INTRODUCTION OF ERP

AND
ITS USAGE

ERP
In its most simplest form can be
explained as an attempt of
INTEGRATED COMPUTERISATION
OF ALL THE ACTIVITIES IN AN
ORGANISATION
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Area of Computerisation in an
Organisation

Financial Activities
Material Management and its procurement
Project Planning and Monitoring
System Maintenance
Sales and Marketing
Quality Management and assurance
Human Resource Development & Payroll
Business Intelligent Warehousing
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Financial activities
Accounts Receivable
Payment Collection from Customer & Other
Sources

Account Payable
Supplier Payments, Customers payments etc.

General Ledger
Financial Statements
Trial balance, Balance Sheet, P & L accounts

Financial Reconciliation of transactions with

Bank and other institutions

Asset Accounting
WIP, Capitalization and Depreciation

Financial activities
Profit Center Accounting

Service-wise Profitability at SSA Level.

Cost Center Accounting & Internal Order

Cost accounting as per requirement of Cost Audit

Funds Management

Budget Allotment

Financial activities
Present Status
DotSOFT Package
In house developed packages for computation
and preparation of financial statements
Other locally developed software

Material Management and

Procurement

Maintenance of Vendor Details

Vendor evaluation / Rating
Open Tender
Local Purchase through Imprest and
Advance
Invoice verification
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Material Management and

Procurement
Goods Movements
Goods Receipt,
Goods issue
Transfers / Diversion,
Reservation
Project,
Maintenance,
Cost center
Physical stock taking
Periodic (Monthly / Quarterly / Half yearly / Yearly)
Perpetual (As & When)
Difference posting
Inventory reports and Analysis

Material Management and

Procurement
Present Status
Inventory Management system
Other locally developed softwares

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Project System and Monitoring

System to take care of the planning, Installation
and Commissioning activities of all types of
Projects

Landlines (Indoor & Outdoor)

Transmission
Mobile
IT
Civil
Electrical
External Projects
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Project System and Monitoring

Project Initiation
Justification,

Project Approval & Sanction

Based on the delegated Power

Project Planning

Project definition
Structure Planning
Cost Planning
Budget planning
Date Planning
Material Procurement Planning
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Project System and Monitoring

Project Execution
Project Release
Budget Updates
Rescheduling and Actual Dates
Material Procurement and Service Processing
Project Monitoring and Control

Project Reporting
Project Closure
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Project System and Monitoring

Present status
DotSOFT Package
Other Local packages

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System Maintenance
Maintenance of Equipment and infrastructure
Switching ( All Switches).
IT( Dot soft, LNMS, Call center, Internet, NIB)
Transmission ( Transmission Sys, MLLN , Leased
Line, MPLS) .
External ( Cable & equipment maintenance).
Civil ( Duct Maintenance, building and all civil
Works).
Electrical ( All Electrical equipments)

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System Maintenance

Bill of Material in System Maintenance

Maintenance Task Lists
Maintenance Orders
Maintenance History
Service Management

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System Maintenance

Present Status
DotSOFT
TWARIT

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Sales & Marketing

Marketing activities
Market survey
Data analysis for effectiveness of marketing action

Sale activity
Retail Sales

ITC
Mobile Prepaid, Recharge Vouchers
Sancharnet, Webphone
Other items (as Directory, forms etc)

Bulk Sale
IN Services (ITC, etc.)
Leased Circuits

Customer Projects
Institutional Sales

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QM - Scope

Vendor Development & Certification

Acceptance Testing
Inspections
It has the component in
Material Management
Project Systems

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Human Resource Development

Orgnization Management
Personnel Administration
Recruitment
Personnel Development
Apraisals
Career and Succession Plan

Training & Event Management

Time Management
Travel Planning
Payroll
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Human Resource Development

Present Status
HR Package
CTMS

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Need for Software System for

BSNL
Computerise the various activities of BSNL
such as

MM and Inventory
Human Resource, Pay Roll
Finance and Assets, Funds Management
Equipment Maintenance
Project Monitoring and Management
Marketing & Sales

Meet the rapid changing requirement of an

organisation
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Possible Options
In house development
Development of Software Module to meet each
functional requirement
Development of Integrated Software covering all the
modules

Standard Software Products

Module wise Software
Integrated Software

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In-house Development
Isolated Module Development
Focus on functions
Application Developed over a period of time keeping
in the view of different Corporate Requirements
Requirement of reconciliation for different software
modules
Inconsistent and Redundant Data
Continuous updation of Interfaces

Interfaced System and Not an

Integrated System

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In-house Development
Integrated Software System
Long Gestation Period for Development 3 to 5 years
Large Deployment Time only in-house team can
deploy the solution
Comprehensive knowledge of the entire organisation is
required
Platform Dependent
Development dependent on the limited knowledge of the
Development Team
Needs full fledged Centralised Development Team and
Distributed Support Teams
No vision for best business practices
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Standard Software Products

Isolated software packages for
implementing different functional
requirement
Requires Development of interfaces and Constant
updation with each version change

Integrated Solution for meeting all the

functional requirements

the standard E R P solution

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Definition of ERP
Enterprise
Is an entity where Business Activities are conducted profitably

Resource
Various Resources available within an enterprise such as,
Finance, Materials, Manpower, Equipment, Facilities and
infrastructure etc.

Planning
Activity to optimize the utilisation of resources

ERP attempts to integrate all departments and

functions of a company into a single system that
can serve all departments' needs.
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An extensive change mangement concept ensures

the acceptance and motivation of the end users
communi+
cation

skills

tools

+ incentives + action plan

= real change

+ communi- +

skills

tools

+ incentives + action plan

= confusion

vision

skills

tools

+ incentives + action plan

= rejection

vision

+ communi- +

tools

+ incentives + action plan

= fear

vision

+ communi- +

skills

+ incentives + action plan

= frustration

vision

+ communi- +

skills

tools

vision

+ communi- +

skills

tools

+ incentives +

vision

cation

cation

cation

cation

cation

+ action plan

= slow change
= chaos
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Change Management Proposed

Material Management
Inventory Management
Merger and Rationalisation of Stores

Procurement (as per procurement Manual)

Tender to be floated by MM cell in the SSA/Unit
PO to be given by only MM cell in the SSA/Unit
Identification of tenders to be floated at Circle level and at
SSA level

Plant Maintenance
Maintaining of spare inventory
Managing the maintenance of the equipment similarly
as customer services are maintained through FRS
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Change Management contd

Sales & Distribution
Formation of Sales Organisation
Formation of Sales Organisation of SSA
Guidelines for retain sales of services in the SSAs
Guidelines for the propagation of tariffs

Business Development
Formation of BD cell in the SSA
Guidelines for BD cell turnkey projects
Guidelines for BD cell periodic services periodic billing/AMC

Human Resources
Skill Management

Finance & Controlling

Implementation of cost based accounting
Implementation of service beased separation of accounts
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Additional Functionalities
Convergent Billing
Additional Modules

E-tendering
Implementation of the integrated billing
and customer care system

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Policy Issues
FICO
New set of accounts
Creation of Consumption Accounts
Cost and Revenue distribution across Profit Centers
(for Expd, salaries, Cost center, etc)
Interface between Dotsoft & Keenan
Accounting of service connections

System for booking Actual Overhead on Projects

HR
Payroll Period (Mar-Feb or Apr-Mar)
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