CPP Assignment-6

Synopsis
Scope of the Project
This microproject aims to explore the implementation of an Enterprise Resource Planning (ERP)
system within an organization. The project will cover various aspects of ERP system
implementation, including information gathering, analysis, and the creation of a guide/manual
for the process. It is designed to provide insights into the key steps and considerations involved
in adopting an ERP system and its potential benefits.

Introduction
Enterprise Resource Planning (ERP) systems are integral to modern businesses, helping them
streamline their operations, manage resources efficiently, and improve overall productivity.
Implementing an ERP system can be a complex and resource-intensive endeavor. This
microproject will delve into the various stages involved in ERP system implementation, from
information gathering to analysis, and aim to produce a comprehensive guide/manual to assist
organizations in their journey.

Literature - Information Gathering Tool:

To begin the project, extensive literature review will be conducted to understand the concepts,
best practices, and challenges associated with ERP system implementation. This phase will
involve studying academic papers, industry reports, case studies, and relevant books and
articles. This information will serve as a foundation for the project.

Study of Existing System:

The next step involves studying the existing systems and processes within the target
organization. This assessment will help identify areas that can be improved through ERP system
integration. This phase may include reviewing current software, data management, and
operational workflows.
Onsite Observation:
Onsite visits to the organization will be conducted to gain a firsthand understanding of their
operations. Observations will provide valuable insights into day-to-day processes, user
interactions, and specific challenges faced by the organization.Guide/Manual Creation:
Based on the gathered information, a guide/manual for ERP system implementation will be
developed. This guide will outline the necessary steps, from selecting the right ERP solution to
the post-implementation phase, addressing common challenges, and offering best practices.
Creating a comprehensive manual or guide for an ERP (Enterprise Resource Planning) system
can be a complex undertaking, as it typically involves various modules, processes, and
customization specific to your organization. Below, I'll provide an outline of the key sections that
a typical ERP system manual or guide should include. You can expand upon these sections based
on the specific ERP system you are using and the needs of your organization:

ERP System Manual/Guide

1. Introduction

- Purpose of the Manual/Guide

- Target Audience

- ERP System Overview

2. Getting Started

- System Access and Login

- User Roles and Permissions

3. Navigating the ERP System

- Dashboard Overview

- Menu Structure

- Search Functionality

4. Modules and Features

- Overview of ERP Modules (e.g., Finance, HR, Inventory, Sales, etc.)

- Detailed Explanation of Each Module

- Feature Descriptions and Functions

5. Data Entry and Management

- Adding, Editing, and Deleting Records

- Importing and Exporting Data

- Data Validation and Integrity

6. Workflows and Business Processes

- Descriptions of Common Workflows (e.g., Purchase Orders, Invoicing, Payroll)

- Step-by-Step Instructions for Key Processes

 - Integration with Other Systems

7. Reporting and Analytics

- Running Reports

- Customizing Reports

- Data Visualization and Dashboards

8. Customization

- Configuring User Preferences

- System Settings and Options

- Tailoring the System to Your Organization

9. User Support and Troubleshooting

- Contact Information for Support

- FAQs and Troubleshooting Tips

- Known Issues and Solutions

10. Best Practices

- Recommendations for Efficient Use

- Data Security and Privacy Guidelines

- Performance Optimization

11. User Training

- Training Resources

- Training Schedule

- Training Materials

12. Glossary

- Definitions of Key Terms and Acronyms

13. Appendices

- Additional Resources (e.g., Links to Online Help)

- Forms and Templates

- Sample Workflows

This is a general framework for an ERP system manual or guide

 Analysis:
The analysis phase involves synthesizing the gathered information, onsite
observations, and expert insights to provide a clear understanding of the
organization's ERP system needs. This will help in the selection of the most
suitable ERP solution and in the development of a tailored implementation plan.

Design:

Customer

Employee
External Suppliers
Entities

Managemen
t

ERP System

Inventory Procurement Sales & Marketing Financial HR(human Resources) Accounting

Inventory Supply Goods Place Order Access Report Employee Data

sdsssSupplyS
uppProcurem
 Sales Data Data Inventory
Respiratory Update

Purchase Data HR Data

Data Respiratory

Customer Employee Financial

Information Records Transaction

Algorithm/Pseudo code
1)Initialize ERP System

2)Repeat

I. Display Main Menu

II. Read User’s choice

3)Switch(user’s choice)

Case1: Procurement Module

I. Display procurement menu
II. Read user’s choice within procurement module
Switch (user’s choice within procurement moduel)

Case1: Create Purchase Order

I. Gather supplier information

II. Select items to purchase
III. Generate purchase order
IV. Save purchase order in the system

Case2:Receive Goods

I. Receive shipments from supplier

II. Update inventory
III. Records goods receipt in the system

Case3: View Purchase orders

I. Display a list of existing purchase order

II. Allow user to select a specific purchase order for viewing
III. Display the details of the selected Purchase order

Case2: Inventory Module

Display Inventory Menu

Read user’s choice within Inventory Module

Switch(user’s choice within Inventory Module)

Case1:Check inventory levels

I. Display current inventory level for all items

Case2:Add inventory

I. Input item details and quantity and Quantity to add

II. Update inventory records

Case3:Adjust Inventory

I. Select item to adjust

II. Input adjustment quantity and reason
III. Update inventory Module

Case4:Return to main menu

I. Exit the Inventory Module

Case3: Sales Module

II. Display Sales Menu
III. Read user’s choice within sales module
IV. Switch(user’s choice within sales module)

Case1: Create sales order

Select customer

I. Add items to the sales order

II. Calculate total amount
 III. Generate sales order
IV. Save sales order in the system

Case2: Process Shipment

Select item to ship

I. Update inventory
II. Record shipment in the system

Case3: view sales orders

I. Display a list of existing sales orders

II. Allow user to select a specific sales order
III. Display the details of the selected salees order

Case4: Return to main menu

I. Exit the sales module

Case4: Financial Module

Display financial menu

Read user’s choice within financial module

Switch(user’s choice within financial module

Case1: Record financial transactions

II. Input transaction details reports

III. Update financial records

Case2: generate financial reports

IV. Select the type of financial reports(eg: income statement)

V. Generate & display the selected Reports

Case3: return to main menu

VI. Exit the financial module

Case5:HR Module
Display HR Module

Read user’s choice within HR module

Switch(user’s choice within HR module)

Case1: Employee Management

VII. Add, Update or remove employee payroll

VIII. Generate and distribute pay stubs
 Case2: Payroll Processing

I. Add, Update or Remove employee records

II. Maintain employee information such as personal details

Case3: Training and Development

I. Schedule training program

II. Track employee training progress

Case4:Return to Main Menu

I. Exit the HR Module

Case6: Exit ERP System

II. Exit the ERP System

System Requirements:

• Hardware Requirements:
1. Server Hardware:A dedicated server or cloud infrastructure with sufficient processing power and
memory to handle concurrent users and data storage.

2. Client Devices: Desktop computers, laptops, or mobile devices for users to access the software.

3. Network Infrastructure: High-speed internet connectivity for remote access and smooth data transfer.

• Software Requirements:
 1. Operating System: The server should run a compatible operating system, such as Windows Server,
Linux (e.g., Ubuntu, CentOS), or a cloud-based OS (e.g., AWS, Azure).

2. Database Management System (DBMS): A relational database management system (RDBMS) like
MySQL, PostgreSQL, or Microsoft SQL Server for data storage and retrieval.

3. Web Server: A web server software (e.g., Apache, Nginx) to host the web application.

4. Programming Language: The software should be developed using a suitable programming language
and framework (e.g., PHP, Python, Java).

5. Web Browser: Users will need a modern web browser (e.g., Chrome, Firefox, Safari) to access the
system.

Security Requirements:
1. Data Encryption: Implement Secure Socket Layer (SSL) or Transport Layer Security (TLS) to secure data
transmission.

2. User Authentication: Strong user authentication mechanisms, including password policies and multi-
factor authentication (MFA).

3. Access Control: Role-based access control (RBAC) to manage user permissions and restrict access to
sensitive data.

4. Data Backup and Recovery: Regular automated data backups with off-site storage to prevent data loss

Creating a budget for ERP implementation with a total budget of Rs 1,000,000

It can be a complex task, as the cost breakdown will depend on various factors, including the size of the
organization, the complexity of the ERP system, and specific requirements. Below is a simplified budget
breakdown for ERP implementation with the provided budget:

Direct Costs (60% of the budget - Rs 600,000):

a. Software License and Implementation: This includes the cost of the ERP software license, any
required modules, and the implementation process. (Approx. Rs 300,000)
 b. Hardware: The purchase or upgrade of servers and network infrastructure to support the ERP
system. (Approx. Rs 100,000)

c. Data Migration and Integration: Costs associated with migrating existing data into the new ERP
system and integrating it with other systems. (Approx. Rs 80,000)

d. Customization and Development: Expenses for tailoring the ERP system to your organization's
specific needs. (Approx. Rs 80,000)

e. User Training: The cost of training employees to use the new ERP system effectively. (Approx. Rs
40,000)

Indirect Costs (30% of the budget - Rs 300,000):

a. Project Management: Hiring a project manager or allocating resources to oversee the ERP
implementation project. (Approx. Rs 80,000)

b. Consulting and Expertise: Expenses for hiring consultants or experts to guide and support the
implementation. (Approx. Rs 60,000)

c. Testing and Quality Assurance: Budget for rigorous testing and quality assurance to ensure a smooth
go-live. (Approx. Rs 40,000)

d. Change Management: Costs associated with managing organizational changes resulting from the ERP
implementation. (Approx. Rs 60,000)

e. Contingency: A reserve fund for unexpected expenses or scope changes during the project. (Approx.
Rs 60,000)

Miscellaneous Costs (10% of the budget - Rs 100,000):

a. Travel and Accommodation: If necessary for training, consulting, or meetings. (Approx. Rs 20,000)

b. Communication and Documentation: Expenses for communication tools, project documentation,

and user manuals. (Approx. Rs 20,000)

c. Licenses and Permits: Any additional licenses or permits required for ERP implementation. (Approx.
Rs 20,000)

d. Post-Implementation Support: Budget for post-implementation support and fine-tuning. (Approx. Rs

40,000)

e. Miscellaneous Expenses: Unforeseen or minor expenses that may arise during the implementation.
(Approx. Rs 20,000)
Please note : these are rough estimates and actual costs may vary based on your organization's specific
needs, the ERP system chosen, and other factors. It's important to conduct a detailed analysis and
consult with ERP implementation experts to create a more accurate and tailored budget for your ERP
implementation project.

Conclusion
this microproject on ERP system implementation will serve as a valuable resource
for organizations looking to adopt ERP systems by offering a comprehensive
guide/manual based on an in-depth study of existing systems, onsite observations,
and expert consultation. It will empower businesses to make informed decisions
and successfully implement ERP systems to enhance their operations and
productivity conclusion, this microproject on ERP system implementation will
serve as a valuable resource for organizations looking to adopt ERP systems by
offering a comprehensive guide/manual based on an in-depth study of existing
systems, onsite observations, and expert consultation. It will empower businesses
to make informed decisions and successfully implement ERP systems to enhance
their operations and productivity
Upgrading our ERP system is a strategic move that will propel us into the future. It
is a critical investment in our organization's growth and success. I am available to
discuss this proposal further and address any questions or concerns you may
have. Thank you for considering this proposal for an advancement in our ERP
system.