Erp Term Report Final

Implementation of SCM-SALES-ERP in Hamdard Lab (Waqf) Pakistan

“IMPLEMENTATION OF SALES ERP MODULE IN HAMDARD LABORATORIES (WAQF) PAKISTAN”

SUBMITTED TO: SIR SOHAIL IMRANCOURSE INSTRUCTOR

COURSE: MIS-ERPSEMESTER: SPRING-2014SUBMISSION DATE: 26th APRIL, 2014.

Group Members:

1. Syed Shoaib Bilal ID#: 560962. Muhammad Atif Qamar ID#: 566083. Sarosh Aijaz ID#: 5050

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A C K N O W L E D G E M E N T

Firstly we would like to thank ALMIGHTY ALLAH for giving us the opportunity and

recourses to be able to do something productive with our lives. Without His

blessings, we would not have been able to come as far as we have.

Then our sincere thanks to our course instructor SIR SOHAIL IMRAN for helping us

throughout this report. The report helped us find new ways of being innovative and

creative and understand the organizational behavior in respect of HR Functions and

its activities. This report would not have been possible without his motivation &

cooperation and continuous direction.

Sincerely yours,All Group Members

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Letter of Transmittal

26th April, 2014

SIR SOHAIL IMRANLECTURER: MIS-ENTERPRISE RESOURCE PLANNING

Respected Sir,

We are honored to present this report you have assigned us for the course of Enterprise

Resource Planning. This report is based on “Implementation of ERP in Sales module in

Hamdard Laboratories (Waqf) Pakistan”.

We have learnt a great deal from this report, for which we are grateful to you. Should

there be any query concerning this report, we will be happy to discuss it. Hope you will like

it.

Sincerely yours,All Group Members

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Table of Contents

Letter of Transmittal.........................................................................................................................................3

Introduction:-...................................................................................................................................................6

Abstract........................................................................................................................................................6

SUPPLY CHAIN MANAGEMENT (SCM)..........................................................................................................8

Business Domain: (SALES ERP)......................................................................................................................9

MAJOR REASONS FOR ADOPTING ERP:........................................................................................................9

Standard Operating Procedure (SOP):-...........................................................................................................10

Objective:...................................................................................................................................................10

Scope:.........................................................................................................................................................10

Procedure:..................................................................................................................................................10

Installation..................................................................................................................................................17

Maintenance Support.................................................................................................................................17

Security and Privacy...................................................................................................................................17

Training......................................................................................................................................................17

Suggest an Information System:-................................................................................................................17

Benefits:-................................................................................................................................................18

Advantages:............................................................................................................................................19

Disadvantages:.......................................................................................................................................19

Sales Order Process and Reports (Functional Areas):-....................................................................................21

Customer Sales Order:....................................................................................................................................21

.......................................................................................................................................................................22

Customer Sales Delivery Order:......................................................................................................................22

Customer Sales Delivery Challan:...................................................................................................................23

Customer Sales Invoice/Sales Tax Invoice:.....................................................................................................24

Reports Generation: (Sales, Stock, Production, Planning & Consumption)....................................................25

Hardware and Software Requirements:-........................................................................................................27

Network Requirement:-.................................................................................................................................27

A mutual understanding between the service level and the network on how the service is to be provisioned in the network........................................................................................................................27

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A standardized means of communicating requirements from the service level to the provider network......................................................................................................................................................27

A standardized means of accepting requirements on the network and aligning the network elements27

Integration with ERP:-....................................................................................................................................28

Issues and Challenges:-..................................................................................................................................28

Factors Affecting ERP Implementation:-.........................................................................................................29

Conclusions:-..................................................................................................................................................31

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Introduction:-

Abstract

Hamdard Laboratories implement ERP systems to integrate the business processes to obtain a competitive advantage. Enterprise Resource Planning (ERP) is one of the solutions Enterprises in order to face the global challenges. This report attempts to explore and identify issues affecting Enterprise Resource Planning (ERP) implementation and challenges in front of Enterprises. This report attempts to highlight those specific issues where a different factors needs to be addressed while implementing the ERP system in this the four issues are proved to be crucial for Enterprises such as proper system implementation, clearly defined scope of implementation procedure, proper project planning and minimal customization of the system selected for implementation.

In this report we will discuss how Hamdard successful implement the sales module of ERP system of a well known Multinational Engineering Organization. This Module comprises of Contact Management and Sales Order Processing Management. It is an integrated solution comprising of marketing and sales activities. Organization can act immediately to improve sales, service and marketing effectiveness by using this Module resource Sales Management module is all about retaining customers, improving customer loyalty and gaining customer insight.

This module also help to you getting your customer order management easier day by day. Whether it is maintaining customer information, quickly creating a quote or migrating them to sales order or being responsive to your customers and provides right solution and efficient flow of information.

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ERP System of Hamdard Laboratories (Waqf) Pakistan

Timeline System Description

1960s Inventory Management Control Inventory Management and control is the combination of information technology and business processes of maintaining the appropriate level of stock in a warehouse. The activities of inventory management include identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status.

1970s Material Requirement Planning (MRP)

Materials Requirement Planning (MRP) utilizes software applications for scheduling production processes. MRP generates schedules for the operations and raw material purchases based on the production requirements of finished goods, the structure of the production system, the current inventories levels and the lot sizing procedure for each operation.

1980s Manufacturing Requirements Planning (MRP II

Manufacturing Requirements Planning or MRP utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution.

1990s Enterprise Resource Planning (ERP)

Enterprise Resource Planning or ERP uses multi-module application software for improving the performance of the internal business processes. ERP systems often integrates business activities across functional departments, from product planning, parts

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purchasing, inventory control, product distribution, fulfillment, to order tracking. ERP software systems may include application modules for supporting marketing, finance, accounting and human resources.

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SUPPLY CHAIN MANAGEMENT (SCM)It is the management of an interconnected or interlinked between network, channel and node businesses involved in the provision of product and service packages required by the end customers in a supply chain.

Supply chain management spans the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. It is also defined as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."

SCM draws heavily from the areas of operations management, logistics, procurement, and information technology, and strives for an integrated approach.

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https://en.wikipedia.org/wiki/Information_technology

https://en.wikipedia.org/wiki/Procurement

https://en.wikipedia.org/wiki/Logistics

https://en.wikipedia.org/wiki/Operations_management

https://en.wikipedia.org/wiki/Raw_material

https://en.wikipedia.org/wiki/Supply_chain

https://en.wikipedia.org/wiki/Service_(economics)

https://en.wikipedia.org/wiki/Product_(business)

https://en.wikipedia.org/wiki/Business


Business Domain: (SALES ERP)

As per above discussion, we have selected business domain SALES MODULE of ERP implement in Hamdard Laboratories. To keep pace with rapid changes in the business world, Hamdard need an integrated and flexible enterprise system that supports all aspects of their business with state-of-the-art functionality. This ERP solution should upgrade effortlessly and interface easily with third-party applications as well as have the ability to incorporate existing systems while extending its reach to the Internet and e-commerce.

In competitive business environment, Hamdard is increasingly being forced to streamline business processes. In a world where it is no longer enough to simply have the best product; Hamdard is focusing on core competencies and closer partnerships over the whole supply chain. Here, increased efficiency in sales and distribution is a key factor to ensure that Hamdard retain a competitive edge and improve both profit margins and customer service. In helping business to 'beat them on delivery', the Sales and Distribution module of ERP systems offers a comprehensive set of best-of-bred component for both order and logistics management.

MAJOR REASONS FOR ADOPTING ERP:• Integrate financial information• Integrate customer order information• Standardize and speed up operations processes• Reduce inventory• Standardize Human Resources information

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Standard Operating Procedure (SOP):-

Objective:

ERP system is tightly integrated with the Sales and Distribution module. This integration enables the mapping and supply of single-site or multi-site organizations. Developing precise logistics planning for just-in-time deliveries, this system can also generate replenishment orders by using defined warehouse requirements.

Scope:To integrate the business processes of a Company and help organizations obtain a competitive advantage.

Procedure:

The following are the sales related business transactions in Hamdard Laboratories:

Sales queries, such as inquiries and quotations Sales orders Process

Outline agreements, such as contracts and scheduling agreements

Delivery/Shipment

Invoicing/billing

After Sales support

During sales order-processing the following basic functions are carried out:

Inquiry handling Quotation preparation and processing

Contracts and contact management (order management)

Monitoring the sales transaction

Checking for availability

Transferring requirements to materials planning (MRP)

Scheduling the delivery

Calculating pricing and taxes

Checking credit limits

Invoicing/billing

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Creating printed or electronically transmitted documents

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INTEGRATED SALES ERP SYSTEM IN HAMDARD LAB (WAQF) PAKISTAN:

Hamdard Lab (Waqf) Pakistan ERP system is tightly integrated with the Sales and Distribution

module. This integration enables the mapping and supply of single-site organizations. Developing

precise logistics planning for just-in-time deliveries, this system can also generate replenishment

orders by using defined warehouse requirements. The sales modules of Hamdard Lab (Waqf) for ERP

systems are designed to support the sales order processing systems, control daily activities like prospecting,

and manage contacts. We can Explain Hamdard Lab (waqf) Pakistan ERP Sales Module from this diagram.

Customer to Sales Department:

When any customer give order in Hamdard Lab (waqf) Pakistan, he talks with sales person,

customer queries about product and in this queries he talk about cost and markup and shipment

of product and after queries he generate sales order in the shape of agreement and customer

order status updated in ERP. 13 | P a g e


Sales to SCM:

When sales order booked, Sales Department connect with SCM through ERP System and send

customer sales order to SCM, SCM check the material requirement and tell the product availability

schedule and shipment of delivery to Sales Department.

Sales to HRM:

When sales order completed, Sales department connect with HRM and tell about customer order, If

there is any need of hiring and required employee personnel information so HR department

complete the need of these department to complete this order.

Sales to Accounting & Finance:

Sales Department forward sales order to Accounting and finance Department, Finance Department

Calculating the product Price and taxes and check company previous history and tell the credit term

and condition and credit limit of customer and generated billing invoice.

How Sales Modules Work and Process:

The following are the sales related business transactions:

Sales queries, such as inquiries and quotations Sales orders

Outline agreements, such as contracts and scheduling agreements

Delivery/Shipment

Invoicing/billing

After sales support

During sales order-processing the following basic functions are carried out:

Inquiry handling Quotation preparation and processing

Contracts and contact management (order management)

Monitoring the sales transaction

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Checking for availability.

Transferring requirements to materials planning (MRP) Scheduling the delivery

Calculating pricing and taxes

Checking credit limits

Invoicing/billing

Creating printed or electronically transmitted documents.

Depending on how your particular system is configured, these functions may be completely

automated. The data that results from these basic functions is stored in the system where it can be

displayed. ERP’s Sales and Distribution module very actively interacts with the material

management and financial accounting module for delivery and billing.

IMPORTANCE OF SALES MODULE IN HAMDARD LAB (WAQF) PAKISTAN.

It is important to know that the Sales module which also known as Customer Relation

Management (CRM) in an ERP system is the most important and essential function for the

existence of an organization. Hamdard Lab (waqf) Pakistan Sales module in an ERP system

manages the functions of domestic and export sales of a company. This is the module that

maintains the customer and product database.

Functions of Hamdard Lab (waqf) Pakistan sales module also includes the interacting enquiries,

order placement, order scheduling and then dispatching and invoicing form the broad steps of the

sales cycle. Stock transfer between warehouses is also covered by this module. Apart from all

these functions Hamdard Lab (waqf) Pakistan Sales module also carry out the task of providing

analysis reports to guide decision making and strategy planning.

Hamdard Lab (waqf) Pakistan Sales module in an ERP system allows activities such as contacting

customers and tracking of each customer orders right from placing an order to dispatch of

material for that particular order and customer. This module also helps allows sales executives to

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contact customers and follow-up each and every sales invoice and receive payments for such

invoices.

Another important aspect of Hamdard Lab (waqf) Pakistan sales module is it allows management

to monitor sales target achieved by individual marketing personnel as per the target planner for

each marketing personnel. This feature in of the sales module in the ERP system enhances the

working of the Sales and marketing department and ensures personnel are not on the right

direction

Hamdard Lab (waqf) Pakistan ERP sales module can also track sales trends over different periods

and prepare the report, Sales forecast can be made using this module as well as provide all over

sales and marketing activities of the company.

The ERP module offers an effective customer complaint management tool which also includes

repairs processing and document management.

Manufacturing business:

• Receipt of order • Recording of new orders • Value of contracts • Preparation of indent

Receipt of order:

i. The order shall be checked against the valid offer and final negotiations with the customer with respect to the following:

a. Scope of supply and services.

b. Delivery and payment terms.

c. Warranty and liquidated damages.

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ii. In case of discrepancies, the customer shall be intimated requesting to incorporate the necessary changes. The discrepancies shall be sorted out through revised PO /Indent.

iii. After the order has been won or on receipt of PO / IPO / II, an order confirmation/ acknowledgement shall be forwarded to the customer, where required. A system generated order number shall be allotted and recorded in the register.

Recording of new orders:

i. Before recording of order it should be ensured that the customer master has been created.

ii. New orders shall be recorded if a contract is considered effective and binding for all contracting parties.

iii. A contract is effective and binding considering the following conditions:

a. If the contract does not include any specific condition concerning the effectiveness of the contract, the contract shall be considered effective once it has been signed by the contracting parties.

b. If certain conditions concerning the effectiveness of the contract are laid down in the contract it becomes effective only when all contractually laid down conditions are met.

c. Where the contract includes clauses which allow one or more contracting

parties the unrestricted right to cancel (without contractual penalty), the contract is not binding upon the contracting party with the cancellation option.

d. For blanket orders and framework agreements the individual release orders with their fixed order quantity and purchase price are binding.

Value of contracts:

If a contract is considered effective and binding the total contract value shall be recorded as new orders as soon as possible, irrespective of the contract type (i.e. supply, service, maintenance or outsourcing contracts) and terms of the contract. Total contract value is the agreed price for the goods to be delivered and services to be rendered or the agreed fee for the irrevocable term of contract.

Preparation of indent:

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i. An indent setting out the customer requirements shall be prepared and an indent number shall be allotted.

ii. The indent shall be forwarded to respective personnel for detailed designing and confirmation of delivery period along with technical and other supporting documents.

Responsibilities for Implementation:-

Installation

The ERP vendor usually heads the installation process. However, the installation team also includes in-house technical experts. They test the system and check if features require customizing. Implementers must understand that although customizing can lead to improvements, it can also slow down implementation. It may also cause additional expenses. The time frame for full installation depends on the organization's size and changes made to the system.

Maintenance Support

Third-party ERP consultants assist in-house staff in operating the ERP software and system. In most cases, organizations sign a comprehensive maintenance agreement with an ERP consulting firm or vendor. Most agreements follow a time period and involve services such as technical help desks, software repairs and system upgrades.

Security and Privacy

ERP implementers are expected to continually monitor and upgrade security systems if deemed necessary. They make sure only designated staff have access to specific data and processes. Implementers should design clear policies for all employees using the system when it comes to handling private information. This includes accountability measures for employees who violate such policies.

Training

In-house ERP implementers determine the state of expertise needed to use the ERP software and system. They conduct adequate trainings for new users to be able to run the system properly. ERP administrators should also designate people with the right attitude and competency level to key positions. These employees are ERP implementers in their own right. Thus, their views and personal experience with the system should also be solicited in assessments.

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ERP implementers conduct assessments to analyze the effectiveness of ERP to the business. Assessment should be done within an ERP operational period with a time interval of three months, six months and annually. This periodic review ensures that adjustments can be made immediately if they are found necessary. Implementers draft a set of criteria for ERP assessment. The criteria should make it possible to determine whether ERP performance consistently meets the needs and objectives of the organization. It must be able to ascertain whether ERP implementation is producing more financial gain compared to operational costs.

Suggest an Information System:-

Benefits:-

ERP systems centralize business data, bringing the following benefits:

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They eliminate the need to synchronize changes between multiple systems—consolidation of finance, marketing and sales, human resource, and manufacturing applications

They bring legitimacy and transparency in each bit of statistical data.

They enable standard product naming/coding.

They provide a comprehensive enterprise view (no "islands of information"). They make real–time information available to management anywhere, any time to make proper decisions.

They protect sensitive data by consolidating multiple security systems into a single structure.

ERP can greatly improve the quality and efficiency of a business. By keeping a company's internal business process running smoothly, ERP can lead to better outputs that will benefit the company such as customer service, and manufacturing.

ERP provides support to upper level management to provide them with critical decision making information. This decision support will allow the upper level management to make managerial choices that will enhance the business down the road.

ERP also creates a more agile company that can better adapt to situations and changes. ERP makes the company more flexible and less rigidly structured in an effort to allow the different parts of an organization to become more cohesive, in turn, enhancing the business both internally and externally.

Advantages:

The fundamental advantage of ERP is that integrating the myriad processes by which businesses operate saves time and expense. Decisions can be made more quickly and with fewer errors. Data becomes visible across the organization. Tasks that benefit from this integration include

Sales forecasting, which allows inventory optimization Chronological history of every transaction through relevant data compilation in every area

of operation.

Order tracking, from acceptance through fulfillment

Revenue tracking, from invoice through cash receipt

Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced)

Disadvantages: Customization is problematic.

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Re–engineering business processes to fit the ERP system may damage competitiveness and/or divert focus from other critical activities.

ERP can cost more than less integrated and/or less comprehensive solutions. High switching costs associated with ERP can increase the ERP vendor's negotiating power

which can result in higher support, maintenance, and upgrade expenses.

Overcoming resistance to sharing sensitive information between departments can divert management attention.

Integration of truly independent businesses can create unnecessary dependencies.

Extensive training requirements take resources from daily operations.

Due to ERP's architecture (OLTP, On-Line Transaction Processing) ERP systems are not well suited for production planning and supply chain management (SCM).

Harmonization of ERP systems can be a mammoth task (especially for big companies) and requires a lot of time, planning and money.

The limitations of ERP have been recognized sparking new trends in ERP application development, the four significant developments being made in ERP are, creating a more flexible ERP, Web-Enable ERP, enterprise ERP and e-Business Suites, each of which will potentially address the failings of the current ERP.

The Order Fulfillment Process in Hamdard Laboratories (Waqf) Pakistan

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Sales Order Process and Reports (Functional Areas):-

Customer Sales Order:

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Customer Sales Delivery Order:

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Customer Sales Delivery Challan:

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Customer Sales Invoice/Sales Tax Invoice:

Reports

Generation: (Sales, Stock, Production, Planning & Consumption)

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1. Customer Wise Sales Order History.

2. Customer Wise Statement of Account.

3. Customer Balance Report

4. Customer Ledger Items wise.

5. Customer Sales Register.

6. Customer with pending s Sales.

7. Total Sales Reports

8. Sales Book (Customer Wise)

9. Sales Book (Items wise)

10. Non Adjusted Delivery Orders.

11. Sales Order References.

12. Details of Sales Invoice Wise.

13. Sales Register.

14. Sales Summary

15. Sales Items wise (Quarterly comparison)

16. Sales Order Confidential Details

17. Sales Delivery Order Details.

18. Sales Return Customer Item Wise.

19. Current Stock Status.

20. Stock Trail Balance.

21. Current Stock Report.

22. Production wise Sales Report.

23. Production Tracking Report

24. Finished Items Production Report

25. Plan vs Production Report.

26. Material Consumption Report.

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Hardware and Software Requirements:-We cannot generalize the software and hardware requirements for any ERP Implementation as the requirements differ from one implementation to other but this program can be easily run in below mention configuration.

RAM of 1.00 GB or Above

Dual Core Processors 2

Minimum 100 GB hard disk

Windows Operating Systems

Network Requirement :-

This program needs only Local Area Network (LAN) to access server.

A mutual understanding between the service level and the network on how the service is to be provisioned in the network.

A standardized means of communicating requirements from the service level to the provider network

A standardized means of accepting requirements on the network and aligning the network elements

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Integration with ERP:-

ERP systems connect to real–time data and transaction data in a variety of ways. These systems are typically configured by systems integrators, who bring unique knowledge on process, equipment, and vendor solutions.

Direct integration—ERP systems have connectivity (communications to plant floor equipment) as part of their product offering. This requires the vendors to offer specific support for the plant floor equipment that their customers operate. ERP vendors must be expert in their own products, and connectivity to other vendor products, including competitors.

Database integration—ERP systems connect to plant floor data sources through staging tables in a database. Plant floor systems deposit the necessary information into the database. The ERP system reads the information in the table. The benefit of staging is that ERP vendors do not need to master the complexities of equipment integration. Connectivity becomes the responsibility of the systems integrator.

Enterprise appliance transaction modules (EATM)—These devices communicate directly with h the ERP system via methods supported by the ERP system. EATM can employ a staging table, Web Services, or system–specific program interfaces (APIs). The benefit of an EATM is that it offers an off–the–shelf solution.

Custom–integration solutions—Many system integrators offer custom solutions. These systems tend to have the highest level of initial integration cost, and can have a higher long term maintenance and reliability costs. Long term costs can be minimized through careful system testing and thorough documentation. Custom–integrated solutions typically run on workstation or server class computers.

Issues and Challenges:- Though the market for ERP seems to be growing, there are several issues and challenges one has to contend with when implementing an ERP system in the Enterprise segment. Some of these are:

Awareness: There is a low level of awareness amongst Enterprise for ERP vendors, applications etc. most of the time they do not even know what ERP systems are and what they can do. They consider ERP systems to be a magic wand, which will help solve all their business problems, be it in terms of quality, or process defects. ERP brings in a more disciplined execution of business process giving more transparency and visibility to the working of the organization.

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Perception: Enterprise has the perception that ERP is meant only for large firms mainly owing to the high costs of acquisition, implementation and maintenance as also the complexity. Some of the SMEs even feel they do not need ERP.

Earlier Implementations: SMEs have heard of the much-publicized failures in ERP implementation, which have led firms to bankruptcy. Some SMEs who have implemented ERP earlier have failed. This has led SMEs to believe that ERP implementations are a waste of time and effort and can even lead to the demise of company.

Approach to implementation: ERP vendor’s advice SMEs to mould the business to ERP’s way of Working. Considering that ERP systems will bring it best business practices. This is the plain vanilla approach that was mentioned earlier, which would bring down the cost of implementation. But most SMEs have processes that they have evolved over time and hold very dear to their hearts. As a result, SMEs are having the entire ERP system customized to meet their requirements. This would increase the overall cost of implementation. A good approach would be to keep the customization to a minimum.

Cost: Small Enterprise have less of capital than their larger counterparts.

Change management: One of the major reasons why ERP implementations nationwide have been known to fail is due to the implementation being considered as an automation project instead of one that involves change management. This results in the system being put in place but not being used effectively due to people not ready to accept the change.

Limited resources: Most SMEs do not have an in-house IT team. Due to this they have to rely on external agencies to help them and this add to the implementation costs.

Factors Affecting ERP Implementation:- The major factors can be classified into four subheadings namely, the top management, training, the data collection & Software design and Testing. The factors affecting the ERP implementation are determined. The consensus among the ERP team and top management is very important to indicate the need for application framework. The factors are can be illustrated as fallows-

1. Data provided: Adequate and correct data should be provided it had to be collected.

2. Parallel systems: When issues began to crop up after implementation of ERP in sales and distribution module was completely ignored, they shifted work with these modules back to the old system. This hampered the proper integration of organization data and led to data mismatch

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in other modules as well. As a result, support system provided by the vendor became obsolete and difficult to implement. Hence, use of parallel systems should be avoided outright.

3. Training and testing: Training and testing of the system should be done properly by the ERP Consultants, that is, the vendor is provided as part of the implementation procedure to only a 30% group of people from the clients’ side known as the Core Team. This core team in turn trains a rest of people who are actually responsible for day-to-day transactions called the End Users. It was observed that the 50% second leg of training which is provided to the end users was not carried out mainly due to lack of computer literacy, not will to accept the responsibility this triggered a strong resistance to change for the new system being installed and caused reduction in employee motivation.

4. Expectations from the ERP System: Clarity in management objectives and expectations from the ERP System are clearly stated to the vendors. This led to a belief of the systems’ power to integrate the company actual functions. According to the vendor, management expected a quick return on investment which was not practical since it takes around three to four months to notice any significant returns. Hence, top management should be patient with the new system and any fear of failure should be done with for a successful running system.

5. Employee Retention: It was observed that after the completion of ERP training provided to the staff and within some days of the system going live, many of the trainees from the organization quit the company causing great losses to organization in the form of shortage of key resources i.e. trained staff. This was a big percentage of employee attrition rate and it is not possible for a company to hold back any of its employees even with the most stringent contract.

6. Design & Testing: is a very important part of software testing and should not be neglected the computer work stations are set up in a room to represent each of the major tasks of customer service /order entry, planning, goods-in, stores and finance. A simplified data set is loaded and the company operations run through. The data is gradually increased as first the project team, then managers and finally users get more familiar with the software. This is conducted just before the ERP becomes fully functional in the organization.

7. Customization should be less than 30%- Customization Services involves any modifications or extensions that change how the out-of-the-box ERP system works. Customizing an ERP package can be very expensive and complicated. Some ERP packages have very generic features, such that customization occurs in most implementations. Customization work is usually undertaken as "changes requested beforehand" development on a time and materials basis. But ideally, experts in the ERP implementation field have suggested that customization should be less than 30%. The level of customization in the case of

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Multiplex exceeded beyond this and posed a great deal of problems when key applications were run and found to be not working as they were intended to.

8. Stakeholders shall be identified in the initial phase including customers and vendors: Stakeholders are all those who are directly or indirectly affected by a company implementing any new ERP system be it organizations like those of the supplier as well as the vendors. A failure to identify the stakeholders gives the implementing company a major setback when the concerned people or organizations work against the new system. So identification of all stakeholders has to done in advance.

Conclusions:-

It is possible for Hamdard to mine value from an ERP system post implementation. To achieve this

they need to understand what their ERP system can do and then invest in people, training, the

system and internal processes to achieve alignment. Once this work has been carried out the

Hamdard should be leaner and more efficient, and better able to achieve competitive advantage.

Finally, remember that the cost to re-implement an existing ERP system is likely to be substantially

lower than the costs – in money and resource, required to select and implement a new system.

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Erp Term Report Final

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