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    Enterprise resource planning Enterprise resource planning Document Transcript

    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH STUDY MATERIAL ENTERPRICE RESOURCE PLANNING DEPARTMENT OF IT R S Vel Tech Vel Tech Multi Tech Dr.Rangarajan Dr.Sakunthala Engineering College Vel Tech High Tech Dr. Rangarajan Dr.Sakunthala Engineering College SEM - VIIIVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 1
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH INDEXUNITS PAGE NO.I. Introduction 06II. ERP Implementation 25III. The Business Modules 40IV. The ERP Market 64V. ERP – Present and Future 89 # 42 & 60, Avadi – Veltech Road, Avadi, Chennai – 62.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 2 R S
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH Phone : 044 26840603 email : veltech@vsnl.com 26841601 website : www.vel-tech.org 26840766 www.veltechuniv.edu.in∗ Student Strength of Vel Tech increased from 413 to 10579, between 1997 and 2010.∗ Our heartfelt gratitude to AICTE for sanctioning highest number of seats and highest number of courses for the academic year 2009 – 2010 in Tamil Nadu, India.∗ Consistent success on academic performance by achieving 97% - 100% in University examination results during the past 4 academic years.∗ Tie-up with Oracle Corporation for conducting training programmes & qualifying our students for International Certifications.∗ Permission obtained to start Cisco Networking Academy Programmes in our College campus.∗ Satyam Ventures R&D Centre located in Vel Tech Engineering College premises.∗ Signed MOU with FL Smidth for placements, Project and Training.∗ Signed MOU with British Council for Promotion of High Proficiency in Business English, of the University of Cambridge, UK (BEC).∗ Signed MOU with NASSCOM.∗ Signed MOU with INVICTUS TECHNOLOGY for projects & Placements.∗ Signed MOU with SUTHERLAND GLOBAL SERVICES for Training & Placements.∗ Signed MOU with Tmi First for Training & Placements.VELTECH, VEL TECH MULTI TECH engineering colleges Accredited by TCSVEL TECH, VEL TECH MULTI TECH, VEL TECH HIGH TECH, engineering colleges & VEL SRI RANGA SANKU(ARTS & SCIENCE) Accredited by CTS.Companies Such as TCS, INFOSYS TECHNOLOGIES, IBM, WIPRO TECHNOLOGIES, KEANE SOFTWARE & TINFOTECH, ACCENTURE, HCL TECHNOLOGIES, TCE Consulting Engineers, SIEMENS, BIRLASOFT,MPHASIS(EDS), APOLLO HOSPITALS, CLAYTON, ASHOK LEYLAND, IDEA AE & E, SATYAM VENTURES,UNITED ENGINEERS, ETA-ASCON, CARBORANDUM UNIVERSAL, CIPLA, FUTURE GROUP, DELPHI-TVSDIESEL SYSTEMS, ICICI PRULIFE, ICICI LOMBARD, HWASHIN, HYUNDAI, TATA CHEMICAL LTD, RECKITTBENKIZER, MURUGAPPA GROUP, POLARIS, FOXCONN, LIONBRIDGE, USHA FIRE SAFETY, MALCO,YOUTELECOM, HONEYWELL, MANDOBRAKES, DEXTERITY, HEXAWARE, TEMENOS, RBS, NAVIA MARKETS,EUREKHA FORBES, RELIANCE INFOCOMM, NUMERIC POWER SYSTEMS, ORCHID CHEMICALS, JEEVANDIESEL, AMALGAMATION CLUTCH VALEO, SAINT GOBAIN, SONA GROUP, NOKIA, NICHOLAS PHARIMAL,SKH METALS, ASIA MOTOR WORKS, PEROT, BRITANNIA, YOKAGAWA FED BY, JEEVAN DIESEL visit ourcampus annually to recruit our final year Engineering, Diploma, Medical and Management Students. Preface to the First EditionVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 3
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH This edition is a sincere and co-ordinated effort which we hope has made agreat difference in the quality of the material. “Giving the best to the students,making optimum use of available technical facilities & intellectual strength” hasalways been the motto of our institutions. In this edition the best staff across thegroup of colleges has been chosen to develop specific units. Hence the material, as awhole is the merge of the intellectual capacities of our faculties across the group ofInstitutions. 45 to 60, two mark questions and 15 to 20, sixteen mark questions foreach unit are available in this material.Prepared By : Mr. Einstein. J. Asst. Professor.IT1006 ENTERPRISE RESOURCE PLANNINGUNIT 1 INTRODUCTION 9ERP: An Overview, Enterprise – An Overview, Benefits of ERP, ERP and Related Technologies,Business Process Reengineering (BPR), Data Warehousing, Data Mining, OLAP, SCMUNIT II ERP IMPLEMENTATION 9VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 4
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHERP Implementation Lifecycle, Implementation Methodology, Hidden Costs, Organizing theImplementation, Vendors, Consultants and Users, Contracts with Vendors, Consultants andEmployees, Project Management and MonitoringUNIT III THE BUSINESS MODULES 9Business modules in an ERP Package, Finance, Manufacturing, Human Resources, PlantMaintenance, Materials Management, Quality Management, Sales and DistributionUNIT IV THE ERP MARKET 9ERP Market Place, SAP AG, Peoplesoft, Baan, JD Edwards, Oracle, QAD, SSAUNIT V ERP – PRESENT AND FUTURE 9Turbo Charge the ERP System, EIA, ERP and e-Commerce, ERP and Internet, Future DirectionsTEXT BOOK1. Alexis Leon, “ERP Demystified”, Tata McGraw Hill, New Delhi, 2000REFERENCES1. Joseph A Brady, Ellen F Monk, Bret Wagner, “Concepts in Enterprise Resource Planning”,Thompson Course Technology, USA, 2001.2. Vinod Kumar Garg and Venkitakrishnan N K, “Enterprise Resource Planning – Concepts andPractice”, PHI, New Delhi, 2003 UNIT – I PART – A1. What is ERP? Enterprise Resource Planning (ERP) covers the techniques and concepts employed for theintegrated management of businesses as a whole, from the viewpoint of the effective use ofmanagement resources, to improve the efficiency of an enterprise. Ideally the data for variousbusiness functions are integrated.2. Write the advantages of ERP.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 5
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH Installing an ERP system has many advantages – both direct and indirect. The directadvantages include improved efficiency, information integration for better decision making, fasterresponse time to customer queries, etc. The indirect benefits include better corporate image,improved customer goodwill, customer satisfaction, and so on.3. Direct benefits of ERP.The following are some of the direct benefits of an ERP system: ♦ Business Integration ♦ Flexibility ♦ Better analysis and planning capabilities ♦ Use of latest technology4. Discuss evaluation of ERP. As the department become large, they became closed & water tight. Each had their own setof procedures & hierarchy, each & every department maintain information separately whichcauses waste of resources. Hence ERP is implemented to integrate all the department together and limit the waste ofresources.5. How business integration achieved by ERP system? ERP packages are considered to be integrated, is the automatic data updation (automaticdata exchange among applications) that is possible among the related business components.6. Why are ERP systems said to be flexible? Different languages, currencies, accounting standards and so on can be covered in onesystem, and functions that comprehensively manage multiple locations of a company can bepackaged and implemented automatically.7. Why do many ERP Implementation fails? Many a company fails in this because of a wrong product, incompetent and haphazardimplementation and inefficient or ineffective usage.8. What are the reasons for the growth of the ERP market? ♦ To enable, improved business performance ♦ To support business growth requirements ♦ To provide flexible, integrated, real-time decision supportVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 6
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH ♦ To eliminate limitation in legacy systems ♦ To take advantage of the untapped mid – market (medium size organizations)9. How do conventional application packages and ERP packages differ? The first answer to this question is that ERP packages cannot only handle individualbusiness functions such as accounts and inventory, but also the entire range of business functionsnecessary for the company’s operations. The second difference is that ERP packages are targeted at everything from smallbusinesses to the largest organizations, and that they can be composed of a highly flexibledecentralised database and an information system cluster linked by a network. The third difference is global adaptation, represented by ERP packages’ multilingual andmulti-currency capacity. In the present day, when companies, irrespective of their size andmarket share, are manufacturing and selling in various areas of the world, the globalization ofmanagement platforms is being hastened, along with the global adaptation of enterpriseinformation systems.10. What is an integrated information system? An information system is an open, purposive system that produces information using the‘input – process – output’ cycle. The minimal information system consists of three elements –people, procedures and data. People follow procedures to manipulate data to produceinformation. In today’s computer world, the definition of information systems has undergone aslight change. Today, an information system is an organized combination of people, hardware,software, communication networks and data resources that collects, collates, transforms anddisseminates in an organization.11. What is MIS? MIS or Management Information System is a computer – based system that optimises thecollection, collation, transfer and presentation of information throughout an organization throughan integrated structure of databases and information flow.12. Why are the integrated information system important for the organization’s success? ERP system that treats the organization as a single entity and caters to the informationneeds of the whole organization. If this is possible, and if the information that is generated isaccurate, timely and relevant, then these systems will go a long way in helping the organization inrealizing its goals.13. What is business modeling? In business modeling, we model the business as an integrated system, taking the processesVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 7
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHmanaging its facilities and materials as resources. Information is a very important resource and isvery critical in managing all the other resources. Thus, the business model is a representation of the actual business – what are the variousbusiness functions of the organization, how are they related, what are their interdependencies,and so on. The business model is usually represented in the graphical form using flow charts andflow diagrams. From the business model, the data model of the system is created.14. What is integrated data model? It should clearly depict the organization; it should reflect the day-to-day transactions and itshould be updated continuously. At any given time, the database should give a snapshot of theorganization at that point in time. So if an order is entered, the sale is done and the goods aredispatched, then the database should reflect those changes. The inventory should be reduced andthe account receivables should be increased. All these things have to happen instantaneously andautomatically. That is the challenge and that is the advantage of the integrated database and theintegrated data model.15. What are the limitations of ERP? 1. Managers cannot generate custom reports or queries without help from a programmer and this inhibits them from obtaining information quickly, which is essential for maintaining a competitive advantage. 2. ERP systems provide current status only, such as open orders. Managers often need to look past the current status to find trends and patterns that aid better decision – making. 3. The data in the ERP application is not integrated with other enterprise or division systems and does not include external intelligence.16. How to overcome the limitations of ERP?Some of these technologies are: ♦ Business Process Reengineering (BPR) ♦ Management Information System (MIS) ♦ Decision Support Systems (DSS) ♦ Executive Information Systems (EIS) ♦ Data Warehousing ♦ Data Mining ♦ On-line Analytical Processing (OLAP) ♦ Supply Chain Management ♦ Customer Relationship Management (CRM)17. What is BPR? The fundamental rethinking and radical redesign of business processes to achieve dramaticVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 8
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHimprovements in critical, contemporary measures of performance such as cost, quality, serviceand speed.18. What is data warehousing? The primary concept of data warehousing is that the data stored for business analysis canbe accessed most effectively by separating it from the data in operational systems. The mostimportant reason for separating data for business analysis, from the operational data, has alwaysbeen the potential performance degradation on the operational system that can result from theanalysis processes.19. What is Data mining? Data mining is the process of identifying valid, novel, potentially useful and ultimatelycomprehensible information from databases that is used to make crucial business decisions.20. What do you mean by OLAP? OLAP can be defined in five words – Fast Analysis of Shared MultidimensionalInformation. FAST means that the system is targeted to deliver most responses to users within about fiveseconds, with the simplest analysis taking no more than one second and very few taking morethan 20 seconds. ANALYSIS means that the system can cope with any business logic andstatistical analysis that is relevant for the application and the user, and keep it easy enough for thetarget user. SHARED means that the system implements all the security requirements forconfidentiality (possibly down to cell level) and, if multiple write access is needed, concurrentupdate locking at an appropriate level. MULTIDIMENSIONAL means that the system mustprovide a multidimensional conceptual view of the data, including full support for hierarchiesand multiple hierarchies. INFORMATION is refined data that is accurate, timely and relevant tothe user.21. Explain the concept of supply chain management? A supply chain is a network of facilities and distribution options that performs the functionof procurement of materials, transformation of these materials into intermediate and finishedproducts, and the distribution of these finished products to customers. Supply chains exist in bothservice and manufacturing organizations, although the complexity of the chain may vary greatlyfrom industry to industry and firm to firm.22. What is the use of common database? The common database can allow every department of a business to store and retrieveVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 9
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHinformation real time. The information should be reliable, accessible and easily shared.23. List the Reasons for the growth of the ERP Market  To improve business performance  To support business growth requirements  To eliminate limitations in legacy system PART – B1. Describe the overview of ERP. Enterprise Resource Planning (ERP) covers the techniques and concepts employed for theintegrated management of business as a whole, from the viewpoint of the effective use ofmanagement resources, to improve the efficiency of an enterprise. ERP packages are integrated(covering all business functions) software packages that support the above ERP concepts. Originally, ERP packages were targeted at the manufacturing industry, and consistedmainly of functions for planning and managing core businesses such as sales management,production management, accounting and financial affairs, etc. However, in recent years,adaptation not only to the manufacturing industry, but also to diverse types of industry hasbecome possible and the expansion of implementation and use has been progressing on a globallevel. ERP software is designed to model and automate many of the basic processes of acompany, from finance to the shop floor, with the goal of integrating information across thecompnayand eliminating complex, expensive links between computer systems that were nevermeant to talk to each other. Strategic & Operational Figure shows how information is integrated within an organization using an ERP system. Finance Planning Human Manufacturing Resource ERP System Logistics Management Materials Management Maintenance ManagementVEL TECH Quality Management VEL TECH MULTI TECH VEL TECH HIGH TECH 10 Sales & Distribution
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH Figure. Information integration through ERP systems. ERP software is a mirror image of the major business processes of an organization, such ascustomer order fulfillment and manufacturing. Its success depends upon reach-a circumscribedERP system isn’t much better than the legacy system it replaces. In many cases, it is worse,because the old code at least was written specifically for the company and the task. ERP systems’set of generic processes, produce the dramatic improvements that they are capable of only, whenused to connect parts of an organization and integrate its various processes seamlessly. When awarehouse in Noida enters a customer order, for example, the data flows automatically to othersin the company who need to see it-to the finance department at the company headquarters inMumbai and to the manufacturing plant in Chennai. The lure of information integration struck achord with CEOs and CFOs and CFOs-ERP vendors’ primary targets-and sales of ERP took off inthe early 1990s.REASON FOR THE GROWTH OF THE ERP MARKET The is no doubt that the market for Enterprise Resource Planning (ERP) systems is in greatdemand. Industry analysts are forecasting growth rates of more than 30% for at least the next fiveyears. Why are so many companies replacing their key business systems? The answer is: ° To enable improved business performance  Cycle time reduction  Increased business agility  Inventory reduction  Order fulfillment improvement ° To support business growth requirements  New products/product lines, new customers  Global requirements including multiple languages and currencies ° To eliminate limitation in legacy systems  Century dating issues  Fragmentation of data and processing  Inflexibility to change  Insupportable technologiesVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 11
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH ° To take advantage of the untapped mid-market (medium size organizations)  Increased functionally at a reasonable cost  Client server/open systems technology  Vertical market solutions These are some of the reasons for the explosive growth rate of the ERP markets and theERP vendors. As more and more companies are joining the race, the ERP vendors are shiftingtheir focus from big-Fortune 1000-companies to different market segments (medium sizecompanies, small companies, etc). The future will see fierce battle for market share and mergersand acquisitions for strategic and competitive advantage. The ultimate winner in this race will bethe customer, who will get better products and better service at affordable prices.2. Benefits of ERP.The Advantages of ERP Installing an ERP system has many advantages-both direct and indirect. The directadvantages include improved efficiency, information integration for better decision making, fasterresponse time to customer queries, etc. The indirect benefits include better corporate image,improved customer goodwill, customer satisfaction, and so on. The following are some of thedirect benefits of an ERP system, ♣ Business Integration ♣ Flexibility ♣ Better Analysis and Planning Capabilities ♣ Use of Latest TechnologyBusiness Integration The first and most important advantage lies in the promotion of integration. The reasonwhy ERP packages are considered to be integrated, is the automatic data updation (automatic dataexchange among applications) that is possible among the related business components. Sinceconventional company information systems were aimed at the optimization of independentbusiness functions in business units, almost all were weak in terms of the communication andintegration of information that transcended the different business functions. In the case of largecompanies in particular, the timing of system construction and directives differs for each productand department/functions and sometimes, they are disconnected. For this reason, it has becomean obstacle in the shift to new product and business classification. In the case of ERP packages,the data of related business functions is also automatically updated at the time a transactionoccurs. For this reason, one is able to grasp business details in real time, and carry out varioustypes of management decisions in a timely manner, based on that information.FlexibilityVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 12
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH The second advantage of ERP packages is their flexibility. Different languages, currencies,accounting standards and so on can be covered in one system, and functions that comprehensivelymanage multiple locations of a company can be packaged and implemented automatically. Tocope with company globalization and system unification, this flexibility is essential, and one cansay that it has major advantages, not simply for development and maintenance, but also in termsof management.Better Analysis and Planning Capabilities Yet another advantage is the boost to the planning functions. But enabling thecomprehensive and unified management of related business and its data, it becomes possible tofully utilize many types of decision support systems and simulation functions. Furthermore, sinceit becomes possible to carry out, flexibly and in real time, the filling and analysis of data from avariety of dimensions, one is able to give the decision-makers the information they want; thusenabling them to make better and informed decisions.Use of Latest Technology The fourth advantage is the utilization of the latest development in Information Technology(IT). The ERP vendors were very quick to realize that in order to grow and to sustain that growth,they had to embrace the latest developments in the field of Information Technology. Therefore,they quickly adapted their systems to take advantage of the latest technologies like open systems,client/server technology, Internet/Intranet, CALS (Computer-Aided Acquisition and LogisticsSupport), electronic-commerce, etc. It is this quick adaptation to the latest changes in InformationTechnology that makes the flexible adaptation to changes in future business environmentspossible. It is this flexibility that makes the incorporation of the latest technology possible duringsystems customization; maintenance and expansion phases. As has been stated above, ERP includes many of the functions that will be necessary forfuture systems. However, undertaking reforms to company structures and business processes, soas to enable the full use of these major features, is the greatest task for companies that will usethem. It is necessary to take note that casually proceeding with the implementation of ERP,merely for reasons of system reconstruction or preparation for the year 2000, is likely to result inturning the above mentioned advantages into disadvantages.3. Describe Integrated Management Information.Integrated Management Information An information system is an open, purposive system that produces information using the“input-process-output’ cycle. The minimal information system consists of three elements-people,procedures and data. People follow procedures to manipulate data to produce information. Intoday’s computer world, the definition of information systems has undergone a slight change.Today, an information system is an organized combination of people, hardware, software,VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 13
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHcommunication networks and data resources that collects, collates, transforms and disseminates inan organization. Management Information System(MIS) is a planned system of the collecting, processing,storing and disseminating data in the form of information needed to carry out the functions ofmanagement. Information system include systems that are not intended for decision making. ButMIS intended for decision making also.Figure. An enterprise where all departments know what the others are doing Management Information Systems, also called information-reporting systems, were theoriginal type of management support systems, and they still are a major category of informationsystems. MIS produce information products that support many of the day-to-day decisionmaking needs of the management. Reports, charts, graphs, displays and responses produced bysuch systems provide information that managers have specified in advance. Such predefinedinformation satisfies the needs of managers at the operational levels of the organization who arefaced with the structured type of decision-making. But the problem with these information systems is that they only give information that hasbeen predefined. So each department will have its own database and information systems. Thesesystems will produce different reports of varying detail that were specified when the systemsVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 14
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHwere built. This method of information gathering has two major disadvantages. One, people in onedepartment do not have any information about what is happening in the other departments. Maybe at the top management level the summary reports are being circulated to other departmentsalso, but these summary reports often fail in capturing the real picture. The second drawback isthat these systems give only the information that they were designed to produce at the time theywere built. Suppose a manager wants some information which is not in the reports, then thesesystems are of no help. These systems lack the integrated approach. There will be an accounting system for thefinance department, a production planning system for the manufacturing department, aninventory management system for the stores department, and so on. All these systems willperform in isolation. So if a person wanted some information which has to be derived from any ofthese two systems, he has to get the necessary reports from both systems and then correlate andcombine the data. Because the systems work in isolation, collecting and analyzing the data needed for onedepartment’s functioning, can be a difficult task, since, getting information about some aspect thatis dependent on more than one department can be tedious. No business executive or decision-maker can take good decisions with the isolated data that he gets from the various reportsproduced by each department. Even if he collates the data and produces the information that herequires, he would have lost valuable time that could have been better spent in decision-making. In reality, an organization cannot function as islands of different departments. Theproduction planning data is required for the purchasing department. The purchasing details arerequired for the finance department and so on. So if all the information islands, which werefunctioning in isolation, were integrated into a single system, then the impact of that would bedramatic. For example, if the purchase department can see the production planning details, it canmake the purchasing schedule accordingly. If the finance department can see the purchase detailsas soon as it is entered in the system, they can plan for the cash flow that will be necessary for thepurchases. We have seen that in today’s competitive business environment, the key resource of everyorganization is information. If the organization does not have an efficient and effectivemechanism that enables it to give the decision makers the right information at the right time, thenthe chances of that organization succeeding in the next millennium are very remote. The three fundamental characteristics of information are accuracy, relevancy andtimeliness. The information has to b e accurate, it must be relevant for the decision-maker and itmust be available to the decision-maker when he needs it. Any organization that has themechanism to collect, collate, analyze and present high quality information to its employees, thusenabling them to make better decisions, will always be one step ahead of the competition. Today,the time available for an organization to react to the changing market trends is very short. Tosurvive, the organization must always be on its toes, gathering and analyzing the data – bothVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 15
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHinternal and external. Any mechanism that will automate this information gathering and analysisprocess will enhance the chance of the organization to beat the competition. So, what is needed is a system that treats the organization as a single entity and caters tothe information needs of the whole organization. If this is possible, and if the information that isgenerated is accurate, timely and relevant, then these systems will go a long way in helping theorganization in realizing its goals.4. Describe Business Modeling in ERP.Business Modeling: Business modeling or creating a business model is one of the first activities in any ERPproject. As said earlier, the ERP systems should mirror the business processes. A business modelis not mathematical model, but it is a representation of the business as one large system showingthe interconnections and interdependencies of the various subsystems and business processes asshown in figure. Based on the organization’s goals, objectives and strategic plans, a business modelconsisting of the business processes is developed. These business processes are controlled bydifferent individuals in the organization (the people) to achieve common goals. Based on thebusiness model, the ERP system is developed with the aim of providing the required informationand necessary assistance to the various individuals, to help them perform their business processesmore effectively and efficiently. Figure: Real world Processe Interrelationsh s ip & Interdependen cies Plant Material Customer Order Contract InvoiceVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 16
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH Figure: Business Model In business modeling, we model the business as an integrated system, taking the processesmanaging its facilities and materials as resources. Information is very important resources and isvery critical in managing all the other resources. Thus, the business model is a representation of the actual business – what are the variousbusiness functions of the organization, how are they related, what are their interdependencies,and so on. The business model is usually represented in the graphical form using flow charts andflow diagrams. Form the business mode, the data model of the system is created.5. Describe Integrated Data Model.Integrated Data Model: One of the most critical steps in the ERP implementation is the creation of an IntegratedData Model. As we have seen earlier, one of the advantages of having an ERP system is that allemployees from the different departments get access to the data – the integrated data. Thecompany uses this integrated data for its analysis and decision-making. With the implementation of ERP systems, the departmental information systems and thedepartmental databases will have to go. There can no longer be isolated databases, which cater tothe needs of a particular department. All the data has to be from the integrated database. Thisapproach will reduce data redundancy and provide updated information about the entireorganization to all employees. For the integrated database to be effective it should clearly depict the organization; itshould reflect the day-to-day transactions and it should be updated continuously. At any giventime, the database should give a snapshot of the organization at the point in time. so if an order isentered, the sale is done and the goods are dispatched, then the database should reflect thosechanges. The inventory should be reduced and the account receivables should be increased. Allthese things have to happen instantaneously and automatically. That is the challenge and that isthe advantage of the integrated database and the integrated data mode. The integrated datamodel is derived from the business model as shown in figure. So, when designing the data model for the ERP system, the most important thing thatshould be kept in mind is the information integration and the process/procedure automation.The data model should reflect the entire organization and it should successfully depict andintegrate the data structures of the entire organization.6. Describe Business Process Reengineering.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 17
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHBusiness Process Reengineering (BPR) BPR has been around for quite some time and a lot has been written about it in both, thepractitioner trade press and the academic research journals. However, the controversy stillremains about whether there is any accurate description of BPR, or BPR is just a fad – anappealing label to tag on to whatever your company is doing, to suggest that your latest andgreatest work is ‘in vogue’. But if reengineering is to continue in the long run, then it must domore than advertise its considerable successes to date. It must become more proactive andinclusive with regard to human, organizational and motivational change issues. Dr Michael Hammer defines BPR as “…… the fundamental rethinking and radical redesignof business processes to achieve dramatic improvements in critical, contemporary measures ofperformance such as cost, quality, service and speed.” One of the main tools for making thischange is the Information Technology (IT). Any BPR effort that fails to understand the importanceof IT, and goes through the pre-BPR analysis and planning phases without considering thevarious IT options available, and the effect of the proposed IT solutions on the employees and theorganization, is bound to crash during takeoff. We have seen that the ERP systems help in integrating the various business processes of theorganization with the help of modern developments in IT. With a good ERP package, theorganization will have the capability of achieving dramatic improvements in critical areas such ascost, quality, speed and so on. So many BPR initiatives and up in the ERP implementation.7. Describe Data Warehousing.Data Warehousing: If operational data is kept in the databases of the ERP system, it can create a lot ofproblems. As time passes, the amount of data will increase and this will affect the performance ofthe ERP system. So it is better to archive the operational data once its use is over. When I say “theuse is over’, it does not mean that the archived data is useless. On the contrary, it is one of themost valuable resource of the organization. However once the operational use of the data is over,it should be removed from the operational databases. For example, once the financial year is over,the daily transactional data can be archived. Figure shows what happens if the data is notarchived.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 18
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH Figure: Operational data vs. archive data It is evident from the figure that even though the operational data volume is nearly thesame each year, since the data is not archived, the total amount of data that is stored in theoperational database will go on increasing. Figure shows the effect of keeping this huge amountof data in the operational database. It is clear from the above graph that as the volume of the data in the database increases, theperformance of the database and the related applications decreases. Figure: Data volume vs. performance From the above discussions, it is evident that we should separate the operational data fromthe non-operational data. I am not using the term archive data, because if the non-operationalVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 19
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHdata is archived, there is little or no use for it. But this data is a very valuable resource and is tooprecious to be kept in some archive. It is in this situation that a data ware house comes in handy. The primary concept of data warehousing is that the data stored for business analysis canbe accessed most effectively by separating it from the data in operational systems. The mostimportant reason for separating data for business analysis, from the operational data, has alwaysbeen the potential performance degradation on the operational system that can result from theanalysis process. High performance and quick response time is almost universally critical foroperational systems. The reasons to separate the operational data from the analysis data have notsignificantly changed with evolution of the data warehousing systems, except that now they areconsidered more formally during the data warehouse building process. Advances in technologyand changes in the nature of business have made many of the business analysis processes muchmore complex and sophisticated. In addition to producing standard reports, today’s datawarehousing systems sup port very sophisticated online analysis, including multi-dimensionalanalysis.8. Explain the concept of Data Mining.Data Mining: We are living in the information age. The importances of collecting data that reflects onesbusiness, or of activities that achieve competitive advantage, are widely recognised now.Powerful systems for collecting data and managing it in large databases are available in mostorganizations. However, the major bottleneck of converting this data into effective information isthe difficulty faced in extracting knowledge about the system from the collected data. Modelingthe investigated system discovering relations that connect variables in a database are the subjectsof data mining. Data mining is the process of identifying valid, novel, potentially useful and ultimatelycomprehensible information from databases that is used to make crucial business decisions.Modern data mining systems self learn from the previous history of the investigated system,formulating and testing hypotheses about the rules, which the system obeys. When concise andvaluable knowledge about the system of interest has been discovered, it can and should beincorporated into some decision support system which helps the manager make wise andinformed business decisions. The main reason for needing automated computer systems for intelligent data analysis isthe enormous volume of existing and newly appearing data that require processing. The amountof data accumulated each day by various businesses, scientific and governmental organizationsaround the world is daunting. Research organizations, academic institutions and commercialorganizations create and store huge amounts of data each day. It becomes impossible for humananalysts to cope with such overwhelming amounts of data. The other problems that surface when human analysts process data are:VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 20
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH  The inadequacy of the human brain when searching for complex multifactorial dependencies in the data  The lack of objectiveness in analyzing the data A human expert is always a hostage of the previous experience of investigating othersystems. Sometimes this helps, sometimes this hurts, but it is almost impossible to get rid of thisfact. One additional benefit of using automated data mining systems is that this process has amuch lower cost than hiring an army of highly trained (and paid) professional statisticians. Whiledata mining does not eliminate human participation in solving the task completely, itsignificantly, it significantly simplifies the job and allows an analyst, who is not a professional instatistics and programming, to manage the process of extracting knowledge from data.9. Describe OLAP.On-Line Analytical Processing (OLAP): According to Business Intelligence Ltd (http://www.OLAPReport.com), OLAP can bedefined in five words – Fast Analysis of Shared Multidimensional Information. FAST means that the system is targeted to deliver most responses to users within about fiveseconds, with the simplest analysis taking no more than one second and very few taking morethan one second and very few taking more than 20 seconds. ANALYSIS means that the systemcan cope with any business logic and statistical analysis that is relevant for the application and theuser, and keep it easy enough for the target user. SHARED means that the system implements allthe security requirements for confidentiality (possibly down to cell level) and, if multiple writeaccess is needed, concurrent update locking at an appropriate level. MULTIDIMENSIONALmeans that the system must provide a multidimensional conceptual view of the data, includingfull support for hierarchies and multiple hierarchies. INFORMATION is refined data that isaccurate, timely and relevant to the user. Simply put, OLAP describes a class of technologies that are designed for live ad-hoc dataaccess and analysis. While transaction processing (OLTP) generally relies solely on relationaldatabases, OLAP has become synonymous with multidimensional views of business data. Thesemultidimensional views are supported by multidimensional database technology and provide thetechnical basis for calculations and analysis required by Business Intelligence applications. OLAP technology is being used in an increasingly wide range of applications. The mostcommon are sales and marketing analysis; financial reporting and consolidation; and budgetingVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 21
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHand planning. Increasingly however, OLAP is being used for applications such as productprofitability and pricing analysis; activity based costing; manpower planning; and qualityanalysis, or for that matter any management system that requires a flexible, top down view of anorganization.10. Explain the concept of Supply Chain Management.Supply Chain Management: A supply chain is a network of facilities and distribution options that performs the functionof procurement of materials, transformation of these materials into intermediate and finishedproducts, and the distribution of these finished products to customers. Supply chains exist in bothservice and manufacturing organizations, although the complexity of the chain may vary greatlyfrom industry to industry and firm to firm. Traditionally, marketing, distribution, planning, manufacturing, and the purchasingorganizations along the supply chain operated independently. These organizations have theirown objectives which are often conflicting. Marketing’s objective of high customer services andmaximum sales revenue conflict with manufacturing and distribution goals. Many manufacturingoperations are designed to maximize throughput and lower costs with little consideration for theimpact on inventory levels and distribution capabilities. Purchasing contracts are often negotiatedwith very little information beyond historical buying patterns. The result of these factors is thatthere is not a single, integrated plan for the organization- there are as many plans as businesses.Clearly, there is a need for a mechanism through which these different functions can be integratedtogether. Supply chain management is a strategy through which such integration can be achieved.Lambest and cooper identified that SCM having the following management components : • Planning and control • Work structure • Organization structure • Production flow facility structure • Information Flow facility structure • Management methods • Risk and reward structure • Culture and attitudeVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 22
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH UNIT – II PART – A1. Write different phases of the ERP implementation.The different phases of the ERP implementation are given below: ♦ Pre-evaluation Screening ♦ Package Evaluation ♦ Project Planning Phase ♦ Gap Analysis ♦ Reengineering ♦ Configuration ♦ Implementation Team Training ♦ Testing ♦ Going Live ♦ End – user Training ♦ Post – implementation2. Define Pre – evaluation Screen. The Company should do a pre-evaluation screening to limit the number of packages thatare to be evaluated by the committee. Not all packages are equal – each has its own strengths andweakness. The pre-evaluation process should eliminate those packages that are not at all suitablefor the company’s business processes.3. Describe package evaluation. The evaluation / selection process is one of the most important phases of the ERPimplementation, because the package that you select will decide the success or failure of theproject. Since ERP systems involve huge investments, once a package is purchased, it is not aneasy task to switch to another one. So it is a ‘do it right the first time’ proposition.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 23
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH4. Write the important points for evaluating ERP software. ♦ Fundamental fit with the company’s business processes ♦ Degree of integration between the various components of the ERP system ♦ Flexibility and scalability ♦ Complexity ♦ User friendliness ♦ Quick implementation ♦ Ability to support multi – site planning and control ♦ Technology – client / server capabilities, database independence, security ♦ Availability of regular upgrades ♦ Amount of customization required ♦ Local support infrastructure ♦ Availability of reference sites ♦ Total costs, including cost of license, training, implementation, maintenance, customization and hardware requirements.5. Describe the project planning phase for ERP. This is the phase that designs the implementation process. It is in this phase that the detailsof how to go about the implementation are decided. Time schedules, deadlines, etc. for the projectare arrived at. The project plan is developed. Roles are identified and responsibilities areassigned. The organizational resources that will be used for the implementation effort are decidedand the people who are supposed to head the implementation are identified. The implementationteam members are selected and task allocation is done. This phase will decide when to begin theproject, how to do it and when the project is supposed to be completed. This is the phase whichwill plan the ‘what to do’ in case of contingencies; how to monitor the progress of theimplementation; what control measures should be installed and what corrective actions should betaken when things get out of control. The project planning is usually done by a committeeconstituted by the team leaders of each implementation group. The committee will be headed bythe ERP incharge (usually the CIO or COO). The committee will meet periodically (during theentire implementation lifecycle) to review the progress and chart the future course of actions.6. Why is the pre-evaluation screening required? There are hundreds of ERP vendors – of all sizes and shapes – all claiming to have thesolution that is ideal for your company. Analyzing all the packages before reaching a decision isnot a viable solution. It is also a very time consuming process. So it is better to limit the numberof packages that are evaluated to less than 5. It is always better to do a through and detailedevaluation of a small number of packages, rather than doing a superficial analysis of dozens ofpackages. It is to identify these packages that we need the pre – evaluation screening.7. What are the factors to be considered when selecting an ERP package?VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 24
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH When selecting an ERP package, the following factors should be considered:  Functional fit with the company’s business processes  Degree of integration between the various components of the ERP system  Flexibility and scalability  Complexity  User friendliness  Quick implementation  Ability to support multi – site planning and control  Technology – client / server capabilities, database independence, security  Availability of regular upgrades  Amount of customisation required  Local support infrastructure  Availability of reference sites  Total costs, including cost of license, training, implementation, maintenance, customisation and hardware requirements.8. What is Gap analysis? Gap analysis is a phase in the ERP implementation, where the organization tries to find outthe gaps between the company’s existing business practices and those supported by the ERPpackage. Put very simply, this is the process through which companies create a complete mode ofwhere they are now and where they are heading. The trick is to design a model, which bothanticipates and covers any functional gaps. It has been estimated that even the best ERP package,customer tailored to a company’s needs, meets only 80% of the company’s functionalrequirements.9. How are the ‘gaps’, found out during the gap analysis phase filled? This can be done in different ways. One of the most affordable, but most difficult, solutionsentails altering the business to ‘fit’ the ERP package. Another solution is that the company cansimply agree to live without a particular function (the cheap but annoying solution). Othersolutions include: ♦ Pinning your hopes on an upgrade (low cost but risky) ♦ Identifying a third – party product that might fill the gap (hopefully it also partners with the ERP packages, keeping interfacing to a minimum) ♦ Designing a custom program ♦ Altering the ERP source code, (the most expensive alternative; usually reserved for mission – critical installations)10. Define Reengineering. Reengineering Business Process Reengineering. The radical transformation of a businessVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 25
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHprocess to achieve orders of magnitude and improvement in one or more performance measuresrelating to fitness – for – purpose, quality, cycle – time and cost; usually requiring the applicationof technology enablers. Reengineering projects typically take a minimum of two years tocomplete.11. Explain the main functional area of ERP implementation. Rule of ERP implementation is, synchronising existing company practices with the ERPpackage rather than changing the source code and customising it to suit the company. In order todo so, business processes have to be understood and mapped in such a way that the arrived atsolutions match up with the overall goals of the company.12. Define Testing. This is the phase where you try to break the system. You have reached a point where youare testing real case scenarios. The system is configured and now you must come up withextreme-case scenarios-system overloads, multiple users logging on at the same time with thesame query, users entering invalid data, hackers trying to access restricted areas and so on. Thetest cases must be designed specifically to find the weak links in the system and these bugs shouldbe fixed before going live.13. Explain End User Training. This phase starts much before the system goes live. The employees who are going to usethe new system are identified. Their current skills are noted and based on the current skill levels,they are divided into groups. Then each group is given training on the new system. This trainingis very important as the success of the ERP system is in the hands of the end – users. So thesetraining sessions should give the participants an overall view of the system and how individualactions would affect the entire system.14. Explain Maintenance mode. The post – ERP organization will need a different set of roles and skills than those with lessintegrated kinds of systems. At a minimum, everyone who uses these systems needs to be trainedon how they work, how they relate to the business process and how a transaction ripples throughthe entire company whenever they press a key. The training will never end; it is an ongoingprocess; new people will always be coming in, and new functionality will always be entering theorganization.15. Who are ERP vendors? Vendors are the people who have developed the ERP packages. They are the people whohave invested a huge amount of time and effort in research and development, to create thepackaged solutions.16. Write important skills that ERP should possess. ♦ Knowledge of how to organize and run a project of this magnitudeVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 26
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH ♦ Enough experience in handling problems and issues that arise during the implementation ♦ Good people skills ♦ Good leadership skills ♦ Excellent training skills17. Describe Vendors. Vendors are the people who have developed the ERP packages. They are the people whohave invested huge amounts of time and effort in research and development to create thepackaged solutions. If one studies the history of the ERP packages and finds out how eachpackage evolved, it soon becomes evident that every ERP package grew out of the experience oropportunity of a group of people, working in a specific business, who created systems that coulddeal with certain business segments.18. Write the role of vendor. The vendor should supply the product and its documentation as soon as the contract issigned. Only after the software is delivered, can the company develop the training and testingenvironment for the implementation team. The vendor is responsible for fixing any problems inthe software that the implementation team encounters. So the vendor should have a liaison officerwho should constantly interact with the implementation team. Another role the vendor has to play is that of the trainer – to provide the initial training forthe company’s key users, people who will play lead roles in the implementation of the system.19. Write briefly about consultants. Business consultants are professional who specialize in developing techniques andmethodologies for dealing with the implementation and with the various problems that will cropup during the implementation. They are experts in the administration, management and controlof these types of projects. Each of them will have many man – years of implementation experiencewith various industries and would have time – tested methodologies and business practices thatwill ensure successful implementation. They will be good at all phases of the implementationlifecycle, right from package evaluation to end – user training.20. Write the role of the consultant. The consultants should guarantee the success of the project and should be able to show theresults (quantifiable results like reduction in cycle time, increased response time, improvedproductivity and so on) to the satisfaction of the company management. Consultants are responsible for administering each of the phases of the implementation, soVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 27
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHthat the required activities occur at the scheduled time and at the desired level of quality and witheffective participation of all those who must participate.21. Who is an end users and why are the so critical for the success of the ERP implementation? End users are the people who will be using the ERP system once it is in place. These are thepeople who were doing the functions that are being automated or computerised by the ERPsystem. With the implementation of the ERP system, the old job descriptions will change, thenature of the job will undergo drastic transformation. It is human nature to resist change. Whenwe are talking about implementing an ERP system we are talking about change in a very massivescale. Employees will fear that system will feat that system will replace existing jobs, as manyfunctions will be automated. Also people will be afraid of the amount of training they have toundergo and learning they have to do to use the new system. Job profiles will change, jobresponsibilities will undergo drastic alterations, and people will be forced to develop new skillsets. If these fears are not addressed and alleviated well in advance, it will cause trouble for theorganization.22. Explain the steps of data migration strategy. • Identifying the data to be migrated • Determining the timing of data migration • Generating data templates • Freezing the tools for data migration • Deciding on migration related steps • Deciding on data arching PART – B1. Explain ERP implementation lifecycle. The different phases of the ERP implementation are given below: • Pre-evaluation Screening • Package Evaluation • Project Planning Phase • Gap Analysis • ReengineeringVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 28
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH • Configuration • Implementation Team Training • Testing • Going Live • End-user Training • Post-implementation Vendors Pre-Selection Company Pre-Selection Managemen Screening Screening t Package Evaluation Package Evaluation Project Planning Project Planning Gap Analysis Testing Configuration Gap Analysis Testing Configuration Re- engineering Implementation End-user Training Re- engineering Implementation End-user Training Tram training Tram training Going Live Going Live Post Implementation Post Implementation Phase Phase Fig. ERP implementation lifecycle – different phasesPRE - EVALUATION SCREENING Once the company has decided to go in for the ERP system, the search for the perfectpackage starts. But there are hundreds of ERP vendors – of all sizes and shapes – all claiming tohave the solution that is ideal for you. Analyzing all the packages before reaching a decision is nota viable solution. It is also a very time consuming process. So it is better to limit the number ofpackages that are evaluated to less than five. It is always better to do a thorough and detailedevaluation of a small number of packages, than doing a superficial analysis of dozens of packages.Hence, the company should do a pre-evaluation screening to limit the number of packages thatare to be evaluated by the committee. Not all packages are equal – each has its own strengths andweakness. The pre-evaluation process should eliminate those packages that are not at all suitablefor the company’s business processes. One can zero in on the few best packages by looking at theproduct literature of the vendors, getting help from external consultants and most importantly, byfinding out what package is used by companies which are similar. It is always better to find outhow the different packages are performing in environments similar to yours.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 29
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHPACKAGE EVALUATION The evaluation / section process is one of the most important phases of the ERPimplementation, because the package that you select will decide the success or failure of theproject. Since ERP systems involve huge investments, once a package is purchased, it is not aneasy task to switch to another one. So it is a ‘do it right the first time’ proposition. There is littleroom for error. The most important factor that should be kept in mind when analyzing the differentpackages is that none of them are perfect. The idea that there is no perfect package needs to beunderstood by everyone in the decision-making team. The objective of the selection process is notto identify a package that covers each and every requirement (a perfect fit). The objective is to finda package that is flexible enough to meet the company’s needs, or in other words, a software thatcould be customized to obtain a ‘good fit’. Once the packages to be evaluated are identified, the company needs to develop a selectioncriteria that will permit the evaluation of all the available packages on the same scale. To choosethe best system, the company should identify the system that meets the business needs, thatmatches the business profile and that which identifies with the business practices of the company.It is impossible to get a system that will perform, exactly as the company does business, but theaim should be to get the system that has the least number of differences. According to S. Shankaranarayanan, Senior Consultant with Baan Infosystems India Pvt.Ltd. (ERP Systems-Using IT to gain a competitive advantage), some important points to be kept inmind while evaluating ERP software include: • Functional fit with the company’s business processes. • Degree of integration between the various components of the ERP system. • Flexibility and scalability • Complexity • User friendliness • Quick implementation • Ability to support multi-site planning and control • Technology –client/server capabilities, database independence, security • Availability of regular upgrades • Amount of customization required • Local support infrastructure • Availability of reference sites • Total costs, including cost of license, training, implementation, maintenance, customization and hardware requirements.2. Explain implementation Methodology.IMPLEMENTATION TEAM TRAININGVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 30
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH Around the same time that the configuration is taking place, the implementation team isbeing trained, not so much how to use the system, but how to implement it. This is the phasewhere the company trains its employees to implement and later, run the system. The ERP vendorsand the hired consultants will leave after the implementation is over. But for the company to beself-sufficient in running the ERP system, it should have a good in-house team that can handle thevarious situations. Thus, it is very vital that the company recognizes the importance of this phaseand selects those employees who have the right attitude – people who are willing to change, learnnew things and are not afraid of technology – and good functional knowledge.TESTING This is the phase where you try to break the system. You have reached a point where youare testing real case scenarios. The system is configured and now you must come up with extreme-case scenarios – system overloads, multiple users logging on at the same time with the samequery, users entering invalid data, hackers trying to access restricted areas and so on. The testcases must be designed specifically to find the weak links in the system and these bugs should befixed before going live.GOING LIVE This is it. Lights on, switches thrown, gloves off. On the technical side, the work is almostcomplete – data conversion is done, databases are up and running; and on the functional side, theprototype is fully configured and tested and ready to go operational. The system is officiallyproclaimed operational, even though the implementation team must have been testing it andrunning it successfully for some time. But once the system is ‘live’ the old system is removed, andthe new system is used for doing business.END-USER TRAINING This is the phase where the actual users of the system will be given training on how to usethe system. This phase starts much before the system goes live. The employees who are going touse the new system are identified. Their current skills are noted and based on the current skilllevels, they are divided into groups. Then each group is given training on the new system. Thistraining is very important as the success of the ERP system is in the hands of the end-users. Sothese training sessions should give the participants an overall view of the system and howindividual actions would affect the entire system. In addition to these general topics, eachemployee is trained on the job or task that he/she is supposed to perform once the system goeslive. It is human nature to resist change. Also many people are afraid of computers and other newtechnologies. So there will be resistance to change. Another factor is that not all people will besuccessful in making the changeover. The company management should address these concernsand take necessary actions to avoid failure. The end-user training is much more important andmuch more difficult (since most end-users are not thrilled at having to change) than theimplementation, team training. Companies are beginning to take this phase seriously, as there isVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 31
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHstatistical evidence now, which shows that most implementations fail because of a lack of end-usertraining.POST- IMPLEMENTATION (MAINTENANCE MODE) One important factor that should be kept in mind is that the post-implementation phase isvery critical. Once the implementation is over, the vendors and the hired consultants will go. Toreap the full benefits of the ERP system, it is very important that the system should get enterprise-wide acceptance. There should be enough employees who are trained to handle the problems thatmight crop-up. There should be people, within the company, who have the technical prowess tomake the necessary enhancements to the system as and when required. The system must beupgraded as and when new versions or new technologies are introduced. Here the organizationshould think in terms of the incremental benefits of the new enhancements. Because with anyupgradation or enhancements, there will be a lot of other aspects like user training that have to beconsidered. So instead of going in for upgradation as and when a new version is announced bythe vendor, the organization should first analyse the costs and benefits. The post-ERP organization will need a different set of roles and skills than those with lessintegrated kinds of systems. At a minimum, everyone who uses these systems needs to be trainedon how they work, how they relate to the business process and how a transaction ripples throughthe entire company whenever they press a key. The training will never end; it is an ongoingprocess; new people will always be coming in, and new functionality will always be entering theorganization. Just as courtships and honeymoons are different from marriages, living with ERP systemswill be different from installing them. Projects for implementing the ERP systems get a lot ofresources and attention. However, an organization can only get the maximum value of theseinputs if it successfully adopts and effectively uses the system.3. Who is an ERP vendors and what are his roles?VENDORS Vendors are the people who have developed the ERP packages. They are the people whohave invested huge amounts of time and effort in research and development to create thepackaged solutions. If one studies the history of the ERP packages and finds out how eachpackage evolved, it soon becomes evident that every ERP package grew out of the experience oropportunity of a group of people, working in a specific business, who created systems that coulddeal with certain business segments. Now with the ERP market place becoming crowded withmore and more players entering the market and the competition becoming hot, today’s ERPpackages have features and functionality to cater to the needs of businesses in almost all sectors.The ERP vendors spent billions of rupees in research to come up with innovations that make thepackages more efficient, flexible, and easy to implement and use. Also with the evolution of newtechnologies, the vendors have to constantly upgrade their product to be able to use the best andVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 32
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHlatest advancements in technology.Role of the Vendor First and foremost, the vendor should supply the product and its documentation as soon asthe contract is signed. Only after the software is delivered, can the company develop the trainingand testing environment for the implementation team. The vendor is responsible for fixing anyproblems in the software that the implementation team encounters. So the vendor should have aliaison officer who should constantly interact with the implementation team. Another role the vendor has to play is that of the trainer-to provide the initial training forthe company’s key users, people who will play lead roles in the implementation of the system.These key users are the ones who will define, together with the consultants, how the software is toserve the company. In other words, it is these in-house functional experts who will decide how thefunctionalities are to be implemented, as well as how to use or adapt the product to suit thecompany’s unique requirements. So it is very critical that these key users are given a thoroughtraining on the features of the package. Vendor’s training should achieve the goal of showing thekey users how the package works, what are the major components, how the data and informationflows across the system, what is flexible and what is not, what can be configured and what cannot,what can be customized and what should not, what are the limitations, what are the strengths andweaknesses and so on. Now some of you might ask: we are hiring consultants who are experts in the package sowhy can’t we get training from the consultants? This is true. Most of the consultants are capable ofproviding sound training for the packages. But we are hiring the consultants for implementing thesystem. The objective of the vendor training is to show how the system works, not to show how itshould be implemented. This means that the vendor demonstrates the product as it exists andhighlights what are the possible options available. The company’s employees who areparticipating in the vendor training should try to understand the characteristics of the packageand the impact of the system on their business processes. The trainees should use these trainingsessions to question the vendor on all aspects of the system. The consultants also have a role to play during this vendor training. They shouldparticipate in the training sessions to evaluate how the users react to the reality that is starting totake shape from the detailed presentations and demos. Consultants should also ask questions thatthe vendors are trying to avoid and the users are unaware of. This is the best way to present thereal picture to the users and it will also prevent the vendors from making false claims. The role of the package vendor does not end with the training. The vendor also plays animportant project support function and must exercise the quality control with respect to how theproduct is implemented. It is the vendor who understands the finer details and subtleties of theproduct and can make valuable suggestions and improvements that could improve theperformance of the system. It is also in the best interests of the vendor that this participationcontinues, because if the implementation fails, most of the blame will fall on the vendor. Also aVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 33
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHsuccessful implementation means an- other satisfied client, improved goodwill and good referralsand so on. So the vendor will continue to participate in all the phases of the implementation,mostly in an advisory capacity, addressing specific technical questions about the product andtechnology. The vendor has other responsibilities also. There will be ‘gaps’ between the package andthe actual business processes. The software might have to be customized to suit the company’sneeds. Customizing means altering the product so that it is suited for the company’s purposes.The choice of whether to customize or not is the one that can have enormous impact on the projectand it often constitutes a point of conflict between the consultants and users. But if the decision tocustomize has been taken, it is the vendor’s duty to carry out the necessary modifications. This isbecause only the vendor knows the product well enough to make the necessary changes withoutaffecting the other parts. Moreover, the company should get a guarantee (in writing) from thevendor that despite the customization, it will be able to benefit from the future softwareimprovements introduced by the vendor.4. Who are consultants and what are their roles?CONSULTANTS Business consultants are professional who specialize in developing techniques andmethodologies for dealing with the implementation and with the various problems that will cropup during the implementation. They are experts in the administration, management and control ofthese types of projects. Each of them will have many man-ears of implementation experience withvarious industries and would have time-tested methodologies and business practices that willensure successful implementation. They will be good at all phases of the implementation lifecycle,right from package evaluation to end-user training. The only problem with them is that they areexpensive-very expensive. Many of the big consulting firms, having forecasted the ERP boom,invested a great deal of money in developing a range of consulting services in this field andassigned many of their professionals to become specialists in the various aspects of ERP-packagesand their implementation. These firms researched the various products, developed an in depthunderstanding of each product’s strengths and weaknesses, worked by the side of the ERPvendors, confirmed that the vendor’s package worked and learned the tricks and techniques of thetrade, found out the pitfalls and mistakes that should be avoided and thus created a pool ofexperts who could handle the ERP implementation without failure. Thus, consultants are people who have made the business of ERP implementation theirbusiness and have invested huge amount, of money and manpower for that purpose. So whenyou want to get the services of these consultants, the first question that will be asked is –“Are theygoing to be expensive?” The answer is a definite YES. The consultants will be expensive, so thecompany will have to formulate a plan regarding best optimum utilization of the money spent onconsultants. If we study the statistics, we can see that a well-selected, integrated system that wassuccessfully implemented and which is successfully working usually pays for itself in a relativelyshort period – between 10 and 30 months. If you analyze the cost break-up, you will find that theVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 34
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHmost expensive part of the implementation was the consultation charges. For a typical ERPimplementation, the cost of consultants is 1.5 to 3 times for every rupee invested in the softwareproduct. Sounds amazing; but it is true and it is also true that the software will pay for itself-thesoftware cost, the consultant’s charges and other expenses incurred during implementation – inthe above mentioned period (10-30 months). But the catch is that the product has to be the rightone and the implementation has to be successful. That is why the expertise of the consultantsbecomes invaluable and the money spent on good consultation is never wasted. So finding theright consultants – people who have the necessary know-how, who will work well with thecompany personnel, people who will transfer their knowledge to the company’s employees andpeople who are available in case their services are required again – is very important.Role of Consultants The role of the consultants is very familiar to all of us because we have seen many of themin action. The company places its trust in the consultants, that its business objectives will beachieved. In fact, it is a better practice that the contract between the company and the consultantsshould have all the performance clauses in place. The consultants should guarantee the success ofthe project and should be able to show the results (quantifiable results like reduction in cycle time,increased response time, improved productivity and so on) to the satisfaction of the companymanagement. Consultants are responsible for administering each of the phases of the implementation, sothat the required activities occur at the scheduled time and at the desired level of quality and witheffective participation of all those who must participate. For keeping the promises that theconsultants have made during the negotiations, they have to transform their approaches andmethodologies into detailed work plans. The methodology will have to be converted into tasksand should be allocated to the right people. The time schedule for each phase and each task has tobe determined and the project plan has to be finalized. Consultants should add value to the project. They bring the know-how about the packageand about the implementation-the know-how that is not included in the standard documentation.This know-how (also know as practical knowledge) is derived from their expertise which stemsfrom practical experience. Because the consultants have seen many projects and have made orseen many mistakes, they can avoid the phenomenon of ‘reinventing the wheel’. They will knowwhat will work and what will not. Thus by eliminating the trial-and-error method ofimplementation, and by doing it right the first time, the consultants help in saving huge amountsof money, time and effort . Consultants should also know how to remain impartial while questioning current companyprocesses in an effort to promote better businesses practices and better implementation results.They should strive to improve the company’s business processes so that the software package canbe used as it was originally intended by its developers. Refining the company’s processes can onlyoptimize the performance of the system and maximize future user satisfaction. The consultants arealso responsible for analyzing and clearly addressing the customization issues. They must be ableVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 35
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHto distinguish between the ‘must have’ and ‘nice to have’ items and decide on the level ofcustomization. This is an area where the consultants have to use their diplomatic skills, as thecompany people might want to customize all the aspects. It is the duty of the consultants topresent the advantages and drawbacks of each area and reach a consensus decision, which shouldalso be the right one. Consultants need to position themselves in such a way as to balance theirloyalty to the client and the project, with that of defending the package vendor, when suchdefense is technically correct. This is indeed a very difficult job (like a tight-rope walk) and that iswhy consultants are being paid such huge amounts for their services. It is the duty of the consultant to understand the total context and scope of the envisionedwork and to know when to alert the company management about actions and decisions that mustbe undertaken so that the job will not be compromised and the implementation will not bejeopardized. Maintaining technical documentation on the project also falls within the duty of theconsultant. The consultants will leave once the project is complete, but the knowledge of theproject must stay within the organization. So the consultants should create a knowledge base andshould train enough people so that the work they have started is continued.5. Explain End users in detail.End-Users: End users are the people who will be using the ERP system once it is in place. These are thepeople who were doing the functions that are being automated or computerized by the ERPsystem. With the implementation of the ERP system, the old job descriptions will change, thenature of the job will undergo drastic transformation. It is human nature to resist change. Whenwe are talking about implementing an ERP system we are talking about change in a very massivescale. Employees, will fear that system will replace existing jobs, as many functions will beautomated. Also people will be afraid of the amount of training they have to undergo andlearning they have to do to use the new system. Job profiles will change, job responsibilities willundergo drastic alterations, and people will be forced to develop new skill sets. If these fears arenot addressed and alleviated well in advance, it will cause trouble for the organization. It should be worth noting the fact, that while the ERP systems eliminate many existing jobs,it creates many new ones-ones with more responsibilities and value addition. It is easy to see thatthe automation of the business processes, through technology, can eliminate the jobs of manyemployees whose function it is to record, control, calculate, analyze, file or prepare reports. But itmust be pointed out to the employees that the same automation creates many more opportunitiesfor them, because they can get away from the monotonous clerical work and transform themselvesinto highly valued individuals, in a new and challenging working environment using moderntechnology. If the company can succeed in making its employees accept this fact and assist inmaking the transformation (by giving them training), then the major (and most critical) obstacle inthe path of an ERP implementation is solved. UNIT – IIIVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 36
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH PART – A1. What are the modules available in ERP Package? ♦ Finance ♦ Manufacturing and Production Planning ♦ Sales and Distribution ♦ Plant Maintenance, ♦ Quality Management ♦ Materials Management, etc.2. What is financial data? The entire concept of information technology is based on the premise that providing theright information, to the right people, at the right time can make a critical difference to theorganization. Much of this key information could be taken from the financial data. But merelyhaving the financial data is not enough. You need a set of processes and views of your data thatprovides up-to-the-minute financial information in exactly the form you need it to make thatcritical difference and help with that crucial decision. Accounting software needs access toinformation in each area of your organization, from R & D and market research throughmanufacturing, distribution and sales. Your financial solution must provide the managementwith information that can be leveraged for strategic decisions, in order to achieve competitiveadvantage.3. Define financial module in ERP module. The finance modules of most ERP systems provide financial functionality and analysissupport to thousands of businesses in many countries across the globe. These ERP systemsinclude not only financial application components, but also Human Resources, Logistics, BusinessWorkflow and links to the Internet. Hundreds of business processes are covered in these systems.4. Write the types of subsystem in financial module.  Financial Accounting (General Ledger, Accounts Receivable / Payable, Special Ledgers, Fixed Asset Accounting, Legal Consolidation)  Investment Management (Investment Planning/Budgeting/ controlling, Depreciation Forecast/ Simulation/ Calculation)  Controlling (Overhead Cost Controlling, Activity-Based Costing, product Cost Accounting, Profitability Analysis)  Treasury (Cash Management, Treasury Management, Market Risk Management, Funds Management).  Enterprise Controlling (Executive Information System, Business Planning and Budgeting, Profit Centre Accounting).VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 37
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH5. Describe financial accounting. The objective of a good financial accounting system is to provide company wide controland integration of financial Accounting Module of an ERP system, gives you the ability tocentrally track financial accounting data within an international framework of multiplecompanies, languages, currencies, and charts of accounts. For example, when raw materials movefrom inventory into manufacturing, the system reduces quantity values in inventory andsimultaneously, subtracts values for inventory accounts in the balance sheet. Most of the FinancialAccounting modules comply with international accounting standards, such as GAAP and IAS.They also fulfill the local legal requirements of many countries.6. Define Investment Management. Investment Management provides extensive support for investment processes right fromplanning through settlement. Investment management facilitates investment planning andbudgeting at a level higher than that needed for specific orders or projects.7. Define Controlling. The controlling system gathers the functions required for effective internal cost accounting.It offers a versatile information system, with standard reports and analysis paths for the mostcommon questions. In addition, there are features for creating custom reports to supplementstandard reports.8. Define Treasury. You can gain a significant competitive advantage by efficiently managing the short,medium, and long – term payment flows and the resulting risk exposure. Tasks such as short –term monitoring and concentration of bank account balances, medium – term planning, andforecasting of incoming and outgoing resources in accounts receivable and payable, to a long –term view of areas such as materials management and sales, underline the importance of inter-grating information from various company divisions. Linking these operating divisions torealised and planned financial transactions and positions in treasury, has a significant impact onthe company’s success. Such integration also facilities management and control of cash flows, andrisk positions through all the divisions in the company. The treasury component provides youwith a basis for effective liquidity, portfolio and risk management.9. Define Enterprise Controlling. Enterprise controlling comprises of those functions that will optimise share holder value,while meeting internal objectives for growth and investment. This module usually includeexecutive information system, business planning and Budgeting, Consolidation, and Profit CentreAccounting.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 38
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH10. Define Manufacturing Module in ERP Package. A good manufacturing system should provide for multi – mode manufacturingapplications that encompass full integration of resource management. These manufacturingapplications should allow an easier exchange of information throughout the entire globalenterprise, or at a single site within a company.11. How does manufacturing respond to the customer? Manufacturers must respond quickly and effectively to customer demands. While agility isdesirable, agility without an effective enterprise manufacturing system results in speed withoutpurpose. The very heart of an enterprise manufacturing system centers on its integrated planning,business process and execution capabilities.12. What are the major subsystem of the manufacturing module?  Material and Capacity Planning  Shop floor control  Quality Management  JIT / Repetitive Manufacturing  Cost Management  Engineering Data Management  Engineering Change Control  Configuration Management  Serialization / Lot Control  Tooling13. Define Material and capacity planning. The planning systems of ERP packages are designed to provide the responsiveness yourcompany needs to meet those customer requirements. With these systems, planners can simulatealternative plans; gaining the information they need to determine which parts and assemblies tomake, which to buy and when to manufacture or purchase. Most packages have features togenerate recommendations for purchases and production and, where necessary, recommendchanges to current plans to prevent under or over – utilization of work centers.14. Define quality management. Elimination of defects in standard product designs and manufacturing methods, beforeproduction, is just as important as eliminating defects during production. In fact, to achievequality levels, manufacturers must focus on identifying and correcting defects in underlyingproduct designs and production methods and not simply inspect the incoming material andfinished goods.15. Define Bench Marking.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 39
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH A method of measuring processes against those of recognized leaders. It helps establishpriorities and targets, leading to process improvement. It is undertaken by identifying processesto be benchmark and their key characteristics; determining who to benchmark; collecting andanalyzing data from direct contact, surveys, interviews, technical journals and advertisements;determining the ‘best of class’ from each benchmark item identified; and evaluating the process interms of the benchmarks set and the improvement goals.16. Define JIT. JIT Just – in – Time: A policy calling for the delivery of materials products or services atthe time they are needed in an activity or process. Used to reduce inventory, wait time andspoilage.17. What are the subsystems in Human resources module?The various subsystems under the HR module are: • Personnel Management (HR master data, Personnel administration, information systems, Recruitment, Travel management, Benefits administration, Salary administration) • Organizational Management (Organizational structure, Staffing schedules, Job descriptions, Planning scenarios, Personnel cost planning) • Payroll Accounting (Gross/net accounting, History functions, Dialog capability, Multi- currency capability, International solutions). • Time Management (Shift Planning, Work schedules, Time recording Absence determination) • Personnel Development (Career and succession Planning, Profile Comparisons, Qualifications assessments, Additional training determination, Training and event management).18. Define personal management. Personal management includes numerous software components, which allow you to dealwith human resources tasks more quickly, accurately and efficiency. You can use thesecomponents not only as part of the company wide ERP solution, but also as stand – alone systems.19. Define organizational management. This module will assist you in maintaining an accurate picture of your organization’sstructure, no matter how fast it changes. In many cases, graphical environments make it easy toreview any moves, additions, or changes in employee positions.20. What are the subsystems in plant maintenance module?The major subsystems of a Plant Maintenance module are:VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 40
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH • Preventive Maintenance Control • Equipment Tracking • Component Tracking • Plant Maintenance Calibration Tracking • Plant Maintenance Warranty Claims Tracking21. Write the functions of quality management.  Quality planning  Quality Inspection  Quality Control22. Define CIQ. The integration of Quality Management in the ERP systems provides considerableadvantages because only an integrated system can support all the elements of a qualitymanagement system, according to ISO 9000. The integration allows the quality managementfunctions to influence all processes within a company, thereby affecting all phases of a product’slife cycle.23. What are the main modules of the material management? ♣ Pre-purchasing Actives ♣ Purchasing ♣ Vendor Evaluation ♣ Inventory Management ♣ Invoice Verification and Material Inspection24. Differentiate Capital Budget and Cash Budget. Capital budget concerns fixed asset requirements for the next five years and how these willbe financed. Cash budget is basically a detailed plan that shows all expected sources and uses of cash tomeet short term expenses.25. What are the subsystems in sales and Distribution module? • Data Management • Order Management • Shipping • BillingVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 41
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH • Pricing • Transportation PART - B1. Explain Finance module and its sub system. The entire concept of information technology is based on the premise that providing theright information, to the right people, at the right time can make a critical difference to theorganization. Much of this key information could be taken from the financial data. But merelyhaving the financial data is not enough. You need a set of processes and views of your data thatprovides up-to-the-minute financial information in exactly from you need it to make that criticaldifference and help with that crucial decision. Accounting software needs access to information ineach area of your organization, from R&D and market research through manufacturing,distribution and sales. Your financial solution must provide the management with informationthat can be leveraged for strategic decisions, in order to achieve competitive advantage. This section provides an overview of the financial solutions in most of the ERP packages, Intoday’s business enterprise, you need to know that your financial decisions are based on today’sdata, not numbers from records closed a month ago, or even a week ago. And you need to knowthat this same ‘today’s’ data represents every segment of your organization’s activities, whetheryour enterprise stretches across a room or around the globe. This is essential, because the mostefficient way to get your enterprise to where you want it tomorrow is to know exactly where it istoday. What ever be the financial goals of your organization, the financial application componentsof the ERP solutions work hand – in – hand to improve the bottom line. This is true because thefinancial functionality is tightly integrated across all business areas and all geographic areas. Thistight integration includes all the other different modules, from materials management to humanVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 42
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHresources to logistics. Because the ERP system automatically links related areas, it eliminates theneed to repeat procedures. You enter your data only once. Within the ERP system, all areas workin concert, creating a new level of efficiency in handling your financial data. The finance modules of most ERP systems provide financial functionality and analysissupport to thousands of business in many countries across the globe. These ERP systems includenot only financial application components, but also Human Resources, Logistics, Business Workflow and links to the Internet. Hundreds of business processes are covered in these systems.The finance modules of most ERP systems will have the following sub-systems: Financial Accounting (General Ledger, Accounts Receivable / Payable, Special Ledgers, Fixed Asset Accounting, Legal Consolidation) Investment Management (Investment Planning/Budgeting/ controlling, Depreciation Forecast/ Simulation/ Calculation) Controlling (Overhead Cost Controlling, Activity-Based Costing, product Cost Accounting, Profitability Analysis) Treasury (Cash Management, Treasury Management, Market Risk Management, Funds Management) Enterprise Controlling (Executive information System, Business Planning and Budgeting, Profit Centre Associating).2. Explain Financial Module Sub system in detail. The objective of a good financial accounting system is to provide company wide controland integration of financial Accounting Module of an ERP system, gives you the ability tocentrally track financial accounting data within an international framework of multiplecompanies, languages, currencies, and charts of accounts. For example, when raw materials movefrom inventory into manufacturing, the system reduces quantity values in inventory andsimultaneously, subtracts values for inventory accounts in the balance sheet. Most of the FinancialAccounting modules comply with international accounting standards, such as GAAP and IAS.They also fulfill the local legal requirements of many countries.General Ledger The General Ledger (GL) is essential both to the financial accounting system and tostrategic decision – making. Through active integration with business processes in logistics and inthe accounting sub – ledgers, the GL serves as a central pool of financial data for financialreporting as well as for other accounting areas. However, the origin of centrally stored data canstill be traced at any time by drilling down on data from a given transaction. The general Ledger supports all the functions needed in a financial accounting system. Thisincludes flexible structuring of the chart of accounts at the group and company level, distributedapplication scenarios, real-time simultaneous update of sub – legers and the general ledger,VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 43
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHelimination of time – consuming reconciliation, and parallel views of data, in both the generalledger and the managerial accounting applications. The GL provides document parking, posting,reporting, and an integrated financial calendar for automating periodic activities. A typicalgeneral ledger is shown in Fig. The system also provides summary information from othercomponents at a user – defined level of detail. By creating combinations of entered data, yougenerate data summaries, that can be used in planning, allocation, distribution and reporting. Fig. Typical general ledger Usually, the GL has features that allow you to take advantages of more functions in GeneralLedger and in Cost Centre Accounting. For example, you can create your own database tables anddefine non – standard fields, to suit specialized accounting or reporting requirements. Some ERPsystems support features, like the option of grouping data selectively and then, updating it in onlyVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 44
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHthere ledgers which have been specified; provision for parallel charts of account and currencies;planning and allocation tools; direct data entry in special purpose ledgers for adjustment postings;user – defined reporting; etc.Account Receivable and Payable ERP systems offer a financial overview of global business partner relationships, in theAccounts Receivable and Payable functions. These sub-legers are integrated, both with theGeneral Ledger and with, areas in Sales and Distribution and Materials Management, wherefinancial data originates. Accounts Receivable and payable transactions are performedautomatically, when related processes take place in other modules. This module uses standardbusiness rules for procedures ranging from data entry and reporting, to processing payments andbank transactions. Accounts Receivable and Payable functions include Internet integration,document management, full support for EDI processing, including automatic integration withcash management and flexible reporting using customer and vendor information systems. Themodule also provides, enterprise-wide credit management with workflow integration, paymentautomation with EFT and check processing, and document parking with various approvalprocedures.Asset Accounting Asset accounting, manages the company’s fixed assets. With in the Financial Accountsystem, Asset Accounting serves as a sub-ledger to the General Ledger, providing detailedinformation on asst – related transactions. Significant features include country-specific charts ofdepreciation complying with local legal requirements, full support throughout the asset life cyclefrom acquisition to retirement, depreciation simulation and interest calculation, and integrationwith project management and order accounting for management of capital assets. AssetAccounting also provides integration with Plant Maintenance for management of machinery andequipment, management of leased assets and assets under construction, mass processing withworkflow integration, and interactive reporting.Legal Consolidation Consolidated financial statements need to be integrated effectively with operational data atthe individual company level. By using different valuation methods, you can plan balance sheetstrategies to suit the company’s requirements. The legal consolidation sub-system is closely linkedto the financial Accounting system, permitting direct data transfer, from individual statementsinto the consolidated report. This cases the workload of the staff and reduces data entry errors. Inaddition to the consolidated statements required by law, Legal Consolidation also allows you, tocreate multiple views of you consolidation data. With these views you can generate reports aboutlegal entities or segments of your business.3. Explain Controlling in financial module.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 45
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH The controlling system gathers the functions required for effective internal cost accounting.It offers a versatile information system, with standard reports and analysis paths for the mostcommon questions. In addition, there are features for creating custom reports to supplementstandard reports.Overhead Cost Controlling Many organizations experience a significant increase in the percentage of indirect costs,which cannot be directly assigned to either the products manufactured, or to the servicesrendered. While cost monitoring and optimization may be quite advanced in production areas,transparency is often lacking in over head cost areas. The overhead cost controlling sub systemfocuses on the monitoring and allocation of over heads.Cost Centre Accounting Cost centre accounting analyses where overheads occur within the organization. Costs areassigned to the sub – areas of the organization where they originated. The system offers a widevariety of methods for allocating posted amounts and quantities. In particular, activity accountingpermits, the allocation of great many costs to products, based on cost sources and enablingassignments, which were not previously possible.Overhead Orders Overhead orders subsystem collects and analyses costs, based on individual internalmeasures. This system can monitor and automatically check budgets assigned to each measure.Activity – Based Costing The goals of the entire organization, should come before the goals of individualdepartments, when it comes to business process reengineering. The Activity-Based Costingmodule, is a response to the growing need for monitoring and controlling cross- departmentalbusiness processes, in addition to functions and products. Seeing costs from a new perspective,substantially enhances organization transparency in overhead areas. The system automaticallydetermines the utilization of business processes by products, customers, and other cost objectsbased on the cost drivers taken from the integrated accounting environment. This, significantlyreduces the effort involved in maintaining a business processes by products, customers, and othercost objects based on the cost drivers taken from the integrated accounting environment. This,significantly reduces the effort involved in maintaining a business process model in a separatesystem.Product Cost Controlling Product cost controlling module determines, the costs arising from manufacturing aproduct, or providing a service. Plan and standard values, serve in valuating war house stock andfor contrasting revenues received with costs. In addition, the values in Product Cost Controlling,VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 46
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHare crucial for determining the lowest price limit for which a product is profitable. Simulationsillustrate the effects of changes in production methods on the cost of goods manufactured.Cost object controlling Cost object controlling helps you monitor manufacturing orders. Integration with thelogistics components results in a logistical quantity flow, that provides instant information onactual cost object costs, allowing ongoing costing calculations at any time. Follow-up calculationsdetermine and analyze the variances between actual manufacturing, costs, and the plan costsresulting from Product Cost Planning.Profitability Analysis Profitability analysis subsystem examines the sources of returns. As part of salescontrolling, Profitability Analysis is the last step in cost – based settlement, where revenues areassigned to costs according to the market segment. You can defined any market segment- -distinguishing, for example, between products, customers, orders, sales organizations,distribution channels and business areas – and evaluate it, according to contribution and revenuemargins. Information from Profitability Analysis, frames important decisions in areas such asdetermining prices, selecting customers, developing conditions and choosing distributionchannels.4. Explain sales and distribution in ERP package. In today’s global business environment, the one thing companies can count on is rapidchange – and the new opportunities and challenges that change is sure to bring. New competitionpushes businesses product life cycles and forces of service, while evolving technology compressesproduct life cycles and forces companies to adopt new technologies or risk losing market share. Inthis ever – changing environment, keeping a competitive edge means being able to anticipate andrespond quickly to changing business conditions. To keep pace with these rapid changes,companies need an integrated and flexible enterprise system that supports all aspects of theirbusiness with state – of- the – art functionality. This innovative solution should upgradeeffortlessly and interface easily with third – party applications, as well as have the ability toincorporate existing systems while extending its reach to the internet and e- commerce. With today’s business environment characterized by growing competition, shrinking cycletimes and the accelerating pace of technological innovation, companies are increasingly beingforced to streamline business processes. In a world in which it is no longer enough to simply havethe best product, these companies are focusing on core competencies and closer partnerships overthe whole supply chain. Here, increased efficiency in sales and distribution is a key factor toensure that companies retain a competitive edge and improve both profit margins and customerservice. In helping business to ‘beat them on delivery’, the sales and distribution modules of manyERP vendors offer a comprehensive set of best – of – bread components for both order andlogistics management. Many of these systems are tightly integrated with the DistributionVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 47
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHRequirements Planning (DRP) engine of the ‘for just –in time’ deliveries. This integration enablesthe mapping and supply of single – site or multi – site organizations and the definition ofrelationships in a company’s internal supply chains. Developing precise logistics management.Many of these systems are tightly integrated with the Distribution Requirements Planning (DRP)engine of the ‘ for just-in-time’ deliveries. This integration enables the mapping and supply ofsingle – site or multi – site organizations and the definition or relationships in a company’sinternal supply chains. Developing precise logistics planning for just- in – time deliveries, thissystem can also generate replenishment orders by using defined warehouse requirements. The following are the sales related business transactions: • Sales queries, such as inquires and quotations • Sales orders • Outline agreements, such as contracts and scheduling agreements. • Delivery/Shipment • Invoicing/Billing • After sales supportDuring sales order processing, the following basic functions are carried out: • Inquiry handling • Quotation preparation and processing • Contracts and contract management ( order management) • Monitoring the sales transactions • Checking for availability • Transferring requirements to materials planning (MRP) • Scheduling the delivery • Calculating pricing and taxes • Checking credit limits • Invoicing /Billing • Creating printed or electronically transmitted documents (confirmations, and so on). Depending on how your particular system is configured, these functions may be completelyautomated or may also require some natural processing. The data that results from these basicfunctions (for example: shipping dates, confirmed quantities, prices and discounts) is stored in thesystem where it can be displayed and, in some cases, changed manually during subsequentprocessing. The sales and distribution module very actively interacts with the MaterialManagement and Financial Accounting modules for delivery and billing.Figure shows sales and distribution and its associated processes.Typically, a Sales and Distribution module will contain the following sub-systems: • Master Data ManagementVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 48
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH • Order Management • Warehouse Management • Shipping • Billing • Pricing • Sales Support • Transportation • Foreign Trade5. Explain manufacturing in ERP Package. Competition in the next millennium places and increased emphasis upon time, asexpressed by speed, quality, service and global focus. Agility is the watch word. Manufacturersare measured by their ability to react quickly to sudden, often unpredictable change in customerdemand for their products and services. To compete successfully beyond the year 2000 requiresmanufacturing applications that are time and activity based and above all else, focused on thecustomer, increasingly, these manufacturing applications are a centre point within the spectrum ofa supply chain, running from the customer to a suppliers and encompassing the entire enterprise. A good manufacturing system should provide for multi – mode manufacturingapplications that encompass full integration of resource management. These manufacturingapplications should allow an easier exchange of information throughout the entire globalenterprise, or at a single site within a company. Regardless of how bit or small an enterprise is,these applications should provide a wealth of feature / function, broad scope of coverage,operational stability and a platform-independent architecture. These capabilities empower anenterprise to achieve productivity gains, adopt forward – thinking technologies and implementprocess reengineering. As a company’s internal processes become more sophisticated or as marketforces change, these solutions should be capable of meeting the challenge. The manufacturingsystem should be integrated with the other modules of the package. A robust system of manufacturing planning business process, and execution must satisfy avariety of business practices and production methods. These business practices and productionmethods place stringent demands on the manufacturer. Regardless of how manufacturer viewtheir internal operations, to the customer, it boils down to quick response to customer demand intwo fundamental ways – Manufacturers either make products to stock prior to receipt of acustomer order, or they make and ship the products upon receipt of a customer order.Manufacturers must accomplish this task quickly efficiently and cost effectively to remainprofitable and competitive. These two fundamental ways of responding to customer demand areas shown in fig. To day, companies must be able to deliver customer – specific products with the lead – timeof standard, off – the – shelf products. To help manage product and market shifts, theManufacturing module provides the freedom to change manufacturing and planning methods, asand when they need a change. The Manufacturing modules provides the freedom to changeVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 49
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHmanufacturing and planning methods can be combined within the same operations, withunlimited flexibility to choose the best method – or combination of methods – for each product, ateach stage throughout its life cycle.Fig. Manufacturing process from raw materials (supplier to finished goods (customer)) In addition, this control and visibility comes without having to sacrifice the functionalityneeded to efficiently manage different types of production. These systems support the entire rangeof production strategies – only one system is needed to manage all manufacturing activities.Engineer –to- order products can be planned using the system, while the system’s forecasting anddistribution planning features handle make – to – stock items. Products that are assembled – to –order can be planned using advanced features available in the Manufacturing module. Alldemands can be aggregated into user – definable plans at a detail or summary level.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 50
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH Fig. Make – to – order and Make – to - stock Enterprise requirements then flow into consolidated production schedules and materialand capacity plans, and all production activity can be schedule and tracked through shop floorcontrol systems. The manufacturing module should enable an enterprise to marry technology with businessprocesses to create an integrated solution. It must provide the information base upon which theentire operation should be run. It should contain the necessary business rules to manage the entiresupply chain process, whether within a facility, between facilities, or across the entire supplychain. Control and execution can be performed at strategic, tactical and operational levels with inthe business. These require effective planning to support contract commitments throughout thesupply chain, control over intermediate range planning horizons and time fences, and executionover the short range of frozen scheduling required by the shop floor. Whether a single – siteimplementation, several sites with in one country, or hundreds covering the globe, themanufacturing system should provide the foundation for creating concurrent business processesacross the supply chain and achieving Return on Assets (ROA) improvement.6. Explain human Resource module. Human resources management is an essential factor of any successful business. Thecompetitive environment of the next millennium, with its economic and technological changes,will affect the HR department in the same way it will all the other areas of your enterprise. Inshort, HR managers must continually review and optimize their business processes. The HRVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 51
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHmodules of most ERP systems have a set of rich features and will integrate seamlessly with theother modules and are thus, invaluable aids in improving productivity. They offer company –wide solutions for HR departments and make it possible for other departments to access specificemployee data. A human resource management system has to be adaptable to company specificrequirements, and should constantly grow with increasing HR requirements. It should cover allthe functions required in business practices, it should be flexible enough to allow you to optimizeyour business processes by tailoring the ERP solution to suit your organization’s needs. Today,many businesses cross boundaries. The system should support the organization’s internationalneeds with country – specific versions of the HR components. A part from languages, currenciesand legal requirements, accounting systems often vary from country to country as well, makingthis a vital features. A flexible structure enables quick and easy customization of the system to suityour requirements. When you log on in a particular language, screens, messages and documentsappear in the language you specify. You then have access to the system’s complete functionality. The different ERP systems offer many different subsystems under the HR umbrella. Listedbelow are some of the most common subsystems. Here again, the idea is not to be comprehensivebut to give you an idea about the options available. The various subsystems under the HR moduleare: • Personnel Management (HR master data, Personnel administration, information systems, Recruitment, Travel management, Benefits administration, Salary administration) • Organizational Management (Organizational structure, Staffing schedules, Job descriptions, Planning scenarios, Personnel cost planning) • Payroll Accounting (Gross/net accounting, History functions, Dialog capability, Multi- currency capability, International solutions). • Time Management (Shift Planning, Work schedules, Time recording Absence determination) • Personnel Development (Career and succession Planning, Profile Comparisons, Qualifications assessments, Additional training determination, Training and event management).7. Explain plant maintenance module.Introduction The achievement of world class performance demands delivery of quality productsexpeditiously and economically. Organizations simply cannot achieve excellence with unreliableequipment. The attitude towards maintenance management has changed as a result of quickresponse manufacturing, Just-in-Time reduction of work in process inventory and the eliminationof wasteful manufacturing practices. Machine breakdown and idle time for repair was once anaccepted practice. Times have changed. Today when a machine breaks down, it can shunt downthe production line and the customer’s entire plant. The preventive Maintenance moduleVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 52
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHprovides an integrated solution for supporting the operational needs of an enterprise-widesystem. The Plant Maintenance module includes an entire family of products covering all aspectsof plant/equipment maintenance and becomes integral to the achievement of processimprovement. The major subsystems of a Plant Maintenance module are: • Preventive Maintenance Control • Equipment Tracking • Component Tracking • Plant Maintenance Calibration Tracking • Plant Maintenance Warranty Claims TrackingPreventive Maintenance Control Preventive Maintenance Control provides planning, scheduling and control of facilities andequipment. Equipment lubrication, component replacement and safety inspection can be plannedscheduled, and monitored. Maintenance tasks can be tracked for each machine, or piece ofequipment, by two user defined modes, as well as calendar day frequency. These modes couldinclude tracking by hours of operation, units of production produced, gallons of fuel consumed,or the number of days in operation since the last service interval. Preventive Maintenance Controlenables organizations to lower repair costs by avoiding downtime, machine breakage and processvariability. Companies achieve higher machine utilization and improved machine reliability andtolerance control, along with higher production yields.Equipment Tracking Equipment is an asset that needs to be monitored and protected. In many situations,equipment maintenance costs constitute the single largest controllable expenditure of anorganization. All facets of plant location history and utilization history are described and tracked.This history includes acquisition and disposition information and associations between differentpieces of equipment to pinpoint operational dependencies. Running totals for operation units todate (miles, hours, days, units of production, etc.) are also provided. Each piece of equipment isdefined by a model and serial number. User-defined data sheets can be developed which allowfor the grouping of user data into formats that can be linked to equipment records. All of thisdetailed information for technical specialists working in equipment operations, maintenance andtransportation control.Component Tracking Components are, typically subsets of larger equipment and deserve the same amount ofcost controlling scrutiny. Component tracking enables equipment managers to identifycomponents with chronic repair problems. They can determine whether a repair or replacementshould be covered by warranty. Planning component replacements, rather than waiting forcomponent failures to occur, reduces unscheduled equipment downtime. Component trackingincludes repair/exchange history and component service life.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 53
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHPlant Maintenance Calibration Tracking Plant Maintenance Calibration Tracking allows organizations to leverage their investmentin the Plant Maintenance module by providing for the tracking of equipment calibration insupport of ISO 9000 requirements.Plant Maintenance Warranty Claims Tracking Plant maintenance Warranty Claims Tracking is an administrative system designed toprovide control of all items covered by manufacturer and vendor warranties. It enables plantmanagement to recover all of the warranty; re-imbursements to which they are entitled but havenot been able to recover in the past. Features include the ability to establish the type and length ofwarranty, for example, elapsed day, months, mileage stipulation, or operating units. A completehistory is performed for each item covered by the warranty, and complete information regardingthe warranty service provider is generated.8. Explain quality Management in ERP Package. The ISO 9000 series of standards defines the functions of quality management and theelements of a quality management system. The functions in the Quality Management modulesupport the essential elements of such a system. The other integrated modules in the systemcomplement this functionality. The ISO standards require that quality management systemspenetrate all processes within an organization. The task priorities, according to the quality loop,shift from production (implementation phase) to production planning and product development(planning phase), to procurement and sales and distribution, as well as into the entire usagephase. In the area of production, quality assurance is no longer viewed in terms of inspection andthe elimination of defects alone. Instead, the production process itself becomes the focus ofattention.CAQ and CIQ Just as the requirements for quality management systems have changed as a result of theISO 9000 standards, the term Computer-Aided Quality Management (CAQ) must also beredefined. Computer-Integrated Quality Management (CIQ) is a more appropriate term becausean isolated CAQ system cannot carry out the comprehensive tasks of a quality managementsystem. The ERP system takes this into consideration by integrating the quality managementfunctions into the affected applications themselves (for example, procurement, warehousemanagement, production and sales/distribution), instead of delegating them to isolated CAQsystems. As a result of this approach, the processes described in the quality manual can beimplemented and automated in the electronic data processing (EDP) system. The representation of the elements of a quality management system within the ERP systemVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 54
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHis not only the responsibility of the Quality Management module. Instead, the ERP system mustbe considered as a whole, in which all integrated modules contribute their part. Within theframework of the system, for example, the Human Resources modules handles personnel-relatedmatters, the Controlling module handles the management of quality related costs and the PlantMaintenance module handles the monitoring of test equipment. As a part of the Logisticsapplication, the Quality Management module handles the traditional tasks of quality planning,quality in section and quality control. For example, it supports quality management inprocurement, product verification, quality documentation and in the processing of problems. The quality Management module’s internal functions do not directly interact with the dataor processes of other modules.Quality Management Module-FunctionsThe Quality Management module fulfills the following functions: Quality planning (Management of basic data for quality planning and inspection planning,Material specifications, Inspection planning) Quality Inspection (Trigger inspections, Inspection processing with inspection planselection and sample calculation, Print shop papers for sampling and inspection, Record resultsand defects, Make the usage decision and trigger follow-up actions) Quality Control (Dynamic sample determination on the basis of the quality level history,Application of statistical process control techniques using quality control charts, Quality scores forinspection lots, Quality notifications for processing internal or external problems and initiatingcorrective action to correct the problems, Inspection lot processing and problem processing,Quality Management Information System for inspections and inspection results and qualitynotifications).Computer Integrated Quality Management (CIQ) The integration of Quality Management in the ERP systems provides considerableadvantages because only an integrated system can support all the elements of a qualitymanagement system, according to ISO 9000. The integration allows the quality managementfunctions to influence all processes within a company, thereby affecting all phases of a product’slife cycle. The Quality Management module uses the system’s integration to link the tasks of qualitymanagement with those of the other applications, such as materials management, production,sales/distribution and cost accounting. An inspection that is triggered automatically upon goodsreceipt is an example of this. The Quality management module is integrated with the master dataand processes of the following applications:VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 55
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH • Materials management (purchasing, inventory management, warehouse management, material requirements planning) • Production (work scheduling, shop floor control) • Sales and distribution (delivery, creation of quality certificates) The Quality Management module supports the exchange of data with other applications inorder to prevent related data from being recorded and stored redundantly. For example, theinformation provided by a goods receipt posting relating to the material, vendor and lot size isautomatically transferred to the inspection lot data record when an inspection is triggered.9. Explain material management module in ERP package. The Materials Management module optimizes all purchasing process with workflow-driven processing functions, enables automated supplier evaluation, lowers procurement andwarehousing costs with accurate inventory and warehouse management and integrates invoiceverification. The main modules of the Materials Management module are: ♣ Pre-purchasing Actives ♣ Purchasing ♣ Vendor Evaluation ♣ Inventory Management ♣ Invoice Verification and Material InspectionPre-purchasing Activities This system supports the complete cycle of bid invitation, award of contract and acceptanceof service. The pre-purchasing activities include maintaining a service master database, in whichthe descriptions of all services that are to be procured can be stored. The system also keeps aseparate set of service specifications that can be created for each concrete procurement project orproposed procurement in the purchasing document. Sets of service specifications may include Requirementsboth items with services and items with materials. When creating such specifications, the user Calculationdoes not have to list individual services manually. Instead, the data is simply copied from themaster data. Use of this technique means that data only has to be entered once. The manual entryeffort is reduced to a minimum. Requisition for Quotations Vendor Ratings Quotation Evaluation Vendor SelectionVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 56 Contracts
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH Figure: The pre-purchasing activities moduleThere are two ways of entering service specifications-planned and unplanned.Purchasing Purchasing is a very important component of the Materials Management module. TheMaterials Management module is fully integrated with other modules in the system. It supportsall phases of materials management: materials planning and control, purchasing, goods receiving,inventory management and invoice verification. Good communication between all participants inthe procurement process is necessary for purchasing to function smoothly. Purchasingcommunications with other modules in the system to ensure a constant flow of information.Vendor Evaluation The vendor evaluation component has been completely integrated into the MaterialsManagement module. Information such as delivery dates, prices and quantities can be taken frompurchase orders. Vendor Evaluation also uses data from Quality Management, such as the resultsof incoming inspections or quality audits. It also accesses basic data in Materials Management,such as goods receipt data from Inventory Management. The Vendor Evaluation System supports the optimization of the procurement processes inthe case of the materials and service. In the case of procurement of materials, the system helps youselect sources of supply and facilitates the continual monitoring of existing supply relationships.It provides you with accurate information on prices, and terms of payment and delivery. Butevaluating vendors, you can improve your enterprise’s competitiveness. You can quicklydetermine and resolve any procurement problems that may arise on the basis of detailedinformation and in collaboration with the relevant vendors. In the case of procurement ofservices, you can check the reliability of the vendor’s form which you procure services on a plantby plant basis. You can determine whether the vendors perform the services within the specifiedtimeframes and appraise the quality of the work carried out.Inventory Management Inventory Management system allows you to manage your stocks on a quantity and valueVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 57
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHbasis, plan, enter and check any goods movements and carry out physical inventory. In theInventory Management system, the physical stocks reflect all transactions resulting in a change instock and thus, in updated inventory levels. The user can easily obtain an overview of he currentstocks of any given material. For each material, not only are the stocks in the warehouse shown,but also the stocks ordered but not yet delivered, reserved for production or for a customer, andthe stocks in quality inspection can be monitored. If a further subdivision by lots is required for amaterial, one batch per lot is possible. These batches are then managed individually in the stock.Special from the vendor or from the customer (for example, consignment stocks) are managedseparately from the company’s own stock. The stocks are managed not only on a quantity basis but also by value-a prerequisite forcost accounting. With every goods movement, the following values are updated:  Stock value for inventory management  Accounting assignment for cost accounting  Corresponding G/L accounts for financial accounting via automatic account assignmentInvoice Verification and Material Inspection The Invoice Verification component is part of the Materials Management system. Itprovides the link between the Materials Management component and the Financial Accounting,Controlling and Asset Accounting components. Invoice Verification in Materials Managementserves the following purposes: • It completes the materials procurement process-which starts with the purchase requisition, continues with purchasing and goods receipt and ends with the invoice receipt • It allows invoices that do not originate in materials procurement (for example, services, expenses, course cost, etc.) to be processed • It allows credit memos to be processed, either as invoice cancellations or discountsVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 58
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH UNIT – IV PART – A1. What are three primary factors for continued growth in ERP market?  ERP vendors are continuing to expand market presence by offering new applications such as supply chain management, sales force automation, customer support and human resources.  To sustain their rapid growth, ERP vendors will try to sell more licenses into their installed base. Currently, ERP vendors have a 10 – 20 per cent penetration (i.e. percentage of total employees currently using the RP system). This will grow to 40 – 60 per cent with in the next five years.  While ERP originated in the manufacturing market, ERP usage has spread to nearly every type of enterprise including retail, utilities, and the public sector and healthcare organizations. Most will purchase new ERP systems over the next five years, often for the first time.2. Write briefly about SAP AG. Founded in 1972, SAP (Systems, Applications and Products in Data Processing), based inWalldorf, Germany, is the leading global provider of client/server business application solutions.Today, SAP has installations in more than 107 countries.3. What are two versions of SAP’s ERP package? SAP’s ERP package comes in two versions: the mainframe version (SAP R/2) and theclient/server version (SAP R/3).4. Describe SAP. The power of SAP software lies in real-time integration, linking a company’s businessVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 59
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHprocesses and applications, and supporting immediate responses to change throughout theorganization on a departmental, divisional or global scale.5. Describe R/3. R/3 employs a three-tier client/server architecture widely recognized by SAP customers,technology partners and industry analysts as a winning approach to solving some of today’s mostdemanding information management challenges. The three-tiered architecture separates a systeminto three functional layers, each structured to support the demands of its function. 1. The Database layer resides on central servers or mainframe host computers. 2. The Application layer holds the processing logic of the system, preparing and formatting data for individual offices or departments. 3. The Presentation layer, typically on personal computers, handles all the tasks related to the presentation of data, including user interfaces that enable easy access to complex applications and data.6. What is Intranet? There is no technical difference between the Internet and the Intranet, except that noteverybody is allowed to current to an intranet. Intranet is an application of the internettechnology to a closed network. It provides a relatively cost efficient way to connect and managecorporate networks and distributed information. Intranet uses Internet derived communicationprotocols (TCP/IP), networking (IP network) and user interface (Web browsers, e-mails etc.). Thesurprising speed with which intranets have grown among corporate users, demonstrates thestrength of the Internet networking. Several surveys contend that corporate intranet expenditurefar out-paces the level of spending on consumer – oriented Web businesses (Web stores). Thecompatibility of corporate intranets with the Internet will be a significant factor in the digitaleconomy. In a sense, producer and seller information is readily accessible by outsiders, making iteasy to manage and disseminate information to consumers.7. Define R/3 module. R/3’s applications are modules. They can either be used alone or in combination withother solutions. From a process-oriented perspective, greater integration of applications increasesthe benefits derived.8. What are the modules in R/3?  Financial Accounting  Treasury  Controlling  Enterprise Controlling  Investment Management  Production Planning  Material ManagementVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 60
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH  Plant Maintenance and Service Management  Quality Management  Project System  Sales and Distribution  Human Resources Management9. Write briefly about BAAN. Baan’s product line features multi-tiered architecture for maximum scalabilityenvironment, enabling support of new hardware, operating systems, databases, networks anduser interfaces without any modification to the application code. Baan Company supportspopular Unix platforms as well as Microsoft NT, and was the first solution provider in its class toearn the ‘Designed for Microsoft® BackOffice’ logo certification. Products also support majorrelational database systems (Oracle, Informix, DB2, Sybase and Microsoft SQL Server), and areYear 2000 compliant.10. What are the BAAN series – based products? The Baan Series-based product family includes Baan Enterprise Resource Planning(BaanERP); BaanFrontOffice; BaanCorporateOffice Solutions; and BaanSupplyChain Solutions.11. Describe serving vertical industries.Aerospace and Defense (A&D): Baan offers specific vertical industry solutions for aerospace anddefense companies engaging in multi-level projects and contracts. Baan’s A&D offering includesBaanProject to enable the effective management of key functional business process areas. Thisunique, industry specific approach solves the problems faced by organizations engaged in large,extensive projects. Today, Baan is recognized as the leader in the Aerospace and Defense industrysegment for ERP.Automotive: Baan also offers specific vertical industry solutions for automotive companies. Manyof the world’s leading automotive companies use Baan’s business applications to supportworldwide manufacturing, distribution and financial operations. Baan’s product suite offersautomotive companies next-generation information technology across manufacturing, supplychain and front office operations. With Baan, businesses choose best-of-breed components, addfunctionality without complex and costly upgrades and integrate Baan Company enterpriseapplications with existing and third-party applications. The BaanSeries-based family of productsdelivers real-time information across the entire value chain, from engineering design tomanufacturing, distribution and financial reporting.12. What are the components in BAAN ERP? BaanERP includes the following components: manufacturing, finance, project anddistribution.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 61
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH13. What are the features in Runtime tools?  Allows Baan application developers to focus on application – specific issues only  Removes the overhead of developing and generating a native application code for each combination of platform, operating system, database and so on.  Greatly reduces the complexity of providing and maintaining application product updates  Reduces the overhead of ensuring cross – platform compatibility by bundling and maintaining computer – environment – specific code separately from the BaanERP applications.14. Define software configuration management. Software configuration management offers the ability to create, modify and test BaanERPsoftware components in a run-time environment that does not affect the live environment. Itincludes functionally for detailed tracking and version control of modifications.15. Define Authorization Management system. Authorization management system allows for the detailed management of user privileges,either per individual or per role.16. Define Database Management system. Database management system Enables a single environment to manage database relatedissues, regardless of the database(s) used.17. Define Exchange control. Exchange control A utility to exchange static or dynamic data between BaanERPinstallations or between BaanERP and third party products.18. Define Dynamic form editor. Dynamic Form Editor A Windows NT client used to create or modify BaanERP forms. TheDynamic Form Editor allows the dragging, and dropping, of form elements and automates theprocess of consistent positioning of form elements.19. Define 4GL Program Editor. 4GL Program Editor Developers can modify BaanERP or create add-ons using BaanERP’s4GL development language, which is similar to C++ in syntax and structure. The 4GLenvironment automates many of the user interface and event handling issues, which allows thedeveloper to focus on the required functionality.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 62
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH20. What is “Three I” Philosophy? 1. Integrity: In its interactions with its customers, colleagues, partners and shareholders 2. Innovation: In what it builds and how it delivers. 3. Initiative: In the speed and focus it brings to all aspects of its market opportunity.21. Define Baan Education.Baan Education: As a partner in lifetime learning, Baan Education helps maximize the return oninvestment in people and technology. Baan Education addresses the education needs of every onein an organization, from newly hired employees to seasoned professionals who are maturing withtechnology. Bann Education offers new Internet – based learning called virtual Campus. WithBaan Education, a partner can realize the company’s goals of profitability, productivity andcompetitive advantage. Baan Education’s process – based curriculum, addresses not only specificBaan Company’s enterprise applications, but also provides an in – depth under standing of thebusiness processes that its applications automate. Thus, Baan Company extends education beyondsimple functionality, taking into account the context within which its applications are used in theirmanufacturing, sales, financial, and technical environments. This lifetime learning approachmeans that a company’s workforce is always abreast with the latest technology and businessdevelopments.22. Define Baan Consulting.Baan Consulting: Baan Consulting is dedicated to implementing Baan Company enterpriseapplications around the globe. In addition to the thousands of customers served by its consultingpartners, Baan Consulting has a successful track record with well over 1,000 customersworldwide, in almost every business environment. Baan consulting provides a wide range ofservices, such as Project Management, Business consulting, Applications Consulting and TechnicalConsulting. Throughout the implementation and after a company goes live, Baan Consulting is byits side with its Internet – based Baan Cyber Consult offering.23. Describe oracle. Oracle software runs on network computers, personal digital assistants, set top devices,PCs, workstations, minicomputers, mainframes and massively parallel computers. Oracle8i, thelatest version of Oracle industry’s leading database,, is the database for Internet Computing.Oracle’s family of database, networking and gateway products enable corporations to access anydata, on any server, over any network, from any client device.24. Describe oracle’s Warehouse Technology Initiative. Oracle’s Warehouse Technology Initiative (WTI), one of the fastest growing and mostcomprehensive alliance programs in the data warehousing industry, provides customers with acomplete data warehousing solution, based on the industry-leading Oracle database and moreVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 63
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHthan 60 complimentary third-party software products and services. WTI is designed to increasethe quantity and quality of Oracle-based data warehousing solutions, provide customers withgreater choice, specialized tools, Oracle-optimized products and streamlined support as they builddata warehouses.25. Define OLAP.OLAP On-Line Analytical Processing: A category of applications and technologies for collecting,managing, processing and presenting multidimensional data for analysis and managementpurposes.26. Define OLAP Client.OLAP Client End user applications that can request slices from OLAP servers and provide two –dimensional or multi – dimensional displays, user modifications, selections, ranking, calculations,etc. for visualization and navigation purposes. OLAP clients may be as simple as a spreadsheetprogram retrieving a slice for further work by a spread sheet – literate user or as high – functionedas a financial modeling or sales analysis application.27. What is OLAP product?OLAP Product A product capable of providing fast analysis of shared multidimensionalinformation. Ad-hoc analysis must be possible either within the product itself or in a closelylinked product.28. Define OLAP/ROLAP.OLAP/ ROLAP on-line Analytical Processing / Relational On-Line Analytical Processing(OLAP/ROLAP) are applications that a seek to verify complex hypotheses. An example of anOLAP query might be ‘Compare the costs of shipping to customers in the east to those in thewest’.29. Define supply chain management.Supply Chain Management – People Soft has the industry’s only complete enterprise resourceplanning solution that is built around supply chain optimization. A Demand Planning moduleenables sophisticated forecasting, using real –time and historical information. peopleSoft’scomplete suite of Supply Chain Management products provides comprehensive support for anyorganization that produces or markets a physical product.30. Define service industry solution.Service Industry Solutions – People Soft also provides a complete commercial support solutionfor service industries. The Service Revenue Management suit features modules supporting thetracking of time and labour, payroll processing. A suit of Procurement modules is also availableVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 64
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHsupporting purchasing, inventory management, payable and expense processing, and assetmanagement.31. Define people tools. People Tools is an integrated set of client / server business application development andcustomization tools from PeopleSoft. These tools enable customers to implement, tailor andmaintain People Soft applications as well as to extract, analyze and manipulate data. People Toolsincludes several tools for reporting, customization and work flow.32. What are different product modules available from JD Edwards? Foundation Suite, Financial Suite, Logistics/Distribution Suite, Service suit, ManufacturingSuite, Architecture, Engineering, Construction, Mining and Real Estate Suite, Energy andChemical Suite, Payroll suite, Human Resource Suite, Customer Service Management Suite,Government, Education, and Not-for-Profit Solutions, Utility and Energy Solutions. PART - B1. Describe SAPAG.Company Profile Founded in 1972, SAP (Systems, Applications and Products in Data Processing), based inWalldorf, Germany, is the leading global provider of client/server business application solutions.Today, SAP has installations in more than 107 countries. SAP’s ERP package comes in two versions: the mainframe version (SAP R/2) and theclient/server version (SAP R/3). Most prominent among SAP’s product range is the enterpriseapplication suite R/3 for open client/server systems. With SAP Systems, customers can opt toinstall the core system and one or more of the functional components, or purchase the software asVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 65
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHa complete package. SAP customers have chosen to install SAP’s client/server suite in more than 19,750 sitesworldwide. They System are accepted as the standard in key industries such as oil, chemicals,consumer products and high technology and electronics. The SAP group employs a work force ofover 19,300 and has offices in more than 50 countries worldwide. SAP is the Most Successfulvendor of standard business-application software and is the fourth-largest independent softwaresupplier in the world. In its most recent fiscal year, ending December 31, 1998, SAP AG reportedrevenues of DM 847 billion, a 41% increase over 1997s revenues. In the same period, sales of R/3rose by 31%. Since 1998, SAP AG has been a publicly held corporation, with its shares being traded onthe German and Swiss stock exchanges. In 1995, the company was added to the DAX, the index ofGerman blue-chip companies. SAP listed its ADRs (American Depository Rights) on the NYSE(New York Stock Exchange) in August 1998.Products and Technology SAP products feature a sophistication and robustness unmatched by other businesssoftware solutions. SAP has developed an extensive library of more than 800 predefined businessprocesses, spanning each functional software requirement. These processes may be selected fromthe SAP library and included with in installed SAP applications, after tailoring the applicationsolution to suit the user’s exact requirements. New business processes and technologies becomeavailable regularly, enabling SAP customers to add state-of-the-art solutions to meet ever-changing business demands. The power of SAP software lies in real-time integration, linking a company’s businessprocesses and applications, and supporting immediate responses to change throughout theorganization on a departmental, divisional or global scale. The international strength of theproducts extends to every aspect of the applications, such as the support of multiple currenciessimultaneously and the automatic handling of country-specific import/export, tax, legal andlanguage requirements. The complete suite of R/3 applications is available in 24 languages,including Japanese (Kanji) and other double-byte character languages.R/3-An Overview R/3 employs a three-tier client/server architecture widely recognized by SAP customers,technology partners and industry analysts as a winning approach to solving some of today’s mostdemanding information management challenges. The three-tiered architecture separates a systeminto three functional layers, each structured to support the demands of its function. 1. The Database layer resides on central servers or mainframe host computers. 2. The Application layer holds the processing logic of the system, preparing and formatting data for individual offices or departments.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 66
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 3. The Presentation layer, typically on personal computers, handles all the tasks related to the presentation of data, including user interfaces that enable easy access to complex applications and data. SAP has also incorporated and integrated the intranet and Internet technologies intobusiness solutions for its customers. Both internally and together with its partners, the companyis defining and creating a number of Internet standards-based interfaces, applications andbusiness processes that will extend the usefulness of SAP software in entirely new ways and tonew classes of customers. Through its Industry Business Units (IBUs) and its extensive development network, SAPworks closely with its customers to develop new information technology, approaches, to meet theunique demands of a wide spectrum of industries. With this approach, customers becomemembers of the SAP development team, sharing their best practices and solutions.2. Explain R/3 modules.R/3 Modules R/3’s applications are modules. They can either be used alone or in combination withother solutions From a process-oriented perspective, greater integration of applications increasesthe benefits derived. The following are the R/3 modules:  Financial Accounting Collects all the data in your company relevant to accounting, provides complete documentation and comprehensive information, and is at the same time an up-to-the-minute basis for enterprise-wide control and planning.  Treasury A complete solution for efficient financial management that ensures the liquidity of your company worldwide, structures financial assets profitably and minimizes risks.  Controlling A complete array of compatible planning and control instruments for company-wide controlling systems, with a uniform reporting system for coordinating the contents and procedures of your company’s internal processes.  Enterprise Controlling Continuously monitors your company’s success factors and performance indicators on the basis of specially prepared management information.  Investment Management Offers integrated management and processing of investment measures and projects form planning to settlement, including pre-investment analysis and depreciation simulation.  Production Planning Provides comprehensive processes for all types of manufacturing: from repetitive, make-to-order and assemble-to-order production, through process, lot and make-to-stock manufacturing, to integrated supply chain management with functions for extended MRP-II and electronic Kanban, plus optional interfaces for PDC, process control systems, CAD and PDM.  Material Management Optimizes all purchasing with workflow-driven processing functions, enables automated supplier evaluation, lower procurement and warehousing costs with accurate inventory and warehouse management and integrates invoice verification.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 67
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH  Plant Maintenance and Service Management provides planning, control and processing of scheduled maintenance, inspection, damage-related maintenance and service management to ensure availability of operational systems, including plants and equipment delivered to customers.  Quality Management Monitors, captures and manages all processes relevant to your quality assurance along the entire supply chain, coordinates inspection processing, initiate’s corrective measures and integrates laboratory information systems.  Project System Coordinates and controls all phases of a project, in direct cooperation with Purchasing and Controlling, from quotation to design and approval, to resource management and cost settlement.  Sales and Distribution Actively supports sales and distribution activities with outstanding functions for pricing, prompt order processing and on-time delivery, interactive multilevel variant configuration and a direct interface to Profitability Analysis and Production.  Human Resources Management Provides solutions for planning and managing your company’s human resources, using integrated applications that cover all personnel management tasks and help simplify and speed the processes.3. Explain BAAN.Company Profile Baan Company is a leading global provider of enterprise business software. BaanCompany offers a comprehensive portfolio of best-in-class, component-based applications forfront office, corporate office and back office automation. These applications are in use at over7,000 customer sites worldwide. Baan Company products reduce complexity and cost, improvecore business processes, are faster to implement and use, are more flexible in adapting to businesschanges and optimize the management of information throughout the entire value chain. Baan’s product line features multi-tiered architecture for maximum scalabilityenvironment, enabling support of new hardware, operating systems, databases, networks anduser interfaces without any modification to the application code. Baan Company supportspopular Unix platforms as well as Microsoft NT, and was the first solution provider in its class toearn the ‘Designed for Microsoft® BackOffice’ logo certification. Products also support majorrelational database systems (Oracle, Informix, DB2, Sybase and Microsoft SQL Server), and areYear 2000 compliant. The Baan Series-based product family includes Baan Enterprise Resource Planning(BaanERP); BaanFrontOffice; BaanCorporateOffice Solutions; and BaanSupplyChain Solutions.Serving Vertical IndustriesAerospace and Defense (A&D): Baan offers specific vertical industry solutions for aerospace anddefense companies engaging in multi-level projects and contracts. Baan’s A&D offering includesVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 68
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHBaanProject to enable the effective management of key functional business process areas. Thisunique, industry specific approach solves the problems faced by organizations engaged in large,extensive projects. Today, Baan is recognized as the leader in the Aerospace and Defense industrysegment for ERP.Automotive: Baan also offers specific vertical industry solutions for automotive companies. Manyof the world’s leading automotive companies use Baan’s business applications to supportworldwide manufacturing, distribution and financial operations. Baan’s product suite offersautomotive companies next-generation information technology across manufacturing, supplychain and front office operations. With Baan, businesses choose best-of-breed components, addfunctionality without complex and costly upgrades and integrate Baan Company enterpriseapplications with existing and third-party applications. The BaanSeries-based family of productsdelivers real-time information across the entire value chain, from engineering design tomanufacturing, distribution and financial reporting. • Manufacturing Module (includes Bills of Material, Cost price Calculation, Engineering Change Control, Engineering Data Management, Hours Accounting, product Classification, Product Configuration, Production Control, Production Planning, Project Budgeting, Project Control, Repetitive Manufacturing, Routings, Shop Floor Control, Tool Requirements, Planning and Control, Capacity Requirements planning, Master production Scheduling and Material Requirements planning) • Finance Module (includes Accounts payable, Accounts Receivable, Financial Budgets System, Cash Management, Financial Reporting System, Fixed Assets, General Ledger, Cost Accounting and Sales Invoicing) • Project Module (includes Project Budget, Project Definition, Project Estimating, Project Invoicing, Project Invoicing, Project Monitoring, Project Planning, Project Progress and Project Requirements Planning) • Distribution Module (includes Sales Management, Purchase Management and Warehouse Management)BaanERP Tools BaanERP Tools consists of a number of software components, which together form thetechnical foundation for all BaanERP components. The BaanERP Tools can be described as acomputing platform that provides an independent, flexible, open and distributed computing anddevelopment environment. The open architecture of the BaanERP Tools makes it possible to:• Quickly react to new trends in the marketplace that require software or software configurationchanges.• Develop the Baan applications in such a way that they are kept independent of third partyproducts such as hardware, operating systems and databases.• Easily integrate with third-party products.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 69
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH• Create customer-specific solutions. ♣ Allows Baan application developers to focus on application-specific issues only. ♣ Removes the overhead of developing and generating a native application code for each combination of platform, operating system, database and so on. ♣ Greatly reduces the complexity of providing and maintaining application product updates.♣ Reduces the overhead of ensuring cross-platform compatibility by bundling and maintainingcomputer-environment-specific code separately from the BaanERP applications. Software configuration management Offers the ability to create, modify and test BaanERPsoftware components in a run-time environment that does not affect the live environment. Itincludes functionality for detailed tracking and version control of modifications. Authorisation management system Allows for the detailed management of user privileges, either per individual or per role. Database management system Enables a single environment to manage database related issues, regardless of the database(s) used. Exchange control A utility to exchange static or dynamic data between BaanERP installations or between BaanERP and third party products. Dynamic Form Editor A Windows NT client used to create or modify BaanERP forms. The Dynamic Form Editor allows the dragging, and dropping, of form elements and automates the process of consistent positioning of form elements. 4GL Program Editor Developers can modify BaanERP or create add-ons using BaanERP’s 4GL development language, which is similar to C++ in syntax and structure. The 4GL environment automates many of the user interface and event handling issues, which allows the developer to focus on the required functionality.4. Explain Oracle Corporation.Company Profile Oracle Corp (founded in 1977) is the world’s second largest software company and theleading supplier of software form enterprise information management. With annual revenuesexceeding $8.0 billion, the company offers its database,, tools and applications products, alongwith related consulting, education and support services. Oracle employs more than 41,000 peoplein more than 145 countries around the world. Headquartered in Redwood Shores, California,Oracle is the first software company to implement the Internet computing model for developingand deploying enterprise software across its entire product line databases and relational servers,application development and decision support tools and enterprise business applications.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 70
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHTechnology Oracle software runs on network computers, personal digital assistants, set top devices,PCs, workstations, minicomputers, mainframes and massively parallel computers. Oracle8i, thelatest version of Oracle industry’s leading database,, is the database for Internet Computing.Oracle’s family of database, networking and gateway products enable corporations to access anydata, on any server, over any network, from any client device. Oracle’s Warehouse Technology Initiative (WTI), one of the fastest growing and mostcomprehensive alliance programs in the data warehousing industry, provides customers with acomplete data warehousing solution, based on the industry-leading Oracle database and morethan 60 complimentary third-party software products and services. WTI is designed to increasethe quantity and quality of Oracle-based data warehousing solutions, provide customers withgreater choice, specialized tools, Oracle-optimized products and streamlined support as they builddata warehouses. Oracle’s integrated Business Intelligence solutions deliver powerful capabilities to usersanywhere in the enterprise, at any time. End users benefit from intuitive tools that provide easyaccess to business data and fast answers to any question. Oracle’s Business Intelligence family ofproducts includes integrated releases of Oracle Reports, Oracle’s enterprise reporting tool; OracleDiscoverer, Oracle’s award-winning an-hoc query and analysis tool; and Oracle Express, Oracle’sindustry-leading enterprise online analytical processing (OLAP) engine. Oralce also offers pre-build OLAP applications-Oracle Financial Analyser and Oracle sales Analyser-to further reduceimplementation time and costs. Oracle Applications is a leading provider of packaged and integrated front office and ERPsolutions for the enterprise and a division of Oracle Corporation, the world’s second-largestsoftware company and the largest supplier of software for information management. OracleApplication’s strategy is to offer all the enterprise solution components-proven applications,advanced technologies, business expertise and partnerships required-to enable customers toexecute strategies quickly, manage the risk of change and lead their respective industries. Oracle Applications is the only suite of enterprise business applications from a majorEnterprise Resource Planning (ERP) vendor that follows the Internet Computing model. Each ofthe over 45 modules for financials, human resources, manufacturing, supply chain and front officeautomation is webenabled, allowing it to be deployed on corporate intranets with no software,other than a browser, required on users’ desktops. This architecture allows companies to shift thecomplexity of application management, maintenance and upgrading from users’ desktops ontocentralized, professionally managed servers, thereby dramatically reducing the cost of deployingand administering software. By minimizing network traffic, this approach also makes iteconomical to deploy the applications over Wide Area Networks (WANs) to hundreds orthousands of users, making it possible to distribute critical business information much morebroadly than is feasible in the client/server model.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 71
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH Oracle Applications further exploit the low-cost and universal access inherent in theInternet Computing model, by providing a set of applications specifically designed for secure,self-service business transactions across the Internet and corporate intranets. These applicationsare integrated with Oracle Workflow to completely automate business processes. Oracle Applications comprise of 45-plus software modules, which are divided into thefollowing categories: • Oracle Financials • Oracle Human Resources • Oracle Projects • Oracle Manufacturing • Oracle Supply Chain • Oracle Front Office More than 6,000 customers in 76 countries use Oracle Applications. Available in 29languages, Oracle Applications lets companies operate in multiple currencies and languages,support local business practices and legal requirements, and handle business-critical operationsacross borders. A brief overview of the Oracle Application categories is given below: • Financials Oracle Financial Applications can transform a finance organization into a strategic force. In today’s fast-moving corporate arena, organizations require access to critical financial management functions. With Oracle Financial Applications, companies will be able to work globally, lower their administrative costs, close their books faster and improve cash management-while providing the strategic information required for making timely and accurate decisions. • Projects Oracle Projects Applications improve operational efficiency by providing an integrated project management environment that supports the full lifecycle of every project in your enterprise, increasing to-line revenue growth and bottom-line profitability. As the bridge between operations systems and corporate finance, Oracle Projects Applications provide a central repository of validated cost, revenue, billing and performance data associated with your business activities or projects. • Human Resources Well-managed human resources directly improve the bottom line and contribute to competitive advantage. The ability to hire, motivate and retain the most capable workforce; engage employees and line managers directly in managing their skills and careers; and provide comprehensive and up-to-date workforce information for management-on a global basis-are a few of the characteristics important for success. The Oracle Human Resource Management System (HRMS) provides comprehensive facilities for organizations to achieve such goals.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 72
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH • Manufacturing Oracle Manufacturing Applications are the industry leading mixed-mode manufacturing solution that enables companies to achieve market leadership by becoming more customer-responsive and efficient. This product family supports companies from small, single-facility environments to multi-plant, global manufacturers with complex requirements. Oracle Manufacturing Applications help companies increase revenue, profitability and customer loyalty by universally capturing demand, planning the extended enterprise in one rapid step and by ensuring that the most efficient manufacturing process is used to produce each product. • Supply Chain oracle Supply Chain Management Applications simplify supply-chain processes by providing a single, integrated environment for managing the extended enterprise. From your suppliers’ suppliers to your customers’ customers, Oracle enables effective trading partner collaboration and supply-chain optimization capabilities that are vital to gaining and sustaining competitive advantage. Oracle Supply Chain Management Applications help in increasing market share while improving, customer service and minimizing costs across the networked supply chain. • Front Office Oracle Front Office Applications provide a true customer centric approach, allowing you to better understand your customer relationships, their value and profitability. Oracle Front Office Applications increase top-line revenues, decrease sales and service costs, and maintain customer retention and satisfaction. The sales, marketing and service solutions provide deep integration with the entire enterprise suite of applications, and enable you to attract and retain profitable customers through a unified set of deployment channels, including Web mobile and call centre.Vertical Solution Oracle also provides vertical solutions with a full line of modular product componentsaimed at the unique requirements of many major industries, including automotive, aviation,aerospace and defense, communications, consumer packaged goods, energy downstream, energyupstream, financial service, high-tech, public sector and utilities.5. Explain People soft. People Soft solutions run on a variety of leading hardware and database platforms,including Compaq, Hewlett – Packard, IBM, Sun Microsystems, Informix, Microsoft SQL Server,Sybase, DB2 and others, People Soft delivers Web-enabled applications, workflow, onlineanalytical processing (OLAP), etc. People Soft has over 2,900 customers in nearly every industry and geographic region in theworked, including a large cross – section of the Fortune 1000. The company’s products are sold through direct sales offices and distributors in the UnitedStates, Canada, Europe, Asia /Pacific, Latin America and Africa. With award – winning customerservice, people Soft dedicates approximately 47 percent of its staff to customer service in the areasof account management, product support, professional services, education services andVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 73
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHcommunication services.The people Soft’s business management solutions are in the areas given below: 1. Human Resources Management 2. Accounting and Control 3. Treasury Management 4. Performance Measurement 5. Project Management 6. Sales and Logistics 7. Materials Management 8. Supply Chain Planning 9. Service Revenue Management 10. ProcurementCommercial SolutionsSupply Chain Management – People Soft has the industry’s only complete enterprise resourceplanning solution that is built around supply chain optimization. A Demand Planning moduleenables sophisticated forecasting, using both real –time and historical information. peopleSoft’scomplete suite of Supply Chain Management products provides comprehensive support for anyorganization that produces or markets a physical product.Service Industry Solutions – People Soft also provides a complete commercial support solutionfor service industries. The Service Revenue Management suit features modules supporting thetracking of time and labour, payroll processing. A suit of Procurement modules is also availablesupporting purchasing, inventory management, payable and expense processing, and assetmanagement.People Tools People Tools is an integrated set of client / server business application development andcustomization tools from PeopleSoft. These tools enable customers to implement, tailor andmaintain People Soft applications as well as to extract, analyze and manipulate data. People Toolsincludes several tools for reporting, customization and work flow.6. Explain People Soft Technology.TechnologyPeople Soft Continually adds and refines technology to optimize their customers’ informationsystems. They help customers take advantage of new and emerging technologies, giving themmore choices and freedom to develop their own innovative business processes. Some of them aregiven – below:VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 74
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH ♦ Self – Service Applications To improve productivity throughout the organization, People Soft focuses on providing the occasional user with easy access to information and functionality specific to their role. They have developed a set of self-service applications to help companies quickly and cost – effectively distribute functionality throughout the enterprise over the Internet, intranets and extranets. Built with an intuitive interface based on a standard Web browser – such as Netscape Navigator or Microsoft Explorer – these Java – based, cross – platform applications enable employees, customers, suppliers and other occasional users to perform self – service administrative tasks easily. Self-service applications are linked to People Soft core product lines, including PeopleSoft Accounting Control, Human Resources Management and Materials Management. ♦ Web Client Self- service applications use the People Soft Web Client. The web Client is downloadable on demand and runs on a web browser across multiple platforms. Its affordability, open architecture and simplicity provides and ideal framework for delivering enterprise solutions , to a large number of people. Applications, don’t need to be installed at every desktop; they are accessed easily through a browser. In addition to supporting self – service applications, the People Soft Web Client has a Worklist and Query interface to help incorporate occasional users in the flow of a company’s business processes and improve access to information. Furthermore, all data transmitted between the Web Client and the application server is encrypted for added security. Because the Web Client takes advantage of People Tools, self-service applications can be deployed across the Internet or existing corporate intranets – with common business rules workflow logic and security features. ♦ Multitier Transaction Processing The ability to support large number of concurrent users, while maintaining reliable and superior performance, is critical to enterprise – Wide data processing. Recognising that PeopleSoft works in a variety of settings-over local area networks (LANs) and wide area networks (WANs), throughout organizations of varying sizes – there is an option of two – tier or three –tier processing. In the latter, the application logic runs on an applications server instead of the client. The application server is designed to relive the client from processing intense SQL transactions, thereby reducing LAN traffic and improving performance across WANs. A three – tier architecture also provides increased scalability to accommodate high volumes of concurrent users while maintaining a consistent and reliable performance level. PeopleSoft continues to support its traditional two – tier architecture as well. ♦ Online Analytical Processing Companies must be able to quickly extract and analyze the information they require for effective decision making. OLAP, or online analytical processing, is a powerful method for interactively analyzing data online. PeopleSoft integrates popular OLAP stools – including Cognos Power play and Arbor Essbase –that enable users to easily ‘slice and dice’ multidimensional data stored in various locations. With the cube Manager, users can define the data they want to extract into an OLAP cube, enabling them to quickly view information from all different angles to test conclusions, conduct what-if scenarios and compare alternative strategies. With multidimensionalVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 75
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH information presented in quick-read formats, managers can make better decisions, react faster to competitive threats and identify inefficiencies. ♦ Work flow An essential part of our solution, PeopleSoft workflow capabilities help communications companies achieve enterprise – wide integration of information, applications and people, Workflow enables a company to automate many time –consuming clerical tasks, while putting useful data into the hands of users. With workflow, the company’s PeopleSoft applications do more of the work. For example, if managerial approval is needed for a work order, the system automatically forwards the request. Workflow can also help the company track projects, by initiating a workflow message to the appropriate person when a project exceeds a predetermined cost. The company can even bring non-PeopleSoft users into the workflow process, using e-mail systems and the Internet for collecting and distributing data.7. Explain JD Edwards World Solutions Company.Company Profile 1977, Derver, Colorado. Three men left the accounting world to form a software companythat would specialize in midrange computing solutions. Each of the three founders – JackThompson, Dan Gregory and EdMcVaney-lent a small portion of his name for the company name.On March 17, JD Edwards was formed. In the early years, JD Edwards designed software for several small and medium-sizedcomputers, eventually focusing on the IBM System/38 in the early 1980s. It was in this effort thatJD Edwards pioneered the CASE software development and design tool, which lends consistencyacross the broad range of JD Edwards’ integrated applications.Technology JD Edwards offers its solutions primarily for the AS/400 platform. JD Edwards’s twoapplication suites, One World and WorldSoftware/WorldVision, provide comprehensive supplychain management functionality across the technology continuum, from host –centric, to thin –client, to network-centric computing. All three can run concurrently on the same AS/400, sharedata and interact with each other as a unified solution. In the age of technology change, the popularity of many enterprise software solutions isfleeting. The resulting obsolescence is frustrating and costly. It is better to have a system that hasthe necessary functionality with built – in longevity. More than 4,000 customers have found thisstaying power in JD Edwards WorldSoftware. On its strength and the reliability of its host –centric IBM AS/400 foundation, WorldSoftware’s global popularity has endured in the ERPmarket place for over a decade.Inherently flexible and easy to use, WorldSoftware readily adapt to your situation, letting you:VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 76
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH  Selectively mix, match and integrate software applications from among its diverse industry product suits.  Easily tailor it to ongoing business, local and organization – specific requirements.  Add WorldVision, its advanced graphical user interface, to gain client/server benefits.  Optionally run it alongside OneWorld, JD Edwawrds’ network-centric solution, to gradually incorporate other computing platforms into your network. JD Edwards WorldVision is a thin – client bridge that provides the graphical user interface(GUI) with a look and feel common to the PC, while protecting your investment in WorldSoftwareand the AS/400. WorldVision also allows you to: • Maximise productivity by shrinking the amount of training users need. • Make a safe move to client / server by leveraging your existing host centric WorldSoftware applications. And like WorldSoftware, WorldVision is continually enhanced for the future. For example,you can have WorldVision as a windows 95/NT style GUI for a PC and as Java – based interfacefor use across the Internet, intranets, or extranets.Modules The different product modules available form JD Edwards are:  Foundation Suite (Black Office, CASE Foundation, Environment/ Toolkit, financial Analysis Spreadsheet Tool and Report Writer, WorldVision GUI, Electronic Burst & Bind).  Financial Suite (General Accounting, Accounts Payable, Accounts Receivable, Fixed Assets, Financial Modeling and Budgeting, Multi-currency Processing, Cash Basis Accounting, Time Accounting)  Logistics/Distribution Suite (Forecasting, Requirements Planning, Enterprise Facilities Planning), Sales Order Management, Advanced Pricing Procurement, Work Order Management, Inventory Management, Bulk Stock Management, Quality Management, Advanced ‘Warehouse Management, Equipment Management, Transportation Management, Job Cost. Service Billing)  Service suit (Contract Billing, Subcontract Management, Change Management, Property Management)  Manufacturing Suite (Configuration Management, Cost Management, Product Data Management, Capacity Planning, Shop Floor Management, Advanced Maintenance Management)  Architecture, Engineering, Construction, Mining and Real Estate Suite (Procurement, Inventory Management, Equipment Management, Job Cost, Work Order Management, Subcontract Management, change Management, ContractVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 77
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH Management, Contract Billing, Service Billing, Homebuilder Management, Property Management)  Energy and Chemical Suite (Agreement Management, Advanced Stock Valuation, sales Order Management, Bulk Stock Management, Load and Delivery Management)  Payroll suite  Human Resource Suite  Customer Service Management Suite  Government, Education, and Not-for-Profit Solutions (Financial Administration and Reporting, Budget Administration, Fund and Encumbrance Accounting, Grant and Endowment Management, Purchasing and Material Management, Warehousing and Central Stores Management, Human Resources Management, Service and Work Order Management, Capital Project Construction Management, Contract Management, Plant, Equipment, and Fleet Maintenance.  Utility and Energy Solutions (Customer information System, Human Resources Management, Work Management, Regulatory Reporting, Supply Chain Management, Project Management, Enterprise Maintenance Management)8. Explain System Software Associates.Company Profile: SSA was founded in December 1981 and has its headquarters in Chicago, USA. SSA has itspresence in 91 countries and employees more than 2000 employees. The 1998 revenues of thecompany was $venues of the company was $ 420.8 Million. The Company’s product line, BPCSClient/Server V6, is currently live or being implemented in more than 1,000 major industrialsector firms in over 4,000 sites world wide. SSA’s vision is to be the global partner to the world’s industrial sector companies. SSA’smission statement, which has been the same since SSA was founded in December 1981, is toprovide competitive advantage for Clients through the implementation of their businessenterprise information system. This mission statement is underwritten by six key goals: 1. Best Client Satisfaction. This means that the company wants their clients to achieve the greatest possible business benefit from their-relationship with SSA. 2. Single Image Worldwide Means that the clients get the same high level of support and expertise all around the world. 3. Enterprise Solutions Leadership It means that the company is focused on building and delivering solutions, which bring together the entire enterprise.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 78
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 4. Proven Leading Technology This means that every piece of technology applied by SSA will already be proven for high transaction volume enterprise-wide applications. 5. Highly skilled and motivated professionals It means that SSA is committed to having the best professionals and resources in the application software business. 6. Strong Financial Results This means that SSA can continue to invest in the improvement of its software and professionals, and will be a stable partner in the long run.BPCS Client / Server: BPCS Client/Server is a comprehensive set of integrated client / server applications thataddresses the core system needs of industrial sector enterprises on a global scale. BPCS Client /Server coves Configurable Enterprise Financials applications, Supply Chain Managementapplications, Multi-Mode Manufacturing and CIM applications, as well as Electronic Commerceapplications such as EDI. BPCS Client/Server is based on SSA’s proven object technologyfoundation that ensures that it operates identically from an end-user’s perspective across anysupported server, be it HP 9000, AS/400, or Windows NT. BPCS Client/Server products offer numerous full function applications with capabilities tosupport solutions needed by the industrial sector. Major objectives of industrial managers havebeen to improve customer satisfaction, improve product quality, remain cost competitive, andreduce the time in launching a product in the market. SSA’s BPCS Client/Server productsprovide a wealth of features and functions enabling industrial managers to achieve theseobjectives. The Microsoft Desktop is the BPCS Client /Server Desktop: the BPCS Client/Server userinterface is graphically and fully compliant with Microsoft Windows 95. The look and feel is thesame as other Microsoft desktop applications, resulting in a system that is easy to learn and use.Examples of Microsoft desktop functions include full use of hypertext and other point-of-demandeducation, such as field sensitive help text, bookmarks, annotations and other Windows help textfunctions. BPCS Client/Server also includes hypertext linking related topics. The BPCS Client/Server graphical user interface icons, messages, scroll bars, tool bars, pull-down menus, radio buttons, check boxes and other Microsoft desktop features. In addition, theBPCS Client/Server applications are interoperable with other windows compliant applicationsthrough the windows cut-and-paste feature. BPCS Client/Server is used worldwide by more than 8500 companies, at 25,000 sites, andby 3,000,000 end users, representing various vertical markets-automotive, chemical, consumergoods, electronics, fabrication and assembly, food and beverage, forest products andpharmaceuticals. SSA and its strategic partners provide full implementation support for BPCSClient/Server in over 90 countries worldwide.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 79
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH The BPCS Client/Server solution delivers unparalleled agility and re-configurability tomeet changing market demands, through a quantum leap forward in ERP technology that deliverssignificant business benefits, including century dating. With BPCS Client/Server version 6.0, SSA has successfully addressed the most crucialissues facing the ERP market place, the implementation and integration of package applications.SSA has reduced time-to-benefit implementation cycles to 6-12 months, down from an industryaverage of 12-24 months. At the core of BPCS Client/Server is its object-based architecture, calledDOCA (Distributed Object Computing Architecture), which is specifically designed for enterprise-wide application in industrial sector companies. DOCA is optimized to support high transactionvolumes in a functionally rich, distributed data processing, client/server environment. DOCA’sobject-based architecture provides inherent flexibility, enabling the rapid reconfiguration of BPCSClient/Server applications. This allows organizations to quickly and easily alter the solutions inresponse to new business and market challenges.9. Explain QAD.Company Profile: QAD was founded in 1979 and now has a presence in 21 countries and employs more than1100 people. The company’s products include MFG/PRO, On/Q, Service / SupportManagement, Decision Support, and Qwizard. The company’s flagship product is its ERPsolution – MFG/PRO. It is available in 26 languages and has more than 4,000 installed sites inover 80 countries. The company got the ISO certification in 1995.Products: QAD offers a variety of supply chain and Enterprise Resource Planning (ERP) sort wareproducts to manufacturing industries within the automotive, consumer products, electronics, foodand beverage, industrial products and medical sectors. QAD soft ware optimizes your enterpriseby increasing the speed of internal processes and by synchronizing distributed operations. QAD’s flagship product, MRG/PRO software, provides multinational organizations withan integrated Global Supply Chain Management solution that includes manufacturing,distribution, financial, service/support management applications within an open systemenvironment. Internet-Enabled MFG-PRO allows you to share information and conductcommercial transactions over the Internet. QAD’s On/Q Extended Supply Chain Applications manage the complex demand andfulfillment transactions of large multinational corporations with dynamic, collaborativerelationship spanning multiple enterprises. Service/Support Management is designed forcompanies who not only manufacture and sell their products but also offer after-sales service andsupport. QAD’s Decision Support is a tool designed to provide manufacturers with access toinformation necessary for informed decision-making. Qwizard, QAD’s interactive mentor forusers of MFG/PRO software, is a value-added tool that provides easy-to-use business modeling,VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 80
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHimplementation and interactive learning tools. QAD had currently developed a number of business arrangements with Product AlliancePartners to enhance the effective functionality of QAD’s products.10. Explain MFG/PRO. MFG/PRO software is one of the successful client/server ERP applications as itdramatically increases the internal efficiencies of distributed operations within months ofpurchase. The software is comprehensive, open, flexible, scalable, interactive, and designed toaddress the operations requirements of today’s manufacturers. It is available in 26 languages, isyear-2000 compliant, and supports multiple currencies including the Euro. MFG/PRO includes an extensive set of solution components for manufacturing,distribution, financial, supply chain, and service/support management. Configurable andinteroperable, it is open to best-of-breed components, uses either Oracle or Progress databases,and runs in UNIX, Windows, and Windows NT environments. MFG/PRO can be implemented at multiple sites and it easily scales to meet the changingbusiness requirements. MFT/PRO’s user interface is an ultra thin Java browser. MFG/PRO isalso available with a Windows graphical user interface (GUI) or a character user interface. Manufacturers need a solid strategy for achieving and maintaining competitive advantage.MFG/PRO soft ware quickly synchronizes distributed operations within your enterprise, enablingyou to balance supply and demand across multiple sites. MFG/PRO’s supply chain functionsinclude centralized order processing, centralized purchasing, enterprise operations planning,distribution requirements planning and enterprise materials transfer. By using MFG/PRO’senterprise-level supply chain functions, you can manage supplies within your enterprise far moreeffectively, no matter how widely distributed your sites are. This means you will be able torespond to customer needs much more rapidly. MFG/PRO is a fully integrated soft ware package available on a module by module basis.MFG/PRO addresses the entire manufacturing spectrum from repetitive to configure-to-order. Itis appropriate for process, batch process, make –to – stock, configure-to-order and repetitivemanufacturing environments. With world class supply chain management tools, it is particularlyuseful for multinational companies. The various modules of MFG/PRO are:  Distribution : The Distribution Modules of MFG / PRO are used to monitor inventory balances and manage purchasing and sales order entry activities.  Manufacturing : The Manufacturing Modules are used to regulate all manufacturing activity within the various types of production environments.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 81
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH  Financials : The Financial modules interface with the Distribution, Planning and Manufacturing modules to report the financial implications of the company’s activities.  Service/Support : Service / Support Modules are designed for companies which not only manufacture and sell their products, but also offer after-sales service and support.  Supply Chain : Supply Chain Management is the control of goods and information from supplier to customer.  Master Files functions provide access to series of foundation modules that are used by the rest of the MFG/PRO applications. These master files include: Items / Sites, Addresses / Taxes, Inventory Control Settings, Physical Inventory, Multiple Database configurations and Manager Functions. UNIT – V PART - A1. Define E-Commerce. Most companies will conduct at least part of their business operations throughe-commerce, that is, on the Internet. When people think of e-commerce, they often think of retaile-commerce, typified by companies like Amazon.com. Most of the sales growth on the Internet,however, has been in the area of business-to business (B to B) e-commerce, rather than in retailbusiness – to – consumer (B to C) e-commerce.2. Define Business to Business ecommerce. Business –to – business e-commerce is defined as buying and selling between twocompanies over the World Web. The companies might be manufacturers, suppliers, wholesalers,or retailers.3. Define EDI. Companies electronically transferred purchase orders through a system known asElectronic Data Interchange (EDI). EDI is an electronic computer-to-computer transfer ofstandard business documents.4. What are the Benefits of EDI?  Costs of paper, printing, and postage have almost disappeared from ordering system.  Errors have been brought to a minimum because orders do not have to be rekeyed into a supplier’s system.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 82
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH  Ordering is fast and efficient. As s result, large companies have forced their smaller supplier’s to use EDI, via a VAN if necessary. The supplier pays the VAN per amount of information sent and received.  Suppliers and buyers are “locked” into business relationships: Once a company sets up an EDI system with its supplier, it takes effort to change suppliers, and most do not, hence locking in the relationship. This is an advantage as long as both suppliers and buyers remain satisfied.5. Why companies are morning from EDI to Internet Based Procurement? The following reasons: 1. The Internet is a lower-cost network than private EDI networks. 2. Purchasing costs are further reduced as suppliers compete for orders on the buyer’s Web site.6. Define back-office processing. When a company receives an order through its Web site, the company can’t merely file orprint orders for later handling, like e-mail updates and order tracking. The orders must beefficiently fed into the company’s marketing, manufacturing, shipping, and accounting systems –a series of steps sometimes called back-office processing.7. Define ASP. An Application Service Provider (ASP) is a company that delivers software applications toa company over a network. Usually that network is the Internet.8. What are the advantages of using an ASP?  Affordability – Companies that once thought they couldn’t afford an ERP system can now pay for it on a monthly basis. Gaining access to an ERP system through the Internet is even cheaper than using private leased lines. ASP services can be received through an Internet connection using a regular browser and the SAP graphical user interface.  Shorter implementation times – The time for implementation is shorter for those who choose to implement ERP through an ASP. ASPs already have similar systems running and are experienced in software delivery. They have servers, telecommunications, and highly trained personnel already in place.  Expertise – ASPs are experts in delivering IS applications. They do all the maintenance, including backups, training, and customizing of the system. That lets their customers eliminate. IT headcount to focus on their business. ASPs can also run information systems more efficiently because they do it on a large scale. ASPs can spread fixed costsVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 83
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH over many users, thus achieving economies of scale that might translate into low lease rates. And, in this tight IS labor market, an ASP may have a better chance of attracting and retaining a talented work force.9. What are the disadvantages of using an ASP?  Security – Companies using ASPs are turning their information systems over to a third party; therefore, they must be confident that the ASP has a high level of security. How hardware will be shared is also a security concern: The ASP will have multiple users on a single piece of hardware. Each customer’s data must be shielded from other customers. An ASP might have better security, however, technology than a small company can obtain.  Bandwidth/response time – The telecommunications channel from the ASP to its customers must be fast enough to handle multiple users. An ASPs servers must be sufficient in terms of processing capabilities.  Flexibility – An ASP should be flexible in working with its users and satisfying their requests for processing modifications.  No frills – An ASP can usually provide basic systems well, but asking for unusual configurations may cause problems. An ASP might not allow for third-party add-ons either. Further, the ASP might not want to do much customization using the SAP R/3 programming language, ABAP.  Technical, not business – An ASP knows the technical aspect of the software, but it will need the customer to define the business processes and make the configuration decisions.10. What is NPV? Net Present Value (NPV) is a way to figure out whether an investment is profitable, or inthis case, compare outlay of funds from one method to another. NPV can be calculated over anumber of years; in our case, a five-year outlay of funds for the ERP project. The syntax of NPV is= NPV (hurdle rate %, range of values) within an Excel spreadsheet. The values in the range canbe positive or negative numbers.11. Define Hurdle rate. The hurdle rate (written in the spreadsheet as a decimal, not a percentage) is the rate ofdiscount over the period. The hurdle rate is the minimum acceptable rate of return on a projectthat a company will accept.12. What are the advantages of connectivity?VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 84
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH • Efficiency – For the traveling representative, connectivity means faster response time to a customer’s order or request. • Productivity – More time is productive since access to the system can be made from virtually any where. • Data Collection – The user can easily collect data in the field and transmit it to the office, which can mean connecting to the company’s back-office system. • Profits – Profits may eventually rise with the increased efficiency and productivity.13. What are the perceived benefits of ERP for a company like yours?Business in the past 10 years has gotten more complex and now has many dimensions ERP canhelp our company in two major areas: 1. Globalization: Different countries have different ways of doing business. ERP can replace those global differences. 2. Regulatory environment: In our business, there are strict regulatory rules, and they are different in different markets. ERP can help manage company –wide compliance with all those complex regulations.ERP is basically using system to coordinate the flow of information to maximize profits. You needto strike a balance, how ever, between total integration and nonintegration. There can be problems with total integration. The complexity of business is so high thatimplementing a total ERP system for a large multinational company is very difficult. One needs toapproach ERP with reality in mind. For example, one of our factories in Brazil had an ERP systemin place. It worked well and the factory was profitable. It was not a good business decision forthem to change their non – SAP system to our headquarter’s SAP system, so an interface waswritten to bridge the two systems.14. Why is ERP an easy sell to top management? There is a one – word answer to that question: control. All upper-level managers want tocontrol their organization. They often do not have access to proper information at the proper time.Any system that can give them accurate, timely information is fantastic. In fact, years ago, weimplemented the old SAP system, R/2, just for that purpose. The workers in our factory wereincredulous because we went from a Windows-based graphical user interface to a text – basedinterface with R/2, To them, it seemed like a step back in technology, but that new system couldgive upper-level management the information they needed to control the company’s operations.15. Are there any unusual concerns for ERP in the pharmaceutical industry? In the pharmaceutical industry, certain forces lead to fragmented systems, not integratedsystems. For example, an individual Customer’s genetic code is one type of information thatwould not be widely available on an integrated system due to privacy concerns. Also, in thisVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 85
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHregulated business, ERP systems have different flows than that seen in the traditional paper-basedsystem that the FDA [Food and Drug Administration] still uses. The FDA is moving into theelectronic age, but government regulators don’t move at the same pace as industry.16. How is ecommerce changing the face of ERP in your industry? E-commerce is forcing business into an environment that is faster than ever and moreuncertain than ever. One interesting part of the e-commerce puzzle in our industry is the area ofelectronic medical records. The concept of integrated information for medical records has appealfor all healthcare practitioners, insurance companies, and pharmaceutical companies. Freelyavailable electronic patient records, however, are the last thing the public wants. So although theconcept of a fully integrated system for medical records is appealing to the industry, it is not nowpossible due to privacy concerns. For example, assume that all clinical trial data were in an ERP system, accessibly by manytype of users such as pharmaceutical companies, doctors, and researchers. Cost savings andresearch advances would result. Many users would like this, but the patients in the clinical trialswould be concerned their privacy was being invaded.17. What is the future of ERP? It is true that the back – office systems need to be in place for e- commerce to take placesuccessfully, E-commerce is impossible without the infrastructure ERP provides. ERP faces risksin the new electronic environment, however, because of the Web’s research, speed, and lack oftime to retract errors. Time is now compressed and mistakes that happen can be big. So there inuncertainty in the future of ERP and for all businesses, Business people will have to work hard torespond to the speed at which ERP and the Web can deliver information.18. Define Business to consumer e-commerce.Business – to – consumer e-commerce can stream – line a company’s ordering operations arerecord information about customers, making the company more competitive.19. What is wireless connectivity?Wireless connectivity is rapidly gaining popularity globally, and ERP systems are becomingconnected to those wireless devices. Access to better information can provide a competitive edge.20. Write the benefits of E-Commerce. The electronic commerce gives the possibility of facing the storage in real time in order toreach clients through the web. It combines the product information with the multimediainformation and manages the sales process from beginning to the end.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 86
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH21. What is EIA? Enterprise Integration Applications (EIA) is a tool which is used to integrate the data of oneenterprise with other enterprises or Divisions. It is also used to link the external systems with theERP system. PART – B1. Describe ERP & e-commerce.E-Commerce and ERP E-Commerce ERP Web Store Financials Web site Inventory Customer portal Payroll Vendor portal Purchasing You might ask yourself, what does e-commerce have to do with ERP? The answer is thateach technology complements the other, and each is necessary for total success. Without e-commerce, a company cannot compete with companies offering similar goods. Without ERP acompany cannot fill Web orders expeditiously. Here’s why. When a company receives an order through its Web site, the company can’t merely file orprint orders for later handling, like c-mail updates and order tracking. The must be efficiently fedVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 87
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHinto the company’s marketing, manufacturing, shipping, and accounting systems-a series of stepssometimes called back-office processing. An efficient back-office operation is crucial for any company’s success E-commerce oftenexacerbates problems and reveals weaknesses in current back-office systems. For example,Amazon.com invests its cash flow back into warehouses and other support that the companyneeds to keep its back office in order, so it can continue its success. Some Web only businesses arefrightened that companies like Wal-Mart will enter the Web market. Why? Because thosecompanies already have well-established, integrated back-office and distribution systems. Some companies with unintegrated information systems have built Web sites beforecreating an integrated back-office system. As a result, those companies often can’t fill orders in atimely fashion, as was apparent with many e-commerce businesses during the 1999 holidayseason. One large toy company announced less than a week before Christmas that it would not beable to fill all its Web orders. Surprisingly enough, all the toys were in the warehouse, but thecompany couldn’t organize basic functions-like picking, packing, and shipping-to get toys toconsumers on time. So integrating the Internet front-office operation and the ERP back-officeoperation is fundamental in today’s business environment.2. Explain ERP and internet.Internet-Based Procurement Even though EDI has been useful, companies are moving from EDI to Internet-basedprocurement for the following reasons: 1. The Internet is a lower-cost network than private EDI networks. 2. Purchasing costs are further reduced as suppliers compete for orders on the buyer’s Web site. Thus, locking in suppliers is not the same and may not take place at all in Internet-basedprocurement. Suppliers that cannot compete on price may fall by the wayside, leaving the buyerwith relationships with only viable suppliers. Here are three recent examples of thisphenomenon:  In 2000 Ford Motor Company and General Motors announced that they are putting together an enormous Web site called a “B-to-B automotive trading exchange. ”This venture is in conjunction with Commerce One and Oracle, which is providing the necessary software. Each company, along with its suppliers, can buy and sell automotive parts on this Web site. Purchasing auto parts will be fast and efficient, and auto manufacturers can maintain a low inventory. These savings could translate to more than 10% of the purchase price of a car. Other industries, in addition to the auto industry, are setting up exchanges.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 88
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH  ERP companies like SAP have also entered the B-to-B- e-commerce market. SAP has proposed a joint effort with Stat oil, the world’s second-largest supplier of crude oil, to develop a vertical market place for oil and gas services. SAP’s mySAP.com supports exchanges in buying and selling raw materials with large companies like Stat oil as partners. Stat oil is linking with SAP and offering a Web site to find all types of equipment and services for the oil and gas industry. SAP hosts the marketplace, which will provide sources for services, equipment, and maintenance to the oil and gas industry. Stat oil expects large savings by using a single marketplace. Other companies are expected to use the marketplace as well. As the long-established oil and gas industry has matured, pricing has become highly competitive. Any product that makes the industry more efficient it welcomed.  The World Chemical Exchange allows companies to buy, sell, and trade chemicals at chemconnect.com. The Web site claims the following advantages: 1. Best prices without traditional negotiations 2. Faster contracts 3. Access to new worldwide and new trading partners 4. Instant market informationInternet Auctions and Reverse Auctions B-to-B e-commerce also features online bidding through auctions and reverse auctions. In astandard auction, a company might put up for bid its products or even its obsolete equipment. Ina reverse auction, a company might ask for bids to supply it with goods, services, or eventelecommunications capacity. Here’s how a reverse auction works. Let’s go back to our examplecompany, Fitter Smacker. The company needs raw materials such as oats and wheat germ, whichfor FS are essentially commodities. The company can go to a “bidding” Web site and set up aprogram to run overnight. The program uses the Internet to solicit bids to supply those rawmaterials. In the morning, FS’s purchasing agent can choose the lowest price offered for the oatsand wheat germ. Internet-based auctions are changing the way in which commodities are purchased. A fewyears ago, commodities would have been purchased through a supplier, or middleman, whonegotiated prices of raw materials with suppliers. Now, the Internet and its bidding programshave threatened the middleman’s role and made the buying process more efficient-in a sense, theInternet has become the middleman. Pricing is dynamic and open. In fact, dynamic pricing is not only forcing out middlemen, but it is also putting pressureon sellers. Sellers must be nimble and flexible to participate in this fast-paced market. Thisrequires a seller’s accounting and logistics operations to be in excellent shape before trying to sellin the auction market.VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 89
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH3. Write future direction of ERP.New Markets As larger enterprises become saturated with new-generation client/server ERP systems,vendors are being forced to find new markets for their product suites in order to grow. Thispressure is causing ERP vendors to increase their appeal to small business clients through anumber of initiatives. These initiatives include the following:  Supplementing their direct sales force with reseller channels  Lowering the entry price point of their software to make it financially viable  Stratifying their software offerings to appeal on the basis of reduced functionality  Improving the implementation methodologies for faster deployment  Porting the products to platforms such as Microsoft Windows NT.New Channels Vendors such as SAP AG Inc., Oracle Corporation, and Baan Co. have been buildingreseller channels-both in the US and worldwide-o reach the smaller businesses that are looking forthe complete-one-stop shopping for their ERP solutions. The ERP software is made morefinancially attractive by lowering the entry price point for each module and by ramping up thetotal costs by basing price on user licenses. Oracle is being particularly aggressive in this respect with software pricing comparingfavorably with middle-market client/server offering from companies such as Platinum Softwareand Great Plains Software. Although JD Edwards ventured in these waters by complementing itsOne World suite with a lower-cost line called Genesis, most of the vendors have avoidedproducing loss-expensive ‘lite’ versions of their software. SAP abandoned its SAP Lite projectsome time ago and it looks as if the lite versions will have to wait for some more time.Faster Implementation Methodologies All ERP vendors have suffered from the perception that their software is difficult and costlyto implement. This perception has provided huge profits to the ‘Big 6’ accounting firms (now Big5 with the merger of Price Waterhouse and Coppers & Lay brand) that have generated billions infees from their ERP software implementation ‘practices.’ Even though only 10-15% of theimplementations have taken years to complete and have eaten up millions of dollars of consultingcosts, the fact remains that implementing ERP packages is difficult. As ERP system may consist of dozens of modules that are deployed on a multinationalbasis to service hundreds of users from many different business departments. There may also be acomplete change of IS infrastructure-say from a mainframe to a UNIX platform-while a number ofcore business processes are being simultaneously reengineered. ERP vendors have thus begun tofocus their effort on making the implementation process easier by providing more effective toolsand methodologies to speed up the process, creating elite consulting teams to intensify resourcesVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 90
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHwhen required, and using model-based approaches and opening up their systems for easierintegration. For example, SAP has introduced a program called Accelerated SAP (ASAP) that takes theknowledge gained from thousands of R/3 implementations to date and consolidates this expertisein a product called the Business Engineer. This product helps implementation teams configure theSAP modules to conform to the processing style of some 100 business operating scenarios.Methodologies such as ASAP help reduce SAP implementation times to less than six months inmany cases. Oracle recently introduced a similar program called Fast Forward, to help speed upimplementations of Oracle Applications suites and nail down the costs up-front. Despite the availability of new channel partners and implementation methodologies of themajor consulting firms, ERP systems have often been difficult to implement because of a dearth ofskilled consultants. As a result, initiative such as Oracle’s Oracle One or SAP’s Platinumconsulting services are leading the way in creating highly skilled consulting teams and arecharged with delivering fully trained and experienced consultants on a worldwide basis to pushimplementations through faster.Business Models And BAPIs Using products such as Intellicorp Inc.’s Live Model, implementation teams can review andsimulate changes to the SAP R/3 applications Reference Model that provides views of R/3processes, data models and functions. The Reference Model and any changes made to it arestored in the Live Model repository and can thus be audited and changed on demand.Furthermore, because Live Model is OLE complaint, the R/3 models can be manipulated anddocumented through desktop OLE applications such as Microsoft Word. SAP has attacked the notion that the R/3 system is not open by releasing the specificationsfor some 170 business application programming interfaces (BAPIs), which help third-partyapplications interact with R/3 directly. BAPIs are simply, sets of methods that allow externalapplications to collaborate with specific R/3 business objects, such as customers, accounts, oremployees. The fact that the R/3 data is addressable through these callable methods, (BAPIs)gives the third party application vendors a lot of flexibility to build supporting applications for theR/3 system. In a similar manner, Baan provides an offering called OrgWare that is based on the use of atightly integrated business-modeling tool, combined with business-specific templates that help toautomatically configure the software to suit specific operational needs. Baan is currently in theprocess of enhancing this tool with new setup wizards to accelerate software implementation onthe Windows NT platform.Convergence on Windows NT The growing popularity of Windows NT has forced almost all ERP vendors to offerproducts that cater or this segment SAP R/3 has been available since April 1994 on NT and sinceVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 91
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHOctober 1995 on SQL Server-while Baan, Oracle, and PeopleSoft have announced the generalavailability of their applications on the BackOffice platform in 1997. SAP claims to have over 2,000 R/3 installations on NT and holds Microsoft itself as thecompany’s best customer. Baan sports the ‘Designed for Microsoft BackOffice certification.Oracle touts its support for its own NT-based clustering technology, and people Soft shown off itsrecent switch to BackOffice as its primary development and initial rollout platform. As Microsoftscales up its enterprise versions of NT and SQL Server to support more processors as well asfailover clustering and row-level locking, BackOffice is simply becoming amore viable platformfor running demanding ERP applications. The BackOffice platform is already the platform ofchoice among the middle market vendors of accounting and distribution software, with theNT/SQL Server combination grabbing nmarket share form the popular Novell/Btrieve platform.Application Platforms ERP vendors already deliver comprehensive suites of application modules that supportmultinational deployment, Year 2000 compliance, and the Euro (European single currency). Buteach vendor is trying to extend the reach of its software and make it more like an applicationplatform than a suite of modules. SAP is already ahead in this race; its R/3 product is one of thefex that can be managed, centrally using popular platform management tools from vendors suchas Computer Associates (UniCenter TNG) and Tivoli (TME)New Business Segments All the ERP vendors are now capable of delivering specialized variants of their applicationsto service vertical markets such as government, healthcare, financial service, or retailenvironments. Some vendors are also moving into more specialized areas, such as supply chainmanagement and demand forecasting or sales automation and marketing. PeopleSoft bought Red Pepper Software to enhance its supply chain offering, while Baanrecently acquired Aurum Software for its Aurum Customer Enterprise suite of customerrelationship management tools. To strengthen its financial modules, Baan also teamed up withHyperion Software to link Hyperion’s financial accounting, budgeting and reporting solutions toBaan’s distribution and manufacturing modules.More Features Improving decision support has been another focus of almost all the ERP vendors. Baan islinking its applications to the Gentia product (from Gentia Software Inc.) to provide OLAPcapabilities, and for the setup and monitoring of key performance indicators. JD Edwards teamedup with Information Builders to deliver a data mart, based on Information Builders Inc.’s SmartMart suite of database access middleware, data transformation, reporting, and OLAP tools.Oracle provides a data mart designer and builder tool for creating data marts, and Oracle alsooffers Oracle Discoverer, and end-user tool for querying, charting and reporting data fromVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 92
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHOracle’s Applications suite. The next version of PeopleSoft will include closer integration betweenPeopleSoft applications and both, the client-based Cognos Corp. Power Play multidimensionalOLAP tool and Arbor Software Corp.’s multidimensional Essbase server. SAP has also previewedits own Business Information Warehouse product for synchronizing the R/3 transaction systemwith a data warehouse that can manage both R/3 and non-R/3 data, through use of a metadatarepository and a front-end OLAP engine.Web Enabling A with every other software market, ERP vendors are being forced to move from aclient/server to browser/server architecture to Web-enable their software and thus, deliver self-service and electronic commerce capabilities. Baan is working to deliver a java-based Webinterface to all its products. The company is also focusing on the automation of supply-chainrelationships via the Internet, on e-commerce via the Microsoft Merchant Server (now known asSite Server), and on using Hyperion Software Corp.’s Spider-Man technology for report and alertdistribution across the Web. PeopleSoft is set to deliver its Universal Applications-Java-based self-service applets-with its PeopleSoft 7. JD Edwards is also using Java to allow its One Worldfunctionality to be available either through a Windows client or a Web browser, while Oracle hasused Java to deliver its Oracle Web Employees, Oracle Web Customers, and Oracle Web Suppliersmodules. In 1997, SAP released 25 Web applications for version 3.1 of the R/3 and recentlypreviewed links to online catalogs for Web-based procurement. Unlike the Microsoft-centricmiddle market applications, the ERP vendors are all using java, rather than Microsoft’s ActiveX,for their first generation of Web-enabled applications. The move by the ERP vendors to embrace Java as a means to deliver and deploy their webfunctionality is the first move away from proprietary technologies to more open tools. One reasonwhy implementing solutions from SAP and PeopleSoft can be expensive is because the tools forcustomizing their products-ABAP4 and People Tools-are proprietary. Whereas many lower-tiersoftware vendors have built their application front ends using popular-the ERP vendors have nottaken this route. As a result, the customer will have to pay a premium for ABAP4 and peopleTools programmers, instead of leveraging the Power Script of Visual Basic expertise that they mayalready have in-house. Because Oracle is already a tool vendor, the company uses Oracle Forms,Developer 2000, and Designer 2000 to develop its Oracle Applications.Market Snapshot Even with zero growth at SAP, it would still take any competitor a couple of years of triple-digit growth to overtake the German giant. PeopleSoft has not made a wrong move so far, andBaan is also showing that it has the mentality and results to become a top-three player. Oracle haslately, focused more attention on its applications business as a growth engine and seem to bereaching, most aggressively, into the territory targeted by the middle-market client/serveraccounting players. JD Edwards seem to be in the most vulner able position, with their continuedreliance on the momentum of IBM’s AS/400 line, coupled with their need for transition to newproduct lines and platforms, where their previous market-leading positioning was less than clearVEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 93
    • VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECHcut. ERP vendors are definitely extending their reach as they fight to maintain their growthmomentum, during the transition from client/server through browser/server to the promisedland of distributed components. We can expect to see many more acquisitions along the lines ofthe Baan/Aurum deal, an increasing focus on the Microsoft BackOffice platform, and ERPpackages turning up more and more in businesses that previously, could just envy functionalityavailable to those with deeper pockets. One thing is clear, no one wants just ‘ERP’ anymore. The emerging trends in the enterprisepackaged application industry are its integration with new cutting-edge technologies, such assales force automation (SFA) and customer management. Driven in part by the huge impact ofInternet-based commerce, these new applications are leading to a seeming divergence between so-called Back. Office and Front Office functionalities. *********************VEL TECH VEL TECH MULTI TECH VEL TECH HIGH TECH 94