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INTRODUCTION OF ERP

ANDITS USAGE

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E R P

In its most simplest form can be

explained as an attempt of

INTEGRATED COMPUTERISATION

OF ALL THE ACTIVITIES IN AN

ORGANISATION

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Area of Computerisation in an

Organisation

Financial Activities

Material Management and its procurement

Project Planning and Monitoring

System Maintenance

Sales and Marketing

Quality Management and assurance

Human Resource Development & Payroll

Business Intelligent Warehousing

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Financial activities

Accounts Receivable Payment Collection from Customer & Other

Sources

Account Payable Supplier Payments, Customers payments etc.

General Ledger Financial Statements

Trial balance, Balance Sheet, P & L accounts Financial Reconciliation of transactions with

Bank and other institutions

Asset Accounting

WIP, Capitalization and Depreciation

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Financial activities

Profit Center Accounting

Service-wise Profitability at SSA Level.

Cost Center Accounting & Internal Order

Cost accounting as per requirement of Cost Audit

Funds Management Budget Allotment

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Material Management and

Procurement Maintenance of Vendor Details

Vendor evaluation / Rating

Open Tender

Local Purchase through Imprest and

Advance

Invoice verification

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Material Management and

Procurement Goods Movements

Goods Receipt,

Goods issue

Transfers / Diversion,

Reservation

Project, Maintenance,

Cost center

Physical stock taking

Periodic (Monthly / Quarterly / Half yearly / Yearly)

Perpetual (As & When) Difference posting

Inventory reports and Analysis

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Material Management and

Procurement

Present Status

Inventory Management system

Other locally developed softwares

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Project System and Monitoring

System to take care of the planning, Installation

and Commissioning activities of all types of

Projects

Landlines (Indoor & Outdoor) Transmission

Mobile

IT

Civil

Electrical

External Projects

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Project System and Monitoring

Project Initiation Justification,

Project Approval & Sanction Based on the delegated Power

Project Planning Project definition

Structure Planning

Cost Planning

Budget planning Date Planning

Material Procurement Planning

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Project System and Monitoring

Project Execution

Project Release

Budget Updates

Rescheduling and Actual Dates

Material Procurement and Service Processing

Project Monitoring and Control

Project Reporting

Project Closure

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Project System and Monitoring

Present status

DotSOFT Package

Other Local packages

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System Maintenance

Maintenance of Equipment and infrastructure

Switching ( All Switches).

IT( Dot soft, LNMS, Call center, Internet, NIB)

Transmission ( Transmission Sys, MLLN , LeasedLine, MPLS) .

External ( Cable & equipment maintenance).

Civil ( Duct Maintenance, building and all civil

Works). Electrical ( All Electrical equipments)

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System Maintenance

Bill of Material in System Maintenance

Maintenance Task Lists

Maintenance Orders Maintenance History

Service Management

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System Maintenance

Present Status

DotSOFT

TWARIT

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Sales & Marketing

Marketing activities Market survey

Data analysisfor effectiveness of marketing action

Sale activity Retail Sales

ITC

Mobile Prepaid, Recharge Vouchers

Sancharnet, Webphone

Other items (as Directory, forms etc)

Bulk Sale IN Services (ITC, etc.)

Leased Circuits

Customer Projects

Institutional Sales

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QM - Scope

Vendor Development & Certification

Acceptance Testing

Inspections It has the component in

Material Management

Project Systems

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Human Resource Development

Orgnization Management Personnel Administration

Recruitment

Personnel Development Apraisals Career and Succession Plan

Training & Event Management

Time Management Travel Planning

Payroll

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Human Resource Development

Present Status

HR Package

CTMS

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Need for Software System for

BSNL

Computerise the various activities of BSNL

such as MM and Inventory

Human Resource, Pay Roll

Finance and Assets, Funds Management

Equipment Maintenance

Project Monitoring and Management

Marketing & Sales

Meet the rapid changing requirement of an

organisation

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Possible Options

In house development Development of Software Module to meet each

functional requirement

Development of Integrated Software covering all themodules

Standard Software Products

Module wise Software

Integrated Software

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In-house Development

Isolated Module Development Focus on functions

Application Developed over a period of time keeping

in the view of different Corporate Requirements Requirement of reconciliation for different software

modules

Inconsistent and Redundant Data

Continuous updation of Interfaces

Interfaced System and Not anIntegrated System

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In-house Development

Integrated Software System Long Gestation Period for Development3 to 5 years

Large Deployment Timeonly in-house team candeploy the solution

Comprehensive knowledge of the entire organisation is

required Platform Dependent

Development dependent on the limited knowledge of theDevelopment Team

Needs full fledged Centralised Development Team andDistributed Support Teams

No vision for best business practices

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Standard Software Products

Isolated software packages for

implementing different functional

requirement Requires Development of interfaces and Constant

updation with each version change

Integrated Solution for meeting all the

functional requirements the standard E R P solution

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Definition of ERP

Enterprise Is an entity where Business Activities are conducted profitably

Resource Various Resources available within an enterprise such as,

Finance, Materials, Manpower, Equipment, Facilities andinfrastructure etc.

Planning Activity to optimize the utilisation of resources

ERP attempts to integrate all departments andfunctions of a company into a single system thatcan serve all departments' needs.

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An extensive change mangement concept ensures

the acceptance and motivation of the end users

= rejection

= frustration

= slow change

= fear

= chaos

= confusion

vision skills tools action planincentives+++ ++

vision communi-cation

tools action planincentives+++ ++

vision communi-cation

skills action planincentives+++ ++

communi-cation

skills tools action planvision +++ ++

communi-cation

skills tools action planincentives+++ ++

vision communi-cation

skills tools incentives+++ ++

communi-cation tools action planincentivesvision + ++ ++ skills = real change

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Change Management Proposed

Material Management Inventory Management

Merger and Rationalisation of Stores

Procurement (as per procurement Manual) Tender to be floated by MM cell in the SSA/Unit

PO to be given by only MM cell in the SSA/Unit

Identification of tenders to be floated at Circle level and atSSA level

Plant Maintenance Maintaining of spare inventory Managing the maintenance of the equipment similarly

as customer services are maintained through FRS

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Change Management contd

Sales & Distribution Formation of Sales Organisation

Formation of Sales Organisation of SSA

Guidelines for retain sales of services in the SSAs

Guidelines for the propagation of tariffs

Business Development Formation of BD cell in the SSA

Guidelines for BD cell turnkey projects

Guidelines for BD cell periodic servicesperiodic billing/AMC

Human Resources

Skill Management Finance & Controlling

Implementation of cost based accounting

Implementation of service beased separation of accounts

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Additional Functionalities

Convergent Billing

Additional Modules

E-tendering

Implementation of the integrated billing

and customer care system

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Policy Issues

FICO

New set of accounts

Creation of Consumption Accounts

Cost and Revenue distribution across Profit Centers(for Expd, salaries, Cost center, etc)

Interface between Dotsoft & Keenan

Accounting of service connections

System for booking Actual Overhead on Projects HR

Payroll Period (Mar-Feb or Apr-Mar)