last service interval.

Preventive Maintenance Control enables organizations to lower repair costs by avoiding downtime,
machine breakage and process variability. Companies achieve higher machine utilization and
improved machine reliability and tolerance control, along with higher production yields.
b. Equipment Tracking
Equipment is an asset that needs to be monitored and protected. In many situations, equipment
maintenance costs constitute the single largest controllable expenditure of an organization. All facets
of plant location history and utilization history are described and tracked.
This history includes acquisition and disposition information and associations between different
pieces of equipment to pinpoint operational dependencies. Running totals for operational units to
date 9miles, hours, days, units of production, etc) are also provided.
Each piece of equipment is defined by a model and serial number. User-defined data sheets can be
developed which allow for the grouping of user data into formats that can be linked to equipment
specifications, which provide detailed information for technical specialists working in equipment
operations, maintenance and transportation control.
c. Component Tracking
Components are, typically, subsets of larger equipment and deserve the same amount of cost
controlling scrutiny. Component tracking enables equipment managers to identify components with
chronic repair problems. They can determine whether a repair or replacement should be covered by
warranty.

Planning components replacements, rather than waiting for components failure to occur, reduce
unscheduled equipment downtime. Components tracking include repair/exchange history and
components service life.
d. Plant Maintenance Calibration Tracking:
Plant Maintenance Calibration Tracking allows organizations to leverage their investment in the
plant Maintenance module by providing for the tracking of equipment calibration in support of
ISO9000 requirements.
e. Plant Maintenance Warranty Claims Tracking
Plant Maintenance Warranty Claims Tracking is an administrative system designed to provide

control of all items covered by manufacturer and vendor warranties. It enables plant management to
recover all of the warranty, reimbursements to which they are entitled but have not been able to
recover in the past.
Features include the ability to establish the type and length of warranty, for example, elapsed day,
months, mileage stipulation, or operating units. A complete history is performed for each item
covered by the warranty, and complete information regarding the warranty service provider is
generated.
3. Quality Management Module
The ISO9000 series of standards defines the functions of quality management and the elements of a
quality management system. The functions in the Quality Management module support the essential
elements of such a system. The other integrated modules in the system complement this
functionality.
The ISO standards require that quality management systems penetrate all processes within an
organization. The task priorities, according to the quality loop, shift form production
(implementation phase) to production planning and product development (planning phase) to
procurement and sales and distribution, as well as into the entire usage phase.

CAQ and CIQ
Computer-integrated Quality Management (CIQ) is more appropriate term in comparison to

Computer-Aided Quality Management (CAQ), because an isolated CAQ system cannot carry out the
comprehensive tasks of a quality management system.
The ERP system takes this into consideration by integrating the quality management functions into
the affected applications themselves (for example, procurement, warehouse, warehouse
management, production and sales/distribution), instead of delegating them to isolated CAQ
systems.As a result of this approach, the processes described in the quality manual can be
implemented and automated in the electronic data processing (EDP) system.
As a part of the Logistics applications, the Quality Management module handles the traditional tasks
of:
1. Quality planning
2. Quality inspection
3. Quality Control.
For example, it supports quality management in procurement, product verification, quality
documentation and in the processing of problems. The quality Management module‟s internal
functions do not directly interact with the data or processes of other modules.
Quality Management Module-Functions
The quality Management module fulfills the following functions:
1. Quality planning (Management of basic data for quality planning and inspection planning,
Material specifications, Inspection planning).
2. Quality Inspection ( Trigger inspections, Inspection processing with inspection plan selection
and sample calculation, print shop papers for sampling and inspection, Record results and defects,
Make the usage decision and trigger follow-up actions).

3. Quality Control: (Dynamic sample determination on the basis of the quality level history,
Application of statistical process control techniques using quality control charts. Quality scores for
inspection lots, Quality notifications for processing internal or external problems and initiating
corrective action to correct the problems, Inspection lot processing and problem processing, Quality
Management Information system for inspections and inspection results and quality notifications).
Computer-integrated Quality Management (CIQ)
The integration of Quality Management in the ERP systems considerable advantages because only
an integrated system can support all the elements of a quality management system, according to ISO
9000. The integration allows the quality management functions to influence all processes within a
company, thereby affecting all phases of a product‟s life cycle.
The Quality Management module uses the system‟s integration to link the tasks of quality
management with those of the other applications, such as materials management, production,
sales/distribution and cost accounting. An inspection that is triggered automatically upon goods
receipt is an example of this.
The Quality Management module is integrated with the master data and
processes of the following applications:
1. Materials management (purchasing, inventory management,

warehouse management, material requirements planning).
2. Production ( work scheduling, shop floor control)
3. sales and distribution ( delivery, creation of quality certificates)

4. Materials Management Module:
The Material Management module optimizes all purchasing processes with workflow-driven
processing functions, enables automated supplier evaluations, lower procurement and warehousing
costs with accurate inventory and warehouse management and integrates invoice verification. The
main modules of the Material Management module are:
1. Pre-purchasing Activities
2. Purchasing
3. Vendor Evaluation
5. Invoice Verification and Material Inspection.
Pre-purchasing Activities
This system supports the complete cycle of bid invitation, award of contract and acceptance of
services. The pre-purchasing activities include maintaining a service master database, in which the
descriptions of all services that are to be procured can be stored. The system also keeps a separate
set of service specifications that can be created for each concrete procurement project or proposed
procurement in the purchasing document. Sets of service specifications may include both items with
services and items with materials.
When creating such specifications, the user does not have to list individual services manually.
Instead, the data is simply copied from the master data. Use of this technique means that data only
has to be entered once. The manual entry effort is reduced to a minimum.
There are two ways of entering service specifications-planned and unplanned. Planned service
specifications mean that service whose precise nature and intended scope are already known at the
beginning of a procurement project.

Purchasing
Purchasing is a very important component of the Material Management module. The Material
Management module is fully integrated with other modules in the system. It supports all phases of
material management: materials planning and control, purchasing, goods receiving, inventory
management and invoice verification. Good communication between all participants in the
procurement process is necessary for purchasing to function smoothly.
Purchasing communicates with other modules in the system to ensure a constant flow of
information.
For example, it works side by side with the following modules:
1. Cost Accounting System: Orders for materials and services consumed directly illustrate the
interface to the cost accounting system. This is because they can be assigned to a cost centre directly.
2. Financial Accounting: Purchasing and Accounting both maintain information on vendors.

Information on each vendor is stored in a vendor master record which contains both accounting
and purchasing information.
3. Sales and Distribution: Within the framework of material requirements planning (MRP),
customer requirements from Sales can be passed on to purchasing. In addition, when creating a
requisition, you can assign it to a sales order. Purchasing system performs tasks like procurement of
materials and services, determination of possible sources of supply for a requirement identified by
the materials planning and control system or arising directly with in a user department, monitoring
of deliveries and payments to vendors, and so on.
4. Vendor Evaluation
The vendor evaluation component has been completely integrated into the Material Management
module. Information such as delivery dates, prices and quantities can be taken from purchase orders.
Vendor Evaluation also uses data from Quality Management, such as the results of incoming
inspections or quality audits.
It also assesses basic data in Materials Management, such as goods receipt data from Inventory
Management. In the case of procurement of materials, the system helps you select sources of supply

and facilitates the continual monitoring of exiting supply relationships. It provides you with accurate
information on prices, and terms of payment and delivery.
By evaluating vendors, you can improve your enterprise‟s competitiveness. You can quickly
determine and resolve any procurement problems that may arise on the basis of detailed information
and in collaboration with the relevant vendors.
In the case of procurement of services, you can check the reliability of the vendors from which you
procure services on a plant by plant basis. You can determine whether the vendors perform the
services within the specified timeframes and appraise the quality of the work carried out.
Inventory Management system allows you to manage your stocks on a quantity and value basis, plan,
enter and check any goods movements and carry out physical inventory.
In the Inventory Management system, the physical stocks reflect all transactions resulting in a
change in stock and thus, in updated inventory levels.The user can easily obtain an overview of the
current stocks of any given material.
For each material, not only are the stocks in the warehouse shown, but also the stocks ordered but
not yet delivered, reserved for production or for a customer, and the stocks in quantity inspection
can be monitored.
The stocks are managed not only on a quantity basis but also by value- a prerequisite for cost
accounting. With every goods movement, the following values are updated:
1. Stock value for inventory management
2. Account assignment for cost accounting
Both the quantity and the value are updated automatically when entering a goods movement. Most
Inventory Management systems support inventory methods like periodic inventory, Continuous
Inventory, Inventory sampling and Cycle counting.

Invoice Verification and Material Inspection.
Invoice Verification component is part of the Material Management system. It provides the link
between the material Management components and the Financial Accounting, Controlling and Asset
Accounting components.
Invoice Verification in Material Management serves the following purposes:
1. It completes the material procurement process-which starts with the purchase requisition,
continues with purchasing and goods receipt and ends with the invoice receipt.
2. It allows invoices that do not originate in materials procurement (for example, services, expenses,
courses, course costs, etc.) to be processed.
3. It allows credit memos to be processed, either as invoice cancellations or discounts.
Invoice verification does not handle the payment or the analysis of invoices. The information
required for these processes is passed on to other departments.
Each invoice contains various items of information. To post an invoice, you must enter this
information into the system. If an invoice refers to an existing transaction, certain items of
information will already be available in the system. The system proposes this information as default
data so that you only need to compare it and, if necessary, correct any possible variances.
If an invoice refers to a purchase order, for example, you only need to enter the number
Market players and profiles
While 52% of the total market is accounted for by the unorganized and small players the rest is
accounted for by around 10 major players. SAP contributes 17% of the total revenues followed by
People Soft, Oracle, Baan and J D Edwards.
SAP
SAP pioneered Enterprise Resource Planning. The company‟s R/3 System, a family of integrated
components such as Production, Sales and Distribution, Controlling and Human Resources can be

used as a whole or individually. R/3 is also internet-compatible and can be easily combined with
other types of software or customers‟ own systems.
Probably the only leader, SAP, according to AMR has a market share of 33% which is higher
compared to the next 4 competitors put together. The company has more than 19,300 employees
worldwide. The company‟s R/3 system is in use in more than 107 countries.
The ERP market
During the last 3-4 years the ERP market witnessed considerable growth rates driven mainly by the
Y2K crisis. ERP companies including SAP, PeopleSoft, Oracle and Baan etc have recorded
consistent growth in revenues, which were well above the 20% mark.
However, recent trends in the industry indicate a slowdown in the traditional ERP market. The
slowdown has been attributed to the Y2K crisis, which is round the corner and the stagnant world
economy. Growth rates which were as high as 40% per annum is expected to slow down
considerably to around 15-20%.
However, the market is also witnessing new avenues like the emergence of SMEs (Small and
Medium Enterprises – turnover of $50mn to $500mn) as a major ERP spender with significant
demand for module specific implementation. As the Fortune 500 market for product license revenue
becomes saturated, larger ERP firms are shifting their focus to the middle market.
Also, other areas like Supply Chain Management (SCM), Customer Relationship Management
(CRM), extended ERP and Web enabled ERP are catching attention.
During the year 1998 the total ERP market is estimated to be around $17.5bn by IDC a growth rate
of around 26%yoy.

The ERP market is widely spread with the top ten players accounting for almost 48% of the total
market the rest of the market is accounted for by the small and regional players. However, the top
end of the market is captured by a few players. SAP, the market leader, accounts for 17% of the total
market (1998). Other major players include Baan, Oracle, and PeopleSoft.
Now for showing the primary research which was carried out by our group we would like to firstly
like to take names of all the companies which helped us a lot during this project, so now firstly let us
start critical analysis of the companies which we surveyed. There is a designed format in which we
will analyze the whole company.

Company Analysis

To analyze the companies first 2 parts would be in sequence in this chapter & the remaining 2 would
be in conclusions & recommendations respectively.
1st Part: Need identification
2nd part: Pre implementing Steps
HDFC Standard Life Insurance Company Limited. is one of India's leading private insurance
companies, which offers a range of individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited (HDFC Limited), India's leading
housing finance institution and a Group Company of the Standard Life Plc, UK. As on February 28,
2009 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of
equity in the joint venture, while the rest is held by others.
Reason of implementing ERP? Needs of the technology.
Recognizing the market challenges and the importance of service standards in the Indian life
insurance industry, HDFC Standard Life has been engaging technology as a key component in
standardizing and automating its core business processes. The SAP deployment is expected to
improve data accuracy and eliminate manual processes, giving business executives in-built
business intelligence to aid decisions.
This is what the HDFC had to say when they were basically asked that what made them think to
implement ERP in the company; here the main thing which can be identified is that the company
basically was facing some errors in the manual entry so they basically wanted to automate the things.

Selection of the ERP supplier.
HDFC Standard Life, a private life insurance company, has selected SAP as its technology partner to
enhance its customer centricity and set new benchmarks in service standards. The enterprise-wide
deployment of SAP solutions will integrate the company‟s internal business functions including
finance, operations, incentive and compensation management, HR activities. .
"Technology is a critical enabler in fuelling our business priorities. We, at HDFC Standard Life, are
proud to be associated with SAP and believe that SAP will help us facilitate better understanding of
our customers apart from enhancing our delivery capabilities, running more profitably and
productively," said Paresh Parasnis, principal officer and executive director, HDFC Standard Life.
HDFC Standard Life especially chose SAP because it fit the criterion of a highly-scalable
solution that will meet their current and future needs. Right from core business processes to
distribution channel management and CRM, the SAP platform provides an integrated solution that
enables a single view of business data across the organization.
Pre Implementation Process.
The company was having one of the biggest challenge which was that they wanted all the employees
to put all the data entry in place of manual , so what the company started with is at first they had
started training their employees for the particular thing, and during that training there is one very
unique thing about the organization which is that they have a central team for training which means
that the trainers generally are in house so the training which is given to the candidates is generally
successful.
The time taken while implementing was long as they wanted a universal model throughout the
country so there were many places where there were hurdles which the company had faced.

Kalpataru Power Transmission Limited is one of the leading companies in the field of Turnkey
projects for EHV Transmission Lines up to and including 800 KV in India and Overseas. As an
EPC contractor, our scope of work includes design, testing, fabrication, galvanizing of towers and
construction activities from survey, civil works/ foundation, erection to stringing and
commissioning of EHV lines, besides procurement of items such as conductors, insulators,
hardware accessories etc.
Located at Gandhinagar Gujarat, in Western India, Kalpataru Power Transmission is a public listed
company with a turnover of USD 385 Million (Rs. 19.1 Billion) and annual production of
80,000 MTs till 2007-08.The company has a net worth of over USD 200 Million and an order
booking of over Rs 50 Billion (USD 1Billion). The company has also attained distinction of
crossing the USD 800 Million (Rs. 40 Billion) market capitalization. On a combined basis (with
JMC Projects), the consolidated turnover has crossed Rs 32.8 Billion (USD 655 Million).
Kalpataru Power has two large Fabrication Plants with an annual installed capacity of 108,000 MTs
(with a capacity addition of 24,000 MTs in Oct, 2008) one of the largest in the world and is equipped
with modern machineries (including 16 CNC machines) and automated temperature controlled
Galvanizing Baths, besides its own state-of-the-art Testing Station and R & D Centre. It was the
first company in 1994 in the Indian transmission industry to be ISO 9001 certified.
Recognizing the market challenges and the importance of service standards in the Indian life
insurance industry, KALAPATRU POWER TRANSMISSION LTD. has been engaging technology
as a key component in standardizing and automating its core business processes.

The SAP deployment is expected to improve data accuracy and eliminate manual processes, giving
business executives in-built business intelligence to aid decisions.
This is what the KALAPATRU POWER TRANSMISSION LTD. had to say when they were
basically asked that what made them think to implement ERP in the company; here the main thing
which can be identified is that the company basically was facing some errors in the manual entry so
they basically wanted to automate the things.
The company had proudly selected SAP as the supplier of the erp for them. The company also has
to say that who in this world know erp better than sap so that became one of the reasons of
selection and also indicates that how successful the brand SAP has become. The company after
making the decision of the supplier they selected the implementer for the erp sand implementer was
IBM India. This indeed was a very highly professional implementer.
The company had arranged for learning changes to the employees, they had planned a schedule of
learning in which they had selected some of the key people form the company and had send to the
learning center of the company itself in which there was a training team which had come from the
implementing partners IBM so this was the main process how they got trained mainly. the company
had also faced many of the challenges during this training also as the trainers who had came from
the implementing partner they were mainly not from the local area of the company , so the result to
this particular thing the main thing that happened was the intellectual clashes which took place
between the trainers and also the employees.

Masibus was established in 1975 to manufacture process control instruments in India. Since its
inception, Masibus has evolved into a high technology organization with core competencies in
process control instrumentation, automation, systems integration & asset management technology.
For over three decades Masibus has scaled unprecedented heights in the design, development &
manufacture of microprocessor based instrumentation products and automation solutions.
Masibus‟Products, Projects & Condition Monitoring Divisions offer a wide variety of products &
customized solutions to its 5000 plus customers, in numerous vertical segments. With 9 branch
offices in India, an international office in Sharjah, along with a host of Dealers & System Integrators,
three manufacturing facilities in India produce a complete range of process instrumentation &
turnkey automation solutions, which include Calibrators, Indicators, Controllers, Scanners, Remote
Terminal Units, Signal Isolators/Converters, Power Meters & Transducers, I/O Modules,
HMI/SCADA software products, customized OEM products as well as Control Panels.
Masibus‟ Projects Division offers complete systems solutions for several vertical segments like oil &
gas, water treatment, steel, pharmaceuticals, fertilizers, chemicals, power, cement, paper, etc.
Masibus‟ Condition Monitoring Division offers products and services in Vibration Monitoring &
Infrared Thermography. It also offers on-line turnkey asset management solutions.
Masibus has tied up with many internationally reputed instrumentation & automation companies like
Toshiba – Japan, Qualitrol – Hathaway, U.K., Martel Beta Calibrators - USA, Vatron – Austria,
Citect - Australia, Setra – USA, Lord Corporation– USA, CTC – USA, Williamson – USA, FLIR –
Sweden, Mox – Australia, Shinko – Japan, Inor – Sweden, to name a few.

Customer care is the underlying theme of the organizational culture. All employees understand that
total customer satisfaction is the key to continued success in a highly competitive industry.
Committed to ethical dealings with all its stake holders, Masibus is a value-based organization that
makes a conscious effort to care for the environment with its offerings, to enhance the lot of
students by offering traineeships & to delight its customers with cost effective solutions & value for
money.
“One immediate outgrowth of this new synergistic pairing will be our aggressive expansion into the
small and medium enterprise market which, according to conservative estimates, is a Rs 800-crore
segment,” said Mr Subramaniam. He expressed optimism that his company would be able to corner
a substantial chunk of this market which is still largely untapped. When the company was thinking
to expand its business and also there was a need of automation in the company which generally
forced them to take a decision for the implementing of ERP.
The Gandhinagar-based Rs 10 crore Masibus India, an end-to-end enterprise business solutions

provider, has entered into a strategic reseller and solution implementation partnership with the
Danish software firm Navision to offer enterprise resource planning (ERP) solutions to small and
medium enterprises.
To begin with, Masibus plans to do business worth around Rs 1 crore in the first financial year of
the partnership whereby the company would largely target its own basket of existing customers.
Incidentally, Masibus is largely a global process automation and software service provider which
helps companies implement intelligent solutions which solve business and operational issues. The
company‟s services aim to meet the unique requirements of companies for process automation,
security applications and offshore development. Its clients include Ranbaxy and McDonald‟s and the
company is currently negotiating with the Anand-based National Dairy Development Board too.

Established in 1975, Masibus has 10 offices countrywide and strategic partners in the US and
Singapore and has 125 employees.
Interestingly, Masibus has the distinction of having developed a unique software programme for the
federal authorities in Florida to help track down the over $1 million worth of laptops stolen in the
US annually. The software won the second best prize in Florida last year, Mr Subramaniam revealed.
Meanwhile, its new strategic partner Navision is a leading global provider of cost effective and
adaptable integrated business solutions and has a client list of over 1.33 lakh customers worldwide, a
global network of more than 2,258 partners and 1,130 employees in over 30 countries.
The second stage which came was the selection of the implementing partner so the company had
then decided to take the official selling agents of the software which was INTECH providers
which is located in the city only, the company also had ensured the implementing partner that the
whole software has to be modified like anything so that in the end there is no problem for the
employees. The benefit which the company was able to gain was that the implementing partner was
the part of the city so they could easily adopt the change.
This was the three days program me by which the company had started for all the employees who
were the key users for the system.

Nalanda, A name out of the glorious past, is carrying with it a timeless legacy of tradition hospitality
and fine living. Not to mention a heritage of class and culture. Where the soothing touch of pink
pastels calms your tired nerves and romance is in the air, right from that moment you walk in.
Suitably located at Ahmedabad's best known posh neighborhood, Navarangpura. Away from the
noise, smoke and bustle of city traffic: yet close to key commercial areas.
Hotel Industry as a whole is always having cut throat competition in which they also have to
differentiate themselves from each other, when we had a talk with the hotel management they
simply said that if there is one error which has occurred for the company then the customer will
never come again so they had to implement this for improvement of their process the main motto
behind the implementation of this ERP is to streamline the process there. Along with that the main
motto also being to beat the competition in front of the hotels which are competing in the city.
Hotels are generally dominated by one of the single supplier which is INTERFACE Company
which is based in Mumbai in which they also are the implementing partners for the hotel. The
company always has a word to say to prove their service as the best.
The company always had a motto to streamline the process so what they did was highly
customization of the product. They basically had a team which was hired to train them they were the
team of external consultants; they were specialized in the ERP implications.

Basic chemicals or "commodity chemicals" are a broad chemical category including polymers, bulk
petrochemicals and intermediates, other derivatives and basic industrials, inorganic chemicals, and
fertilizers. Typical growth rates for basic chemicals are about 0.5 to 0.7 times GDP. Product prices
are generally less than fifty cents per pound. Polymers, the largest revenue segment at about 33
percent of the basic chemicals dollar value, include all categories of plastics and man-made fibers.
The major markets for plastics are packaging, followed by home construction, containers,
appliances, pipe, transportation, toys, and games. The largest-volume polymer product, polyethylene
(PE), is used mainly in packaging films and other markets such as milk bottles, containers, and pipe.
Polyvinyl chloride (PVC), another large-volume product, is principally used to make pipe for
construction markets as well as siding and, to a much smaller extent, transportation and packaging
materials.
Polypropylene (PP), similar in volume to PVC, is used in markets ranging from packaging,
appliances, and containers to clothing and carpeting. Polystyrene (PS), another large-volume plastic,
is used principally for appliances and packaging as well as toys and recreation. The leading man-
made fibers include polyester, nylon, polypropylene, and acrylics, with applications including
apparel, home furnishings, and other industrial and consumer use. The principal raw materials for
polymers are bulk petrochemicals.
Chemicals in the bulk petrochemicals and intermediates are primarily made from liquefied petroleum
gas (LPG), natural gas, and crude oil. Their sales volume is close to 30 percent of overall basic
chemicals. Typical large-volume products include ethylene, propylene, benzene, toluene, xylenes,
methanol, vinyl chloride monomer (VCM), styrene, butadiene, and ethylene oxide. These chemicals
are the starting points for most polymers and other organic chemicals as well as much of the
specialty chemicals category.

Other derivatives and basic industrials include synthetic rubber, surfactants, dyes and pigments,
turpentine, resins, carbon black, explosives, and rubber products and contribute about 20 percent of
the basic chemicals' external sales. Inorganic chemicals (about 12 percent of the revenue output)
make up the oldest of the chemical categories. Products include salt, chlorine, caustic soda, soda ash,
acids (such as nitric, phosphoric, and sulfuric), titanium dioxide, and hydrogen peroxide. Fertilizers
are the smallest category (about 6 percent) and include phosphates, ammonia, and potash chemicals.
Software provider: SAP.

Questionnaires Analysis Part

HDFC STANDARD LIFE INSURANCE.
Number of Employees asked: 20
1) Did ERP implication change your job work?
30%
Yes
70% No
This question in the HDFC banking clearly shows that the employees were forced to change their
working style and working habits which automatically results into the change of KRA for all the
employees.

2) How much time did you take to master ERP after given a proper training?
10%
20%
25% One week

One Month
20%
3 Months
6 Months
25% Rarely mastered
The above mentioned response automatically shows that the in house training which was provided
was not much effective. HDFC standard life insurance has a team which is in house it clearly shows
the in efficiency of the team.

3) Do you still face any problem ERP?
40%
Yes
60%
No
4) What are the degrees of problems which you encounter?
10% 5%
15%
Huge Importance
Very Important
45% 25% Important

Moderate
Less Important
The main impact of the above 2 questions is that the company itself is not taking the pain to know
that, are the employees fit enough to use the service which they are being provided. This it becomes
of the challenge while implementing ERP.

5) Do you prefer ERP then the old system?
45%
55% Yes
No
This question clearly says the main answer to the whole research objective as the people of the
company were not happy with the ERP which was implemented in their company.
After having a look at some the main questions now we can figure out some of the challenges while
implementing ERP with respective to HDFC Standard life insurance they are:
1) Employees Communication: If the employees are not communicated once also then they
are generally not happy with the change which the company is imposing.
2) Effective training: if there is any particular training programme which is being
implemented to the company then they have to ensure that the programme or the module
which is made is user friendly.
3) Lack of customization: When the company is purchasing the SAAS during that time they
should also ensure that the implementing partner should assist them properly about the
customization offered, as in the case of HDFC standard life insurance rarely any
customization was seen.

Kalpataru Power Transmission Ltd.
20%
Yes
No
80%
This question it clearly shows that the employees were not forced to change their working style and
working habits which automatically results not into the change of KRA for all the employees. This
automatically is the signal of approval of the ERP in the organization.

4%
9%
32%
14% One week
One Month
3 Months
6 Months
41% Rarely mastered
The above mentioned responses automatically show that the training which was given by the
implementing partners was good and also they were able to impart the required knowledge to the
employees. This directly shows that the training which is outhouse is much more effective.
30%
Yes
70% No

5%
30% 15%
5% Huge Importance
Very Important
Important
Moderate
45% Less Important
The main impact of the above 2 questions is that the company itself has taken a good efforts to
ensure that the employees are knowing what the things they are suppose to do and how they are
suppose to do. The duration of training itself shows the effectiveness of it.

30%
Yes
70% No
This question clearly says the main answer to the whole research objective as the people of the
company were quite perfect and they were doing the things as per requirements.
After considering all the factors let us now have a look at some of the challenges which may act as
challenge with perspective to KTPL
1) Selecting an appropriate Implementing Partner : If the implementing partner is proper then

the company will never face any problems while doing that.
2) Channel Partners: The channel partners should be proper.

Masibus
30%
Yes
70% No
It is obvious that when you implement something in a working style then you will have certain
kind of changes what you wanted to see before implementing that the company has seen in the
working style because of the ERP. Actually, those who were extremely senior in the company
have got the changes in the working style while on other hand those who were new in the
company did not find any kind changes because before them ERP system already was there.

5% 5%
37%
One week
32% One Month
3 Months
6 Months
21% Rarely mastered
Basically, what company did initially was quite similar to other companies in order to avoid some
kind of burden in terms of expenses lie first they trained the most senior persons who are very much
familiar with the functions so that problems could be found at first stage and after getting training
they will train other persons who are working with them who are seniors but not the like the top
level persons within one month and finally who are not familiar with the system will have a training
time for the 3 to 6 months on the basis of understanding power.

10%
Yes
No
90%
At present what we have seen in the company with the help of concerned person is that most of the
employees in the company have been familiar with the system and while only few persons are facing
problem because still they are not extremely familiar with it but they had also assured us these
uncomfortable employees will be comfortable after few months because of undertaking training
program.

5% 5% 5%
Huge Importance
50%
Very Important
35% Important
Moderate
Less Important
Generally, on the basis of observation we get to see that our employees would be facing a problem
due to the system but it also needs to check the importance of the problems while working on it
rather than shouting in the air without knowing it properly so as per company‟s concerned persons,
company is facing the problems but not that kind of which are extremely important which require to
work on immediately so they are not bothered about it.

15%
Yes
No
85%
Different people, different views you will have when more persons are working on the same system.
Reasons can be many more but the real logic tend to different in thinking. In the company, we have
found more employees who are saying that they are happy with the new system and don‟t want to
get switch over to the old systems because it will be very complicated and time consuming to do it
and moreover, how can we forget the mental stress when you want to change the system which will
take place at work place.

Recommendation
Before presenting our views in this recommendation matter, we would like to express our feelings
on this matter over here. Most of the entrepreneurs know what we need to take care during the time
of implementation but it happens that it becomes so much difficult to act on the recommendation
work. On the other hand, it happens that a particular matter goes out of mind at the time of
implementation. Now hereby we as a group present our recommendation points after making a
healthy discussion with the corporate groups what we have found through the observation and
available information.
Some corporate executive people want to have a competitive system in their own company to lead
in the competition but what happen is they forget to think upon why they actually want this ERP
system because other companies are having so they want it anyhow. It means they themselves are
not clear about their objective. So first think deeply on it and discuss healthy way with your
concerned persons of the company.
It generally happens that top level management takes an important decision on their own way and
applies it as they feel which ignores the contribution of other level departments. So as a group, we
recommendation is to communicate your objective and decision with your internal persons to get
the contribution on it and these are the people who finally will be working on this. It will help the
company to work on the problems at initial stage rather than seeing a conflict game with your
internal people in near future.
Everything is possible, we all know this but how we are doing it matters a lot in your work. Don‟t
apply just sake of applying because other companies are working on it. This time will demand the
more involvement level of the top management because it is a training time and if the management
invests the money behind the training method without working on the training modules, expert
team, training time and how will you deliver it at work place then what will be the value of ERP
system in which company has invested lakhs of Rupees. In short, it is in a company‟s hand to decide
what to do and how to do it?

We all want to run speedily without taking a pause and the management would be keeping the same
expectation from all the departments. For that, management needs to apply the system in a
particular departments where they can easily control the problems if occur rather going live directly
which might not be controllable. By this sample testing, company can come to know the problems
which might be ignored during the discussion time. This will support the company to go live with
the system by rectifying the mistakes so company can run ahead swiftly with the help of all the
departments of the company.
Needs to take care that your will not let your achievement convert into the luck. By this statement,
we want to express that keep an eagle eye on the system of the company and work continuously on
it so management can have information regularly about the working of the system. This will help to
prevent the problems rather than let it convert into the conflicts among the management and the
employees in near future.

Conclusion
We have really learned a lot while putting our sincere endeavor on this project and have also felt that
ERP really helps the company to work speedily and helps to save the time and money if they can use
it in proper way rather just sake of applying it because others are applying in the company. To get
the achievement in this kind of project, 4 things matter a lot are objective, communication, training
and re-working and for this, management‟s involvement is compulsory which is an implied
condition for the achievement in this project rather than let it convert into luck.

Bibliography
1. www.sap.com
2. www.peoplesoft.com
3. www.erpgenie.com
4. www.wikipedia.org
5. www.ebsco.com
6. www.erpsupersite.com

Annexure

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“Leveraging benefits of ERP Implementation and challenges

Submitted to: Submitted by:

Benefits of ERP Implementation | IIPM Ahmedabad 1

Benefits of ERP Implementation | IIPM Ahmedabad 2

Benefits of ERP Implementation | IIPM Ahmedabad 3

 To study about the different ERP modules available

 To study about the need of ERP implementation in organization

 To understand the challenges faced by companies while implementing ERP

 To study about the Pre-implementation and Post-implementation challenges

 To study the changes in the working level after implementing ERP

Benefits of ERP Implementation | IIPM Ahmedabad 4

Sr. No Particulars Page No.

Benefits of ERP Implementation | IIPM Ahmedabad 5

Benefits of ERP Implementation | IIPM Ahmedabad 6

Benefits of ERP Implementation | IIPM Ahmedabad 7

2. for Healthy Operations:

a) Integration of Systems across the Functional Departments in a Company as well

3. Competition in the Market:

Benefits of ERP Implementation | IIPM Ahmedabad 8

4. Demands on the Industry:

a) Better products at lower costs

5. Solving the Problems:

a) Unable to get accurate, timely information

Solving these Problems will the company ahead of competition!

The advantages of ERP

Benefits of ERP Implementation | IIPM Ahmedabad 9

Benefits of ERP Implementation | IIPM Ahmedabad 10

What is that ERP enables?

a) Systematic Look into your Systems & procedures

Benefits of ERP Implementation | IIPM Ahmedabad 11

a) Availability check at the time of Accepting Sales order

What drives ERP?

Benefits of ERP Implementation | IIPM Ahmedabad 12

Inhibitors or hurdles for the growth of ERP market:

Benefits of ERP Implementation | IIPM Ahmedabad 13

Benefits of ERP Implementation | IIPM Ahmedabad 14

ERP’s Central Database

Sales Production &

4. Material Management, etc

Benefits of ERP Implementation | IIPM Ahmedabad 15

6. Manufacturing and production planning

7. Sales and distribution

Benefits of ERP Implementation | IIPM Ahmedabad 16

Benefits of ERP Implementation | IIPM Ahmedabad 17

a) Overhead Cost Controlling.

b. Accounts receivable and payable:

Benefits of ERP Implementation | IIPM Ahmedabad 18

c. Special Ledgers, Fixed Asset Accounting

Consolidated financial statements need to be integrated effectively with operational data ay

Benefits of ERP Implementation | IIPM Ahmedabad 19

a. Overhead Cost Controlling

Many organizations experience a significant increase in the percentage of indirect costs,

b. Cost Centre Accounting

d. Activity- Based Costing

Benefits of ERP Implementation | IIPM Ahmedabad 20

f. Cost Object Controlling

Benefits of ERP Implementation | IIPM Ahmedabad 21

Benefits of ERP Implementation | IIPM Ahmedabad 22

c. Market Risk Management

Benefits of ERP Implementation | IIPM Ahmedabad 23

f. Executive Information System

The Executive Information System provides an overview of the critical information