| xtile lock y ‘AConprnensve Pbleren fore Tat Ape MS Technical Article Use of Enterprise Resource Planning (Erp) in Textiles Mohammad Sazzad Hossain Lecturer Dept. of Texte Technology Absamullsh University of Science and Technology ( ABSTRACT: Enterprise Resource Planning (ERP) is the latest high-end solution provided by information technology for business application. Globalization has led to increase in competition and quality awareness and therefore it has become very important for the textile industry of Bangladesh to integrate itself with information technology to survive. To sustain competitive advantage, companies must re-examine and fine-tune their business processes to deliver high quality goods at very low costs. ERP is an integrated system that allows information to enter at a single process & updates a single shared database for all funetions that directly or indirectly depend on this information. ERP solutions came into existence in corporate world due to various problems faced in Management Information System (MIS), Integrated Information System (IS), Executive Information System (KIS), Corporate Information System (CIS), Enterprise Wide System (EWS), and Material Requirement Planning (MRP), Manufacturing Resouree Planti (MRP I). This paper deals with the functions of ERP, Necessity and benefits of ERP system. Challenges of aligning ERP with textile processes, taxonomy of textile ERP system, Development of ERP system, Existing ERP systems, ERP system providers, ERP system Implementation, simply to understand - ERP system organizes all of the companies information into one centralized system, which is always available. KEYworDs: Textiles, Enterprise Resource Planning, Apparels, e-Business, DATATEX, TIM, AREL, ABAS, Dye House Controller, Dispensing controller. (deribeve) INTRODUCTION: Eaterprie Resource Phang ers wo the inteyration and extension ofa business's operations IT systems, withthe end yoal of ‘making inormation fw win and beyond) a company more immediate and dyransc; increasing the wefuhess of infomation, ccliminating redundancy; and automating routine processes and making information system components more flexible. In every sector of our texte buses, the market is forcing companies to stay competive by taking proactive steps to improve ‘operations. In the pursuit of profilable growth, mills are looking for new strategies to improve the quality, cut costs, respond silly to changes ia customer demands and vagaries in raw material supply poston, expand gobaly, develop new distbution channels and forge new value-added relationships wih suppliers and customers. With the increase in competion and qual awareness wibin and ouside Banghdesh, no developing and progressive indwty would be able to survive for ong wat application of Faterprie Resource Phning (ERP). I plans and conto’ various operations right fom the purchase up to seling ofthe product.‘There are many slacks in use of manpower, energy, fel, textile raw material, and other processing materials in texte industry, It hrlps inthe optimal uses of mamufictuing resources. It reduces the wastage of the raw materials. Higher qualty of product is oblained by using it. ERP vanquithes the ol standalone computer system in Finance, HR, Manufacturing, Warehouse, and replaces them with a single unilied software program dived into software modules that roughly approximate the old standalone systema 2, DEFINITION: [ERP can be defined as un accountng oriented information system for denfilying and planning the enterprise wide resources needed to take, make, ship and account for customer order. An ERP system differs fiom the typical MRP-II system in technical requirements such as @ graphical user icterfice, relational database, use of fourth generation language and computer assisted software cngnocring ook in development, client server architecture, and open-system portabilty [1] iit Marufactuing [Purchasing Finance | Ehaneorie Exccution System i i Urey Ang, wash quoebe ey ENTERPRISE RESOURCE| PLANNING SYSTEM. Product Data | [Business vanced Manoganent | | iteigance | | Planning and Schering | TAXONOMY OF TEXTILE INFORMATION SYSTEM. [ERP isan industry term for the broad set of activites supported by muli-module application software that help a manuficturer ot other business to manage all the parts ofits business. ERP ciliates integration of company-wide information systema with the potential to go across companies. It provides software for text industries ofall kind. I helps in the planing for optiniing and scheduling of production orders, More generally, method fr the eféctive planning end control of sll esources needed to take, ‘make, ship and account for customer orders in @ manufscturing distribution, or service company. ERP is the conection between the plat foor and the supply chain. The Taxonomy of infametion system for texte can be shown as below: [4] 3. NEED OF ERP IN INDUSTRY: [ERP was coined as an extension of the concept of Manuficturng Resource Plaming (MRP) software, which automated the process ofkeeping « munuficturing Ine supplied with materials to meet incoming orders, ERP covers the techniques and concepts employed for the integrated management of business as @ whole with objectives of effective use of management resources to inprove the effciency of the organization. This system is designed automate many ofthe basic processes of the company from thefinance to the shop or with a goal of integrating information across the company and eliminating complex expensive links between compuler systens. It produces the dramatic improvements of an organization and integrates i various processes, Thus, it gives better products and better services at affordable prices. (9) 3.1 WHY ERP IN TEXTILE INDUSTRY: Textile manuficturing revolves around three entities: customers, banks and suppliers. A customer gives a sales order to the company and these forms the basis for production planning. Raw material is purchased and dispatched to the milk. Receipts andl ‘payments are made through banks. Before the ERP deployment, most of the work was done manually resuling in isuecuracies: both incorrect and missing entries. With the new system, ERP has enabled accountability, accuracy, and transparency without breaking the existing workflow. For texte products organizations, ERP provides capabilies that help optinve the entire supply chan, fom product design and configuration to preliminary planning and order processing, capacity planing, production and delvery. By streamlining processes and delivering enbanced insight into costs, the solition enables companies in the mill products industry to succeed in today’s rmurketphce by ficiating characteristics lke: Quality Management, Production Management, and Order Confireation with Avuiable-to-Promise Check, Accounting, and Transportation. 3. EXAMPLES ERP IN INDIAN TEXTILE INDUSTRY: Madura Coats, the Rs 750-crore India subsiliry of UR’s Coats Pl, the work's ading sowing threads, crafts aed acessories ‘manuficturer wih 22% plobal marketshare and operations in 67 cours. In Tia, it operates trough i two divsions-Coats India and Global Thread Supply Inistry (GISI) - employing round 7,000 people. Headquartered in Bangalore, the company hus cight manuicturing locations i India and an office in Dubai. It ses Rameo's IT sobsion in GTSI, Water Mil an importa dye howe in Coats Ind) and atthe group head ofce. Coats ft the nced for an ERP inorder to bringin an iterated enterprise management software system adequate for all busivess activites. The legacy appbcations but ito the existing system led to ‘various problems such as redundant information management, soaring data mainterance costs, lack of coordination ammong various busines finctions, Post the rollout of Ramo's ERP, Coats India accrued wide ranging benetts such as higher productivity, improved delvery performance minimal IT mistenance, and an integrated IT envronmest [10](13] 4. BENEFITS: In the absence of an ERP system, a large mamuftctwer may find self with many software applications that do not tak to each other and do not effectively interfive, Tasks that need to interface with one another may invoive: 1. Design engineering (how best to make the product) 2, Order tracking Som acceptance through fllment 3. The revenue eyele fom invoive through cash receipt. 44, Managing interdependencies of complex Bill of Material 5. Tracking the 3-way match between Purchase orders (What was ordered), Inventory receipts (what arrived), and Costing (what the vendor invoiced), ‘The major benefits of ERP are improved coordination across functional departments and increasod efficiencies of doing business. Tre implementations of FRP systems help to fciiate day-to-day management as well Some of characteristics of ERP are: [8] 1, Single Point of Entry - Data only entered atthe source of that data 2. Everyone has the same data - Single source of truth 3. Historical and authoritative data 4 Immediate information S.lmproved Visbilty into all areas ofthe company ‘The combination of all these characteristics can provide kts of benefis in tems of tangible and intangible meaning as sbown below: 4.1 TANGIBLE BENEFT 1. Greater and effective contol on accounts payable through better invoicing and payment processing, 2, Reduction in paperwork because of online formats for entering and receiving information and improved cost control. Single write, multi tead dara. 3. Quicker response and flow up with customers, 4, Availabilty of accurate information wit detailed content and better presentation timely Better monitoring and quicker resohiton of queries from within and outside. 6. Quick response to change in business operations and market consumption.7. Lmproved business processes providing a competitive advantage. 8, Improved supply demand inkage with remote locations and branches in other counties. 9. Untied customer dacabase usable by all applications. 4.2, INTANGIBLE BENEFITS: 1. Improved customer service and satisiction, 2. Increased flexi in operations. 3. Improved resource utility, reduced quality cost and information accuracy, 4. Improved decision making processes due 10 availabilty oF online information, | Next Page