Master of Business Administration MBA Semester 3 Name: Saurabh Singh Roll No.

.: 520964875 Subject: Enterprise Resource Planning Subject code: OM0011 Operation Management

Assignment Set-1 Q1. ERP system can prove to be effective tool in unorganized sectors and in small scale industries. Justify with examples. Ans. An Enterprise Resource Planning (ERP) system is an integrated computer-based application used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources. 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. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise-wide system environment.[1] An ERP system can either reside on a centralized server or be distributed across modular hardware and software units that provide "services" and communicate on a local area network. The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex and expensive computer systems in areas which will not use their full capacity.[2] Effective tool in unorganized sectors: Unorganized retailers in the vicinity of organized retailers experienced a decline in their volume of business and profit in the initial years after the entry of large organized retailers. The adverse impact on sales and profit weakens over time. vii There was no evidence of a decline in overall employment in the unorganized sector as a result of the entry of organized retailers. There is some decline in employment in the North and West regions which, however, also weakens over time. The rate of closure of unorganized retail shops in gross terms is found to be 4.2 per cent per annum which is much lower than the international rate of closure of small businesses. The rate of closure on account of competition from organized retail is lower still at 1.7 per cent per annum. There is competitive response from traditional retailers through improved business practices and technology upgradation. A majority of unorganized retailers is keen to stay in the business and compete, while also wanting the next generation to continue likewise. Small retailers have been extending more credit to attract and retain customers. However, only 12 per cent of unorganized retailers have access to institutional credit and 37 per cent felt the need for better access to commercial bank credit. Most unorganized retailers are committed to remaining independent and barely 10 per cent preferred to become franchisees of organized retailers. Impact on Consumers Consumers have definitely gained from organized retail on multiple counts. Overall consumer spending has increased with the entry of the organized retail. While all income groups saved through organized retail purchases, the survey revealed that lower income consumers saved more. Thus, organized retail is relatively more beneficial to the less well-off consumers. Proximity is a major comparative advantage of unorganized outlets.

 Unorganized retailers have significant competitive strengths that include consumer goodwill, credit sales, amenability to bargaining, ability to sell loose items, convenient timings, and home delivery. Impact on Intermediaries The study did not find any evidence so far of adverse impact of organized retail on intermediaries. There is, however, some adverse impact on turnover and profit of intermediaries dealing in products such as, fruit, vegetables, and apparel. Over two-thirds of the intermediaries plan to expand their businesses in response to increased business opportunities opened by the expansion of retail. Only 22 per cent do not want the next generation to enter the same business. Impact on Farmers Farmers benefit significantly from the option of direct sales to organized retailers. Average price realization for cauliflower farmers selling directly to organized retail is about 25 per cent higher than their proceeds from sale to regulated government mandi. viii Profit realization for farmers selling directly to organized retailers is about 60 per cent higher than that received from selling in the mandi The difference is even larger when the amount charged by the commission agent (usually 10 per cent of sale price) in the mandi is taken into account. Impact on Manufacturers Large manufacturers have started feeling the competitive impact of organized retail through price and payment pressures. Manufacturers have responded through building and reinforcing their brand strength, increasing their own retail presence, adopting small retailers, and setting up dedicated teams to deal with modern retailers. Entry of organized retail is transforming the logistics industry. This will create significant positive externalities across the economy. Small manufacturers did not report any significant impact of organized retail. Erp an effective tool in small scale industries:Axis Softech proudly announces the new version of ERP for Small Industries of India and particularly Delhi and NCR. This ERP has all possible modules for all business areas to the optimum value to integrate. Axis Softech is already enabled so many companies to automate the manufacturing sector and the other segment, its services and decisions. The core of the intention of the introduction of the new version of the ERP is to facilitate the customers covered with a low-cost product with excellent properties and widely modules. The basic idea of ERP Software, ERP application tailor-made ERP for ERP users with cheap offers at the same time with the best featured ERP and wide range of modules. Axis Softech is one of the best selling companies in the ERP market for the past seven years and founded on the many catering market demands of the industry. Axis uses the best technology currently available tools on the market. The tools are mainly ASP. NET and SQL. These tools have an edge in order to promote a product by the users in different ways. In particular, these language tools a crucial set of security for the customer in the form of data theft and other related thefts. The language is completely Web-based support from nearly all operating system platforms in every way possible. Not only this, but Axis Softech ERP allows users to access his / her account online, by every possible situation, with the help of the Internet. All you have to do is in the by using a unique ID / password and access to the rights of the super-administrator of the company as the necessary measures to carry out simultaneously and use characters from the application directly after login. This ERP is not only a general ERP, but a revolution in the field of ERP. The company would never get over with the facilities and features of Axis Softech by

this means provided. This company offers the best ERP solutions for Small Scale Industries. The company uses the best tools are presented in the market. Axis Softech has been able to for an online demonstration of the interested buyers and interested parties arranged to send the demo request via the contact details. Conclusion: At the present time the demand for ERP is very fast. Axis Softech is a software company with the best ERP solutions for small industries offers. In addition, the best technology currently uses tools. Q2. The Kanban process of production is sometimes incorrectly described as simple juist-in-time management technique. Comment. Ans. KANBAN PROCESS- MORE THAN INTERNAL 'JUST IN TIME PRODUCTION' TECHNIQUES:Most Japanese manufacturing companies view the making of a product as continuous-from design, manufacture, and distribution to sales and customer service. For many Japanese companies the heart of this process is the Kanban, a Japanese term for "visual record", which directly or indirectly drives much of the manufacturing organization. It was originally developed at Toyota in the 1950s as a way of managing material flow on the assembly line (Perelman, 1994: 85). Over the past three decades the Kanban process, which Bernstein (1984: 48) identifies as "a highly efficient and effective factory production system", has developed into an optimum manufacturing environment leading to global competitiveness. The Japanese Kanban process of production is sometimes incorrectly described as a simple just-in-time management technique, a concept which attempts to maintain minimum inventory. The Japanese Kanban process involves more than fine tuning production and supplier scheduling systems, where inventories are minimized by supplying these when needed in production and work in progress in closely monitored. It also encourages; Industrial re-engineering, such as a 'module and cellular production' system, and, Japanese human resources management, where team members are responsible for specific work elements and employees are encouraged to effectively participate in continuously improving Kanban processes within the Kaizen concept (Stainer, 1995: 11). THE KANBAN The Japanese refer to Kanban as a simple parts-movement system that depends on cards and boxes/containers to take parts from one work station to another on a production line. Kanban stands for Kan- card, Ban- signal. The essence of the Kanban concept is that a supplier or the warehouse should only deliver components to the production line as and when they are needed, so that there is no storage in the production area. Within this system, workstations located along production lines only produce/deliver desired components when they receive a card and an empty container, indicating that more parts will be needed in production. In case of line interruptions, each work-station will only produce enough components to fill the container and then stop (Roos, 1992: 112). In addition, Kanban limits the amount of inventory in the process by acting as an authorization to produce more inventory. Since Kanban is a chain process in which orders flow from one process to another, the production or delivery of components are pulled to the production line. In contrast to the traditional forecast oriented method where parts are pushed to the line (Roos, 1992: 113). The Kanban method described here appears to be very simple. However, this "visual record" procedure is only a sub-process in the Japanese Kanban management system. Q3. How does ERP inventory module maintain inventory items? List outthe different modules under ERP inventory management. Ans. ERP Inventory module is a simple yet dominant inventory tracking module that facilitates the process of tracking and controlling the inventory and also provides the flexibility of

customisation. Earlier, paper based systems were used to process information from various departments of an organisation and it consumed time. ERP inventory management system reduces time lag and makes the entire process efficient, by maintaining the appropriate level of stock in the warehouse. It helps in maintaining the suitable level of stock in the warehouse. The activities of inventory control involve: Identifying inventory requirements Setting targets Providing techniques and options Monitoring item usages Integrating inventory balances Reporting Inventory Changes in inventory are automatically updated. This enables inventory management employees to see if an item is currently in stock. Since the database is centralised, the ERP inventory system allows flexibility in customisation and configuration with various applications from different departments of an organisation. However, the systems that deploy ERP management are dependent on networks. Features of ERP Inventory Management ERP inventory management has many features .Some of them include: Quality control based on QC Parameters Analysis which help in maintaining best possible stock level Extensive verification of stock Online status of item quantity in terms of on-hand, on hand available, reserved, ordered, to order, rejected, defective and rework-able quantities High degree of flexibility for managing complex storage needs and automatic update of warehouse ERP management uses bar codes to maintain inventory items. A bar code is a small image that has bars (lines) and spaces fixed on the store items and used as an identification mark of a particular product. This makes tracking stock much easier. Once the items are bar-coded, they get scanned and their product information is entered into the ERP inventory management system. Introducing bar code labels on stock helps companies save money as it keeps the list of stock updated. Employees can easily see when certain quantities are low and need to re-stock. Customers also benefits from this as customers can see what products are currently in stock. The main purpose and benefit that the organisation can derive from ERP management system is that the ERP system is company-wide and has a single software system, where as

organisations that do not employ ERP management will have dissimilar and diverse software applications that may not be compatible with one another. Benefits and Limitations of ERP Inventory Management ERP inventory management system has many benefits. Some of them include: Tracking of orders from the point the order is received to its release. Facilitating appropriate communication between different areas. Reducing the threat of loss of information. Providing a top down summary of the mechanism of a company. Setting up an outline of security to protect against theft from external or within a company. Replacing old and primitive paper based systems that improves efficiency. Limitations of ERP Inventory Management ERP inventory management helps an organisation in many ways. However, it also has some limitations. They are: Limited customisation Expensive Not friendly with every type of business like small organisations. Harder to fix responsibility as it is a company-wide system that connects all areas When all departments in a company are not willing to share information, maintenance of sensitive data can disturb the work flow Installing ERP Inventory System ERP Inventory systems are expensive, and are complex to install. Usually a third party contractor is hired to install the software and hardware, and these vendors who provide installation also suggest consultation and customise the system to the business needs. However, installation is a tedious task and consumes time depending on the size of the organisation and the requirements of the company. Typically, installing ERP Inventory system takes more than a few months, and larger organisations can take up to a year to install ERP Inventory system. There are many consulting vendors or firms available in the market to install ERP Inventory system; besides installing the system, they also train the employees to use the installed system. An ideal installed inventory system should always be able to have answers to the most anticipated questions such as:

 What and how much stock is available in the warehouse? What is sold and to which organisation? What are the financial issues related to price and margin? What orders that are placed, but remains undelivered? Installation of ERP Inventory systems is complex and not a simple job. However, deploying web based Inventory management ERP is simple and consumes less time for installation. Failure of ERP Inventory installation Many times, when installation of ERP software fails, ERP software vendors are held responsible. However installation failure can occur due to the following factors: Operating strategy did not suit organisation design and operation. The implementation and completion took longer than anticipated. Pre-implementation actions were not well planned. People were not well ready to learn and operate the new ERP system. Cost related issues leads to difficulties in implementing and using ERP Inventory systems. Q5. Explain the three types of CRM. Briefly explain the functionalities of CRM sub modules. Ans. Customer relationship management (CRM) is a widely-implemented strategy for managing a companys interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processesprincipally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments. Types The three types in which CRM support the relationship between a business and its customers are to:

Acquire: CRM can help a business acquire new customers through contact management, selling, and fulfillment. Enhance: web-enabled CRM combined with customer service tools offers customers service from a team of sales and service specialists, which offers customers the convenience of one-stop shopping. Retain: CRM software and databases enable a business to identify and reward its loyal customers and further develop its targeted marketing and relationship marketing initiatives.

Functionalities of CRM sub modules:-

Customer Relationship Management or CRM software supports a broad set of activities for acquiring, enhancing or retaining customers. The functionality of CRM software varies from vendor to vendor. There're a few modules common to most of packaged CRM software. Direct Marketing Module Direct marketing is a set of promotional activities in which direct contact is made with the target customer. Direct marketing software allows companies to identify target customers for particular promotional criteria, generate direct mails, analyze response from target customers. Common techniques include direct mail, telemarketing, and etc. Direct marketing module can automate and streamline many of those marketing efforts. CRM Sales Module Revenues from sales are live blood for commercial organizations. Sales module implements functions of pre-sales support, order placement, order scheduling, shipping and invoicing. Sales module is closely integrated with organizations' ecommerce websites. Many sales modules from CRM vendors offer online storefront as part of CRM system. Call Center Module A call center is a sophisticated voice operations center that provides a full range of highvolume, inbound or outbound call-handling services, typically including customer support, operator services and directory assistance. It generally refers to reservations centers, help desks, information lines or customer service centers. A call center consists of a complex telecommunication infrastructures, sophisticated computer systems and skilled service representatives organized to effectively manage the incoming and outgoing telephone calls. CRM call center module captures the vast amount of data in call center operation, prioritize call center service, and direct incoming calls to the appropriate service representatives. Help desk Module Help desk software can improve customer satisfaction and productivity by automating customer support processes. Basic features of help desk software includes requests submission, email notification, searching Knowledge Base and administration interfaces. Webbased helpdesk software allows users to search support knowledge base so that users can either find the answer online without calling a support representative or ask more specific questions when they do need to talk to a live person for support. Q6. Describe how you would go about the different phases of the ERP implementation lifecycle, if it were being done in your company. Ans. The process of ERP implementation is referred as d as "ERP Implementation Life Cycle". The following are the steps involved in completing the lifecycle. Shortlist on the basis of observation Selecting an ERP package for the company can nevertheless be compared with the process of "Selecting the right Person for the Right Job". This exercise will involve choosing few applications suitable for the company from the whole many. Assessing the chosen packages A team of Experts with specialized knowledge in their respective field will be asked to make the study on the basis of various parameters. Each expert will not only test and certify if the package is apt for the range of application in their field but also confirm the level of coordination that the software will help to achieve in working with other departments. In

simple terms they will verify if the synergy of the various departments due to the advent of ERP will lead to an increased output. A choice is to be made from ERP implementation models. Preparing for the venture This stage is aimed at defining the implementation of ERP in all measures. It will lay down the stipulations and criterias to be met. A team of officers will take care of this, who will report to the person of the highest hierarchy in the organization. Gap Analysis This stage helps the company to identify the gaps that has to be bridged, so that the companys practice becomes akin to ERP environment. This has been reported as an expensive procedure but it is inevitable. The conglomerate will decide to restructure the business or make any other alterations as suggested by GAP analysis inorder to make ERP user friendly. Click here for a detailed study on GAP analysis. A choice is to be made from ERP implementation models. Business process reengineering Changes in employee rolls, business process and technical details find place in this phase of restructuring most popularly refered as business process engineering. For more details on BPR click here. Designing the System This step requires lot of meticulous planning and deliberate action. This step helps to decide and conclude the areas where restructing have to be carried on. A choice is to be made from ERP implementation models. In-house Guidance This is regarded as a very important step in ERP implementation. The employees in the company are trained to face crisis and make minor corrections as well because the company can neither be at liberty nor afford the bounty to avail the services of an ERP vendor at all times. For more details on ERP training click here. Checking This stage observes and tests the authenticity of the use. The system is subjected to the wildest tests possible so that it ensures proper usage and justifies the costs incurred. This is seen as a test for ERP implementation. The real test At this stage the replacement takes place viz the new mechanism of operation and administration takes over the older one. preparing the employees to use ERP The employees in the organization will be taught to make use of the system in the day to day and regular basis so as to make sure that it becomes a part of the system in the organization. Post Implementation The process of implementation will find meaning only when there is regular follow up and proper instruction flow thereafter and through the lifetime of ERP. This will include all efforts and steps taken to update and attain better benefits once the system is implemented. Hence an organization has to perform ERP implementation safely and correctly.