Professional Documents
Culture Documents
Khagendra Project
Khagendra Project
Khagendra Project
2010
Session: 2010-2011
Guided by:
Vandita jain
Lecturer,
RITEE, Raipur
Department of Management
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DECLARATION
Is prepared, in a lieu of a compulsory paper to be submitted for the partial fulfillment of “master f
business administration”, is my original work.
All the information and data given in the project is authentic to the best of my knowledge and
taken from reliable sourcees.
Place:
MBA-1 ST semester
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CERTIFICATE
This is to certified that Mr.KHAGENDRA KUMAR CHOUHAN student of raipur institute of
technology, MBA 1ST Semester has successfully completed the seminar report on “knowledge
management”,in partial fulfillment of of requirement for the award of MBA Degree prescribed by
the Chhattisgarh Swami vivekanand Technical University, Bhilai.
This report is record of authentic work carried out by the student during the academic
year 2010-2012.
Signature Signature
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ACKNOWLEDGEMENT
It gives me immense pleasure to convey my heart felt appreciation to the institution. I
sincerely thanks RITEE for providing me with adequate knowledge to take on this comlex
but intresting task.
MBA 1 ST Semester
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TABLE OF CONTENTS
1 Preface
2 Executive summary
3 Introduction
4 Evolution of ERP
6 Trends in ERP
9 Challenges in implication
10 People soft
11 Conclusion
12 References
13 Bibliography
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EXICUTIVE SUMMARY
The term ERP originally implied systems designed to plan the use of
enterprise-wide resources.Although the initialism ERP originated in the
manufacturing environment, today's use of the term ERP systems has much
broader scope. ERP systems typically attempt to cover all basic functions of an
organization, regardless of the organization's business or charter. Businesses,
non-profit organizations, nongovernmental organizations, governments, and
other large entities utilize ERP systems.
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CHAPTER 4: METHODOLOGY
This chapter will set the methodological frame for the current study. It will provide an understanding
of the grounds on which the study analyses the research object. This is done by discussing the
nature of the research subject – the organizational change in the police reform. This chapter
discusses the nature of the research object with regards to how research can gain access to
organizational change, knowing fully well that research data in studies of this nature cannot be
collected from the field like picking strawberries. This chapter describes how the research goes
about gaining knowledge of the research subject and further discusses how the study analyzes the
organizational change which given its nature cannot be taken into a lab to determine its nature or be
The discussions on methodology in the following will evolve around and answer to the three
1. Ontological: What is the nature of the “knowable”? Or, what is the nature of “reality”?
2. Epistemological: What is the nature of the relationship between the knower (the inquirer)
These questions will be discussed throughout the chapter. Yet not with the rigidity of Guba (1990)
given the nature of the current thesis and the research study. The scientific theory position in the
current thesis will be discussed and framed in the chapter without labeling the research with a
The chapter sets out by describing the nature of change management in the police reform as a
research object. Then it describes the methodology which has been used in the research to gain
knowledge of the research subject. These operational methodological concerns then lead to a
discussion on how to draw research based conclusions and a further discussion on the usefulness of
Introduction
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The term ERP originally implied systems designed to plan the use of
enterprise-wide resources. Although the initialism ERP originated in the
manufacturing environment, today's use of the term ERP systems has much
broader scope. ERP systems typically attempt to cover all basic functions of an
organization, regardless of the organization's business or charter. Businesses,
non-profit organizations, nongovernmental organizations, governments, and
other large entities utilize ERP systems.
ERP integrates the functional modules tightly. It is not merely the import
and export of data across the functional modules. It integrates all data and
processes of an organization into a unified system. A typical ERP system will
use multiple components of computer software and hardware to achieve the
integration. The integration ensures that the logic of a process that cuts across
the function is captured genuinely. This in turn implies that data once entered in
any of the functional modules is made available to every other module that
needs this data. This leads to significant improvements by way of improved
consistency and integrity of data.
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ERPs are often incorrectly called back office systems indicating that
customers and the general public are not directly involved. This is contrasted
with front office systems like customer relationship management (CRM)
systems that deal directly with the customers, or the eBusiness systems such as
eCommerce, eGovernment, eTelecom, and eFinance, or supplier relationship
management (SRM) systems.
Modules in ERP
Ideally, ERP delivers a single database that contains all data for the
software modules, which would include:
Manufacturing:
Financials:
Projects:
Human Resources:
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Data Warehouse:
Why ERP?
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But after the introduction of ERP, the ERP software, among other things,
combined the data of formerly separate applications. This made the worry of
keeping numbers in synchronization across multiple systems disappears. It
standardised and reduced the number of software specialities required within
larger organizations.
Evolution of ERP
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ERP
MRP II
CL MRP
MRP
BOMP
Beginning of
Hierarchical
Data Base
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When there is much hype around it is also equally important to trace the
origin of ERP and its Predecessors.MRP1 the acronym of material resource
planning was the first business application that set foot in the ERP family. The
credit of computerizing the business processes solely goes to MRPI.MRP1
functioned with the objective of increasing the business profit by enriching the
business. It is important to know the problems faced by companies before
understanding how Material resource planning solved them. MRP software was
a boon to companies facing troubles in production. MRP planning facilitated the
functions of the software.
MRP1
Dr Joseph Orlicky invented MRP1 in the year 1960.This system
comprised a computer that helped to compute the exact quantum of raw
materials and sales. This point proved to be the start for integrating IT with
manufacturing Systems. Ever since they have become inseparable after
advancements in the name of MRPII and ERP while the latest one being
ERPII.MRP planning is the crux of MRP software.
Nature of functioning
MRP1 works like a simple mathematical formula. If all the inputs are fed
in one end and the calculations are applied the output is received at the other
end. Input here reefers to the quantity of raw materials and expected demand
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Applications
MRP's application in the working environment is wide in nature. It just
doesn't limit to production. It can calculate each and everything related to
production. The functioning of MRP1 is quiet diverse and it can be put to use in
many industries.
MRP was in existence right from the year 1960. MRP II otherwise
referred to as manufacturing resource planning enabled to overcome the setback
of MRPI the acronym of material resource planning.
The analysis of MRP 1 reveals that it is made on the basis of finding out
the quantum of materials that have to be given inorder to gain the said optimum
productivity levels depending on other parameters like production capacity and
factors. The MRP systems were in existence before ERP technology was
invented.
MRP II was developed with all the features of MRP I .There were also
some other elements in addition to those contained in MRPI.
Key Elements
In addition MRP II boasts of the following four elements. These give the
added advantages and differentiate MRP I from MRP II.
Response
The significant feature of MRP II is the fact that the lay man in the
industry will be able to realize its effects and hence be able to comment on the
working. Any process is bound to achieve progress if and only it receives
valuable criticism from reliable sources and more so preferably from end user.
MRP II capitalizes on this advantage mainly .This response is not restricted to a
particular section of employees. Everybody will be asked to pass their
opinion .The response will therefore include all the views. This will help greatly
in correcting the progress from one process to another. This is deemed to be
effective as it gathers the response and the necessary corrections are made then
and there. Still the MRP Systems cannot out beat ERP Technology.
Allocating reserves
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The system of MRP helps to maintain a neat agenda for the manner in
which the resources are to be allocated without any confusions and khais. This
means everybody will know what is expected from them within the stipulated
deadline. Any discrepancy between the actual time taken and the one allotted is
likely to affect the effectiveness of this operation.
Popularity
MRP II has not yet lost popularity inspite of the intervention of
ERP.Many organizations still consider it as a part of the manufacturing process.
MRP systems are still in vogue in many industries and the manufacturing sector
deserves special credit in this aspect.
Advantages of ERP
There are a number of powerful advantages to Enterprise Resource
Planning. It has been used to solve a number of problems that have plagued
large organizations in the past.
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1. Efficiency:
2. Design process
3. Order tackling
4. Accounting application:
5. Manufacturing:
6. Security:
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Disadvantages of ERP:
However, with all the advantages that ERP offers, there are a number of
disadvantages as well.
1. High investment
2. Cost of training:
3. Alteration:
Most ERP vendors will not allow the structure of the software to be
altered. One advantage to ERP is that making the necessary changes to
use it may actually make a company less competitive in the market. In
addition to the costs involved with implemented ERP and training
workers to use it, the ERP vendors may charge additional license fees,
putting a strain on companies that do not have enough resources to pay
for them.
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Trends in ERP
Flexible ERP:
First, the ERP software packages that were the mainstay of ERP
implementations in the 1990’s and were often criticized for their inflexibility,
have gradually been modified into more flexible products. Companies who
installed ERP systems pressured software vendors to adopt more open, flexible,
standards-based software architectures. This makes the software easier to
integrate with other application programs of business users, as well as making it
easier to make minor modifications to suit a company’s business processes.
Web-enabled ERP:
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into ERP systems. These features make ERP systems easier to use and connect
to other internal applications as well as to the systems of a company’s business
partners.
Interenterprise ERP:
E-business suites:
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Consulting Services:
The consulting team is also responsible for planning and jointly testing
the implementation. This is a critical part of the project, and one that is often
overlooked.
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business processes and matches them to the corresponding processes in the ERP
system, thus 'configuring' the ERP system to the organization's needs. Technical
consulting often involves programming. Most ERP vendors allow modification
of their software to suit the business needs of their customer.
For most mid-sized companies, the cost of the implementation will range
from around the list price of the ERP user licenses to up to twice this amount
(depending on the level of customization required). Large companies, and
especially those with multiple sites or countries, will often spend considerably
more on the implementation than the cost of the user licenses -- three to five
times more is not uncommon for a multi-site implementation.
Customization Services
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the customization and the 'one off' aspect of the work, it is common to pay in
the order of $200 per hour for this work. Also, in many cases the work delivered
as customization is not covered by the ERP vendors Maintenance Agreement,
so while there is typically a 90-day warranty against software faults in the
custom code, there is no obligation on the ERP vendor to warrant that the code
works with the next upgrade or point release of the core product.
Once your system has been implemented, the consulting company will
typically enter into a Support Agreement to assist your staff to keep the ERP
software running in an optimal way. To minimize additional costs and provide
more realism into the needs of the units to be affected by ERP (as an added
service to customers), the option of creating a committee headed by the
consultant using participative management approach during the design stage
with the client's heads of departments (no substitutes allowed) to be affected by
the changes in ERPs to provide hands on management control requirements
planning. This would allow direct long term projections into the client's needs,
thus minimizing future conversion patches (at least for the 1st 5 years operation
unless there is a corporate-wide organizational structural change involving
operational systems) on a more dedicated approach to initial conversion.
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such as ERP is a major challenge. Almost all the members of the organization
should get the excitement about ERP project implementation. Communicating
and sharing of the ERP vision is the most important organizational preparation
for a successful ERP implementation.
Features of ERP
Some of the major features of ERP and what ERP can do for the business
system are as below:
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ERP implementation cost can be divided into one-time costs and ongoing
annual costs. Both types of costs can be segmented into hardware, software,
external assistance and internal personnel.
Reengineering
43%
One-Time Costs
Software:
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Hardware:
External Assistance:
Internal personnel:
Software:
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The upgrade path for new releases of the ERP software package is
critical. New releases contain enhancements for functionality and bug fixes, and
ensure that the software runs on the latest technology platform. From the user’s
point of view, the upgrade path enables the manufacturer to take advantage of
hundreds of labour-years of development efforts undertaken by the ERP
software vendor with minimal investment. From the vendor point of view, it is
much easier to support users to the latest releases. However, user changes to
sources code and other user customizations can make it very expensive or even
impossible to upgrade.
Hardware:
External assistance:
Internal personnel:
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Strategic Planning is "a deliberate set of steps that assess needs and
resources; define a target audience and a set of goals and objectives; plan and
design coordinated strategies with evidence of success; logically connect these
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strategies to needs, assets, and desired outcomes; and measure and evaluate the
process and outcomes." Part of ERP software systems is designed to support
resource planning portion of strategic planning. In reality, resource planning has
been the weakest link in ERP practice due to the complexity of strategic
planning and lack of adequate integration with Decision Support Systems
(DSS).
A, Phased-in approach:
Ex; Russ Berrie & Co, basically a teddy bear maker had failed
installation of Packaged ERP applications but after rolling out J. D. Edwards
& One World Xe suite of ERP. They succeeded. The reason for the success
was the following of phased-in approach.
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D, Slow process:
E, Effective testing:
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ERP in VIT
Student
Marks Attendance
records
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ACADEMIC ADMINI-
STRAT ION
EXTERNAL
FINANCIALS
ASSOCIATION
1. Convincing people:
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2. Techno stress:
3. High cost:
4. Return on Investment:
Critical success factor for ERP including readiness to invest in high risk,
high reward project.
In the other words, a company must implement ERP only if it brings high
return. Therefore a company must seek high renewal process.
5. Downsizing:
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PEOPLESOFT
History
Product design
The whole software suite of PeopleSoft moved from the traditional client-
server based design to web-centric design, called PeopleSoft Internet
Architecture (PIA) with their version 8 releases. The end result was that all of a
company's business functions could be accessed and run on a web client. A
small number of security and system setup functions, though, still needed to be
performed on a fat client machine. The inherent nature of Internet-based
applications allowed for a straightforward transition from a client-server model.
One important feature of PeopleSoft's PIA is that no code is required on the
client - there is no need for additional downloads of plugins, or JVMs such as
the Jinitiator required for Oracle Applications.
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J.D. Edwards
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Oracle Corporation
Oracle is, however, offering to maintain support for the existing Oracle
and PeopleSoft product lines for customers who wish to continue with what
they have. The line they are taking appears to be an attempt to prevent customer
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PeopleSoft in use
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(Pacific Partners), led them to believe that such a formal analysis was
unnecessary.
PeopleSoft timeline
1999: Craig Conway named new CEO; release products to enable Internet
transactions.
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Some Recommendations
Planning
1. Know your goals for your ERP implementation. Choose the product that
promises to meet those goals and put measurement tools and processes in place
to gauge your success. In particular set goals for performance, response time
and downtime.
3. Involve users in your ERP project planning phase. The software is not going
to do you much good if you don't have employee buy-in.
4. Don't do the planning and implementation alone if you don't have the in-
house skills to make it happen. Determining which options and features to use
requires experience. If the in-house team doesn't have that experience finds a
local ERP expert who is trustworthy and who collaborates well with your team.
6. Don't keep adding to your project. In the planning and evaluation stage,
people see the capabilities of products and want to use each new one they
discover. Commit to what you want to do initially. Get your return on
investment and then expand. Otherwise, you'll have a never-ending and
unsuccessful project.
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7. If you'd prefer the hosting model for your ERP, then scrutinize your
application service provider (ASP) well. First of all, you must be able to trust
this ASP with your data. Find out if that hosting company provides cookie
cutter solutions or can customize the ERP suite to fit your needs. Many
outsourcers don't know enough about ERP to customize it. Then again, if a
cookie cutter solution is okay for you, then fine, use an outsourcer and you don't
have to take care of your ERP.
8. Hosting should take out a lot of internal costs of labor. It should save you
money…by spreading payments over a period of time. You should be paying
less over a period of time for hosting than you would do it yourself. If you're
not paying less, don't use an ASP, he said
Evaluation
10. Look closely at maintenance costs. You can pay a great purchase price and
find that it costs a fortune to maintain.
11. Evaluate your processes and decide if changing them to fit a particular ERP
suite would be beneficial. Either you're looking for customization or going for
out-of-the-box. With the latter, people have to change how they do things in
order to conform to the package. That may work for a company that needs to
make changes anyway. Often, however, it's better to choose a suite that can
conform to your needs.
12. Discuss a vendor's stability with the vendor reps and outside experts. Find
out if the company is losing market share, which might make it a candidate for a
takeover or failure.
13. Whenever a company and its ERP package are acquired, it's not usually
good news for the customer. Often, the vendor is buying the client base and is
not that interested in the software itself. Instead, they'll try to get clients to move
to their own platform. In this situation, customers may have to migrate without
good business reasons.
14. Get empirical evidence of return on investment from the vendor and/or a
consultant. Also, simulate the ERP suite in your company and make your own
calculations.
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15. Get vendors to come clean about their upgrade cycles. Once they get you as
a customer, their goal is to sell you new features and upgrades. You want a
company that upgrades and adds necessary features and doesn't lock you into an
expensive upgrade cycle.
16. Find out how much customization assistance the vendor will offer. If you
customize the ERP package to fit your business scenarios without vendor
support, you can limit your support options from that vendor down the road.
17. Be efficient in contract negotiations. Don't spend too much time analyzing
details to the Nth degree. If vendor can answer 25 critical questions and give
most of what you want, you're going to be in good shape. Focus more on critical
items to get through negotiations more quickly.
18. You can't get everything you want. Do accept that there is always going to
be a functionality gap. Usually, you have to let 10% go. If the gap is more than
10%, keep shopping.
19. Pay attention to the quality of your data and the daily workflow. This is
especially important during the transition time after implementation and during
periods when your business is changing or growing. Watch for seasonal
variations, too. For example, Christmas can cause big jumps in data volume for
a retail company.
20. Don't sign up for long training sessions. Instead, do some initial, condensed
training on your own site, and then set up a regular class schedule that gives
users time to learn before they move on. By the time the class is over, the
trainees have forgotten the first half of the lessons.
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Conclusion
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References
www.wikipedia.org
www.ebsco.com
www.peoplesoft.com
www.erpsupersite.com
" http://findarticles.com/p/articles/mi_m4153/is_6_57/ai_69759746/
http://www.roseindia.net/blog/2008/01/04/erp-inventory-
management/
http://en.wikipedia.org/wiki/Inventory
http://www.google.co.in/images?hl=en&gbv=2&tbs=isch
%3A1&sa=1&q=inventory+management+form&aq=f&a
qi=&aql=&oq=&gs_rfai=&start=0
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BIBLIOGRAPHY
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