Module 1

Enterprise Resource Planning (ERP) is defined as an Integrated Computer based planning

technique used in Organizations and Enterprises for management and resource planning.
Resources here mean both internal and external resources of an organization. Various
resources of an organization can include financial resource, tangible resource, human resource
and also various material requirements.
Characteristics of ERP:
1. Flexible

These days, way of doing business is changing fast due to changing in law and amendments in
the standards. So, management of business process which is done through ERP should be
flexible. If ERP system will be flexible, we can change processing system as per our
requirement.
2. Modular and Open

One of the great characteristics of any good ERP system that it has open module architecture. It
means, if there is error in any module, we can correct it by opening it instead affecting all other
modules.
3. Comprehensive

ERP system should be advance and it should use comprehensive way. It means, all most all the
functions of business should be done through ERP System. If we will get only small number of
activities through ERP and other will be done through manual, then, this ERP system is not ok.
Its capacity should to cover all the functions of business.

4. Online-Connection with Other ERP System

Today, in the market, there are lots of ERP solution but which is the best, it will tell its features?
Check whether it has capacity to connect other ERP system online or not. Because, today
business has started to interact with millions of other businesses. So, it is necessary to connect
them online through our ERP.
5. Best Business Practices

Each business activities have lots of standards. For example, accounting follows IFRS, quality
management follows ISO 9000 and marketing follows the standard of MASB. So, your ERP
system will be updated regarding all standards.

6. Multi-Facilities

A good ERP System should have multi-facilities. It means, it can work in multi-currencies, multi-
mode manufacturing and multi-platform.

7.Strategic planning

Strategic Planning is the main and top function of business. It should be done through ERP.
ERP should integrate all its sub-part systems for making better strategic planning.
8. Optimize the data

A good ERP system optimize the data for effective utilization of limited business resources. It
also optimizes the data for reducing cost and risk.

9. Project Management

A good ERP System collaborate the team in real time for working together on a project.
Everything about the project process can be tracked through this.

10. Automatic Functions

We can measure the quality of ERP from its advance automatic functions. With these automatic
functions, organisation saves his lots of time. This automatic function may be in electronic fund
transfer, electronic data interchange and eCommerce.
Benefits Of ERP

1. Enhanced Business Reporting:

 Better reporting tools with real-time information
 A single source of truth – one integrated database for all business
processes
2. Better customer service:
 Better access to customer information
 Faster response times
 Improved on-time delivery
 Improved order accuracy
3. Improved Inventory Costs:
 Only carry as much inventory as needed, avoid these common
issues
 Too much inventory, and higher overhead costs
 Too little inventory, and longer customer fulfilment
times
4. Boosted Cash Flow:
 Better invoicing and better collections tools to bring cash in faster
 Faster cash means more cash on-hand for the business
5. Cost Savings:
 Improved inventory planning
 Better procurement management
 Better customer service
 Improved vendor relationship management
6. Better Data & Cloud Security:
 Dedicated security resources
 Avoid installing malicious software
 Data distributed across multiple servers
7. Business Process Improvements:
 Automate manual or routine tasks
 Implement smarter workflows
 Gain efficiency
 8. Supply Chain Management:

 Effective demand forecasting and lean inventory
 Reduce production bottlenecks
 Transparency through the business
Disadvantages
1. Costs of an ERP Software
 Third-party software add-ins
 Implementation costs
 Maintenance
 Initial and continuous training
2. Complex Data Conversion
 Developing a solid data conversion strategy can be difficult
 You have to define, examine and analyse data sources
 Bad data conversion will cause delays and increased costs
3. Requires thorough training
 Training needs to cover all of the ERP system’s features.
 ERP training sessions need to be in line with business processes
 IT users need to be trained for the technical aspects of the ERP
System.
Business Process Re-engineering
Business Process Re-engineering (BPR) is a management strategy aimed at improving
organizational performance by re-designing and optimizing business processes. BPR is a
systematic and radical approach to change, focused on transforming and streamlining core
business processes to achieve dramatic improvements in quality, efficiency, and customer
satisfaction.

Characteristics of BPR

1. Several jobs are combined into one: The feature of re-engineered process is absence of
an assembly line. The formerly distinct tasks/ jobs are combined and compressed into one.
The jobs are combined mostly based on the needs and preference of the customer.

2. When jobs are integrated, the chances of errors are reduced, eliminates misunderstandings,
delays and reworking are minimized.
3. Workers make decisions as they are required to do so. Jobs are combined, both
horizontally but also vertically. In other words, jobs are compressed based on job enlargement
and job enrichment. Vertical integration incorporates the tasks of decision making in the top
ladders of the hierarchy. In addition, the workers in the re-engineering are empowered. The
empowered workers are motivated and self determined to make decision. Decision-making is
part of the work of the workers.
4. Compressing the work both horizontally and vertically reduces delays, overhead costs
and betterment of response and satisfaction of customers.
5. The steps in the process are performed in a natural order straight-line sequence is
avoided in the re-engineering. Activities are performed not in artificial order but in natural order.
This process is termed as ‘De-linearising’ which allows performing of many jobs simultaneously.
This process reduces the process time and thereby delay.
Principles of Business Process Re-Engineering

1. Organize around outcomes, not tasks.

2. Identify all the organization’s processes and prioritize them in order of redesign
urgency
3. Integrate information processing work into the real work that produces the
information
4. Treat geographically dispersed resources as though they were centralized
5. Link Parallel activities in the workflow instead of just integrating their results
6. Put the decision point where the work is performed, and build control into the
process
7. Capture information once and at the source
Advantages of BPR: Following are the advantages of BPR:
1. BPR offers tight integration among different modules.
2. It offers same views for the business i.e., same database, consistent reporting and
analysis.
3. It offers process orientation facility i.e., streamline processes.
4. It offers rich functionality like templates and reference models.
5. It is flexible.
6. It is scalable.
7. It is expandable.
Disadvantages of BPR: Following are the Disadvantages of BPR:
1. It depends on various factors like size and availability of resources. So, it will not fit
for every business.
2. It is not capable of providing an immediate resolution.
3. While Business Process Re-engineering (BPR) can have many potential benefits,
there are also several disadvantages that organizations should consider before
embarking on a BPR initiative. Some of the key disadvantages of BPR include:
4. High costs: Implementing BPR can be a costly and time-consuming process,
requiring significant investment in resources, including technology, training, and
consulting fees. This can be a significant barrier for small or cash-strapped
organizations.
5. Resistance to change: Implementing BPR can be a difficult and complex process
that requires significant changes to an organization’s culture, processes, and
people. Employees may resist the changes, especially if they feel their job security
is at risk, leading to decreased morale and increased turnover.
6. Risk of failure: BPR is a high-risk strategy that can fail if not implemented properly.
The failure to gain employee support, lack of a clear strategy, or poor planning can
all lead to a BPR initiative’s failure.
7. Disruption to operations: Implementing BPR can disrupt the day-to-day operations
of the organization, leading to decreased productivity, customer dissatisfaction, and
revenue loss.

BPR LIFECYLCES:
Phase 1: Visioning • Apply to enterprise-wide reengineering effort. • Develop overview
of current and future business strategies, organizational structure, and business
processes. • Develop organizational commitment to reengineering. • Develop and
communicate a business case for action. • Create a new corporate vision. • Set stretched
goals. • Prioritize objectives. • Assess implementation capabilities and barriers. Define
corporate vision and business goals
Phase 2: Identifying • Construct high-level process map • Develop a process hierarchy •
Build enterprise-wide data models (optional) • Evaluate the processes • Select processes
to be reengineered • Prioritize and schedule processes to be reengineered Identify
business processes to be reengineered
TI Semiconductor Business Process Map Customer Communication Market
Customers Concept Development Manufacturing Customer Design & Support Strategy
Development Product Development Order Fulfilment Manufacturing Capability
Development Source
Criteria for Selecting Processes • Broken • Bottleneck • Cross-functional or cross-
organizational units • Core processes that have high impacts • Front-line and customer
serving - the moment of the truth • Value-adding • New processes and services • Feasible
Phase 3: Analysing • Conduct preliminary scoping. • Develop a high-level AS-IS
baseline process model (work flow model). Avoid analysis paralysis by conducting
preliminary analysis at fairly high level. • Surface purpose and assumptions of the
process (Ask WHY?). • Perform activity-based costing: costs can be assigned based on
actual activities and productivity. • Reveal hidden time and nonvalue-added activities. •
Measure cycle-time and quality. • Measure profitability in terms of task, product, and
customer type. Analyse and Measure an Existing Process
Phase 4: Redesigning Identify enabling IT & generate alternative process redesigns
Business Vision & Strategy Business-pulled How can IT support business strategies and
business processes? How can business strategies be changed business processes be
 transformed using IT? Business Reengineering Technology-driven Information
Technology
Three Steps in Redesigning Processes • Simplification: • Task: Change business rules
or procedures of a specific task • Workflow: A process chain is simplified by elimination of
nonvalue-adding activities • Integration: • Redesign tasks into a logical and effective
process. • A reengineered process often crosses functional boundaries. • It offers
opportunity for eradicating interdepartmental redundancies and restructuring the
organization. • Automation: • Usually accompanies nontechnical redesign of organization
structures and procedures. • All reengineering costs and benefits can be projected into a
model. • Reengineering often pays for itself - sources of funding for technology
investments are frequently cost savings generated by organizational change.
Phase 5: Evaluating • Develop criteria of evaluating alternatives of redesigned
processes: Cost, Benefit, and Risk. • Evaluate design alternatives • Select and
recommend a reengineered process Evaluate and select a process redesign
]Phase 6: Implementing • Plan IT implementation • Plan organization implementation •
Conduct a pilot project • Develop a prototype system • Technical Design • Social Design •
Evaluate results from the pilot project and the prototype • Prepare large-scale roll out
Implement the reengineered process
Phase 7: Improving • Develop performance measurement and reward systems in the
reengineered process • Monitor process performance constantly • Improve the process
on a continuous basis Improve the process continuously

Benefits of Business Process Reengineering

 Streamline business processes and systems
 Companies easily adapt to changing times and reduce operating expenses
 Improve company profitability and sustain competitive advantage
 Boost employee productivity
 Increase customer satisfaction by improving the quality of products and services
What is Data Warehousing?
Data warehousing is the process of constructing and using a data warehouse. A data
warehouse is constructed by integrating data from multiple heterogeneous sources that support
analytical reporting, structured and/or ad hoc queries, and decision making. Data warehousing
involves data cleaning, data integration, and data consolidations.
ROLE
1. Better business analytics: Data warehouse plays an important role in every
business to store and analysis of all the past data and records of the company.
which can further increase the understanding or analysis of data to the company.
2. Faster Queries: Data warehouse is designed to handle large queries that’s why it
runs queries faster than the database.
3. Improved data Quality: In the data warehouse the data you gathered from
different sources is being stored and analysed it does not interfere with or add data
by itself so your quality of data is maintained and if you get any issue regarding
data quality then the data warehouse team will solve this.
4. Historical Insight: The warehouse stores all your historical data which contains
details about the business so that one can analyse it at any time and extract
insights from it
Functions of Data warehouse:
1. Data Consolidation: The process of combining multiple data sources into a single
data repository in a data warehouse. This ensures a consistent and accurate view of
the data.
2. Data Cleaning: The process of identifying and removing errors, inconsistencies, and
irrelevant data from the data sources before they are integrated into the data
warehouse. This helps ensure the data is accurate and trustworthy.
3. Data Integration: The process of combining data from multiple sources into a single,
unified data repository in a data warehouse. This involves transforming the data into
a consistent format and resolving any conflicts or discrepancies between the data
sources. Data integration is an essential step in the data warehousing process to
ensure that the data is accurate and usable for analysis. Data from multiple sources
can be integrated into a single data repository for analysis.
4. Data Storage: A data warehouse can store large amounts of historical data and
make it easily accessible for analysis.
5. Data Transformation: Data can be transformed and cleaned to remove
inconsistencies, duplicate data, or irrelevant information.
6. Data Analysis: Data can be analysed and visualized in various ways to gain insights
and make informed decisions.
7. Data Reporting: A data warehouse can provide various reports and dashboards for
different departments and stakeholders.
8. Data Mining: Data can be mined for patterns and trends to support decision-making
and strategic planning.
9. Performance Optimization: Data warehouse systems are optimized for fast querying
and analysis, providing quick access to data.
DATA WAREHOUSE ADVANTAGES:
o Data warehouses facilitate end users' access to a variety of data.
o Using numerous data warehouses can increase the operational value of business
systems, especially customer relationship management.
o Makes selections with higher quality.
o For the medium and long term, it is especially helpful.
o Installing these systems is quite straightforward if the data sources and goals are clear.
o Storage of analyses and historical search queries is quite beneficial.
o It has a strong capacity for digesting information.
o Access to information is made more flexible and quick because of it.
o Allows for easier corporate decision-making.
o The productivity of businesses rises.
o Gives the company's many departments reliable communication.
o Strengthen connections with customers and suppliers.
Disadvantages of a Data Warehouse:
o The data warehouses may project substantial expenditures throughout his life. The data
warehouse is typically not stationary. Costs for maintenance are considerable.
o Data warehouses could soon become outdated.
o They occasionally need to provide complete information before a request for information,
which also costs the organization money.
 oRegarding the various objectives a company seeks to achieve, challenges may arise
during implementation.
o It might be challenging to include new data sources once a system has been
implemented.
o They necessitate an examination of the data model, objects, transactions, and storage.
o They were designed in a sophisticated, multidisciplinary manner.
o The operating systems must be reorganized to accommodate them.
o Data centres are excellent systems for maintenance. Any source systems and business
process restructuring could influence the data warehouse, resulting in significant
maintenance costs.
MODULE 2
Project Management
It describes as the application of knowledge, skills, tools and techniques to a broad range of
activities in order to meet the requirement of a particular project
 It ensures that available resources are used in the most effective and efficient way
 It is an aid to project manager because it helps them to standardized routine tasks
Periodically re assess the project with regards to potential problems to keep the project
in hand
9 knowledge areas on which project management is based. These are as follows:
Integration management:
setting up a full-time team who can understand what is expected from them. Preparedness is
crucial but is often missing.
Cost management:
Total cost of implementing ERP system includes cost of licensing, training, implementation,
maintenance, customization, and hardware requirements etc. Like most software ERPs
are priced on the functionality of the system and number of users who will access it
Communication management:
The higher the levels of communication and interaction in the implementation team, higher is
performance of the team
Quality management:
means the system has been implemented in an efficient way and the objectives are met
HR management:
to assemble the best possible team to plan, execute and control the project. Top
management must be visible in their commitment to the project. Team morale is vital component
for the success of the project
Scope management:
90% of ERP implementation end up overtime and over budget due to among other factors,
changes in project scope. A lack of understanding of the scope of thesystem may result
in conflict between logic of the system and the logic of the business
Time management:
The length of implementation time is greatly affected by the scope of the project, i.e., more activity
regarding modules, sites and functions means a longer process.
Procurement management:
When selecting the package, it is critical to get vendors to state the extent to which their products will
meet each requirement.
Risk management: to succeed the organization should have arise mitigation plan
Golden rules of project management:
 Have a clear, simple corporate vision and objective
 Have a group dedicated to business process improvements
 Have successful project managers who are capable of anticipating what can go wrong
 Make business objectives the primary drivers of the project
 Make sure that data cleansing is addressed as part of the project
Project Monitoring
Project monitoring is defined as a process which is performed to track the progress of project
execution so that potential problems can be identified well in time for the taking of the corrective
actions for the purpose of controlling the execution of the project.
Types of Project Monitoring

1. Process monitoring

It is also known as activity monitoring. On the other hand, process monitoring mainly aims to
track the resources and inputs while understanding how outputs and results are delivered.

2. Beneficiary monitoring

The primary purpose of this is to track the beneficiaries related to the project. This may also
include their complaints and satisfaction related to this project. They can be either direct or
indirect.

3. Compliance monitoring

It is used to check if the project complies with the grants, local laws, contracts, ethical
standards, and overall compliance with the project.
4. Financial monitoring

It is used to track the financial efficiency of the project. In addition, it helps in analysing
the expenditure of the allocated budget.

5. Result monitoring

It helps determine whether the project is on the right path to achieving the expected
result. It also helps collect data regarding the project's overall impact and effects.