The study of_erp_in_vizag-libre

A STUDY ON E.R.P IN VISAKHAPATNAM
STEEL PLANT WITH ADVANCED BUSINESS
APPLICATION PROGRAMMING
Submitted in partial fulfillment of the requirement for the
Degree of Bachelor of Technology
Under Biju Patnaik University of Technology
By
Ankit Chand
Roll: 201018254
Btech 4th
Semester
Dept. of Computer Science and Engineering
2012-2013
Under the guidance of:
K. Satyanarayana
Dy. General Manager (E.R.P Dept.)
Visakhapatnam Steel Plant
NATIONAL INSTITUTE OF SCIENCE AND TECHNOLOGY
Palur Hills, Berhampur-761008, Odisha,India

CERTIFICATE
This is to certify that this project submitted by Ankit Chand, bearing
Roll no: 201018254 of National Institute of Science and Technology , in
partial fulfilment for the requirement of the degree of “Bachelor of
Technology” in Computer Science and Engineering affiliated to Biju
Patnaik University of Technology is record of bonafide work carried out
by him under my supervision.
Signature of Guide:
K.Satyanarayana
(Deputy General Manager)
ERP Department
Visakhapatnam Steel plant

Contents:
1. Introduction to the organization
2. Present Scenario
3. Enterprise Resource Planning
a. What is ERP?
b. Advantages over LEGACY SYSTEM
c. Why organizations implement it?
d. Scope of ERP
e. ERP and E-Commerce
f. Algorithm
g. Drawbacks
4. Implementation in Vizag Steel
a. Software
b. Hardware
c. Network
d. Goals achieved
e. Way Forward
5. References

Introduction to Organisation
Rashtriya Ispat Nigam Limited is the corporate entity of Visakhapatnam Steel Plant. The steel
plant is located 26 km south of Visakhapatnam city. The company has a blast furnace grade limestone
captive mine at Jaggayapeta, a captive mine for dolomite at Madharam, a manganese ore captive mine
at Cheepurupalli. All the captive mines are located in the state of Andhra Pradesh. It has also got a
mining lease for river sand in river Champavathi. The plant has a capacity to produce 2.656 Mt of
saleable steel of which 2.410 Mt is finished steel.
Besides receiving raw materials from the captive sources, the steel plant meets its iron ore
requirements from Bailadilla mines of National Mineral Development Corporation, coking coal
requirements through imports and coal Washeries of Coal India Limited, SMS grade limestone
through imports, quartzite requirements through purchase and boiler coal from the coal mines of
Mahanadi Coal Limited.
The product profile of the plant comprises of wire rods, rounds, reinforcement bars (rebar), angles,
channels, beams, squares, billets and blooms. The product profile also includes basic grade pig iron,
granulated slag, coal chemicals and other by-products. The plant also exports power to AP Transco
from its captive power plant. The steel plant has many technological features, which are unique
amongst the steel plants in the country.
The company is a pioneer in introducing many new technologies in the country. The production of
TMT rebar’s by temporary process is a shining example in this respect. Because of high level of
technology existing throughout the plant, the company has a very good manufacturing capability to
meet the needs of various customers.
The efforts of RINL are being recognized by various forums. In addition to National Energy
Conservation Award in Integrated Steel Sector, RINL has been bestowed with Prestigious ―Prime
Ministers Trophy-2003‖ for Steel Industry for overall improvement. Some of the major awards
received by RINL those are
 Energy Conservation Awards (continuous) by Ministry of Power.
 PM Trophy for Best Steel Plant
 MOU award
 SCOPE Award
 Environmental awards
 Safety awards
 Quality awards
 Quality circle awards
 Rajbhasha awards
 Best tax payer award
 Best management award

Present Scenario
PROBLEMS IN EXISTING SYSTEM:
 No Rich G.U.I.
 Existing system user’s needs to save his information in the form of books or papers or
written type.
 It doesn’t provide the details about contact details, like address and employee
identification number etc.,
 There is no sharing possibility if the data is in the form of paper or Disk drives.
 There is very less security for saving data; some data may be lost due to mismanagement.
 There is no authentication or ability to restrict the information.
 In this system there is no report generation.
 It’s a limited system and not users friendly.
 Updating the data or information is difficult
FEASIBILITY STUDY:
Preliminary investigation examine project feasibility, the likelihood the system will
be useful to the organization. The main objective of the feasibility study is to test the
Technical, Operational and Economical feasibility for adding new modules and debugging
old running system. All system is feasible if they are unlimited resources and infinite time.
There are aspects in the feasibility study portion of the preliminary investigation:
 Technical Feasibility
 Operational Feasibility
 Economical Feasibility
STUDY OF THE SYSTEM:
In the flexibility of the user, the interface has been developed a graphics concept in mind,
associated through a browser interface. The GUI’S at the top level have been categorized as
1. Administrative user interface
2. The Operational or Generic user interface

Enterprise Resource Planning
I. What is E.R.P?
ERP integrates internal and external management information across an entire organization,
embracing finance/accounting, manufacturing, sales and service, CRM, etc. ERP systems
automate this activity with an integrates software application. Its purpose is to facilitate the
flow of information between all business functions inside the boundaries of the organization
and manage the connections to outside stakeholders.
ERP systems can run on a variety of hardware and network configurations, typically
employing a database as a repository for information.
ERP systems typically include the following characteristics:
 An integrated system that operates in real time (or next to real time), without relying
on periodic updates.
 A common database, which supports all applications.
 A consistent look and feel throughout each module.
 Installation of the system without elaborate application/data integration by the
Information Technology (IT) department.

1. Finance/Accounting:
 General ledger: The general ledger, sometimes known as the nominal ledger, is the main
accounting record of a business which uses double-entry bookkeeping. It will usually include
accounts for such items as current assets, fixed assets, liabilities, revenue and expense items,
gains and losses. Each General Ledger is divided into debits and credits sections. The left
hand side lists debit transactions and the right hand side lists credit transactions. This gives a
'T' shape to each individual general ledger account.
 Payables: Accounts payable is a file or account sub-ledger that records amounts that a person
or company owes to suppliers, but has not paid yet (a form of debt), sometimes referred as
trade payables. When an invoice is received, it is added to the file, and then removed when it
is paid. Thus, the A/P is a form of credit that suppliers offer to their customers by allowing
them to pay for a product or service after it has already been received.
 Cash management: cash management, or treasury management, is a marketing term for
certain services offered primarily to larger business customers. It may be used to describe all
bank accounts (such as checking accounts) provided to businesses of a certain size, but it is
more often used to describe specific services such as cash concentration, zero balance
accounting, and automated clearing house facilities. Sometimes, private banking customers
are given cash management services.
 Fixed assets: Fixed assets, also known as a non-current asset or as property, plant, and
equipment (PP&E), is a term used in accounting for assets and property which cannot easily
be converted into cash. This can be compared with current assets such as cash or bank
accounts, which are described as liquid assets. In most cases, only tangible assets are referred
to as fixed.
 Receivables: Accounts receivable (A/R) in American English, receivables or debtors in
British English, is money owed to a business by its clients and shown in its accounts as an
asset. It is one of a series of accounting transactions dealing with the billing of a customer for
goods and services that the customer has ordered.
 Budgeting: A budget (from old French baguette, purse) is a list of all planned expenses and
revenues. It is a plan for saving and spending. A budget is an important concept in
microeconomics, which uses a budget line to illustrate the trade-offs between two or more
goods. In other terms, a budget is an organizational plan stated in monetary terms.

 Consolidation: Consolidation or amalgamation is the act of merging many things into one. In
business, it often refers to the mergers and acquisitions of many smaller companies into much
larger ones. In the context of financial accounting, consolidation refers to the aggregation of
financial statements of a group company as a consolidated account.
2. Human resources:
 Payroll: payroll is the sum of all financial records of salaries for an employee, wages, bonuses
and deductions. In accounting, payroll refers to the amount paid to employees for services
they provided during a certain period of time.
 Training: The term training refers to the acquisition of knowledge, skills, and competencies as
a result of the teaching of vocational or practical skills and knowledge that relate to specific
useful competencies. It forms the core of apprenticeships and provides the backbone of
content at institutes of technology.
 Benefits: Employee benefits and (especially in British English) benefits in kind (also called
fringe benefits, perquisite or perks) are various non-wage compensations provided to
employees in addition to their normal wages or salaries.[1] Where an employee exchanges
(cash) wages for some other form of benefit, this is generally referred to as a 'salary sacrifice'
or 'salary exchange' arrangement.
 401K: A 401(k) is a type of retirement savings account in the United States, which takes its
name from subsection 401(k) of the Internal Revenue Code (Title 26 of the United States
Code). A contributor can begin to withdraw funds after reaching the age of 59 1/2 years. (See
subsection "Withdrawal of funds" below for restrictions before that age.) 401(k) s was first
widely adopted as retirement plans for American workers, beginning in the 1980s.
 Recruiting: Recruitment is the process of filling vacancies with people.
 Diversity management: The "business case for diversity" theorizes that, in a global
marketplace, a company that employs a diverse workforce (both men and women, people of
many generations, people from ethnically and racially diverse backgrounds etc.) is better able
to understand the demographics of the marketplace it serves and is thus better equipped to
thrive in that marketplace than a company that has a more limited range of employee
demographics.

3. Manufacturing:
 Engineering: Engineering is the discipline, art, skill and profession of acquiring and applying
scientific, mathematical, economic, social, and practical knowledge to design and build
structures, machines, devices, systems, materials and processes that safely realize
improvements to the lives of people.
 Bill of materials: A bill of materials (sometimes bill of material or BOM) is a list of the raw
materials, sub-assemblies, intermediate assemblies, sub-components, components, parts and
the quantities of each needed to manufacture an end product. No physical dimension is
described in BOM.
 Work orders, Scheduling, Capacity, Workflow management: A workflow consists of a
sequence of connected steps. It is a depiction of a sequence of operations, declared as work of
a person, a group of persons, an organization of staff, or one or more simple or complex
mechanisms.
 Quality control: Quality control is a process by which entities review the quality of all factors
involved in production.
 Activity based costing: Activity-based costing (ABC) is a costing model that identifies
activities in an organization and assigns the cost of each activity resource to all products and
services according to the actual consumption by each: it assigns more indirect costs
(overhead) into direct costs.
 Product lifecycle management: product lifecycle management (PLM) is the process of
managing the entire lifecycle of a product from its conception, through design and
manufacture, to service and disposal.PLM integrates people, data, processes and business
systems and provides a product information backbone for companies and their extended
enterprise.
4. Supply chain management:
 Order to cash:"Order to cash" (O2C or OTC) normally refers to the business process for
receiving and processing customer sales. It follows "Opportunity to Order" and covers
business-to-business (B2B) and business-to-consumer (B2C) sales.

 Inventory: order entry, In the USA and Canada the term has developed from a list of goods
and materials to the goods and materials themselves, especially those held available in stock
by a business; and this has become the primary meaning of the term in North American
English, equivalent to the term "stock" in British English. In accounting, inventory or stock is
considered an asset.
 Purchasing: Purchasing refers to a business or organization attempting for acquiring goods or
services to accomplish the goals of the enterprise. Though there are several organizations that
attempt to set standards in the purchasing process, processes can vary greatly between
organizations. Typically the word ―purchasing‖ is not used interchangeably with the word
―procurement‖, since procurement typically includes Expediting, Supplier Quality, and
Traffic and Logistics (T&L) in addition to Purchasing.
 Product configuration: Mass customization, in marketing, manufacturing, call centres and
management, is the use of flexible computer-aided manufacturing systems to produce custom
output. Those systems combine the low unit costs of mass production processes with the
flexibility of individual customization.
5. Project management:
 Costing, billing, time and expense, performance units and activity management.
6. Customer relationship management:
 Sales and marketing, commissions, service, customer contact, call centre support
Data services:
 Various "self–service" interfaces for customers, suppliers and/or employees
Access control:
 Management of user privileges for various processes.
II. Advantages over Legacy System
Traditionally, many organizations conduct Finance, HR, Material Management,
Production and Marketing functions on separate platforms with no
interconnectivity which increases the redundancy and lack of much desired
Management Information System for speedy and accurate decision making.
Evolution of ERP facilitated the long desired integration in the business processes
of the organization. Fig.1 indicates the integrated structure of ERP software as
against stand alone and island based soft ware of home grown legacy systems.

How ERP works:
As can be seen ERP is an integrated software using common database across the
organization with single point data entry. It has all the facts that are required for the use of all
the stake holders of an organization. Once the data is entered by the front line users, the same
is used across the organization by various people for various purposes. Management uses
ERP through Business intelligence for decision making, while front line users use for
inputting and retrieving data through their desktop computers. Stake holders like suppliers
and customers uses the same ERP system through internet or dedicated VPN network. Other
stake holders like banks, government and other partners system through secured connectivity
using specific technical tools for sending and receiving data from ERP system.

III. Enabling power of ERP:
Having evolved over three decades for catering to the needs of ever changing and dynamic
business requirements ERP has enabling power to provide
Single point data entry
An integrated view of the entire organization
Provides the ability to balance supply and demand
Promotes consistent customer, product and account numbering
Fact based analysis of customer and product performance
Supports profitability analysis
Monitoring and control of trade spending
Support building of sales mix profitability per account
On line credit checks to reduce bad debt.
ERP implementation –various requirements:
In order to successfully implement ERP, an organization requires four major components i.e. ERP
product, Hard Ware, Network solutions and Implementation partner.
ERP product:
It is a software, developed to suite various types of organizations. Each of the ERP developing
companies conducts research on requirements of different organizations before developing and selling
the software. There are thousands of such ERP developers across the globe, but very few are globally
respected and used. Organizations like SAP, ORACLE, INFOR and Microsoft occupy more than 70%
of the market share.
Hard Ware:
Entire data base of the organization including application software is stored at one place.
Since all the processes are automated in ERP, the processing speed of the hardware needs to
be very high. Data base servers, Application Servers and web servers are provided with more

than 100% redundancy and with highest level of reliability. Personal computer to each user
any way is a necessity for implementing ERP.
Network solutions:
ERP soft ware and Hardware to be connected to all the users across the organization through
Local Area Network (LAN) and across the globe through Virtual Private Network(VPN) or
Internet. Dedicated LANS need to be provided for local users which require switches,
firewalls, routers, fibre optic cable, LAN cable etc. Dedicated VPN either hired or own is
required to be proved to connect outside users which require switches, routers, modems, VPN
bandwidth and internet bandwidth.
Implementation Partner:
Implementation of ERP is the most crucial part of ERP. In general, it is understood that
purchasing of ERP software and required hard ware along with network solutions is sufficient
to implement ERP. It is like purchasing a PC and windows software. But without knowing
how to install the software, how to use it and how to configure to suite to your requirements,
there is no use of such software and hard ware. Same is the case with ERP in an
organizational level. There are some prominent software organizations across the globe that
has knowledge of the ERP software and Hardware along with the knowledge of different
organizations. These are called Implementation Partner (IP), who helps the organization in
identifying the new needs and improvements which can be brought through ERP. IP
understands the organizational needs after thorough study and discussion and configures the
ERP software and hardware to suit to the specific requirements of the type of organization.
Steel industry requires different type of configuration and Banking or Insurance companies
requires different types of configuration, but from the same ERP product like SAP or Oracle.
IP acts as mediator between the implementing organization and ERP product and also helps
implementing organization for change management needs.
Critical Success Factors of ERP:
Technology, Process and People are the three critical success factors for ERP implementation
in any organization.
 Technology:
It is the maturity of the ERP product, hardware facilities, networking ability and bandwidth
provisions and suitability to the implementing organization. In the modern era, the
technology is well developed to suit to steel industry.
 Process:
It is the Process of implementation including change management. Expert implementers are
available with adequate knowledge of implementation with a systematic and well defined
implementation process.
 People:
People are considered as the most important critical success factor in any organization as the
culture of the organization influences the people attitude. Each organization has its own
culture and its people influence the success of the implementation of ERP. Since Technology
is well advanced and proven to be successful and matured processes being in place, attitude
of the people is the key for successful implementation of ERP. Thus change management
program plays an important role before, during and after implementation of ERP.

III. Scope of ERP:
฀ Integrate Financial Information
฀ Integrate Customer Order Information and Store Customer History
฀ Streamline the manufacturing process
฀ Standardizing HR Information
฀ Store and Analyze productivity information for employees and facilities
฀ Allow inter-departmental process monitoring and reporting
฀ Reports with data from across the organization
฀ Allow Marketing and Management to monitor and analyze all stages required to
provide the clients with the client with products and services
฀ Allow users limited and monitored access to data across the organization according
to needs.
The ―end-to-end‖ and ―best-of-breed‖ approaches are not mutually exclusive. Some of the
larger ERP companies are acquiring smaller players to fill the gaps in their ―end-to-end‖
solutions, whereas others focus on developing interfaces at the front and back-end of their
ERP offerings.

V. ERP and E-commerce:
E-Commerce has long moved from marketing trend to a proven method of increasing
commerce and sales by allowing direct marketing and giving consumers the freedom of
choice. This is a two fold phenomenon which helps our clients integrate into their existing
ERP system with a complete E-Commerce facility. The first channel built allows the business
to communicate with the customers (B2C) and the second channel allows suppliers and
partners to communicate with the organization (B2B). This allows clients to streamline
Customer interaction while maintaining accurate records of their interaction for analyses and
use in marketing strategies.
VI. ERP Vendors:

IMPLEMENTATION IN Visakhapatnam Steel Plant
The thinking process of ERP implementation in VIZAG STEEL started during
2003-04 after observing the successful implementation in one of the Indian steel
making companies. Various approaches have been adopted initially for implementing
ERP. However, a systematic and globally defined process for implementation of ERP
in VIZAG steel was adopted during 2006-07 and project is named as Project “UKKU
Sankalp” with the following objectives:
 Create enabling culture for system based working
 Seamless integration of all business functions of RINL
 VISIBILITY OF appropriate information to all stake holders
 Enable faster decision making through electronic approval system
 Improve RINL’s ability to conduct E-business with its vendors & customers.
 Provide Employee Self Service to access individual specific HR information.
The process adopted for implementation of ERP is shown in fig.5. In order to reduce
the lead time of implementation of ERP in Vizag steel, some innovative steps have
been taken compared to other public sector companies. An exclusive team is formed
to expedite the ordering and implementation process. An exclusive end-to-end
consultant has been appointed to help RINL from the beginning till the end. Approach
for ordering of ERP product, Hardware, Network requirements and Implementation
Partner. Single point responsibility of 99.9% reliability has been fixed with the
Implementation Partner as IP is the leader of the consortium. Also, adopted a
consortium approach for ordering of ERP product, Hardware, Network requirements
and Implementation Partner. Single point responsibility of 99.9% reliability has been
fixed with the Implementation Partner as IP is the leader of the consortium.
Phase-1:to be implemented in 9months from the date of ordering covering the areas
Procurement &Inventory, Sales and Marketing, Finance, Costing, Production, Planning

Optimizer, Quality management, Human Resource, Projects, Self-service HR for limited
employees, Customer Portal for limited Customers, Vendor Portal for Limited Vendors
Phase-2:To be implemented in 6 months after go live of phase-1 covering the areas
of Payroll, Customer and Vendor Portal for remaining Customers and Vendors respectively,
advanced HR processes like competency management, succession management
Phase-3: To be planned and ordered after implementation of Phase-2 covering the
areas of Maintenance and Manufacturing Execution System (MES).
I. Software:
ABAP (Advanced Business Application Programming)
ABAP originally AllgemeinerBerichts-Aufbereitungs-Prozessor, German for "general
report creation processor", pronounced as 'ah-bop', is a high-level programming language
created by the German software company SAP. It is currently positioned, alongside the more
recently introduced Java, as the language for programming the SAP Application Server, part
of its Net Weaver platform for building business applications. The syntax of ABAP is
somewhat similar to COBOL.
ABAP is one of the many application-specific fourth-generation languages (4GLs) first
developed in the 1980s. It was originally the report language for SAP R/2, a platform that
enabled large corporations to build mainframe business applications for materials
management and financial and management accounting.
ABAP used to be an abbreviation of AllgemeinerBerichts-Aufbereitungs-Prozessor, the
German meaning of "generic report preparation processor‖, but was later renamed to
Advanced Business Application Programming. ABAP was one of the first languages to
include the concept of Logical Databases (L.D.Bs), which provides a high level of abstraction
from the basic database level(s).
The ABAP programming language was originally used by developers to develop the SAP R/3
platform. It was also intended to be used by SAP customers to enhance SAP applications –
customers can develop custom reports and interfaces with ABAP programming. The
language is fairly easy to learn for programmers but it is not a tool for direct use by non-
programmers. Knowledge of relational database design and preferably also of object-oriented
concepts is necessary to create ABAP programs.
ABAP remains the language for creating programs for the client-server R/3 system, which
SAP first released in 1992. As computer hardware evolved through the 1990s, more and more
of SAP's applications and systems were written in ABAP. By 2001, all but the most basic
functions were written in ABAP. In 1999, SAP released an object-oriented extension to
ABAP called ABAP Objects, along with R/3 release 4.6.
ABAP PLATFORM:
All ABAP programs reside inside the SAP database. They are not stored in separate external
files like Java or C++ programs. In the database all ABAP code exists in two forms: source
code, which can be viewed and edited with the ABAP Workbench tools, and generated code,
a binary representation somewhat comparable with Java byte code. ABAP programs execute

under the control of the runtime system, which is part of the SAP kernel. The runtime system
is responsible for processing ABAP statements, controlling the flow logic of screens and
responding to events (such as a user clicking on a screen button); in this respect it can be seen
as a Virtual Machine comparable with the Java VM. A key component of the ABAP runtime
system is the Database Interface, which turns database-independent ABAP statements ("Open
SQL") into statements understood by the underlying DBMS ("Native SQL"). The database
interface handles all the communication with the relational database on behalf of ABAP
programs; it also contains extra features such as buffering of tables and frequently accessed
data in the local memory of the application server.
SAP BASIS: (R/3)
The ABAP language environment, including the syntax checking, code generation and
runtime system, is part of the SAP Basis component. SAP Basis is the technological platform
that supports the entire range of SAP applications, now typically implemented in the
framework of the SAP Web Application Server. In that sense SAP Basis can be seen as the
virtual machine on which SAP applications run. Like any operating system, SAP Basis
contains both low-level services (for example memory management, database communication
or servicing Web requests) and high-level tools for end users and administrators. These tools
can be executables ("SAP kernel") running directly on the underlying operating system,
transactions developed in ABAP, or Web-based interfaces.
SAP Basis also provides a layer of abstraction between the business applications and the
operating system and database. This ensures that applications do not depend directly upon a
specific server or database platform and can easily be ported from one platform to another.
SAP Basis currently runs on UNIX (AIX, HP-UX, Solaris, Linux), Microsoft Windows,
i5/OS on IBM System i (formerly iSeries, AS/400) and z/OS on IBM System z (formerly
zSeries, S/390). Supported databases are IBM DB2, Informix, MaxDB, Oracle and Microsoft
SQL Server (support for Informix was discontinued in SAP Basis release 7.00).
ABAP WORKBENCH
The ABAP Workbench contains different tools for editing programs. The most important of
these are (transaction codes are shown in parentheses):

 ABAP Editor for writing and editing reports, module pools, includes and subroutine
pools (SE38)
 ABAP Dictionary for processing database table definitions and retrieving global types
(SE11)
 Menu Painter for designing the user interface (menu bar, standard toolbar, application
toolbar, function key assignment) (SE41)
 Screen Painter for designing screens and flow logic (SE51)
 Function Builder for function modules (SE37)
 Class Builder for ABAP Objects classes and interfaces (SE24)
The ABAP Workbench (transaction SE80) provides a single integrated interface into these
various tools.
Sample ABAP EDITOR SCREEN

Sample Program format of ABAP:
III. HARDWARE
There are two sources of power which is supplied to this industry they are
 COAL BASED THERMAL POWER PLANT
 APSEB (AP STATE ELECTRICITY BOARD).
COAL BASED THERMAL POWER PLANT:
In COAL BASED THERMAL POWER PLANT the chemical energy stored in fossil fuels
such as coal and oxygen of the air is converted successively into thermal energy, mechanical
energy and, finally, electrical energy for continuous use and distribution across a wide
geographic area.
Each COAL BASED THERMAL POWER PLANT is a highly complex, custom-designed
system. Construction costs as of 2004, run to US $1,300 per kilowatt, or $650 million for a
500 MWE unit [citation needed]. Multiple generating units may be built at a single site for
more efficient use of land, natural resources and labour.
Most thermal power stations in the world use fossil fuel, outnumbering nuclear, geothermal,
biomass, or solar thermal plants.

THE ENERGY GENERATED BY THIS POWER PLANT IS CONTROLLED AND
DISTRIBUTED TO VARIOUS DEPARTMENTS USING ALUMINIUM CABLES,
CABLE ALLEY, BUSBAR CHAMBER.
THE MAIN HARDWARE USED IN ERP IS THE SERVERS AND THE AIR
CONDITIONERS WHICH ARE USED TO COOL THE SERVERS.
THERE ARE 2 AIR CONDITIONS USED ALTERNATLY ONE AT A TIME TO COOL
THE SERVERS WHICH ARE OF A CAPACITY OF 1 TONS EACH.THEY WORK FOR 6
HOURS OF TIME PERIOD AFTER WHICH OTHER AC TAKES ONER THE JOB
WHILE THIS AC IS IN REST.
THE VARIOUS SERVERS USED ARE:
Application server: An application server is a software framework that provides an
environment where applications can run, no matter what the applications are or what they do.
It is dedicated to the efficient execution of procedures (programs, routines, scripts) for
supporting the construction of applications.
The term was originally used when discussing early client–server systems to differentiate
servers that run SQL services and middleware servers from file servers.
Later, the term took on the meaning of Web applications, but has since evolved further into
more of a comprehensive service layer. An application server acts as a set of components
accessible to the software developer through an API defined by the platform itself. For Web
applications, these components are usually performed in the same machine where the Web
server is running, and their main job is to support the construction of dynamic pages.
However, present-day application servers target much more than just Web pages generation,
they implement services like clustering, fail-over and load-balancing, so developers can be
focused just on implementing the business logic.
APPLICATION SERVER: Normally the term refers to Java application servers. When this is
the case, the application server behaves like an extended virtual machine for the running
applications, handling transparently connections to the database at one side, and connections
to the Web client at the other. IN VSP CURRENTLY THERE ARE THREE APPLICATION
SERVERS THAT ARE BEING USED WHICH ARE APPLICATION SERVER-1,
APPLICATION SERVER-2 and APPLICATION SERVER-3 RESPECTIVELY.

DATABASE SERVER: A database server is a computer program that provides database
services to other computer programs or computers, as defined by the client–server model.
The term may also refer to a computer dedicated to running such a program. Database
management systems frequently provide database server functionality, and some DBMSs
(e.g., My SQL) rely exclusively on the client–server model for database access.
Fig .Database Server
Such a server is accessed either through a "front end" running on the user’s computer which
displays requested data or the "back end" which runs on the server and handles tasks such as
data analysis and storage.
In a master-slave model, database master servers are central and primary locations of data
while database slave servers are synchronized backups of the master acting as proxies.
Some examples of Database servers are Oracle, DB2, Informix, Ingres, and SQL Server.
Every server uses its own query logic and structure. The SQL query language is more or less
the same in all the database servers’ .There are 3 database servers present.

VSP USES 2 DATABASE SERVERS TO HANDLE DATABASE SERVICES AND TO
PROVIDE DATABASE ACCESS TO ITS EMPLOYERS WHENEVER NECESSARY.
STORAGE AREA NETWORK (SAN): A storage area network (SAN) is a dedicated storage
network that provides access to consolidated, block level storage. SANs primarily are used to
make storage devices (such as disk arrays, tape libraries, and optical jukeboxes) accessible to
servers so that the devices appear as locally attached to the operating system. A SAN
typically has its own network of storage devices that are generally not accessible through the
regular network by regular devices. The cost and complexity of SANs dropped in the early
2000s, allowing wider adoption across both enterprise and small to medium sized business
environments.
Fig: Storage Area Network
A SAN alone does not provide the "file" abstraction, only block-level operations. However,
file systems built on top of SANs do provide this abstraction, and are known as SAN file
systems or shared disk file systems.
VSP USES THE SAN (STORAGE AREANETWORK) TO PROVIDE MEMORYSPACE FOR
STORING DATAOF ITS EMPLOYERS, CUSTOMERS, AND MATERIALS ETC.
Blade Servers: Deliver a scalable and flexible architecture for current and future data center
needs while helping to reduce the total cost of ownership. A blade server is a stripped down
server computer with a modular design optimized to minimize the use of physical space and
energy. Whereas a standard rack-mount server can function with (at least) a power cord and
network cable, blade servers have many components removed to save space, minimize power
consumption and other considerations, while still having all the functional components to be
considered a computer. A blade enclosure, which can hold multiple blade servers, provides
services such as power, cooling, networking, various interconnects and management.
Together, blades and the blade enclosure form the blade system. (Different blade providers
have differing principles regarding what to include in the blade itself, and in the blade system
altogether).

Fig: Blade Server
Rack-Mount Servers: Address fluctuating workload challenges through a varying balance of
processing, memory, I/O, and internal storage resources.
Fig: RACK-MOUNT SERVER
“VSP USES THESE BLADE SERVERS AND RACK MOUNT SERVERS TO
DELIVER A SCALABLE AND FLEXIBLE ARCHITECTURE FOR CURRENT AND
FUTURE DATA CENTRE NEEDS WHILE HELPING TO REDUCE THE TOTAL
COST‖.
Quorum Server: A quorum server can be used in clusters of any size. The quorum server is
an alternate form of cluster lock that uses a server program running on a separate system for
tie-breaking rather than a lock disk. Should two equal sized groups of nodes (exactly 50% of
the cluster in each group) become separated from each other, the quorum server allows one

group to achieve quorum and form the cluster, while the other group is denied quorum and
cannot start a cluster. The quorum server process runs on a machine outside of the cluster for
which it is providing quorum services. The quorum server listens to connection requests from
the Service guard nodes on a known port. The server maintains a special area in memory for
each cluster, and when a node obtains the cluster lock, this area is marked so that other nodes
will recognize the lock as ―taken.‖ The cluster will maintain this mark during an off-on power
cycle of the quorum server. The operation of the quorum server is shown in Figure. When
there is a loss of communication between node 1 and node 2, the quorum server chooses one
node (in this example, node 2) to continue running in the cluster while other node halts.
BACKUP SERVER: A backup server is a computer in a network designed to store copies of
files from other servers or users' machines. It is generally has a very large disk. In case of
something wrong such as files of users being lost, the files in the backup server can be loaded
back to the original machine the software or hardware system that copies or "shadows" the
contents of a server, providing redundancy.
BACK-UP SERVERTHE OPERATING SYSTEM WHICH IS USED TO MANAGE ALL
THESE COMPONENTS IS HP UNIX 11.

V. Network
A computer network, often simply referred to as a network, is a collection of computers and
devices interconnected by communications channels that facilitate communications and
allows sharing of resources and information among interconnected devices.
The three types of networks are: the Internet, the intranet, and the extranet. Examples of
different network methods are:
 Local area network (LAN), which is usually a small network constrained to a small
geographic area. An example of a LAN would be a computer network within a building.
 Metropolitan area network (MAN), which is used for medium size area. Examples for
a city or a state.
 Wide area network (WAN) that is usually a larger network that covers a large
geographic area.
 Wireless LANs and WANs (WLAN & WWAN) are the wireless equivalent of the
LAN and WAN.
Networks may be classified according to a wide variety of characteristics such as topology,
connection method and scale.
All networks are interconnected to allow communication with a variety of different kinds of
media, including twisted-pair copper wire cable, coaxial cable, optical fibre, power lines and
various wireless technologies. The devices can be separated by a few meters (e.g.
via Bluetooth) or nearly unlimited distances (e.g. via the interconnections of
the Internet).Networking, routers, routing protocols, and networking over the
public Internet have their specifications defined in documents called RFCs.
PURPOSE
Computer networks can be used for a variety of purposes:
Facilitating communications
Using a network, people can communicate efficiently and easily via email, instant messaging,
chat rooms, telephone, video telephone calls, and video conferencing.
Sharing hardware
In a networked environment, each computer on a network may access and use hardware
resources on the network, such as printing a document on a shared network printer.
Sharing files, data, and information
In a network environment, authorized user may access data and information stored on other
computers on the network. The capability of providing access to data and information on
shared storage devices is an important feature of many networks.
Sharing software
Users connected to a network may run application programs on remote computers.
NETWORK CLASSIFICATIONS
Networks can be classified and named by their physical extent, and intended purpose.
Common types of computer networks are outlined below.

Local area network:
A local area network (LAN) is a network that connects computers and devices in a limited
geographical area such as home, school, computer laboratory, office building, or closely
positioned group of buildings. Each computer or device on the network is a node. Current
wired LANs are most likely to be based on Ethernet technology, although new standards
likeITU-T Ghn also provide a way to create a wired LAN using existing home wires (coaxial
cables, phone lines and power lines).
All interconnected devices must understand the network layer (layer 3), because they are
handling multiple subnets (the different colors). Those inside the library, which have only
10/100 Mbit/s Ethernet connections to the user device and a Gigabit Ethernet connection to
the central router, could be called "layer 3 switches" because they only have Ethernet
interfaces and must understand IP. It would be more correct to call them access routers,
where the router at the top is a distribution router that connects to the Internet and academic
networks' customer access routers.
The defining characteristics of LANs, in contrast to WANs (Wide Area Networks), include
their higher data transfer rates, smaller geographic range, and no need for leased
telecommunication lines. Current Ethernet or other IEEE 802.3 LAN technologies operate at
speeds up to 10 Gbit/s. This is the data transfer rate. IEEE has projects investigating the
standardization of 40 and 100 Gbit/s.
Personal area network:
A personal area network (PAN) is a computer network used for communication among
computer and different information technological devices close to one person. Some
examples of devices that are used in a PAN are personal computers, printers, fax machines,
telephones, PDAs, scanners, and even video game consoles. A PAN may include wired and
wireless devices. The reach of a PAN typically extends to 10 meters.[10]
A wired PAN is
usually constructed with USB and Fire wire connections while technologies such as
Bluetooth and infrared communication typically form a wireless PAN.
Home area network:
A home area network (HAN) is a residential LAN which is used for communication between
digital devices typically deployed in the home, usually a small number of personal computers
and accessories, such as printers and mobile computing devices. An important function is the
sharing of Internet access, often a broadband service through a CATV or Digital Subscriber
Line (DSL) provider. It can also be referred to as an office area network (OAN).
Wide area network:
A wide area network (WAN) is a computer network that covers a large geographic area such
as a city, country, or spans even intercontinental distances, using a communications channel
that combines many types of media such as telephone lines, cables, and air waves. A WAN
often uses transmission facilities provided by common carriers, such as telephone companies.
WAN technologies generally function at the lower three layers of the OSI reference model:
the physical layer, the data link layer, and the network layer.
Metropolitan area network:
A Metropolitan area network (MAN) is a large computer network that usually spans a city or
a large campus.

Sample EPN made of Frame relay WAN connections and dialup remote access.
Sample VPN used to interconnect 3 offices and remote users
Enterprise private network
An enterprise private network is a network build by an enterprise to interconnect various
company sites, e.g., production sites, head offices, remote offices, shops, in order to share
computer resources.
Virtual private network
A virtual private network (VPN) is a computer network in which some of the links between
nodes are carried by open connections or virtual circuits in some larger network (e.g., the
Internet) instead of by physical wires. The data link layer protocols of the virtual network are
said to be tunneled through the larger network when this is the case. One common application
is secure communications through the public Internet, but a VPN need not have explicit
security features, such as authentication or content encryption. VPNs, for example, can be

used to separate the traffic of different user communities over an underlying network with
strong security features.
VPN may have best-effort performance, or may have a defined service level agreement
(SLA) between the VPN customer and the VPN service provider. Generally, a VPN has a
topology more complex than point-to-point.
Intranets and extranets
Intranets and extranets are parts or extensions of a computer network, usually a local area
network.
An intranet is a set of networks, using the Internet Protocol and IP-based tools such as web
browsers and file transfer an application that is under the control of a single administrative
entity. That administrative entity closes the intranet to all but specific, authorized users. Most
commonly, an intranet is the internal network of an organization. A large intranet will
typically have at least one web server to provide users with organizational information.
An extranet is a network that is limited in scope to a single organization or entity and also has
limited connections to the networks of one or more other usually, but not necessarily, trusted
organizations or entities—a company's customers may be given access to some part of its
intranet—while at the same time the customers may not be considered trusted from a security
standpoint. Technically, an extranet may also be categorized as a CAN, MAN, WAN, or
other type of network, although an extranet cannot consist of a single LAN; it must have at
least one connection with an external network.
BASIC HARDWARE COMPONENTS
All networks are made up of basic hardware building blocks to interconnect network nodes,
such as Network Interface Cards (NICs), Bridges, Hubs, Switches, and Routers. In addition,
some method of connecting these building blocks is required, usually in the form of galvanic
cable (most commonly Category 5 cable). Less common are microwave links (as in IEEE
802.12) or optical cable ("optical fiber").
Network interface cards
A network card, network adapter, or NIC (network interface card) is a piece of computer
hardware designed to allow computers to communicate over a computer network. It provides
physical access to a networking medium and often provides a low-level addressing system
through the use of MAC addresses.
Each network interface card has its unique id. This is written on a chip which is mounted on
the card.
Repeaters
A repeater is an electronic device that receives a signal, cleans it of unnecessary noise,
regenerates it, and retransmits it at a higher power level, or to the other side of an obstruction,
so that the signal can cover longer distances without degradation. In most twisted pair
Ethernet configurations, repeaters are required for cable that runs longer than 100 meters. A
repeater with multiple ports is known as a hub. Repeaters work on the Physical Layer of the
OSI model. Repeaters require a small amount of time to regenerate the signal. This can cause
a propagation delay which can affect network communication when there are several
repeaters in a row. Many network architectures limit the number of repeaters that can be used
in a row (e.g. Ethernet's 5-4-3 rule).

Bridges
A network bridge connects multiple network segments at the data link layer (layer 2) of
the OSI model. Bridges broadcast to all ports except the port on which the broadcast was
received. However, bridges do not promiscuously copy traffic to all ports, as hubs do, but
learn which MAC addresses are reachable through specific ports. Once the bridge associates
a port and an address, it will send traffic for that address to that port only.
Bridges learn the association of ports and addresses by examining the source address of
frames that it sees on various ports. Once a frame arrives through a port, its source address is
stored and the bridge assumes that MAC address is associated with that port. The first time
that a previously unknown destination address is seen, the bridge will forward the frame to all
ports other than the one on which the frame arrived.
Bridges come in three basic types:
 Local bridges: Directly connect local area networks (LANs)
 Remote bridges: Can be used to create a wide area network (WAN) link between
LANs. Remote bridges, where the connecting link is slower than the end networks, largely
have been replaced with routers.
 Wireless bridges: Can be used to join LANs or connect remote stations to LANs.
Switches
A network switch is a device that forwards and filters OSI layer 2 datagram’s (chunks of data
communication) between ports (connected cables) based on the MAC addresses in the
packets. A switch is distinct from a hub in that it only forwards the frames to the ports
involved in the communication rather than all ports connected. A switch breaks the collision
domain but represents itself as a broadcast domain. Switches make forwarding decisions of
frames on the basis of MAC addresses. A switch normally has numerous ports, facilitating a
star topology for devices, and cascading additional switches. Some switches are capable of
routing based on Layer 3 addressing or additional logical levels; these are called multi-layer
switches. The term switch is used loosely in marketing to encompass devices including
routers and bridges, as well as devices that may distribute traffic on load or by application
content (e.g., a Web URL identifier).
Routers
A router is an internetworking device that forwards packets between networks by processing
information found in the datagram or packet (Internet protocol information from (Layer 3 of
the OSI Model). In many situations, this information is processed in conjunction with the
routing table (also known as forwarding table). Routers use routing tables to determine what
interface to forward packets (this can include the "null" also known as the "black hole"
interface because data can go into it, however, no further processing is done for said data).
Firewalls
Firewalls are the most important aspect of a network with respect to security. A fire walled
system does not need every interaction or data transfer monitored by a human, as automated
processes can be set up to assist in rejecting access requests from unsafe sources, and
allowing actions from recognized ones. The vital role firewalls play in network security
grows in parallel with the constant increase in 'cyber' attacks for the purpose of
stealing/corrupting data, planting viruses, etc.

 A network is used to provide some kind of service as follows:
 Company/ enterprise may need a great Web site, or email service or a simple
file or print server.
 The hardware needed for creating a network switches, hubs, routers, Modems
and links (phone lines, network cables, frame relay, DSL, cable MODEM, ISDN).
 Servers and Clients must speak the same network protocols to do so. Servers
and clients must agree upon how to transmit information and the protocols which can be used
are:
 Internet and Intranets - TCP/IP (Transmission Control
Protocol/ Internet Protocol)
 NetBEUI (Network Basic Input/ Output System Extended
User Interface) – designed by MS/IBM for small networks
 Primary concerns while deploying any Network?
 Performance: A measurement of some output or behaviour in engineering or
computing
 Scalability: it is the ability of a system, network, or process, to handle
growing amounts of work in a graceful manner or its ability to be enlarged to accommodate
that growth
 Availability: it shows the amount or number of useful components available
readily in a machine. For example, a unit that is capable of being used 100 hours per week
(168 hours) would have an availability of 100/168.
NETWORK ARCHITECTURE
Network architecture is the design of a communications network. It is a framework for the
specification of a network's physical components and their functional organization and
configuration, its operational principles and procedures, as well as data formats used in its
operation.
In telecommunication, the specification of a network architecture may also include a detailed
description of products and services delivered via a communications network, as well as
detailed rate and billing structures under which services are compensated.
The network architecture of the Internet is predominantly expressed by its use of the Internet
Protocol Suite, rather than a specific model for interconnecting networks or nodes in the
network, or the usage of specific types of hardware links.
THE NETWORK INFRASTUCTURE OF VSP IS
Visakhapatnam Steel Plant (VSP) presently is having IBM 3090 catering the need of various
computer applications running on it, for the entire plant. This Mainframe computer system is
associated with its SNA network for catering the needs of mainframe connection to various
units of plant. As this system is old and outdated the entire Mainframe system is being
replaced with new computer system of open standard (i.e. client server system).

The Client Server Technology in VSP

COMPARISON
Present Network New Network
--------------------------- -------------------------------
Types of terminals
AT-ASCII Terminal PC terminals only
AP-ASCII Printer Minimum configuration
TE-IBM Terminal Pentium processor
IP-IBM Printer 64MB RAMS
PC-PC terminal 4-40GB Hard disk
Speed - 9.6Kbps Speed - 10Mbps
User Interface - CUI User Interface - GUI
No. of connection - No. of connection -
434(working) 434(working) 222(free)
Features of New Computer System and Datacom Network
 New network is fibre optic and it will be faster than existing network by hundred
times at the user end.
 All user nodes will be Pentium PCs
 All the existing applications will be converted from character based to graphical based
user interface, with Oracle-8i at the backend and forms 6i/Reports 6i as the front end.
 All the screens will be more users friendly and information will be available at the
click of the mouse.
 New IBM RS/6000 servers were already installed on 1st
Aug 2001.
 The central switch will be supported by 100/100 Mbps zoned switches and in turns
will be supported by 10/100 Mbps zoned distribution switches, catering to the user nodes.

NETWORK ARCHITECTURE OF VSP
 Common Network Infrastructure
 Intelligent Network Services
 Network Solutions (Services to enterprise)

THE CAMPUS NETWORK OF VSP IS DESIGNED AS SHOWN BELOW
IV. Goals Achieved:
Present Status:
After business process mapping, specification was prepared with the help of consultants and
published for tendering process. Qualified bids are obtained from consortium leaders M/s
Infosys, M/s WIPRO, M/S Satyam Computers, M/s HCL, M/s TCS and M/s IBM. Except
M/s IBM all others qualified for final assessment.
Finally, M/s WIPRO won the award and implementation has started in 2009 November.
Presently, the configuration and customizing part is completed. Testing is being carried out
by the core team of VSP which is specially formed as a cross functional team for the purpose
of implementation, testing and commissioning (Go-Live phase).
The following are the covered Functional Areas:
1. Marketing including Branches
2. Procurement of Goods & Services and Inventory Management
3. Production Planning
4. Quality Management
5. Out bound and Inbound Logistics
6. Finance & Accounts Management including receivables, payables, Cash management,
General ledger & assets
7. Human Resource Management
8. Project Management

There is a particular methodology that ERP prefers when it tries to change an
organization. ERP systems experienced rapid growth in the 1990s because the year 2000 and
the Euro disrupted legacy systems. Many companies took this opportunity to replace such
systems with ERP. ‖ERP II" was coined in the early 2000s. It describes web–based software
that allows both employees and partners (such as suppliers and customers) real–time access
to the systems. "Enterprise application suite" is an alternate name for such systems.
ERP ASAP METHODOLOGY:
• AS-IS documentation
• TO-BE documentation
• Business Blue Print
• Functional Specifications
• Development
• Testing – UT & IT
• Master Data Preparation
• Cutover Strategy & Cutover data preparation
• Roles & Authorizations
• Transport to Production Environment
• Go-Live
Implemented Features of ERP:
• Three Data Centers
• 99.9 % uptime / availability
• Active -Active Configuration
• DR Site at New Delhi
• VPN connectivity to all outstation offices
• EMS (HP open view products) implemented
Work Done:
 Appointed M/s PwC for end-to-end Consultancy
 Core Team Constituted
 Steering Committee & Project Management Committee constituted
 Business Teams identified function wise
 As-Is Processes Studied, Mapped and validated
 Opportunities for Improvements identified (To-Be)
 Visited few Organizations implementing ERP
 Functional Requirement Specification made
 Draft Tender Document Prepared and placed in the web for comments.

 Tender evaluation (PQC, Technical, Commercial)
 Order placed on M/s Wipro
 As-Is & To-Be process documentation completed.
 Business Blue Print document prepared. Identified developments required &
Functional Specs prepared.
 Hardware installation completed.
 Unit Testing Completed.
 Integrated Testing by Wipro completed. Integrated testing by VSP to start.
 Master data prepared and uploaded.
 Roles & Authorization – under progress
 Cutover strategy to be finalized & cutover data to be prepared.
 User Training to Start from First week of April, 2012
 Go-Live – Planned during May/June, 2012
V. Way Forward:
 Integrated Testing
 Preparation of Cut-over data & Loading
 User authorizations & Roles
 User Training
 Go-Live
 Post Go-Live support
 Stabilization Acceptance with in 6 months
Support Required for:
• Master data preparation
• Cut-over data preparation.
• Roles & Authorizations.
• User Training.
• Go-Live.
• Post Go-Live.
• Stabilization Acceptance.

References:
 ERP: Overview by E.R.P Dept. (Vizag Steel)
 ERP: Outlook by Creative Chaos Pvt. Ltd.
 Enterprise Resource Planning: Global
Opportunities & Challenges by Liaquat Hossain, Jon
David Patrick and M.A. Rashid
 Enterprise resource planning :An integrative review
By E.M. Shehab, M.W. Sharp, L. Supramaniam and
T.A. Spedding Medway School of Engineering,
University of Greenwich, Chatham Maritime, UK
 Enterprise Resource Planning Systems:
The Integrated Approach by Sergey V. Zykov,
ITERANET Co. Ltd., ITERA International Group of
Companies.

The study of_erp_in_vizag-libre

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